Today, I don;t write on investments, I prefer to play a quiz with you instead.
Today let's be honest to yourself and answer my questions. You will see how irrational you are.
The question is : Suppose I offer you a choice between a free 10 Amazon gift certificate and a 20 gift certificate for 7 dollars. Think quickly, and answer yourself, Which would you take?
THINK THINK THINK .....
If you jump for the 10 dollars certificate for FREE!, you would have been like most of the people some scholars tested at one of the malls in Boston.
The irrational point is that the 20 dollars gift certificate for 7 dollars assures a 13 dollars profit while the FREE option delivers 10 dollars. It's clear that go for the 20 dollars certificate is better than the 10 dollar FREE option which only delivers 10 dollars profit.
Can you see the irrational behaviours we have chosen? Or, are you a rational or irrational people? I am irrational haha!
The attractiveness showed that the FREE! option is clearly in its own class of choice. It triggers own irrational mind in this experiment.
I will share again on this topic in the coming few days, that's interesting!
Interesting reading. Enjoy behavioural economics. Make the subject simple, more people will enjoy it.
Do you prefer the 10 dollars profit or the 13 dollars offer?
Showing posts with label reading. Show all posts
Showing posts with label reading. Show all posts
Thursday, May 19, 2016
Thursday, April 28, 2016
Change management discussions
Nowadays, organizations are doing much to cope with the uncertainties and volatility. That means they face changes frequently and during their daily routine.
Companies are trying to improve their forecasting and increase their agility. But these tactics have limitations. Forecasts quickly become obsolete, and perfect flexibility is costly to achieve -- if not impossible.
What can the companies do to improve their reactions?
It is suggested that organisations should complement their efforts with "strategic" options that serve as a hedge against uncertainties (i.e. change). These include temporary organisations, exploratory acquisitions, and disposable or modular factories.
In the midst of the course of implementation, there will be many challenges. For example, persuading employees that the long term benefit of the options outweigh their high short term cost. Moreover, Building skills -- for instance, in acquiring and integrating acquisitions. Lastly, the changing of forecasting culture and focusing more on understanding risks.It requires a cultural change, from time to time, to effect the changes done. And we need to refreeze after any change anyway.
Reading the argument here is well set up and makes perfect sense. The question is how to realise the theoretical benefits in the change process. It said much about "What should we do". However, the main question manager wants to tackle now is "How can we do that, do those..."
Any pragmatic suggestions or ideas?
Companies are trying to improve their forecasting and increase their agility. But these tactics have limitations. Forecasts quickly become obsolete, and perfect flexibility is costly to achieve -- if not impossible.
What can the companies do to improve their reactions?
It is suggested that organisations should complement their efforts with "strategic" options that serve as a hedge against uncertainties (i.e. change). These include temporary organisations, exploratory acquisitions, and disposable or modular factories.
In the midst of the course of implementation, there will be many challenges. For example, persuading employees that the long term benefit of the options outweigh their high short term cost. Moreover, Building skills -- for instance, in acquiring and integrating acquisitions. Lastly, the changing of forecasting culture and focusing more on understanding risks.It requires a cultural change, from time to time, to effect the changes done. And we need to refreeze after any change anyway.
Reading the argument here is well set up and makes perfect sense. The question is how to realise the theoretical benefits in the change process. It said much about "What should we do". However, the main question manager wants to tackle now is "How can we do that, do those..."
Any pragmatic suggestions or ideas?
Monday, April 25, 2016
How a leader should do in modern management?
A real problem in management is that the employees and other stakeholders will look to leaders to make consistent decisions, keep a steady course, and aligned organisation's culture. But the problem is that leaders typically face multiple demands that conflict with one another, and it's a mistake to assume there are cut-and-dried choices.
As per nowadays, strategic paradoxes are essentially dilemmas that cannot be resolved. Tensions usuallyand continually arise between today's needs and tomorrow's (innovation paradoxes), between global and local integration and interests (globalisation paradoxes), and between social missions and financial pressures (obligation paradoxes).
How can we solve the difficult circumstances?
Managers need to shift from an "either/or" mindset to a "both/and" one by seeing the virtues of inconsistency, recognising that resources are not always finite, and embracing change rather than chasing stability. In practical terms, this means nurturing the unique aspects of competing constituencies and strategies while finding ways to unite them.
The theoretical suggestions seems reasonable, but I wonder which CEO in the world can perform as suggested?
Sadly, today's management is change oriented. change management is at the core of the whole thing.
Um... take care of yourself if you are at management level in an organisation.
Sleep tight, bye for now.
As per nowadays, strategic paradoxes are essentially dilemmas that cannot be resolved. Tensions usuallyand continually arise between today's needs and tomorrow's (innovation paradoxes), between global and local integration and interests (globalisation paradoxes), and between social missions and financial pressures (obligation paradoxes).
How can we solve the difficult circumstances?
Managers need to shift from an "either/or" mindset to a "both/and" one by seeing the virtues of inconsistency, recognising that resources are not always finite, and embracing change rather than chasing stability. In practical terms, this means nurturing the unique aspects of competing constituencies and strategies while finding ways to unite them.
The theoretical suggestions seems reasonable, but I wonder which CEO in the world can perform as suggested?
Sadly, today's management is change oriented. change management is at the core of the whole thing.
Um... take care of yourself if you are at management level in an organisation.
Sleep tight, bye for now.
Sunday, April 17, 2016
Kurt Lewin's three step model of change -- elaborated
It is quite plain and natural to cite Lewin's work when we are discussing change management.
In the original version, Lewin broke the change process down into three phrases, i.e. the unfreeze, move and refreeze. Today's blog illustrates this model with more details. Don't miss.
The three steps model can be broken down and be described as a seven steps model like this:
(1) Diagnose the problem -- unfreeze
(2) assess the motivation and capacity for change -- unfreeze
(3) Assess the motivation, resources and commitment of change agent -- unfreeze
(4)choose progressive change object and develop to-do lists and strategy -- move
(5) select and clarify the role and responsibilities of the change agent -- move
(6) uphold change through communication, coordination and feedback -- refreeze
(7) progressively let go of the helping relationship where the change agents withdraw their responsibilities and the change is integrated into the culture of the organization -- refreeze
You may see that this seven steps model is only a detailed version of Lewin's three steps model of change, no surprise. But it can act as a checklist of actions in the change process.
I will keep the above materials for future reference, are you a potential change agent in your organization? Equip yourself now la~
Good luck and healthy!
In the original version, Lewin broke the change process down into three phrases, i.e. the unfreeze, move and refreeze. Today's blog illustrates this model with more details. Don't miss.
The three steps model can be broken down and be described as a seven steps model like this:
(1) Diagnose the problem -- unfreeze
(2) assess the motivation and capacity for change -- unfreeze
(3) Assess the motivation, resources and commitment of change agent -- unfreeze
(4)choose progressive change object and develop to-do lists and strategy -- move
(5) select and clarify the role and responsibilities of the change agent -- move
(6) uphold change through communication, coordination and feedback -- refreeze
(7) progressively let go of the helping relationship where the change agents withdraw their responsibilities and the change is integrated into the culture of the organization -- refreeze
You may see that this seven steps model is only a detailed version of Lewin's three steps model of change, no surprise. But it can act as a checklist of actions in the change process.
I will keep the above materials for future reference, are you a potential change agent in your organization? Equip yourself now la~
Good luck and healthy!
Tuesday, March 15, 2016
HBR -- Harvard Business Review.
Today, I read an old issue of HBR Harvard Business Review and discovered an interesting article.
The article discusses the collaborative work in organisations and suggests some new ideas. The article is like this:
The general situation is for the last two decades, the amount of time managers and employees spend on collaborative work has ballooned. at many companies people now spend about 80% of their time in meeting or answering colleagues' requests. So free time of individuals is diminishing
Although the benefits of a=collaboration are well documented, the costs often go unrecognised. When demands for collaboration run too high or aren't spread evenly throughout the organisation, workflow bottlenecks and employee burnout would result.
The article suggests that leader must learn to better manage collaboration in their companies by mapping demand and supply, eliminating or redistributing work, and incentivising people to collaborate more efficiently.
The question raised in this article is not new. However, insofar, we focus and see the benefits of collaboration. Is becomes a must.
Remember to investigate the potential benefits and also the costs is important. Don't be blind.
Don't forget, happy learning together.
Don't know why, I feel the quality and depth of the articles posted in HBR is not as good as in the past... *-*
Bye for now.
The article discusses the collaborative work in organisations and suggests some new ideas. The article is like this:
The general situation is for the last two decades, the amount of time managers and employees spend on collaborative work has ballooned. at many companies people now spend about 80% of their time in meeting or answering colleagues' requests. So free time of individuals is diminishing
Although the benefits of a=collaboration are well documented, the costs often go unrecognised. When demands for collaboration run too high or aren't spread evenly throughout the organisation, workflow bottlenecks and employee burnout would result.
The article suggests that leader must learn to better manage collaboration in their companies by mapping demand and supply, eliminating or redistributing work, and incentivising people to collaborate more efficiently.
The question raised in this article is not new. However, insofar, we focus and see the benefits of collaboration. Is becomes a must.
Remember to investigate the potential benefits and also the costs is important. Don't be blind.
Don't forget, happy learning together.
Don't know why, I feel the quality and depth of the articles posted in HBR is not as good as in the past... *-*
Bye for now.
Wednesday, July 23, 2014
Good books
Just finished the book "Think Like a Freak". That was a slow process -- nearly one and a half month to read a book! The book was interesting and included many enlightening ideas.
From goal keeping, hot dog eating, to testing bacteria in the gut and curing antibiotics, to encouraging kids to read, to ... many other examples in the book, the authors tried to persuade the readers that their advocate to think of the root cause, think of things extra-ordinarily, quitting is not guilty, etc. You will be convinced! And I will recommend this book to any one who likes to read. There was a final chapter on "How to persuade people who don't want to be persuaded". That was excellent and a MUST READ.
I am heading to two other books now. The "What Money Can't Buy" and "Capitalism in the 21st Century". I bought them two months ago and have had no time to read (otherwise it won't take me one and a half months to finish the Freak book).
In fact, I watched all the lectures regarding justice and market by Michael Sandal. But I want to read the contents again. There may be something new evolving. The Capitalism book has been highly rated by scholars since it was translated to English year ago. It contains a lot statistics and figures of global economic issues. A bible. I must finish them as quickly as possible and share with you my feelings. Do share with me your reading list as well.
Okay, one down, two to go! Happy reading.
From goal keeping, hot dog eating, to testing bacteria in the gut and curing antibiotics, to encouraging kids to read, to ... many other examples in the book, the authors tried to persuade the readers that their advocate to think of the root cause, think of things extra-ordinarily, quitting is not guilty, etc. You will be convinced! And I will recommend this book to any one who likes to read. There was a final chapter on "How to persuade people who don't want to be persuaded". That was excellent and a MUST READ.
I am heading to two other books now. The "What Money Can't Buy" and "Capitalism in the 21st Century". I bought them two months ago and have had no time to read (otherwise it won't take me one and a half months to finish the Freak book).
In fact, I watched all the lectures regarding justice and market by Michael Sandal. But I want to read the contents again. There may be something new evolving. The Capitalism book has been highly rated by scholars since it was translated to English year ago. It contains a lot statistics and figures of global economic issues. A bible. I must finish them as quickly as possible and share with you my feelings. Do share with me your reading list as well.
Okay, one down, two to go! Happy reading.
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