THE SCARCITY MINDSET: MEANING AND BEHAVIORS ASSOCIATED – (CHAPTER 02)

***Continued from Chapter 01 (Covered previously: Meaning, Progressive & Degenerative impact, Loss Aversion, Psychological Roots)

Link to Chapter 01:

THE SCARCITY MINDSET: MEANING AND BEHAVIORS ASSOCIATED – (CHAPTER 01)

Forms in which Scarcity Mindset may Manifest

A) Believing That Situations Are Permanent: . . . . . . . . . . We think “Well, that’s just the way it is” instead of changing our frame of mind and seeking out our own happiness. Thinking this way depletes our energy, harms our self-esteem, and makes life a burden in general. Nothing is permanent. There are moments in our lives that will take our breath away. An abundant mentality thinks this way and sees life as dynamic and mouldable; something that is ours to shape and make to our liking. Perhaps most importantly, an abundant mentality sees life as an adventure.

B) Using Thoughts And Words Of Scarcity: . . . . . . . . . . What we tell ourselves ultimately becomes an extension of us if left unchecked. When negative thoughts arise, which is quite natural, one way is to become an observer and refuse to engage with them. Everyone is afraid of rejection. However, a recent study from Stanford reports that people tend to overestimate their chances of being rejected. Furthermore, even if we do happen to get rejected usually it is just a matter of widening our pool and continuing along our path.  Rejection doesn’t happen as often as we tend to think—and even if does, it’s simply a matter of moving forward.

C) Comparison/ Being Envious Of Others: . . . . . . . . . . This kills gratitude and stokes the fire of scarcity. When it comes to bettering our circumstances, we can consciously choose to devote our time and energy towards doing so and not wasting it on envious thoughts and feelings. Comparing ourselves to other people is a sure-fire way to stay stuck. The truth is we have no idea what the financial situation of another person or business is. Furthermore, everyone’s definition of success is different. It is important that we define what success means to us so that we can act accordingly.

D) Not Being Generous: . . . . . . . . . . When one lives with a scarcity mindset, they are more apt to “skim off the top” with time, money, relationships, etc. These actions have unintended consequences and make it less likely to generate the positive effects that we seek in our own lives. If we believe in lack, by default, we believe in giving less of ourselves. This does not necessarily mean money, it also means being generous by smiling, saying kind words, investing our time in people, and simply serving a greater good.

E) Overindulgence: . . . . . . . . . . When one thinks in terms of scarcity, they are most likely to overeat, overspend and, in general, become more gluttonous. This is because of another temptation: instant gratification. When we think of money as a scarce resource, there is a tendency to use that resource for pleasure. But pleasure could reinforce the scarcity mindset that one already possesses.

For instance: Let us say that we are having a tough day, feel down on ourselves, and need something positive. We could do something constructive like spending some time with the family (abundance)…or…we could buy that new, cool gadget that we have wanted with our credit card (scarcity). Here the abundant choice has absolutely nothing to do with money. We are focusing our time on what matters the most and not succumbing to some temporary pleasure that, while good for a time, does nothing more than add to the notion that we simply do not have enough.

F) There is too much competition: . . . . . . . . . .We live in an incredibly abundant universe, which means that there are plenty of clients, press opportunities, deals, contracts, blog readers and customers to go around. The best we can do is take care of our side of the street and focus on how our business serves people. Furthermore, we are living in a “share economy” where collaboration has taken centre stage. A classic example is AirBnB and Uber. The truth is this kind of economy, where people are sharing resources, talents, and skills rather than competing with one another, has opened the door for more opportunity within the markets.

G) There is not enough resources/ Economy is Bad: . . . . . . . . . .Lack of resources and funds stops people from doing a lot. Sometimes people use this as an automatic excuse out of fear. There is always someone making money regardless of the state of the economy. Those who curb their scarcity mentality are trained to see opportunity in everything. Many people found themselves in a position of having to create their own businesses because they could not find forms of traditional employment. We also have women starting businesses at a faster rate than ever before. Much of this came as a result of a bad economy.

It is like the old saying goes, Necessity is the mother of invention. It just so happens that often those inventions lead to abundance. In an effort to feel comfortable and secure, many would-be entrepreneurs forego creating businesses despite their desires because they feel like traditional employment is more secure.

Scarcity And Abundance Loops at Play (Using an example of Art)

Scarcity Mindset At Play (With Instances around us To Support Recognition)

Many organizations use psychological alteration to influence favorable decisions to maximize profit. Understanding how scarcity works allow us to be aware of such tactics and be prepared. Some examples of these are:

A) Time-limited scarcity: . . . . . . . . . In time-limited offers, the user needs to decide before a set deadline- this adds a sense of urgency to the decision-making process.

Instances: – – – – The most common real-life scenario is waiting until the last minute to complete projects/study for exams. In such cases, focus and attention levels increase and so does prioritizing. Flipkart indicates the count-down timer showing when the discounted price ends, which influences the user to grab the product deal before it expires.

B) Quantity-limited scarcity: . . . . . . . . .This is considered more powerful than time-limited scarcity, as availability depends on popularity or supply and is therefore unpredictable. This can be of the following types:

i) Limited Supply: – – – Items with limited supply are valued and desired more. Oil prices soar in countries like India due to limited supply, whereas the opposite is true in countries like Kuwait, Saudi due to availability. Amazon showcases “only 2 left in stock”, representing a product’s diminishing availability thus influencing the user to make the decision quickly.

ii) Popularity: – – –The popularity of an item represents the social proof that it must be good and valuable and triggers us to grab the deal. Myntra is used to showcase “18 people added this item to their cart” in their product page which informs the user that the product they are viewing is popular and might get over soon.

iii) Limited Supply and Popularity: – – – – This is more effective than the above two. Not only do we desire an item when it is scarce, but we also want it, even more, when we have to compete for it. Stamps and antique pieces are quite valuable because they are unique and cannot be easily supplied. People then outbid each other to possess the item which makes the value of the item increase significantly.Booking.com showcasing “only 6 rooms left” along with “6 people are looking at this moment”.

C) Access-limited scarcity:: . . . . . . . . .When access to certain information is limited, it is perceived as having higher value because of exclusivity, especially when it’s bound to social status.

Instances: – – – – Priority pass membership provides access to special airport lounges which include free complimentary food, alcohol, Wi-fi, and discounts on shopping. One Plus implemented an invite-only sales strategy which helped them create a great buzz in the market. People ‘lucky enough’ to be invited felt more privileged. This resulted in over 25 million visits to the site and close to a million sales in less than a year after launch.

D) Ban or Censorship:: . . . . . . . . .When anything interferes with our prior access to some item, we desire it more and want to have even more than before.

Instances: – – – – The ‘Romeo and Juliet’ effect highlights that the greater the parental disapproval of a relationship is, the more that relationship intensifies.

E) One-of-a-kind Special Events:: . . . . . . . . .‘Now or never’ scenarios. We seek to experience ‘once in a lifetime opportunities’, because of their unavailability later on.

Instances: – – – – Reliance Jio provided great introductory offers in India at the time of its launch which attracted a lot of customers. In Kanchipuram, the idol of Aththi Varadar is available for darshan once every 40 years for only a few days. Lakhs of devotees visit the temple to experience this once in a lifetime opportunity.

Ways to deal with Scarcity Mindset

Content Curated By: Dr Shoury Kuttappa

THE LONG VIEW (OR) BIG PICTURE THINKING – CHAPTER 02

***Continued from Chapter 01 (Covered previously: What Is Big Picture Thinking, Importance Of Big Picture Thinking, Detail Oriented Or A Big Picture Thinker- The Difference)

Link to Chapter 01:

THE LONG VIEW (OR) BIG PICTURE THINKING – CHAPTER 01

Identifying the Different Approaches – Approach Indicators

No matter which field we belong to – an aspiring entrepreneur, someone who’s putting together a dream team, or polishing our leadership skills, big picture thinking can help open up, innovative and unexpected creative paths, ideas and solutions.

Detail-Oriented Approach Indicators

• We prefer tweaking an existing plan than creating one from scratch
• We think over issues in such great detail that we sometimes miss the bigger picture
• We end up putting down or highlighting almost all notes
• We work towards high-quality work in most areas of our life and struggle with perfectionist tendencies
• We’re organized and/or like routine

Big Picture Approach Indicators

• We can easily spot patterns in problems
• We have a low tolerance for busywork, tedious errands, and routine
• We are good at figuring out an overview of strategies to get something done
• We get bored when we have to deal with the tiny details of a project
• People view us as incredibly creative and we like to come up with original ideas
• We don’t obsess over little details and therefore, solve problems fairly quickly

The Balance: Big Picture & Detailed Orientation- Components in Business

Strategies Towards a Big Picture Focus

A) Identify habits that limit our big picture thinking ability:. . . Our natural preferences often prevent us from blue sky thinking. So, the first step: break bad habits. Here’s a 3-step framework:

B) See things from a different lens: . . . Diving into big picture questions helps us connect the dots from our actions/tasks to the big goal. In this book, The Magic of Thinking Big, David J. Schwartz calls this, “see what can be, not just what is.” A good starting point is to ask ourselves, ‘what am I trying to achieve?’ Some big picture questions may be:

C) Think big by looking up: . . . The super basic rundown is that whenever we are focusing on the big picture, look up. And look down when not seeing the big picture.

A nice example of chunking reasoning is to think of transport. We can start with a motor car. If We chunk down, We might go to wheel, then rim, then rubber, then tread and even road. If We chunk up, We might go to transport, then to travel, then to vacation, then to wellbeing, etc.”

D)  Use bulleted lists to think big: . . . This is a trick many of use on a regular basis – making a bulleted list of the big picture and then adding sub-bullets to each pillar step. We can then step back and look at what can be added or removed from the sub-bullet pointers to keep the needle moving forward.

So why did this work? Because bullet points give us the visuals on the big picture. It’s challenging to connect the dots when we can’t see them. It’s also tough to translate the big picture if we don’t have it in front of us. What’s more, bullet points are easy to access and revise anytime. This, in turn, provides clarity.

E) Start journaling / mind mapping: . . . When we put our internal prattle on paper, we can easily spot where we are flailing or how it can be shaped to fit the bigger picture. To begin with, note down the big picture, followed by the small details pestering us. The trick is to make sure that it represents not only the big picture, but that it represents the detail, or actionable elements as well. Then record our thoughts to see if they deviate from the big picture plan. 

F) Schedule in some thinking time: . . . Often, when we rush to make a decision, we end up feeling sorry about it. When this happens, it’s usually for one of three reasons:

If we find ourselves nodding yes to any or all of these points, pencil in some uninterrupted, thinking time to our schedule. This space is crucial to making better decisions that rely on the big picture. We will also be able to rate our priorities better – what matters in the big picture, how it contributes to the big picture and so on. This will help us to stop hustling so hard, and ditch the shiny object syndrome.

Self Reflection- The Key

If we pause and contemplate how we are doing, we can make small tweaks that help us stay consistently productive. Some pointers to reflect on may be:

When we are busy executing any tasks in our lives for far too long, it’s easy to forget the details or the big picture depending on the type of thinker we are. For instance, as a big picture thinker, we may be excited by how our old and new ideas are connecting and work on outlining them, forgetting that the ideas have to be structured by many crucial details to work in the long term. The details person on the other hand might be buried in unending to-do-lists, feeling secure in the routines only to be disrupted by an enormous transition they didn’t anticipate.

Content Curated By: Dr Shoury Kuttappa

COGNITIVE BIASES: MANIFESTATION AND MITIGATION TECHNIQUES – (CHAPTER 02)

***Continued from Chapter 01 (Covered previously: Cognitive Biases and Debiasing, The Debiasing Process)

Link to Chapter 01:

COGNITIVE BIASES: MANIFESTATION AND MITIGATION TECHNIQUES – (CHAPTER 01)

Various Debiasing Techniques

There are a few general debiasing strategies (sometimes referred to as cognitive-forcing strategies), which can help deal with many of the cognitive biases. Many of these strategies are interrelated since the underlying principles behind them are similar.

A) Develop awareness of cognitive biases: . . . . . . . . . . . . . . . . . .>>  In some cases, simply being aware of a certain bias can help us reduce its impact. For example, consider the illusion of transparency, a cognitive bias that causes people to overestimate how well others can discern their emotional state, so that they tend to think that other people can tell if they are feeling nervous or anxious even in situations where that is not the case.

This happens because our own emotional experience can be so strong, we are sure our emotions ‘leak out.’ However, observers are not as good at picking up on a speaker’s emotional state as we tend to expect. What is inside of us typically manifests itself too subtly to be detected by others. We must relax and understand that if we become nervous, we will probably be the only ones to know.

B) Improve the way we present information: . . . . . . . . . . . . . . . . . >> This can affect the way people process it, and the same information, presented in two different ways to the same person, can lead to two very different outcomes. Accordingly, by modifying the way we present information to people, we can reduce the influence of certain cognitive biases.

The exact way in which this strategy can be implemented depends on the circumstances, and on the cognitive biases that we are trying to avoid. Presenting information in an optimal way, that encourages people to think through it rather than react intuitively, can go a long way toward mitigating various cognitive biases.

C) Favour simple explanations over complex ones: . . . . . . . . . . . . . . . . . >> This is rooted in the overkill backfire effect, which is a cognitive bias that causes people who encounter a complex explanation to reject it in favour of a simpler alternative, and to sometimes also reinforce their belief in the simpler alternative. When it comes to debiasing, simple explanations are often preferable to complex ones. This concept can be applied in many areas of the debiasing process, from how we think through past events to how we present information.

D) Slow down the reasoning process: . . . . . . . . . . . . . . . . . >> The benefit of doing this is that it allows to reflect on our reasoning process, and to think through alternative viewpoints, while also helping to avoid relying on biased intuitions. One way of encouraging this is to establish specific routines and protocols, which ensure that we slow down when necessary. Slowing down can help us reduce various cognitive biases, by enabling us to run an unrushed reasoning process, which is less influenced by our biased intuitions and emotional considerations.

E) Use nudges: . . . . . . . . . . . . . . . . . >> Nudges are simple modifications that are made to an environment to alter people’s behaviour in a predictable way, without forbidding any options or changing their incentives on a significant scale. This means that to count as a nudge, an intervention must be easy to avoid. For example, placing water bottles instead of soda cans near the register of a cafeteria counts as a nudge, while banning soda outright does not. Using nudges usually entails making changes to the people’s decision-making process, in a way that involves the implementation of other debiasing strategies.

One instance where nudges can be helpful is in the mitigation of the backfire effect, which is a cognitive bias that causes people to strengthen their support of their pre-existing beliefs when they encounter evidence which shows that those beliefs are wrong. This bias evident, for example, in the fact that when people are introduced to negative information about a political candidate that they favour, they often end up increasing their support for that candidate. One of the main ways to mitigate the backfire effect is to preface information that people might feel defensive about with questions that encourage them to process it.

F) Change incentives: . . . . . . . . . . . . . . . . . >> In theory, there are two parameters related to incentives that we can modify in order to reduce the likelihood of biased decision-making: –

1. . . . . . increase the benefits (positive feedback or rewards) of making a non-biased decision. 
2. . . . . .  increase the penalties (negative feedback or punishments) for making a biased decision. 

However, in practice, changing people’s incentives does not always work, and might even backfire in some cases, such as when people feel actively antagonized by the changed incentive structure. Since the effects of changing incentives are difficult to predict, it’s important to be wary if we are thinking about changing them as part of debiasing process.

G) Increase involvement in the decision-making process: . . . . . . . . . . . . . . . . . >> Increasing how involved people feel about a certain decision and how much they care about it can reduce certain cognitive biases. By ensuring that people care more about making an unbiased decision, we can make them more open to using various metacognitive strategies, which can help debias successfully.

There are many ways in which we can increase people’s involvement in the decision-making process. One of the main ones is to emphasize their role as active participants in their own reasoning process, and to encourage them to rely on conscious reasoning, as opposed to subconscious intuitions. In doing this, we can ask people to clearly outline and verbalize their reasoning process, which can help them identify gaps in their logic, and think in a more rational way.

H) Increase personal accountability: . . . . . . . . . . . . . . . . . >> When people know that they will be held accountable for their decisions and that their decisions will be scrutinized by others, they tend to put more effort into the decision-making process, which can sometimes help people mitigate certain cognitive biases.

I) Elicit feedback from others: . . . . . . . . . . . . . . . . . >> Receiving feedback from other people can help reduce certain cognitive biases. This is especially noticeable in the case of biases that influence people’s perception of themselves, such as the worse-than-average effect, which causes people to incorrectly believe that they are worse than other people at performing certain difficult tasks. However, when considering other people’s feedback, it is important to remember that they are also prone to various cognitive biases. Therefore, it is important to always be wary when deciding who to ask for feedback, and when deciding how to implement that feedback once we receive it.

J) Standardize the decision-making process: . . . . . . . . . . . . . . . . . >> Deciding to make our decisions in a standardized way can help ensure that we use all the necessary debiasing techniques that we need to go through an optimal decision-making process.

For example, the use of a simple mnemonic checklist was shown to help doctors apply important metacognitive strategies and make better decisions in a clinical context.

K) Create favourable conditions for decision making: . . . . . . . . . . . . . . . . . >> We can facilitate the debiasing process by improving the conditions in which you make decisions. While it is often difficult to make those conditions absolutely perfect, even minor changes can be monumental in helping improve our ability to make rational decisions.

1. Improve internal conditions. These are factors that reduce our cognitive capacity, such as sleep deprivation, as well as factors that increase our cognitive demands, such as multitasking.
2. Improve external conditions. These are factors that reduce our cognitive capacity, such as high noise levels, as well as factors that increase our cognitive demands, such as social pressure.

Bias-Specific Debiasing Techniques

There are also some debiasing techniques that are applicable in more specific cases. They can only help deal with a certain type of bias. The advantage of such techniques is that even though they are applicable in fewer cases, they can often be more effective than generalized debiasing strategies. Some of them are:

A) Reduce your reliance on subjective memory: . . . . . . . . . . . . . . . . . >>  Research shows that our memory of past events is subjective, malleable, and prone to various distortions.

For example, there is the rosy retrospection bias, which is a cognitive bias that causes people to recall past events in a way that is more positive than how they experienced those events in reality. This bias can, for example, cause us to remember a past vacation as having been more enjoyable than it really was.

One way to mitigate these issues is to reduce reliance on such memory, by using objective records to examine past events. The main advantage of this technique is that we are better at remembering where information is stored and how to retrieve it, than we are at remembering the information itself.

B) Consider alternative outcomes to past events: . . . . . . . . . . . . . . .. . >> This can also help deal with some of the biases that distort our view of these events. For example, the choice-supportive bias is a cognitive bias that causes people to retroactively ascribe more positive features and fewer negative features to an option that they chose. This bias can, for example, cause to justify a purchase that we made by overemphasizing the positive aspects of the item that we decided to buy. By considering alternative items that we could have purchased, we could potentially mitigate the choice-supportive bias, which could help view the purchase in a clearer, more unbiased way.

When doing this, our focus should be on trying to find a small number of highly plausible alternative outcomes. This is because, as we saw earlier, struggling to find a large number of alternative outcomes to an event can be counterproductive, and could actually hinder our ability to debias.

C) Create psychological distance: . . . . . . . . . . . . . . . . . >> Consider the spotlight effect, which is a cognitive bias that causes people to overestimate the degree to which others are likely to notice their actions or appearance, meaning that it causes people to assume that others are likely to notice it if they wear something embarrassing or say something stupid, even if that is not the case. We experience the spotlight effect because when we think about how other people see us, we tend to anchor their viewpoint to our own. Since we are so used to seeing things from our own perspective, we struggle to accurately judge how other people see us. One way to reduce the impact of this is to create psychological self-distance when we think about how other people view us. This entails trying to look at ourselves from a perspective that is different from our own, such as from the perspective of the person that we are talking to.

Creating psychological distance can also help fight against other types of biases. For example, the authority bias, which is the tendency to obey the orders of an authority figure, even when you believe that there is something wrong with those orders. One way in which people managed to cope with the authority bias was by increasing the physical and psychological distance between themselves and the authority figure. For instance, when the authority figure gave instructions through a phone, and was not in the same room as the person receiving the instructions, people were more likely to think rationally.

In Conclusion

It is important to keep in mind that different debiasing strategies will vary in their effectiveness and will have a different impact in different scenarios.

**Source Credits:

The book- The Art of Thinking Clearly -by Rolf Dobelli

The book- Predictably Irrational -by Dan Ariely
The book- The Illusion of Transparency and the Alleviation of Speech Anxiety -by Savitsky & Gilovich

The book- Nudge by -Richard H. Thaler & Cass R. Sunstein

Content Curated By: Dr Shoury Kuttappa.

COGNITIVE BIASES: MANIFESTATION AND MITIGATION TECHNIQUES – (CHAPTER 01)

Cognitive bias mitigation (or Debiasing) is the practice through which we reduce the influence that cognitive biases have on people, to enable them to think in a more rational and optimal manner. Cognitive biases are systematic patterns of deviation from rationality, which occur due to the way our cognitive system works. Cognitive biases affect us in various areas of our life, from the way we interact with others to the way that we form our political opinions. Since these biases cause us to think and act in an irrational manner, their influence can be detrimental, which is why people often want to be able to mitigate them.

Examples of Cognitive Biases

Cognitive biases can influence our thinking in diverse ways, including the undermentioned:

A) Cognitive biases can affect how we form impressions of other people: -. . .  For example, the halo effect is a cognitive bias that causes our impression of someone in one area to influence our opinion of that person in other areas. This bias can cause us to assume that a person is highly knowledgeable and has an interesting personality, simply because they are physically attractive.

B) Cognitive biases can affect how we acquire information: -. . . . For example, the ostrich effect is a cognitive bias that causes us to avoid situations where we might encounter information that we perceive as negative. This bias can cause us to avoid going to the doctor, if we believe that the doctor will have bad news for us, that we do not want to deal with.

C) Cognitive biases can affect how we prepare for the future: -. . . . For example, the pessimism bias is a cognitive bias that causes us to overestimate the likelihood that bad things will happen. This bias can cause us to assume that we are going to do badly on an exam, even if we are prepared for it and it is likely that we will do well.

Does Cognitive Debiasing Work?

Research shows that cognitive debiasing does work in some cases, and that proper training and interventions can help reduce certain biases. However, there are situations where it does not entirely work. For example, one study examined people’s optimism bias, when it comes to believing that one’s own risk of suffering from health issues is lower than that of others.

Despite attempts to correct this bias, the researchers found that people’s optimism bias persisted in the face of various debiasing interventions. This demonstrates that debiasing is not always straightforward and finding the appropriate debiasing techniques to use in a certain situation can sometimes be a difficult process.

Nevertheless, it is always ideal to function under the belief that debiasing might be effective. This means we should try and reduce cognitive biases where possible, as long as doing so is not associated with an excessive cost/ repercussion. It is important to be realistic when deciding on debiasing goals, and when we are assessing whether or not our debiasing attempts will be successful.

How To Debias: – Overview Of The Debiasing Process

There are several stages in the debiasing process.

First, a cognitive bias is triggered. Then, we must become aware of this bias, and realize that it has been triggered. Once we realize that the bias has been triggered, we must conclude if there is a need to debias and make a conscious choice and commit to debiasing. After (or if) we do choose to debias, we need to start by assessing the bias, which involves determining in what way the bias impacts us and (or) the people around us. Once we understand what we are dealing with, we need to select the appropriate debiasing technique and apply it. Once successfully debiased, we can now move on to make an optimal decision.

We can also add an additional step, by reassessing the situation after we apply the debiasing strategy, to determine whether the debiasing attempt worked. Else, we can repeat the previous step, and either implement a different debiasing strategy or attempt to implement the previous one again, until successful at debiasing.

Two things to be cautious of are:

a) It is often difficult to accurately assess whether or not we have debiased successfully.

b) Repeated debiasing attempts can often be difficult to implement in practice, especially if we are trying to debias someone else.

Exercising Metacognitive Strategies

Metacognition, which refers to the ability to be consciously aware of your thought process, stands at the core of cognitive-bias inoculation and mitigation. Metacognitive awareness aids in: –

a) being aware of the various cognitive pitfalls and errors that we might encounter when processing information and making decisions,

b) ensuring that we successfully identify cases where cognitive biases affect people,

c)  successfully applying the relevant debiasing strategies, and,

d) ensuring that we accurately assess how successful the debiasing attempts are.

Differences between different debiasing techniques

***To be continued in Chapter 02 (Various Debiasing Techniques for everyday situations)- Link to Chapter – 02:

COGNITIVE BIASES: MANIFESTATION AND MITIGATION TECHNIQUES – (CHAPTER 02)

*Source Credits:

1. The book- Thinking, Fast and Slow by Daniel Kahneman
2. The book- Nudge by -Richard H. Thaler & Cass R. Sunstein

Content Curated By: Dr Shoury Kuttappa.

LESSONS FROM FARMING: LEADERSHIP AND MANAGEMENT BEHAVIOURS

Farmers pay attention to the details. It is not always an innate quality. By sheer hard work, constant research, an investment in time, and consistent habits he or she fosters growth in ways others may not understand. A farmer works harder for better results. We could easily be talking about leadership: it is so much like gardening.

As leaders, it is too easy to see the role as one of domination and control. We are in charge and we want everyone to know that. Yet, if we tend a garden or a farm, we learn quickly that the plants have their own way of surviving in the wild. We cannot pull on the green stems. A nurturing approach is not “an” option in leadership; it is the only option. It is also something you can learn with practice and patience, like farming and gardening. To lead effectively, we must nurture. In many ways, the gardening analogy is better than any other analogy (say, running a race, rowing, or building a house). Some things that come out well are:

Strengthen the corner post:. . . . . . . . . . . . . . . When building a fence, it is essential to have solid corner posts. Their purpose is to provide staying power of the tension so that the barbed wires stay taunt and useful. To gain this strength, a farmer needs to ensure the foundation for the hole is deep enough, well compacted, and braced to support the wires extending from at least two directions. We must be well-anchored and well-grounded to support the tensions and the reliance required to do the job consistently and continuously.

Plant well, harvest right:. . . . . . . . . . . . . . .. There is more planning which goes into farming than we might realize. Key questions need to be answered such as:  What do we plant? Where do we plant it? Has the right soil preparation been done? When do we plant it? How do we care for it during the growing season? When do we harvest it? How can we maximize my harvest? Plan proactively, balancing timing with the right preparation to get the most results from all resources involved.

Look for the growth:. . . . . . . . . Growth will happen, especially with the most teachable people. Sometimes, we must look a little harder. We may have to get down on our hands and knees to see the germination in the farm, but when the first signs of life are observed, it is a wonderful discovery. The kind of excitement from seeing something grow needs only to be felt. If only we acted that excited as leaders in the workplace.

Pick rocks:. . . . . . . . . . . . . . .. There are mundane jobs which need to be done to prevent troubles later or at critical times. Picking rocks is one of those responsibilities. Big rocks translate into less soil to grow crops. Small rocks create potential problems at harvest – a rock going through the equipment can result in costly repairs and delays. Do the mundane jobs to clear the environment of potential problems and get the most out of what you have.

Nurture in any way possible: . . . . . . . . . New growth in a garden or a farm is hard to spot and even harder to nurture. It is a bit like the security industry. In security, we have to use any means possible to protect our files. Install a firewall, use anti-virus software, train employees. In farming and gardening, we have to build a fence, add plant food, and cover the seedlings if there is an imminent freeze. Great leaders do the same. Leadership is primarily an act of defence. You defend employees, protect them, give them a place to do their jobs. Any other arrangement can quickly turn into a dictatorship.

Plant seeds and give space to the sowers: . . . . . . . . . The best leaders know how to plant the germ of an idea. They are subtle. “What would it take to get this new product launch a few more clicks on Facebook?” Maybe we already know the answer. Planting a seed is a way to encourage others to think, to foster ambitious ideas, to encourage creativity. The alternative to this leadership style is being the one who always has the best idea. To employees, that is like taking a fully grown tomato plant, digging a hole, and placing it into the garden. The shade alone from that massive stalk will kill the seeds (and the ideas). When newcomers bring ideas from other industries and businesses, are they welcomed or are they rooted out because “that’s not how we do things here”? True leaders think about the whole garden.

Get your hands dirty:. . . . . . . . . . . . . . .. Farmers are unafraid of a little or a lot of dirt. From planting to harvesting and from cattle to chickens, farmers will get their hands dirty. They are in the middle of the action; and they know the only way to help get things done is to get your hands dirty. Jump in and activate the work that needs to be done.

Remove impediments: . . . . . . . . . Maybe the primary act of all great leaders is to remove impediments. Weeds always inhibit growth in a garden. We have to get creative about this process. Resolve conflict. Reward people what they are worth so they can perform their job. Remove distractions and confront problems. Like the master gardener, we are the primary weed control expert charged with encouraging growth.

Give your word, keep your word:. . . . . . . . . . . . . . .. Farmers are helpful. If a neighbor needs a helping hand, it is extended. In rural communities, few words are generally spoken, but the words are always backed-up with action. There are few written agreements in farming; your hand-shake and your word are your commitments. If you say you are going to do something, you do it. Words and actions are bounded tightly together. Offer your commitment, keep your commitment. In the end, your reputation will be what remains.

Praise consistently: . . . . . . . . . Great leaders carry a watering can at all times. The job is highly dependent on our ability to nurture. Forget the sandwich principle (e.g., every negative remark should be “sandwiched” with one slice of praise on top and another on the bottom). Just praise. People have enough negative markers in their life for what they are doing wrong. We need to be the person who tells them what they are doing right and maybe, just maybe, they will grow into something amazing.

Consider the “season.” : . . . . . . . . .  In today’s 24-hour global economy, it would appear that there is no season, nothing that distinguishes night from day. But the smart leader watches the sky, reads the clouds, and can tell when there are shifts to indicate a new season. Bring products to market at the wrong time or introduce an idea without understanding timing and the “garden” can quickly resemble a piece of scorched earth.

Give credence to the unexpected and control what you can control.: . . . . . . . . .  The pandemic has not only raised havoc but spawned dangerous storms throughout the world. Leaders face such conditions: market downturns, a coup in Africa, airline strikes, terrorist attacks. A great leader takes all precautions and then remains flexible and ready for the unexpected. Scenario planning, a strategy first employed by Royal Dutch Shell, brings experts from a wide range of fields together to discuss actions if different scenarios take place. Scenario planning allows you to think out—in advance—various options. In like fashion, a master gardener always has all the tools, sprays, and plant potions necessary for probable surprises.

Feed different plants differently: . . . . . . . . .. Not every plant needs the same thing, yet all plants must eat. A “garden-wise” leader understands “nothing is so unequal as the equal treatment of unequals.” Just as each voice has its own unique sonogram, each employee, associate, and stakeholder needs a unique blend of “food.” For some, the “food” is numbers. For many, it is the opportunity to learn and advance in knowledge. For others, it is the engaging nature of the work itself that offers fulfilment.

Weeding is backbreaking work: . . . . . . . . .. A great leader hates this part of the task. It means fact-finding, accountability, and time. Not everything that is “green” belongs in my garden. Not every associate belongs with you. In fact, firing customers at times can also be the healthiest long-term fertilizer for a vibrant business.

Store for a better day:. . . . . . . . . . . . . . .. After the crops are harvested, there are two options:  sell right away or store it. At times, the money may be needed sooner rather than later. Usually, the harvest season is not the best time to sell – supplies higher, prices lower. Also, you may need reserves to help out during the bad times, when the weather delivers a blow and crops suffer. A buffer is needed from time-to-time. Keep a reserve – funds, personal energy, time, etc. Know the critical resources and be ready for the droughts and the long haul.

Leaders must take time to stop and “smell the roses.” We can get so overwhelmed with the “work” of our garden that we forget why we planted it. When we step back and gaze at our enterprise, are we pleased with what we see?

Content Curated By: Dr Shoury Kuttappa

FOLLOW THROUGH BEHAVIOURS: THE AKRASIA EFFECT

A brief story:

In the summer of 1830, Victor Hugo was facing an impossible deadline. Twelve months earlier, the French author had promised his publisher a new book. But instead of writing, he spent that year pursuing other projects, entertaining guests, and delaying his work. Frustrated, Hugo’s publisher responded by setting a deadline less than six months away. The book had to be finished by February 1831.

Hugo concocted a strange plan to beat his procrastination. He collected all his clothes and asked an assistant to lock them away in a large chest. He was left with nothing to wear except a large shawl. Lacking any suitable clothing to go outdoors, he remained in his study and wrote furiously during the fall and winter of 1830. The Hunchback of Notre Dame was published two weeks early on January 14, 1831.

Procrastination is usually a “yes” or “no” question”

For more conventional instances, consider addictive behaviour patterns or compulsive traits like over-shopping and blowing the budget, or manic media use; maybe even something like starting an argument one “knows” one will regret and that will lead to trouble or grief.

Having an explanation seems good because it suggests some kind of intervention based on that knowledge, but in some cases, it just doesn’t work. Yet we still feel the hypnotic pull toward explanations, even if the terms being explained are just accepted in a very uncritical way.

When we make a decision to do something or not, our brain usually has a “gut instinct” answer of yes or no, before the words even come out of the mouth. We consider what benefit it has first, and then what benefit it may have for another person. Then we consider other criteria like time, strength, and effort it will take before we actually decide what it is we are going to do. This all happens in a split second before we commit, and the answer comes out of the mouth.

Often, procrastination occurs when you have decided to complete a task, but you keep postponing until later without consciously choosing to do it then. Not all procrastination is bad procrastination. There are two types of procrastinators- active and passive.

Though you may be convinced by this that you are an active procrastinator the truth is most of us are actually passive procrastinators. We delay our work just because we can and with no justifiable reason.

Maybe it is better to try to “own” the behavior rather than blaming externals. So, it is not necessarily a useless idea. The concept of Akrasia is a sort of promise the executive self makes to itself about self-control and autonomy. And it is also the basis for promises one makes to other people about accountability, or rather, explanations for the occasional breakdown and exception.

The Ancient Problem of Akrasia
Human beings have been procrastinating for centuries. Even prolific artists like Victor Hugo are not immune to the distractions of daily life. The problem is so timeless, in fact, that ancient Greek philosophers like Socrates and Aristotle developed a word to describe this type of behavior: Akrasia.

Human behaviour is complex, and we interpret through a network of concepts which themselves are cultural and philosophical constructs. If the typical definition of “akrasia” is “weakness of will”, then what is will? If will is some vaguely defined power of “mind”, then what is mind? If mind is an active presence within “self”, then what is self? … and so on.

Akrasia is the state of acting against your better judgment. It is when you do one thing even though you know you should do something else. Loosely translated, you could say that akrasia is procrastination or a lack of self-control. Akrasia is what prevents you from following through on what you set out to do. Why would Victor Hugo commit to writing a book and then put it off for over a year? Why do we make plans, set deadlines, and commit to goals, but then fail to follow through on them?

Also, akrasia is loss of self-control, in the sense of action contrary to reason. In akrasia, there is an ingrained habit in an individual, of the non-rational elements of the soul subverting the rational capacities. Action is usually guided in a range of ways by reason. So akrasia is interesting because it involves a departure from a norm.

Why We Make Plans, But Don’t Take Action
One explanation for why akrasia rules our lives and procrastination pulls us in has to do with a behavioural economics term called “time inconsistency.” Time inconsistency refers to the tendency of the human brain to value immediate rewards more highly than future rewards.

When we make plans for ourself — like setting a goal to lose weight or write a book or learn a language — we are actually making plans for our future self. We are envisioning what we want our life to be like in the future and when we think about the future it is easy for our brain to see the value in taking actions with long-term benefits.

When the time comes to make a decision, however, we are no longer making a choice for our future self. Now we are in the moment and our brain is thinking about the present self. And researchers have discovered that the present self really likes instant gratification, not long-term payoff. This is one reason why we might go to bed feeling motivated to make a change in our life, but when we wake up, we find ourselves falling into old patterns. Our brain values long-term benefits when they are in the future, but it values immediate gratification when it comes to the present moment. This is one reason why the ability to delay gratification is such a great predictor of success in life. Understanding how to resist the pull of instant gratification—at least occasionally, if not consistently—can help you bridge the gap between where you are and where you want to be.

A Framework to Beat Procrastination

Strategy 1: Design your future actions.

When Victor Hugo locked his clothes away so he could focus on writing, he was creating what psychologists refer to as a “commitment device.” A commitment device is a choice we make in the present that controls our actions in the future. It is a way to lock in future behavior, bind us to good habits, and restrict us from bad ones.

There are many ways to create a commitment device. We can:

The circumstances differ, but the message is the same: commitment devices can help us design our future actions. The goal is to find ways to automate our behaviour beforehand rather than relying on willpower in the moment.

Strategy 2: Reduce the friction of starting.

The guilt and frustration of procrastinating is usually worse than the pain of doing the work. In the words of Eliezer Yudkowsky, “On a moment-to-moment basis, being in the middle of doing the work is usually less painful than being in the middle of procrastinating.”

So why do we still procrastinate? Because it is not being in the work that is hard, it’s starting the work. The friction that prevents us from acting is usually centred around starting the behaviour. Once we begin, it is often less painful to do the work. This is why it is often more important to build the habit of getting started when we are beginning a new behaviour than it is to worry about whether or not we are successful at the new habit.

We have to constantly reduce the size of our habits. We need to put all of the effort and energy into building a ritual and make it as easy as possible to get started. We need not worry about the results until the art of showing up is mastered.

Strategy 3: Utilize implementation intentions.

An implementation intention is when we state our intention to implement a particular behavior at a specific time in the future. For example, “I will exercise for at least 30 minutes on [DATE] in [PLACE] at [TIME].” There are hundreds of successful studies showing how implementation intentions positively impact everything from exercise habits to flu shots. It seems simple to say that scheduling things ahead of time can make a difference, but implementation intentions can make us 2x to 3x more likely to perform an action in the future.

Fighting Akrasia
Our brains prefer instant rewards to long-term payoffs. It is simply a consequence of how our minds work. Given this tendency, we often must resort to crazy strategies to get things done—like Victor Hugo locking up all of his clothes so he could write a book. But it is sometimes worth to spend time building these commitment devices if our goals are important to us.

Aristotle coined the term Enkrateia as the antonym of Akrasia. While akrasia refers to our tendency to fall victim to procrastination, Enkrateia means to be “in power over oneself.” Designing your future actions, reducing the friction of starting good behaviors, and using implementation intentions are simple steps that you can take to make it easier to live a life of Enkrateia rather than one of Akrasia.

Content Curated By: Dr Shoury Kuttappa.

VUCA AND ITS RELEVANCE

What is VUCA

VUCA is an acronym that stands for volatility, uncertainty, complexity and ambiguity, a combination of qualities that, taken together, characterize the nature of some difficult conditions and situations. The term is also sometimes said to stand for the adjectives: volatile, uncertain, complex and ambiguous.

The term VUCA originated with the United States Army War College to describe conditions resulting from the Cold War. The VUCA concept has since been adopted throughout businesses and organizations in many industries and sectors to guide leadership and strategy planning. An awareness of the forces represented in the VUCA model and strategies to mitigate the harm they might cause are integral to crisis management and disaster recovery planning.

Volatility

Volatility refers to the propensity for changing from one state to another. Under certain conditions, volatile materials can dangerously explode, changing rapidly from stable to disordered. This provides another implication that volatile conditions are dangerous conditions.

The interesting thing about volatility is that even though it might represent danger, it can also represent opportunity. The point is this: volatility is a good if you are seeking opportunities and bad if you like predictability.

Uncertainty

Uncertainty refers to the lack of specific information, which can be found by answering specific questions. Asking “What is the probability that it will rain today?” is a question that is an attempt to characterize uncertainty.

Complexity

Complexity refers to the number of components, the relationships between the components. The normal layperson’s usage of the complexity tends to oversimplify the scope of practical problems facing leaders in organizations. Complexity differs from “complicated.” A complicated issue can be understood by analysis and investigation beforehand.

Ambiguity

The Latin prefix “ambi-“refers to multiple or non-fixed, such as its use in the words ambiance and ambidextrous. Ambiguous language is language that can be interpreted differently. Ambiguity is a cause of stress for many people (especially those who work in well-structured organizations) as the disorder implied by ambiguity is not comfortable. People tend to avoid, ignore, or minimize ambiguity.

VUCA is a condition that calls for questions — lots of them. Penetrating questions that ferret out nuance. Challenging questions that stimulate differing views and debate. Open-ended questions that fuel imagination. Analytical questions that distinguish what you think from what you know. The only thing you know with certainty about your strategy is that it’s wrong. Persistent probing will help you discern if it’s off by 5 percent or 95 percent before events swiftly reveal the answer to you. Agility is critical because strategic adjustments must be made continually.

VUCA Examples

Of course, each of the four characteristics of VUCA rarely happens in isolation. For example, you might be experiencing volatility and complexity at the same time (A sudden change in leadership at the same time as your competitor launches a new product). We need to think about which of these examples and characteristics, or VUCA combinations, best describes the eco-system in which we currently do business.

Which Aspect of VUCA Do You Prioritize?

Making the ‘Shift’ Happen

Now that you have identified the characteristics of VUCA that are most relevant to your current situation and before you start thinking about specific strategies and tactics to be effective, it is time to make the mindset shift to ensure you are setting yourself up for success.

Mindset Shift: From Planning to Preparing

In stable contexts, we can rely on the tried and true practices of planning and analysis. When the future, not to mention the present, is uncertain and unpredictable, we must make a mindset shift toward preparing and enter a state of readiness.

The best practices below fall into two key and interdependent categories:

1) People and talent development strategies., and

2) Systems and processes.

They are interdependent because you can have the best systems and processes in the world and if you have not developed your people to make the necessary mindset and skill set shift, you will be disappointed in their performance when it counts most.

Which VUCA characteristics are most relevant to the challenges and opportunities you are confronting in:

1. your organization?
2. Department?
3. Your role as a leader?

As you read the following best practices for leading through VUCA, pay particular attention to those that are within your span of control or influence.

Volatility

Characterized by an unpredictable, unstable situation, though not necessarily complicated. Information is available as events unfold.

• Train for role elasticity and develop “generalizing specialists.”
• Improve decision-speed
• Build redundancy into your system and build slack into the supply chain
• Leverage technology and alternative strategies to ensure continuous communication
• Regularly train for various disruptions, and ID needed skills, knowledge, and talent
• Tap your hi-potentials for temporary assignments

Uncertainty

Characterized by a lack of key actionable information, such as timing, duration, cause and effect.

• Tap your Relational Web to:
  • Reduce uncertainty
  • Gather additional information and insight, including customer data, market analytics
  • Improve access to market insights via resources like slack and yammer
  • Reflect on and share experiences of successfully working through uncertainty
• Identify the givens of the current situation and focus on what is within your span of control
• Provide or seek career-pathing and “stay interviews” so you can identify people’s interests and strengths to keep them engaged
• Implement agile performance appraisals and regularly provide feedback and acknowledge agile success

Complexity

Characterized by an overwhelming amount of information, interconnected or moving parts and relationships.

• Improve communication, collaboration and coordination
• Clarify decision-rights
• Adapt organizational structure and expertise to match the complexity of the context
• Identify people who have strengths and experience in dealing with complexity
• Recruit and develop people who can thrive in complexity.

Ambiguity

Characterized by a lack of information and precedent, making the ability to predict the impact of actions a challenge.

• Create (some) clarity. Make space for interactions
• Re-engage and recommit to your purpose
• Understand and prioritize user needs
• Focus on your MVP (Minimal Viable Product)
• Practice rapid prototyping to fail faster and learn quicker
• Experiment and pilot to discover what you don’t know
• Make time to learn the lessons from experience and carry them forward

Limitations: These ideas are not intended as a prescription for the issues and opportunities that are most pressing for you and your fellow agile leaders. They will help get the conversation started and lead to thoughtful strategic and tactical approaches that build your competence, capacity, and confidence to effectively lead through VUCA.

Content Curated By: Dr Shoury Kuttappa