Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇
Which of these two options would you choose?
|
Daniel Kahneman, the author of Thinking, Fast and Slow, did an experiment. He gave two options: Would you accept a gamble that offers a 10% chance to win $95 and a 90% chance to lose $5? Or. Would you pay $5 to participate in a lottery that offers a 10% chance to win $100 and a 90% chance to win nothing? Well… if you studied engineering, you have convinced yourself that the two problems are identical. In both, you are either richer by $95 or poorer by $5. But that’s engineering mindset… No question why we take so long to find someone that can endure us. The reality is that the second option attracts more people. A bad outcome is much more acceptable if it is framed as the cost of a lottery ticket that did not win than if it is simply described as losing a gamble. We should not be surprised: losses evoke stronger negative feelings than costs. If you have no idea what I’m talking about, you should take a look to the book below. It will teach you to avoid gambles and call some costs, investments.
PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. |
Vicente Valencia
Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇
Raise the bar on yourself. Never settle for doing “enough.” Today’s world is competitive and moves so quickly that you will have to raise your stamina level if you expect to remain in the competition or to even get into the competition to begin with. Those words are not mine. They are from a little orange guy living in a white house in Washington DC. You may like the guy or not… I don’t care. The thing is that Orangeman is right. The business as usual is killing professionals, if not...
When you could do anything, why focusing on less… Why specializing… Well… I receive that question or variants of that question often. In my work, just PPPs and major infrastructure projects. Why only big things. Big jobs… or where the big money is… In my investments, just real estate. And the answer is simple. If you are an adult, you know that working more hours does not equate to better results. Not even more money. On the contrary, working more hours usually means you’re grinding your...
When I was a junior project manager trying to discuss with a senior construction manager where to put some fiber optics for a toll system, he told me a story… In a large tunnel project, they had spent weeks arguing about where to put a temporary installation. Not fiber optics… but almost. Design said one thing. Construction said another. The client wanted the classic miracle: “No impact on cost. No impact on programme. No impact on risk.” Of course. And I want to eat croissants every morning...