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To Eliminate Undesirable Behavior, You Have to Eliminate The Stimuli That Precedes It
Summary:
Self-control problems require structuring life to avoid stimuli that tempt bad behavior, similar to avoiding walking past a tavern if you're an alcoholic.
Investors can improve mental hygiene by unfollowing negative sources and following those with a long-term perspective to reduce hyper reactivity to market fluctuations. Changing exposure helps in turning down the amplitude of emotions.
Transcript:
Speaker 1
But if you 're an alcoholic, you would be crazy to walk past the tavern and say, i will demonstrate the will power not to walk in. You can't do that, and you know you can't, so you walk on the other street. And that's the kind of governor that people need to put on their behavior. If you know that you have self control problems, you have to structure your life so that the things that tempt you into bad behavior don't get surfaced in your stimuli. And that's very easy for investors to do. If you, if you know you have a tendency toward hyper reactivity to, you know, red arrows pointing downward on stock market displays, then turn that web site off, un follow that person On twitter. Follow people who take a longer term perspective and aren't rattled by this kind of thing. Improve your mental hygiene. You can't turn yourself into someone who's unemotional, but you can turn down the amplitude of your own emotions if you change what your exposures are.
#4 Jason Zweig — Elevate Your Financial IQ
The Knowledge Project with Shane Parrish
The Tension Between Organized Behavior at Scale and Individual Needs
Summary:
Large-scale organizations aim for legibility and coherence, but this may lead to a lack of diversity and individual needs.
The educational system's emphasis on GPA overlooks other important skills and qualities.
Transcript:
Speaker 2
One of the most influential ideas for me recently has been from James South's book Seeing Like a State. And Scott has this idea that like what large-hill organizations wants its legibility and legibility is a kind of clear coherence that's aggregatable to a kind of higher level view. So a simple version might be like look if you're a CEO you can't have every department have its own obscure little value system. You need a single collective value system or something close to it so you can get production and profit measures and aggregate them in what Scott says is bring the whole organization Into view. So one way to put my worry is that what would be good for human life is an incredible diversity of bottlenecks which work on different often non-metrified systems. If Scott is right large-scale institutions will tend towards is a kind of monolithic measurement system that moves towards let's have a small number of bottlenecks and let's have A unified measure. And so like the heart of my worry is that organized behavior at scale is inevitably in tension with what a diverse population of individuals needs. And that's just an unfixable problem. Let me just give one quick example. In the educational system the dominant measure is GPA. You can add other like I can write in my notes all kinds of other shit about what students are good at. That barely matters because that's not aggregatable. When a law school admissions officer is doing their spreadsheet to do the first main cutoff nothing in my weird little notes is going to make it into that first level cutoff. The big moving forces just look at GPA.
Paul Smaldino & C. Thi Nguyen on Problems With Value Metrics & Governance at Scale
COMPLEXITY: Physics of Life
One of the most effective tools for building a culture of trust is simply saying, “I trust you to do the right thing.” Backing those words with action shows people that you’re serious. Larry once had about 40 people reporting to him in a research unit of a major consulting firm. As a manager, he was expected to read and approve all travel and expense forms. Since many of these consultants traveled extensively, this would have meant spending a half-day or more on paperwork each week. This struck him as a tremendous waste of time and energy that did not add any value to his unit. At a group meeting, he told the team that he trusted them to stay at a Marriott rather than a Four Seasons hotel, and that he wasn’t going to dive into their expense reports. He realized that the cost of not trusting the group would be far greater than an infrequent upgrade from coach to business class. This not only gave Larry time to do more worthwhile work, but it added to the group’s social capital.11 They knew they were trusted and proved to be trustworthy over the years.
The Smart Mission
Edward J. Hoffman, Matthew Kohut, and Laurence Prusak
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