Lexicon: Contingency

Why do successful companies suddenly collapse? Sartre's concept of "Contingency" explains that nothing in business is "necessary." It is all accidental.
Lexicon: Contingency

The Etymology

From the Latin contingere ("to befall" or "to happen"). In logic, a "Contingent" truth is something that is true, but could have been false. (Opposite of "Necessary"). It is the central theme of Sartre’s novel Nausea (La Nausée).

The Definition

In the novel, the protagonist Roquentin is staring at the root of a chestnut tree. Suddenly, the "labels" fall away. He stops seeing "A Root" (a biological function). He sees a black, knotty, oozing mass of existence. He realizes: There is no reason for this tree to exist. It is superfluous (de trop). It is just there, by accident. This realization, that reality has no built-in purpose or necessity, causes a physical sensation of sickness: The Nausea. Contingency is the terrifying realization that everything around us could be otherwise, or could simply cease to be.

The Corporate Application

We build companies to hide from Contingency. We create "Mission Statements," "10-Year Plans," and "Org Charts" to pretend that the company is Necessary. We act like our business model is a law of physics.

The "Nausea" of the CEO: Every deep-thinking leader has moments of Nausea. You look at your product, your office, your revenue stream, and you suddenly realize: This is all accidental.

  • A slight shift in interest rates could kill us.
  • A competitor with better code could make us irrelevant overnight.
  • We are not "necessary" to the world. We are just here.

The Strategic Advantage: Most people freeze when they feel Contingency. The Chief Wise Officer uses it. If the status quo is Contingent (accidental), that means it can be changed.

  • "We have always done it this way" is a lie. There is no "always."
  • The rules of your industry are not gravity; they are just habits. Nausea is the dizziness of freedom. Once you admit your business is fragile, you are free to reinvent it.
Subscribe to my newsletter

No spam, no sharing to third party. Only you and me.

Member discussion