Why fundamentalists make bad business decisions
Jun 16
One of my favourite books in recent years has been Freakonomics. Anyone who has read that book will realise that the title of this blog is a homage to that great piece. I have always had a problem doing business with people who wear religion like a badge. Most of the truly religious people I know have a personal relationship with their god and see it as a private matter. I just find that people who advertise their beliefs have an arrogance that allows them to excuse themselves from conforming to the everyday norms of right and wrong that people take for granted.
My definition of a fundamentalist is someone who has read just one book and believes that this one book contains all the truths and knowledge in the world. This book may be a holy one such as the Bible, The Koran or a political one such as The Communist Manifesto or Reflections on a Revolution in France. The world is simply more complicated than that.
What does all this have to do with business? I have come across many people who I would describe as business ‘fascists’. These are people who have been stuck in the same industry or business for many years and rigidly refuse to accept new ideas or new ways of doing things. Like Pascal famously said
“Nothing leads to failure like success!”
Indeed I have a very hard time working with entrepreneurs who are successful in one field, because they believe they know all there is to know about business. These Entrepreneurs tend to have low quality staff working for them as talent needs to flourish and of course try new things which may or may not work. The problem then arises when these Entrepreneurs want to become business angels and invest in a business. My advice to companies is to stay away from accepting any investment from a business fascist.
How to spot a business fascist
1) They have only had success in one limited field
2) They run their business like a fiefdom
3) They have a massive ego (find out who does their PR for them - and how much that would cost)
4) They love the sound of their own voice
5) They will only invest if they are made chairman or a Non Exec
6) You can find few people who have a good word to say about them
7) They have a very weak network. Networks are a very good measure of how people are seen - not what they are worth
When they talk to you - you feel you are being preached to One of my favourite quotes sums up my problem with fundamentalists very neatly.
“Principle is the enemy of Reason” (Nietzsche)
Hi and welcome to my blog. 
Jun 17 at 13:17
Lovely post. Always good to read a controversial thought.
One thought and one addition to the seven listed ways to spot a business fascist;
- Is it a bit fundamentalist to decide never to work with fundamentalists?
- Fundamentalists tend to focus on either the past or the future. Reality focuses on the present.