Tag Archives: business thinking

Dunning-Kruger And You

One episode that has stayed with me for many years involved a young employee that I managed. Like most of the folks I hired, he had a lot of raw talent in the areas that you really can’t teach – excellent intellectual curiosity, a good work ethic, etc. As I saw it, my job and that of his immediate supervisor was to develop that raw talent over time.

When review time came up, he asked me when he’d get made a VP. He had been with us about 6 months and had been out of school for about 18 months. Now, most of the people who achieved VP rank were 10-15 years older than him and used those years to develop their work skills to a point that was light years past where he was. I asked him why he thought he should be made a VP and he went on about having paid his dues and that he knew as much as many of the VP’s he’d met.

He was a perfect example of something called the Dunning-Kruger effect, in which people fail to recognize their own incompetence. I see it on the golf course all the time as my playing partners will often try to hit shots that they might be able to pull off 1% of the time or they overestimate how far they actually hit the ball and come up woefully short of their target. The kid was a business example, one with which I’m sure you’re familiar.

Have you ever walked out of a meeting in which someone thought they were being brilliant while it was obvious that they really had no clue about the subject matter? The sad fact, borne out by research, is that the most incompetent individuals are the ones that are most convinced of their competence while the most competent people often underestimate their competence. I’m a believer in knowing what you don’t know and in not assuming that just because you’re smart and very knowledgeable about one subject that you can translate that into expertise in another area without doing the work to understand that area.

It’s not just stupid people who don’t know they’re stupid. Entire organizations can behave this way, believing that they can get beyond their core competency and into another business sector with equal success. Management sees that the business has a good year and deludes itself into thinking the organization is performing at peak efficiency when competitors are actually doing better and are gaining share.

We need to be on the lookout for Dunning-Kruger everywhere. For businesses, use an independent standard of measurement, hopefully, something that’s reflective of your entire industry. As individuals, a little humility and getting outside your own bubble helps to keep your perspective. That kid didn’t make VP and in fact, ended up leaving the organization to a higher level job from which he got fired. He Dunning-Krugered himself to unemployment. I’m sure he was convinced it was due to something other than his own incompetence. You’d never make that mistake, would you?

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Filed under Helpful Hints, Huh?, Reality checks

How Dumb Do You Think We Are?

We’ve all been lied to. It always feels bad when we discover the lie and we often get angry at the liar. A co-worker of mine had an expression that comes to mind all the time: “Forgive and remember.” It’s fine to “forget” in that holding a grudge is self-defeating. It’s better to remember (without anger if possible) so that you’re a lot warier the next time you hear something from that person.

It’s in that context that I shook my head when I read about Facebook pivoting to privacy. Now if there is one company that has violated user privacy more than Facebook I’m unaware of it. Frankly, I thought it was something that The Onion had written, but no, it was a blog post from Mark Zuckerberg.

“I believe the future of communication will increasingly shift to private, encrypted services where people can be confident what they say to each other stays secure and their messages and content won’t stick around forever”

Seriously? This is the same guy who is literally at this minute lobbying against privacy laws everywhere. This is the same company that encouraged you to give them your telephone number to use for two-factor authentication (yay privacy) and then used the phone number to target ads. Oh, and there’s no way to delete or disable that.  Then there was that time that they used an app to steal everything you did on your phone. Suckers…

Fool you once? Um, no. Back in 2010, there was a piece in the NY Times that outlined just how hard it was to make your data private on Facebook. To truly opt out of sharing all your personal information, you had to click through more than 50 privacy buttons, and then choose between more than 170 total options. There were some options that you couldn’t even opt out of at all. How dumb does he think we are?

No business can afford to lie constantly to its customers, especially one that is almost completely reliant on those customers for every bit of content. If and when users wake up, as many under 21 users of the platform have, we won’t need regulatory intervention to “fix” Facebook or any other company that lies constantly. It will just die, buried in its own untruthfulness. We’re not that dumb after all, are we?

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Filed under Huh?, Reality checks

Overdoing It

It’s Foodie Friday and I’ve come to the conclusion that we’ve all lost our collective minds, at least with respect to some of the food trends I see out there. Everywhere one looks you see food that seems to echo one of the favorite phrases from my youth:

Anything worth doing is worth overdoing!

Let me give you a few examples. The dozens of flavors of Oreos, ranging from candy corn to Swedish fish to watermelon, and hot chicken wing and wasabi Oreos have hit stores in China. Buffalo Fried Cornish Hens. Kimchi Salsa. Jerk Chicken Pizza. All the different flavors of chips (because who doesn’t want a chip that tastes like a lobster roll?), and of course, Strawberry Lemonade Beer. Now I’ll admit that I actually liked a cucumber beer that I had last summer but at some point, don’t we need to draw a line? It’s bad enough that most people drink “coffee” that’s flavored with everything from hazelnuts to birthday cake. It may be a lovely morning pick me up but it’s not coffee.

This kind of thinking is how we got some of the great food fails. Bacon soda. Coca-Cola Blak. Orbitz Drink. It’s instructional no matter what business you’re in. Let’s say you make a pain-relieving cream and you say to yourself “Hey! We can fix the pain in other ways!” Voila! Ben-Gay Aspirin. Maybe you own the women’s magazine market and think “hmm…women eat yogurt, maybe while they’re reading. Let’s make yogurt!” Cosmopolitan Yogurt was off the shelves in 18 months. Coors Spring Water? No thanks. Each is an example of overdoing something that not only is worth doing but is something you’re doing quite well. Right up until you decided to do more.

There are some things you can’t overdo. Great customer service. Being grateful to customers, vendors, partners, and staff. Taking most good products and blurring that goodness with too many things that too few people want isn’t helping. Don’t overdo it!

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Filed under food, Helpful Hints