This Week in Startups E1077: “Alchemy” Author Rory Sutherland on the Darwinian approach to business, analyzing outliers, why eccentric CEOs have a psychological advantage with customers & more!
Jun 19, 2020
Rory Sutherland, author of "Alchemy" and vice chairman at Ogilvy, explores the fascinating interplay of psychology and business. He discusses how eccentric CEOs may have a unique advantage in connecting with customers. Sutherland shares insights on the Darwinian approach to business, highlighting the importance of understanding outliers. He dives into why product value often goes beyond what is stated, and how context shapes consumer experiences. Plus, he tackles the quirks of American attitudes towards behavioral economics, linking them to broader societal trends.
02:19:53
Architecture as Art
- Rory Sutherland lives in an architecturally unique apartment near London.
- He argues architecture is the cheapest way to buy art, as aesthetics are a low priority in building purchases.
Remote Work Efficiency
- Rory Sutherland enjoys working remotely and finds it more efficient.
- He believes the pandemic has revealed the extraneous stress associated with traditional office work.
Invent Your Job Title
- Create your own job title, advises Rory Sutherland.
- This allows freedom of invention and avoids comparison with predecessors.
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Intro
00:00 • 3min
Architecture and the Future of Work
03:12 • 8min
Navigating Customer Relationships and Unconventional Ideas
11:39 • 3min
The Psychology of Pricing and Consumer Preferences
15:04 • 11min
Exploring the Intersection of Advertising and Consumer Aspirations
25:46 • 3min
The Emotional Impact of Product Design
29:03 • 8min
The Conversational Value in Modern Consumerism
37:32 • 4min
Contextual Innovation and Ecological Impact
41:46 • 4min
Marketing, Masks, and Media: Behavioral Insights
45:47 • 21min
Framing and Governance: The Perception Dilemma
01:07:08 • 6min
Navigating Bias and Inequity
01:12:59 • 20min
Reframing Perspectives on Technology
01:32:29 • 7min
Revolutionizing Hybrid Meetings with the Meeting Owl
01:39:17 • 2min
Rethinking the Remote Workplace
01:41:02 • 9min
The Art of Audiobook Narration and Musical Mastery
01:50:18 • 2min
Authenticity and Evolution in Media
01:52:46 • 17min
The Quest for Connection and the Impact of Rewatchable Stories
02:09:43 • 3min
Van Life and Global Influences
02:12:27 • 7min
Alchemy
The Dark Art and Curious Science of Creating Magic in Brands, Business and Life
Rory Sutherland
In this book, Rory Sutherland explores the art and science of creating magic in brands, business, and life.
He combines scientific research with entertaining stories and case studies from his career, including campaigns for AmEx and Microsoft.
Sutherland emphasizes the importance of understanding human behavior, highlighting how decisions are often influenced by subtle external signals rather than objective qualities.
The book challenges traditional marketing strategies by advocating for a more holistic and creative approach, using techniques such as storytelling, social proof, and framing to influence consumer decisions.
It also explores how these principles can be applied to various social aims beyond just selling products.
The Darwin Economy
Liberty, Competition, and the Common Good
Robert H. Frank
In 'The Darwin Economy,' Robert H. Frank challenges the traditional libertarian view of economics by arguing that Charles Darwin's principles of natural selection provide a more accurate model for understanding economic competition.
Frank contends that the 'invisible hand' of Adam Smith often fails in cases where the value of goods is relative rather than absolute, leading to collective action problems and market failures.
He proposes policy changes, such as consumption taxes and 'sin taxes,' to address these issues and promote a more equitable distribution of wealth.
The book highlights examples of 'positional consumption' and how individual self-interest can harm the community as a whole, drawing parallels with biological phenomena like runaway sexual selection.
Influence
The Psychology of Persuasion
Robert Cialdini
In this highly acclaimed book, Dr. Robert B. Cialdini explains the psychology behind why people say yes and how to apply these insights ethically.
The book outlines six universal principles of influence: Reciprocation, Commitment and Consistency, Social Proof, Liking, Authority, and Scarcity.
The new and expanded edition includes a seventh principle, Unity, along with new research, insights, and examples.
Cialdini uses memorable stories and relatable examples to make the subject accessible and easy to understand, helping readers become more skilled persuaders and defend themselves against unethical influence attempts.
Zero to One
Notes on Startups, or How to Build the Future
Peter Thiel
In 'Zero to One,' Peter Thiel argues that true innovation comes from creating something entirely new, going from 'zero to one,' rather than incrementally improving existing ideas.
He emphasizes the importance of vertical progress through technology and the benefits of monopoly in driving innovation.
Thiel also discusses the need for long-term planning, the importance of finding the right co-founders, and the power law in startup success.
The book challenges conventional wisdom and encourages readers to think critically and aim big to build the future.
The Ride of a Lifetime
Lessons Learned from 15 Years as CEO of the Walt Disney Company
Robert Iger
In 'The Ride of a Lifetime,' Robert Iger shares his experiences and the lessons he learned during his 15 years as CEO of The Walt Disney Company.
The book covers his early career, his rise to the CEO position, and his strategic decisions that transformed Disney into a global media giant.
Iger discusses key acquisitions like Pixar, Marvel, and 21st Century Fox, and emphasizes the importance of leadership principles such as optimism, courage, decisiveness, fairness, and integrity.
He also reflects on his relationships with influential figures like Steve Jobs and George Lucas, and how emotional intelligence played a crucial role in his business dealings.
The book provides insights into Iger's vision for Disney, which included a focus on high-quality branded content, embracing technology, and expanding globally.
The Economic Naturalist
In Search of Explanations for Everyday Enigmas
Robert H. Frank
In 'The Economic Naturalist', Robert H. Frank uses student questions to explore how economic principles can explain everyday phenomena.
The book covers a wide range of topics, from product design to social behavior, highlighting the practical application of economic concepts in real-world scenarios.
It also delves into behavioral economics, challenging traditional assumptions of rationality and self-interest.
The fish that ate the whale
The Life and Times of America's Banana King
Rich Cohen
This book tells the fascinating story of Samuel Zemurray, who started as a roadside banana peddler and eventually built a sprawling empire involving banana cowboys, mercenary soldiers, Honduran peasants, CIA agents, and American statesmen.
Rich Cohen's narrative explores Zemurray's rise to power, his involvement in overthrowing Central American governments, and his complex role in American history.
The book delves into Zemurray's personal life, his business exploits, and the moral implications of his actions, painting a nuanced portrait of a man driven by an indomitable will to succeed.
1:00 Jason intros "Alchemy" author Rory Sutherland
3:45 Architecture is the cheapest way to buy art
6:01 How Rory is dealing with quarantine, why he prefers working from home, and will businesses be more efficient post-COVID?
14:12 What is Rory's job, why you should strive to create your own job title, treating the free market as Galapagos Island, using the Darwinian approach to business & analyzing outliers
19:47 Why some business successes are due to psychological discoveries: Red Bull, Dyson & Nespresso
27:25 Jason's theory on why Dyson succeeded, Kano theory on product development, why eccentric CEOs have a psychological advantage with customers, how Uber's arrival map was the key feature of the product
33:48 Why the actual value of products are typically not the proposed value of products
39:40 How new products hold value as a conversation starter, how context, setting & framing is essential to innovation
43:21 Two ways to create economic value: find something people want and figure out how to make it OR figure out what you can make and make people want it & examples: Lionfish, Fish That Ate The Whale, Royal Potatoes
50:13 Why are Americans resistant to behavioral economics? Is there still a hangover from McCarthyism? How this relates to COVID and wearing masks
1:02:08 Daily news is 95% noise, why political news coverage doesn't reflect political reality
1:11:40 Why modern politics is dumb since far left and far right are much closer than they've ever been, issues with referrals & nepotism
1:21:06 How Rory got his first job in advertising "as a weirdo" and the wildcard since he was hired as part of a group, individual hiring vs. group hiring
1:23:20 TWiST Book Club Questions - Casey: Favorite behavioral study experiment or one that he found the results to be surprising? (ie. Milgram experiment or Stanford Prison Study)
1:32:12 Catherine: What’s Rory’s favorite alchemist moment of his own from work? Has he had to advocate for an illogical idea, and how did he persuade others?
1:41:01 What will we lose by being remote?
1:51:19 Reading their own audiobooks, how cheaper and easier consumption does NOT cannibalize original mediums
2:01:26 How Rory would reinvent the theatre experience, why modern corporations are slow to innovate & experiment
2:11:18 Greatness of re-readable books and rewatchable movies/television
3:45 Architecture is the cheapest way to buy art
6:01 How Rory is dealing with quarantine, why he prefers working from home, and will businesses be more efficient post-COVID?
14:12 What is Rory's job, why you should strive to create your own job title, treating the free market as Galapagos Island, using the Darwinian approach to business & analyzing outliers
19:47 Why some business successes are due to psychological discoveries: Red Bull, Dyson & Nespresso
27:25 Jason's theory on why Dyson succeeded, Kano theory on product development, why eccentric CEOs have a psychological advantage with customers, how Uber's arrival map was the key feature of the product
33:48 Why the actual value of products are typically not the proposed value of products
39:40 How new products hold value as a conversation starter, how context, setting & framing is essential to innovation
43:21 Two ways to create economic value: find something people want and figure out how to make it OR figure out what you can make and make people want it & examples: Lionfish, Fish That Ate The Whale, Royal Potatoes
50:13 Why are Americans resistant to behavioral economics? Is there still a hangover from McCarthyism? How this relates to COVID and wearing masks
1:02:08 Daily news is 95% noise, why political news coverage doesn't reflect political reality
1:11:40 Why modern politics is dumb since far left and far right are much closer than they've ever been, issues with referrals & nepotism
1:21:06 How Rory got his first job in advertising "as a weirdo" and the wildcard since he was hired as part of a group, individual hiring vs. group hiring
1:23:20 TWiST Book Club Questions - Casey: Favorite behavioral study experiment or one that he found the results to be surprising? (ie. Milgram experiment or Stanford Prison Study)
1:32:12 Catherine: What’s Rory’s favorite alchemist moment of his own from work? Has he had to advocate for an illogical idea, and how did he persuade others?
1:41:01 What will we lose by being remote?
1:51:19 Reading their own audiobooks, how cheaper and easier consumption does NOT cannibalize original mediums
2:01:26 How Rory would reinvent the theatre experience, why modern corporations are slow to innovate & experiment
2:11:18 Greatness of re-readable books and rewatchable movies/television