Have you ever encountered someone who could predict the outcome of a situation in advance? They're not psychic; they only possess the ability to recognize and learn from patterns.
Pattern Recognition Skill
Michael Rubin, the CEO and founder of sports merchandise retailer Fanatics, a company that has helped him accumulate a reported net worth of $11.5 billion, attributes much of his success to pattern recognition, emphasizing the importance of this skill in business, considering it predictive of the future, in a recent interview on life coach Jay Shetty's "On Purpose" podcast.
Rubin shared how he evaluates potential employees by gathering data beyond resumes and job interviews. When he's interested in a candidate, he immediately starts calling people they have in common after the candidate leaves to help him recognize patterns and gather insights that might not be apparent in the interview alone. For him, 50% of the evaluation comes from the interview, and the remaining 50% is what he learns behind the scenes.
This process allows him to recognize patterns, ensuring a more comprehensive understanding of the candidate's qualities and reputation. He gave examples of situations where someone may be impressed during the interview but disliked by colleagues, or you can find out that person was slightly understated, but they're a beast. According to Rubin, this skill is crucial for making sound choices, and he incorporates it into every aspect of his decision-making.
A Skill for Dodging Potential Problems
The human brain consistently processes patterns, aiding in understanding information, languages, and imagination. Utilizing this skill to avoid potential conflicts and adverse outcomes can enhance critical thinking.
During Berkshire Hathaway's annual meeting in April 2016, CEO Warren Buffett talked about how "pattern recognition" made him avoid investing in drug company Valeant Pharmaceuticals, now known as Bausch Health Companies.
Despite receiving advice to purchase Valeant stock, which was using cost increases to generate profits and delivering solid returns as its stock price rose, Buffett observed red flags in Valeant's "deeply flawed" business model, believing it wasn't designed for long-term sustainability.
READ ALSO: How to Seize Opportunities While Managing the Fear of Failure
Buffett's intuition proved correct. In the month before the Berkshire meeting, Valeant CEO Michael Parsons resigned, and lawmakers accused Valeant of overcharging patients, causing the company's stock to plummet by 85% within 30 days. Buffett highlighted the importance of recognizing patterns "that frequently come to a bad end but look extremely good in the short run."
Reading Between the Lines
You can enhance your pattern recognition skills through various methods, such as engaging in games such as chess and checkers or collaborating with individuals who offer diverse perspectives and insights.
You can also adopt a more analytical approach, as leadership coach Ganes Kesari suggested on LinkedIn. Identifying patterns is both art and science. Begin by defining the business goals and challenges, gathering diverse data sets, and then applying statistical or advanced analytical tools, such as AI algorithms, to process this data. Afterward, have an expert review the patterns to ensure they are coincidences and valuable insights that can be acted upon, Kesari added.
Becoming proficient in pattern recognition doesn't happen overnight, but practicing it daily will lead to success, Rubin emphasized on the podcast. "You've got to recognize patterns in everything you do," he said.
RELATED ARTICLE: Habits to Cultivate Grit and Propel Your Career to Success
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
