Group Polarization: Why Like-Mindedness is Dangerous

Group Polarization Strengthens of the Opinions of Each Person in the Group

Group Polarization: Why Like-Mindedness Is Dangerous When people who share opinions and beliefs get together in groups, they tend to be even more persuaded in their beliefs—they become extreme in their views. In other words, a group of likeminded people will reinforce one another’s viewpoints. This phenomenon is called group polarization.

Social psychologists reason that people use the choices and persuasions of others as heuristics to steer their lives in this complex world. As the English philosopher and mathematician Alfred North Whitehead once said, “Civilization advances by extending the number of operations we can perform without thinking about them.”

Social Media and Group Polarization

As people converge to likeminded people in virtual neighborhoods, they tend to operate in intellectual bubbles. Given that social media allows participants to curate their sources of information, it is easier than ever before for people to cruise through their day-to-day lives without meeting anyone who disagrees with them. Studies have shown that hanging around a group of likeminded folks makes people more scornful of differing viewpoints, than they are as individuals.

Group polarization explains partly the proliferation of fake news on social media—people accept dubious claims that support their own viewpoint while disregarding facts that conflict with their views. In the confusing times we live in, people get lost in the unstructured, unattributed noise of headlines and repeat the loudest declarations as facts without checking their soundness.

The Persuasive Ability of Social Proof in Consumer Behavior

'Influence: The Psychology of Persuasion' by Robert Cialdini (ISBN 006124189X) In the bestselling Influence: The Psychology of Persuasion, psychologist Robert Cialdini observes that advertisers tend to describe their products as “fastest-growing,” “#1 in the market,” or “best-selling.” Advertisers believe that consumers need to hear not only that a product is good, but also that others think so.

As per group polarization, when people are considering what to do or buy, they often look to what others are doing or have done, and take their cue from others. When a product, service, or an idea strikes out as particularly admired or prevailing, consumers intuitively take social proof that this is the right—and acceptable—choice.

Idea for Impact: Hanging Around with Like-Minded People is a Dangerous Intellectual Trap

The French entomologist Jean-Henri Fabre once wrote, “Seek those who find your road agreeable, your personality and mind stimulating, your philosophy acceptable, and your experiences helpful. Let those who do not, seek their own kind.”

Look for people who respect your worldview—even if drastically different from theirs—but can present alternative perspectives.

Regular exposure to differing views serves to sharpen your thinking and reasoning abilities—and may perhaps even reexamine your positions. As I’ve said before, wisdom comes from facing counter-arguments. The only test of a well-constructed opinion is that it can defend itself.

Everything in Life Has an Opportunity Cost

“Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.”
Charlie Munger, Investor

Everything in Life Has an Opportunity Cost

Doing One Thing Makes You Sacrifice the Opportunity to Do Something Else of Value

In economics, opportunity cost is the cost of not choosing the next best alternative for your money, time, or some other resource.

One of the foundational principles in economics is affirmed by the popular American aphorism, “There ain’t no such thing as a free lunch.” Resources are scarce. When resources (time, money, mindshare, autonomy, and all that) are scarce, selecting one opportunity necessitates forgoing other opportunities.

Life is all about values and priorities. You face trade-offs. Life requires of you to make choices among mutually exclusive alternatives. Every time you select something, you forfeit other alternatives and the concomitant benefits. The cost of something is what you will give up to get it. This is opportunity cost.

You Can Do Anything but Not Everything … What Will You Sacrifice When You Choose One Option Over the Others?

When mulling over multiple choices, the quality of any option cannot be assessed in isolation from its alternatives. The price you pay (or the sacrifice you make, or the benefits you give up) for doing what you’ve chosen to do instead of doing something else is the opportunity cost.

In sum, an opportunity cost is the cost of passing up the opportunities that a different option would have afforded.

Many costs are calculated in terms of money. However, just because you don’t have to spend money to do something does not imply that the options you face are without their costs. For example, you don’t have to spend money to go for a hike or watch a sunset, but there is an opportunity cost there too. You could have used that time to do something else you value—visiting a friend or reading a book, perhaps.

  • If you decide to invest two years and some $100,000 getting an MBA at a brand-name business school, there’s an opportunity cost; it costs you lost wages and all the things you could have pursued during that time and with that money. But you anticipate that getting your MBA will pay off by way of a better job in a better company with a better salary.
  • If you spend your weeklong vacation taking your parents to a beach destination in Florida, there’s the opportunity cost of not going to Paris with your spouse.
  • Opportunity Costs Apply to All Your Choices If you decide to wake up twenty minutes earlier in the mornings to leave home sooner to work and beat the horrendous traffic, there’s the opportunity cost of twenty minutes of extra snoozing.
  • When the refrigerator at home breaks down and needs replacement, you will have to give up buying that latest big-screen TV you’ve been coveting.
  • There’s an opportunity cost to even reading this article at this moment. You could have been watching TV, taking a nap, calling up a friend, or moving on to another article in the time you’re devoting to reading this article.

In a nutshell, even decisions that appear to be no-brainers carry the hidden costs of the options you will decline. Thinking about opportunity costs may not change the decision you make, but it will give you a more rational assessment of the full implications of your decision.

Opportunity Costs Apply to All Your Choices—Big and Small

Opportunity cost is a concept of great magnitude. It is one of those apparently simple concepts in social sciences that are difficult to master and tough to put into consistent practice. Tim Harford, the British author of The Undercover Economist offers a particularly instructive example of appreciating opportunity costs in his Financial Times column:

Consider the following puzzle, a variant of which was set by Paul J Ferraro and Laura O Taylor to economists at a major academic conference back in 2005. Imagine that you have a free ticket (which you cannot resell) to see Radiohead performing. But, by a staggering coincidence, you could also go to see Lady Gaga—there are tickets on sale for £40. You’d be willing to pay £50 to see Lady Gaga on any given night, and her concert is the best alternative to seeing Radiohead. Assume there are no other costs of seeing either gig. What is the opportunity cost of seeing Radiohead? (a) £0, (b) £10, (c) £40 or (d) £50.

Answer: Going to see Lady Gaga would cost £40 but you’re willing to pay £50 any time to see her; therefore the net benefit of seeing Gaga is £10. If you use your free Radiohead ticket instead, you’re giving up that benefit, so the opportunity cost of seeing Radiohead is £10.

Learn to Evaluate Life Choices Via the Lens of Opportunity Costs—The Stakes Become Clearer

Evaluate Life Choices Via the Lens of Opportunity Costs You live in a world of scarcity and must therefore make choices. You cannot avoid regret since there are opportunity costs for every choice you will make.

Everything in life is about opportunity costs. Every time you say “yes” to a choice, you are also saying “no” to everything else you may have accomplished with your time, money, and resources.

Opportunity cost is a commanding tool that you should be wise to apply to all decision-making. If you integrate this concept into your thought process, you will not only make judicious choices, but also better understand the world in which you live.

Idea for Impact: Whether you’re choosing graduate school, mulling over switching careers, starting a business, investing your money, buying a car, or frittering away your evening watching TV, considering the value of forgone alternatives will help you make better choices. Make the lens of opportunity costs the underpinning of your decision-making processes.

One of the Tests of Leadership is the Ability to Sniff out a Fire Quickly

One of the tests of leadership is the ability to recognize a problem before it becomes a disaster

I’ve previously stressed the importance of problem-finding as an intellectual skill. I’ve also highlighted why risk analysis and risk reduction should be one of the primary goals of any intellectual process. In this article, I’ll write about being proactive in identifying problems before they evolve into crises.

How Wells Fargo Failed to Recognize a Problem and Address it before it Became a Bigger Problem

As the Wells Fargo accounts scandal unfolded, it was clear that Wells Fargo’s leadership was well aware of the burgeoning problems early on, but failed to act decisively and nip the problem in the bud.

Given impossible sales quotas to reach, Wells Fargo’s “high pressure sales culture” opened as many as two million bank and credit card accounts on behalf of its customers without their consent. Employees were rebuked or even fired for not meeting aggressive cross-selling targets.

Human nature is such that high-pressure demands can deplete the willpower people need to act morally and resist temptations. And such demanding circumstances encourage people to go into defensive mode, engage in self-interested behaviors, and consider only short term benefits and dangers.

Leadership Lessons from the Wells Fargo Accounts Scandal: “A Stitch in Time Indeed Saves Nine”

Leadership Lessons from the Wells Fargo Accounts Scandal Wells Fargo’s leadership reportedly had data about ethical breaches, but they ignored or misjudged the impact of the problem. Wells Fargo even held a two-day ethics workshop in 2014 unequivocally telling their employees not to do that. As per an internal review, managers knew that 1% of employees had been fired for “sales integrity” violations.

Wells Fargo’s leadership didn’t act quickly and decisively to mitigate the effects of the crisis. Warren Buffett, one of the Wells Fargo’s biggest investors, summarized this leadership inaction at the 2017 Berkshire Hathaway annual meeting:

There were three very significant mistakes, but there was one that was worse than all the others … The main problem was that they didn’t act when they learned about it … at some point if there’s a major problem, the CEO will get wind of it. And at that moment, that’s the key to everything, because the CEO has to act. It was a huge, huge, huge error if they were getting, and I’m sure they were getting, some communications and they ignored them or they just sent them back down to somebody down below.

Leadership: “Only the Paranoid Survive”

Andy Grove (1936–2016,) the illustrious cofounder and CEO of Intel, was a famous worrier. At Intel, the focal point of Grove’s leadership style was worry and skepticism. He believed that business success contains the seeds of its own destruction, and that in order for an organization to have longevity, it needs to continue to worry about the future.

'Only the Paranoid Survive' by Andrew S. Grove (ISBN 0385483821) Grove’s principle was immortalized in his famous proclamation, “Success breeds complacency. Complacency breeds failure. Only the paranoid survive.” He eloquently explained his worrisome mantra in his bestselling corporate memoir, Only the Paranoid Survive (1996.) He wrote in the preface:

The things I tend to be paranoid about vary. I worry about products getting screwed up, and I worry about products getting introduced prematurely. I worry about factories not performing well, and I worry about having too many factories. I worry about hiring the right people, and I worry about morale slacking off. And, of course, I worry about competitors. I worry about other people figuring out how to do what we do better or cheaper, and displacing us with our customers.

At Intel, worrying about the future created a culture of triumph that propelled change and innovation. Grove never let Intel rest on its laurels and led the company to break boundaries in microprocessor innovation. During his tenure as CEO from 1987—98, Intel’s stock price rose 32% a year. Grove also said, “A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation.”

Idea for Impact: Learn to Sniff out a Fire Better than Anyone Does

The principal tasks of leadership are (1) identifying the biggest risks and opportunities, and (2) allocating organizational resources. Therefore, one of the tests of leadership is the ability to recognize a problem before it becomes a disaster. If identified and addressed early, nearly any problem can be resolved in a way that is beneficial for everyone involved.

Many leaders tend to be reactionary—they claim, “why fix something that isn’t broken.” Even when they see an impending problem, they may assume that the problem “isn’t that big of a deal” and wish the problem will just go away. Alas, many problems never go away; they only get worse.

To become a good leader, be paranoid—always assume that “there’s no smoke without fire.” If, according to Murphy’s Law, everything that can go wrong will go wrong, the paranoid leader has an advantage.

Whenever you are doing anything, have your eyes on the possibility of potential problems and actively mitigate those risks. Never allow a problem to reach gigantic proportions because you can and must recognize and fix it in its early stages.

As the medieval French philosopher and logician Peter Abelard (1079–1142) wrote, “The beginning of wisdom is found in doubting; by doubting we come to the question, and by seeking we may come upon the truth.”

Our Vision of What Our Parents Achieved Influences Our Life Goals: The Psychic Contract

Understanding Others’ Motivations is a Key to Building Better Relationships

Psychic Contract Theory: Children are Programmed to Want to Do as Well as or Better Than Their Parents Understanding others’ deep-held motivations involves recognizing what drives them, why and how they want to work, work styles they may adopt in various circumstances, and what levers you have to motivate them.

Take for example Abraham Maslow’s Hierarchy of Needs, a motivation hypothesis used widely for several decades now. Represented as a pyramid, this hypothesis proposes that people are motivated to fulfill basic subconscious desires such as food and shelter before trying to fulfill higher-level needs such as affection and prestige. Even though academics have extensively debated its specifics, Maslow’s Hierarchy of Needs has provided a handy framework to value the multifaceted composition of human motivation and to understand how to engage others.

The Relationship between Your Own Vision of Success and Your Parental Influence

'The Anatomy of a Great Executive' by John Wareham (ISBN 0887305059) One less-known framework for understanding the provenance of people’s life goals—their deep-seated aspirations for want to achieve in life—is the “Psychic Contract” hypothesis, a concept that dominates The Anatomy of a Great Executive (1991) by John Wareham, a leadership psychologist from New Zealand.

According to Wareham, a psychic contract is a set of “deals” we subconsciously strike with our parents early in life. Our life-goals are defined primarily by our own vision of what our parents achieved—and what they failed to achieve:

As we grow we absorb the values of our parents, and are conditioned to improve (albeit marginally) upon their achievements. We strike a psychic contract with them whereby “success” in life is defined by the attainment of a similar social positioning, which we later embark upon attaining, sometimes very consciously, but often entirely unconsciously.

Throughout our lives, we unintentionally adhere to our psychic contracts, despite the limitations they place on us. We use our psychic contracts to not only define and approach our life goals but also think about how we measure success.

We consciously measure success in terms of milestones and standards instilled by our parents.

As a rule of thumb, about three quarters or more of people in westernized culture seek first to equal, then marginally to improve upon the lifestyle or status level perceived to exist in the childhood home.

Psychic Contract Theory: Children are Programmed to Want to Do as Well as or Better Than Their Parents

Our Vision of What Our Parents Achieved Influences Our Life Goals: The Psychic Contract In The Anatomy of a Great Executive, Wareham goes into depth explaining how we can know our own psychic contracts and how we can reset our goals to give ourselves permission to succeed. Here are some other prominent learning points:

  • Our psychic contract is based on our birth order, our parents’ birth order, and roles we play relative to our parents in our families.
  • The so-called “prime parental injunction” sits at the heart of our conscious. We go through our lives trying to become the people our parents wanted us to be. Even people who spend their lives trying to become exactly the opposite of what their parents wished are still influenced by this injunction.
  • Every person has a pre-programmed financial comfort level. Most of us strive to reach this level; but once there, we slow down—not because we are lazy, but because we have fulfilled our inner desires and don’t need more. Wareham cites the example of commission-based sales people who, after earning adequate commission to reach their financial comfort level, tend to be less aggressive in selling cars to customers for the rest of the month.

Idea for Impact: “Psychic Contract” is a handy and thought provoking—if unsubstantiated—hypothesis to understand how your and other people’s deep-seated life goals are established. It can give you one more data point in trying to figure people out.

Become a Smart, Restrained Communicator Like Benjamin Franklin

Benjamin Franklin, America’s founding father, statesman, and polymath, was a doyen of the self-improvement movement. His methods for self-mastery are worth taking a serious look at if you’re interested in getting better at anything in life.

In his wonderful Autobiography (1791,) Franklin discusses his once-foolish delight in spinning artful arguments and doggedly winning over his opponents.

Winning an Argument Aggressively is but a Short-term Ego Victory

'The Autobiography of Benjamin Franklin' by Benjamin Franklin (ISBN 1492720941) As a young man, Franklin had a habit of fervently arguing his case in all matters and alienating people around him. He frequently ensnared his challengers with hard-hitting rhetoric:

I found this method safest for myself and very embarrassing to those against whom I used it; therefore I took a delight in it, practis’d it continually, and grew very artful and expert in drawing people, even of superior knowledge, into concessions, the consequences of which they did not foresee, entangling them in difficulties out of which they could not extricate themselves, and so obtaining victories that neither myself nor my cause always deserved.

However, Franklin ultimately recognized that his take-no-prisoners approach of arguing was by no means endearing him to other people. His realized that his brash way of outwitting his challengers had been self-defeating.

Benjamin Franklin, Doyen of the Self-improvement Movement

Arguing, if it is to Be Constructive, Must Be Done Tactfully

In an attempt to develop amenable character traits, Franklin radically improved the way he interacted with others. He let go of all expressions of conceit and bold self-confidence. He stopped using words such as “certainly” and “undoubtedly” in his speaking and replaced them with phrases that signified personal opinions—for instance, “It appears to me, or I should think it so or so for such & such Reasons, or I imagine it to be so, or it is so if I am not mistaken.”

I continu’d this method some few years, but gradually left it, retaining only the habit of expressing myself in terms of modest diffidence; never using, when I advanced any thing that may possibly be disputed, the words certainly, undoubtedly, or any others that give the air of positiveness to an opinion; but rather say, I conceive or apprehend a thing to be so and so; it appears to me, or I should think it so or so, for such and such reasons; or I imagine it to be so; or it is so, if I am not mistaken. This habit, I believe, has been of great advantage to me when I have had occasion to inculcate my opinions, and persuade men into measures that I have been from time to time engag’d in promoting; and, as the chief ends of conversation are to inform or to be informed, to please or to persuade, I wish well-meaning, sensible men would not lessen their power of doing good by a positive, assuming manner, that seldom fails to disgust, tends to create opposition, and to defeat every one of those purposes for which speech was given to us, to wit, giving or receiving information or pleasure. For, if you would inform, a positive and dogmatical manner in advancing your sentiments may provoke contradiction and prevent a candid attention. If you wish information and improvement from the knowledge of others, and yet at the same time express yourself as firmly fix’d in your present opinions, modest, sensible men, who do not love disputation, will probably leave you undisturbed in the possession of your error. And by such a manner, you can seldom hope to recommend yourself in pleasing your hearers, or to persuade those whose concurrence you desire. [Alexander] Pope says, judiciously:

“Men should be taught as if you taught them not,
And things unknown propos’d as things forgot;”

farther recommending to us

“To speak, tho’ sure, with seeming diffidence.”

Learn to Resolve Important Issues through Sensible Discourse

'How to Win Friends & Influence People' by Dale Carnegie (ISBN 0671027034) Franklin realized that this measured conversation and gentler interactions was helpful in preventing conflicts and softening resistance in those he wanted to influence. He writes, “This Habit, I believe, has been of great Advantage to life, when I have had occasion to inculcate my Opinions & persuade Men into Measures I have been from time to time engag’d in promoting.”

This rule of skilful conversation and interpersonal relationships later became one of the foundational principles in Dale Carnegie‘s masterful self-help manual How to Win Friends and Influence People—specifically, that our ticket to success in life is the ability to make others feel good about themselves.

Persuasion is Not About Outmaneuvering Others and Proving Them Wrong

The ability to communicate effectively, plead your case, and influence others is one of the most useful skills for succeeding in the modern world.

  • Learn to resolve important issues through sensible and mindful discourse.
  • Be assertive where you must, but never aggressive.
  • Be open-minded, understand the other person’s perspective, and keep your emotions under control.
  • Never insult, disgrace, or cause the other person to lose face.

Views, opinions, and judgments can differ, and these can and should be discussed civilly. However, to debate such differences vigorously so as to cause bad feelings toward is not necessary and is almost always counterproductive.

Idea for Impact: Arguing for the sake of deciding a winner is never constructive. When an argument starts, persuasion stops.

Rapoport’s Rules to Criticize Someone Constructively

'Intuition Pumps' by Daniel Dennett (ISBN 0393082067) In Intuition Pumps and Other Tools for Thinking, philosopher Daniel Dennett lists Anatol Rapoport‘s rules of constructive argument and debate:

Just how charitable are you supposed to be when criticizing the views of an opponent? If there are obvious contradictions in the opponent’s case, then you should point them out, forcefully. If there are somewhat hidden contradictions, you should carefully expose them to view—and then dump on them. But the search for hidden contradictions often crosses the line into nitpicking, sea-lawyering and outright parody. The thrill of the chase and the conviction that your opponent has to be harboring a confusion somewhere encourages uncharitable interpretation, which gives you an easy target to attack. But such easy targets are typically irrelevant to the real issues at stake and simply waste everybody’s time and patience, even if they give amusement to your supporters. The best antidote I know for this tendency to caricature one’s opponent is a list of rules promulgated many years ago by social psychologist and game theorist Anatol Rapoport (creator of the winning Tit-for-Tat strategy in Robert Axelrod’s legendary prisoner’s dilemma tournament).

How to compose a successful critical commentary:

  1. You should attempt to re-express your target’s position so clearly, vividly, and fairly that your target says, “Thanks, I wish I’d thought of putting it that way.”
  2. You should list any points of agreement (especially if they are not matters of general or widespread agreement).
  3. You should mention anything you have learned from your target.
  4. Only then are you permitted to say so much as a word of rebuttal or criticism.

One immediate effect of following these rules is that your targets will be a receptive audience for your criticism: you have already shown that you understand their positions as well as they do, and have demonstrated good judgment (you agree with them on some important matters and have even been persuaded by something they said).

This comports with the following sage advice gentle art of criticizing people effectively:

  • “If you disagree with somebody, you want to be able to state their case better than they can. And at that point you’ve earned the right to disagree with them. Otherwise you should keep quiet.”
    Charlie Munger, Warren Buffett’s business partner (see this article)
  • “The man who can hold forth on every matter under debate in two contradictory ways of pleading, or can argue for and against every proposition that can be laid down—such a man is the true, the complete, and the only orator.”
    —Roman Orator Cicero (see this article)
  • “I have yet to find a more efficient and reliable way to probe the depths of a person’s knowledge and seriousness about an issue than asking them to explain the other side’s perspective.”
    —Entrepreneur Ben Casnocha (see this article)
  • “If you can’t imagine how anyone could hold the view you are attacking, you just don’t understand it yet.”
    —Philosopher Anthony Weston in Rulebook for Arguments (see this article)
  • “When you think you can nail someone with your argument, take a breath & see if you can phrase it as a face-saving question.”
    —Career Coach Marty Nemko

20 Reasons People Don’t Change

They Don't Want to Change

If you have trouble getting people to change, perhaps one—or more—of the following reasons are to blame:

  1. They don’t want to change … they find reassurance in the status quo
  2. Their environment is holding them back
  3. They’ve tried to change in the past, failed, and have given up
  4. Your coaching / feedback is garbled … the benefits of change are unclear
  5. They don’t react well to criticism
  6. They’re suspicious of your motives (i.e. fear of manipulation)
  7. They see little incentive to change
  8. They don’t know how to change
  9. They have no role models
  10. There’s no support (or resources) for change
  11. Change threatens their self-image
  12. They can’t tell what’s really important
  13. They don’t feel courageous enough … i.e. they fear failure
  14. They don’t feel enough pain yet
  15. They’re overconfident or arrogant
  16. They fear their weaknesses will be exposed
  17. They’re too lazy and undisciplined
  18. Change requires giving up something they presently value
  19. They resist change that’s imposed from outside … i.e. they’re not intrinsically motivated for change
  20. Change undermines their self-confidence

Idea for Impact: Temper your expectations of others. Old habits die hard. Even Einstein’s doctor couldn’t get the great physicist to quit smoking despite his deteriorating health.

Be realistic about changing others’ hearts and minds. If you can learn to accept them for who they are and let go of your conceptions of their perfection, your relationships become more richer.

What it Takes to Be a Hit with Customers

  1. Be Trustworthy. One of the most important aspects of being effective at work is earning and upholding others’trust through your actions, not through your words. You earn trust slowly but can lose it in a moment—as Warren Buffett often reiterates, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Idea for Impact: Earn trust by making and honoring your commitments. Do what you commit to. Act with integrity. Do the right things for the right reasons.
  2. Responsiveness in Customer Service: Respond immediately to requests unless there is a judicious reason to wait Be Responsive. We live in a time and age of “instantaneous gratification.” People want immediate results—without delay or deferment. They don’t expect to wait. And if they have to wait on you, their resentment grows. Alas, responsiveness affects how people perceive you. If you’re slow, your customers will suppose you are indifferent or incompetent. If you respond promptly, they’ll assume you’re proficient and on top of your work. Idea for Impact: Respond immediately to requests unless there is a judicious reason to wait.
  3. Be Strong, But Flexible. Respect the rules and traditions but be adaptable to changing conditions. Be watchful and absorb from whatever you can learn—as General Electric’s celebrated ex-CEO Jack Welch once wrote, “The desire and the ability of an organization to continuously learn from any source—and to rapidly convert this learning into action—is its ultimate competitive advantage.” Idea for Impact: Flexibility with rules can be pragmatic in its own right. Learn to make rational decisions by balancing facts and emotions.
  4. Be Realistic, Not Overly Optimistic. Self-help gurus and the media have endlessly touted optimism as the “winning formula to success.” This obsession with cheerfulness has reinforced a false sense of realism and pragmatism. Optimists tend to overlook the reality—they develop a false sense of hope and become too attached to the possibility of positive outcomes. Unfortunately, realists are branded as skeptics and skeptics are quickly shunned as outcasts. Idea for Impact: Take an honest and levelheaded view, no matter what the problem. Embrace the possibility of failure. Plan for the downside. Don’t get caught up in trivial details.
  5. Be Likeable and Interested. Highly competent but unlikeable people do not succeed as well as their fairly competent but likeable counterparts. The American poet and memoirist Maya Angelou aptly said, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Idea for Impact: Be pleasant, enthusiastic, and friendly—make eye contact, smile, and say ‘hello’ more. Listen. Be open and approachable. Appreciate the individuality of people. Try to be interested, not just interesting.
  6. Be a Good Salesperson - Much of success in life is really about selling yourself Be a Good Salesperson. Much of success in life—from getting a Starbucks barista to make a special no-whip, extra-foam latte with half a packet of Splenda to finding a spouse—is really about selling yourself. Every selling situation involves making a connection with an individual who likes and trusts you. An anonymous sales guru once said, “All things being equal, most people would rather buy from somebody they like… and that’s true even when all things aren’t equal.” Idea for Impact: It is useless to work hard and be creative unless you can also sell what you create. Learn to be persuasive. You can’t just talk people into things.
  7. Be Visible and Communicate Candidly. How you identify and respond to a problem or a crisis is the ultimate test of your character. If you do not communicate frequently, people will develop their own perceptions of the problem and its implications. Knowing when to step up your communications efforts to the right levels during difficulties can be a powerful tool in problem solving. Idea for Impact: Keep your eyes open for customers’ inconveniences, difficulties, and troubles as creative problems to be solved. Focus on problem solving. Be visible. Communicate and lead from the front. Learn how to handle upset customers.

Postscript: This Harvard Business Review article argues that, more than anything else, customers want just a reasonable solution to their expectations. Delighting them by “exceeding their expectations” hardly enhances customer loyalty.

How Starbucks Brewed Success / Book Summary of Founder Howard Schultz’s “Pour Your Heart Into It”

I recently finished reading Pour Your Heart Into It, the personal story of how Starbucks founder, Chairman, and ex-CEO Howard Schultz built a major consumer brand and a stellar business model anchored in passion and values. He proclaims, “Success should not be measured in dollars … It’s about how you conduct the journey, and how big your heart is at the end of it.”

An Iconic Leader Built a Coffee Empire with Unyielding Attention to Customer Experience

'Pour Your Heart Into It' by Howard Schultz (ISBN 0786883561) Howard Schultz’s Pour Your Heart Into It (1997) begins with his formative years as a poor German-Jewish boy in Brooklyn and ends with Starbucks’ post-IPO journey to becoming a well-respected and recognized global consumer brand.

In 2000, three years after Pour Your Heart Into It was published, Schultz assigned Jim Donald as CEO and became Starbucks’ meddling chairman. In 2008, following quarter-after-quarter of disappointing sales figures during the Great Recession and a “watering down of the Starbucks experience,” Schultz returned as CEO in 2008 and led the company to commendable growth and profitability. His turnaround memoir (my summary here,) Onward: How Starbucks Fought for Its Life without Losing Its Soul (2012,) discusses how he restored the essence of the Starbucks experience during his second stint as CEO.

Earlier this month, Schultz entrusted a deputy with CEO responsibility, but remains chairman. In the same way as in 2000, he hasn’t left the company and focuses on developing Starbucks’ premium Reserve Roastery and Tasting Room stores.

Starbucks Created an Industry through High-profile Cafés That Promise a Lifestyle Experience

'Onward: How Starbucks Fought for Its Life without Losing Its Soul' by Howard Schultz, Joanne Gordon (ISBN 1609613821) In fact, Schultz did not start ‘Starbucks.’ When working as a plastics salesperson in 1981, he happened into Starbucks—then, a chain of six high-quality coffee retail stores based in Seattle. He immediately fell in love with his experience at their Pike Place Market store. Schultz recalls, “A heady aroma of coffee reached out and drew me in. I stepped inside and saw what looked like a temple for the worship of coffee. It was my Mecca. I had arrived.”

In 1982, he joined Starbucks as head of marketing and retailing. On a business trip to Italy, he witnessed the allure of Milan’s café culture. He was specifically fascinated by the passionate connection that the Italians had not only with their coffee, but also with their coffee bars—an integral part of their country’s social life.

After returning to Seattle, he could not persuade the original Starbucks’ proprietors to open similar “coffee bar experiences.” Schultz then quit Starbucks and opened his own Il Giornale chain of coffee bars. Three years later, when Schultz was all of 34, Il Giornale purchased Starbucks and adopted its name.

Starbucks founder, Chairman, and CEO Howard Schultz

From Rags to Riches: Starbucks Became A “Company with a Conscience” While it Brewed Worldwide Success

The rags-to-riches account of Howard Schultz is one great American entrepreneur success story. Schultz grew up poor in Brooklyn’s subsidized housing projects. At age seven, Schultz was deeply upset when his father suffered after breaking an ankle. With no health insurance or other benefits, the senior Schultz (a blue-collar “beaten man”) worked very hard at dead-end jobs to atone for medical expenses and offset his lost pay. That incident left a profound impression on Howard. “As a kid I never had any idea that I would one day head a company. But I knew in my heart that if I was ever in a position where I could make a difference, I wouldn’t leave people behind,” he avows.

CEO Howard Schultz: From Rags to Riches Starbucks Brews Success Subsequently, Howard Schultz wanted to create an enterprise that treated staff with respect and nurtured them. He writes, “If you treat your employees as interchangeable cogs in a wheel, they will view you with the same affection.” Starbucks offered health benefits and stock options to all staff (called “partners”)—including part-timers—to demonstrate “that a company can lead with its heart and nurture its soul and still make money.”

The essence of Pour Your Heart Into It is that the Starbucks marvel is not only about economic growth and brand success, but also about its socially conscious corporate ethos: “We never set out to build a brand. Our goal was to build a great company, one that stood for something, one that valued the authenticity of its product and the passion of its people.”

A Well-respected Global Brand and A Grande-sized Ego

Schultz’s gracious and inspiring account in Pour Your Heart Into It, however, is speckled with lofty assertions and self-congratulatory superlatives. For instance, when recounting his epiphany of discovering the allure of Milan’s café culture, Schultz states, “it was so immediate and physical that I was shaking.” He labels a prospective joint venture with Pepsi an “earth-jolting paradigm shift.”

Schultz takes credit for turning coffee into a “national obsession” in North America and declares that his founding purpose was to give North Americans the opportunity to savor the “romance and mystery” of Italian espresso bars. When featured on the cover of Fortune magazine for an article titled “Howard Schultz’s Starbucks Grinds Coffee Into Gold,” Schultz writes that he felt “proud but, frankly, a little embarrassed at all the attention. It’s always been hard for me to celebrate success.”

Like I wrote in my summary for Onward, Schultz’s account of his 2008 return as CEO, his flamboyant tone is demonstrative of a fiercely passionate entrepreneur and a brilliant corporate cheerleader. Under his leadership, Starbucks has used its narrative of being a noble torchbearer of altruistic capitalism to brew global success. Schultz writes,

Starbucks was attempting to accomplish something more ambitious than just grow a profitable enterprise. We had a mission, to educate consumers everywhere about fine coffee. We had a vision, to create an atmosphere in our stores that drew people in and gave them a sense of wonder and romance in the midst of their harried lives. We had an idealistic dream, that our company could be far more than the paradigm defined by corporate America in the past.

CEO Howard Schultz and Starbucks's Race Together Campaign Over the last few years, Schultz has been increasingly politically active and has used the platform of his office at Starbucks to share views on matters that are peripheral to Starbucks’ business and operations. In 2015, for instance, Starbucks got into hot water after launching a bold “Race Together” campaign in the aftermath of the Ferguson racial unrests. With his characteristic flair, Schultz encouraged baristas to discuss race with customers at Starbucks stores “under the belief that it’s a critical first step toward confronting—and solving—race-related issues as a nation” according to this USA Today article. Alas, Schultz’s idea backfired and Starbucks called off the initiative.

More recently, after President Trump’s executive order excluding refugees from specific countries, Starbucks announced its intention to lead a global effort and hire 10,000 refugees globally by 2022. Trump supporters promptly boycotted Starbucks.

Schultz is speculated to be considering running for the 2020 Democratic presidential nomination.

Lessons on Employee Engagement from Howard Schultz's 'Pour Your Heart Into It'

Recommendation: Read Howard Schultz’s “Pour Your Heart Into It”

Howard Schultz’s description of how Starbucks transformed an entrenched commodity into a value-laden brand and a differentiated experience makes Pour Your Heart Into It an absorbing story of entrepreneurial success. Schultz portrays himself as a passionate, dedicated, and visionary entrepreneur. But then again, he appears impulsive as a manager and brash as a capitalist—often in little doubt that his own preferences for the Starbucks experience will reflect of those of its customers.

The significant take away lessons from Pour Your Heart Into It are,

  • Develop a close relationship with your customers through the quality of your product and your customer service.
  • Continually reinvent your product and your business, even when you are experiencing success.
  • When you start a business, work hard to instill values and beliefs. Set the standards and build the culture.
  • Any consumer business is only as good as its customer-facing employees. When an organization’s employees sincerely believe in its product, service, and business, they will care about the customer, perform at higher levels, and eventually increase the company’s value of the organization.

Coffee snobs—especially Starbucksaholics—will love Schultz’s impassioned portrayal of “the romance of the coffee experience, the feeling of warmth and community people get in Starbucks stores. That tone is set by our baristas, who custom-make each espresso drink and explain the origins of different coffees.”

12 Sensible Ways to Realize Self-Responsibility

12 Sensible Ways to Realize Self-Responsibility

The French-American essayist Anais Nin (1903–77) wrote in her diary (from Diary of Anais Nin Vol. 5,) “We cannot always place responsibility outside of ourselves, on parents, nations, the world, society, race, religion. Long ago it was the gods. If we accepted a part of this responsibility we would simultaneously discover our strength.”

Self-responsibility is recognizing that you are responsible for your life—that you are the sole master of yourself. Responsible people take charge of themselves, their conduct, and the consequences. Here’s how to live self-responsibility and approach work and life proactively:

  1. Accept that no matter what happens, you’re not a victim. Never feel sorry for yourself or engage in self-pity. What’s important in life is not what happens to you but how you react to what happens to you.
  2. If something bad happens in your life, don’t let it define who you are. Don’t make it your excuse for not moving ahead. Don’t brood over it without end. Understand it, learn from it, and get on with life. Make it be a part of you without letting it being who you are.
  3. Don’t look back too often. Dwelling on the past deprives the present of its joy and prevents you from enjoying each day to the fullest. Open yourself up to today’s new opportunities. The ability to rebound quickly from failures and disappointments is one of the key differentiators between successful and unsuccessful people.
  4. Life is what you make of it. You are solely responsible for the choices in your life. You cannot blame others for the choices you have made. You alone are responsible for what you choose to think, feel, and act.
  5. Don’t engage in wishful thinking. Face reality and make the right choices based on that reality. Learn to play the hand you’ve been dealt. Anticipate and plan—the best time to change is when you want to, not when you have to.
  6. Be willing to let go of the life you’ve been hoping for. Challenge your beliefs about what you can and can’t do. Life the life that is waiting for you.
  7. Don’t operate life on the assumption that the world ought to be fair, just, and objective. You are neither entitled nor not entitled to good treatment. American comedian Jerry Seinfeld once said, “I tend to accept life as it is. … I’m not one of these ‘Life isn’t fair’ people. I tend to accept whatever the limits are, whatever the rules are.”
  8. You do not have as much control in life as you would like to have. You cannot influence or affect people and events. You have power over only your life and the choice of your attitudes and actions.
  9. Care less for what other people think. Listen to your friends and loved ones, but don’t become dependent on what they think of you.
  10. You are your best cheerleader. Surround yourself with kind people who love you and encourage you. However, do not depend on others to make you feel good about yourself. Protect and nurture your physical, mental, emotional, and social well-being.
  11. Take an honest inventory of your strengths, abilities, talents, virtues, and positive points. Pursuing your strengths is the key to becoming productive and happy. Identify the limits of your abilities and your time and say ‘no’ to things you know you can’t do well.
  12. When stuck, be grateful for everything that life has offered you. Turn your focus from something you don’t want to something you do want. Take a baby step forward—consistently acting in small ways toward your goals will give you a sense of possibility, power, and accomplishment.

Idea for Impact: Inefficacious People Can’t or Choose to Not Own Responsibility for the Choices They Make

In the words of the American martial artist Bruce Lee (1940–73) (from the essay “The Passionate State of Mind” in the compendium Bruce Lee: Artist of Life,) “We can see through others only when we see through ourselves. … There is a powerful craving in most of us to see ourselves as instruments in the hands of others and thus free ourselves from the responsibility for acts that are prompted by our own questionable inclinations and impulses.”

Take Responsibility for YourselfDespite everything you have to do in life to fulfill your obligations and discharge your responsibilities, anything and everything you do is your choice.

Notwithstanding pervasive external constraints and impositions, you are free to choose your action and carry out your ends.

You are the only one in control of your life. Take responsibility for yourself. This is a very powerful idea.