Why It Pays to Be Paranoid – Staying Vigilant as a Leader

The word “paranoia” often has a negative connotation, and like any mindset, if overused, it can become a weakness. I don’t advocate for extreme paranoia or assuming you’re constantly under threat. But in reality, a leader does need to stay somewhat paranoid and vigilant across all aspects of their organization.

One way I approach this is by inspecting what I expect. When I ask for a work product, I always want a follow-up from the person I’m working with to let me know it’s completed. This allows me to check that it meets our standards, aligns with our mission, and reflects our values. Another area where I believe some level of “paranoia” is important is with competition. As humans, we tend to overestimate our own abilities and think we’re naturally better than others. It’s possible to assume that when a competitor enters your market, you’ll beat them because you think you’re the best. But disruptors are out there, and you have to remain vigilant, keeping up with new technologies, reading industry updates, and attending conferences. This ensures you’re prepared for what’s coming.

Maintaining Standards with a Close-the-Loop Culture

At Faris Capital Partners, we have what I call a close-the-loop culture, where every outstanding matter is addressed and acknowledged, no matter how big or small. For example, when someone receives an email request or action item, we ask that they reply with a simple “got it” to confirm receipt and provide a timeline if needed. Once the task is complete, they follow up again to close the loop. This culture not only allows us to ensure things are getting done but also helps us avoid micromanagement. Management is about creating systems for accountability and maintaining a good cadence, so everyone stays focused on their priorities.

Reminding the team of these standards is key. If we see the culture starting to slip, we go back and reinforce our expectations. As the leader, I also hold myself accountable to the same standards I expect from the team.

Staying Ahead of Competitors

One of the most important aspects of staying vigilant is proactively monitoring your competition and industry disruptors. For example, at my previous company, we watched as new players like Opendoor and OfferPad entered the real estate market. They were using a model we initially thought was unsustainable, offering cash buyouts to sellers without listing on the market. At first glance, it didn’t seem like it would impact us, but as these iBuyers gained traction, we realized they had the potential to disrupt our business. So, we got curious and a bit paranoid, attending conferences and connecting with people we knew at these companies to learn more.

In the end, we joined forces with both companies over time. If we’d just dismissed their model as unsustainable and failed to dig deeper, we might have been caught off guard and forced to play catch-up. This experience taught me that staying vigilant and challenging assumptions is essential. You have to be willing to let go of self-perception as “the best” and remember that threats to your business are always there. Remaining ever vigilant is essential to staying ahead.