Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Thursday, July 7, 2011

Afraid To Admit You're Wrong? It May Not Totally Be Your Fault

Cognitive Dissonance Is The Enabler For Self-Delusion

By David Miranda

Social psychologist, Leon Festinger, coined the term "cognitive dissonance" about half a century ago. It refers to "the state of tension that occurs whenever a person holds two cognitions (ideas, attitudes, beliefs, opinions) that are psychologically inconsistent."

We have all been guilty of self-delusion at one time or another in our lives. Some more than others. Examples - While eating junk food on the couch watching TV, "I know I should eat healthier and exercise, but I'm too busy and, furthermore, I'm having a Diet Coke with these Cheetos."

Cognitive dissonance is pervasive, as well, in the business world. Businesses are, sometimes, self-delusional in justifying their performance, as in, "we outsource job overseas to help the economy" or "importing more and more goods from overseas helps keep the price of goods to American consumers affordable".

Elliot Aronson, a social psychologist and professor emeritus of psychology at UC Santa Cruz is co-author of a new book, Mistakes Were Made (But Not by Me). He says our brains work hard to make us think we are doing the right thing, even in the face of sometimes overwhelming evidence to the contrary.

Here's an excerpt from the book:

Half a century ago, a young social psychologist named Leon Festinger and two associates infiltrated a group of people who believed the world would end on December 21.

They wanted to know what would happen to the group when (they hoped!) the prophecy failed. The group's leader, whom the researchers called Marian Keech, promised that the faithful would be picked up by a flying saucer and elevated to safety at midnight on December 20.

Many of her followers quit their jobs, gave away their homes, and dispersed their savings, waiting for the end. Who needs money in outer space? Others waited in fear or resignation in their homes. (Mrs. Keech's own husband, a nonbeliever, went to bed early and slept soundly through the night as his wife and her followers prayed in the living room.)

Festinger made his own prediction: The believers who had not made a strong commitment to the prophecy—who awaited the end of the world by themselves at home, hoping they weren't going to die at midnight—would quietly lose their faith in Mrs. Keech. But those who had given away their possessions and were waiting with the others for the spaceship would increase their belief in her mystical abilities. In fact, they would now do everything they could to get others to join them.

At midnight, with no sign of a spaceship in the yard, the group felt a little nervous. By 2 a.m., they were getting seriously worried. At 4:45 a.m., Mrs. Keech had a new vision: The world had been spared, she said, because of the impressive faith of her little band. "And mighty is the word of God," she told her followers, "and by his word have ye been saved—for from the mouth of death have ye been delivered and at no time has there been such a force loosed upon the Earth. Not since the beginning of time upon this Earth has there been such a force of Good and light as now floods this room."

The group's mood shifted from despair to exhilaration. Many of the group's members, who had not felt the need to proselytize before December 21, began calling the press to report the miracle, and soon they were out on the streets, buttonholing passersby, trying to convert them.

What's the lesson here?

We're human, not sheep. Cognitive dissonance may explain the phenomenon, but doesn't justify self-delusion. It's called free will and conscience.

With proper attribution to Abraham Lincoln, "You can delude some of the people some of the time, but you can't delude all of the people all of the time.

Friday, May 8, 2009

Recognition Marketing - Blessed Are The Curious

For They Create A Better World

By David Miranda

All the great things in the world have come from the curious among us.

The enemies of curiosity? Arrogance, the status quo, complacency, incompetency, and envy to name a few.

Curiosity is the basis for all innovation. Someone, somewhere thinking "why isn't there a better way to do this or that?" All the great inventors and innovators had or have it - Da Vinci, Edison, Gates, Jobs, Page & Brin (Google founders), and Salk to name a few.

Curiosity, like other intangibles like passion and perseverence, cannot be taught, but it can be nurtured and it must be nurtured in every successful organization and valued by leadership. It creates wealth.

In our youth, the cradle of curiosity, we explored new things; relentlessly asked questions of our elders on why this and why that. We discovered in the answers new and exciting horizons. Curiosity led to learning and learning led to enlightenment.

Curiosity today, however, in many cases has been atrophied by the requirement to conform; to follow the company line; not to rock the boat. Asking too many questions has unfortunately become a trait of "not being a team player".

Curiosity, however, is not a team endeavor. It is a personal trait.

It needs to be recognized as critical to the success of an enterprise.

Be curious about your life, your surroundings, your business, your industry.

It will, curiously, pay big dividends.

Tuesday, July 15, 2008

Recognition Marketing - Beware Of The Pied Piper Syndrome In Research

Research Should Be Viewed Through A Common Sense Filter

By David Miranda

It seems like every hour, a research firm is releasing a new report that this or that is happening (or will happen) in the marketplace whether it be in the public or private sector. Of course, the research typically has the caveat that it includes a "margin of error" of plus or minus X.

Although no one would argue the benefits of insightful research, it must be viewed through a common sense filter or the consumers of the research become the victims of well-intentioned pied piper. When this occurs, the implications could prove embarrassing or financially disastrous or both.

Take the recent political polls for the New Hampshire Presidential primary. Research pundits confidently stated that Barack Obama, after a win in the Iowa Caucuses, would handily beat Hillary Clinton by double digits. Senator Clinton won New Hampshire leaving the pundits with egg on their befuddle faces. Everyone, except the people that really counted, the New Hampshire voters, got it wrong.

It just doesn't happen in the political arena. It happens in private sector every day when decision makers utilize only research to determine business strategies and not allowing for the scrutiny that comes with common sense.

The private sector is a prolific consumer of research. It influences everything that business does. All this research begs the question - "Why do so many firms, so often, get things so wrong?" The simple answer is the "pied piper syndrome", i.e. following and acting on research as if it were the closest thing to a sure bet and, of course, we know there is no such thing.

The best way to use good research is to temper it with common sense that is based on practical observation and human interaction. Peter Lynch, famed financial guru at Fidelity, had an interesting way to pick stocks he invested in. He observed. One day, for example, his wife came home with a plastic egg. Curious, Mr. Lynch, asked his wife what it was and why she purchased it. She said she found it in supermarket on a free-standing display. What was it? L'Eggs. Inside the plastic egg were ladies' nylons. She told her husband that she was always snagging her nylons during a typical day and here was a simple and convenient solution. Intrigued, Mr. Lynch went down to the store and observed women, one after the other, going to the L'Eggs' display and purchasing. He went home and the next day invested in Hanes, the parent of L'Eggs. Does Mr. Lynch utilize research? Absolutely. What makes him different? Adding common sense and personal observation to the final analysis.

Lessons to marketers? Don't give up research, but temper it with good ole common sense. Get out there and take a look around. See for yourself whether the research findings have substance.

Don't follow the pied piper blindly. It could be dangerous.

Monday, July 23, 2007

Recognizing A Culture Of Denial

And It's Not A River In Egypt! It's A Problem.

By David Miranda

Denial is a major impediment to positive outcomes.

It is usually accompanied by its siblings, arrogance and ignorance. It is exascerbated by power and time, i.e. the more powerful the position, the longer the denial, the greater the consequences.

A ship's captain who is in denial that he is off course, despite evidence and advice to the contrary, will get further off course over time unless making necessary course corrections.

Denial has had and continues to have its impact in a number of areas:

  • War in Iraq

  • Performance-enhancing drugs in sports

  • U.S. automobile industry

  • Immigration reform

  • Health care reform

  • Reliance of fossil fuels

  • Global warming

  • Obesity

  • Katrina victims

  • Darfur genocide

From business and government leaders, to professional athletes, to celebrities, we see and hear a constant chorus of denial. Few admit they were wrong until either the evidence is overwhelming, the consequences are dire, they are exposed on YouTube, are fired, indicted, or convicted. By then, the damage has been done.

If you are in a position of authority, recognize this. There is nothing wrong admitting that you're wrong. It is a positive, not a negative trait. A sign of strength, not weakness.

If you are wrong, admit it quickly and honestly. It's the right thing to do.

There is no denying it.