Sway: The Irresistible Pull of Irrational Behavior

UPDATE: If you’re looking for a free copy of the book, head on over to okdork.

I finished reading an awesome book that’s about to come out: Sway: The Irresistible Pull of Irrational Behavior. These book comes from the same guy (and his brother) that wrote The Starfish and the Spider.

Ori and his brother take another Tipping Point slash Freakonomics approach to this book which is very successful and very good at communicating complicated concepts. By using stories I’m able to quickly grasp the idea, and then I have a vivid application of the concept that I can turn around and use to share with others. This is the kind of book you read today and talk about with everyone you run into for the next three weeks.

The main point of the book is that we are often drawn to doing dumb (irrational) things and making decisions that make no sense… but in reality, they do. These are some of the concepts that can help us understand why people behave irrationally:

We fear a loss: if we sense we’re going to lose something, we’ll do everything we can, and make stupid choices, to try and reverse it (even if we know it’d be smarter to give up and accept the small loss now). Example: stock market.
Incentive can actually deter us: Our brain makes a decision based on either the intrinsic (do the right thing) or extrinsic (give me $10) reward–but that financial motivation may backfire and prevent us from doing something. Example: your company wants you to find new business and you do because it’s a good challenge and develops your skills… but then they introduce a $50 reward–you decide that’s not enough incentive to sell new business.
We make a wrong decision if someone else does, too: studies show that it takes just one person to agree and then, suddenly a bad decision becomes a good one. A simple confirmation is all it takes. Example: crossing the street without looking when the guy next to you steps out.

Go read the book and you’ll realize, yes, this is what is going on all the time. It helps explain so many behavioral (and economical) decisions that, hopefully, the understanding of ‘sway’ can help you make better choices (about yourself, your products, your approaches, etc.).

Book Website: swaybook.com*
Amazon page: Sway goes on sale June 3, 2008

* Another book with an online (video-based) trailer. Very cool, and much better at explaining the book than I can. Check it out!

Dreams’ Daily Dosage

4 Replies

Here we are again with some cool stuff I learned, did, and found in the past week:

Monday
Have you ever watched a trailer for a business book? Well, click this link and you won’t be able to say that anymore. Dan Pink (awesome!) writes the ultimate career guide (including manga and all) to answer the question we all ask ourselves at work: “WTF?”

Tuesday
Google Health launched and, well, I’m scared. I want to use it. I think? Do I? Hmmm. Yeah, it’s really something I’d do (if I ever got sick / went to the doctor / bought medication).

Wednesday
Noah’s project, Brand Tags, has become one of the coolest sources of free marketing insight. Any company not looking at his site is crazy.

Thursday
I “launched” my small web-design shop at mindaverse.com. The first person who can figure out the significance of the company name (other than the obvious slogan) wins a $10 gift certificate to anywhere or anything.

Friday
Facebook is doing a great job aggregating my online life so far and I don’t feel like I need to post things to multiple places anymore. Goodbye Friendfeed and Socialthing?

Why people are always wrong about Facebook

1 Reply

People like Scoble still think Microsoft is going to drop something like $20 billion on Facebook. A site with maybe $0.2 billion in revenue? Yeah, okay. Aside from what I like to call the decimal-place-mismatch let me explain why Facebook is not worth that much and why Zuckerberg is not a billionaire.

We aren’t in a vacuum

There are many more variables to how Microsoft decides to drop $240 million on a “stake.” Sorry but you can’t just say “oh, that’s a percentage, let’s multiply it.”

I liken the situation to that of my friend who recently started a company and moved into 200 square feet of a 10,000 foot floor (for those of you playing at home, that’s 2%). A generous businessman owns 10,000 of empty space and is renting 200 square feet for, let’s say, $2,000/month. So can we say that each square foot is worth $10 and call it good? Sure. Wait, no–no we can’t!

Just like we can’t say each percentage of Facebook ownership is worth $150 million. Just like we can’t say Zuckerberg’s 30% puts him at $5 billion.

We can’t cross-multiply-and-divide because we should consider the fact that

My friend has the bathrooms all to himself
My friend can be as loud as he wants
He can throw a party in the space and not compete for the “prime” space
There is no competition for resources like printers, power, corner offices, etc.
The infrastructure is already there to support him and his growth

To keep up with the metaphor, Microsoft can do at Facebook what my friend can do in his new office space. The money ($14.75 billion) isn’t really there. Nobody went to Mark’s bank account and deposited a billion dollars. Microsoft assigned a dollar amount to a percentage–but that dollar amount is coming with more than a “slice” of the pie. So we can’t treat it like that. Stop doing that!

I know my point is simplistic but I’m a little annoyed (that this isn’t the first time we’re throwing around huge numbers at Facebook). This is why people like Sarah Lacey suck and why Scoble will never be one of those folks I ever listen to. Sorry to get personal but let’s slow down and think about this…

Dreams’ Daily Dosage

2 Replies

If you didn’t know, my nickname is ‘Dreams’. Try and decode that one. Anyway, this past week I learned, did, and found a lot of cool things. Check it out:

Monday
Dopplr added a carbon journal for travelers to realize how much they’re destroying the planet. Hooray!

Tuesday
I found a nice little Mac app which I’ve been looking for since, oh, I owned a MacBook. It’s called I Love Stars and allows you to rate your iTunes songs from the menu bar.

Wednesday
Communist parties are funny when cats are involved.

Thursday
It was a big week for sports for me. I visited the Twins in Minneapolis. Saw them play the Rockies in Denver. Oh, and I went to a soccer game (Colorado vs. Salt Lake).

Friday
I bought tickets to Colombia. It’s going to be an interesting experience and you know I’ll share my thoughts here.

If you haven’t already added me as a contact on Flickr–be sure to do so. Oh, and Twitter, too.

My Favorite Passengers, Part II

6 Replies

I’ve traveled quite a bit lately and have been working on being able to entertainingly come up with some common passenger profiles. Here are a few more of my findings:

The laptop wielding road warrior: Two trips in a row have I sat next to a woman who insists on working on a spreadsheet or e-mail as soon as her butt hits the seat. The plane takes off, the flight attendant is seated, oooh, yeah? You’re gonna sneak open your laptop before we’re at the “safe” altitude? You risky son of a gun–I’m sure those three minutes were absolutely necessary.
Leave the light on, you don’t need it: It’s 10:00 PM, it’s been a long day and we’re all headed home. It’d be nice to get some rest. But no, I’m sitting next to you and you want to stare into space with the overhead light on. Of course, the angle glares right onto my face but I’m not going to say anything (or sleep any). Oh, but once we plan to land you realize its on and turn it off. I swear the cabin is 90% darker now.
The seat yanker: Why the hell, once you get onto an airplane, are you unable to stand up under your own power? Is there some amazingly intense gravity field keeping you in the seat? Because apparently you need to use all of your strength to pull on my damned seat! Try using your legs!
The talker: Yeah, there’s a time to talk to people and meet new folks–but you’re not interesting. And when the conversation is 90% you talking and the rest me just saying “yup”, “true”, and “oh” why do you NOT get the clue? Do I need to put in my headphones and start reading before I even get to my seat to avoid this? Yes, yes I do.

And there are so many more. People are amazing, unique creatures. But somehow the majority of people start to lump together into these profiles once they jump on a plane. Which are you? ;)

My Favorite Airline Passengers, Part I

7 Replies

I’ve done a bunch of flying in the last few months (for work and training). I still get a little excited every time I fly. Airports have so many people and airplanes have so many people in a small spot. This means excellent people watching. I’ve come up with some of my favorite passenger profiles:

Can’t fit anything in the over-head bin: Why does it take 30 minutes to get 100 people on a small commuter plane? Because of this guy. Maybe if you owned a less awkwardly shaped bag you wouldn’t struggle to find a bin that a L-shaped opening. Seriously, you weren’t that good at tetris, why do you think you can manage this bin? Go find another one and let me guy by!
Wonders why there isn’t a blanket: Why are you making a big deal? You paid $400+ for this seat and your happiness is hinging on a pillow / blanket. Those things are gross, expensive, and if it’s such a necessity–why don’t you pack one? Stop bothering the flight attendant and making me listen to you.
Slept through beverage service: If you can’t stay awake for the 20 minute boarding process, 5 minute taxing and 15 minute ascent before beverage service why do you deserve a cup of Sprite? Are you really that tired? Was there nothing you could’ve done to pass the few minutes before a drink would come around? Apparently so because now you and the seven other lazy passengers are going to make the attendant go back and forth between the galley. That’s 14 trips he or she didn’t need to do.
The seatbelt sign doesn’t apply to me: The plane touched the ground, seatbelt off! Dude, you’re in row 24–you won’t be grabbing your bag for at least 12 more minutes: sit down! Oh and why did you think it was cool to get up and go to the bathroom whenever you wanted? The light is on because it’s not safe, dummy. I’m glad they called you out over the intercom, you self-centered tool.

Please tell me you fit one of these profiles because you make my flights go so much faster! And if you’re not, please tell me you find as much pleasure in these people as I do.

You don’t need a resume…

2 Replies

…unless you’re looking for mediocrity. Because that’s what happens when we

boil down our accomplishments into a one page memo, and
convince ourselves we can make a good decision based on a one-page memo.

Seth Godin hires interns and notes a resume is “an excuse to reject you.” If you’re truly exceptional you don’t need a resume. I wouldn’t consider myself exceptional but I can recall at least seven jobs (or projects) in the last year where a resume was never even mentioned. Here’s what you need:

Relationships: Knowing people can introduce you to some interesting opportunities. I tip my hat to noah who is probably responsible for half of the connections I’ve made outside of school. This is how I’ve done work for pbWiki and talked web design with VentureBeat. But, even in school, simply talking to students and professors allowed me to design a number of sites, TA for classes, and land an interview with a big firm–all without a resume.
Accomplishments: Yes, your resume can help summarize these for you–but let the work do the talking. If you’re a designer, make sure it’s easy to find these things. Heck, do some sample work for the company you really want to work for (Kareem got a sweet job at ESPN this way).
Reputation: If you do good work, and you are a great person (see the last two bullets) then your reputation will be as solid as a rock. Maintain it, cherish it, and make sure you control it. This will mean less work for you. In college, all it took was a recommendation and a reputation for quality to be offered a job without even soliciting it. Wouldn’t it be nice to have jobs handed to you?

Though, Ben makes the point that college graduates usually haven’t proven themselves and can’t look for these truly exceptional positions: “Yet most college students are not all-stars and shouldn’t…just ignore all existing hiring conventions.” Yes, if you’d like to work at a good-enough company. Again, I’ve had a few offers (some accepted, some not) without ever offering a resume. I know Paul, while still in college, went to work for Yahoo! without one. Odds are he’ll never need one. His brand and website are far more valuable and a portfolio speaks much more than keywords on paper.

So, if you’re looking for those exceptional positions, start being an exceptional person and be an exceptional performer. Don’t use things like your formal education and a carefully edited resume as your only means to getting what you want.

Setting the Pace on Day One

3 Replies

I think day one at a new job is the most important. It is going to set the pace for the rest of the job. I’m always conscious of first impressions and nothing is more important than a job’s first impression. There are only a few ways a first day can go though:

Hit the ground running: You get in, login, are handed a task and you get to it. You meet the people you need to get things done, you get the information you need quickly, and you start solving hard problems. This is a challenge and it pushes you out of your comfort zone but you love it because you know there won’t be a dull day at work. You’ll be working with smart, capable and interesting people. Yay for work!
Busy, busy work: You sit down, get on the computer and you’re given tons of information to read. Background, client information, goals, visions, timelines. You need to understand it all by yesterday. But, you’re not really doing anything. You’re becoming acclimated but it’s not the most effective way–it’s a cheap way.
Orientation: Go to a day in the office, have policies and procedures read to you, walk around and find the bathroom (as if you couldn’t find it when the issue presented itself), learn how to change your voicemail (as if people are going to call you in the next few weeks).
Paperwork: Sign this, put your SSN here, sign here, initial here, read the NDA and date it. You’ll need to do this all morning. This afternoon you have a sexual harassment seminar and then you can catch a flight to go to orientation. You’ll see some work when your boss gets back in town.

I’ve experienced a mixture of all these and I know there are plenty more. I’ve walked into a small business (4 people) and had to find out why the router isn’t working anymore, contact the ISP and put together a proposal as to which provider we should switch to (JIC).

I’ve walked into a cubicle farm and been handed boring, menial tasks because nobody was there to supervise me yet and help me get to work on a project. I’ve gone to three consecutive weeks of training worth absolutely nothing.

I think companies should start to see the value of the first scenario. It’s like a First Class Interview because your new hire will either sink or swim. Why waste 16-40 hours of salaried time getting them acclimated, trained and filling out papers that might not be relevant in a few weeks? What if they fail in a month and you had already wasted a few days paying them. (Yes, I’m suggesting that interviewing is imperfect and some folks will slip through the cracks, but that’s another discussion.)

Have you ever had a spectacular first day? One that set the pace for the rest of your time with the company?

Internal Friction

2 Replies

The problem with bosses is they often know what needs to be done but aren’t always so great at communicating why it needs to be done. Some people just rub you the wrong way in how they talk to you, how they do or do not help you understand what needs to be done. Many people just don’t care and want to do the bare minimm. I run into this pretty often and the nature of my work means I have about a dozen bosses (and a dozen more co-workers) all with different personalities, particularities, preferences, management styles, and leadership styles. What a fun challenge!

The first thing I realize is these people have been where I have, do what I do, and have usually already been in the same position. There’s many a time where you will doubt a manager’s understanding of what needs to be done. A lot of times you’ll become frustrated by how your co-workers interact with you. And, unfortunately, some people do get promoted and do end up in places they shouldn’t be. This creates a tough situation that often leads to friction.

I try to constantly and consistently communicate with the people I work with to provide feedback. In other words, “managing upwords” is a great skill to develop. For example:

I let my boss know my opinion on a task or approach, why I disagree with it and offer an alternative.
I tell him or her what I think my priorities are and make sure we agree. Often we don’t.
I make sure that they know what I prefer or how I work and make sure I understand their style, too. Asking for expectations is a good way to start this conversation.
I immediately confront someone who I have an issue with or who clearly has an issue with me.

Typically this can resolve any friction you have with someone. But, too often you’ll see people ignore the issue, talk behind a person’s back or even give up and maintain contempt for a person. I admit, I’ve done this a number of times.

My best solution to offer is to stop and talk with the person. Walk across the hall, pick up the phone, or simply recognize the opportunity to tell the person right then and there (“John, the way you just asked me to do that? That was borderline rude. You didn’t even request it of me–you commanded me.”).

If you struggle talking directly to a person, perhaps a mentor is the best medium to communicate with them. Talk with someone you trust (preferably in a position above you) and ask them how to navigate the political situation, what the best approach would be, and if they could perhaps speak with you or speak on your behalf.

Have you ever been rubbed the wrong way by a co-worker or boss (no, not that way) and salvaged the relationship? Share your story in the comments.

Caption Contest Friday

10 Replies

I’m in a good mood and my brilliant mentor, noah, suggested I create a caption contest for the following picture:

Winner receives a $10 Amazon.com gift certificate. Leave your caption in the comments.

Winner: With my invisible knife, I stab at thee, foul editor.

PS: Photo taken with my new iPhone (on T-Mobile, ask me how!).