Paradox of Progress

Paradox of Progress “There is a familiar story of a New York banker vacationing in Greece, who, from talking to a fisherman and scrutinizing the fisherman’s business, comes up for a scheme to help the fisherman make it a big business. The fisherman asked him what the benefits were; the banker answered that he [...]

By | December 9th, 2019|Categories: Lessons Learned, Management|Tags: , |0 Comments

Overconfidence

Overconfidence Daniel Kahneman, a Nobel Prize winning behavioral economist, said that if he could eliminate only one human psychological bias, it would be overconfidence. In one study of American drivers, 93% claimed to be better than the median. Obviously only 50% can be better than the median. How can you deal with this all [...]

By | December 6th, 2019|Categories: Lessons Learned, Management|Tags: , , |0 Comments

Re-Framing

Re-Framing As CEOs and business owners gain knowledge and experience, they find their problem-solving skills growing. We gain confidence and make decisions with less stress and greater speed. Then we encounter a particularly vexing problem where our knowledge seems inadequate. When this occurs, it often helps to re-frame the problem. Let’s look at an example. WeWork [...]

Antifragility

Antifragility Antifragility is the characteristic of those things that gain from disorder and the title of a book by Nassim Nicholas Taleb. No word captured that concept of the opposite of fragility, so Taleb coined the obvious word “antifragile.” If the concept of gaining from disorder seems non-sensical, think about things such as vaccines, [...]

By | November 18th, 2019|Categories: Competitive Advantage, Management|Tags: , , , |0 Comments

Skin in the Game

Skin in the Game “Skin in the Game” is a powerful book by Nassim Nicholas Taleb. Skin in the game requires exposure to not only the upside of your own actions but also the downside. That is the problem with the grant of large stock options to executives of public companies. There is no [...]

By | November 17th, 2019|Categories: Books, Management, Productivity|Tags: , , , , |0 Comments

It’s Lonely at the Top

It's Lonely at the Top Preston: CEOs often feel very lonely. Although that may surprise many who have never been a CEO or business owner, it won’t surprise those who have. Many people clamor for time with the CEO. In addition to employees seeking the CEO’s time, there are customers, prospects and suppliers to meet [...]

Loss Aversion

Loss Aversion Loss aversion is the strong and pervasive tendency to weight losses more heavily than gains of a like amount. Many studies have indicated that losses are weighted at least twice as heavily as the same gain. Nassim Nicholas Taleb points to the Stoic philosopher Seneca having noted this human trait in many of [...]

By | October 19th, 2018|Categories: Decision Making, Management|Tags: , , |0 Comments

Speed

Speed Preston: Brian, in our last exchange you talked about how the internet has enabled us to do things faster, cheaper and more efficiently. We discussed this in the specific application of developing a minimally viable product. I want to focus on the “faster” element whether enabled by the internet or not. Speed, in [...]

Cognitive Dissonance

Cognitive Dissonance Cognitive dissonance can be seen at least as far back as Aesop’s fables. It occurs when our actions conflict with our beliefs, causing dissonance that we then seek to resolve. The resolution of the dissonance must come about by changing beliefs, changing actions, or changing our perception of our actions. Changing our perception [...]