The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

Today’s episode is all about scarcity. This is a term you are familiar with, but I am willing to bet you aren’t using it in all the ways it can be leveraged in your life and business. The term gets thrown around a lot and people know some of how it works, but the nuance is so so so much more than you can imagine.  This refreshed episode, which originally aired in the fall of 2018, will introduce you to the depth that this topic can have to set you up for this Friday’s episode with Mindy Weinstein, author of the book The Power of Scarcity which will absolutely blow your mind. It is so good. Within the book, she includes so much depth and nuance in a way I have never heard anyone else talk about scarcity. It’s fascinating.  Today is a primer to expand your thoughts about scarcity in a way that will get you ready to continue your learning when that episode comes out on Friday. As you listen, reflect upon times in your own life where you have been pulled in by scarcity, and where you can incorporate it more into your business. Show Notes: [00:39] Today’s episode is all about scarcity. This is a term you are familiar with, but I am willing to bet you aren’t using it in all the ways it can be leveraged in your life and business. [02:15] In traditional economics, scarcity occurs when an item has limited availability but unlimited desire for that item. This could include natural resources like oil and water or more abstract concepts like time. [02:55] Studies have proven that we see things as more valuable when they are less readily available.   [05:55] Scarcity and value are closely tied together. Our crazy brains think less equals more…even when it is kinda weird. When something is scarce it triggers our loss aversion because we don’t want to miss out on the opportunity.  [08:13] Scarcity can only take effect when items are truly limited. This means not everyone gets one. [10:49] Scarce items can take on a life of their own.   [11:37] Scarcity can create a cult following, which means other people do the marketing for you. This makes the brand bigger than anything you can do on your own. [14:57] These examples from Starbucks and Disney are a combination of scarcity and availability. This is essentially capitalizing on something popular and becoming part of the craze.  [15:26] If you are going to take a shot at incorporating scarcity, know that not everything will cause an uproar of epic proportions. Sometimes there will be duds and that is ok. The question is what did you learn from them for next time? [16:50] There are some words you can use to trigger scarcity in the brain of your consumer, including: limited time, extended, custom, handcrafted, one of a kind, closeout sales, everything must go, and last chance. These terms can be added to more than products, extending into services as well.  [18:27] If you do a promotion or discount, make sure it is short term and remind people when it ends. You can also limit the quantity available and stick with it.  [20:16] Contests and giveaways can work really well for you, but there are a lot of rules and you need to make sure you play the game.  [21:37] It is easy to sound like a cheesy infomercial when you’re using scarcity, so take a step back and don’t get too over the top. [23:23] Scarcity and availability are another peanut butter and jelly sort of concept grouping like anchoring and relativity.  [26:15] Scarcity is a tactic that works especially when combined with availability.  [27:05] If there is not enough value they need to control the supply that is available to keep demand high.  [28:12] Melina’s closing thoughts Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: The Power of Scarcity, by Mindy Weinstein What Your Customer Wants and Can't Tell You, by Melina Palmer Influence, by Robert Cialdini What Your Employees Need and Can't Tell You, by Melina Palmer Power of Regret, by Dan Pink Top Recommended Next Episode: Availability Bias (ep 15) Already Heard That One? Try These:  The Top 5 Wording Mistakes Businesses Make (ep 2) What is Value? (ep 234) Loss Aversion: Why Getting New Stuff Is Not The Same (ep 9) The Truth About Pricing (ep 5) The Power of Regret with Daniel Pink (ep 214) Dr. Robert Cialdini and the (Now!) 7 Principles of Persuasion (ep 157) A Behavioral Economics Analysis of Costco (ep 47) Starbucks: A Behavioral Economics Analysis (ep 73) Disney: A Behavioral Economics Analysis (ep 144) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  What is ‘Scarcity’ Influence: Science and Practice (5th Edition) Narcissists as consumers: The effects of perceived scarcity on processing of product information The Top 10 Most Expensive Stamps In The World The Five Most Expensive Coins Ever Sold at Auction Costco Business Model and Their Strategy @TheRealPSL on Twitter Want a Starbucks Unicorn Frappuccino? Too bad. Most stores sold out Starbucks Coffee Rose Gold Pink Sequin 24oz Venti Tumbler Cold Cup The Rarest and Best Disney Mickey and Minnie Mouse Ears How ‘Tickle Me Elmo’ Caused Holiday Hysteria Back In 1996 Have You Ever Tried to Sell a Diamond?

Conflict expert Amy Gallo discusses workplace dynamics, communication, and dealing with difficult people. The conversation highlights the importance of emotional intelligence, negotiation skills, and building quality relationships at work. It also explores strategies for navigating challenging personalities and reframing negativity for team success.

Today’s episode is all about fundamental attribution error. Why is this the Tuesday Refresh? Well, when contributing editor to the Harvard Business Review, Amy Gallo, is on the show this coming Friday to discuss her book Getting Along: How to Work With Anyone (Even Difficult People) we specifically talk about this concept in detail. Also, upon review, this episode first aired on March 20, 2020…something tells me it hasn’t gotten as many listens as it deserves - ha! It is so prevalent in every interaction at work, that this all made it an easy choice for being today’s episode. The episode explains what fundamental attribution error is and how you experience it every single day at work and in your personal life. In essence, it is when we give ourselves the benefit of the doubt…but don’t give that same benefit to others. This happens because we humans are very tribal by nature. Our brains are constantly sorting people into “us” and “them” categories. When we have people in the “us” world (yourself, your significant other, your family, your best friend, or favorite colleague) they get treated differently than those in a “them” category (people who don’t look or sound like you, people in a different department that is always at odds with your own, that person who made you feel dumb at the meeting six years ago). Even if you don’t want it to be a factor, it is. Our brains do this, and it is important to understand the bias and how it impacts our behavior (and those around us) so we can properly leverage it — because avoiding it doesn’t work.  Show Notes: [00:40] Today’s episode is all about fundamental attribution error. The episode will get into more detail on what fundamental attribution error is and how you experience it every single day at work and in your personal life. [02:28] As an interesting side note, I was looking back to share when this episode first aired as I always like to make a note of it and the release date was March 20, 2020. I couldn’t help but laugh as that date had a pretty visceral reaction for me. I’m guessing it might have for you too. [03:48] I like to call fundamental attribution error the “Pot / Kettle Phenomenon.” When you use a different criteria to think about yourself and how you are acting than you use to think about and judge others…it is fundamental attribution error.  [04:28] A classic example is when driving. How do you feel about someone who cuts you off in traffic and how do you feel about yourself when you cut someone else off in traffic? When thinking about yourself, you know this is a one-time thing and give yourself the benefit of the doubt (while that other person is labeled a “jerk”).  [06:02] We also see this with movies in who is labeled good or bad. The best example is the Wicked Witch in the Wizard of Oz.   [09:00] Your brain is biased to think of you as different and better than others, especially people that are not like you.  [09:30] You don’t have to let that immediate reaction form a lasting impression of someone else. You can put in a little effort once you understand the brain process. This can make all those relationships at work and in your personal life a little more pleasant.  [11:12] The big difference between the way we see others and how we see ourselves is the intrinsic story compared to the extrinsic story. Intrinsic is internal and extrinsic is external.  [12:48] In general, we are much more likely to say that others’ internal attributes or personalities led to their bad behavior, while we see ours as being from external situational circumstances.  [13:44] Four ways to change the ways you react to others: 1) Decide you want to work on this and understand why it is important to you. 2) Choose an initial group or person to start the process with. 3) Reframe your “in” group. 4) Consciously adjust to extrinsic attributes for 30 days or a decent number of total interactions and then move to the next group.  [15:42] It is also important to remember that fixing your mindset on the way you think about others is about your choice. You can’t change them or their responses to situations.  [17:35] If you know what makes you think that way and who’s in the “in” group and the “out” group you can look to expand that “in” group so you can be less biased overall.  [18:29] When you broaden the circle of the “in” crowd you start to see everyone in a better light. While you might not notice it until you start to open up, it can greatly impact all of your working relationships.  [21:00] Conquering your fundamental attribution error to have better relationships with a department means every time you have a negative response you need to check in with yourself and remember they are part of your “in” group. Then think of something positive about them to replace the negative feeling you had initially.   [22:11] When you force yourself to look deeper for positives, it can help round them out and build that intrinsic story.  [23:00] The easiest way to see someone as your “in” group is to find ways you are similar. [24:08] I gave the tip of starting with one group to begin with to get the ball rolling but once that snowball starts do what you can to add on and add on.  [25:10] It is important to look at your own behavior the way others do as well.  Try to stop writing an extrinsic story for why it is okay.  [26:41] When you understand how your brain is sorting other people and treating them differently and how you are many other peoples’ “them” it can really help you to adjust your own behavior so you can have better relationships at work and in your personal life. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: What Your Employees Need and Can't Tell You, by Melina Palmer Getting Along, by Amy Gallo A More Just Future, by Dolly Chugh How Minds Change, by David McRaney  How To Have Difficult Conversations About Race, by Kwame Christian Top Recommended Next Episode: Confirmation Bias (ep 102) Already Heard That One? Try These:  Time Discounting (ep 51) Overview of Personal Biases (ep 45) Biases Toward Others (ep 46) Focusing Illusion (ep 89) Coronavirus and How the Brain Responds to Pandemics (ep 91) How to Get (and Stay) Motivated (ep 67) How to Set, Achieve & Exceed Brainy Goals (ep 248) The Brainy Benefits of Gratitude (ep 236) Vulnerability Loops (ep 229) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  Fundamental Attribution Error Here’s Why Rushing to Back-to-Back Meetings Is Hurting Your Reputation Why Learning To Embrace Criticism Should Be Your Top Resolution This Year

In today's conversation, I am joined by Dr. Tomas Chamorro-Premuzic, an international authority in psychological profiling, talent management, leadership development, and people analytics. His commercial work focuses on the creation of science-based tools that improve organizations' ability to predict performance, and people's ability to understand themselves. He is currently the Chief Innovation Officer at Manpower Group, co-founder of Deeper Signals and Metaprofiling, and Professor of Business Psychology at University College London and Columbia University. He has previously held academic positions at New York University and the London School of Economics and lectured at Harvard, Stanford, and London Business Schools, Johns Hopkins, IMD, and INSEAD, as well as being the co-founder and CEO of BrazenX and the CEO at Hogan Assessment Systems.  Dr. Tomas has written 11 books and over 150 scientific papers on the psychology of talent, leadership, innovation, and AI, making him one of the most prolific social scientists of his generation. His work has received awards by the American Psychological Association, the International Society for the Study of Individual Differences, and the Society for Industrial-Organizational Psychology, to which he is a Fellow. Dr. Tomas is also the founding director of University College London's IndustrialOrganizational and Business Psychology program, and the Chief Psychometric Advisor to Harvard's Entrepreneurial Finance Lab.  Over the past 20 years, he has consulted to a range of clients. His media career comprises over 100 TV appearances and he is a keynote speaker for the Institute of Economic Affairs. I am so beyond delighted and honored that he is joining me on the show today to discuss his newest book, I, Human. Show Notes: [00:43] In today's conversation, I am joined by Dr. Tomas Chamorro-Premuzic, an international authority in psychological profiling, talent management, leadership development, and people analytics.  [01:41] Dr. Tomas has written 11 books and over 150 scientific papers on the psychology of talent, leadership, innovation, and AI.  [04:07] Dr. Tomas shares his experience, his work, and how he found himself doing the work he does now. His background is in psychology. [06:37] It is generally more useful to be smarter than not, but there are many other things that contribute to peoples’ success in any area of life. [09:33] Very sought after strengths can come with limitations and turn into weaknesses if overused.  [12:24] Humans are naturally tribal and we want to construct very coherent identities. With that comes the subjective experience that we belong to some groups and we don’t belong to others.  [13:21] We also strive to feel very rational and consistent. It is a lot simpler and generally more pleasant to hold attitudes, beliefs, and values that are compatible with each other.  [15:07] So much of this world can be changed or modified a little bit if we convince people to spend time with others who don’t think like them.  [17:34] We tend to pick leaders based on their confidence instead of their competence. (Dunning-Kruger Effect) [18:11] A surplus of confidence really dilutes self awareness. The better you think you are at something the worse you probably are at that thing. [20:39] Instead of blaming women for not behaving overconfidently (more like the often incompetent men who move forward when they don’t have the talents to back it up). We should instead stop falling for men who do that.  [21:47] If leadership selection was gender blind you would end up with 60-65% of women in charge because of things like emotional intelligence, heart skills, qualifications, and absence of dark side traits. The actual frequency is 80-20 in favor of men. [23:37] Gender diversity and inclusion interventions have become more data driven in the last five years.  [26:13] The entire world seems to be talking about Chat GPT. Tomas shares how that relates to his new book, I Human.  [29:02] Three avenues to protect and preserve our expertise are to focus more on asking questions, really pick one or two areas of expertise that you invest in, and go from insights to actions.   [30:42] Machines and technologies have always pushed us to upgrade ourselves.  [33:30] In the book he answers the question of what it means to be human in this day and age when all the focus is on artificial intelligence and machines are clearly evolving and advancing.  [34:59] The book has two parts. The first part highlights some of the worst behaviors that we have already seen humans display as a consequence of being so dependent on AI and related technologies.  [37:25] The second and last parts of the book are a request for us to rediscover and reclaim the qualities that make us special, unique, and different from machines.  [39:45] The shift really needs to be much more prominent from teaching information to teaching skills, behaviors, and ethics.  [41:33] Organizations, nonprofits, institutions, governments, and societies need to sort out the issue of reskilling and upskilling so people are not made useless or redundant.  [43:45] Businesses should find ways to really humanize work in the age of machines and AI is really important.  [44:56] Find the time to ask questions. Don’t take facts at face value. Focus on the things that you find interesting and useful.  [47:31] Melina’s closing thoughts  [49:26] A forced shift in teaching methods and how we test knowledge and show intelligence isn’t inherently bad. There are some real opportunities there.  [52:42] Try to understand your own brain’s tendencies and not believe everything you hear, see, or read. Find ways to do your own fact-checking whenever possible.  Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: I, Human, by Tomas Chamorro-Premuzic Why Do So Many Incompetent Men Become Leaders? (And How To Fix It), by Tomas Chamorro-Premuzic Predictably Irrational, by Dan Ariely Both/And Thinking, by Wendy Smith & Marianne Lewis Beautiful Questions in the Classroom, by Warren Berger Connect with Tomas:  Tomas’ Website Tomas on Twitter Top Recommended Next Episode: Dunning-Kruger Effect (ep 266) Already Heard That One? Try These:  When Machine Learning Meets Neuroscience, with Ingrid Nieuwenhuis (ep 170) AI, Blockchain, Machine Learning, & Behavioral Economics with Manuj Aggarwal (ep 192) Dan Ariely Interview: Discussing Shapa, the Numberless Scale (ep 101) Both/And Thinking with Dr. Wendy Smith (ep 261) Confirmation Bias (ep 260) Herding (ep 19)  The Power of Us with Dr. Dominic Packer (ep 178) Social Proof (ep 87) Unity (ep 216) Priming (ep 18) Avoiding Everyday Work Disasters, an Interview with Dr. Gleb Tsipursky (ep 111) Optimism Bias (ep 34) Questions or Answers (ep 4) The Most Important Step in Applying Behavioral Economics: Understanding the Problem (ep 126) Negativity Bias (ep 223) A More Beautiful Question with Warren Berger (ep 200) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter Why Do So Many Incompetent Men Become Leaders? How ChatGPT Is Redefining Human Expertise: Or How To Be Smart When AI Is Smarter Than You.

Today’s episode is all about the Dunning Kruger Effect, which was the second most downloaded episode of the year in 2022, so in case you missed it I wanted to be sure you had a chance to listen to it like so many of your peers did. :)  If you DID hear this episode last year when it came out, I highly recommend you still tune in now because I can guarantee it will hit you differently today than it did back then. You are a different person and you will glean different insights from the episode, I promise.  So, why this episode and why today? Well, in Friday’s episode with Dr. Tomas Chamorro-Premuzic, we talk explicitly about the Dunning Kruger Effect and how it applies in life and business when he shares about his new, fascinating book I, Human and our discussion is specifically around one of his other books, Why So Many Incompetent Men Become Leaders (And How To Fix It). That book has too good of a title to not be honored with a refresh on the Dunning Kruger Effect, which looks at the relationship between confidence and competence, as you will learn more about today. Show Notes: [00:39] Today’s episode is all about the Dunning Kruger Effect, which was the second most downloaded episode of the year in 2022. [02:22] To put the Dunning-Kruger effect into its simplest form, it would say essentially that people who are unskilled tend to overestimate their abilities and those who are very skilled experts will underestimate theirs. [03:15] Think about a kid who graduates from high school and believes they know everything. [03:35] When someone graduates from high school, they are at a point that has come to be known as the “Peak of Mount Stupid.” At the peak of mount stupid, someone has lots of confidence, but it isn’t built on much competence. They have no idea how much they don’t know so they are blissfully unaware of their precarious position and how close they are to falling right off the cliff. When this kid gets to college and realizes they don’t know nearly as much as they thought they did, they fall into the “Valley of Despair.” [05:51] This is an opportunity to look at the things you don’t yet know and begin to research them. This gradual climb is called the “Slope of Enlightenment.” You slowly gain confidence as you grow your competence…though you might never get back up to the level of confidence you had way back at the peak of mount stupid. [06:48] If you take a moment now to reflect upon your own life, I am guessing you could pretty easily come up with at least half a dozen examples where the Dunning-Kruger effect reared its ugly overconfident head. [08:17] While you are an expert in one thing, you are way overconfident in something else, where you don’t have any idea of the ocean of stuff you don’t know. [09:23] How the effort heuristic relates.  [11:16] I can live in blissful unawareness of my inadequacies forever and never have it be an issue until I try the thing enough to realize that I should have been a little less confident. [12:30] Have some awareness and don’t assume you know better than everyone else. [13:27] There is a flip to this as well. (It isn’t all about mount stupid). Remember, there is a point where you become an expert and then grossly underestimate your own abilities. [14:45] You can’t do this for everything, but on the things that matter it is worth doing a little Dunning-Kruger evaluation every so often to discover if you are underestimating or overestimating your confidence and competence at this point. [15:41] Look at your own moments where you have high confidence and low competence (or high competence with not enough confidence) to determine if you are showing up in the best way possible. Also, look at others to determine where they are on that Dunning-Kruger scale. [17:08] Another place where the Dunning-Kruger effect is really critical to keep in mind is when you look at coaching or giving advice to members of your team. [18:40] Giving them too many things to change while they are feeling the stress in the “valley” is going to make the problem worse, so you need to be selective on what advice to give them. [19:55] Know that when people have low competence in something, they are likely to be overconfident in their own abilities. Those who are very competent have a tendency to underestimate their own skill or ability. [20:3] There is an interesting point when there is an increase in knowledge where you realize all of what you don’t know—that increased competence results in a drastic drop in confidence. [21:17] As you build knowledge, know that you will gradually underestimate your abilities, skills, and all the effort and training that went into what you now know and can do. Just because it is easy for you doesn’t mean it isn’t of value to someone else. Especially when someone is new, overshare information to help with where you both are on the Dunning-Kruger scale. [22:04] Don’t take your spot on the Dunning-Kruger scale as a fixed point. The context is always changing, there are new discoveries and technologies and experts every day. [23:16] I just love this concept in so many ways. It is a great opportunity to look at ourselves, and others so we can overcome obstacles we may be putting in our own way, avoid big crashes into that valley of despair, be better at coaching others, and have better relationships with colleagues of all kinds — and even understand our relationship with technology. [24:12] Keep the Dunning Kruger Effect in mind as you look around at your own choices and the relationships you have with others over the next couple of weeks. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: I, Human, by Tomas Chamorro-Premuzic Why Do So Many Incompetent Men Become Leaders? (And How To Fix It), by Tomas Chamorro-Premuzic What Your Employees Need and Can't Tell You, by Melina Palmer Getting Along, by Amy Gallo You Are Not So Smart, by David McRaney Top Recommended Next Episode: Confirmation Bias (episode 102) Already Heard That One? Try These:  Framing (ep 16) Priming (ep 18) What is Value? (episode 234) Mental Accounting (ep 56) Partitioning (ep 254) How to Raise Your Prices (ep 77) The Truth About Pricing (ep 5) Focusing Illusion (ep 89) Get Your D.O.S.E. of Brain Chemicals (ep 123) Decision Fatigue (ep 132) IKEA Effect & Effort Heuristic (ep 112) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  Dunning-Kruger Original Research Baader-Meinhof Phenomenon

In today's conversation, I am joined by Dr. Nick Epley, Director of the Center for Decision Research at the University of Chicago Booth School of Business. I was introduced to Nick by the amazing Ayelet Fishbach, who has been on The Brainy Business twice before. Nick studies social cognition—how thinking people think about other thinking people—to understand why smart people so routinely misunderstand each other. He teaches an ethics and well-being course to MBA students called Designing a Good Life (sounds like a perfect fit around here, and we do talk about this in the episode). His research has appeared in more than two dozen empirical journals, been featured by the New York Times, Wall Street Journal, CNN, Wired, NPR, and more.  As Nick will share with us today...you may not realize it, but you were born with an extraordinary ability to understand what others think, feel, believe, want, and know. You are a mind reader! It’s a sixth sense you use every day, in every personal and professional relationship you have. Today, Nick will share a bit of what scientists have learned about our ability to understand others and the surprising mistakes we so routinely make. Show Notes: [00:45] In today's conversation, I am joined by Dr. Nick Epley, director of The Center of Decision Research at the University of Chicago, Booth School of Business. Nick studies social cognition. [02:52] You may not realize it, but you were born with an extraordinary ability to understand what others think, feel, believe, want, and know. You are a mind reader.  [05:02] Nick shares about himself and his background. He is a professor of behavioral science at the University of Chicago.  [07:32] There are systematic gaps between our beliefs about someone else and reality. If we can understand what those gaps are we can understand why they exist.  [09:38] The quality of our social relationships is a critical determinant of our happiness, probably the most important. Other people are the single biggest source of our happiness as well as our misery.  [11:55] One of the big barriers to people being more social in their daily lives is that they underestimate how social others are.  [13:35] We get that risk-reward trade-off with other people wrong. We think it is riskier to reach out and engage than it is.  [15:05] Failing to realize that other people are social is a barrier to us. [17:43] One of the common things we find is that people are often surprised at how much they learned, how enjoyable the conversation was, and how much they have in common with the other person.  [20:22] Conversations have a magnetic quality to them. It draws people together and surprises people.  [22:02] If you don’t like small talk…stop having it. When you take an interest in other people they reveal interesting stuff and take an interest in you.  [24:18] Take an interest in another person - that is how you have good conversations.  [26:26] If you care about somebody then you ask them questions that matter to them. Treat other people like they are good friends.  [28:09] When people imagine having a meaningful conversation with a stranger, they think the other person is not going to want to hear about it or care about it. When they get into it and open up to each other it generally goes way better than people expect.  [29:56] Having a culture where people are open, honest, and willing to engage and connect with one another, they feel connected to the place because they are connected to each other is the kind of culture that every organization wants to have and helps get the job done.  [31:56] People’s reluctance to reach out and engage with others is exactly the kind of barrier that organizations would want to get rid of.  [33:38] The things that basic psychology has to teach people in business is the same thing we have to teach people in their everyday lives.   [36:02] If you are bringing people into your organization, think about interviewing with your culture in mind.  [38:46] When you make connection activities routine, common, easy, and part of the habits so people aren’t thinking about it, you design it with the context so it just happens this way that is how they spread through organizations and you sustain them.  [41:30] Often organizations don’t choose to make these types of opportunities a priority.   [43:52] Typing and texting lack the emotion and the thinking behind those words that you get from a person’s voice.  [45:32] Share kind thoughts with other people.  [46:35] Think about somebody you feel grateful to and write them a note. Try to connect with a stranger. [49:17] Melina’s closing thoughts [50:36] Take the time for real human connections, even small ones each day and see what happens.  Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: Mindwise, by Nick Epley Nudge, by Richard Thaler & Cass Sunstein Get It Done, by Ayelet Fishbach Both/And Thinking, by Wendy Smith & Marianne Lewis Happier Hour, by Cassie Holmes Connect with Nick:  Nick’s Website Top Recommended Next Episode: Vulnerability Loops (ep 229) Already Heard That One? Try These:  Get It Done: Surprising Lessons from the Science of Motivation with Ayelet Fishbach (ep 186) How to Make 2023 Your Best Year Ever with Ayelet Fishbach and Cassie Holmes (ep 249) NUDGES & Choice Architecture (ep 35) Herding (ep 19)  Focusing Illusion (ep 89) The Brainy Benefits of Gratitude (ep 236) You Have More Influence Than You Think, Vanessa Bohns (ep 197) Both/And Thinking with Dr. Wendy Smith (ep 261) Herding (ep 19)  The Power of Us with Dr. Dominic Packer (ep 178) Using Behavioral Science to Build Connections, an interview with Jon Levy, author of You’re Invited (ep 150) Reciprocity: The Amazing Power of Giving (ep 238) Only 1% of People Blow the Whistle at Work—How to Fix That, with Nuala Walsh (ep 153) Habits (ep 256) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter Undersociality: miscalibrated social cognition can inhibit social connection Why Your Social Life Is Not What It Should Be Go Ahead, Ask for Help. People Are Happy to Give It. You Should Actually Send That Thank You Note You’ve Been Meaning to Write Small talk is boring. Our research shows how you can do better. The Unexpected Power of Random Acts of Kindness

Today’s episode is all about herding. We humans are a herding species, just like cows and sheep and guppies, and this has a big impact on our behavior. We are tribal and we look to others to help us stay safe and make good decisions. Or, at least, what our subconscious tells us is a good decision. :) This is why things like testimonials are so important.  Herding has a dedicated chapter in my first book, What Your Customer Wants and Can’t Tell You because they are so important for businesses to understand.  The reason I chose to refresh this episode is because of the guest who is joining me this coming Friday, Nick Epley. We talk about the importance of social connection and why we often don’t do the things that will help us to be happier because we perceive them as being uncomfortable or awkward or against the social norms in the moment.  In the business context, imagine how much value could come from having a simple chat with your colleagues or people at a conference. Most people probably stick to their groups where they are already comfortable and don’t strike up a conversation, but what could happen if you did? There is a lot of value in breaking from the herd and having that conversation, even for less than a minute, which we will talk about more on Friday when episode 265 with Dr. Nick Epley comes out. And as you listen today, I encourage you to reflect on all the times you thought about striking up a conversation or asking a question and didn’t. What aspects of herding made you feel like you shouldn’t and what can you do in the future to engage with others more? It is valuable for you both professionally and personally, I promise. Show Notes: [00:39] Today’s episode is all about herding. We humans are a herding species, just like cows and sheep and guppies, and this has a big impact on our behavior. [02:21] In the business context, imagine how much value could come from having a simple chat with your colleagues or people at a conference. [04:07] Humans herd in the same way as other species for most of the same reasons. The main reason animals herd is for protection.  [05:41] Herding is in our nature.  [08:02] Herding helps us learn by observation. Watching where others go and following the group keeps you safe.  [09:38] As humans have evolved, herding behavior has not always served us well. Herding is there to protect individuals, not the group or a complex society as a whole.  [11:41] We choose restaurants by online reviews and crowdedness. We think the people must know something we don’t.  [12:58] People are more likely to leave tips when others have done it.   [15:51] Herding mentality is much more likely to come out when people feel vulnerable or are unsure of themselves.    [17:23] It is better to be conventionally wrong than unconventionally right.  [18:58] Studies have shown that up to 75% of participants will give an answer they know is wrong to go with the group.  [21:07] When everyone follows the herd and doesn’t take the time to do their own research stocks or companies get artificially inflated by the confidence of others.   [23:42] Crypto is absolutely impacted by the herd mentality.  [24:16] Always beware if your brain is making you feel anxious to take steps and do something just because everyone is doing it or having your FOMO triggered in a way that makes you want to do less research before investing your time, energy, or other resources.   [27:48] People like to be part of the group and this is increased when the other people in the group are comparable and more like you.  [28:14] Whatever your business does, you are in the business of solving problems. The only reason people buy anything is to solve a problem.  [30:52] Being in a group makes us feel safe and happy because of this release of oxytocin. When we are not part of the group, our brains do whatever they can to get that bliss feeling back by seeking out more group relationships to help us feel safe and warm.  [33:28] while we can’t change our natural tendency to herd, you do have options to change your behavior.  [34:28] Understanding what will trigger herd mentality in your customers for both good and bad can help you to message better and more effectively.  [36:52] If you really care about starting a movement, have the courage to follow and show others how to follow. When you find a lone nut doing something great, have the guts to be the first one to stand up and join in.  [37:09] Melina’s closing thoughts [40:52] Be thoughtful with the numbers you put out into the world, and consider the herding implications for what you want people to do in the long run. [41:59] Consider how social norms and herding instincts may keep you from having conversations with other people.  Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: Influence, by Robert Cialdini What Your Customer Wants and Can't Tell You, by Melina Palmer How Customers Think, by Gerald Zaltman The Power of Us, by Jay Van Bavel and Dominic Packer You Have More Influence Than You Think, by Vanessa Bohns Top Recommended Next Episode: Social Proof (ep 87) Already Heard That One? Try These:  Framing (ep 16) Priming (episode 18) Get Your D.O.S.E. of Brain Chemicals (ep 123) Dr. Robert Cialdini and the (Now!) 7 Principles of Persuasion (ep 157) Unity (ep 216) The Power of Us with Dr. Dominic Packer (ep 178) You Have More Influence Than You Think, Vanessa Bohns (ep 197) Unlocking The Secrets Of The Brain (ep 1) Unlocking the Power of Numbers (ep 17) Availability Bias (ep 15) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  Poll: Despite Record Turnout, 80 Million Americans Didn't Vote. Here's Why 6 in 10 Americans don't have $500 in savings Presidential Election Voting  Human Herding: How People are Like Guppies The Unwisdom of Crowds Herding, social influence and economic decision-making: socio-psychological and neuroscientific analyses Herd behavior in consumers’ adoption of online reviews Which restaurant should I choose? Herd behavior in the restaurant industry Watch These Awkward Elevator Rides From an Old Episode of Candid Camera Herding Behavior in Social Media Networks in China Herd Instinct Warren Buffett explains one thing people still don’t understand about bitcoin Herding behavior in cryptocurrency markets Science Of Persuasion Oxytocin The Brain and the Herd Mentality How to Start a Movement Derek Sivers

In today's conversation, I am joined by Gina Bianchini, author of the book Purpose: Design a Community and Change Your Life. She’s also the CEO and Founder of Mighty, where creators, entrepreneurs, and brands build digital communities and courses with cultural software. Myself included -- the BE Thoughtful Revolution moved to Mighty Networks in 2021. In 2019, Gina launched the Community Design™ Masterclass, where over 8,000 people have learned how to build a community so valuable you can charge for it, and so well-designed it essentially runs itself. Before Mighty, she was the CEO and co-founder of Ning, a pioneering global platform for creating social networks she started with Marc Andreessen in 2004. She has been featured in Fast Company, Wired, Vanity Fair, Fortune, Wall Street Journal, Bloomberg, and The New York Times. She has appeared on CNBC, CNN, and Charlie Rose. She is a wealth of knowledge and I know you will enjoy this conversation as much as I did.  Show Notes: [00:43] In today's conversation, I am joined by Gina Bianchini, author of the book Purpose: Design a Community and Change Your Life. [03:00] Gina shares about herself, her background, and how she found herself in this space. [04:05] Mighty is a software platform for people to create new digital cultures around mastering something interesting and important together.  [06:15] Gina uses her time, talent, and focus to help people learn to live an extraordinary life.  [07:50] Social networks are where we are making connections and building real relationships between people. The network gets more valuable to us with each person that joins and contributes.   [08:55] Social media is about building an audience or a following. The goal is to build the biggest audience possible.  [10:56] This shift from social networks to a world where we are passive consumers of content as opposed to all the things that allow us to build new and interesting digital cultures.  [13:46] Across the board we are not happy and less happy the more time we spend in this system. The average American spends 3 ½ hours a day on social media platforms and report fewer friends and less happiness than 20 years ago.  [15:48] We are happiest where we can play, connect, and have flow.  [18:31] A network effect is a system where, when someone joins, that new person creates more value for everybody else in the network. [19:47] The new member is able to get a lot more value from your community because of the contributions other members are making (and they add value for everyone else).  [21:40] It is so much better for us to play the role of host which is less work and more valuable for everyone involved and also feeds and scales the system.  [24:26] We are constantly shifting through our different identities and having the support and finding others like you is so fulfilling.  [27:17] We get better rewards and better returns with less risks. The same is true for how we spend our time.  [30:07] The highest order is how are you helping other people reach their fullest potential. We need to play the role of helping other people become the hero. [31:40] The role of host is the most important and will continue to be the most valuable role any of us can play in our professional, personal, or social lives through this decade and decades to come.   [33:24] A tiny change in the question can change your direction drastically.  [35:41] People pay attention to what they pay for.  [37:57] We need to build our future story. Gina’s Purpose 30 model is 30 minutes, 30 days, with 6 questions (she shares all 6 in the conversation). You have a blank canvas to create the future you want. [40:12] It is very different to spend your time thinking about what is possible and what is positive than the negative thoughts.  [41:04] True meaning and true impact come from how you have helped others realize their fullest potential as well.  [43:00] It is about clearing your mind so that you can wander and explore.  [45:00] Melina’s closing thoughts Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: Purpose, by Gina Bianchini A More Beautiful Question, by Warren Berger The Power of Us, by Jay Van Bavel & Dominic Packer You’re Invited, by Jon Levy The Fun Habit, by Mike Rucker Connect with Gina:  Gina’s Website Gina on LinkedIn Gina on Twitter Top Recommended Next Episode: Network Effect (ep 262) Already Heard That One? Try These:  The Brainy Benefits of Gratitude (ep 236) Celebrate! It’s More Important Than You Think (ep 80) Framing (ep 16) Questions or Answers (ep 4) A More Beautiful Question with Warren Berger (ep 200) The Power of Us with Dr. Dominic Packer (ep 178) Herding (ep 19)  Using Behavioral Science to Build Connections, an interview with Jon Levy, author of You’re Invited (ep 150) Confirmation Bias (ep 260) The Fun Habit with Mike Rucker (ep 251) The Power of Story, an Interview with Dr. Michelle Auerbach (ep 145) Get Your D.O.S.E. of Brain Chemicals (ep 123) Friction - What It Is And How To Reduce It, with Roger Dooley (ep 72) Solving Modern Problems with a Stone Age Brain (ep 237) The Truth About Pricing (episode 5) Habits (ep 256) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter 

Today’s episode is all about the network effect. This is something I don’t talk about all that often as it isn’t purely behavioral economics related, but I did the original episode because a listener requested it and it was really timely as at that time early on in the pandemic. This episode first aired in June of 2020 at a time where people were really looking to shift into a virtual presence. And not surprisingly, there is always a bit of a “field of dreams” mentality with these things, so I wanted to be sure to share a bit about the nuance of networks and how they create value, with tips for people to keep in mind to increase their chances of success. So, you may be wondering, if this doesn’t come up often...why the heck are you talking about it again now? Well, I am delighted that on this coming Friday’s episode, I had a chance to sit down with Gina Bianchini, Founder and CEO of Mighty, which includes Mighty Networks (the platform the BE Thoughtful Revolution has been on since May of 2021). She has a new book out called Purpose, which is all about creating communities and their importance for us as humans. Because of her Silicon Valley background and history of building great communities, we talked about the network effect in the conversation, making it a great opportunity to refresh this episode as you get ready to tune into that conversation on Tuesday. As you listen today, I encourage you to think about communities. What have they meant to you personally in the past? Where do you connect with others? What do you love about your real communities — those in person you have had over your lifetime? Who do you feel closest to, and what is it you bond over? Is any of that present in your business now? What about your social media experiences? Just keep that in mind as you listen to this episode on the network effect today, as it will put you in a really great place for the conversation with Gina in episode 263 which is coming out in just a couple of days. (And if you aren’t already subscribed to the podcast, now is a great time to do so!) Show Notes: [00:38] Today’s episode is all about the network effect. [01:30] I am delighted that on this coming Friday’s episode, I had a chance to sit down with Gina Bianchini, Founder and CEO of Mighty, which includes Mighty Networks, the platform the BE Thoughtful Revolution has been on since 2021. [03:18] Quick shoutout to Clayton Key for recommending the topic of this episode! [04:46] The network effect is when the value of the business increases as the network grows.  [06:27] The network effect makes it so new people joining the network increase the value for everyone.  [08:49] The three most common types of network effects are: direct, two-sided, and local. A direct network effect is when an increase in usage and users leads to a direct increase in the product or service’s value for other users.  [09:55] With the two-sided network effect, when someone from one user group joins the network the value increases for one or more of the other user groups.  [11:14] The key difference between a two-sided and a direct network effect is that the type of user joining matters.  [14:01] To leverage the full potential of the network, any social platform needs to maintain and monitor the quality of its users to ensure there are not bots and spam accounts.   [15:30] The last type of network effect is the local network effect.  [18:10] When you're talking about global effects in a network, it means it is impacting everyone across the entire platform.  [19:38] Network externalities influence a network effort and they can work hand and hand; they are not the same thing. A business that is not built on the network effort still should be considering those network externalities to increase sales. A network effect is not the same as going viral.  [20:57] There are serious hurdles to keep in mind in this kind of model. [22:36] So when setting up this model remember you need to be able to stick it out for a while upfront while it may be costing you money knowing it will pay off once you hit critical mass.  [23:44] This platform model is looking for quality growth not just growth.  [25:04]  Network effects are not quite a house of cards, but being dependent on users working harmoniously together does make a somewhat precarious beast that needs constant monitoring and attention.  [27:32] The five C’s of network effect are connection, communication, collaboration, curation, and community.  [29:11] People like and value things more than they invested in building themselves (IKEA Effect!) so if your users help build the platform, provide feedback, and see it being implemented they will overlook small flaws that would otherwise irritate them because they helped to build it.  [30:43] You need to start with a small enough group to get the value for people early. Focus on operational excellence, great branding, and high value so most people who join the network stay for the long haul.  [31:41] Those network externalities of social proof and herding will be very valuable to attract new members to the network. Frame the messaging in a way to showcase the value.  [32:54] You can also have a powerful default option to make it easy for someone to choose to join the network. You want it to be as easy as possible, framed with the value, and set up so you can be part of their habits.  [35:37] Brand extensions are a delicate balance of finding something that is related enough to make some sense for tying it to the original brand but not so close it feels like it should have been the main offering, to begin with.  [37:03] Melina’s closing thoughts Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: Purpose, by Gina Bianchini What Your Customer Wants and Can't Tell You, by Melina Palmer Friction, by Roger Dooley Sludge, by Cass Sunstein The Experience Maker, by Dan Gingiss Top Recommended Next Episode: Availability Bias (ep 15) Already Heard That One? Try These:  Anthropology, Market Research & Behavioral Economics with Priscilla McKinney (ep 196) Creating Content People Can’t Help But Engage With featuring Katelyn Bourgoin (ep 201) Peloton: A Behavioral Economics Analysis (ep 86) Defaults: The "D" in NUDGES (ep 38) Herding (ep 19)  Social Proof (ep 87) Loss Aversion (9) Anchoring & Adjustment (ep 11) Relativity (ep 12) What is Value? (episode 234) Scarcity (ep 14) Peak-End Rule (episode 97) Friction - What It Is And How To Reduce It, with Roger Dooley (ep 72) Subscriptions and Membership Programs (ep 105) Defaults (ep 20) Habits (ep 21) The IKEA Effect (ep 112) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  Network Effects: How Growing Your User Base Can Increase the Value of Your Product or Service The Network Effects Manual: 13 Different Network Effects (and counting) Network Effect VIRALITY VS. NETWORK EFFECTS Reverse Network Effects: Why Today’s Social Networks Can Fail As They Grow Larger Network Effects Aren’t Enough Why Network Effects Matter Less Than They Used To How To Harness The Power Of Network Effects Network Effects Network Effect 16 Ways to Measure Network Effects Consumer Evaluations of Brand Extensions 6 Worst Brand Extensions from Famous Companies

In today's conversation, I am joined by Dr. Wendy Smith, coauthor of Both/And Thinking: Embracing Creative Tensions to Solve Your Toughest Problems. I don't think we realize it all that much, but our lives are full of paradoxes. Questions like: How can we each express our individuality and be a team player? How do we balance work and life? How can we take care of ourselves while supporting others? How can we manage the core business while innovating for the future? Believe it or not, these are some of the everyday paradoxes that make up our lives. And because our brains tend to default to either/or choices, we choose one option over the other. We deal with uncertainty by asserting certainty. BUT this is not the best way, as you will learn about in today's conversation with Wendy Smith, a co-author of one of my new favorite books: Both/And Thinking. Wendy is the Dana J. Johnson Professor of Management and earned her Ph.D. in organizational behavior at Harvard Business School, where she began her intensive research on strategic paradoxes—how leaders and senior teams effectively respond to contradictory, yet interdependent demands. She is a wealth of amazing information and I can't wait for you to learn from her today. Show Notes: [00:42] In today's conversation, I am joined by Dr. Wendy Smith, coauthor of Both/And Thinking: Embracing Creative Tensions to Solve Your Toughest Problems. [01:46] Wendy is the Dana J. Johnson Professor of Management and faculty director of the Women’s Leadership Initiative at the Lerner College of Business and Economics, at the University of Delaware. [03:57] Wendy shares about herself, her background, and the work she does. She is a professor of organizational behavior and business leadership management.  [06:27] We all experience these tug of wars in our lives.  [09:37] Our decisions really have multiple layers to them. They show up for us as a dilemma - these competing ideas in which you feel like you have to make a decision.  [11:37] Underlying our dilemmas are these paradoxical tensions.  [14:23] It is not that we are constantly trying to choose between always trying to be super disciplined or always trying to be spontaneous. If we go extreme on one side it becomes problematic in so many ways.  [15:36] The goal is to recognize that there is a relationship between discipline and spontaneity and that discipline enables us to be spontaneous as long as we don’t go so extreme. Spontaneity enables us to have more structure in our world.  [17:08] These tensions drive us into either/or thinking. That kind of thinking is limited at best and detrimental at worst.  [19:39] Often when change happens you feel like you have to change significantly and essentially you are throwing out the baby with the bath water by innovating everything. [21:44] Polarization is when you go down a path and you are sure that if you are right about the way you are thinking, someone else must be wrong. [24:35] Businesses should continue to be operationally successful as they move up their S curve. Continue to service your existing customers and be efficient with your existing products and at the same time be scanning, exploring, experimenting, and innovating to figure out what the new S curve looks like.  [27:09] The problem isn’t the problem. The way we are framing and thinking about the problem is the problem.  [28:10] You have to change to stay the same.  [30:56] Wendy shares a story about a group that built an inn to honor and value what was key to the culture of Newfoundland.  [34:04] To keep what you have, you have to change and we should embrace that.  [35:35] Her number one tip for writing a book is just to sit and do it.  [38:04] Wendy and her co-author worked together to structure the ideas of the book.  [40:38] There is something deeply paradoxical about behavioral economics (and Wendy loves that!)  [43:02] Just changing the question will invite you into a whole different way of thinking.  [44:02] Melina’s closing thoughts [45:55] Embracing paradoxes can have a huge impact. There is so much opportunity there.  Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: Both/And Thinking, by Wendy Smith & Marianne Lewis The Paradox of Choice, by Barry Schwartz Paradoxes of Group Life, by Kenwyn Smith & David Berg A More Just Future, by Dolly Chugh A More Beautiful Question, by Warren Berger Connect with Wendy:  Wendy’s Website Wendy on Twitter Wendy on LinkedIn Top Recommended Next Episode: Framing (ep 16) Already Heard That One? Try These:  A More Just Future, with Dr. Dolly Chugh (ep 247) Paradox of Choice (ep 171) Dunning-Kruger Effect (ep 198) Past, Present, and Future Biase (ep 246) Time Discounting (ep 51) What Your Employees Need and Can’t Tell You (ep 225) Change Management (ep 226) Confirmation Bias (ep 260) Focusing Illusion (ep 89) Functional Fixedness (ep 194) A More Beautiful Question with Warren Berger (ep 200) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter