A Map Is Not A Territory

“I have seas but no sharks, rivers but no water; forests but no birds; cities but no people. Who am I?”

My daughter nagged me with a riddle while I was busy taking pictures of the sky outside the plane window. The simple joy of flying after a long time enhanced with a beautiful setting of the sun outside the window had my attention. She nagged again and then she blurted the answer, “a map.” A map, the word, took my husband seated next to her, to the GPS in his car and how the car starts beeping at every point where he crosses the defined speed limit. His frustration came out animatedly especially when he talked about the speed limit of 30km/hr. 

Cars are getting designed with behavioural controls like alarm beeps if you cross a certain speed limit. These frameworks exist to guide and maneuver human behaviour. Google Maps and other inbuilt GPS systems work as useful guides through their easy, nearly accurate navigation systems unless they start beeping. At that moment, to get away with the annoyance, you remind yourself, a map is not the territory!

“A map is not the territory” is a statement coined by Alfred Korzybski. The mathematician presented this in a paper in 1931 in New Orleans. He used it to convey the fact that people often confuse models of reality with reality itself. In Korzybski’s words,

“A map may have a structure similar or dissimilar to the structure of the territory.” 

He meant that people in general do not have access to absolute knowledge of reality, but merely possess a subset of that knowledge that is then adapted through the lenses of their own experience. In today’s Habits for Thinking column, I want to bring your attention to a way of thinking which hinges around this concept that, ‘a map is not the territory.’

The map here means the tool to understand reality like theories and models. Like a physical map helps us to understand a space, similarly a mental map, is an abstract way of understanding things that our mind adapts to. To understand the complexity of a subject, the human mind creates a map or a model internally. It is just an understanding in a short form. What we have in our mind  may be flawed because it is just a version of the actual explanation. Secondly, it may be incomplete, as one can miss out on a point. Also, it may not be interpreted in totality as the reality. These understandings, that a model can be flawed or incomplete or under-interpreted reflects the understanding of the statement that the territory, the reality, can be different from the model. 

Let me explain to you how it impacts our lives: 

Several models of explanations that are in our head and in our workflows and decision making are just models. These are not realities. When we repeatedly get into the habit of using that model, without questioning or analysing them, we may not be able to identify the problem in our decision making and therefore may end up in a failed outcome. This stands true for both personal life and work life. 

An illustration in a personal life: 

In architecture and urban planning, there is a term called desire lines. What are desire lines? 

“Desire lines” are paths & tracks made over time by the wishes & feet of walkers, especially those paths that run contrary to design or planning. Free-will ways. Aka “cow-paths” & “Olifantenpad” (elephant trails) says Robert Macfarlane

These are essentially short cuts or paths made away from the actual path, or in absence of a path by walking through a hedge, or a sharp corner of green patch as the shortcut etc. Despite well laid walking paths, these human footprints made paths sprout in areas where they are not designed to be, all created by a certain human behaviour. People create desire paths for three primary reasons: time efficiency, experience, and resistance, in the sense that why would I do ‘X’, if I could do ‘Y’, as quoted in an article. Some places are left marked with desire-paths, but some well maintained urban places like manicured green lawns prevent pedestrian behavior crossing  by creating a series of design elements like rope fences or some extra pots and plants as vertical hindrances. 

Our mental models are also like that. We know we have to behave in a certain way but we find routes as shortcuts, like desire-lines. Because why not? And, sometimes that shortcut becomes a habit which gets difficult to change later. Take an example of a mother reprimanding his child for a misdeed and cancelling his screen time as a lesson and the other parent, the father, quietly letting the child watch the screen, because he is just a child. The map here is a discipline model and the child with his misdeed creates his desire-line. The mother aims to mend that desire-line created by the child by cancelling his screen time, but the other parent allows it. This leads to an altered model of discipline and ethics in the child’s mind. Small example, but it compounds over the years.

At workplaces:

At work places, in management, in education, models or frameworks are extensively used. These are great reference tools. However, these are not end goals but just tools to aid decision making. Nassim Nicholas Taleb, author of Black Swan, Fooled by Randomness and other books does not believe in the entirety of a model.  

‘A model might show you some risks, but not the risks of using it. Moreover, models are built on a finite set of parameters, while reality affords us infinite sources of risks.’ 

Nassim Nicholas Taleb

He talks about a specific model used in investing called as VAR and how the model is limiting in its capacity. “It summarizes the expected maximum loss (or worst loss) over a target horizon within a given confidence interval. It is the uniqueness, precision and misplaced concreteness of the measure that bother me. I would rather hear risk managers make statements like -’at such price in such security A and at such price in security B, we will be down $150,000.’ They should present a list of such associated crisis scenarios without unduly attaching probabilities to the array of events.” He continues, “If financial engineering means the creation of financial instruments that improve risk allocation, then I am in favor of it. If it means using engineering methods to quantify the immeasurable with great precision, then I am against it.” 

Immeasurable is the keyword here. Many models that work on risk analysis do not have the capacity to measure the risk in entirety. However people still use and accept such models. Sometimes these inadequacies in the models cause failure. 

#Ideastoaction: A map is not a territory is a concept that needs to be used in the decision making process. 

  • Models, as explained, are maps that are not territories.
  • Through varied and unique experiences, these models develop desire-lines, which may lead to a good decision or a bad decision. 
  • When making decisions based on models, one must step back and understand if there could be flaws or incomplete interpretation. This will help in better decision making. 

Google Maps has introduced a few new features this March where it allows you to draw a missing lane or to share actual photos as updates of a place. Maps evolve to be flawless, so should decision making models. 

Leaving you with Nicholas Taleb’s statement:

Never cross a river because it is on average 4 feet deep.” 

Nassim Nicholas Taleb

For Continued Success, Focus On Lead Measures

Not pandemic, but GST implications converted Amar and Bharat, two brothers, working as contract employees in a warehouse and on a toll plaza respectively, into egg-roll sellers in a neighbourhood. Their father worked at my parent’s house in Bihar and both these brothers had left Bihar in pursuit of a respectable naukri. Each of them managed to land a job for a couple of years. One got employed in a warehouse and the other one on a toll plaza. But as the GST roll out became smoother and mandatory, the boys lost their jobs and started making egg-rolls for a living. 

GST eliminated the cascading nature of the pre-existing tax system like inter-state tax, road permits, VAT system etc. The implementation of GST turned the whole country into a single market. This meant the manufacturers did not have to build separate warehouses at different locations. GST rollout not only reduced concentration of warehouses in certain areas to save taxes, it also reduced toll collection in those areas as traffic reduced due to shutting down of some of these warehouses. Not pandemic, the brothers lost their jobs due to GST implications without realising what hit them. 

Just around the same time, before the complete roll out of GST, investment decisions were being considered for infrastructure companies like toll roads. Big decisions, for example making investments in the warehouse company or the toll operator company are long horizon decisions. The decisions are made today for the results to come in during a decade or more. One must realise, when investors make decisions with long horizons, they calculate the risks posed at the time of decision making. Still, some large decisions fail despite being a calculated decision, like due to the impact of GST rollout. But if you look close, the failure is not of the decision but failure is of the ability to measure the progress to reach the goal after the decision was made. 

Decisions, big or small, are made in the present while their impact shows in the future. More and more business heads and decision makers are focussed on the goal measures like revenue, profit numbers, so when the goal is unmet, the blame goes on the decision and not on the progress measures. Amar and Bharat, the two jobless brothers, brought my attention to the importance of right metrics to track progress for all decision makers that should not lead to any closure. 

In this week’s edition for Habits for Thinking, let me introduce you to the concept of Lead Measures, measurements that are meant for keeping an eye on the progress. Lead Measures and Lag measures are defined by the authors of 4 Disciplines of Execution by Sean Covey and Chris McChesney. 

“No matter what you are trying to achieve, your success will be based on two kinds of measures: Lag and Lead. Lag measures track the success of your wildly important goal. Lags are measures you spend time losing sleep over. They are things like revenue, profit, quality, and customer satisfaction. They are called lags because by the time you see them, the performance that drove them is already passed. You can’t do anything to fix them, they are history.” 

“Once a team is clear about its lead measures, their view of the goal changes.” 

CHRIS MCCHESNEY, CO-AUTHOR OF THE 4 DISCIPLINES OF EXECUTION

The author continues, “Lead measures track the critical activities that drive, or lead to the lag measure. They predict success of the lag measure and are influenced directly by the team. A common example of a lag measure is weight loss. Which activities or lead measures will lead to weight loss? Diet and exercise! Proper diet and exercise predict the success of weight-loss and they are activities that we can directly influence. Simple enough, but be careful. Even the smartest people fall into the trap of fixating on a lag measure that they can’t directly influence. This is because lags are easier to measure and they represent the result we ultimately want.”

Measurement is a necessity for business and personal goals. But measuring only the end result may end up in a surprise. Lead Measures in simple terms are measures to define and keep an eye on the progress. Lead measures have some characteristics that are outlined below to help you define your own set of lead measures for the goal. 

1. Lead measures are predictive

Lead measures are predictive in nature so it means that if a lead measure will change, you can predict that the lag measure, or the final outcome, will eventually change too. Simply, if you are measuring weight loss and if you have changed a lead measure of how many times in the week you have exercised, it will change the end result too. 

2. Lead measures are influenceable

It can be directly influenced by the team. That is, the team can make a lead measure happen without a significant dependency on another team. A team dedicated on the shop floor can improve customer satisfaction scores independently of the team in the manufacturing department. 

This is easy to measure. But, lead measures can be abstract in nature too. For the toll company to predict the impact of GST in slowing down the revenue is a predictive analysis. But this cannot be a lead measure, because it is external to the company and hence cannot be influenced or controlled. What is influenceable however in this case are measurements like : Working deeply and widely on risk factors like identifying concentration of toll revenues. These  will serve as lead measures. These may seem as abstract in nature, but will have an impact on the lag measures for the business.  

3. Lead measures are smaller goals aligned to the bigger picture

In personal decisions like weight loss, participation in an exam, keeping an eye on lead measures is easier. Your daily diet program, your weekly fitness regime become the lead measures for weight loss.  Preparing for an exam is also directly proportional to the quality and the quantity of work. That becomes the lead measure. But for an athlete, at a top level performance, lead measures are difficult. The narrower the scope of improvement, the harder to measure it. In such cases, the performance gets broken down into smaller goals and gets measured accordingly. So for example, an ace swimmer has to work on a particular angle of diving in the pool to become faster. Small, yet hard to measure goals. Lead measures can be for smaller goals, for smaller teams. 

4. Lead measures can be behavioural in nature

Lead measures stand for “measure the new behaviors that will drive success on the lag measure.” like sampling free products in a bakery can serve as a lead measure to increase customer happiness. As you increase the numbers of customers who receive free samples, eventually will improve lag measures like revenue as well. Lead measures turn your attention to improving habits and behaviours you directly control in the near future that will have a positive impact on long term goals. 

Measurement is not to be seen as the yardstick for productivity, it is to be seen as the enabler of right behaviours for the team to achieve the goal. Behavioural shifts take time but create a leverage that has magnificent results leading to continued success. 

Why goofing up with April is Risky?

Sounds of bells, spoons, plates, claps, like a complete band baaja baraat, empty streets, baraat in balconies we welcomed the fools day last year. Just short of a few days, in March, we were clanging utensils to thank essential workers and preparing ourselves for April. Last year our perspective of April changed. The fools day got fooled itself and came and stayed with us like any other lockdown day that was filled with anxiety, fear, worry in our hearts and minds. By 5th day of April, we were back in the balcony lighting lamps. That day, the score was less than 4000 infections in the country. Today, there are districts that have crossed that mark. April is here, again. 

But this April, unlike last April, which was an extreme, will be a new April. New April because now we know our new working patterns. New because we value healthcare and well being more than ever. New because we are more empathetic and thankful for just being here.  

April is the month of a new beginning. Beginning of a new year, a new financial year, a new accounting year for most companies in India. All filings related to annual financial performance have to be completed by March 31st. Accountants, business heads scramble in the last few weeks of March not just to close the year but to also budget for the coming new year. Ideas, big or small, are sown. Budgets are firmed up. April is the month of new year in many religions. April is the month of new year in farming and agriculture. The new year is deep rooted in our culture and with any new year there is hope and aspirations in the air.  

A- Aspiration

April is the month of aspiration. With every new beginning comes hope. There is hope in anticipation of salary raises, hope for new projects, hope for new jobs. Hope brings in energy and we need to learn to use that positive energy. What does one do with the energy decides his or her future. One can invest the energy into learning new things which can bring in more energy in the future. One can let this hopeful energy be spent into a good, happy day and the energy will be lost. It’s how conscious we are and how we chose is what defines our days. 

P- Performance

April is a month of performance. “How did you gain that kind of confidence?” is a common question that you will hear in podcast conversations of several successful people. This is in response to something bold or brave that they did in their careers. Their responses show that even if you don’t feel confident, you can still act in a way that manifests confidence. In time, these repeated acts of bravery will build a feeling of confidence. Take action first, confidence will follow.

Courage to take a decision doesn’t mean absence of fear or confidence, but courage means taking the first step of action. Read more about courage and fear in a previous article  here. 

The first step is to show up. April is the month of performance, the month of just showing up for what we aspire to be.

R- Reflection 

April is a month of reflection. Reflect, not to improve on misstep but reflect to pat your back on the best deed of the year gone by. Success inspires success. Reflect on the decision that brought some joy, no matter how big or small that decision was. In a recent podcast interview hosted by Rajkumar Singhal, founder Multipie.co , I heard Abhay Pandey, founder A91 Partners, speak about his achievements. He said, “Someone asked me about achievements in life It is not about the IIT or IIM or McKinsey and other jobs, it is about the social work that I have been doing that’s something I feel most proud of. You sit back and think that is what gives you most joy and pride then you should be doing more of it.” Reflection brings clarity.

I – Ideation

April is a month of Ideation. – look for pockets of growth, learning, break, recover, come back. April, not January, is the month of vision. Resolutions born in January mostly disappear in a few months. But like budget planning in the financial year, April, helps in planning of the vision for the year. Athletes before the competition are trained to visualise the entire race day starting with how they walk out of the locker room and to the point of finish. It is a mental exercise that they start training to actualize their goal. April is the best time to ideate for the year ahead. Work processes, growth plans, learning, breaks to rejuvenate and come back to the plan. 

L-Light hearted

April is a month of fools day. It is best to keep it light hearted. Last evening, there was news about multiple cases in our locality. Last evening, some of us in our own bubble, sat around and had a laugh about a few silly things. Laughter somehow is magical in its impact. It never fails. It strengthens bonds and is good for health and heart.  

Trevor Smith, who has worked extensively on happiness says, “Humor is a great tool to use in a crisis that helps us look at that situation in a positive way that will help us deal with the crisis. Humor lightens one’s burdens, inspires hopes, and keeps you grounded, focused and alert. With so much power to heal and renew, the ability to laugh easily and frequently is a tremendous resource in confronting any crisis situation.” 

Leaders, political and business leaders, use humour in the right manner. I personally like the light heartedness that RPG Chairman’s Harsh Goenka’s timeline brings: 

In this week’s edition of Habits for Thinking, bring in APRIL with aspiration, performance, reflection, Ideation and obviously lightheartedness. I was thinking of writing more, but then I came across this one and this joke by Winston Churchill is on me: 

“Personally, I’m always ready to learn, although I do not always like being taught.”

The invisible, hard skill that one must adopt

“Why the hardest habit? Why not any other habit?” I asked the host who invited me to speak to a classroom of young adults. I had been asked to speak on one Habit for Thinking to young adults. My host told me, ‘‘hardest because that word makes young adults sit up and pay attention.’’

In a world where NFTs and Beeple are taking birth, crypto currency and block chain is as cryptic as possible, it makes sense that attention is more towards what is hard and tough to follow. Challenges excite people. I get that. What I don’t get is how the simplest, blink and miss habit is actually the hardest habit for anyone to adopt. 

As I began the talk, I invited some of the fastest typists in the room. Most programmers and coders actually know what their typing speed is. Out of the four that came in the front and took up this typing challenge on their keyboards, one was marginally faster than the other three. There were just a few words of separation in their typing speed. It is hard for me to tell my typing speed but I knew they were very fast. Each one has his own unique style of placing fingers on the keyboard, especially on the numbers. Do you know if you use your little finger on the keyboard and if you follow a precise finger position on the keyboard, it will increase your typing speed? Most of these young adults gaped at some of their incorrect finger positions. As a practice for a few minutes, they struggled to get their little fingers active on number 1 key. This struggle made me deliver the message. The hardest thing to do is to IMPROVE a habit.  

This week in Habits for Thinking, the attention is not on a new skill or a habit, the attention is on how to “Improve” any habit or a skill. Typing is easy and mandatory. All of us have to do, what is hard is to get the right positions of the fingers, especially if you are in the business of delivering faster notes. Don’t even look at me. When I type, I cross barriers. Often my right hand trespasses on the left side of the keyboard. I admit, I have never worked on this typing habit to improve the speed in the correct manner. Almost anything that we do has a scope of improvement, yet we do not look at improving the habits that are mundane. 

There are reasons why I insist that IMPROVE is the hardest skill to follow. The reasons are rooted in our upbringing: 

  1. Improvement is a skill that is not a job of our own. All of our lives, since school days, we have been trained to depend on others to guide us on how to improve, where to improve. It starts with improving your handwriting in schools, where teachers give commands. Improvement has fallen upon us as instructions. It is not our own, it is a rented ownership from our instructors
  1. Improvement is a job that you pay for to get access to, like a coach’s job. You want to get better in tennis, you hire a coach. You pay him to get you to a better position. You have injured your leg. You want to heal and improve your mobility and you get a physiotherapist. He becomes the caretaker of your improvement responsibility. Like we live with the feeling that improvement is not our own task, we do not feel fully responsible about our own improvement.
  1. Improvement is the invisible thin line. You don’t see it. You miss the line most of the time. Like the young adults in the classroom, fast typists, but unaware that they can become faster by using their little finger too. Similarly, many habits take so much space in our lives that we do not feel the need to question its efficiency and thus do not give attention to improvement. 
  1. Improvement is not a challenge unless given attention to. And human minds, not just young adults largely pay attention to challenges. Improvement doesn’t come as a necessity as it lets you carry the habit in the same manner, days after days, years after years. There is nothing wrong with the habit, like typing speed and you can continue in the same manner without improving it. But some habits like your fitness regime or food habits, if not improved gradually, will show signs of decline. And, this decline brings attention to improving that habit. 

All these makes ‘Improve’ the hardest idea to nurture. Rented ownership, caretaker’s responsibility, invisible line, unassuming, unchallenging characteristics makes it hard to be in the focus. 

Improving is a skill. It is not a habit. It is a skill that starts with the intent to improve a habit. One has to observe the habit, analyse, find areas of improvement and work on improvement with a goal in their vision. 

Roger Federer, the champion, maintains his statement that there is always a room for improvement. Simone Biles, Michael Phleps, Djokovic, Nadal, Abhinav Bindra, Mary Kom and so many star studded sports personalities have maintained one goal after their podium finish, to improve for the next match. In sports, not only top performers, but everyone in competitive sports adopts the skill to improve. Improvement takes time. A top level swimmer takes months and years to cut her timing by microseconds.  

Improvement brings efficiency and growth. It is a positive trait to keep as a company. Improvement can be brought in at various stages: 

Improve: a personal habit.

The first step to any improvement is to observe and analyse the habit. Analysis throws up areas of improvement. Like, you want to work on improving your sleeping habit. You observe your pre and post sleeping behaviour for a few days. It will give you areas or activities that you can work upon to improve your sleeping pattern.

Improve: a work process.

Many activities in work life are actually habits. Like a weekly meeting, making a to-do list. Some of these habits when improved not only increase efficiency but also bring in growth. 

Improve work productivity:

Toyota production system is the production philosophy designed by Toyota and now implemented by many worldwide companies. The philosophy is based on principles of Kaizen. Kaizen comes from two Japanese words: Kai (improvement) and Zen (good), which translates to “continuous improvement.” The Kaizen philosophy states that our way of life – be it our working life, our social life, our home life – deserves to be constantly improved. Kaizen is about achieving improvements by taking small steps instead of big, rigorous changes. Although improvements under Kaizen are small and incremental, the process brings about dramatic results over time. This philosophy helps to ensure maximum quality, the elimination of waste, and improvements in efficiency, both in terms of equipment and work procedures. Within the Toyota Production System, Kaizen humanises the workplace, empowering individual members to identify areas for improvement and suggest practical solutions. 

Kaizen philosophy has been adopted by many workplaces to improve efficiency. Startups launch products as prototypes, not the final product but work-in-progress products, that are improved upon through continuous customer feedback.

Improvement not just brings efficiency, it is a growth tool. In pockets of life like sports and healthcare, improvement takes a centrestage. In personal life, improvement is not seen as a skill but when given due attention it brings results in a magnificent way. Sleeping habits can be improved, typing speed can be improved by simply placing fingers on appropriate keys, an entire production unit can be improved through Kaizen philosophy, work culture can be improved. All we need to do is to own the onus of improvement. 

Sunil Gavaskar, Madhuri Mishra and the lessons on influence

He stuffed hand towels in his pant front pockets to make it work like thigh guards and she, far away from him, walked nearly eight kilometers everyday to accomplish her mission. He created a path, she knocked doors. He went from country to country, she went from village to village. He retired years ago, she retired last week. Both unique in their pursuit, but both crossed bridges that we are all walking on today. The two, unknown to each other, have been the one to influence our lives, influence in the largest possible way. Influence in cricket and in vaccines

This month, the cricketing world and India celebrated Sunil Gavaskar for accomplishing what no other Indian had done before him in World Cricket. March 6th was the 50th anniversary of Sunil Gavaskar’s iconic test debut, against West Indies in Port of Spain, Trinidad where he made 774 runs in his debut series, which I have come to realise, is still a record for most runs by a debutant in a series.

An article wrote, “Gavaskar’s feat signalled a change in mindset for Indian cricketers. The belief that his achievement gave the team showed up in the sport and how India battled with the opposition, often in the lion’s den. Given the pittance that sportspersons were paid then, his feats catapulted him into India’s first sports superstar, opening up opportunities for endorsements.” 

Sunil Gavaskar said in an interview that during his early days there were no gears for protection, no helmet, no thigh guards. They just went on. No paraphernalia. What he remembers today is the feeling of pride and happiness when he first wore the Indian Cap during his fielding. 

In 1983, the iconic year for Indian cricket, in a small town Madhuri Mishra, absolutely away from cricket, had defied her family and her circumstances and become a health worker. This was almost five years after the launch of the nationwide immunisation program. This month, Madhuri Mishra retired from the service.

Before we move ahead, here is quick note on immunisation program: smallpox was eradicated in 1977 and the first version of national Immunisation program was launched in 1978 as Expanded Programme of Immunization (EPI) with the introduction of BCG, OPV, DPT and typhoid-paratyphoid vaccines. The target in EPI was at least 80 per cent coverage in infancy, the vaccination was offered through major hospitals and largely restricted to the urban areas and thus understandably, the coverage remained low. The EPI was rechristened with some major change in focus by the launch of Universal Immunization Programme (UIP) on November 19,1985. The objectives and major focus in UIP was not only to increase production and distribution capacity but also to rapidly increase immunization coverage and reduce mortality. It meant phased implementation – all districts to be covered, including a district-wise system for monitoring and evaluation. 

District-wise monitoring means health workers on the ground. This is where Madhuri Mishra stepped in. For 30 years since then, Madhuri, now 60, walked for 8 kilometers everyday to remote villages to reach and immunise those with least access to healthcare. In an interview she mentioned, “The first few years were very tough. People didn’t want to get immunised. Myths and rumours like vaccines can cause infertility or will make them sick were her battles. She said, “But I’d keep walking, stopping at villages and vaccinating children. It had to be done. At times, people would misbehave. At others they wouldn’t let me enter. I would keep going back, sometimes with others who had vaccinated their children until I could convince them.” She barely took a day off and her ward managers said, wherever she went, there was a surge in mass immunisation. Such was her influence. 

This week, a friend tweeted, ‘Khushi ke aansoo’ (tears of joy) with a picture of her parents post the Covid vaccination in a small town in Bihar. Anywhere you see, whether it is social media or neighbourhood or within the household, there are signs of relief on getting the jab. Wide smiles behind masks, gleamy eyes, these are not just pictures of hope, but also pictures of firm faith. Vaccines are here for real. 

Sunil Gavaskar went from country to country taking India on the world map. Madhuri Mishra went from village to village carrying vaccines and determination in her bag. He didn’t have a helmet to protect himself. She didn’t have vehicles to cover the distance. He batted so confidently in his debut that created a bridge for Indian cricket in the world map. She walked for days and years so that no one was left behind in her area. He created a path for fellow cricketers, more money flowed in, more cricketers gained success.  She opened doors for healthy living, more villages and more districts were covered. Both of them crossed the bridge for many others. Both of them influenced their world. The world of cricket and immunisation respectively. 

In today’s Habits for Thinking, I am bringing your attention to developing mental notes through events around us. Two large events took place in the last few days. Firstly, Sunil Gavaskar was in the news for reasons mentioned above and secondly the covid vaccination drive took off across the country. The two stories, stories of the famous cricketer and the nurse from Agra, who retired this month, are the anchor of these mental notes. And, the note is on the power of influence and how these influencers have created a solid culture in their respective fields. 

Sunil Gavaskar was not the first cricket player to get noticed by the world but he created a mark that still carries a huge weight. Madhuri Mishra is just one story about healthcare workers. If you had a baby at home in the mid 2000’s, you will remember polio-drops healthcare workers coming home. I remember the shocked feeling of seeing the same polio-drops lady for my daughter at my doorstep even after we had shifted home. The lady had managed to find our new address and had landed up at the scheduled time for our baby to not miss the dose. 

Influencers, as we have seen in the case of Sunil Gavaskar and Madhuri Mishra are not made by social media. This Habits for Thinking edition is dedicated to the power of influence that becomes the bedrock of a culture. Cricket is the visible culture in our country. Immunisation is a culture too in India. It is not just years of developing and maintaining a strong distribution system for vaccines, it is in the core of ground level health care workers and every human being to be aware of the importance of the vaccine. The program in 1985 defined “all districts to be covered” and Madhuri Mishra is one of the strongest examples. If all districts are being covered with covid vaccines today, it is because Madhuri Mishra and several health care workers like her have worked hard to create a culture, a culture of immunisation. 

People make the culture. And magnificent influencers, whether a celebrity profile or the next door neighbour strengthen that culture. Both have the same framework of principles to influence:

1. THE RESOLUTE:

It is the determination to work that carries one forward. No paraphernalia, no conveniences yet that perseverance made Madhuri walk and work everyday.

2. THE PURPOSE:

No matter how many times she had to repeat herself, the nurse kept going back to the families that declined her initially. Her purpose was not to keep a count of how many homes she covered but her purpose was not to leave anyone uncovered. 

3. THE CONSISTENCY:

If you have worked for thirty years without taking any break, without any excuse with the same enthusiasm as you had on day one, you would have influenced many coworkers in your journey. Consistency in performance, in showing up everyday becomes the reason for success. 

Like the famous cricketer or the next-door nurse, each one of us has the power to influence. If every manager at office has the power to influence, so does every factory worker. That is what makes a culture of the place. It is not only social media  that makes an influencer. It is the resolve, the purpose and consistency in work that makes an influencer. And, every influencer builds a bridge. 

Three Mandatory Lego Lessons To Keep Entropy In check

She barged into the room screaming entropy, entropy! What my 8 year old niece meant was the lego chaos her toddler brother had created in the other room. The niece, in trying to prove herself very smart, like most children do, was showing off what some of us had earlier in the day discussed about physics and the second law of thermodynamics. Her takeaway was a new word for chaos and that is entropy. 

Children have the ability to simplify things in just one stroke. Probably because their mind is less cluttered and they have more actionable energy than any of us adults who have multiple things in our minds filling up garbage bags of chaos and clutter. 

A quick glance on notes from my previous article: 

Disorder is best explained by Science. It is called entropy. Entropy in simple terms is the measure of disorder. More the disorder in a system, more the entropy. 


“The second law of thermodynamics states that “as one goes forward in time, the net entropy (degree of disorder) of any isolated or closed system will always increase.”


I don’t like the word entropy. I don’t like the sound of it, especially the fact that it has a negative meaning attached to it. The mark of a disorder. If you say chaos or disorder, it rings the bell of chaos but when you say entropy, even if it is ages old, you do not grasp it immediately. Imagine screaming in a boardroom meeting, the reason for failure of a project is entropy. Who would relate to it? Very few or may be none. Now you know why I do not like the way this word is in our lives. 

Entropy is the elephant in the room, the problem that exists but is not acknowledged or is ignored. We learnt in the previous article that the three principles regarding entropy to remember are 

i) Entropy is the default state 

ii)It tends to increase when the system is closed and 

iii) Higher the entropy in a system, more the energy needed to be efficient. Imagine more Lego chaos and more time to clean up.

In today’s Habits for Thinking, I am bringing your attention to Lego and lessons it showcases to keep entropy in check. 

Lego is a brand name for small building blocks that come in various shapes and sizes. For toddlers, it makes larger blocks and for older children and adults it gets into smaller, specific details including mindstorms that are programmable robotics constructions.  Possibilities are unlimited and so are the types of lego bricks that a child can possess. Even a small collection of a few lego models is big enough to bring a room in disorder, just like entropy.

Our lives are like that. Small pieces of building blocks that come together and make a nice picture. Relationships, work, purpose etc are the building blocks for the mind while food, sleep, exercise are the building blocks for the body. Like Lego blocks, they manage to sit together to create a unified model. You remove one or two pieces and there is a disorder in the system. You scatter them all, like a room full of building blocks, and wish you could scream entropy, entropy. There is only one difference, when Lego blocks are scattered and create a mess, they can be brought together and fixed to another model. In life, when the entropy or the disorder increases, there may not be any turning back. 

Secondly, the more the number of Lego blocks, the more disorder it can create and it will require more energy to put it together. It happens in large organisations, to keep the organization’s efficiency, there are several processes designed. Just tackling the processes can increase a delay in decision making thus leading to disorder. Large organisations also tend to cater more to internal processes by which they move towards a closed system. And, like in any closed system the entropy increases slowing the organisation down. 

But, Lego bricks and building blocks have magical power. These bring an excitement in the environment. Bright and colorful they fuel imagination and dreams. There are lessons to learn from these building blocks. In today’s Habits for Thinking, we are picking up some lessons that will help us keep entropy in check. 

1. It starts with a goal:

Have you ever played with a box of lego building blocks? While you can use lego bricks independently, they are sold as a collection of blocks to make a car, a tower, a city etc. So when the child starts making it, he or she already has a goal in the mind. If we take this approach towards handling entropy, it will help in keeping it contained. Like, if you want a stable relationship with your partner, then you need to be conscious for it to be successful. If two partners are very stable but barely communicate, they are passive in their state of being in the relationship. This passive state can cause disorder too. So you know, to keep a happy, active relationship you need to communicate and give attention to the relationship. It is easier to associate a goal or success factor in relationships but difficult to see it in a project. 

#ideastoaction: Start with a vision of success and work accordingly. It will keep entropy in check. 

2.Building blocks have multiple roles: 

That is the beauty of Lego bricks. The blocks are designed in such a manner that you can use Lego bricks in many different ways and in many models. These are not unique to only one design. Our life’s building blocks are like that too. A colleague at work is going through a rough patch and you take him out for a meal and talk it out. You have merged your own building blocks of food, work, relationships. Lego teaches us that. To merge, to interuse, to be constructive before entropy goes beyond control. 

It works with self-growth too. Researchers and psychologists have identified correlation between entropy and mental health. As entropy increases in the mind, so does the disorder in life. One way to tackle this is to build several mental models. A closed mind has increased level of entropy and therefore lesser ability to make decisions, a growth mindset or an open mind to ideas have a better decision making mindset. This is due to the fact that the growth mindset learns several mental models. These mental models, like Lego blocks, are interchangeable, used in multiple ways thus keeping an active mind.  Steve Jobs gave a famous term to this concept – ‘connect the dots.’ You learn a mental model at work and you apply in your personal life. That’s the magic, like Lego blocks. You can be a free learner or you can use frameworks from courses to learn. Like you can build a model on your own or you can build a colosseum that Lego provides. 

#ideastoaction: Mental models work as building blocks. Practice a growth mindset, learn mental models and keep entropy in check. 

3.Collaboration helps:

Lego is more fun if you do it with others, friends, siblings. Keeping entropy at lower, manageable levels is not a fun thing to do. As discussed earlier, it is the elephant in the room. It is easier to address the elephant if you have more people on your side. Large organisations create teams to address this need. Still, there are processes that bind all teams back into a large one- making a big room full of Lego blocks. That’s why startups are agile. They are the small rooms of fewer Lego blocks. 

If there was a job like Chief Entropy Minimiser, his job description would be to paint the vision of success or goals before the onset of projects, lead teams to use interchangeable  mental models and collaborate with other entropy minimisers to keep an agile, constructive, venture. Collaborate, make others responsible too to keep the company agile. 

#ideastoaction: Make others conscious of entropy and the impact. Work together to keep entropy in check. 

The name ‘LEGO‘ is an abbreviation of the two Danish words “leg godt,” meaning “play well”. Entropy is the default state of life. At work, at life. Just Lego it. Just PLAY WELL!

Moral Intelligence- the remarkable trait for leaders

As a child during one of the summer holidays in our ancestral village, I remember a kid in the neighbourhood was being reprimanded by others for stealing. His mother pleaded innocence and covered up for him. I have no recollection of who that child grew up to be but I remember my father’s words after that incident. He had said, ‘a mother makes a thief.’ Sounded odd at that time but I realised it truly when years later after that incident, I had to talk to my less-than-5 year old to return a candy he had picked up slyly in a store. Recently, I was reminded again of the statement ‘a mother makes a thief’ when I had to take care of the teenager’s act of watching Netflix on her laptop during online school hours. Mothers have a knack of understanding a child’s behaviour and by virtue can either confront or cover up if there is wrongdoing. Mothers become the first moral intelligence police for the child. 

Right and wrong taught as values remain the compass for decisions that define moral intelligence. Moral intelligence was first developed as a concept in 2005 by Doug Lennick and Fred Kiel, Ph.D. They defined moral intelligence as “the mental capacity to determine how universal human principles should be applied to our values, goals, and actions” Michele Borba, Ed.D., in her book Building Moral Intelligence: The Seven Essential Virtues that Teach Kids to Do the Right Thing defined seven essential virtues of moral intelligence as empathy, conscience, self-control, respect, kindness, tolerance, and fairness.

Moral Intelligence is a lesser known leadership trait but is an essential tool for a leader, actually for every person in the room, not just the leader. Watching Netflix during an online school time is not a crime, so are what seems as small trespasses of values in the course of business. Sometimes these small moves climax into a big one and backfire and sometimes a small harmless move comes under the radar of law and order.  It doesn’t matter whether an unethical practice comes under the law scanner or not, it definitely deviates the business and its processes from the path of competency. 

If you would wonder, consider some of these past news headlines:

Rajat Gupta’s Lust for Zeros

Videocon loan case: Srikrishna panel indicts Chanda Kochhar; what we know so far

Rajat Gupta. Chanda Kochhar. Big names. Bigger body of work. Yet, tarnished by what seems like deviation in moral intelligence. Some stories come out in the public domain. Some don’t. Yet, from time to time, leaders miss a step or two in moral intelligence. It leaves a hole not just in their lives but also in the company’s trust and value systems. Sometimes these small, unharmful yet unethical steps might look natural and acceptable in the value system. Like we have seen in the case of Harshad Mehta scam story, where many others were also following similar practices. Moral Intelligence is not rocket science but it is helpful to understand how it is defined by researchers.

Lennick and Kiel say that the construct of moral intelligence consists of integrity, responsibility, forgiveness and compassion:

  • Integrity: integrity are a) acting consistently with principles, values, and beliefs, b) telling the truth, c) standing up for what is right, and d) keeping promise
  • Responsibility: Responsibility’s three competencies are a) taking personal responsibility, b) admitting mistakes and failures, and c) embracing responsibility for serving others (Clarken, 2009).
  • Forgiveness: Forgiveness involves a) letting go of one’s own mistakes and b) letting go of others’ mistakes (Clarken, 2009). 
  • Compassion: compassion is actively caring about others (Clarken, 2009). 

Moral intelligence is separate from emotional intelligence. Emotional intelligence is about understanding and controlling one’s feelings and reactions. I have written about Emotional Intelligence in this article here. In today’s Habits for Thinking, we discuss how carrying the knowledge of moral intelligence impacts leadership style. 

The advantages of building Moral Intelligence: 

1. The compass of decision making

Moral intelligence though spoken less about as a leadership trait, is central to leadership. The beauty of this intelligence is that it can be acquired as a skill by practice. But this is a compass that needs to be the true north. 

2. The roadmap for the purpose:

Bringing the purpose, individual or a business purpose, depends on the moral roadmap. Moral intelligence paves the roadmap for continuing on the mission of purpose. It is the guide for why we do things and how we do things. 

3.The competitive edge: 

How many times have you been told that your team has earned the business because your team’s integrity stood over other competitors? We may be technologically enabled but business relations are based on human relations. The moral intelligence of an effective leader makes way for everyone in the business. The moral intelligence of the leader defines the right processes and functionality at the core of the business.

4. The tool for ethical design: 

We are governed by privacy policies. That is the law. But there is no law to suggest that as a brand when or how many times can you call the customer? In an another example, leaders that are employing Artificial intelligence have to make several ethical decisions. The more we are driven by technology, more we will have to be morally conscious and intelligent to drive technology. 

5. The responsible influencer: 

I sometimes wonder, if Elon Musk would not have tweeted about Gamestop, would less number of  redditors have made losses? I have no scientific way to prove it but there is a possibility that Elon Musk’s tweet would have influenced some more retail investors to jump in the Gamestop saga resulting in both gains and losses for individuals. Moral intelligence is not just for people with large following on social media platforms, it is with anybody who has influence over people around him. 

Moral Intelligence is not just a responsibility towards a team or a business. It is also a responsibility towards the community, our work communities, our social communities and the members of that community. This Saturday morning marks sixty five nights for Partho Dasgupta* (BARC scam case), under judicial custody. At some point, maybe in months or in years, the judiciary will define whether Patho Dasgupta had a moral intelligence lapse in his career or not. Events around us teach us lessons and make us reflect. As a member of the community, one could reflect on their own moral intelligence to see if they have been able to forgive and yet be compassionate enough to offer help. 

When a community comes together morally, it forgives and extends help. The compass for Moral Intelligence towards a community could be the one like this popular social kindness quote, –

We are all just walking each other home.”

Business leaders need to become mothers as they practice moral intelligence. They must remember, a mother teaches her child by not just preaching but by practicing.

She doesn’t say only “be kind”. She says, “let us be kinder today.”

Mothers are best teachers of Moral Intelligence!

*The author is an ex colleague of Partho Dasgupta. She has worked with him from 2005-2009.

Are you a choice architect?

Have you joined Koo? Or Clubhouse? Or both? Koo is the latest social media platform made in atmanirbhar India and is similar to twitter, I am told. Just the fact that it is in more languages than one, adds to its charm. On the other hand, Clubhouse is a platform for listening and talking that means only audio, no text, no video and no recording, again I am told. I have not joined any of these platforms. Not yet. I am worried that I may seem as rude to people who have sent me invites. I am very tempted to join Koo to read the conversations in Hindi. I am also tempted to join Clubhouse as I want to attend one chat around writing skills. Wait, to listen to learn about writing? Sounds odd. 

Some things do not come with a choice architecture. A choice architecture is the place that lays out boundaries for you to make decisions. Like, as a mother, I am laying boundaries for my children to make decisions for example late night boundaries or mobile app boundaries. For adults, there is no such thing like a phone that comes with a choice architecture. Something like you can only be on only two social media platforms? Sounds criminal. Suffocating may be the right word. Isn’t it? Lack of choice architecture in adult life makes us feel free, but that also means the onus on taking right behavioural decisions completely lies with us. 

What is choice architecture: 

Choice architecture coined by behavioural economists Richard Thaler and Cass Sunstein (2008) refers to the practice of influencing choice by “organizing the context in which people make decisions” Here is an excerpt from their paper:

Decision makers do not make choices in a vacuum. They make them in an environment where many features, noticed and unnoticed, can influence their decisions. The person who creates that environment is, in our terminology, a choice architect. In this paper we analyze some of the tools that are available to choice architects. Our goal is to show how choice architecture can be used to help nudge people to make better choices (as judged by themselves) without forcing certain outcomes upon anyone.The tools we highlight are: defaults, expecting error, understanding mappings, giving feedback. 

In this week on Habits for Thinking, and as a second part to last week’s write up on behavioural economics and nudge theory, I am bringing your attention to designing your own choice architecture. 

Choice architecture is exercised by policy makers and many businesses to influence your decision making. Policy makers’ role is to get behaviours that are good for the people like nudging bike riders to wear helmets for protection or demeriting a product that is not good for consumers like putting a cancer stricken person’s photo on the pack of cigarettes. On the other hand, businesses have to thrive in a highly competitive environment. Most brands and businesses turn choice architects to influence behavioural decisions by their consumers. The question is how do we, as individuals, as consumers become a choice architect of our own to protect our interests. How do we make conscious decisions that are not driven by someone else’s influence? 

The first step is to define our own behavioural rules. To become a choice architect, let us look at the framework designed by Richard Thaler and Cass Sunstein. There are four tools in designing a choice architecture: 

1. Defaults: Padding the Path of Least Resistance

Thaler & Sunstein research paper suggests making certain behaviours a default option—an option that will obtain if the chooser does nothing—then we can expect a large number of people to end up with that option, whether or not it is good for them. They used these nudges for organ donation, for signing up for savings. 

How a company uses: when you sign up for a website registration you have to opt-out to receive promotional newsletters. If you do not opt-out, you will get all promotional emails by default. 

How can you use: when you want to spend unadulterated time reading to your child, or in a meeting, leave your phone out of the room for that period. By default, you will not have the phone to get distracted. 

2. Expect Error: Humans make mistakes

A well-designed system expects its users to err and is as forgiving as possible. 

How a company uses: If you draft a mail on gmail and have forgotten to attach the document that you have mentioned in your mail, gmail reminds you to add the attachment. That is a positive nudge. 

How can you use: You have put a task, for example to write to someone, on your to-do list. It has been there for the last few days but you have not been able to complete this task. That’s an error that you are making. To design a productivity nudge for yourself, write a rule – either attack or kill the task after two days.  This means that after two days of being on the list, any task should either be addressed first thing on the third day or get discarded from the list if it is not important enough. By expecting that you may miss something on your to-do list, you can design a choice to be more attentive and productive.

3. Give Feedback: 

The best way to help humans improve their performance is to provide feedback, writes Richard Thaler. Well-designed systems tell people when they are doing well and when they are making mistakes. 

How a company uses: iPhone users have the facility to control screen time. The phone reminds every time the limit, set by the user, is over. 

How you can use: You want to change a habit, maintain a log of new behaviour and this will become your feedback system. For example, maintain an entry for your fitness regime that you want to improve, write down your workout details and how you feel after the workout. This journal will become your own feedback. How you feel will be your personal assessment tool, your frequency of workout will work as a feedback score. 

4. Understand mapping: 

A good system of choice architecture helps people improve their ability to map and hence to select options that will make them better off. One way to do this is to make the information about various options more understandable, by transforming numerical information into units that translate more readily into actual use. For example: When buying apples to make into apple cider, it helps to know the rule of thumb that it takes three apples to make one glass of cider. 

How a company uses: Car sellers give comparative features and prices for models in similar categories. This information mapping helps the buyer to make informed decisions. 

How to use: before joining another social media, map the time that it would consume from your 24 hours in a day. Map your other engagements. Remember, there are only 24 hours and that you are your own choice architect. 

Choice architecture is not limited to only these four tools. Reducing choice overload, incentives and communication like advertisements to influence behavior, packaging and placement of products are also some other tools that are designed by businesses around us. Organisations design nudges to influence behaviour of their employees. Many organisations do not give a choice of accessing social media platforms on employees’ laptops thus restricting the choice architecture by default. 

I do not work with any organisation that restricts usage of sites and apps on my devices. I am sure one day I will join these platforms and behave like a fly on the wall, the way I do on other platforms. Somewhere in the back of my mind, I am mapping the effort needed to curate my own timeline for these platforms. The choice I have made to be on social media is to learn, to pick up trends, to have fun in my way, which means I curate my timeline, I am conscious of whom to follow. 

Being a choice architect takes efforts and failures. But, it is better to be a failure in your own choice architecture than to be a loser who has been influenced by others’ choices. So, are you a choice architect? 

Changing Behaviour – one mime at a time

Has it ever happened to you that while driving you had to screech and halt to save a pedestrian from getting hit by your car. It just happened to me this morning. It wasn’t screeching and halting but yes, it was a sudden, unexpected break. Short, stout, in a green sweater and a blue mask there was a middle aged man right in front of my car’s bonnet staring at me in bewilderment. Jay walking is considered a safe behaviour by many standing in the crowd. Now imagine you had to halt at a star painted on the road? That’s what a Colombian mayor did years ago to prevent deaths caused during jaywalking. Ok, you may argue we do not even have zebra crossing markings on many roads in our cities. That is another debate. But, we still have people dying in road and rail accidents. 

This Mayor, Antanas Mockus whose work is now published as a case by Harvard, used different strategies to change behaviour of people of the city, including painting stars on spots where pedestrians had died in traffic accidents.A mathematician and philosopher, Mr. Mockus was rector of the National University in Bogotá, Colombia, before serving as mayor of that city for two terms, from 1995 to 2004.  

In an opinion piece, ‘the art of changing a city,’ he wrote “Bogotá’s traffic was chaotic and dangerous when I came to office. We decided the city needed a radical new approach to traffic safety. Among various strategies, we printed and distributed hundreds of thousands of “citizens’ cards,” which had a thumbs-up image on one side to flash at courteous drivers, and a thumbs-down on the other to express disapproval. Within a decade, traffic fatalities fell by more than half.” 

Another innovative idea was to use mimes to improve both traffic and citizens’ behavior. Initially 20 professional mimes shadowed pedestrians who didn’t follow crossing rules: A pedestrian running across the road would be tracked by a mime who mocked his every move. Mimes also poked fun at reckless drivers. The program was so popular that another 400 people were trained as mimes. Traffic fatalities dropped by more than half in the same time period, from an average of 1,300 per year to about 600.  Mime artists idea was replicated in Peru Lima too to prevent road fatalities. 

In this week’s Habits for Thinking, we are circling back to a topic we have discussed earlier too – Behavioural Economics and Nudge. This is a two part article and will continue next week too. 

Behaviour economics uses psychology to understand decision making behind an economic outcome, such as buying of a product. The study refers to psychology, neuroscience, economics in understanding how people behave and act. The behaviour and subsequent decisions to act have an impact on people yet they continue to behave in an unsafe manner, like the man in the green sweater, who crossed the road more as a copycat behavior seeing others in front of him. 

Governments and policymakers recruit behavioural economists to change behaviour in the right direction. It has been done in many countries, including ours. “By knowing how people think, we can make it easier for them to choose what is best for them, their families and society,” wrote Richard Thaler and Cass Sunstein in their book Nudge, which was published in 2008. Read more about Nudge and behavioural economics in my earlier article here. This is what the mathematician mayor of Bogota did. He used insights that influence behaviour and designed solutions that were not easy to miss, that were engaging to bring in change. 

Behavior Insights considers three factors that influence behavior: 

1.Individual factors : self image consciousness, fast and slow decision making or a person, biases, rewards and penalties, time factor etc. 

2.Social factors: How people think and act are many times influenced by people around them. Jumping a signal while driving because the one in front of you has jumped is an example or to litter in a public space like parking, roads etc is another example of copying behaviour. 

3.Environmental or design factors : Nudges and other design elements are chosen to bring a change in behaviour. These are externally designed like Mime artists on the streets to change behaviour or messages through voice on phone. 

While mimes were strategically placed to influence behaviour of pedestrians and car drivers, it worked on the self image of the individuals. Similarly, star painted spots became reminders as an environmental design factor to influence people’s behaviour. 

“The distribution of knowledge is the key contemporary task. Knowledge empowers people. If people know the rules, and are sensitized by art, humor, and creativity, they are much more likely to accept change.”

Antanas Mockus, ex Mayor, Bogota.

When there was a water shortage, Mockus appeared on TV programs taking a shower and turning off the water as he soaped, asking his fellow citizens to do the same. In just two months people were using 14 percent less water, a savings that increased when people realized how much money they were also saving because of economic incentives approved by Mockus; water use is now 40 percent less than before the shortage.

Mockus writes in his note: When the city faced a critical water shortage, I made a public commitment: There would be no traditional rationing to manage the crisis, no cutting of supply. Instead, we set a goal of voluntary conservation of 12 to 20 percent; ultimately we achieved savings of 8 to 16 percent. To inform people of this policy, we replaced the busy signal on people’s telephones with a public message, either in my voice or that of the Colombian pop star Shakira, saying, “Thank you for saving water.”

This sounds like a familiar territory. We still have Amitabh Bachchan’s voice reminding Indians to wear a mask and to maintain social distancing this year. Now, there are messages that talk about the safety of vaccines.  The governments, both central and state, were quick to inform people about the pandemic. Even before the announcement of the lockdown, Mumbai city had billboards with a message of safety. 

In behavioral economics, you design a nudge to bring change in behaviour of people. Like some of the examples  that are mentioned above and some in the previous article. As a project leader, or a marketing head or the cultural captain of your company, you can design nudges that bring the right behavioural change in the organization or customers. You can create a form where someone has to opt-out instead of opt-in to get more signatures. UK government used this to make people adopt pension funds. They saw an increase in sign up of pension funds when the default setting of the form was opt-in. It was an effort for people to opt-out.  Marketers of most websites use this as a marketing tool. You may have noticed that when you register on a site, it has a tick mark about receiving promotional material, you are given the option to opt out of it. Similarly you can design a change in communication and keep it EAST – easy, attractive, social and timely to make it effective as mentioned in the previous article. 

The thought that I want to leave you with is what do you do when you want to change your own behaviour? The article will continue next week with more examples on behavioral economics and ways to bring those ideas in our own lives. 

Cricket, Gamestop and the new rules of risk decisions

I am a fence sitter.Cricket, Stock Market and guess what Kitchen too. These are the areas where I sit on the fence and pay attention only when a major event unfolds. It doesn’t matter if the house routine begins with the market’s Ringing the Bell or the house comes to a standstill when India is batting. Despite the house being deeply involved and attentive in both cricket and stocks, I choose to sit on the fence. Last few weeks have been full of events in the areas I prefer to stay away from. Kitchen has been under repair, which means I can’t  be completely ignorant as ultimately it is the heart of the house. The great Indian Cricket team has created some magic in Australia that has left some men gasping for breath and some in a coma of disbelief. And the stock market, which is the most obscure one for me, delivered an event that even people who work in domains far away from our earth, in space, had to pause in their flight, comment and participate. I am told Gamestop- Hedge funds- Robinhood- Reddit created history and the saga is now an interview question for recruiting hedge fund managers. 

The repair work in my kitchen where I lost complete control, the historic win of Indian cricket team where I realised I didn’t know names of all the players and the business of shorting stocks, where I am still keeping an eye on the drop in the price of Gamestop has left a mark on me. This mark, I call it, is short on nitty gritties that are ingredients which went into the making of the respective events  but, long on mental models that shape our thinking routine. What I mean by short on nitty gritties is for example I learnt recently about Washington in cricket and about Gamestop in the stock market. I am also short on detailed rules of both cricket and stock markets. That’s not important for me. What I understand in detail is this: The NEW, REAL democracy. 

When I wrote on inversion thinking, a hedge fund manager from the US reached out asking for more recommended reading on risks, fear, leadership. I dedicate today’s article on Habits for Thinking to him. Risk frameworks and models that have been designed earlier do not include one thing anywhere in the world and that is the impact of democratisation. Here are five observations that we need to be mindful of in our lives. Because, rules have changed, a new democracy has taken shape worldwide, and this democratisation is here to stay across all walks of life, including cricket and stock markets. 

By dictionary: Democracy means the right of everyone in an organization, etc. to be treated equally and to vote on matters that affect them. And, democratisation: the action of making something accessible to everyone. 

In today’s habits for thinking, here is a framework of decision making around five aspects of democratization that can have an irreversible impact. One must remember that no one can estimate the power of democratisation  and therefore no one can estimate the size of its impact. It is like a spinning top that can stop within a few seconds of launch or continue for an unexpectedly long time. 

1. Democratisation of knowledge:

Even though I have been a fence sitter, I didn’t need to attend a classroom on how stocks can be shorted in financial markets. Knowledge is accessible at a fingertip. Knowledge is democratised in not just what you can search on the internet but also to access whatever you want to learn irrespective of your age or the college degree you have. For instance, my teenage boy learnt to configure an electrocardiogram machine under guidance of professors from Harvard and IIT through a summer course done by the upcoming Plaksha University. Everyone has access to knowledge in the areas one is interested in, irrespective of the field he is currently pursuing. Doctors, engineers far away from the financial field have access to knowledge about futures and options and other trading rules. And, they exercise this knowledge too. 

Impact: democratisation of knowledge means independence in decision making for individuals and redundancy of middlemen. 

2. Democratisation of Publishing:

“I am a classic concoction of method, skill and madness” 

Spinner Ashwin Ravichandran’s youtube page.

Ashwin has published several videos of team and coaches off the field, behind the game. Most of these are recorded with a fun twist during the mentioned cricket tournament and give a peek into the lives of cricketers.  Now read this excerpt from a Bloomberg article: “Welcome to the cutting-edge and cutthroat world of China’s 18.3 trillion yuan ($2.8 trillion) mutual funds industry, where traditional fund distribution networks like banks are overwhelmed by colorful and noisy livestreamers and globally renowned names such as BlackRock Inc. and Vanguard Group Inc. hold little clout among a young, tech-savvy investor class. ” In the world of trading, there are livestreamers hosting their own voice. Yes, everyone can publish. 

Impact: Democratisation of publishing means anyone with or without a celebrity status has the tools to publish his voice. 

3. Democratisation of influence and leadership:

We must understand the relationship between leadership and influence. Influence is an essential leadership skill and to influence means to impact behaviours, choices and decisions of others. In the absence of team captain, Virat Kohli, Ajinkya Rahane stepped in and demonstrated his influence on the team with ease. Rahane was able to lead the team into a high performance attitude. Influence is dependent on trust and if the trust is set in, it becomes easier for the leader to take charge of the right influence. Social media influencers demonstrate that leadership in their followers. Platforms take that leadership position too.. Like, Zerodha uses a powerful tool called Nudge on its trading app to help users with informed decision making. Nithin Kamath, Zerodha founder described Nudge as following in a post: “We’re trying to incorporate nudges to warn users when they’re about to break the basic trading rules.” 

Nudge on Zerodha App

Nudge. Coined by Nobel Laureate Richard Thaler is a behavioral science concept and you can read more about it here in my earlier article

Impact: Democratisation of leadership and influence means more and more people are empowered to influence people in decision making. 

4. Democratisation of power

Democratisation of influence and leadership leads to democratisation of power. Power is not wielded by one single force anymore. It now means a collective force of many small forces. This is what we have seen in the case of Gamestop when Redditors wielded a collective force against large, powerful forces like hedge funds. Something similar happened with the cricket team too where lesser known stars  stepped up as a collective force to demonstrate the power of performance. When collective forces come together, it is far more powerful than one big force. If you put two equal teams at the opposite sides in a tug of war, do you know who will win? The one where all members pull the rope exactly at the same time. This is the collective force and this is how democratization of power pulls down large forces with one coordinated effort. 

Impact: Democratisation of power means platforms that bring people together can create collective forces that can create a massive, unexpected impact. 

5. Democratisation of capital

In a podcast interview, Chamath Palihapitiya, founder of Social Capital, spoke about his Tesla investment made many years ago. He spoke about how a collective group of people created a pool of research work on Tesla. Some wrote research papers, some created youtube videos. Chamath shared that this group came from diverse fields- physicists, chemists, doctors and financial analysts. So by the time Chamath and his team took a decision on investing, they had detailed, multidimensional  information about the company, courtesy this diverse group collectively interested in one company. There are private associations that jointly work on a financial investment decision even though the money spent is personal. This gives every member of the association a multidimensional approach to investment decision making, something similar to what retail investors did collectively to outdo hedge fund capital. Crowd funding in startups and charitable causes is a similar process that is already seeing democratisation of capital. 

Impact: Democratisation of capital means being cognizant of this risk while making investment decisions, notwithstanding the size of the investment. 

This is a new framework to aid decision making. It is based on the behavioural changes that we are seeing due to growth of social platforms. Platforms bind people in communities and manage a democratic world in that domain. Democratisation is here to stay. It goes with my kitchenomics too, where the service providers have decided to place my sugar bowl in a corner difficult to reach.