@MTPHereToHelp Stuck for 30+ mins in heavy congestion at Masjid Bunder,no traffic cops in sight to manage d chaos. We had to get out of our cars to navigate. Ironically, 3 officers were stationed at the freeway end, only stopping & fining cabs. No support, just penalties.
In 2009, Stanford business professor Tina Seelig split her class into groups and issued a challenge:
Each group had $5 and 2 hours to make the highest return on the initial money.
At the end, they'd give a short presentation on their strategy.
The results were fascinating...
Most of the groups followed a basic approach:
• Use the $5 to buy a few items.
• Barter or resell those items.
• Repeat
• Sell final items for (hopefully) more than $5.
These groups made a modest return on their initial $5.
A few groups ignored the $5.
They thought up ways to make the most money in the 2 hours of allotted time:
• Made and sold reservations at hot restaurants.
• Refilled bike tires on campus for $1 each.
These groups made a better return on their initial $5.
The winning group took an entirely different approach.
They had three core realizations:
1. The $5 was nothing more than a distraction.
2. The 2 hours of time was not enough to make an attractive, outsized return with a mini-business (like selling restaurant reservations or filling bike tires).
3. The most valuable "asset" was actually the presentation time in front of a class of Stanford students.
Realizing the value of this hidden asset, they offered the presentation time to companies looking to recruit Stanford students.
They struck a deal to sell the time slot for $650, netting a monstrous return on the $5 of initial capital.
The losing groups thought in linear, logical terms and achieved a linear, logical outcome.
The winning group thought differently.
So, what can we learn from this story?
There are two types of problems:
1. Low-Stakes: Lower potential, linear rewards. Decisions are easily reversible.
2. High-Stakes: Higher potential, asymmetric rewards. Decisions are not easily reversible.
With low-stakes problems, given the reward potential is low and the decisions are easily reversible, we can use shortcuts and heuristics to choose our path. We can take a logical, linear approach.
With high-stakes problems, the high, asymmetric reward potential means we need to think differently. We want to take a creative, non-linear approach.
Three steps to start thinking differently:
Step 1: Avoid the Distraction
There will always be an "obvious" solution that is simple, clear, and entirely wrong.
In the challenge, the $5 was nothing more than a distraction. It was a trap.
To find the best path, you have to avoid the distraction.
Step 2: Ask Foundational Questions
Ask and answer questions that expose and vet underlying assumptions and logic.
• What's the real problem you are trying to solve?
• What's your hypothesis? Why?
• What are your core assumptions? Why?
• What evidence do you have?
• What are your core options?
• What alternatives exist?
This takes time, but it's an essential exercise when facing a problem with the potential for non-linear rewards.
Step 3: Select the High Leverage Approach
Slow down and evaluate the options on the table.
Select the path most likely to generate the asymmetric, attractive risk-adjusted returns.
If the story teaches us one thing, it's this:
Creative, non-linear, asymmetric thinking generates creative, non-linear, asymmetric outcomes.
If you enjoyed this or learned something, follow me @SahilBloom for more in future.
An hour into the #EdUSAVirtualFairs and I just told my dad paani Mai bottle daalke de do! This is what a busy fair does to you. What a great turnout! Im glad to be a part of this annual event! Kudos @EdUSA_India team 😊
*How to write a script for a comedy movie starring Ayushmann Khurana*
Take a middle class guy
Create a problem that society usually considers unusual
Make him feel embarrassed
Add lots of metaphors in dialogues
In the end, make him accept his situation and let him move on
7 Habits for Success:
1. Read every day.
2. Make your health a priority.
3. Learn from people you admire.
4. Plan your day the night before.
5. Keep your goals in front of you.
6. Take action, even when it's scary.
7. Have an attitude of gratitude.
I hope u find someone who doesn't make u sad at night and someone who reminds u how much they love u every day and who laughs at ur jokes. Someone who wants to listen to your music and who genuinely wants to be with you. I really hope you find that one, because you deserve that.
Time’s always moving on; nothing can stop it. We can’t change the past, but we can still learn from it. And we can shape the future, creating a more peaceful era, by adopting a realistic approach, recognising that the more compassionate you are, the more you’ll find inner peace.
From kindergarten onwards we need education to strengthen inner values not just pursue material goals. We need to introduce emotional hygiene, much as we teach physical hygiene. This way we can address the problems we face, in the hope of making this a century of non-violence.