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877: Why Small Decisions Matter—and How to Make them Better with Richard Moran

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Richard Moran makes the compelling case for why we should take the small decisions in life more seriously.

You’ll Learn:

  1. One word to purge from your vocabulary.
  2.  The simple trick that makes making decisions easier.
  3. How to use your gut effectively.

About Richard

Richard A. Moran is a Silicon Valley-based business leader, workplace pundit, bestselling author, venture capitalist, former CEO and college president. He is best known for his series of humorous business books beginning with the bestselling, Never Confuse a Memo with Reality, and is credited with starting the genre of “Business Bullet Books.”

His body of work includes 10 books about using commonsense in business. He is the host of the CBS syndicated radio program, “In the Workplace.” Rich has appeared on CNN, NPR, and most major media outlets. He continues to work with organizations to help them make better decisions and is an “influencer” on LinkedIn where he is a regular contributor.

Resources Mentioned

Thank you, Sponsors!

  • BetterHelp. Make better decisions with online therapy. Get 10% off your first month at BetterHelp.com/awesome.

Richard Moran Interview Transcript

Pete Mockaitis
Richard, welcome to How to be Awesome at Your Job.

Richard Moran
Thanks, Pete. I’m happy to be here today.

Pete Mockaitis
Well, we’re happy to have you talking decision-making in your book Never Say Whatever: How Small Decisions Make a Big Difference. Could you maybe kick us off with one of the trickiest or most interesting decisions or decision-making processes you’ve ever witnessed?

Richard Moran
Sure. Well, in the book, I interviewed a lot of people about how they make small decisions, and my books is not about huge decisions in our lives. It’s about the thousands of small decisions that we’re making every day. And I asked some people, “How do you make these small decisions?” And I got all kinds of interesting answers. Everything from some people, one guy said he turns over the Magic 8 Ball until he gets the right answer, you know, the toy, the Magic 8 Ball. Some people ask Siri, “Hey, Siri, what should I do about this?” But those are sort of the outliers. What most people do is say things like…

Siri
“Make a note. Define happenstance. And set a timer for 20 minutes.”

Richard Moran
Sorry, there she is.

Pete Mockaitis
Actually, that’s perfect.

Richard Moran
Yeah, she actually, there she is. She does everything.

Siri
It’s okay, Rich.

Richard Moran
Stop, Siri. Most people use simple things like pros and cons and if-then scenarios and things like that. The book is about small decisions, and in my research, I found that there’s like 3500 small decisions that we make every day, and all of them matter. If you don’t make any single one of them, your little world on that day might go sideways.

Pete Mockaitis
Thirty-five hundred, so, geez, that’s like three or four a minute of consciousness.

Richard Moran
Yeah. Well, think about it, in the research, they did the simple test of the decisions that you make when you go out to lunch with a colleague, and they found that there’s about 350 decisions that you make when you go out to lunch – where to go, where to sit, leave your jacket, take your jacket, lettuce, tomato, mayonnaise, sourdough, wheat. You get the idea.

But every time you say, “Whatever” to any of those decisions, you’re likely to get just the sandwich that you don’t want. So, all I do is highlight that every time you say the word ‘whatever’ bad things might happen. And this might be the easiest interview you’ve ever done because all I want your listeners to do is stop saying, “Whatever.”

Pete Mockaitis
Okay.

Richard Moran
As simple as that. I’m the evangelist to kill one word – whatever.

Pete Mockaitis
All right. Well, so tell me, while you were putting together this book, any interesting, surprising discoveries?

Richard Moran
Yeah. Well, I interviewed leaders as well as men and women on the street. And what I found is that there’s a simple solution for curing the ‘whatevers.’ So, if someone says ‘whatever’ to you, I’ve discovered that effective leaders, effective people in their jobs, say, “Tell me what that means. Okay, I get that you said whatever. Tell me what that means. Does that mean you don’t care? Does that mean you want me to make the decision? Tell me what that means.” And the simple response to whatever of someone saying, “Tell me what that means,” is really helpful.

And then, on the other side, when people say, “Well, how do I stop saying whatever?” I found that leaders do a simple thing, and that is they are always clear about what their intentions are. So, the example that I’ve used that seems to resonate is if your intention is to lose weight, you make decisions about being on a diet. If your intent is to stay in shape, you decide to take the stairs, not the elevator. If you intend to stay married, you make decisions that will keep your marriage alive.

So, I know those are very simple and very simple kinds of examples but clarifying one’s intent is not as easy as it sounds. So, what I want people to do is think about what your intent is for a day, or for this job, or for this project, or “For my career.” What’s your intent? Because then the decisions are easy. If your intent is not clear, then the decisions are hard, are less easy, and you’re likely to say, “Whatever.”

Pete Mockaitis
Okay. Well, so it sounds like you’ve nicely segmented a few categories of what whatever can mean. Can you break those down for us?

Richard Moran
Yeah. Well, there’s lots of definitions for whatever. And it’s funny because as I talked to people about the book, the nuances of how they say it resonates like, “Whatever,” or, “Whatever,” and each one means a different thing. So, it usually means, “I don’t care,” you know, “Whatever, I don’t care.” But it could also mean, “You make the decision for me, and I’ll blame you later.”

It could also mean, “I’m helpless,” or it could be a dismissive term. Like, an example so often it’s used is, “Honey, what do you want for dinner?” “Whatever.” Well, that’s a dismissive way to avoid a decision. It can mean, “I hate you.” It can mean, “I’m going to fill this little space of air up with a useless word.” In the book, I found about 20 different definitions, and all of them are bad except for one.

And the one definition that works is, “Honey, I love you, and I’ll do whatever it takes to win back your affection.” But other than that, it’s not benign. It’s sort of a toxic word. Often, people have compared it to the F word. And the F word has a lot of meanings, too, but it can be benign, and whatever is not. It’s toxic, especially in the workplace where people are paid to make decisions. Everyone is paid to make decisions at work.

Pete Mockaitis
Okay. So, then tell me, if a small decision comes up, and we really are indifferent, what do you recommend we do or say?

Richard Moran
Pick one.

Pete Mockaitis
Okay.

Richard Moran
If you’re indifferent, then I can see someone saying, “Well, they’re both good, so I’ll take this one. I’ll pick this one.” How many times have you been in a restaurant or anywhere, and whatever projects an indifference, which usually projects…? Indifference is one thing, and that might be okay. But usually, the word projects a sense of you being a slacker, or you just being indifferent means lowering, “I don’t care.” And there’s a difference between indifferent and “I don’t care,” but it’s very slight.

Pete Mockaitis
Okay. So, tell me, you’re right. It seems like this isn’t easy. You tell me, Richard, master radio person, if that’s the big idea, and we’ve already got it, where should we go?

Richard Moran
Well, Pete, I can tell you some stories about how I got onto the work.

Pete Mockaitis
All right.

Richard Moran
So, it’s a classic case. I was in a big-time consulting firm, giving a presentation about…it was actually about operator centers, and people were going to lose their jobs depending on how the decision went. And as I relayed all the options, the CEO at the time said, he raised his hand and said, “Whatever.” And I said, “That’s not one of the options.”

So, I wanted him to pick one and then he wouldn’t. So, what he was really saying was, “You make the decision for me, Mr. Consultant, and I will blame you later,” which, of course, he did. And the word came to be people assume that teenage girls are ones that say this word. Remember the movie “Clueless” with Alicia Silverstone, where she would raise her fingers in a W and everybody would go, “Whatever”? Well, that’s how it started, but it’s not teenage girls who say it alone. It’s everyone who says it.

Now, for some people, it could be a shrug of the shoulders, it could be raising your eyebrows or rolling your eyes, it could be the middle finger, it could be a lot of things. But every time you say that, it’s turning into a decision that you’re avoiding. And I’ve learned in the research also that the decisions that we don’t make are the ones that create regret in our lives.

So, when people say, “I should’ve gone to graduate school,” or, “I could’ve been a manager,” or, “I would’ve been more successful had I…” you know, the should’ve, could’ve, would’ve are all part of the whatever syndrome that you didn’t make the decision. And what the research again shows is that the decisions that we did not make are the ones that we regret.

So, think about that every time you’re not making a decision, you’re regretting it, and that’s not helpful. It’s not good. And it even affects our personal lives when we can, in our dealing with our partners, and our children, and our parents, the whatevers are just toxic where you should be intentional, and you should be trying to do something with your decisions, and not blowing them off. It’s as simple as that.

Pete Mockaitis
Okay. And so, if we do have sort of a fear or an avoidance going on with decisions, how do you recommend we improve that mental space?

Richard Moran
Well, there is, I call it the FOBO, the fear of a better option, “I want to take the high school cheerleader to the prom but, in the meantime, I’ve got this other…” So, the better options usually don’t appear, and so make a decision based on what you know. There’s also, and I love this rule, it comes out of Bain, the consulting firm, that they call it the two-minute rule.

And that is, whether you’re an organization or an individual, the decision that you make, are likely to make in the first two minutes of being faced with it, is probably the same decision that you’ll make if you suffer over it for a week. So, make the decision quickly, in that way, if it’s not the right decision, you can always go back and change it.

So, the two-minute rule is something that is really something that can affect our getting out of the whatever syndrome, so it’s a good rule. And I think it also applies to the regret. So, if you don’t make the decision quickly, and you’re probably going to have regrets about not making them later. And, Pete, there are so many books written about decision-making. There are hundreds of books that include pivot tables, and spreadsheets, and all kinds of flux capacitors and String theory, who knows what.

This is not complicated. What I want people to do is understand that the small decisions are the ones that matter, so please make them. I’m not suggesting that anybody go into a big decision, like a career move or marriage or something, and treat it like it. Those are not small decisions, and require all the analyses and thoughtfulness that they should. I’m just talking about the small decisions and how important they are. As simple as that.

Pete Mockaitis
All right. So, we have the small decision, and we have any number of reasons we don’t care to make it, we want to blame someone else. We are open to any number of things. We’re a little bit scared of the implications. Walk us through, we got two minutes to make a small decision. What do you recommend we do to make a small decision greatly in two minutes?

Richard Moran
Well, a lot of people say, “I’m just going to use my gut,” which is fine. Gut is fine. Everybody points to Steve Jobs as he always made gut decisions. Well, gut decisions are fine if your gut is informed. Steve Jobs could make gut decisions because he had years of product design and understanding what worked. So, your gut decision in the first two minutes could be the right way to go if your gut is informed.

If it’s not, then you need to do simple things like, as I said earlier, just make a list of pros and cons, make a list of “If I do this…” Do an algorithm, “If I do this, then this will happen. If I don’t do this, then this will happen.” And we’re constantly doing that in our head anyway, so use those simple techniques that have seen to work over time.

What I find is that people, when they don’t make these small decisions, they pile up. Email is the best way. Think about email. Every morning, we all have hundreds of emails. What do we do the first thing? We delete the ones that are easy. We delete, delete, delete. So, out of the hundred emails, there’s 50 left. Ten of them are hard, and those are the ones that we might not make decisions about.

We wait until later in the week, and on Friday, those 10 decisions are now 50 decisions that are not momentous but that’s what causes decision fatigue. We all have decision fatigue right now about what to wear, what to watch. So, it’s a good way to avoid decision fatigue is just by making the decisions when you’re faced with it.

Pete Mockaitis
Now, that’s interesting because I had conceptualized decision fatigue as a consequence of making too many decisions, it’s like, “Oh, I’m so fatigued from doing pushups or running. I’ve done so many pushups or ran so many miles, I’m now fatigued.” But you posit that, “No, it comes from not making the decisions.”

Richard Moran
It is, yeah. You’re faced with it and you don’t make it, so, all of a sudden, you’re burdened, you’ve got the weight of the world on your shoulders because you’ve postponed all these decisions, and now you have to make them all, and they’re harder if you wait. So, I think both can work, both are possible, but what I’m suggesting is that when you don’t make a decision, they pile up, and then you get sick and tired of making them all.

Pete Mockaitis
Yes, and it’s certainly more overwhelming and unpleasant to face an inbox in the hundreds than in the dozens.

Richard Moran
Yeah, and they do, as we all know, they do pile up. And the hardest ones are usually the ones that we don’t make decisions about.

Pete Mockaitis
Indeed.

Richard Moran
So, that’s what I’m trying to get your listeners to avoid.

Pete Mockaitis
You’ve got a turn-of-a-phrase, “action follows intent.” How does that apply here?

Richard Moran
Well, it’s something when I talked about earlier about clarifying your intentions, and then your actions and your decisions are much easier to make. And when people think about intentions, especially in the corporate world, they think about visions and missions, or the intent of Google is to provide information to the world in a good way, and do no harm.

But what I’ve discovered is that people have their own intentions. And one of the guys I interviewed for the book, who was so fascinating, his name is John Bullock, he’s in Kansas City, or he’s in Lawrence, Kansas, and he is both an episcopal priest and a very successful lawyer. And he has a personal mission statement which just clarifies his intent, and it’s to help people.

So, every day, his intention is to help people, and then he makes all his decisions along those lines. And I’m not doing him justice, but it was a beautiful thing when I heard it, because he made all of his small decisions every day because his intentions were so clear. And it works. For him it really worked. So, that’s what the actions follow intent is all about, and make the intentions clear.

Pete Mockaitis
Do you have any other perspectives on the self-awareness, the clarity of intention, or articulations, examples of that, that just make a world of difference in aiding our decision-making?

Richard Moran
Yeah. Well, the other thing I learned, besides actions follow intent, is that good decision-makers are self-aware, that they know in their heart of hearts what they really want to do and they make decisions accordingly. And I think good leaders are self-aware, and good leaders are able to make decisions. So, an example I use, I was a CEO of a company, and I knew that I am not good at numbers, I’m not good at details. Believe it or not, there are CEOs who are not good at those two things.

But I am good at sales, I am good at communicating, I am good at building relationships. So, I’m self-aware enough that I could make decisions so that I surrounded myself with people who are good at numbers and good at details, and it just made the organization way better the fact that I was self-aware enough that I could make decisions like that. And as I talked to leaders around the world, they’re all self-aware. And that self-awareness allows them to make better decisions. Simple, yeah.

Pete Mockaitis
Okay. Well, let’s say we do have some clarity of self-awareness and intention, and we are inspired, we are not saying whatever, we’re taking on decisions, we’re making them in two minutes frequently or less, are there any traps or pitfalls within this world that you’d highlight for us to avoid?

Richard Moran
Yeah, one is that you make decisions based on what you think other people want, and that’s an easy pitfall. Another is that you don’t take risks with your decision-making. And a lot of the good leaders made risky decisions. Let me put it another way, they were not afraid to make what they would term as a risky decision.

Another pitfall is that lots of times we all have to make decisions when all of the options are bad. And I see that happening right now in the tech world. Or, leaders are making decisions based on, “Should we run out of money or should we lay off people?” Both of those options are bad, but you still have to make one. Delaying that decision is going to mean bad things, both bad things are going to happen.

So, I see people really delaying decisions and not making them when the options that are available are all bad. So, put it all together, and it just adds up to success. Personal satisfaction, career success is all based on the ability to make all those small decisions.

Pete Mockaitis
All right. Well, tell me, Richard, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Richard Moran
No, I think, as you said, Pete, the whole book is in the title, Never Say Whatever, and I think we covered it.

Pete Mockaitis
Okay. Well, now could you share a favorite quote, something you find inspiring?

Richard Moran
Yeah, I have it right here. Let me find it. And it’s by one of my favorite authors, it’s by Arthur Miller. Well, I have two quotes, actually. The Arthur Miller quote is, “One can’t forever stand on the shore. At some point, filled with indecisions, skepticism, reservation, and doubt, you either jump in or you concede that life is forever elsewhere.” And the other quote I like, it’s by anonymous, is, “I used to be indecisive. Now, I’m not so sure.” So, don’t be indecisive. But I like those two.

Pete Mockaitis
And a favorite study or experiment or bit of research?

Richard Moran
Well, I love the Cornell research that talked about the small decisions that we make every day, and that’s one that discovered how many decisions we make, and brought it down to lunch. So, it’s fascinating when you think about it. And there’s also a lot of research that I found interesting in doing the book, and that is how many big decisions people identify in their life.

And how many times have we heard somebody say, “Oh, I’m faced with so many big decisions”? Well, the truth is, and this is out of a lot of research also, that there’s 10 or 12 big decisions in our lives, 10 or 12. And that includes things like your career, where you live, who you marry, your faith, what about children. It even gets down to whether or not to have a dog.

So, people think that there’s all these big decisions hitting them all the time. There’s not. Those big decisions are few and far between because they’re so few. It’s all those small decisions every day that are what are so important.

Pete Mockaitis
All right. And a favorite book?

Richard Moran
My favorite book is a recent book, and it’s out now by an Irish author, and it’s called This Is Happiness and it’s a coming-of-age story. I bet a lot of your readers don’t know about it, or listeners don’t know about it, but it’s just lyrical about what’s important and about how we all transform from young into a mature person. It’s a great book, This Is Happiness.

Pete Mockaitis
All right. And a favorite tool, something you use to be awesome at your job?

Richard Moran
My favorite tool is a hammer. In fact, I love hammers so much I have a large collection of hammers. Because how frustrating is it when you have something that needs to be hammered and you can’t find one? So, I have a lot of hammers. That, of course, implies that I treat everything like a nail, and that might be true. When the only tool you have is a hammer, you do tend to treat everything like a nail.

Pete Mockaitis
All right. And a favorite habit?

Richard Moran
My favorite habit is getting up early, and greeting the day with a smile, and say, “It’s going to be a great day, and my intentions today are to make it so.”

Pete Mockaitis
All right. And is there a key nugget you share that really seems to connect and resonate with folks; they quote it back to you often?

Richard Moran
Yeah. Well, what I’ve discovered is that, as I’ve talked about the book and the word whatever, I’ve described as an earwig. I’ve put a bug in their ear, and now I’ve ruined their day because every time they say the word, they shiver because they know they shouldn’t be saying it. So, I’m putting earwigs in everybody’s ears, that don’t say whatever. And instead of it’ll be annoying, now it’ll be like the theme song from “Cars” or “Kids” or something. It’ll really be annoying.

Pete Mockaitis
All right. And if folks want to learn more or get in touch, where would you point them?

Richard Moran
I have a website, it’s RichardMoran.com, and I do look at it, and I do respond. And I’m active on LinkedIn. Yeah, I’m very responsive. I am really trying to help people be more successful.

Pete Mockaitis
All right. And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Richard Moran
Well, it’s easy. This is an easy one about stop saying whatever. Make those small decisions. That’s my challenge.

Pete Mockaitis
All right. Richard, it’s been a treat. I wish you much luck in all your decisions.

Richard Moran
Thanks, Pete. It’s been great to talk to you.

824: Thriving amid Information Overload with Ross Dawson

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Ross Dawson shares battle-tested strategies for excelling in a world of massive information.

You’ll Learn:

  1. The five information superpowers 
  2. How to consume information optimally
  3. How to discern the good sources from the bad ones 

About Ross

Futurist and author Ross Dawson has focused for over 25 years on the challenge and opportunity of how to thrive on unlimited information. The initial offering of his first company Advanced Human Technologies was helping financial market leaders and company directors develop their information capabilities. He shared early insights in his prescient 1997 article Information Overload: Problem or Opportunity? 

For over two decades Ross has applied and consistently refined his frameworks for enhancing information capabilities. As a leading futurist, keynote speaker and advisor he has travelled around the globe helping business and government leaders envisage and create positive futures for an immense array of industries and issues.  

Resources Mentioned

Ross Dawson Interview Transcript

Pete Mockaitis
Ross, welcome to How to be Awesome at Your Job.

Ross Dawson
Wonderful to be talking to you, Pete.

Pete Mockaitis
Well, I’m excited to dig into your wisdom about Thriving on Overload: The 5 Powers for Success in a World of Exponential Information. But, first, could you tell us a little bit about your knack for musical instruments? I understand you can play many. How did you learn how to play them all? Any tips and tricks, or any special performances that really leap to mind?

Ross Dawson
Well, it’s just at the age of 14, I said, “I just want to play guitar,” so I gave a little money to my dad, he bought me a guitar, and I actually, at the time, had some cassette tapes and a little book, and I taught myself. So, I teach myself just about everything, and so it was the guitar included, and then I sort of worked out, “Okay, well, that note on the guitar, is that a note on the piano?” And so, I looked out on how to play the piano, and learned a couple of other instruments. It’s all self-taught.

Sometimes it’s useful. Often, it’s useful to have teachers but I think there’s so much we can discover ourselves in the way we find our own ways of doing things if we do them ourselves. And that’s certainly been my musical journey where I just do what I want to do, and I enjoy it, and not necessarily following what anyone’s suggesting to me I should be doing.

Pete Mockaitis
Fun. Okay. And were you in a band at some points along the way or any noteworthy performances?

Ross Dawson
Yes, just lots of bands along the way, mostly pretty early on when I was at school, when I was university, and then after that, yeah, a number of other bands, and playing guitar, bass, keyboards, percussion. And I’ve been certainly keen to get back to it for quite a while, and it’s a bit harder when you have kids and you got busy and so on, but working on some ways to use technology plus instruments to be able to create my own one solo show live.

Pete Mockaitis
Oh, fun.

Ross Dawson
So, working it too.

Pete Mockaitis
Looking forward to it.

Ross Dawson
So, see you if I actually get on stage at some point.

Pete Mockaitis
That is good. Well, one final question on the music scene, did any of your bands have funny names? Band names are our favorite.

Ross Dawson
Nothing that I…well, funny, I don’t even remember them all. Platinum Blues was one of the sorts of bigger bands that I was in. So, this idea of those blues but we were sort of gilding it. So, that was, I suppose, one of the steps along the way.

Pete Mockaitis
Cool. All right. Well, Ross, now tell us a little bit about Thriving on Overload. Any particularly surprising or counterintuitive discoveries you’ve made along the way on this stuff?

Ross Dawson
Well, I suppose, in a way, Thriving on Overload is counterintuitive in the sense we live in a world of overload, but we can thrive on it. I think this is a fundamental belief that our brains are not adapted to the world that we have created. Incredible inventors that have made, among other things, a profusion of information, and screens, and always on, and this is something is what we have brought ourselves, but it is not something that our brains are ready for, so we are overloaded. We are overwhelmed. It’s just natural. It’s impossible not to be, in a way.

But I do believe that it is possible to thrive on that. And this is, I suppose, a way where we can become, you know, learn, change how we do things, what we do, our attitudes, practices. And that, in a way, means we can transcend who we have been to be more adapted to the world that we live in. So, this is a journey, we can learn things, we can progress, and so that’s something which is not obvious but I think this really is our most important capability that we need to develop.

Pete Mockaitis
Okay. Well, so then can you paint a picture for, if there’s any cool studies or data or research, which really reveals just what’s possible in the realm of thriving on overload? Like, what’s the typical level of thriving/floundering in the midst of overload versus what can really be possible if you master this stuff?

Ross Dawson
There’s a whole set of capabilities to develop the capability to thrive. So, the subtitle of the book is, The 5 Powers for Success in a World of Exponential Information. Those five powers are purpose, framing, filtering, attention, and synthesis. So, we need to be able to dig into each of those and how all those fit together. But if we want to distill this, I suppose, to research and some data and some one frame, one piece of research or sort of now what is compounded research is into multitasking.

And some people think they’re good at multitasking, and the reality is that now more recent studies on what’s actually happening in our brain shows that when we think we are multitasking, as we think we are doing two things at the same time, our brain is actually switching from one thing to another thing, and then back to the other thing, and then back to the other thing.

Now, if we’re simply listening to a podcast while we’re cooking dinner, that’s probably achievable. That’s not too hard to go back and forth. But if we’re doing something which is contemplatively taxing, and we’re then checking our email, or trying to watch TV, or whatever it is, it’s simply not functional. So, studies have shown, in fact, that those people who think they are good at multitasking actually underperform those people that don’t think they’re good at multitasking because they’re trying to do something which is literally not possible. Our brains cannot multitask.

So, this is where we are put in a world with so much wonderful things going on, and we try to pay attention to multiple things at the same, and it’s simply, yes, you can do it by switching your attention, but you will perform less than you’ve done before. Now, taking research at the other end of the spectrum, those who are trained in the single practice which takes our attention the most sustained is meditation, which is simply the practice of keeping our attention sustained on one thing for a period of time where we can continue to be on attention on one thing for a period of time.

And you don’t need to be a meditator to get there. There are other ways to be able to get there, and there are people who switch everything off, and for three hours at a time, aside from getting up and stretching and having a drink of water or whatever they need along the way, will be focused on task for a period of hours.

And the reality is that it’s only a very small proportion of people that are able to and do take that time and capacity, develop that three hours of attention, spend it on one thing in which they can achieve incredible things. Whereas, the vast majority of people, it’s literally, their attention is not on one thing for more than literally a few minutes at a time, at best, because they’re just strayed by thoughts or notifications or alerts.

And those are the two poles. One is eternal distraction, eternal attention watering all over the place where we can never achieve that much. And those people that demonstratively can keep their attention on one thing achieve extraordinary amounts of things in quite limited periods of time.

Pete Mockaitis
Okay. Well, that does sound exciting in terms of what’s possible. Now, to zero in on that three-hour figure, I’m thinking about ultradian rhythms and just what’s possible for the human organism. Is that three hour like three hours but with, like, a couple minute bathroom and beverage break? Or, how does that unfold, that three hours?

Ross Dawson
Yes. So, to your point, the basic rest activity cycle is generally understood to be 90 minutes, where our brains do go through cycles of, amongst other things, ability to be more focused and less focused. And so, we do need to take that into account, and our brains are different, we could be more or less tired, those all sorts of different factors, but 90 minutes is a reasonable guideline.

So, three hours is something where it is very possible for anybody to spend three hours in reasonable degrees of focus but that’s probably more than as much as most people would want to achieve in a day. The way I put it is that everybody should, for at least 90 minutes, at least once a week, have a complete focus time.

And that’s something which, again, is already challenging for most people. Most people don’t take 90 minutes out where there’s no distractions, nothing interrupting them, where there’s only one thing, they can’t escape from it, and they do get on with it. It actually takes practice to get into that but you can still achieve a lot as you get to that 90-minute period and I think that’s a good starting point for most people.

If you’re used to just being distracted and checking your email all the time, whatever it may be, make sure you have a time of 90 minutes, no distractions, no notifications, nobody’s going to interrupt you unless it’s the end of the world, and you have one task to get on with, and you just do that for 90 minutes, and do that once a week. That’s just incredibly starting point. And from then, you can start to build it.

So, in terms of some of those cycles, one of the most famous is the Pomodoro technique, which you spend 25 minutes of focus, five minutes break, 25 minutes of focus, and five minutes break, sometimes a bit longer break, and then you do that three times, which basically takes you to 90 minutes, have a little bit of a longer break, and then you do that three times again, 25 minutes plus five minutes break. And that works for a lot of people.

Personally, I think that the more flexible approach, as in if you feel you’re in the groove, then why suffer 25 minutes, or if you just feel a little bit of a break first that’s earlier. So, we can let our…some people work to that structure, having a time run, 25 minutes and five minutes break, that works for them perfectly. Other people, I feel that 25 minutes, often I’ll just want to keep on going, I won’t want to stop. But when I’m ready, I can take a stop, wander outside, pick up the guitar, whatever it may be.

So, I think if we get into this practice, what we do need is find our practices, find our routines that work for us, find what times of day is the best time to do this, but just making sure that you are starting with at least carving out some time, which is this what I call deep-dive time. That’s when you can achieve an incredible amount in very limited periods.

Pete Mockaitis
Okay. Well, then so we’ve got a sense for what that means with regard to minutes of focused attention, which is handy. Could you share a cool story if there’s a particular case or poster child, if you will, that really illustrates what that can mean in practice for one’s results, career, productivity when they get there?

Ross Dawson
I think the reference point for, certainly for me, and I think for a lot of people is writing books. There’s pretty significant proportion of people say they aspire to write a book at some time in their life. You are never going to get there unless you have the focused time and you’ve blocked that out. So, that’s where anybody can say, “All right, I would love to write a book.” It could be a fiction book, it could be a memoir, it could be about this big idea you’ve have, it could be to show you’re the expert in your field, whatever it may be.

And, yes, when I wrote my first book, before I wrote my first book, I said, “I think society overweighs the value of a book. Being an author is an incredibly wonderful thing and society gives a lot of value to authors and, yeah, it’s a good thing but it’s…so I’ll play that game, if that’s what it is.” I have to say that after writing the first book, I say, “Well, actually, probably authors do deserve some respect.”

But it is something where you do need to carve out the time. So, anybody who writes a book will have an incredible accomplishment, it doesn’t matter how many books or copies are sold, you will have achieved something of value, something to point to, one which will advance your reputation, your career, your abilities, you’ll learn a lot through doing that. So, I think it is a wonderful endeavor, and that is something which can only be done with focused time that is blocked out, it’s simply for that.

Pete Mockaitis
Okay. So, there it is, it’s kind of binary, on or off. Certain accomplishments such as writing a book are just impossible without the ability to have that focus for an extended period of time that is 90-ish minutes or thereabouts or even greater. And then I think in this age where there are different media and creations, we could maybe think of the book as a proxy or a representative for any sort of, I don’t know, magnum opus or great work of sorts that they’re not cranked out in 15-minute break in between Instagram sessions.

Ross Dawson
Exactly. To your point, if you want to be a YouTuber, today the bar for YouTube videos is pretty high, as in it’s a very high quality. If you want to do X videos on a particular topic and show you’re the expert, you’ve got to be pretty good because there’s a lot of other really good people out there. And, again, that’s not going to happen by itself.

You’ve got to say, “All right. Okay, I’ve got to work out. All right, what’s my topic? What’s my script? Where do I get my video assets? What are the overlays that’s going to be?” This is, again, going to take focused time. It’s not going to happen just by filling in in between other things. And what you can do, for example, in 90 minutes of focus will far exceed what you can do just trying to do bits and pieces while you’re interrupted along the way.

So, this is a way of amplifying your productivity, but it’s also a way of just being more…creating more value from the world we have. And I think that this fundamental equation for almost all of us are input as information. It’s what we read. It’s what we experience. It’s our conversations. It’s what we see in the world. It’s what we live, what we notice. It’s what we make of the world. It’s our knowledge. It’s our understanding.

And then it’s sharing it. it’s creating value with that. It’s building a startup. It’s applying it to our work. It’s making better decisions. It’s seeing opportunities. It’s creating YouTube videos. It’s creating blogposts. It’s creating articles. It’s having more intelligent conversations that add value to more people. It’s the input and the output. And both of those require this structure to how it is we bring our information together and building knowledge. And the structure in our work lives and to how it is we create something of value from it.

Pete Mockaitis
Okay. Well, so you mentioned these five powers: the purpose, the framing, the filtering, the attention, the synthesis. Can you expand upon those in terms of, I guess, a definition, and maybe some top do’s and don’ts for really developing each of these powers?

Ross Dawson
Certainly. So, just at a high level first. Purpose is simply knowing why. Why is it that you deal with information, do what you do in the first place? Second is framing, which is being able to literally build frameworks for your knowledge, for your understanding, for your information so you can piece together how they are connected. Filtering is being able to look at the information source that you have, and to be able to discern what it is that serves you, that serves your purpose, and what it is that doesn’t, and being able to make sure that you leave the ones, the information, that’s not useful.

The fourth mode is attention. So, we’ve been talking about this idea of deep diving. We have extended focus for a period of time, but that’s not the only attention mode. For example, we might have scanning, we might say, “All right, there’s a period of time when I’m just going to look at all my information sources. I’m going to stop and then move on to then perhaps reading and taking that in,” so there’s different attention modes.

And the fifth one is synthesis. And this is, in a way, pulling everything together so that it’s rather than just be lots of information, we can make a body of knowledge, we can understand the system, we can be able to have the foundations to build something of value. So, these are the five powers, and we can sort of perhaps flip over the year digging into specific questions. I can obviously go into greater depth on any of those, but I think laying those out as the five is critically important.

So, where would you like me to dig into from those topics?

Pete Mockaitis
Well, I guess I’d like to hear what sorts of practices enable us to develop and deploy each of these powers well versus what is the antithesis, the kryptonite, of each of these powers that are to be avoided?

Ross Dawson
So, we have to start with purpose, and the way I frame that in my book Thriving on Overload is around our relationship to information. So, we have a relationship with money, we have a relationship with food. In the same way, we have a relationship with information, there’s a lot of parallels with our relationship with food and relationship with information where we can have a not very positive relationship with food where we snack on chocolate all the time or eat when we’re stressed and so on.

And, in fact, there are some quite similar habits, sometimes, which people have with information. But we can also have a positive relationship with food, where we eat healthy food, and we feel that is sustains us, and we don’t have too much food when it’s not something that we truly want. So, with information, the same thing, where we can have a positive relationship with information, which is formed by going to what actually is good for us, which makes us feel happier, which inspires us, which informs our ability to achieve what we want to achieve, and is something which we’re not always indulging and snacking in all the time.

And so, I propose this idea of intermittent fasting information diet. So, some people, for food, they say, “All right, I’m not going to eat for a period of time. Come back and eat a meal, whatever, but I won’t eat anything at all in between.” And I think that’s a very valuable approach with information as well. We can say, “Well, I’m not going to check social media, I’m not going to check the news headlines, I’m not going to indulge in those things because, for a period of time, there are things that I want to do. I want to play with my children. I want to read something which is important, which I’ve decided is something I want to spend my time on, and I want to be able to write my book,” whatever it may be. So, we can vary those things.

But this all comes from purpose in the sense of understanding what it is we want to achieve, what it is we think is worthwhile, and, as a result, being able to determine the information that’s not useful. And the antithesis of that is simply not knowing, “Oh, that’s interesting. A bit about the celebrity news,” or, “Oh, see this horrible thing about what’s happening in politics, and spend some time looking at that.” And none of that serves us because we’re not clear on our purpose.

And so, having that purpose is an absolutely fundamental starting point to simply being able to prosper and know what it is that is valuable to us in a world which is often overwhelming.

Pete Mockaitis
Well, Ross, I’d love to expand on that notion of purpose in the specific context of reading the news. Sometimes, when people read the news, they say things like, “I want to be informed.” And that strikes me as a little bit vague as far as a purpose or a goal goes because, in a way, there is infinite news one might be informed or not informed about. And so, it seems kind of thin in terms of, “My goal in reading this news is to be informed.”

And sometimes I wonder, maybe just because I don’t like reading a lot of news. I guess my purpose, the way I go into this is say, “I’m going to spend approximately 40 minutes scanning the headlines of The New York Times and The Wall Street Journal so that I have a general clue as to the happenings in the world so I am able to converse with people,” as opposed to going, “Huh? What?” And so, that’s my purpose when I’m going to the news.

And it doesn’t take that long, and I find that if I spend too much time on the news, one, I’m pathologically curious, which is great for a podcast interviewer but not so great for a news consumer because, like, two hours later, it’s like, “Okay, I’ve read all about the chess cheating scandal, but how does that serve me?” I found it very interesting and I know I can comment a lot about it, Ross, if you have any questions, but it’s not really enriched me much.

So, can you share with us some example articulations of what might be some rich, useful, best-in-class articulations of purpose when it comes to approaching information of the news?

Ross Dawson
So, a couple of points just with what you’re saying. So, I think that’s wonderful in the sense of, first of all, you mentioned you take 40 minutes, and that’s exactly what I say. We need to have a period of time when we say this, “I’m going to scan the headlines and no more.” But news is one category, in a way, of information. It’s what I framed in the book as society, in a sense of, “What do we want to know about what is happening in society at large?”

And we said, the purpose is, “What is our purpose for it? Why is it that I read the news?” And you articulated, again, a quite clear purpose, so you can have intelligent, or at least, somewhat formed conversation with people, and you only need the headline for that to be able to not know…or, to actually know what’s happening as opposed to having the idea of what’s happening. And that’s entirely valid.

So, some of the reasons why you would want to go in the news is to be an informed voter. Now, that’s something which you probably can catch up with just before you need to vote. You don’t need to be constantly…

Pete Mockaitis
The day before, binge.

Ross Dawson
You don’t need to be constantly reading the news all year round in order to be able to vote, whatever it is that you vote. But that’s one valid reason. Another is to be able to have intelligent conversations with your friends you want to have conversations with. Another is to be aware of the things which are changing in your community, and so that gives you a geographic for this, “All right, I would like to see news about my local community.”

Another is to say, “Are there any things which are going to impact my children’s opportunities?” I might say, “All right, if they’re at a particular age, I might be looking at developments in university or college admissions,” or something like that. So, these are things which you would start to be focused. But this comes back to the domains for our relationship with information.

And one of the first ones, one of the most important ones is expertise. We do have to choose our area of expertise to be clear, “This is what I am an expert in, or I’m aspiring to be an expert in, or something which I think I’ll be useful to be an expert in in a few years from now,” and being quite clear around that, writing that down, “I will become…” or, “I am an expert in a particular area,” quite clearly defined, and that gives you clarity on what information, what sources you need to take in, what you need to distill so that you can become that expert. If you’re just skimming across the surface, you’ll never be an expert in anything, and that is not very useful in the current state of the world today.

Another is in wellbeing, “So, what is it that I’d want to know about my own wellbeing, well, the wellbeing of my loved ones? What is it that’s going to help me to have a better diet to be able to help support the conditions of people in my family?” So, it’s perfectly valid to have some passions. All right, so sports teams or there’s nothing wrong with celebrity news as long as you don’t let that expand to take over all of your news.

So, I think there’s different categories around helping you decide what your purpose is. There is information you can look for. You can look in your expertise, your ventures, whether that’s a startup, or whether it’s a community garden, whatever it is, in terms of your wellbeing, in terms of your relationship to society. These are all things that we can think through in order to become effective.

Pete Mockaitis
You know, Ross, what you really are crystallizing for me is, and this is so helpful. Thank you. Hopefully, it’s good for listeners too. But I find, internally, I have a response of frustration or irritability when I see a news headline or blog article, or whatever, it says, for example, “Topic: What you need to know.” And I’m thinking, “There is no possible way you know what I need to know because our contexts are so wildly different.”

Like, the person running the political campaign for this politician needs to know way more and way different things than someone who may or may not vote for that person months down the road, or someone who’s managing the budget or employees in that industry. I guess maybe because I’m a content creator myself, I’m prickly or snobbish about the quality, but it’s like, “What you need to know, there’s no way one article can provide what everyone needs to know because everyone’s contexts are so different and their purposes that they establish are so different.”

So, Ross, thank you for clarifying what was simmering under the surface for me. And is it fair to say you’re going to have a hard time writing a piece of content that’s what you need to know for all peoples in one fell swoop?

Ross Dawson
Well, I think you’ve hit the nail on the head.

Pete Mockaitis
I guess I just wanted to make sure. Thank you, Ross.

Ross Dawson
But what it comes back to is saying we need to know it is health, and we don’t necessarily know that. So, what I described is we need to develop our own personal information plan. So, to complement the book, I’ve created some software or course where it takes people through that journey of identifying their purpose, and their expertise, and their areas, and their sources, and how they can use that, and the times they’re going to use that and do that.

You don’t need the book or the course, though they’re obviously designed to be as useful as possible. But we all need to decide, “What is my own personal information plan? What is it that matters to me? What time am I going to spend on that? What time am I not going to spend on the things that don’t matter? How am I going to structure my day? How am I going to structure my time? How am I going to spend time to be focused? How am I going to make space to synthesize this and pull this together?”

Information is the core and the value, I would suggest, of almost all of your listeners, and it’s something which most people haven’t spent the time to think about, is to, “How can I do this better?” And we can all build our own personal information plan, and that starts with this idea of, “Why? What’s important to me?” And from that, a lot of that starts to flow into, “What are the structures and the habits and the practice which will enable you to achieve what you want in your life, and be happier because you’re not drowning in the things that somebody else thinks is important to you but actually isn’t?”

Pete Mockaitis
That’s powerful. Well, you got me thinking about email outsourcing, but we’ll move on in terms of thinking about what’s important to me, and what’s not important to me, and what’s important to other people that land in your inbox, and how can you navigate that effectively, whether it’s software or helpers or different levels of support. So, we’ll just let that percolate in people’s heads for now. But let’s hear about framing next.

Ross Dawson
So, framing is building a framework. So, we got lots of information, but that’s all just bits of information. It only becomes knowledge and understanding when we connect that, when we say, “What are the relationships between these ideas? How does this fit together? What are the foundations of my understanding of this area of expertise that I’m developing?”

So, there’s a number of tools, a lot of visual tools that we can use. So, we can use things like mind maps. We can use things like concept maps. We can just sort of just draw things on a piece of paper and draw lines with them. And there’s now more and more software which helps people to not just note, “Ah, that was interesting. Oh, that’s interesting. Oh, that’s a really good study there,” and then to actually make links between them.

So, there’s a whole new generation of software tools, including around research and obsidian, but also other ways of just using simple software tools, such as note taking tools and so on, that enables us to practice this way of framing by drawing connections in, building a lattice of knowledge which is the foundation for how it is we can become an expert, to understand things, to be able to know what the reference points and the researchers that supports what are valid ways of thinking about these spaces.

Pete Mockaitis
And can you paint a picture or give us an example of what a frame looks and sounds like?

Ross Dawson
So, on RossDawson.com/frameworks, I’ve created a whole set of what I find is useful frameworks about the future, but any mind map. I think mind maps are one of the most people are most familiar with, where you have one idea and you lay that out as a kind of visual representation of some of the ideas and how those fit.

So, one of the good things about a mind map is it combines a hierarchy. You have a central idea and then subsidiary ideas, and then subsidiary ideas, but also being able to lay that out to be able to show some of the potential relationships between these ideas. So, these are forms of structuring, and it’s different for every person as to what is most useful for them and the way in which they think.

And some people like putting things in a linear document but we’re trying to move beyond linear. So, how do we draw connections between things? And I think, often, just being able to sketch things on pieces of paper, write down ideas on a piece of paper, draw lines between them as to what the relationships between those ideas are, and then you can start to literally build a picture of an area of expertise, of what it is you’re looking at.

Pete Mockaitis
Okay. And now let’s hear about filtering.

Ross Dawson
The filtering requires, first of all, understanding what information sources you’re going to go to. And this is not just going directly immediately. You might be using feeds, or you might be using aggregators, or you might be using different tools, but it’s building more and more this discernment of what it is that serves your purpose. So, clarity on your purpose, being able to guide that, and what it is that you need to discard.

And more and more, this is around being able to make sure that we are not succumbing to our confirmation bias, that we are not just looking for things that affirm what we want to know, but we are looking for things that complement our knowledge. So, one of the, I suppose, ways of shifting our thinking is to say, rather than being certain about things, whether that be in politics, or society, or in our area of expertise, is to start attributing probabilities to things.

So, we can say, “I think it is 90% likely, or 60% likely, that this is the case,” and then you can start to look for evidence that either increases or decreases the probability of you being right. So, there is a study of super forecasters, these people that are very good at predicting the future, and they have this implicit way of thinking about the future, or thinking about what it is they know as a probability. They’re never 100% certain on anything, because you can’t be.

But what you can do is to say, “I believe this. This is what I understand. This is the probability I attribute to that,” and then being able to look for evidence that will make your assessment that more accurate. So, this is a way of being able to actually go to the most surprising information to you and assessing that, and whether that’s valid so that you can then start to incorporate that into your mental models, or your ways of thinking, or your hypothesis around, for example, what will be a successful business.

Pete Mockaitis
Okay. And then, I’m curious, when it comes to arriving at what sources you think are winners versus ought not to be delved into, are there any core criteria or questions that really helps separate the wheat from the chaff?

Ross Dawson
So, it’s context. So, I frame this as, first of all, thinking about yourself. So, what is it that you want to be true, for example? Or, what is it you’re looking for? Or, what are your ideas already around this? You need to be thinking about yourself first, in a way. Second is the source, and you say, “Well, is this generally reputable, to generally other people consider this to be worthy? How much research did they do?” And being able to assess.

And no source is completely accurate. The most credentialed scientific journal in the world, Nature, has had 50 retractions in the last 10 years of things where they published it, and then they say, “Oh, actually, no, that’s not right. Ignore it.” And so, we can go to the most reputable sources and then we can’t actually be completely confident. There are certain sources where you can say, “Well, okay, there’s not much credibility,” but it doesn’t mean that any source is completely off the table either, but we need to have an assessment of that.

And the third one is actually looking at any specific piece of content, one of the most important things to do is to go back to its sources in whatever way to be able to corroborate that, “Is there anything which would suggest this was also true?” And it’s incredible, when you skirt into practice of going back to original sources for what it is you read, how often it is distorted or, in some case, a complete misrepresentation of what it is it says to be reporting on, or simply just misleading.

So, the single best practice is not to take anything at face value, but to then go back, and, of course, only if it’s important enough to you to warrant that, to go back and to do your research, to delve back, to say, “Well, let’s see, where does this actually come from and how do I assess that?” So, I think this requires a curiosity.

Yes, you are trying to say, “Yes, this is a more likely to be true source, more or less likely to be a true source,” concentrate on the ones which are more reputable, of course, but also to take everything with a grain of salt, and to dig back and to build your own reference point just what you believe is true, and be able to find the evidence you can to support that.

Pete Mockaitis
Okay. Well, now, could you give us any top do’s and don’ts in the zones of attention and synthesis?

Ross Dawson
So, attention, there are six modes that I identify in my book. So, the first, which we discussed, is scanning, so just looking across existing news sources. Second is assimilating, where we assimilate, and we say, “This is worth spending time on.” It could be a book, it could be an article which you identified, and just rather than being distracted, you spend time and you take that into your body of knowledge.

Seeking for knowledge, explore, and I think it’s important to spend time where you’re deliberately trying to find things you would never normally find. Deep diving, which we discussed from the outset, that way of just spending focused time for a period of time. And the critical one, and one of the most ignored and most important really of the attention modes, is regenerating, which means stop doing, taking in information. And going out in nature is the most powerful way to do that.

It doesn’t need to be a forest. It can be a single tree in a park or whatever it may be. Just getting out in nature is a form of regenerating our attention. So, the best practices, the time box, let’s say, “This is the time I’ll spend on this. This is when I’ll do it. This is the time I’ll spend on that, and I’ll do that.” And to make sure that you’re spending your time deep diving each day, you’re spending time scanning each day, you’re spending your time assimilating each day, and you are spending time regenerating each day.

And the don’t is simply just to go from one thing to another all the time, just continually distracted by the next thing, “Oh, I should be doing that. Oh, I should be doing that. Oh, I might do this instead,” and you never get to a fraction of what you could achieve otherwise.

In terms of synthesis, it really is about getting to a state of mind where you can pull all of the things which you’re exposed to into understanding, into knowledge, into something where you have insights that other people don’t. And that requires this going between the intense focus but also the breath, giving your mind the space in which it can piece together all of the different elements in order to build that understanding.

So, in my book, I describe some of the different ways in which we can get to the state of mind where insights happen, where we can synthesize the ideas, where can come up with insights. And I suppose the don’t on that thing is simply just to burrow down all the time and not give our mind the space which it needs to be able to do what humans are incredibly good at, uniquely good at, is to pull together, connect the dots, and make sense of the whole.

Pete Mockaitis
Okay. Well, Ross, tell me, any final thoughts before we shift gears and hear about some of your favorite things?

Ross Dawson
Simply that this is the foundational capability for success today, is this ability to deal well with information and create value with it. And I think that anybody, whether you’re a beginner, as it were, or an expert, everyone can get better on it. And I just believe that we can all and should be spending time trying to get better at our information capabilities because that’s what will drive our abilities to create what it is we want in our lives.

Pete Mockaitis
All right. Well, now, could you share a favorite quote, something you find inspiring?

Ross Dawson
So, one of my very favorite quotes is from James Carse, and it is “Finite players play within boundaries; infinite players play with boundaries.” And it’s from his book Finite and Infinite Games, and that’s so many things. People are so much stuck in their boundaries, and so we need to play with the boundaries of our life and work.

Pete Mockaitis
All right. And could you share a favorite study or experiment or bit of research?

Ross Dawson
One of my favorite bits of research which studied normal people and then meditators, and they put on a metronome, and the metronome started ticking. And for normal people, the first tick, they had this strong brain response, and then, quickly, it went down and they just didn’t notice it anymore. The Zen meditators, the first tick, they noticed. The second tick, they noticed it, and they keep on noticing it. They are continually seeing the world afresh. They are not becoming habituated to it as almost all of us do. So, this shows that we can continue to see the world afresh even as it stays the same, or seems to stay the same.

Pete Mockaitis
Okay. And a favorite book?

Ross Dawson
One of my favorite books I’ve read recently is The Beginning of Infinity by David Deutsch, pointing to the infinite potential we have as the human race.

Pete Mockaitis
All right. And a favorite tool, something you use to be awesome at your job?

Ross Dawson
Favorite tool, well, just in terms of information access, Techmeme is just one way, one place where I can just quickly get on top of all of the important technology news of the day. So, just a quick, easy, and simple tool, and makes me informed in that area.

Pete Mockaitis
All right. And a habit?

Ross Dawson
The habit which I am developing more and more is when I feel like a break, is doing one of two things. One is picking up my guitar, and the other is rather than browsing through things, is turning to a book just to read for a few minutes, and then turn back.

Pete Mockaitis
And is there a key nugget you share that really seems to connect and resonate with folks; they Kindle book highlight it and retweet it and such?

Ross Dawson
Simply that we have to believe that we can create a better future in order to be able to create it. And I think a lot of people are very negative today. There’s a lot of negative news reported, people getting some poor states of mind, but I think the first thing is we need to believe that a better future is possible. And it doesn’t matter whether we think that’s highly probable or not very probable at all, as long as we believe it is possible to create a better future, that gives us the foundation to say, “Well, what is it that I can do in order to be able to create that?”

So, I think that’s, in a way, the foundation of my work, and I think it’s a lot of what resonates with people is this starting with this potential, this belief that we can create something better to drive the action, which means that we can work towards that.

Pete Mockaitis
All right. And if folks want to learn more or get in touch, where would you point them?

Ross Dawson
For my work, in general, RossDawson.com but for the book, ThrivingOnOverload.com. There’s a wealth of resources there, there’s free parts of the book, the exercises, the introduction, there’s the overload course, there’s a podcast, there’s a whole set of resources. So, ThrivingOnOverload.com is a wonderful place for those people who want to go further on this journey.

Pete Mockaitis
Okay. And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

820: How to Embrace Tensions for Better Decision-Making with Marianne Lewis

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Marianne Lewis shows how to turn tensions into opportunities for growth.

You’ll Learn:

  1. Why to never ask yourself “Should I…?” 
  2. How to find and benefit from the yin and yang of everything
  3. The three steps for better decision-making 

About Marianne

Marianne W. Lewis is dean and professor of management at the Lindner College of Business, University of Cincinnati. She previously served as dean of Cass (recently renamed Bayes) Business School at City, University of London, and as a Fulbright scholar. A thought leader in organizational paradoxes, she explores tensions and competing demands surrounding leadership and innovation.

Lewis has been recognized among the world’s most-cited researchers in her field (Web of Science) and received the Paper of the Year award (2000) and Decade Award (2021) from the Academy of Management Review. She enjoys her three children and two grandchildren from her home base in Cincinnati. 

Resources Mentioned

Marianne Lewis Interview Transcript

Pete Mockaitis
Marianne, welcome to How to be Awesome at Your Job.

Marianne Lewis
Oh, thank you. It’s a pleasure to be here.

Pete Mockaitis
Well, I’m excited to dig into your wisdom. We’re talking about Both/And Thinking: Embracing Creative Tensions to Solve Your Toughest Problems. I like so much those words. So, can you kick us off with maybe a particularly surprising or counterintuitive discovery you’ve made about problem-solving from all of your research and teaching here?

Marianne Lewis
Pete, I’ve been studying tensions, competing demands, that tug-of-war we feel in our hearts, whether it’s dealing with strategy, dealing with our lives, dealing with teams, for about 25 years. And I think the big aha and the reason I spent two-plus decades doing this was early in my career when I realized that our default is to this either/or thinking, that we get into this challenge, and we say, “Geez, do I spend my energy on work or life? Do I think about my performing and hitting my current targets or do I need to step back and learn and look around?”

And in this either/or approach, we weigh the pros and cons of these two sides and we make a choice and we think we can move on. Sometimes that can work if these are really simplistic issues but most times, either/or thinking is really limiting. It’s, “Are we really limited to only two?” Or, worse, when you start to kind of play that out, you go down this rabbit hole of saying, “Well, wait a minute, if I put all my energy into hitting my current targets, that would be great. I would excel, I would have lots to show on my resume, I would’ve proven my worth. But then life could change around me and I wouldn’t be ready. I’d be flatfooted.”

“But if all I did was…” So, let’s go to the other one, “If I really focus on learning, and I’m in higher-ed and I love learning, but if that was all I did, would I really make an impact? Would I make sure I’m applying what I’m learning in process?” And so, you get into this, you get stuck because what you really need is you need both. And so, what my work originally kind of focused on and the aha was we’re limited in our thinking, in our default. The good news is there’s a better way.

Pete Mockaitis
Okay. Well, that is good news. And so, if that is our default, I imagine it’d be quite possible that we’re doing it and we don’t even notice that we’re doing it. That’s what often happens with defaults.

Marianne Lewis
That it’s really automatic.

Pete Mockaitis
So, could you maybe give us a few rapid-fire examples to shake us out of it a little bit? It’s like, “Here’s what I mean by both/and versus either/or, and just notice that there might be more to things than first meets the eye.”

Marianne Lewis
Yeah, I’ll give you a classic example. We talked to people who’ll say, “Boy, I’m not crazy about the work I’m doing right now. So, do I stay or do I go?” And you’re kind of seeing a little clash as you’re thinking about that. But, again, you don’t really have to decide black and white, “Do I stay or do I leave this job?” You could also say, the both/and approach is, “Well, what do I like about what I do? What do I not like about what I do? Are there ways that I could either, personally and/or with my supervisor, talk about I need more of this and less of this? And how do I have those kinds of conversations?”

Or, vice versa, if I say, “Boy, what I don’t have this in job is what I’m starting to realize is what I truly want in life.” Well, it’s not just then going. It’s getting much sharper about what you want. If not, you’ll be in this grass-is-always-greener. You’ll get there and go, “How did I get…? Wait, this isn’t it either.”
And it’s kind of a constant flipping.

So, to us, both/and is about really diving into both sides of the equation, and saying, “At its best, what does each side bring? And at its worst, if that was all I did, what’s the problem there?” Because it’s through that kind of thinking you realize, “Okay, I could get more creative here.” And now it’s not a stay or go. It’s, “Let’s really dig into what do I want in my work.”

So, I use that example, Pete, because I think we’ve had, in some ways, kind of a global existential crisis during the pandemic. We’ve got a lot of people thinking, “Is this really what I want to be doing?” and questioning, and sometimes questioning in two simplified a way of, “Do I just leave?” you know, the Great Resignation. And then you find, I mean, we’re seeing this already in research that the Great Resignation has a lot of people not any happier in their second one because they haven’t thought through that fully what they want and what they don’t.

Pete Mockaitis
Well, thank you, that’s powerful, Marianne. And I was just about to challenge a little bit in terms of, “Well, ultimately, aren’t you either staying or going?” I mean, you could, of course, optimize, and finetune, and change, and have some good conversations about how to improve where you are, although that’s sort of a subset, I would say, if we’re going to nitpick about definitions of staying. But I guess what you’re putting forward here is, just by framing it that way, you’re missing out.

Marianne Lewis
Yeah, I think framing, that’s what…Wendy Smith is my co-author in the book and long-time research colleague. We think framing is hugely important, and it starts with really both/and thinking, starts with changing the kinds of questions we ask. That classic either/or question starts with, typically, a word like “do,” “Do I…?” “Do I stay or go?” versus a more typical both/and question that starts with “how,” “How would I make the most of what I like and where I am? And what am I missing? And how would I find a new combination?” because there are lots of combinations possible.

And you’re right, it still could sound like stay or go, but let me give you a couple of examples because Wendy and I worked with a variety of people who have gone through this one. It could also decide, “Well, maybe what I’m going to do is I’m going to stay for now, and I’m going to build a three- to six-month plan so that leaving means a much better view of what do I really need. And how do I leave in a way that doesn’t leave my team in a lurch or feel like I’ve been disloyal?”

If you unpack that stay-or-go challenge, you find that there are lots of other challenges within it that are going to make us lean towards one side or the other, and we’re going to have to deal with those if we’re going to really make a decision that has some lasting power and some creativity to it, for that matter.

Pete Mockaitis
That’s really powerful because I think we could really feel the urgency and the, well, tension associated with, “Oh, well, I need to reach a decision, and, ultimately, these are the only categories that we could fall into.” And, yet, by taking that pathway of either/or, we miss out on surfacing what’s really most important, what are some cool options beyond that, and then how do we get there.

So, I really like that notion of just check yourself if you’re asking a question “Do I…?” as opposed to “How…” that puts you down some different pathway. So, can you expand upon those in terms of what are some either/or-style questions or things to be on the lookout for and their both/and counterparts?

Marianne Lewis
Well, I’ll give you an interesting version of this. Sometimes people can ask, “Do I focus on the financial benefits of my job or the work that I’m doing, like grow the money, grow the profit, grow the margins, or do I focus on the social responsibility, my impact, how do I better the world?” Do you have a business school? I can’t stand that question because they should be synergistic and we’ve seen amazing leaders learn how to do both. But they changed that question to, “How can I grow my profits through social responsibility?”

That was a question posed by Paul Polman when he was turning around Unilever, and his goals were to double the profits while having their environmental footprint, and people said, “You’re crazy. That’s not how it works. The bigger you are the more damage you do.” And he said, “No, we touch two billion consumers a day at Unilever. We can’t afford that.”

And I actually just had an executive in my office who ran Gerber clothing, for children’s clothes, and he said, “Clothing is notorious for being unsustainable. We throw away billions of pounds, let alone tons of wasted clothing.” Unilever and Paul, who’s such a both/and thinker we study and write about him in the book, but this leader was talking about at Gerber, too, is you start to realize, actually, by being sustainable, you reduce wastes, you’re more efficient. By the way, that means you reduce costs which increases profit.

And, by being socially responsible, you have a whole host of customers who say, “I have choices,” and you will have customers say, “I’m going to choose, I would rather choose a firm that’s sustainable.” And, by the way, as we’ve seen from lots of these same firms, we actually have investors who will eventually, and this is happening increasingly, say, “I actually want to invest in more sustainable firms.”

And so, here are these questions of, “Do I focus on the financial and my social responsibilities?” and maybe not as quickly as we like, but it is becoming a moot point. The leaders of Toyota were saying this with quality and costs. In the ‘80s, they practically put the American auto manufacturers out of business because we were sitting there, going, “Oh, no, it doesn’t work that way. The higher the quality, the higher the costs.” And they said, “No, the higher the quality, the lower the rework, the more efficient,” right? And then you see Toyota and Honda take off.

I just gave you two strategic examples but we ask those similar types of questions in our lives, both in our work and our decisions about the work that we do in our own values. And I’d like us to open our minds a bit and reframe, as you said.

Pete Mockaitis
Okay. Well, when it comes to our minds, you’ve got an interesting term – the paradox mindset. What is that and how can it help us?

Marianne Lewis
Yeah, a paradox mindset. So, when we think about either/or, we think about tradeoffs. Picture, like, a scale, and you’re doing this weighing between the sides. When we think about a both/and thinking, we put those opposing decisions into a Yin-Yang, which is such a beautiful symbol of paradox. So, if you can picture the Yin-Yang, you have kind of a black-and-white sliver, and so you’ve got two sides to this. But there’s also this dynamic flow between them where you see that they actually define each other. It’s only together that you see this whole of the circle.

And if you can kind of picture the Yin-Yang in your mind, as you move higher into, say, the dark, there’s actually a pin prick of white. And the view is, as you get higher and higher into one side, you actually feel more pull in this ebb and flow into the other. This is night and day. It’s love and hate. It’s trust and distrust, self and other. I’m being more philosophical here, but those play into the way we think about challenges.

Why is a financial responsibility and social responsibility opposites on a scale versus Yin and Yang? And how could they work together more synergistically? So, that was a way of sharing. The reason we use the term paradox is to start to change our views from a tradeoff to this Yin-Yang mindset. And a paradox mindset means two things, we have two dimensions, and we’ve measured this now over thousands of people. It’s in multiple languages.

We started in three. We started in Chinese, Israeli, and then in the US, an American. I guess I did geography. This is where we did the study. But what we found is there are two dimensions. One is some people are more sensitized to see and feel tensions. Now, that could be because you’re in a particularly stressful conflict-laden time so there are a lot of tensions around you, and it can be you’re somebody like me who sees them in their sleep. I pick them out very quickly. And the more you practice paradox thinking, actually, the more sensitized you become regardless of your work.

So, there’s the, “How much do you experience and see tensions.” And then the other side is, “How much, when you see them, do you see tensions as just a problem to either ignore, work through, and move quickly? Or, do you see them as an opportunity that in that tension there is this creative friction and an opportunity to learn, innovate, grow?”

What we found is people who have this paradox mindset, they see tensions as opportunities, they think about them as this Yin-Yang, are much more likely, according to their supervisors, to be more productive and more creative, and, according to themselves, to be more happy, to be more satisfied. So, what we’re finding with the paradox mindset is, especially if you’re dealing with tensions, that ability to move into them, seeing opportunity, benefits for learning, and working toward a both/and, will pay off in really powerful ways for you as an individual and probably for your organization given those benefits.

Pete Mockaitis
Well, could you give us several examples of individuals who, they saw some tensions and then they considered them with a both/and perspective, or paradox mindset, and cool things emerged as a result?

Marianne Lewis
Yeah, I’ll give you a few of some leaders that I’ve enjoyed studying over the years. Muhtar Kent is fascinating. He was the CEO and chairman of Coca-Cola, which is an interesting example because one of the tensions we see quite a bit is global versus local. And you could think about this also as kind of centralized/decentralized is another way to think about it. But Coca-Cola is actually the best-known image in the world, even better than Mickey Mouse. People just know the red can anywhere.

So, you have this huge global reach and scale. Scale provides you incredible opportunities, really well-coordinated impact, reach, etc., and you’re talking about Coca-Cola. You’re talking about something you drink, taste, as differentiated locally as imaginable. And so, Coca-Cola, and particularly Muhtar, would always say, “Look, we have to be the best-known global brand, and leverage that scale, and have this tremendous value appreciation tapping into those local differences as possible. We have to be both if we are truly going to be a global brand.”

And if you go to the Coca-Cola museum in Atlanta, you will see they have lots of variations based on local differentiation of taste. So, even as a global brand, it also has local differences. Even that it has a global reach and scale of like the Walmarts and Amazons of the world, they also are really good at tapping into very local supply chains, retailers, because, depending on where you’re going, sometimes big boxes, let alone Amazon, they’re not there. So, that’s just a different kind of view of the global/local.

Another one I would share is a fun discussion I’ve had recently with Rocketbook. We wrote about it in Fast Company. But Rocketbook is dealing, like everybody else, with hybrid work, what do you do home versus away. And one of the reasons we started working on this with Fast Company, and we ended up going at Rocketbook, is that people might think that hybrid work is a win-win, but most often, it’s actually experienced as a lose-lose because you’ve lost the boundaries between work and home.

So, you go into work and you’re sitting on Zoom calls. That doesn’t exactly feel like a value to me. You’ve just on the commute and everything else. Or, you’re at home and you still got all of life and home, family, other things distracting and challenge around you, and you’re feeling like you’re really not at your best in either location.

So, talking with Jake and Joe, the co-founders of Rocketbook, Rocketbook does sustainable notebooks. They do reusable notebooks. It’s a really cool technology. I highly recommend it. They said, “Pre-pandemic, we were already hybrid.” And I said, “Well, why?” And they said, “Because we believe in the power of work-at-home, or work-non-office, as deep work, that work that you really need solitude, focus.” And they have a lot of designers, engineers, and they said, “We want them to have that opportunity to be at their best selves.”

And, on the other hand, we knew, and we still believe this wholly, that the best creativity will always happen around a table with a whiteboard, with all these, and that takes in the office. And so, because they had already believed in the power of hybrid work, they came out of COVID really strong because they kind of perfected why you come in, when you come in, how you come in, and when you would work at home.

And they learned this creative way to be both/and, to think about those synergies in ways that made people keep the differences, value separation, they used lots of cool ways to use technologies that we all use, like Outlook and other platforms, to respect people’s deep-work time and, while they’re at home, also have times that you say, “Now, I’m going grocery shopping.” They really got creative in how they use both.

But I think that’s a very different way than a lot of firms saying, “Is it three days or two days?” There’s a very basic approach to hybrid that isn’t how are you deeply making the most of the time together and the time apart. So, I would note those two because I love both options, and I think we’ve lived them in our lives, not just at an organization level.

Pete Mockaitis
Intriguing. So, the Rocketbook parameters then, for whether you work from home or from the office on a given day, is not just blanket two days, three days, Mondays, Tuesdays, Wednesdays, but rather, “What is the nature of what you’re working on, and then, please, freely come into the office so we can do that better, or stay at home so you can do that better?”

Marianne Lewis
Yeah. And the other way I would say that, Pete, is we talk about in the book one of the key assumptions to moving to the both/and mindset is moving from thinking about your resources as scarce to abundant, and that an abundant mindset matters. And so, it was interesting talking to the folks at Rocketbook because time is a classic resource.

And so, you could say, “Well, yeah, but there are only 24 hours in the day, or eight hours in a workday,” whatever. And what Jake and Joe would say is, “Yeah, but every hour isn’t created equally.” Like, I’m a morning person, I like it super early, okay, then I’m going to work from 5:00 till 10:00. It’s going to be my deep-work time. I don’t want to be bothered from 5:00 till 10:00. But I want you to know I’m on it. And, by the way, I’m then going to take a break because I’m going to be really low, and then I’m going to come in for a few hours.

And so, they figured out ways to make that, and then, at the same time, they have people who are super late-night owls and they’ll even have office times, like at 11:00 o’clock. But my point with the abundance mindset is it’s not that they’re using more time or less time. They’re using time better, and they’re using it in a way, to your point about, yes, it’s the home versus work, but it’s also time that they’re playing with, to say, “What is the kind of work you’re trying to do? When are you at your best?” versus, “When do we get people together, whether it’s on Zoom or in the office?”

It’s a more nuanced approach than the, “Is it three days or two days? And, by the way, is it 8:00 to 5:00?” And I like that. I think that really is empowering to people.

Pete Mockaitis
That’s cool. That’s cool. Well, tell me, Marianne, anything else you want to make sure to mention, any top do’s or don’ts about both/and thinking or embracing creative tensions we should cover before we hear about some of your favorite things?

Marianne Lewis
I think I would just, as a key takeaway, and, obviously you can do dive deeper in the book, we talk about kind of three key steps. You need to change the question you ask from this either/or to an “and,” “How do I accommodate my opposing, my competing demands?” The second piece is, instead of just weighing the pros and cons, and we say, “You need to separate and connect. You need to pull apart that Yin-Yang, think about really what you value on both sides, and then think about how you’re going to hold it together with a higher vision and some key guides.”

And then the third piece is you start to change the way you think about your solutions. Because, again, with either/or, the end result is a single choice. But with a paradox, when you’re dealing with these kinds of tensions, they don’t really go away. I might decide today between work and home, but I’ll have to decide again tomorrow, or I may have to decide between, “Am I really going to focus on current targets or learning for the future? But I’ll have to make that decision again.”

So, we think about one of the most kind of key decision-making modes that we see of people who are really good at both/and thinking, is think about it as tight-rope walking. You’re continuing to move forward but you’re making these kinds of micro decisions on an ongoing basis between challenges, between work or home, between social and financial, between learning and performing, between self and others, where your focus is.

But you don’t let yourself lean so far to one side that you fall because that’s really hard to get back up, and it takes some intention to know that you are holding them together. You need both elements and you’re moving forward. So, I do think that’s key to think about kind of three steps, in some ways.

Pete Mockaitis
All right. Thank you. Well, now could you share with us a favorite quote, something you find inspiring?

Marianne Lewis
A quote that Wendy and I often return to was by Paul Watzlawick and his colleagues at Stanford, they’re psychologists. And the quote is, “The problem is not the problem. The problem is the way we think about the problem.” And, to me, that’s key to this decision-making. It’s actually the way we thought about the problem has limited our solutions.

Pete Mockaitis
Okay. And could you share a favorite study or experiment or bit of research?

Marianne Lewis
I think my favorite study was by Rothenberg. It was in 1979, I think, and Rothenberg was studying creative geniuses. He was studying Picasso, Mozart, Einstein, Virginia Woolf, and he was reading all their journals and different things. And what he’s finding was that the genius of these creative individuals came from valuing tensions, seeing them as opportunities; Picasso seeing light and dark; Einstein seeing things in movement and in rest; Virginia Woolf, it was life and death; Mozart was harmony and discord. He called it Janusian Thinking.

That was Rothenberg’s kind of finding. Janus was this two-faced god, looking in two directions simultaneously. But his point was that these creative geniuses found real value in the tensions. They sought conflicts for their greatest works, and I think that is a huge takeaway of instead of viewing these as problems, as in things that we want to avoid, work through as fast as possible, we should seek them out because they have potential, fodder, fuel, for really great creative opportunities.

Pete Mockaitis
Okay. And a favorite book?

Marianne Lewis
I think my favorite book is probably The Tao of Physics by Frank Capra. This is just a fascinating book. It goes back to Einstein. I really think Einstein and all the individuals that developed quantum physics were in this paradox mindset in a way that was really cool. But The Tao of Physics basically talked about how they turn to Taoism and insights from the Yin-Yang and ancient philosophy because they were literally thinking, “I’m going to go crazy because I don’t understand how something can be a particle and a wave. Which one is it? How can something be in motion or at rest?”

It was just one of those books. I kind of like a book that makes my head hurt sometimes because it’s really straining, and, at the same time, it’s kind of beautiful. And you realize, “Well, yeah, it was rocket science, it was quantum physics.” They went through some very simple powerful philosophy to get through it, keep themselves sane, but also get to a solution that was really remarkable with quantum physics.

Pete Mockaitis
All right. And a favorite tool, something you use to be awesome at your job?

Marianne Lewis
Probably my favorite tool is the Polarity Map by Barry Johnson. It’s this really cool, simple approach to when you have a tension, a conflict, competing demands. You put it on this two-by-two grid. And on the one side, you put the highs and lows of that side, like, say, “I love a leadership. I’m a leader and I love to be innovative but I also like to be really disciplined.” Well, at your best, what does your innovative self look like? At its worst, if that’s all you did, like you’re really risky. And then, at the same time, you do, “At my disciplined best, and my disciplined worst, am I a real pain?”

And the point of Barry’s Polarity Map is, “How do you stay in the top two quadrants? How do you let the tight-rope walking? You’re probably not disciplined and innovative at the same time but you’re iterating between the two. And how do you avoid going down into the depths of the negative?” But I love the Polarity Map. It’s just a great tool.

Pete Mockaitis
And a favorite habit?

Marianne Lewis
I’m not always good at this but I think meditation is a really powerful habit because I think our minds can get in our way, and meditation is just a powerful practice to just kind of clear out the mess and have some calm so that we might not jump so automatically to a place that isn’t always in our best interest, and listen to the voices that might be taking us the wrong direction in our heads.

Pete Mockaitis
Okay. And is there a key nugget you share that really seems to connect and resonate with folks; they quote it back to you often?

Marianne Lewis
I think a key nugget is probably just the power of a paradox mindset, to say, at our best, let’s not get stuck in these vicious cycles of either/or thinking, which we think of as rabbit holes, wrecking balls, interfere, and really look for more creative lasting solutions. And that’s what I’m hoping our work is doing, taking it out of a more academic realm and thinking more about people’s lives and how do you deal with the tensions because they are human. That is what the world we live in, and it’s natural. But I also think tensions are beneficial.

Pete Mockaitis
And if folks want to learn more or get in touch, where would you point them?

Marianne Lewis
I’d point them to BothAndThinking.net. They can find out more about the work we’ve done in media, more about the book, other places to hear and see us, but, also, there are lots of places you can buy it, and so we just try to put it at one-stop-shop over there.

Pete Mockaitis
All right. And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Marianne Lewis
Boy, I think this is a challenging time. I think a lot of people are stepping back and kind of saying, “What do I want?” I hope people use both/and thinking to make those decisions because I know we can feel we want impact. We want meaning. We also want flexibility and finances. We want a lot of things from our jobs that can feel like they’re pulling in us in opposite directions. I think this is the time to be more creative and think differently about what we really want and need out of our jobs.

Pete Mockaitis
All right. Thank you, Marianne. I wish you much luck and cool results from both/and thinking.

Marianne Lewis
Thank you. I wish you all the best, Pete. Thank you for this podcast.

809: How to Make Wise Decisions using Quantitative Intuition with Paul Magnone

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Paul Magnone reveals how to make smarter decisions by tapping into both data and intuition.

You’ll Learn:

  1. Why you shouldn’t disregard intuition
  2. Why we make terrible decisions—and how to stop
  3. Powerful questions that surface brilliant insights

About Paul

Paul Magnone is Head of Global Strategic Alliances at Google where he is developing a growing ecosystem of partners that will unlock the next generation of business value via the cloud and related technologies. Previously at Deloitte and IBM, he is a systems thinker and business builder focused on understanding where technology is headed and answering what it means for a business. He is an adjunct faculty member at Columbia University.

Resources Mentioned

Paul Magnone Interview Transcript

Pete Mockaitis
Paul, welcome to How to be Awesome at Your Job.

Paul Magnone
Thank you for having me, Pete.

Pete Mockaitis
I’m so excited to dig into your wisdom but, first, I think we need to hear about your time working as a DJ when you were in college.

Paul Magnone
Oh, geez. Well, this was back before CDs were popular. We actually had a record library. So, this was carrier current radio, I didn’t do parties. It was college radio. And it was just being at an engineering school, it was a very liberating evening, whether it was Mondays or Tuesdays, depending on the semester, very liberating evening to go in there and just go into the record library, and do your thing. And it was me and a friend, Jim, who maybe he’ll be listening to this. I’ll tell him to listen in. And he would go and get every Led Zeppelin album, and then he would say, “The rest is up to you.”

So, depending on what was happening on a given week, I would manage the programming, and it was a little David Letterman-ish on the commentary side, but certainly heavy rock and roll, and it certainly scratched an itch in the midst of all the engineering school.

Pete Mockaitis
That’s funny. Well, when you talked about Led Zeppelin, that reminds me, isn’t that like the quintessential DJ thing to say, “Get the Led out”?

Paul Magnone
There you go. Well, you would go and get all the Led Zeppelin and not care about anything else. So, I said, “Do you like anything other than Led Zeppelin?” He said, “Yeah, absolutely, but you handle all that.”

Pete Mockaitis
That’s great. Well, that’s a great system there for decision-making right there, is that he had a system which was Led Zeppelin, and you had to work a little harder with your music decision-making. That’s my forced segue, Paul. How am I doing?

Paul Magnone
They’re pretty good. Pretty good, yeah. So, it was option one was always locked in, and then it was what was the next option, so.

Pete Mockaitis
All right. Well, so you have codified some of your wisdom in the book Decisions Over Decimals: Striking the Balance between Intuition and Information. And, can you tell me, when it comes to this decision-making stuff, do you have a particularly surprising or fascinating discovery that you want to share right off the bat?

Paul Magnone
Yeah, I think why this is intriguing to people, and we’ve spoken to thousands of executives and probably thousands more students as we teach at Columbia University when I say we, first of, it’s myself and Oded Netzer, who’s the Vice Dean of Research at Columbia Business School, and Christopher Frank, who is currently Vice President at AmEx Market Insights, leading the market insights team there. And we’ve come together over the past seven years, and we teach what we have learned.

So, obviously, there’s a heavy dose of theory here, but we’re practitioners, we’re in the trenches. And so, what we reflect back is “What are the practical tools and techniques that lead to better decision-making?” And you start to discover that it’s a hot topic but it makes people anxious. So, we live in a time today when data is exploding and yet it feels invasive and intimidating. So, for a lot of people, data is just not fun. And other people say, “I love data,” and then they kind of fumble the football.

So, in reality, we’re fortunate to have this staggering amount of information at our fingertips and yet we often hear people say, “But I don’t have enough data.” Okay. Well, maybe you’re not putting things in perspective. And, ultimately, with all this information and all these things that are flowing by, we consistently see poor decision-making and wasted investment, wasted resources at companies, wasted just time and effort and so forth, and we took a step back and said, “Well, why is this? Is it caused by fear, or overconfidence, or bias?”

And we realized that, with some focus and some of the techniques that we talk about, we can build a tribe of better decision-makers and maybe make a dent on all these wastes. That’s kind of our motivation behind it all.

Pete Mockaitis
All right. Well, that sounds exciting and I’d love to dig into just that. I’m intrigued then, in your subtitle, you got “Striking the Balance between Intuition and Information.” We’ve got boatloads of information. When it comes to intuition, first, could you define it for us and what’s its role here?

Paul Magnone
Yeah, so that’s a great question. And the fact is where you’re constantly challenged by people saying, “So, you’re going to teach me intuition? Don’t you either have it or don’t have it?” And the answer is, “Well, people often have intuition and they’re not listening to it.” And so, when you look at what’s referred to as the theory of learning, there’s competence and complexity. So, you begin, think as a toddler, you don’t know what you don’t know. And, suddenly, you start to put some things together, you start to hear some things, and you start to see patterns, and you start to learn.

And then, as you start to learn, you realize there are things that you don’t know. So, now you’re at the next level. You’re now conscious about your incompetence. And as you progress up this ladder, and there’s multiple steps along the way, you eventually get to the age of…or to the point of a teenage driver, a driver for the first time. You’re now, hopefully, consciously competent, you know what your limitations are, you know what’s happening around you. And by the time you get to be a seasoned driver, you don’t have to think so much when you’re making a choice.

When you’re driving and you’re a seasoned driver, and there’s a snowstorm, you might turn down the radio a little bit because you want less input signal, but you have a sense, and you’re sensing with your fingers what’s happening, you’re sensing all around you, and you might not even sense what’s about to happen but you see up ahead, “Hey, I remember that when I get to a curve like that, in a situation like this, with the weather this way, I should probably do the following.” So, there’s a sense of acumen that builds up over time.

And the fact is, in a business world, we say, “No, no, I just want the data. Just tell me how much it’s snowing. Just tell me the tire pressure.” Really, is that all you need to know? Or, do you really need to sense and respond in real time, and really get a sense for what’s happening? And really terrific leaders talk about the fact that they have a feel for the business. So, let’s take your question and go ask some business leaders, “What do you mean by feel for the business?” They may have different answers, but, ultimately, it’s some level of intuition about their business, how it’s impacted by the world, how their business impacts the world.

And so, this notion of intuition is the companion to all the data that we dive into or that we think we want to dive into. And so, the notion is we have to balance that. So, rather than make a decision based on just data, or based on just gut or intuition, trust your gut – there’s another wonderful top gut by a colleague of ours – what we’re saying is that balanced view is what’s important, and threading that needle, and building the toolkit for yourself so you can balance the data and the human judgment, that’s the path forward.

Pete Mockaitis
That’s beautiful. And I see additional interplay there associated with intuition. We have hordes of data at our disposal. It can be hard to even know what sorts of analyses to run on that, and intuition can serve up fantastic questions for investigation or hypotheses, like, “You know, I have a sense that maybe this is going on. Now, let’s take a look at data to see, in fact, if it is or is not.”

Paul Magnone
Yeah. And we hear a lot about data scientists, and, “Well, I need a data scientist.” To do what? At the end of the day, there’s a set of people that need to come together to drive a decision. There’s the business leader who should be data-driven, who should be paying attention to the data, but not only paying attention to the data. There is the data scientist, there is the data engineer who brings all the data together, but there’s also a data translator. And that person really ensures that what we’re solving for aligns with the business need.

And we also like to talk about a data artist, because, at the end of the day, we need to tell a story, and you need to compel people to action, and doing that requires you to put all of this in some sort of frame that is understandable and digestible. And so, that’s kind of a team that comes together to say, “Listen, yeah, there’s all these components, but how do I compel people to make a choice and how did we make the right choice?”

Pete Mockaitis
A lot of great stuff there. Maybe to tie some of it together and launch us, Paul, could you perhaps give us a cool story or a case study of a professional who did some great work with both intuition and information to come up with some rocking breakthrough decisions?

Paul Magnone
Well, I don’t know if this was a rocking breakthrough decision, but I will tell a personal story about when I was working for, probably at the time, a Fortune 20, maybe Fortune 50 company. You guys can sort out who that is. And we were investigating whether to work with a heavily backed startup in Silicon Valley, and I was charged with doing the due diligence, the business side of the due diligence, and I had a colleague of mine who was leading the technical due diligence.

And after weeks of investigation, we looked and said, “You know, this is, I think, a fascinating company but we’re not sure even after weeks of investigation,” because when we got to some detailed questions, they hid behind non-disclosure agreements and other issues and so forth. And the technical side we felt, “Well, we could probably recreate what they did but maybe there was something compelling here that we didn’t understand, so maybe we’ll take a flyer on that and give it a shot.”

On the business side, they kept on telling us, “You know what, you’re going to have a wildly profitable business if you base your business on our new technology.” Now, in hindsight, there were some signals that got my attention, specifically, they weren’t answering questions in much detail. And then, finally, after pressing them, their business development lead sent me a spreadsheet, and he said, “Look through this, and you can model out how profitable your business will be based on our technology stat.” And I called them back five minutes later, and I said, “Well, either your spreadsheet is broken or your business is broken.”

And I know I took a provocative approach to my comment there, but that was built on the intuition that we were all starting to build up the perspective that there was something that wasn’t quite right. The spreadsheet, let me describe that for a minute. There was a very large Excel, with one cell that I was allowed to put a number in, and this was a business around computing infrastructure, so servers. So, there 10,000 servers in the cell.

And it showed, when you did all the math, it showed a wildly profitable business running 10,000 servers. And he said, “Put in a 100,000, put in a million. You’re a huge company. You’ll just do more.” So, I put in one server because I want to understand at the atomic level…

Pete Mockaitis
Yeah, fixed costs, labor costs, scale.

Paul Magnone
Yeah, what’s granular. One server. Wildly profitable. And I said, “Oh, that’s interesting.” So, I put in zero servers. Wildly profitable. So, either they had some magic or there was something that was wrong. Now, why do I tell this story? At the end of the day, we had data, we had insights, we had spent time with them, but, really, it was that blend as I described before of a lot of information, or seemingly a lot of information, but our intuition telling us, “We’re really not seeing the right information. There’s something they’re not showing us.”

And by pushing on that button right there, it opened up a further discussion. We, ultimately, wound up not doing business with them.

Pete Mockaitis
That’s good. That’s good. So, tell us, how can we become similar Jedi masters, Paul, to get that sense of, “What’s missing? And how do I push on it?” Any key questions or frameworks or tactics that get us to making more good decisions more often?

Paul Magnone
Sure. Sure. So, there are really three fundamental ideas to lean on, I think, behind the book. So, leaders have just an enormous amount of data but we all see it. They’re not making better decisions. So, why is that? So, they’re denouncing the data, or they’re choosing to trust their gut, or they’re spending so much time trying to get a perfect decision. And they think the same data is the new oil so there’s spending as much as they can to build a bigger and better data refinery for that oil.

When, instead, what leads to a great decision is the balance that we’ve been talking about. So, that’s the first thing. Don’t lean in to one side or the other. Focus on that balance. The second thing is you don’t need to be a math whiz to drive great decisions. The smartest person in the room is the person who asks the better question. And that person, that leader, blends information and the intuition and the experience, as we described before, that leads to the better outcomes.

Think about it, you’re in a meeting, and the person who had the factoid, you don’t go up to that person and say, “That was amazing that you had that fact at your fingertips.” But the person that asks the question that nobody expected, that insightful thing that cuts right through, that’s the person you want to go have coffee with, right?

And the third thing is, as humans, we are terrible decision-makers, and, largely because we don’t have our bearings. And so, one way is to really explore what’s happening in the decision and the moment that you make it, and one way to look at it is you’re balancing time, risk, and trust. And if you think about that, “Do I have no time? It’s a crisis, or, do I have a lot of time?” Are you a fireman or are you in Congress? Do you have a lot of time?

Is it a high-risk or a low-risk situation? Are lives at stake? Are billions at stake? Or is it a throwaway decision, and it’s a reversible decision? Some decisions people agonize over and yet they’re reversible. And then the last part, trust, do you trust the data? Do you trust the person that gave you the data? Do you trust the organization that stands behind that data?

So, as you triangulate all those three, that in itself is a framework that should help you make some better decisions. Ultimately, we pull all this together and we refer to all of this as quantitative intuition, which is intentionally an oxymoron because you’re bringing the quant side with the intuitive side. And we define that as the ability to make decisions with incomplete information, and you’re using three techniques: precision questioning, contextual analyses, and the synthesis to see the situation clearly.

Pete Mockaitis
All right. Well, could you perhaps walk us through an example in which we’re applying these principles to an actual decision?

Paul Magnone
Sure. So, let’s talk about a day in the life of one of your listeners.

Pete Mockaitis
All right.

Paul Magnone
Because you love your listeners, of course.

Pete Mockaitis
We sure do.

Paul Magnone
There you go. So, your leader comes in on a Monday or a Tuesday, and says, “How do we react to this headline from the competitor?” Or maybe you’re beginning a planning…yeah, right? I mean, it’d never happen.

Pete Mockaitis
My first question is which headline and which competitor?

Paul Magnone
Yeah, yeah, right. But everybody at this moment is thinking this just happened yesterday. Or, maybe you’re beginning a planning cycle for a new product launch. Or, maybe your business is in decline and you’re trying to decide where to place the resources that are scarce. So, in each case, regardless of your role, if you’re in product or sales or marketing or manufacturing, everybody’s taught like a bias to action, so they start to jump in, “What? Let me go dive in.”

And what you should be doing is defining what problem you’re solving first. So, put that problem in context, “Here, our competitor announced this. Here’s the headline from our competitor. Let’s zero in on that one.” Well, put it in absolute terms, put it in context, absolute terms. Look at it over time and relative to what’s going on elsewhere.

So, the competitor said, “I just sold 100 shovels yesterday.” “That’s awesome. I sold 200 shovels yesterday.” Or, “I sold 200 and the competitor sold 500.” While you’re busy high-fiving that you sold 200 shovels, your competitor is walking all over you. By the way, why did that happen? Well, there was a freak snowstorm in July. Okay, so were you going to base your business and change your strategy based on an anomaly? No.

So, what are the assumptions that are going into that decision? Do you believe those assumptions? Is that true? And is it maturely important to your business or is it a blip? These are kinds of the things that you need to think about, those parameters, so we can go through any number of examples. But I think your listeners are probably living this every day.

And through this all, they need to synthesize all these different datapoints. So, we preach a lot about synthesizing. What happens most often is people are in meetings and you’re summarizing what you already know, or you’re summarizing to get to a point that you think the boss has already said because they’ve already anchored you somehow with one of their early comments. So, synthesize the datapoints and then go to the data after that. Then go to the data, right?

So, start with those first principles, “What is it that we really know? What problem are we solving? Do we really want to grow a product line, or are we stable, or are we under attack?” And then make a recommendation after you’ve set the frame for the problem, and then interrogated the data. So, this is what we refer to as being a fierce data interrogator, not a random data interrogator.

So, ultimately, we think of this as jazz. It’s not waterfall because a lot of the behaviors in these different disciplines – products, sales, marketing, manufacturing – tends to be rigid, it tends to be a waterfall, and they don’t read and react – to borrow a term from sports – they don’t read and react in the moment. And, ultimately, it needs to be jazzed.

You know the theme of your business, and you may go often at different directions but you’ll come back, and the drummer is going to go and do something, and, hopefully, it fits in the context, and you’re going to come back. So, it’s jazz. Go to the question, go to the technique that’s valuable in that moment, and don’t just rely on kind of the rigid thinking.

Pete Mockaitis
So, when you talk about jazz, I’m imagining it like, for marketing, “We launched a campaign, and then we see how it did, and then we interrogated, in terms of we get some contexts. Like, how well is that campaign performing based on general benchmarks, or historical other campaigns, or competitors, if we can know that?”

And then you say, “Oh, wow, that’s awesome. Let’s double down the budget in this channel with this messaging to this segment,” or, “Uh-oh, that’s very disappointing. Let’s perhaps reallocate budget in a different vibe.” So, it’s like jazz in that something happens and we respond in flow to it as oppose to, “Nope, it says in this quarter we’re spending $50,000 on Facebook ads, and that’s what we’re doing.”

Paul Magnone
Right, “Let’s go to the spreadsheet and say what I’m permitted to do.” That’s not thinking. That’s reacting. And that same marketing lead, marketing team, what you described is Monday morning. Wednesday morning, they have a different headline, and their competitor just announced something that’s shocking. So, in one scenario, they’re being proactive on a product launch and seeing the results, and then doubling down, as you said. In another scenario, they’re suddenly under attack, and that was all in the same week. So, how do you make decisions in those different situations, right?

Pete Mockaitis
All right. And so, I want to talk a little bit about your phrase quantitative intuition. It sounds like you described a bit of that. But how do we get better at that in terms of this number feels high, wrong, low, crazy? Like, how do we know that or get there?

Paul Magnone
Right. Well, we try to not say crazy but, yeah, it’s really those three dimensions that I talked about at the end there. It’s precision questioning, contextual analyses, and syntheses. So, let’s break all those down. Precision questioning, as I said before, we tend to kind of react to the factoids and not take a step back, and say, “Well, listen, let’s put all this in context. What are the first principles? What are the fundamentals of our company? Am I reacting to an anomaly? Or, am I really making a decision based on a thought-out element?”

And precision questioning is really a technique where you will ask, “You know what, I want to understand what to do with a millennial audience.” “Great. Could you say more?” “Well, I want to understand how to sell this product to a millennial audience.” “Any millennial audience?” “I want to understand how to sell this product to a millennial audience that has this kind of budget.” You’re asking more granular questions until you get to an atomic level that people say, “Oh, what you’re really looking for is this well-defined decision, this well-defined task.”

And most often, we don’t spend the time to get granular. And one of the techniques that we talk about to do that is, we call it an IWIK framework, “I wish I knew,” and just the nature of that question implies permission, “What is it you want to know? What is it you know about a millennial?” So, spending the time, it requires a little patience. But spending the time upfront to do that precision questioning to narrow and get clear about it, to get concise about the thought, is critically important. That’s the first piece for precision questioning.

The second piece is the contextual analyses. So, as I said before, look at everything in context. What is the situation in absolute terms? What is it over time? What is it relative to what else is going on with my competitors, with other divisions in my company? And as you look at that context, you’ll come to the realization, “This is important to my business or not. Is this a blip? Or, this requires us to really consider a change to our strategy.”

And then the last piece is the syntheses, which almost no one does. Everyone summarizes and gives you every piece of information. Some of this is pride, “Look, I spent three weeks putting together 47 incredible spreadsheets and reports.” “That’s awesome. Put that in the appendix and tell me what you’ve learned from that. Tell me what’s surprising you in that. Tell me what is crystallized that you, as a smart person that we hired into this company, believe based on what you’ve just interrogated.”

Most of the time, people bring that to their leader, and say, “Look at all this work that I’ve done.” And the way we like to think of syntheses is everybody is the director of a movie. If you look at a movie, maybe an hour and a half, two hours, there’s what? Hundreds of hours on the cutting room floor because you don’t have to tell every detail. You can put all that in an appendix, but focus on what’s critical and what matters.

In journalism, they talk about not burying the lead, being very critical about what is the most important aspect. And we get away from that in business. So, you pull all that together and that’s what we refer to as quantitative intuition. And so, we talk about a set of techniques to go through that.

Pete Mockaitis
Beautiful. Thank you. Well, I’d love to hear, do you have some super favorite questions that you’ve relied upon and you find super valuable in many different decision-making contexts?

Paul Magnone
So, yeah, it’s a great question. And we’ve talked before about putting things in context, which I think is one incredible pillar. But one of my favorite questions is a very short question, which is, “What surprised you?” Real simple. And the fact is if anyone has ever gone to a party, what happens when you leave the party? The people that you’re at the party with don’t talk about, well, yes, they had enough drinks, they had enough food, but that’s not the conversation. It’s what surprised them about the interaction between people, what surprised them about a particular situation.

So, in our personal life, we make the space and we give ourselves permission to have a conversation about surprise. But in the business world, no, no, no, the boss wants to talk about this, “I have a sneaking suspicion that we should be interrogating this other dimension but I’m not even going to bring it up.”

So, if you make the space for surprise, if you have the courage, or, as a business leader, you ensure that your team feels empowered to say, “Yup, we’re going to do the analyses that was asked for, but I’m going to make the space for surprise, and say this is an outlier that doesn’t make sense. This is an outlier that I think we should interrogate more. Or, really, we’re investigating the wrong thing, and the surprising thing is here’s a critical issue.” So, be open to that surprise and make the space for that conversation.

Pete Mockaitis
I love that question. Please, Paul, more like that.

Paul Magnone
Yeah, we talk about IWIKs, “I wish I knew,” that’s probably one of the most critical techniques that we talk about. And, really, as I said before, you’re going back and forth between these various techniques, and you may find something in the surprise. This gets back to the jazz. When you have that surprise conversation, people can then say, “Oh, you know what, I want to go back and redefine the problem. I want to go back and maybe do a different set of IWIKs to explore an area, explore an adjacent area, explore a different area because, now, I’m tuned a little differently.”

So, really, it’s a lot of back and forth with these techniques. We also talk very much about guesstimating because, at the end of the day, what we’re taught from grammar school and up is “What’s the answer? What’s the number?” And mathematical precision matters, I’m an engineer by training. Everybody of the three authors were all technical, but guesstimating is really helpful.

So, the classic problem is, “How many piano tuners are there in Chicago?” Well, you don’t need a census to go do that. You can figure that out on the back of a napkin. And the majority of people are asked on a daily basis to provide an estimate on the back of a napkin, “Well, what do you think? What’s in the zone here?” because we can course-correct once we know that we’re in the zone. And they’re at a loss for, “Well, how do I guesstimate?” So, we talk about a series of techniques around guesstimating.

Pete Mockaitis
You’re bringing me back to my case-interview days, Paul.

Paul Magnone
There you go.

Pete Mockaitis
Good times. All right. Well, so lots of good stuff. Could you bring it together in a cool example in terms of a person or a team used a number of these techniques from beginning to end to reach a fantastic decision?

Paul Magnone
Sure. One other company, this is one of the other authors had this direct experience, so we will again mask the company to protect the innocent or goofy, either way. But there was a question around what was the performance in a region of, again, a Fortune 100 company. What was the performance in a region?

And there were about 47 markets in the region, and looking through the region, they did the analyses. They practically looked at IWIKs, and said, “Here’s what’s important in the region. Here’s what we’ve discovered,” and made their quarterly business recommendation on where to put more investment, how to align the team, and how to allocate the resources.

At the end of the meeting, the senior leader said, “This is terrific. We really have our bearings here. Is there anything that surprised you in what you’ve seen so far?” And this was Chris, Chris Frank, said, “Yeah, what really surprised me is there are 12 of the 47 segments had a sharp rise in customer satisfaction, and I can’t explain it.”

So, what he did is he buried it in the appendix because it wasn’t terribly clear. And after a lot of time doing the correlation and the analyses, there was no answer to why, and so they were just outliers. So, the leader said, “So, read off what those 12 markets were.” And as he read through them, they mapped one for one with a pilot program that the company had in those 12 markets, and they intentionally didn’t tell anybody because they didn’t want to bias anyone doing the analyses.

And because of leading into that simple question, “What surprised you?” the whole room had a revelation that, “Oh, this is really a better way to engage our customers,” and that led to a multimillion-dollar investment in a customer engagement program that didn’t exist. So, the data was all there but they weren’t looking for it the right way, and they didn’t have the insight from their leader to ask the right question.

Now, if you used these techniques proactively, you would say, “You know what, I’m going to spend 45 minutes on here’s our quarterly business review, business report. I’m going to spend 10 minutes on here are some anomalies and surprises that I think we should investigate more.” So, as a practitioner, as a business person, and you want to be awesome at your job, make the space for that. Insist that, “You know what, you hired me for a reason. Here’s something that I think we should really look at.”

Pete Mockaitis
Beautiful. Well, tell me, Paul, anything else you want to make sure to mention before we hear about some of your favorite things?

Paul Magnone
Yeah, I think that the last piece is about as simple as it gets. When you’re bringing people together, you need to tell them before they even get in the room, “Am I informing you of situations, so everybody’s up to speed and has a common knowledge base? Or, am I compelling you to action today? Am I asking you to make a choice? And then, have I armed you on your team beforehand with everything to make that choice?”

I don’t know how many meetings I’m in where partway through the meeting, because everybody texts during meetings, people are texting each other, “What is the purpose of this? What are we doing? Didn’t we already have this conversation?” So, being very deliberate is very much appreciated, and having a conversation for awareness is fantastic. But setting people up for a decision, and bringing everybody along, that’s really important because decisions are team sports. Bringing everybody along the right way really matters.

Pete Mockaitis
All right. Thank you. Now, could you share a favorite quote, something you find inspiring?

Paul Magnone
Yeah, this is a favorite quote, I use it all the time, “For every complex problem, there is an answer that is clear, simple, and wrong.” And so, that’s from H.L. Mencken, who’s a journalist in the early 1900s, and to me it speaks volumes of what we see today, where people have their fingertips on data and yet are just grasping at what seems to be the very first thing that they can answer with, and they’re not spending the time to dive in to the detail.

Pete Mockaitis
All right. And could you share a favorite study or experiment or bit of research?

Paul Magnone
Yeah, I think I’ll share a book, which feels like a study. It’s Thinking, Fast and Slow by Daniel Kahneman. And so, in some ways, our book Decisions Over Decimals echoes and builds on the system-one and system-two thinking, and we’re providing practical tools and techniques that balance the data and the human judgment.

Pete Mockaitis
Okay. And a favorite book?

Paul Magnone
I’d have to go with The Road Less Traveled, the first version. I think he redacted or refuted some of what he said in his second version. But it’s very much about understanding yourself and how to solve problems.

Pete Mockaitis
Okay. And a favorite tool, something you use to be awesome at your job?

Paul Magnone
Well, I’m partial to the Google tools, and then, of course, the techniques and frameworks that are in this book.

Pete Mockaitis
Okay. And a favorite habit, something you do that makes you awesome at your job?

Paul Magnone
I’m not a practitioner of meditation but I think it’s really important to get centered and take a step back, and say, “What’s really happening?” And I try and make the time to do that, ideally, on a weekend, and really gather and reset. So, however people do that, whether it’s meditation or a night out dancing, whatever works for you.

Pete Mockaitis
Okay. And is there a key nugget you share that really seems to connect and resonate with folks; they quote it back to you often?

Paul Magnone
I’m not sure it’s retweeted but I often say you can have your own opinions but you can’t have your own facts.

Pete Mockaitis
Okay. And if folks want to learn more or get in touch, where would you point them?

Paul Magnone
Well, our website is DOD, which stands for Decisions Over Decimals, it’s DODTheBook.com. You can reach out to myself or Chris or Oded on LinkedIn. And, obviously, in addition to everything else that we do, we teach at Columbia, so multiple ways to get a hold of us.

Pete Mockaitis
Okay. And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Paul Magnone
Make the space to share what you really think. As I’ve said multiple times, synthesize, don’t just summarize, and create that space to have real dialogue on the issues. So many times, that’s what we want and that’s not what we’re doing. And be brave and bold and make that space.

Pete Mockaitis
All right. Paul, thank you. This has been a treat. I wish you many wise decisions.

Paul Magnone
Thank you very much, and to you as well.

788: Roger Martin Shares How to Make Better Strategic Choices By Rethinking Your Models

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Roger Martin reveals how to identify the unconscious mental models holding you back from more superior management effectiveness.

You’ll Learn:

  1. Why people will resist correcting outdated models 
  2. Powerful questions to dismantle outdated models
  3. The simple word shift that makes you more strategic

About Roger

Professor Roger Martin is a writer, strategy advisor and in 2017 was named the #1 management thinker in the world. He is also former Dean and Institute Director of the Martin Prosperity Institute at the Rotman School of Management at the University of Toronto in Canada.  

Resources Mentioned

Roger Martin Interview Transcript

Pete Mockaitis
Roger, welcome to How to be Awesome at Your Job.

Roger Martin
It’s great to be here. I’m looking forward to this.

Pete Mockaitis
Oh, me, too. Well, so I’m so excited to dig into your wisdom. Tell us, what’s the big idea behind your book A New Way to Think: Your Guide to Superior Management Effectiveness?

Roger Martin
The big idea is you got to be careful to not get owned by thinking models. You get told, “Oh, this is the way you should think about this problem.” If it doesn’t work, don’t go back and say, “Well, because people say that’s the model that should be used. Keep on using it.” That’s being owned by your model. Instead, you need to own your models. They need to work for you. And if they don’t, you need to change it. That’s the big idea.

Pete Mockaitis
All right. Makes sense. Now, the word model, I figured we’ll be saying it a lot. So, could you give us maybe four or five examples of models that professionals use just so we have a real clear sense for what we’re talking about there?

Roger Martin
Sure. A model would be, in order to align the interests of management with shareholders, you should give them stock-based compensation, and that will create alignment. Or, you should always make decisions based on data. That’s the only good decision, that’s a decision made on data. That’s a model. The job of a corporation is to make sure it controls and coordinates the various businesses underneath it. That’s its primary job. That would be a model.

Another model would be customer loyalty is the most important thing about customers.

Roger Martin
Those would all be models that we use that then guide our behavior. So, if you say, “Oh, I must align the interests of management and shareholders with stock-based compensation,” you will have a stock compensation plan that’s based on the performance of the share price as a key feature of executive compensation. So, these models drive behavior.

Pete Mockaitis
So, is there any distinction, not to play too much of the semantic wordplay game, between a model and a rule or a principle?

Roger Martin
Not really. I guess what I would say is a principle tends to be a portion of a model. So, our principle is alignment, and the way we’ll make that happen is through stock-based compensation. So, you’ve got a principle that informs other aspects of a model. That’s how I would distinguish them. You could call a model and a rule kind of relatively similar.

I just think of a model not in a better way but it’s a slightly more comprehensive than either rule or principle. It’s a set of things that we will do because we say if we do those things, it’ll get the result we want.

Pete Mockaitis
And is it possible that we operate from some models that we’re not even aware of?

Roger Martin
In fact, we do that all the time. Let’s say you’re a CEO and you kind of walk into a retailer that sells your product, you don’t like how it’s merchandised, let’s say you’re a fashion line.

Pete Mockaitis
I’m fashionable. Okay, I’m with you.

Roger Martin
Yeah, exactly. Like you, Pete. And you go to the people who are running the store and say, “You, people aren’t following the corporate guidelines on this. I’m outraged, dah, dah, dah.” That’s a model. It’s a model that says it’s their fault, not yours. Your instructions weren’t confusing. Or, your way of merchandising actually doesn’t sell stuff. It’s, “You’re morons,” or you’re not so much morons, “You’re insubordinate,” in some way, “in not following it.” Your model is you have to observe when people are being insubordinate and not following instructions, and chastise them for doing so, and that will improve things.

Pete Mockaitis
And that we know best in terms of the optimal approach for merchandising versus that you may be in a surprise, like, “We tried your way but this way is 30% better, so we’re going that way.”

Roger Martin
Absolutely. Absolutely. And that executive probably wouldn’t have articulated that in the corporate jet on the way to visit the retail outlet, “My model is to make sure they’re obeying and to chastise them if they’re not.” But, in fact, that’s what naturally flows because, in fact, that is his or her, probably his, managerial model.

Pete Mockaitis
Okay. Well, so you say that folks have a tendency to double down under existing models even if they’re not working. What’s behind that?

Roger Martin
It just seems to be, Pete, a human tendency from what I can tell, which is we like to have models because, otherwise, you have to think about everything from first principles. So, you have a way of doing things, so there’s affinity with the idea of a model. And then there’s sort of social adoption. So, if everybody else is doing it, if everybody else is doing stock-based compensation, and there are stock-based compensation consultants who come and tell you how to do it, and the board gets evaluated on the basis of whether it’s got stock-based compensation, all that stuff.

If that becomes the standard, it’s easiest, that’s because we’re sort of social human beings to say, “Having a model is better than thinking from first principles and I might as well adopt the model that’s the one that’s being used most because that’s probably a good idea.” And so, you’re a plumber in ancient Rome, and all the other plumbers are saying, “This great material, lead, is really malleable and makes for good water pipes and so let’s do that, too.” And because, boy, it seems to work, ten years later all the people die from lead poisoning, but at the time it seemed like a good idea.

So, I think those two things cause people to feel a certain level of concern, anxiousness, outright fear when they have to do something other than the existing model.

Pete Mockaitis
What you’re saying there is in contrast to first principles really resonates. I’m thinking about when I was just getting my start, I’m thinking, “Okay, you don’t want to do the speaker-author, guru biz in terms of, ‘Oh, yeah, you got to have Twitter, you got to have a blog.’ Okay, so this is what I do.” And I didn’t really find those to be especially effective tools, versus reasoning it from first principles would suggest, “Okay. Well, fundamentally, what is my offer?”

“How is it distinctive from alternatives and competitives available? Who is my customer? What do they want? What are their preferences? How can I make my prospective customers aware?” And so, that is a whole lot more work than, “Oh, you got to have a Twitter, you got to have a blog.”

Roger Martin
No, no, exactly.

Pete Mockaitis
But it would’ve served me better.

Roger Martin
And that, if I can go on that, that makes for a very interesting case. What I’d say is you took something that maybe would’ve been a model that a consumer package goods company would utilize and ported it over to another domain rather than accepting the domain’s kind of model. And that I find is kind of interesting.

A similar story, as you may know, I was dean of a business school for 15 years, and that was my first academic. I was never dean before. And all the development people, the fundraising people came to me, and said, “Well, this is how you do it. Get a list made of all the rich people in the country, and rich graduates, and then you go ask them for money.”

Pete Mockaitis
Okay, “This is your job now.”

Roger Martin
And I was thinking, “Okay, like I know a lot of rich people, and let’s just put me in their shoes and say, ‘How appealing would that be to me?’ So, you’re going to come and see me because I’m rich, no other reason other than that, and because, apparently, I should want to give you money. All you have to do is ask and I’ll give it to you.”

And so, I said, “I guess you could do that but it doesn’t seem like a good idea. How about this as an idea? I find people who have means and have something that they’re really interested in that the school is also interested in, and let’s get them involved in that because they care about it and they want to be involved in that. And, in due course, they will say to us, ‘Can we support this cause in a greater way?’”

And all the fundraising people said, “Well, what does this guy know about fundraising? This guy is crazy.” Well, on the basis of that, we got the University of Toronto, which is a big gigantic university, have been running forever. University of Toronto is only a six-figure unsolicited gift ever, where it was not asked for. Its first seven-figure unsolicited gift and its first eight-figure unsolicited gift. Literally, one guy, he was into real estate and got involved…who didn’t think there was nearly enough good real estate courses producing the people, and Toronto is a big real estate town, producing the real estate folks. I said, “I agree. We need to serve the community. Would you be willing to teach a course if we got you the appropriate help?”

He did. He loved it. Students loved him. He started hiring all sorts of students from it. We hired other real estate professors. We got to a point where we were one of the best two or three business schools for real estate in North America. We then built a new building. And he came to me and said, “You probably need somebody to give you the cornerstone gift for this, the building, right?” I said, “Yeah.” And he said, “Here’s eight figures.”

So, that was a different model, a completely different model than the dominant model because, in that case, I wasn’t even prepared to sort of spend my time on the dominant model because it just seemed silly to me. But you’re right, that requires thinking from first principles, which is not as straightforward. And if my approach had failed miserably, rather than succeeded, they would’ve said, “Yeah, he is a nut.”

Pete Mockaitis
Well, I think there’s one reason right there, is it’s riskier to do something novel and different. And I’m thinking the old saw, “No one ever got fired for buying IBM.” Like, “Yeah, that’s the thing. Yup, IBM, they make the business machines, that’s their name so buy them from there.” And so, I guess that’s one reason why folks might double down.

Roger Martin
It’s a perfect metaphor, “Nobody got fired, nobody ever got fired for using the dominant prevalent model of the day.” Full stop. So, absolutely. And that’s why I’m not saying to people in the book, “Whatever the dominant model is,” I don’t say reject it.

I say, “I could understand you trying it but just make sure you kind of write down, ‘What I expect to happen when I try this model,’ and then check what actually happened. And if there’s a big negative delta there, then here’s what I’d encourage you to do. Don’t just keep doing it because everybody else is doing it. That might be the time for you to think about, ‘Is there another way to think about it?’”

So, if the dominant model is working, keep doing it, is my view. It’s just when it doesn’t work.

Pete Mockaitis
Okay. Well, I was about to ask, how do we know if something isn’t working anymore? Are there any indicators or telltale signs it’s time to shift away? It sounds like one master key is simply write down in advance what you’re hoping the thing will do, and then check later, “Did it do the thing?”

Roger Martin
Yes. And that may sound kind of trivial but it doesn’t happy very often, Pete. And that leads to sort of…there are a bunch of human dynamics problems that you have to take into account. One human dynamic problem is human beings have an infinite capacity for expose rationalizing.

Pete Mockaitis
Oh, yeah.

Roger Martin
Right? You can expose rationalize anything. And we know this in a sad, sad, sad sort of way from war crimes trials, where often somebody is on the stand and who’s committed just a horrible, terrible crime that they know is horrible and terrible, but they rationalize it in saying, “Well, I had no choice.” So, you can rationalize anything.

And so, you have to help the mind not rationalize. And the only way I believe you can do that is by writing things out because, otherwise, if you say, “Oh, well, we’re going to build a new factory. And with that new factory, it’s going to cost $100 million but we’re going to increase sales by 50% within five years, and that will pay for the factory and a good return on our $100 million investment.”

If you don’t write that down, five years from now when sales are up 35%, you’re going to say, “Yeah, exactly. This is exactly what we said, sales increased 35%,” and you would never ask the question, “Hey, what didn’t go the way we thought that made it 35 rather than 50, which actually made it a return that’s below our cost of capital, not above our cost of capital?” You wouldn’t do that because it’s sort of lost in the mind’s mist of time what you actually thought your model was going to deliver for you.

So, I want you to write it down so that when it happens, you can compare what’s happened to that. And that will give you the information you need, “Did it perform the way I wanted it to perform, that I assumed it would perform when I used it?”

Pete Mockaitis
Okay. Very good. Is that sort of like the master key or any other key questions or things to do there?

Roger Martin
That’s the master key.

Pete Mockaitis
Okay. Got you. Well, so could you maybe tie this together for us with a story of someone who they had an outdated model, and then they made a shift to a new way of thinking and got some cool results?

Roger Martin
Sure. So, I could talk about customer loyalty. So, the dominant model is that the most important factor for you in kind of being profitable is having high customer loyalty. And what that is, customer loyalty, is a conscious act. So, that would be, I don’t know, what toothpaste do you use, Pete?

Pete Mockaitis
Colgate Total, paste not gel. Thanks for asking.

Roger Martin
Perfect. Colgate Total paste. And so, it’s worked for you in the past, and so you are consciously driven to show loyalty to that brand when you go to the toothpaste aisle. You sort of consciously say, “Hey, I’m loyal to that. It’s worked well. I will do that.” It turns out that all the behavioral science, all that research is telling us that, actually, the much stronger driver of that habit is unconscious.

Pete Mockaitis
Okay. You’re right.

Roger Martin
It’s actually your unconscious. So, literally, the way the mind works for you, since you’re a Total Colgate paste, if your hand reaches for Total Colgate, or Colgate Total gel, your subconscious starts yelling at you, saying, “What the hell are you doing? The paste. Paste works. Paste is most comfortable. Paste is most familiar. You’re asking me to do something new. I’m worried. I’m nervous.” So, it’s actually an unconscious driver. And Lord forbid that you reach for Pepsodent or something else, then you’ve gone completely off the rocker, “Oh, my God, cats and dogs sleeping together.” It’s going to be horrible.

So, it turns out, the subconscious loves comfort and familiarity more than anything. So, what you want to make sure that you’re kind of not messing with is habit. And so, one thing that companies can’t help doing is refreshing and redesigning. And it turns out that colors and shapes are really important visual cues before you actually can read the lettering on most things. And that would be the case in Amazon when you see the little chicklet there. We first see colors and shapes. And so, when you change the color of something, or change the name of something to, it’s a huge negative for habit.

And so, Procter & Gamble, Tide, unbelievably profitable and venerable brand, have been around for 70 plus years. And what it turns out is that people have a Tide habit more than they are loyal to Tide. And so, when Tide, 40, 50 years ago, when the transition was starting to be made from powdered detergents to liquids, the first liquids came into being, Procter & Gamble said, “Okay, Tide is the dominant detergent, the largest market share, but people see that as a powdered detergent. And so, to make sure we do best in the now nascent liquid detergent business, what we need to do is have a brand-new brand new, it’s called Era, and that will be our liquid and Tide will be our powder.”

The Era launch was an unmitigated disaster. It never got any traction, anything. And then some bright person at Procter & Gamble said, “Hmm, what if we launched Tide liquid? And why don’t we put it in an orange bottle with the same logo, the bullseye logo kind of on it, and call it Tide, and put a little Tide Liquid beneath it?” Blammo, it quickly became the dominant liquid detergent brand and has been ever since. Why? Because people had a Tide habit, and they had a habit of buying the laundry detergent that was in orange with a bullseye on it, with four letters on it, Tide.

Then, as time went on, Tide did smart things like when they figured out how to put bleach in the Tide itself, in the detergent itself, so you didn’t have to have a separate bottle. They had learned their lesson. And guess what they called it?

Pete Mockaitis
Tide with bleach.

Roger Martin
Yes, that’s very good.

Pete Mockaitis
And then a Tide Pod.

Roger Martin
And a Tide Pod. But, every once in a while, they forget. And so, when they came out with the innovation of how to have a Tide, a detergent wash as well in cold water as in warm water, forgetting the lessons that they learned, they said, “You know, orange is a warm color, perfect for Tide. But cold, we need a cool color for that.” And so, they came up with a cold-water Tide, in what? Blue bottles. Guess how that went?

Pete Mockaitis
Not well.

Roger Martin
Not well. Disastrously bad. What was their incredibly insightful fix for that?

Pete Mockaitis
Go back to the old color.

Roger Martin
Put it in orange bottles, then it became the dominant cold-water detergent. So, that would be an example of a company that began to really understand at a deep level the power of habit over loyalty. Does loyalty matter? Yes, it for sure does. Having a warm feeling, a conscious feeling about it is good. But if you interrupt habit, and interrupt the subconscious, it overwhelms loyalty. Like, think about it, it’s amazing, at least to me. When you think about it, everybody who loved Tide, when you come up with Tide in cold water, which is an added feature that should make your Tide better, it flops because it’s in blue bottles? Holy smokes.

So, the dominant model tends to be, with marketers, “Oh, we have to refresh. Our logo is looking dated. We have to have a new logo. We have to have a new modern color scheme. Maybe we’ll even change the name of it.” All of that stuff is bad, bad, bad, bad, bad but it’s done all the time.

Pete Mockaitis
Well, I guess, in terms of if habit is driving your beautiful market share position, then, certainly. I guess if you’re an upstart and there’s not very many people who’ve got the habits, and your colors and shapes aren’t nailing it amongst the consumers, well, then sure, have at it. But, yeah, I could see how it’s costly to shift there.

Roger Martin
And can I give an example on that, Pete, because it’s good? Myspace versus Facebook. Myspace, of course, was the dominant first kind of social media site, and, actually, in its peak year had more traffic than any other site of any sort, Google, anything. But if you look at the history of Myspace, Myspace kept, from day one, completely changing its look and feel so that there was no consistency, no consistency in the way things were presented, new features that were put on it. It was referred to in the press as a dizzying array.

Think then about Facebook. Like, it has utterly consistent look and feel from the word go, even when they made their painful transition where there was the only real dip in Facebook’s history was when they made the transition to mobile. Mobile looked just like look, feel, everything. Facebook understands habit. Myspace didn’t. Myspace is gone. Facebook is worth a trillion. It is so important. If you’re a startup, you must establish a look and feel.

Netflix did a good job of that. They changed their underlying product entirely but they kept as many other things consistent as possible that helped people kind of feel comfortable. And, again, it’s an issue of you feeling comfortable and familiar, not being upset. And for what it’s worth, this relates directly to RTO, return to office, because, in essence, you could argue that COVID was the greatest force habit break since at least World War II and maybe the Great Depression, where lots of habits just had to be broken.

And one habit that was broken was, people like you and me, and tens of millions of others, waking up every morning, getting in the car, or getting on public transit, and commuting to an office, and working all day in an office, and then commuting back at night. That was the habit. And this was a habit that had a bunch of negatives to it, especially if you lived in the greater New York area, greater Chicago area, greater L.A. area, it would be a painful long commute, but it became the ingrained habit. It was just you did it unthinkingly.

And then what happened was a force majeure break of that habit. You couldn’t blame your company on the habit being broken. It was the government saying, “You must do this.” And so, you had to adopt a new habit, which was painful. For many people, they said, “Oh, my God. Kind of working from home, I had a setup, I had to seize the guest bedroom, or seize the sun porch, or the kid’s basement play area, and turn it into my kind of Zoom office, instead of I couldn’t talk face to face with my managers and my employees, and, dah, dah, dah.”

But what happened after probably six months? It was your habit. It was like, “Oh, roll out of bed, make your coffee, go to the guest room, sit in front of my computer and do Zoom calls.” So, that became the new habit. So, that was first called working remotely and then became the new habit. Then, two years on, companies say, “You must return to office.”

They thought of it, these companies thought and still think of it as getting back to where we were, going back to what is standard, you being at the office. That is not, at all, what the subconscious thinks. The subconscious says, “Oh, my God, they’re making me do a brand-new thing. They want me to work remotely.” The office is the new remotely, and can you see, what happens with the habit?

The way to think about habit is that whatever you’re doing, your habit, so for you it’s Colgate Total paste, that’s your habit, and the alternatives are Crest and Pepsodent and Colgate Total gel, which apparently is abhorrent to you. And so, every time you have a purchase occasion, there’s a race and it’s a hundred-yard dash, and Crest and Pepsodent and Colgate Total gel are at the starting line, and Colgate Total paste is on the 90-yard line. And the gun goes off, and guess who wins?

If, for some reason, Colgate were to say, “You know, we’re totally tired of that Total name. We’re going to call it Colgate Fantastimo, and we’re going to change the paste. That paste is dull and old. And we’re going to make it sort of something that’s a combination of paste and gel, like in a twirl.” What they’ve done for Pete is moved the thing he automatically bought from the 90-yard line to the zero-yard line along with all the other alternatives. And you’ll win some of them because it’s a fair race at that point, but it goes from being a profoundly unfair race in your favor, if you’re Colgate, to a fair race. That’s what’s happening with the return to work.

Your job, which you had comfort and familiarity going for, that was Zooming from home and not doing the commute, that was on the 90-yard line, just got back put back to the zero-yard line, to be compared with, “I’m going to quit for a year. I’m going to find a new job out here in the burbs, or I’m going to change to a company that continues to allow people to work from home.” And so, it’s just massively destructive for the companies asking you to return to work.

And they think it’s disloyalty, “Pete is not loyal enough to come back to the office.” No, it’s habit. It’s Pete just has this visceral thing that he can’t necessarily even understand fully that says, “You know, Pete, it’s time to think about doing something else.” So, this misunderstanding, loyalty versus habit, is going to cause big American employers who are asking you to come back to the office massive turnover. The stats are 67% of people who are being asked to go back to work are considering alternatives.

Pete Mockaitis
Yeah, that’s a great metaphor with the race and having a huge head start because it’s like, “Huh. Okay, so I have to do something different. Do I want to do that? Well, let’s look at all the options.”

Roger Martin
Yeah, exactly.

Pete Mockaitis
As opposed to, “Just keep doing what you’re doing, and don’t ask any of those difficult questions, employee, and don’t just rock the boat.” Okay.

Roger Martin
And I can give a personal example. So, I’m a big of a sportsaholic, and I had a go-to sports app. It was CBSSports.com. I don’t even know why I started using it but it was the one I went to. And I put up with CBSSports.com IT people deciding that they would do refreshes and updates to make the site better and work better and everything. But then they came up with a total redo that they were exceedingly proud of. They sent me messages about, “Hey, get ready for the brand-new site. This is going to be awesome. The navigation, everything, was completely different. The look and feel, completely different.”

And after it being, I don’t know, seven-year a constant user of it, I just said, “Oh, okay. Now is the time to test out all the sports sites and see which I like best.” And now, on the first page of my iPhone is ESPN.com, and CBSSports.com has lost me, not forever. They’ve lost me until such time as ESPN screws up in the same way as CBS Sports did.

For the subconscious, possession is way more than nine-tenths of the law. I am an ESPN.com sports app guy now. And that game is over, it’s on the 99th yard line.

Pete Mockaitis
Okay. Well, rest in peace. You’ve got a chapter I find intriguing when it comes to strategy. You say, “In strategy, what counts is what would have to be true, not what is true.” And that is one of my favorite things to teach, so I want to hear you take the floor. What do you mean by this question, “What would have to be true?” How do we apply that when we are doing decision-making effectively?

Roger Martin
Yeah, most of strategy is about analyzing, doing analyses to come up with your strategy, a very analytical exercise, and most people who are going to strategy are kind of analytically inclined. Kind of the problem is, by analyzing what is, you’re never going to find out what might be. You’re never going to create the future, lead the future.

And so, rather than focusing on that, “What is true?” which will direct you towards what is and focus your mind on what is, if you ask the question instead, “What would have to be true?” you can imagine possibilities. You can say, “Here, I’m going to imagine we do this rather than what we’re doing now.” Now, if you just do imagination, you’ll come up with all sorts of crazy things that are just dumb ideas. But if you say, “What I’m going to do is ask, ‘What would have to be true about the industry? What would have to be true about the customers? What would have to be true if there’s a distribution channel, about our capabilities, about our costs, about competitors, for that to be a great idea?’”

Then you can create a logic structure that says, “If those things were true, that would be a great idea.” Then you can imagine another possibility, and say, “What would have to be true for that one? Well, if these other set of things were true, that would be a great idea.” You can do another one, A, B, C, you’ve got a third one, “What would have to be true for that?” Then you can ask the question, “Of those things that would have to be true, which are we least confident are true?”

And then we can focus our efforts on saying, “Well, if those things would be necessary for this to be a good idea, but aren’t true today,” sort of like we’re Steve Jobs, and it’s like, “Here’s an idea. Why don’t we sell people an MP3 player that is three times the cost of price of the best MP3 player out there? We’re going to make it white and have a wheel on it. How about that for an idea?” What would have to be true is people want to kind of throw money away, like they get three times X for an MP3 player with no greater capability than anybody else’s new technology anymore.

What would have to be true though would be, “This would be of greater use because they would be able to more seamlessly download songs in a more user-friendly way onto that machine. They can’t now. But how about we do this? How about we go to all the record companies and arm-twist them into selling single songs for 99 cents rather than an album, and we’ll put it on a site called iTunes and make it super easy for them to pay and super easy for them to download?”

So, he asked, “What would have to be true?” You’d have to have something special, then you go and figure out, “Can you make it true?” You figure out that you can, then you go do it. And, sure enough, you start selling the dominant market share of MP3 players, expanding the MP3 player market dramatically, and doing it at 3X the price.

That’s the power of saying not what is true but, “What would have to be true? And can we make it true?” And by asking, “What would have to be true for it?” you can focus your efforts on the few things that aren’t true now that you’d have to make true to create a great strategy. So, that’s why, “What would have to be true?” is way more powerful than “What is true?”

Pete Mockaitis
I dig that. That’s fun in a creative invention, being ahead of the game, sort of a way. I’ve often asked myself this question just in terms of, “What would have to be true for this option to be worth picking?” and then sort of list those out, and say, “Okay. And then how can I test that?” And it’s amazing how you can figure out things to do and not to do.

One time I was trying to promote a book and I saw this publication that was distributed to a bunch of producers for radio and TV shows, and it was kind of expensive to be included in this, but I thought, “Okay. Well, this would be really cool if I got on a few shows, get the word out. This is probably a worthwhile investment.”

It wasn’t, I regret spending that money. But then, months later, someone called me and said, “Hey, Pete, I noticed that you were advertised in this publication. How did that go for you? Was it worth it?” I was like, “Wow, if I had followed my own sort of teachings, I would’ve done exactly what you did. What would have to be true? It’d get you a lot of bookings and sell a lot of books. How can you test that? Call some people who bought it and see if it worked out that way for them.”

Roger Martin
Exactly.

Pete Mockaitis
Of course.

Roger Martin
Yeah. And then this is what we did with the re-launch of Olay, creating this sort of masstige positioning of it, where you had a prestige, like a Nordstrom’s first floor or Macy’s, whatever, experience in your Walgreens or your Target. And it wasn’t true that there was such an experience, nor was it true that retailers would say, “Yes, that’s a great idea.” But we went to Target, did an arrangement with Target where we helped fund a transformation of some stores to test out the idea. The product flew, I mean, flew off the shelves in the test, and then the rest is history.

Target said, “How fast can we do all the rest of the stores?” and then everybody else said, “Why are you, bad people, just doing something with Target and not with us?” And we said, “Well, because they said they would do it. Are you saying you’ll do it?” “Yes.” And, blammo, it turns the seventh-, eighth-place skincare product into the number one skincare brand on the face of the planet massively profitable. But it was asking, “What would have to be true?” and then figuring out a way to test that.

You’re not going to test it by launching a product nationally everywhere where you don’t have the experience. You work and spend some money. You spend some money and time with Target to figure out if you could make it true. Would it succeed?

Pete Mockaitis
Oh, beautiful. Well, Roger, tell me, anything else you want to put out there before we hear about some of your favorite things?

Roger Martin
No, I think you’ve done a really nice job of talking us through the core essence of the book, so, no thank you.

Pete Mockaitis
Well, thank you. All right. Well, could you share with us a favorite quote, something you find inspiring?

Roger Martin
I guess I would go all the way back to JFK, “Ask not what your country can do for you. Ask what you can do for your country,” because it is consistent with the advice that I give all my students and proteges, “I follow the doctrine of relentless utility. If you’re just relentlessly useful, good things will happen.”

Pete Mockaitis
All right. And could you share a particular favorite study or experiment or a piece of research?

Roger Martin
The favorite piece of research that I ever did in my entire career was in ’89 when I convinced somebody at Procter & Gamble to do a study that they didn’t want but that I knew there was something we would find.

The question was, “How should Procter & Gamble think about its customers?” Now, they consider you, Pete, although you don’t buy Crest, they consider you a consumer, and they consider Walmart, Walgreens, etc. customers. And at that point, they said, “Well, we’ve got mass merchers like Walmart and Target, drugstores like CBS and Walgreens, and supermarkets like Ralph’s, Kroger’s, Whiteman’s, etc. and we’ve got C stores.” And it just struck me that that wasn’t the right way to think about it.

And so, I just started looking at their top hundred customers, and trying to figure out whether there’d be a better way to think about it. And one day, it struck me that maybe a better way to think about it is, “What is the merchandising philosophy of the customer base?” because what was emerging then, because Walmart was still very small then but growing quickly, was this notion of EDLP, every day low pricing. And Walmart, and a bunch of other chains were doing EDLP, and everybody else was what was called high-low. They have things that are high price most of the time, and then have it on deals for part of the year.

And the entire CPG industry was set up, including Procter, was set up to support high-low.

The idea at P&G at the time was, “These high-low people are more like us, like Whiteman’s and Ralph’s, they’re differentiated. And these EDLP guys, like Walmart and Foodline and a few others at the time, they’re sort of these big brick warehouses and cinder block kind of warehouse look and places, and they’re down and dirty. And so, they’re not really like us.”

So, anyway, did the study and looked at those two segments, and came to the relatively stunning conclusion for Procter & Gamble, that the same store sales growth in high-low, all of their high-low customers together, the same store sales growth of their customers was zero. The same store sales growth in EDLP was 7% a year, compound. The growth in stores in high-low was net zero, and it was 7% compound annual for EDLP.

And then what I discovered was our market share, cutting category, I just added them all up, our market share in EDLP was higher than our market share in high-low.

And on the basis of that, and probably other stuff, Procter & Gamble was the first CPG company to flip and orient all of their systems to serve EDLP, and that got them a jump in their north American sales growth in the ‘90s, which was, especially the first half. It was phenomenal because, while everybody else was sticking with their sort of high-low focus, they were EDLP, and that’s when they created the Walmart team that put a whole bunch of people that enabled to kind of work closely with them.

So, that’s my favorite piece of analysis I ever did because it helped transform the way Procter thought about its customers in a way that it almost benefitted them for a while. Now, everybody else figured it out in due course. They had to move on to what the next thing that’s going to move the needle but I always liked that and I liked it because it was so hard to convince anybody there to let me do the study.

Pete Mockaitis
All right. Thank you. And a favorite book?

Roger Martin
They’re sort of nerdly but probably John Dewey’s Art as Experience. That was life changing for me. If you’re less nerdly, Lord of the Flies, my favorite fiction book, William Golding. And the best I’ve read recently, though it’s an old book that just came to my attention recently was the Social Limits to Growth by a guy named Fred Hirsch. Fantastic book.

Pete Mockaitis
All right. And how about a favorite tool, something you use to be awesome at your job?

Roger Martin
I guess it’s my relatively new MacBook Pro 13 inch.

Pete Mockaitis
Okay. And if folks want to learn more or get in touch, where would you point them?

Roger Martin
To my website. All my writing is organized on that, and that’s www.RogerLMartin.com. And you got put the L in or it’ll take you to a real estate broker in Houston, who’s very nice. Roger Martin is a very nice guy. He sends me all sorts of emails that come his way. I send him my books. He likes my books and reads them, and so we have a good friendship but it is strained by the number of people who forget the L. So, RogerLMartin.com or @RogerLMartin is my Twitter handle.

And I write a, web is increasingly popular, weekly piece on Medium, if you’re a Medium person, called Playing to Win Practitioner Insights series, 89-long, 90th the coming Monday. So, those would be the places to find me.

Pete Mockaitis
All right. And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Roger Martin
Yeah, relentless utility. Think first about, “Am I being useful? Can I say from other people’s perspective I am providing utility?” And if you do that, good things will happen to you. Don’t sweat anything else. Just be relentlessly useful.

Pete Mockaitis
All right. Roger, thank you. it’s been a treat. I wish you much fun and interesting new ways to think.

Roger Martin
Terrific. Thanks for having me.