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 👇
If your team spends more time on format than content… Your company… Your project… Your leadership… Has a problem. A big one. “Not professional.” “Not following the brand guidelines.” “My boss will not approve it.” “My client will not approve it.” Trust me. A well-written, well-structured memo in a blank Word document with no logo can do maravillas. The fanciest PowerPoint with no substance only does one thing: It extends useless meetings at a rate of 6 minutes per slide. Minimum. The excuses...
I haven’t been involved in disputes or claims lately. I gave that up. Entirely. The reason? Nobody wins. No matter how well you do it, one side ends up unhappy. Sometimes both. And unhappy endings are not my cup of tea. I prefer to focus on preventing misunderstandings, disputes, and nasty claims before they happen. Because it is possible. It is feasible. And in many cases, you can create those conditions by design. How? By understanding the good, the bad, and the ugly. What works. What...
Some people are working in a disaster project. But they don’t know it. Because they have never seen a good one. They think delays are normal. Claims are normal. Meetings with 23 people and zero decisions are normal. A contractor sending 17 notices before breakfast is normal. A client changing its mind every Thursday is normal. 50 notices being exchanged at 4:50pm on Friday is normal. A SPV board asking “where are we with this?” every month is normal. No, my friend. That is not normal. That is...