LETTER FROM OUR CEO: Rise of The Generalists

As conventional wisdom suggests, you need to do something for 10,000 hours to become proficient at it. We often hear the phrase “Jack of all trades, master of none” and are advised that if we want to excel at something, we should specialize—preferably early. This notion, popularized by Malcolm Gladwell in his bestseller Outliers, emphasizes that the world rewards specialization.

But what if we’ve been mistaken all along? I recently read a fascinating book by David Epstein titled Range: Why Generalists Triumph in a Specialized World. It challenges long-held beliefs and has made me reconsider principles I once accepted as gospel.

Epstein argues that it is the generalists, not the specialists, who truly excel in life. In essence, you often need to explore various interests to discover what you’re genuinely good at. The book opens with a comparison of two of my personal heroes: Tiger Woods, arguably the best golfer of our generation, and Roger Federer, the greatest tennis player of our time.

Woods was groomed for greatness from a very young age; his father instilled an obsession with golf. Tiger hit his first golf ball at age two and won his first tournament at seven, eventually claiming a record 82 official PGA events. He was poised to break every record until personal issues and injuries diminished his prowess. Woods exemplifies the life of a specialist.

In contrast, Federer engaged in numerous sports until his late teens—skiing, basketball, soccer, wrestling, skateboarding, you name it. However, once he dedicated himself to tennis, he became nearly unbeatable well into his 30s. Despite his mother being a tennis coach, Federer’s parents encouraged him to explore a variety of sports. By the time he chose tennis over football, many of his peers had already undergone years of specialized training like Woods.

I once subscribed to the belief that it’s crucial to find your niche early and focus intently on it. However, generalists may find their path later, yet they tend to be more creative, agile, and capable of making connections that specialists may overlook. Epstein presents compelling research demonstrating a “fadeout” effect, where a temporary academic advantage quickly diminishes. For example, while teaching a child to read at three may seem impressive, peers will likely catch up over time.

The data supports his claims. Most successful technology companies, boasting the highest valuations, are led by entrepreneurs in their 40s and 50s. Elon Musk didn’t launch into space missions and electric cars right away; he first founded an online bank before PayPal. Although those with specialized degrees secure jobs more quickly and often earn higher initial salaries, over time, generalists tend to earn more and enjoy greater resilience, persistence, and career longevity.

What does this mean for us today? With less time spent in unnecessary meetings and traffic, perhaps we should broaden our horizons. If you work in finance, for instance, instead of taking an advanced Excel course, consider exploring coding or human development.

Even within our own business, we’ve had to reassess our previously narrow focus. We’ve always been alternative lenders specializing in the small business retail space, which has been severely impacted by the pandemic. To adapt, we’ve needed to innovate our strategy quickly, expand our thinking, and operate outside our self-imposed limitations.

As a result, in recent months, we’ve formed new partnerships with companies like Discovery Insure and others. Collaborating with these new partners has provided us with a broader perspective and a better understanding of the challenges small business owners face across different industries.

We’ve launched new products in sectors where we previously had no presence and begun exploring industries like automotive and panel beating. In other words, we’ve embraced a radically different approach to our operations.

Despite everything we’ve been taught, Epstein may be onto something significant. Perhaps generalists are better suited to navigate what he describes as “wicked” learning environments, where unexpected challenges are commonplace. We are currently living in one of the most unpredictable environments of our time. While we should continue to focus on our specializations, there has never been a better time to think more broadly and embrace diverse experiences and perspectives.

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