Sharpening Your Skills

Book Summary of Erich Fromm’s ‘The Art of Loving’

June 21, 2023 By Nagesh Belludi Leave a Comment

Erich Fromm‘s The Art of Loving (1956) is a philosophical and psychological exploration of the nature of love. It begins by questioning whether love is an art that requires knowledge and effort or merely a pleasant sensation that one “falls into” if lucky. Fromm argued that most people believe the latter, while he subscribed to the former. As an art, love necessitates practice and a certain degree of maturity to succeed at it.

Fromm posits that people misunderstand love for several reasons. First, they tend to focus not on loving but on being loved—striving to improve their desirability by becoming more affluent, famous, or attractive instead of learning to love. Second, they think of love as finding an object to love rather than a faculty to cultivate. They believe that loving is simple, but finding someone to love is challenging, whereas, in reality, the opposite is true. Lastly, Fromm points out that people often confuse “falling” with “standing” in love, which involves care, responsibility, respect, and knowledge.

The initial rush of emotions when two previously isolated people suddenly discover each other may be exciting, but these feelings are fleeting. True love involves “standing” in love, a skill that takes years of hard work to develop, just like any other art or skill. Fromm argues that love is not something we stumble upon but must actively learn and cultivate over time.

In the end, Fromm emphasizes that despite the difficulties in learning and practicing love, it is a most valuable pursuit, surpassing material possessions like money, fame, or power. The mystery of existence can only be uncovered through our relationships with nature, purpose and meaning (through fruitful work,) and, most crucially, with other people. Hence, to fully experience the richness of life, it is necessary to cultivate the art of loving in all its forms.

Read The Art of Loving. It’ll deepen your appreciation for the complexities of love and human connections.

Why Incentives Backfire and How to Make Them Work: Summary of Uri Gneezy’s Mixed Signals

June 20, 2023 By Nagesh Belludi Leave a Comment

Misguided Motivations: The Folly of Incentives in the Great Hanoi Rat Massacre

In the late 18th century, Governor Paul Doumer of the French colonial government had a vision to modernize Hanoi. His plan included the introduction of toilets, which unfortunately attracted disease-spreading rats. As time passed, the rat population became a growing concern. In a desperate attempt to control the vermin invasion, the government launched a program that rewarded citizens for every rat tail they brought in, hoping to reduce the rat numbers. However, this seemingly brilliant solution turned into a catastrophic event.

Unbeknownst to the government, the citizens of Hanoi discovered a loophole in the system. Instead of exterminating the rats, they started amputating the rats’ tails without killing them. This allowed the rats to continue to breed more rats with tails, as these would become a future source of income.

The situation quickly descended into utter madness. Driven by insatiable greed, some individuals established rat-breeding farms to maximize their rewards, while others resorted to importing rat tails from distant regions. The unintended consequence of this perverse incentive scheme was a massive explosion in the rat population, exacerbating the very problem it was meant to solve.

This ill-fated event, known as the “Great Hanoi Rat Massacre,” is a notorious example of the dangers of perverse incentives.

The Unintended Consequences of Incentive-driven Actions

In his insightful book, Mixed Signals: How Incentives Really Work (2023,) Uri Gneezy, a distinguished behavioral economist from the University of California-San Diego, masterfully presents compelling examples that highlight the profound disparity between the intended behaviors incentives aim to promote and the unforeseen behaviors they unintentionally trigger. Gneezy’s astute analysis illuminates the perplexing nature of these gaps, offering invaluable insights into the actual workings of incentive systems. Another example of this point is the situation with many doctors operating under Fee for Service (FFS) payment models. In these models, doctors are incentivized to perform additional tests and procedures to increase their own payment. As a result, their focus may shift from promoting overall health to simply recommending more procedures.

To avoid sending confusing messages through incentives, Gneezy emphasizes the importance of carefully considering such initiatives’ potential outcomes and unintended effects. Gneezy strongly advocates for the use of prototype incentive programs.

Consider the case of the Wells Fargo cross-selling scandal, which was caused by aggressive sales practices. To increase the number of accounts held by existing customers, the company decided to motivate bank employees to promote additional services, like credit cards and savings accounts, to customers with checking accounts. However, due to a lack of proper oversight, employees resorted to fraudulent practices by creating over three million unauthorized credit card accounts without customers’ knowledge or consent. These unethical practices harmed customers who ended up with unwanted and unnecessary accounts, violated their trust, and exposed them to fees and penalties. In order to prevent such a scandal, Wells Fargo could have implemented prototype techniques and established an auditing system to verify the legitimacy of accounts randomly.

The Irony of Fines as Deterrents in Action

Gneezy brilliantly dissects the flawed notion that imposing fines is a universal remedy. He highlights how fines, often intended as deterrents, can backfire by diverting people’s focus from deterring behavior to merely avoiding punishment. For instance, when drivers are warned about the perils of texting while driving, they may genuinely reflect on the risks involved and the value of their own lives. However, the introduction of a $500 fine shifts their mindset. Now, their attention shifts from personal safety to the likelihood of encountering law enforcement. If they perceive a lack of police presence, the thought process changes to “No police around, no risk of getting caught—time to text!” In this way, the imposition of fines skews individuals’ attention from contemplating potential hazards to the probability of facing the consequences.

Recommendation: Fast-read Mixed Signals: How Incentives Really Work (2023.) Greezly’s work serves as a resounding reminder that designing an incentive system to encourage desired behavior while minimizing unintended consequences is no easy feat. Greezly’s advice on balancing multiple metrics to avoid the pitfalls of fixating on a single metric at the expense of others and the importance of regularly reviewing and updating the system while keeping a vigilant eye on unintended consequences is undeniably accurate.

Numbers Games: Summary of The Tyranny of Metrics by Jerry Muller

June 19, 2023 By Nagesh Belludi Leave a Comment

The Tyranny of Metrics (2018) by Jerry Muller, a historian at The Catholic University of America, is a poignant reflection on our society’s obsession with measurement. Muller’s eloquent arguments shed light on the dual nature of metrics—they can be valuable diagnostic tools, yet their misuse as the sole measure of success and tied to rewards poses significant problems. Drawing upon many empirical examples across various fields, Muller skillfully reveals the inherent pitfalls of our reliance on metrics.

Consider the initial allure of measuring and publicly disclosing the success rates of surgeons performing specific procedures. At first glance, this transparency appears beneficial, empowering patients to make informed decisions. However, a disheartening trend emerged once these performance scorecards entered the public domain. Surgeons, fearing a decline in their reported success rates, started avoiding the most complex cases. Shockingly, even cardiac surgeons refused to operate on critically ill patients, jeopardizing lives to protect their perceived success.

Muller further elucidates the case of hospital emergency rooms, where the pursuit of improving the metric for timely patient admission became paramount. In a tragic turn of events, the desire for statistical accolades overshadowed the urgent needs of the suffering. Ambulances formed a distressing queue outside the facility as the metric was manipulated, leaving genuine care and compassion languishing in the background.

In 2009, when Medicare implemented public reporting and penalties for hospitals with higher-than-average 30-day readmission rates, hospitals resorted to manipulating the metric. They cleverly distorted the numbers by categorizing many readmitted patients as outpatient services, concealing them and evading penalties.

Education, too, falls victim to the obsession with metrics. The relentless focus on using metrics to influence teacher retention or determine school closures has given rise to a phenomenon known as “teaching to the test.” Educators find themselves trapped, compelled to prioritize teaching subjects aligned with standardized exams, such as math and English while neglecting crucial skills like critical reading or crafting extended essays. Pursuing metric-driven success inadvertently sacrifices holistic education on the altar of narrow measurement.

During the Vietnam War, the US Defense Secretary introduced the “body count” metric. This idea, advocated by US Defense Secretary Robert McNamara, suggested that a higher number of enemy casualties indicated greater success and brought the US closer to victory. However, an unintended consequence emerged when the body count became an informal measure for ranking military units and determining promotions. In this dangerous pursuit of numbers, the metric lost touch with reality, often inflated to fulfill the desire for perceived success. Counting bodies became a precarious military objective in and of itself, overshadowing the true essence of the conflict.

Muller’s perspective does not advocate completely disregarding metrics as a management tool. Instead, he emphasizes the importance of utilizing meaningful and comprehensive metrics that contribute to informed decision-making. He distinguishes between measurable aspects and measurements that hold true significance.

To achieve this, Muller discourages starting with the metric itself. Instead of asking, “What metrics should we use?” he suggests a more practical approach: “What are we trying to accomplish?” This approach involves establishing goals and metrics that evaluate achieving desired outcomes and customer satisfaction (effectiveness) while efficiently utilizing available resources.

In a compelling concluding chapter, Muller encapsulates his central thesis with a resounding declaration: “Measurement is not an alternative to judgment; measurement demands judgment.” This statement emphasizes the need to make informed decisions regarding whether to measure, what to measure, how to interpret the significance of measurements, whether to assign rewards or penalties based on results and who should have access to the measurements.

Recommendation: Skim Tyranny of Metrics. This tome serves as an authoritative guide for comprehending the profound influence of numerical indicators on the very foundation of modern society. It should be considered essential reading for anyone seeking to understand why organizations often operate below their full potential.

After Action Reviews: The Heartbeat of Every Learning Organization

June 15, 2023 By Nagesh Belludi Leave a Comment

The After Action Review (AAR) is a formal group reflection process used by the military and other organizations to analyze critical decisions or moves.

At its core, the AAR seeks to answer four questions: What was planned, what actually happened, why did it happen, and how can we do better next time?

The focus isn’t on grading success or failure but on identifying weaknesses that need improvement and strengths that should be sustained. The knowledge gained from the AAR can then be shared with others who’re planning, developing, implementing, and evaluating similar efforts.

Conducted in an open and honest climate, the AAR involves candid discussions of actual performance results compared to objectives. It requires input and perspectives from all stakeholders involved in the project or activity. The goal is to ensure everybody feels part of the solution, not the problem.

AARs are a powerful tool for continuous improvement that enables organizational learning through reinforcing personal and organizational accountability and continuous assessment of performance successes and failures. They’re an excellent way to identify best practices (what should be spread) and errors (what shouldn’t be repeated.)

The wisest and smartest people and businesses can reflect ex post facto. As the saying goes, “He that will not reflect is a ruined man.”

Decluttering: Getting Rid of the Stuff Doesn’t Necessarily Mean Getting Rid of Everything

June 8, 2023 By Nagesh Belludi Leave a Comment

Marie Kondo the renowned Japanese organizing consultant and author of The Life-Changing Magic of Tidying Up (2010) presents a radical approach to decluttering. Her philosophy challenges us to reassess the value we attribute to our belongings and discard anything that fails to “spark joy.”

However critics argue that Kondo’s minimalist approach can detach us from sentimental attachments and oversimplify the decluttering process. They particularly question her suggestion of limiting books to a maximum of 30. Yet Kondo emphasizes that her approach is tailored to her own preferences and that the critical aspect of tidying is discovering our individual sense of value. In a recent interview with IndieWire Kondo explained,

The most important part of this process of tidying is to always think about what you have and the discovery of your sense of value what you value that is important. So it’s not so much what I personally think about books. The question you should be asking is what do you think about books. If the image of someone getting rid of books or having only a few books makes you angry that should tell you how passionate you are about books what’s clearly so important in your life. If that riles you up that tells you something about that. That in itself is a very important benefit of this process.

Ultimately the purpose of decluttering is not to let go of possessions that hold meaning for us. It’s about creating space for the things that genuinely bring us joy and contribute positively to our lives. If your personal library brings you happiness there’s no need to limit it.

Idea for Impact: Sort sentimentality from satirical simplification. If certain items hold sentimental value such as mementos a record collection or family heirlooms it is perfectly acceptable to keep them. The important principle is to let go of possessions that no longer serve a purpose and make space for what holds greater significance in our lives.

How Thought-Stopping Can Help You Overcome Negative Thinking and Get Unstuck

June 1, 2023 By Nagesh Belludi Leave a Comment

To avoid getting trapped in negative thoughts such as “No one will hire me,” “I’m so angry,” or “I’m an imposter,” thought stopping can be a lifesaver. This technique is particularly effective in preventing your mind from fixating on distressing situations. The more frustrated and irate you get, the more likely you are to avoid thinking about it. But then you end up blaming yourself for remaining stuck.

When you catch yourself indulging in unproductive thoughts, immediately shout “STOP!” and shift your focus to a productive task. You can take a small step toward your goal by reading an article, watching a video, or reaching out to a trusted friend for suggestions on how to enhance your situation.

It’s also vital to assess if the negative thought is justified or if there’s anything you can do to improve the situation.

While it’s true that thought-stopping alone may not be adequate to address all causes of being stuck, it can still be a potent tool to help you identify negative thoughts that play repeatedly in your mind. Once you become aware of these thoughts, you can break free from the cycle of negativity and move forward positively by taking small steps to get unstuck.

Potluck Perfect: The Dos and Don’ts of Etiquette

May 29, 2023 By Nagesh Belludi Leave a Comment

Potluck parties are a great way to bring together friends and family on a budget, but just because they’re casual doesn’t mean etiquette should be forgotten. Here’s what both hosts and guests need to know:

For hosts, it’s essential to be clear about what guests should bring, pre-plan the menu, and ensure expectations are within guests’ abilities and budgets. Ensure there’s something for everyone to enjoy. Non-cooks and visitors-to-town should be allowed to bring a charcuterie tray or bakery dessert.

Give guests small, simple jobs, but make sure they’re easy and convenient.
Encourage socializing. Introduce guests to each other and plan some group activities to get everyone interacting. Plan fun activities, such as lawn games, music, or a bonfire (if weather permits.)

For attendees, let the host know in advance what you’re bringing and check what others are bringing. Let the host know if you want to prepare or bring something else.

Bring enough food for everyone to try some and put some effort into it; don’t show up empty-handed or with something as simple as a bag of chips. Put some effort in. Don’t be disrespectful to those who’ve slaved over the stove.
Don’t bring a dish or dessert with a serving missing. If your family demands a taste test, divide your preparation into individual servings and transfer them onto a decorative plate.
Don’t bring something only you can eat or something super exotic. Stick with what you know and opt for creative dishes from your family or tradition.
Don’t bring a dish that needs to be finished or heated in the oven; bring everything you need to serve your dish.
Put your dish’s ingredients on an index card and place it next to your pot, so guests with food allergies or dietary restrictions will know what they can eat.
If you have dietary restrictions, don’t make a big fuss; bring something you can eat.
Arrive on time, offer to help wash up, and try to taste a little bit of everything. Don’t double-dip when eating appetizers or touch all the rolls in the basket.
Complement other dishes, ask for a recipe if you’re interested, and don’t expect to leave early with your dish or leftovers unless the host suggests it.

Idea for Impact: A successful potluck gathering is akin to a warm embrace that envelops all in attendance, making them feel right at home and where there is plenty of delicious food and drink to go around.

Availability Heuristic: Our Preference for the Familiar

May 27, 2023 By Nagesh Belludi Leave a Comment

The availability heuristic is a cognitive bias that can lead people to rely on readily available information or emotionally charged and inherently interesting examples when making decisions or judgments. Essentially, individuals tend to overestimate the probability of events that are easy to recall or that they’ve personally experienced, while underestimating the likelihood of less memorable or less frequent events.

In other words, the ease of retrieval of a misleading cue may make people rely on evidence not because it is dependable but because it is memorable or striking and thus psychologically available to them. They may do so even if the evidence is not logically acceptable or does not logically support their decision.

Doctors often depend on recalling their past dramatic cases and mistakenly apply them to the current situation. People may overestimate the crime rate in their community based on news coverage, even though crime rates may be relatively low. People may dismiss the reality of climate change if they’ve recently experienced a cold winter or heard of a cold snap in a particular region, even though global warming is a long-term trend. Individuals are more likely to purchase insurance after experiencing a natural disaster than before it occurs. In each of these scenarios, the vivid and emotional evidence feels more persuasive rather than it being the most accurate or reliable information.

The availability heuristic can also shape people’s perceptions of air travel safety and lead them to believe that flying is more dangerous than it really is. Airplane accidents are often sensationalized and highly publicized by the media, making them more memorable and more prominent in people’s minds. This can cause individuals to perceive the risk of flying much higher than it actually is, leading them to avoid air travel even though it is statistically one of the safest forms of transportation. In reality, many less vivid and less memorable (i.e., psychologically unavailable) things are much more dangerous than air travel, such as falling down stairs, drowning, choking, and accidental poisoning.

Avoid falling prey to the availability heuristic and making serious misjudgments about the risks associated with different situations. Acknowledge that personal experiences and recent events may not accurately reflect the overall reality of the situation.

The Bikeshedding Fallacy: Why Trivial Matters Eclipse the Important Ones

May 26, 2023 By Nagesh Belludi Leave a Comment

Parkinson’s Law of Triviality, also known as the Bikeshedding Effect, is a mental model that underscores the inclination to place undue emphasis on a simple or easily comprehensible matter while ignoring more significant ones.

The term “bikeshedding” originated from a book by C. Northcote Parkinson (who gave us Parkinson’s Law.) To illustrate the idea of bikeshedding, Parkinson evokes a situation where a cross-disciplinary committee discusses the design of a nuclear power plant. Most of the members have a limited understanding of nuclear reactor design. Consequently, they will likely rely on the experts’ opinions on these critical matters.

However, when the discussion turns to a relatively simple topic like a humble bike storage shed for employees, everyone feels the need to contribute. This is attributable to the people’s desire to be recognized as valuable contributors and showcase their competence by providing their thoughts on something everyone can understand. As a result, the committee spends a disproportionate amount of time deliberating on trivial matters like the shed’s building material or paint color while turning its back on critical issues such as how to foolproof the fuel control system.

In essence, Parkinson’s Law of Triviality highlights the human tendency to focus on easy-to-understand matters, even if they are less important, because individuals feel more confident and productive doing them.

The Streisand Effect: When Trying to Hide Only Makes it Shine

May 25, 2023 By Nagesh Belludi Leave a Comment

In a famous episode of the beloved British sitcom Father Ted, the main character and his fellow priests embark on a protest against the airing of a film titled “The Passion of Saint Tibulus.” The movie portrays a Catholic saint disrespectfully, causing outrage among the Vatican and local bishops. However, despite the priests’ efforts, their parishioners do not heed to the boycott. To their dismay, media coverage of the priests’ pickets only amplifies the controversy, inadvertently making the film even more popular.

This comical scenario perfectly exemplifies the Streisand Effect, a phenomenon wherein attempts to suppress something end up drawing more attention to it.

The term “Streisand Effect” originated in 2003 when singer and actress Barbra Streisand sued a photographer for including an aerial photo of her Malibu home in a collection of images documenting coastal erosion. The lawsuit garnered significant attention to the photo, which had only been downloaded six times before the legal action. Suddenly, the photo went viral, accumulating millions of views and symbolizing the Streisand Effect.

A more recent example of this phenomenon occurred in 2017 when then-White House press secretary Sean Spicer attempted to quash a story about his meeting with reporters. Spicer had requested that the reporters keep the meeting private, hoping to prevent it from being reported. However, his efforts backfired spectacularly when the journalists went ahead and wrote about the meeting. During a press briefing, Spicer scolded the journalists for disregarding his wishes, inadvertently bringing even more attention to the original story. Had Spicer ignored the reporting, the story might have fizzled out quietly. Instead, it became a viral sensation, sparking numerous memes and jokes.

These examples serve as a powerful reminder to carefully consider the potential consequences before attempting to suppress or control information.

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Misguided Motivations: The Folly of Incentives in the Great Hanoi Rat Massacre

The Unintended Consequences of Incentive-driven Actions

The Irony of Fines as Deterrents in Action

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