Celebrating Seollal, the Lunar New Year, in old Korean fashion

Celebrating Seollal in old Korean fashion

Saturday, January 25, 2014 – 13:41

Julie Jackson

The Korea Herald/Asia News Network

SEOUL – Seollal, the Lunar New Year, is one of the most celebrated holidays in Korea: It is not only a time to pay respects to one’s elders and ancestors, but is also an opportunity to spend time with family and friends to celebrate the New Year immersed in tradition. With the colorful hanbok (traditional Korean costume) and the traditional food and folk games, Seollal gives people the chance to experience some real Korean culture.

Whether it be traveling to the countryside to reunite with extended family or staying in the city to relish the time off work or school, Seollal can be a great opportunity to immerse oneself in traditional Korean culture; and for those looking to get off the couch and usher in the Year of the Horse by doing something different from the usual weekend dinner and a movie, there is an endless number of events in Seoul and surrounding areas that offer visitors opportunities to celebrate the holiday.

Visitors dressed in a hanbok will receive free admission to the five major historical palaces (Gyeongbokgung, Changdeokgung, Changgyeonggung, Deoksugung and Gyeonghuigung), the royal shrine (Jongmyo) and royal tombs, as well as qualify for discounts at a number of museums throughout Korea.

As it does every year, Gyeongbokgung Palace – Seoul’s largest palace and the main palace of the Joseon Dynasty for more than 500 years – will organise a number of Seollal events during the holiday weekend for locals and foreigners, ranging from cultural performances to folk games. The most common folk games at the palace grounds include jegichagi (Korean hacky sack), tuho (arrow ring toss) and neoltwiggi (seesaw).

The National Folk Museum of Korea is currently holding an exhibition in tribute to the Year of the Horse. The “Horse, a Vigorous Gallop” exhibition features some 60 works of art including literature and various artifacts that depict horses in Korean culture and history. The exhibition will run until Feb. 17.

Aside from the regular programs of winter kite flying and learning to perform Korean traditional dance and music, the Namsangol Hanok Village located in central Seoul will be celebrating the New Year with fun for friends and family alike. During Seollal, international visitors can enjoy a lesson on the proper procedures of “charye” – a Korean New Year’s ceremony honoring the past four generations of ancestors of one’s family – as well as experiencing a presentation of charyesang (table setting for the ancestral worship ceremony). Visitors will also have opportunities to try out fortune writing and rice cake preparation, and to learn to sing Korean folk songs.

Seoul Namsan Traditional Theater, located in the hanok village, will also be offering special New Year hands-on activities, with hanbok costumes available for guests to try on.

The village will also provide traditional Korean kites. Flying a kite on Seollal is symbolic of wishing away bad fortunes and wishing for a prosperous new year. The special Seollal events will run from Jan. 30 to Feb. 2.

For those looking to venture a short distance outside Seoul city limits, the Korean Folk Village in Yongin, Gyeonggi Province, is a perfect place to wander around outdoors: The dirt paths cut through some 300 traditional houses in the large, sprawling village. While walking around, guests can view folk paintings, learn to fly traditional colorful kites and participate in talisman or fortune writing and hang the papers up for good luck.

The events take place every day until Feb. 2 with admission costing 15,000 won for adults and 10,000 won for children. All visitors wearing hanbok will get a 50 per cent discount off admission.

La Salada: Inside South America’s largest informal market

La Salada: Inside South America’s largest informal market

Jan 25th 2014 | Buenos Aires | From the print edition

IT IS five o’clock in the morning, but shoppers in La Salada market in Buenos Aires are already going home. They drag rubbish sacks full of T-shirts, trainers and pirated DVDs across the car park to board waiting coaches. Some have come to stock their shops, others to fill their wardrobes. They started shopping when the market opened at 3am, and have travelled from as far as Neuquén, a Patagonian city 15 hours away.

La Salada is thought to be South America’s largest informal market. Around 30,000 wire-mesh stalls spill out of three warehouses in an unsavoury neighbourhood on the outskirts of the capital. Its administrators reckon that on Tuesdays, Thursdays and Sundays, when the market is open, more than 250,000 shoppers browse its stalls. Tens of thousands of people help keep La Salada running—selling, protecting, cleaning and supplying the market. At the Punta Mogote warehouse, where most stalls are underground, so many people faint that an ambulance is kept on site.

Hard numbers are impossible to come by but administrators estimate that vendors sell 150m-300m pesos ($22m-$44m) of goods every day La Salada is open. According to Jorge Castillo, who manages Punta Mogote, vendors pay up to $100,000 in cash for a stall measuring four square metres—more than they would for space in a former Hermès store on Avenida Alvear, the main shopping street in Buenos Aires.

La Salada has its murky side. In one bizarre case a man who bought a poodle puppy at La Salada claimed he was duped into bringing home a fluffy angora ferret on steroids. Nacho Girón, a journalist who has written a book on the market, insists that this story is itself one of La Salada’s fakes. Piracy is undeniably rife. Stalls in Punta Mogote sell copies of Tommy Hilfiger shirts for 110 pesos. At street level, vendors hawk Nike knock-offs and flimsy “Ray-Ban” sunglasses.

Mr Castillo is engagingly open about the dubious merchandise sold by some of his vendors. La Salada’s merchants, he acknowledges, may not follow the rules when it comes to intellectual property “but this is Argentina. Nothing is ever just black or white.”

Taxes are certainly a grey area. All shopping is done in cash, leaving ample room for fudging the accounts. Tax officials have trouble enforcing their writ: in one 2009 tax raid vendors from Punta Mogote lobbed thousands of eggs at agents until they fled. The police are reckoned to be more complicit, demanding bribes in exchange for ignoring contraband goods.

Given La Salada’s popularity among Argentina’s poor, the government has long understood that attacking it would be politically risky. According to Mr Girón’s book, Néstor Kirchner, a former president, privately described the market as “a social phenomenon of Argentina in crisis”. “Shoppers love us because we allow them to buy what they need and also have a little left over to treat themselves,” says Mr Castillo. “Vendors love us because we don’t take their hard-earned cash.”

That ethos stretches back to the market’s foundation in 1991 by a bunch of struggling Bolivian clothing producers. Sick of being exploited by factory bosses who paid them poorly and late, the manufacturers gathered enough money to buy the site of abandoned thermal baths. The market was an immediate hit. Mr Castillo, who had been a women’s shoemaker, began buying stands in La Salada’s second warehouse in 1994, before leading the way in opening Punta Mogote in 1999.

Ferreting out the bargains

Competition is at the heart of La Salada’s model. When the market was founded the Argentine peso had just been pegged to the dollar, making imported textiles far cheaper than Argentine-made fabrics. To succeed, vendors had to cut prices right back. Competing with imports is no longer a problem, thanks to currency controls and heavy taxes: the government’s latest wheeze is to require shoppers to pick up goods bought from foreign websites at customs offices so taxes can be collected. But with so many stalls next door to one another, competition at the market remains cut-throat. “The good and the bad of Argentina are embodied by La Salada,” Mr Girón reflects. “It is at once a display of Argentine creativity, intelligence, resilience and grit, and an exhibit of Argentine cunning and corruption.”

 

Why I Read: The Serious Pleasure of Books

The joy of reading

Literary voyeurism

An American critic dissects a lifelong satisfaction

Jan 18th 2014 | From the print edition

Why I Read: The Serious Pleasure of Books. By Wendy Lesser. Farrar, Straus and Giroux; 240 pages; $25 and £17.99. Buy from Amazon.comAmazon.co.uk

JAMES WOOD, a British critic, fell in love with Gustave Flaubert’s Emma Bovary when he imagined her fondling the satin slippers she wore at a great ball, “the soles of which were yellowed with wax from the dance floor”. Henry Miller, though born to Lutheran parents in New York, had a liking for Plutarch, Petronius, Marcel Proust and that dotty Russian theosophist, Madame Blavatsky, the original New Ager. How do people know this? Because both authors came clean about their literary passions.

Writers are made by their reading, which is why it is such fun to peer at their bookshelves and inspect the dog-eared pages, the turned-down corners. More than 50 years after Miller published “The Books in My Life”, Wendy Lesser has brought out an equally personal reading memoir. Founder and editor of the Threepenny Review, an American literary magazine, Ms Lesser is known for her non-fiction writing: her examination of Shostakovich’s quartets and a study of the subterranean in literature entitled “The Life Below the Ground”.

Her new book, “Why I Read”, is a model for the modern age, with a list of 100 books to read for pleasure and a notice at the back advertising an online guide for reading groups. But her instincts are those of her literary forebears. She recommends Henry James and Patricia Highsmith for plot, Charles Dickens for character and Javier Marías, a Spanish writer, for being so good at mining the “uncertain borderline between the dead and the living”. For novelty she prescribes Geoffrey Chaucer, Jonathan Swift and Miguel de Cervantes, and in modern times, David Foster Wallace. To Russia, for love, would be Ms Lesser’s advice. Only Fyodor Dostoyevsky can offer a double lesson on the love of God and the love of a good woman.

“Reading literature”, she says, “is a way of reaching back to something bigger and older and different.” How very consoling.

 

Why I Read: The Serious Pleasure of Books Hardcover

by Wendy Lesser  (Author)

“Wendy Lesser’s extraordinary alertness, intelligence, and curiosity have made her one of America’s most significant cultural critics,” writes Stephen Greenblatt. In Why I Read, Lesser draws on a lifetime of pleasure reading and decades of editing one of the most distinguished literary magazines in the country, The Threepenny Review, to describe her love of literature. As Lesser writes in her prologue, “Reading can result in boredom or transcendence, rage or enthusiasm, depression or hilarity, empathy or contempt, depending on who you are and what the book is and how your life is shaping up at the moment you encounter it.”

Here the reader will discover a definition of literature that is as broad as it is broad-minded. In addition to novels and stories, Lesser explores plays, poems, and essays along with mysteries, science fiction, and memoirs. As she examines these works from such perspectives as “Character and Plot,” “Novelty,” “Grandeur and Intimacy,” and “Authority,” Why I Read sparks an overwhelming desire to put aside quotidian tasks in favor of reading. Lesser’s passion for this pursuit resonates on every page, whether she is discussing the book as a physical object or a particular work’s influence. “Reading literature is a way of reaching back to something bigger and older and different,” she writes. “It can give you the feeling that you belong to the past as well as the present, and it can help you realize that your present will someday be someone else’s past. This may be disheartening, but it can also be strangely consoling at times.”

A book in the spirit of E. M. Forster’s Aspects of the Novel and Elizabeth Hardwick’s A View of My OwnWhy I Read is iconoclastic, conversational, and full of insight. It will delight those who are already avid readers as well as neophytes in search of sheer literary fun.

 

Editorial Reviews

From Bookforum

Lesser’s taste is eclectic, her range large. She offers insights into George Orwell and Henning Mankell, Emily Dickinson and Roberto Bolaño, J.R. Ackerley and Shakespeare, Henry James and Isaac Asimov—to name but a few. There is no claim to a comprehensive approach, nor even a sense that what is discussed is of greater importance that what is not. […] The effect is rather as if Lesser were writing to a friend about the most fabolous literary party of all time, where she’d been in conversation not with authors but with their works. […] Her book is […] thoughtful and intelligent, conversational without being “improving,” and it ultimately encourages us to formulate our own responses, to continue and enlarge the literary conversation. —Claire Messud

Review

“The rare and marvelous pleasure of meeting a fellow reader, the sort of person who, in childhood, automatically turned the cereal box so her eyes could rest on words at all times, is here given new form. Wendy Lesser is candid, democratic, brisk, passionate, stubborn, fiercely exact; as in all memorable conversations, I found myself sometimes wishing to debate, and often bursting into private festivals of concurrence. This is a book of rich provocations and rich delights. More than most contemporary critics, Lesser trusts her instinct: what a joy it is to listen, through these pages, to her bold assessments and charismatic opinions.” —Louise Glück, author of Poems 1962–2012

“Reading Why I Read delivers all the pleasure of discussing one’s favorite books with a marvelously articulate, intelligent, opinionated friend. It’s like joining the book club of your dreams, one in which you don’t have to do any of the work or think up intelligent things to say, but can simply enjoy reading about books you’ve read or want to read.” —Francine Prose, author of Reading Like a Writer

“Wendy Lesser has read just about everything, and proves a wonderfully companionable guide to books high and low. Rather than attempting anything ponderously encyclopedic, she follows her hunches, asking good, probing questions, voicing cultivated, intelligent opinions and surprising judgments, and doing it all with humor, dash, and skeptical humility. The result is a treat for all who love reading.” —Phillip Lopate, author of To Show and to Tell: The Craft of Literary Nonfiction

“Wendy Lesser’s extraordinary alertness, intelligence, and curiosity have made her one of America’s most significant cultural critics.” —Stephen Greenblatt

“An intellectual of unflinching dignity and gravitas, founder of The Threepenny Review and author of nine previous books—including literary memoir, cultural criticism, and an incandescent study of Shostakovich—Lesser talks within books as few now are able to do . . . We turn to a book like Lesser’s not only to help us unravel the DNA of literature (what Hazlitt named the gusto in the soul of literature) but to commune with a mind abler than our own, to augment our own appreciation and understanding. Everywhere in Why I Read lie ribbons of literary wisdom . . . Lesser’s voice is so congenial, measured, authoritative and sane, it seems downright impervious to quarrel. From Hopkins to Cervantes to Dickinson, from Herzen to Klemperer to Louise Gluck, she is equally discerning and deft . . . In Why I Read she has written a necessary addition to the canonical titles of appreciation. Wendy Lesser is a serious reader—a quality reader—and this book is a serious pleasure.” —William Giraldi, The New York Times Book Review

“Exuberantly digressive . . . The effect is rather as if Lesser were writing to a friend about the most fabulous literary party of all time, where she’d been in conversation not with authors but with their works . . . [Why I Read] is thoughtful and intelligent, conversational without being ‘improving,’ and it ultimately encourages us to formulate our own responses, to continue and enlarge the literary conversation.” —Claire Messud, Bookforum

“More than 50 years after [Henry] Miller published The Books in My Life, Wendy Lesser has brought out an equally personal reading memoir . . . Why I Read is a model for the modern age, with a list of 100 books to read for pleasure and a notice at the back advertising an online guide for reading groups. But her instincts are those of her literary forebears.” —The Economist

“I began Wendy Lesser’s Why I Read: The Serious Pleasure of Books with my usual yellow highlighter in hand, notepaper and pen at the ready, opening the reviewer’s copy as I would for any normal assignment. By the time I’d finished, the notepaper was still mostly blank, but the thing in my hand resembled a brightly painted fan—every page saturated in color, with so many corners folded down the book had trouble staying closed . . . Lesser, a longtime Berkeley resident, founded and edits the elegant literary journal the Threepenny Review. Author of nine prior books and contributor to various prominent literary venues, hers has been a no-holds-barred, art-loving life, and her dedication to that quest irradiates Why I Read.” —The San Francisco Chronicle

“Reading Wendy Lesser is like attending a book club where the leader is an Olympic champion reader. Think the Dana Torres of page-turning . . . [In] Why I Read: The Serious Pleasure of Books, Lesser tackles a deceptively simple question: Why does one read? The question might be impossible to answer, but it’s a pleasure to explore . . . Just like your favorite book club, the discussion is brainy, it’s personal, and it’s occasionally off topic.” —Christian Science Monitor

“A witty, wise, and buoyant book full of the sense of adventure and the capacity for surprise that Lesser values in literature itself . . . We finish reading Lesser enlarged by the delights and rewards of her prose, enriched by her insights, and with an expansive sense of possibility.” —The Boston Globe

“Plenty of surprises . . . wonderfully unpretentious.” —Columbus Dispatch

“In this elegantly meandering narrative, critic and editor Lesser (Music for Silenced Voices: Shostakovich and His Fifteen String Quartets), founder of the Threepenny Review, takes us through her expansive reading life. This is not so much a memoir of reading as it is about the craft of literature—the merits of both grandeur and intimacy, the double-edged sword of novelty, the ways character and plot are inextricably linked . . . Lesser’s idiosyncratic reading list and her wealth of insights will speak to booklovers of all types.” —Publishers Weekly (starred review)

 

Mapping China: A cartographer’s dream; Two books tell the fascinating tale of a rediscovered map of China

Mapping China: A cartographer’s dream; Two books tell the fascinating tale of a rediscovered map of China

Jan 18th 2014 | From the print edition

Mr Selden’s Map of China: Decoding the Secrets of a Vanished Cartographer. By Timothy Brook.Bloomsbury USA; 240 pages; $25. Profile Books; £18.99. Buy from Amazon.com,Amazon.co.uk

London: The Selden Map and the Making of a Global City, 1549-1689. By Robert Batchelor. University of Chicago Press; 344 pages; $45. Buy fromAmazon.com

MAPS can be tools for trade, but they can also be weapons of war; for centuries cartographers have embraced both aims. Nowhere has captivated the minds of Western mapmakers as much as fabled Cathay. Finding a sea route to China inspired many of the great explorers. European maps of the past 400 years tell the story of empire and the efforts to prise China open for trade. In the 19th century the navigators finally succeeded.

Chinese leaders are now flexing their own cartographic muscles. In November last year they issued a map showing a new Chinese “air defence identification zone” that includes the airspace around some disputed islands, owned by Japan which calls them the Senkakus and claimed by China which named them the Diaoyus.

The map of the Chinese defence zone may have raised some wry smiles in Oxford University’s Bodleian Library. For the Bodleian houses a special map of China, bequeathed in 1654 by an English lawyer, John Selden (pictured). The map was probably drawn by a Chinese cartographer in Java around 1610, when China was still the world’s biggest economy and Europeans longed to trade there. It came into Selden’s possession through an English sea captain. During the first half of the 17th century, it was the most accurate chart of Asia in the world; clearly marked upon it are some of the disputed islands.

Selden’s map is a work of art. It is also different from any that had come out of China before. Unlike imperial maps before it, and after, China itself is not in the middle. The map views Asia from the sea and not from the land, so the South China Sea is at the centre. It is a traders’ map and the merchant routes through Asia are marked with lines criss-crossing the seas. The disputed islands were not so much objects of desire as of danger. They were surrounded by reefs that could take any ship to the bottom and were to be avoided.

The map presents a different story from the one that is frequently told of 17th-century China—of a culture in isolation, cut off from the rest of the world. Even more surprising, then, that the map could have been put in a drawer in the Bodleian more than a century ago and not seen again until an American academic, Robert Batchelor, discovered it in 2008. One of those who saw it next was another historian, Timothy Brook. Now both men have written books about it.

Mr Brook is best known for his tale of early globalisation, “Vermeer’s Hat”. He calls the Selden map “the most important Chinese map of the last seven centuries”. His book, though, as he admits, is not really about the map itself, but about “the people whose stories intersected with it”. King James II is there, witnessing a food fight at the Bodleian in 1687. Ben Jonson appears. So, too, does Shen Fuzong, a Catholic convert and the first Chinese man to visit Oxford. The story is full of Chinese pirates and English adventurers.

Most fascinating of all, though, is Selden himself. The son of a Sussex farmer, he rose to become London’s foremost lawyer and his legal contributions still resonate. In 1619 he wrote a treatise called Mare Clausum (“The Closed Sea”), in which he argued that countries had jurisdiction over the sea close to their shore. The work was in response to a similar treatise, Mare Liberum (“The Open Sea”), written in 1609 by a Dutchman called Huig de Groot, which had argued the opposite, that the seas were open to anyone. The international law of the sea used today, including the concept of 12 miles of territorial waters (an extension of Selden’s original three miles) is based on the two men’s works.

Nowhere does the Selden map state that the disputed islands belong to China or Japan, and Mr Brook, wisely, does not try to use the map to solve the question of sovereignty. Instead, he weaves a wonderful tale of the interaction of peoples of a different age in lands where sovereignty was barely a concept. From Quanzhou and Java and Nagasaki back to Oxford and London, he describes people trying to understand each other before they had the intellectual and linguistic tools to do so.

Mr Batchelor’s book is more academic in research and in tone, but no less fascinating. In it he shows how the skein of shipping routes on the Selden map were connected with the rise of London as a global city. If there were a northern European city that might have aspired to be global in the 1540s, it would more probably have been Antwerp. And yet the hub of the English wool and cloth trade on the edge of Europe would, by the 1700s, become the centre of the world. Mr Batchelor argues that, even more than the much-documented Atlantic trade, it was interaction with Asia along the lines traced upon the Selden map that brought London into modernity. Now, after centuries of European dominance, the map has emerged from its hibernation into a world whose order is being reversed once again.

 

Learn ‘n’ go: How quickly can people learn new skills? The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies

Learn ‘n’ go: How quickly can people learn new skills?

Jan 25th 2014 | From the print edition

The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. By Erik Brynjolfsson and Andrew McAfee. W.W. Norton; 320 pages; $26.95. Buy fromAmazon.com

IN 2012 Erik Brynjolfsson and Andrew McAfee took a ride in one of Google’s driverless cars. The car’s performance, they report, was flawless, boring and, above all, “weird”. Only a few years earlier, “We were sure that computers would not be able to drive cars.” Only humans, they thought, could make sense of the countless, shifting patterns of driving a car—with oncoming traffic, changing lights and wayward jaywalkers.

Machines have mastered driving. And not just driving. In ways that are only now becoming apparent, the authors argue, machines can forecast home prices, design beer bottles, teach at universities, grade exams and do countless other things better and more cheaply than humans.

Mr Brynjolfsson and Mr McAfee, an economist and scientist respectively at the Massachusetts Institute of Technology’s Centre for Digital Business, first described this in 2011 in their self-published e-book “Race Against the Machine”. “The Second Machine Age”, which grew out of that earlier work, is an ambitious, engaging and at times terrifying vision of where modern technology is taking the human race.

Innovation has always driven advances in mankind’s standard of living, from agriculture to electricity. Information technology, the authors argue, is quantitatively and qualitatively different. It is, thanks to Moore’s law, exponential: its effects, barely perceptible for the first few decades, are turning explosive. It is also digital. Formerly complex tasks can be mastered then reproduced and distributed at almost no cost. Finally, it is recombinant, merging separate, existing innovations and innovators through networks and crowdsourcing.

This will have one principal good consequence, and one bad. The good is bounty. Households will spend less on groceries, utilities and clothing; the deaf will be able to hear, the blind to see. The bad is spread. The gap is growing between the lucky few whose abilities and skills are enhanced by technology, and the far more numerous middle-skilled people competing for the remaining jobs that machines cannot do, such as folding towels and waiting at tables.

Economists believe innovation is always good for society because workers displaced in one industry will find jobs supplying new goods and services. The authors acknowledge this but ask, “What if this process takes a decade? What if, by then, the technology has changed again?” Some people, they gloomily predict, will have nothing that employers will want even at a salary of a few dollars per hour, citing the example of horses, put forward by Wassily Leontief, an economist; they were never able “to adjust to the invention of the tractor.”

This has a familiar ring. A few years ago there were credible estimates that a quarter of American jobs could be sent offshore. Those apocalyptic totals seem unlikely ever to be reached. Mr Brynjolfsson and Mr McAfee may be similarly right about the potential for machines to displace middle-class workers, but wrong about the magnitude.

In case they turn out to be right, they offer prescriptions. People should develop skills that complement, rather than compete with computers, such as idea generation and complex communication. Policymakers should improve basic education, pour money into infrastructure and basic research, admit more skilled immigrants, and shift the burden of taxes from wages to consumption. This is sensible, but unsatisfying: it may expand the circle of winners and reshuffle its membership, though it seems unlikely that it will fundamentally alter the growing gap between them and the losers. The authors may not have the solution to growing inequality, but their book marks one of the most effective explanations yet for the origins of the gap.

 

An uncomfortable account of how Hispanic immigrants shaped America

An uncomfortable account of how Hispanic immigrants shaped America

Jan 25th 2014 | From the print edition

Our America: A Hispanic History of the United States. By Felipe Fernández-Armesto. W.W. Norton; 416 pages; $27.95. Buy from Amazon.com

THERE was something a bit grudging about America’s conquest of Puerto Rico in 1898, after a short war with Spain. The “so-called white” inhabitants, the first American military governor sniffed, looked as if they had “Indian blood”. A commander of the defeated Spanish forces was just as contemptuous. Locals went from being “fervently Spanish” to “enthusiastically American” in 24 hours.

Both sides missed the import of the moment, argues a new Hispanic history of the United States, the very title of which, “Our America”, sounds like a challenge to a fight. The rising superpower had just seized a colony far older than any English settlement on the North American mainland. The island of Puerto Rico became Spanish in 1508, almost a century before English buccaneer-adventurers splashed ashore at Jamestown in Virginia. Not only that, but settlements like Jamestown—a fortified trading-post, built explicitly for profit—had been founded in conscious imitation of Spanish colonial practices in the Americas, says the author, Felipe Fernández-Armesto, a British academic based at Notre Dame University in Indiana.

The book takes aim at the founding myths of America that run exclusively from east to west. Those myths begin with ocean-crossings by pious, liberty-loving Englishmen. They dwell on the miracle of the Revolutionary War, in which bewigged patriots defeated vastly larger British forces. The myths end with wagon-trains rumbling across the Prairies and railways cutting through the Rockies, opening a continent to such Anglo-American virtues as rugged individualism and the plain- spoken certainties of the common law.

The book sets out to show how such tales ignore a parallel history of America that runs from south to north, embraces different values and has—for unbroken centuries—spoken Spanish. With startling facts and jaw-dropping tales of courage and depravity, the author triumphantly rescues Hispanic America from obscurity.

Spanish conquistadors brought horses to the Great Plains as early as 1540, showing native Americans in present-day Kansas how horsemen with spears could kill 500 buffalo in a fortnight. By 1630 a Franciscan mission in New Mexico claimed to have baptised 86,000 Indians in one summer. To repel French, British and Russian rivals, Spain built forts from Florida to the north-western coasts of what is today British Columbia. Catholic missions ran vast cattle ranches and planted California’s first citrus groves and vines. It was not just the French who helped George Washington’s armies defeat the British crown. Spanish forces harried the redcoats from Florida to Michigan, the book records, while Spanish gold bankrolled the siege at Yorktown (the newly founded town of Los Angeles, a continent away, sent $15 for the war effort).

Spanish rule was often pretty sketchy. One 18th-century frontier governor was a friendly Apache chief, while Spain’s agent in the Upper Missouri was a mystic from Wales, hunting for the Welsh-speaking descendants of a prince who, myth had it, crossed the Atlantic to escape the English 600 years earlier. Colonial bosses, soldiers and missionaries were not kindly men: Indians, in particular, died in large numbers from disease, exploitation and armed conflict. But the book makes a case that a rough-hewn paternalist pragmatism mostly prevailed in Hispanic America. Slavery was shunned (and in 1821 outlawed by newly-independent Mexico). Spanish officials treated slavery as a crime, and worse as a mistake: far easier to buy off natives with axes, copper kettles, food and dependence-inducing rum.

The author paints a harsher picture of English-speaking America, from the first moments after the revolution. A sort of madness for land and expansion gripped the Yankees and English-speakers of the South, buttressed by “scientific” race theories that placed white Anglo-Americans over supposedly brutish Indians, Spaniards and those of mixed race. American settlers flooded California and Texas, grabbing land with the help of corrupt lawyers, broken treaty-promises, “popular tribunals” that were little more than judicial lynch-mobs, and, when all else failed, force. The war of Texan independence involved much daring, but was also explicitly motivated by the desire to escape Mexico’s laws against slavery: Anglo settlers were anxious to import black slaves to pick cotton. The spectacle appalled such observers as John Quincy Adams, with the former president sorrowing that Texas joined the union tainted by two crimes, slavery and “robbery of Mexico”.

More than a century of unblushing, institutionalised racism followed, involving everything from segregated schools to guestworker schemes that left Mexicans at the mercy of exploitative bosses. Hard economic times triggered race riots and mass deportations.

Still Hispanics kept coming, most recently breaking out of urban and suburban strongholds to establish communities in small towns and rural counties in almost every state. A quarter of all American children are now from Spanish-speaking backgrounds. That prompts the book to two conclusions. The first—that a “second Hispanic colonisation” is under way—is essentially a bit of wordplay. The second—that “the United States is and has to be a Latin American country”—leads the author into a muddle. He offers a digression about the Protestant work ethic, and why that is a fiction behind which lurks anti-Catholic prejudice. He asks why, if the government in Washington is supposedly more democratic than the military dictatorships that blighted South America for so long, American troops have at times been used to break strikes or escort black children into Arkansas schools.

These final digressions are a shame: a quest for equivalence that is really an attempt to refute anti-Hispanic condescension. But the effort is not needed. The history of Hispanic North America is already fascinating, as the book shows. Yet—to be clear—it was also a story of the peripheries, not least for the Spanish empire itself. America is a country founded on a unique set of ideas, and most of them do not come from imperial Spain.

Hispanics will play an ever-larger role in shaping America. Centuries of proximity and shared history are bound to strengthen this. But modern America does not belong to any one race or culture: that is its genius.

 

Acacia, ants and antibiotics: Protect and survive; Another twist in one of nature’s best-known partnerships

Acacia, ants and antibiotics: Protect and survive; Another twist in one of nature’s best-known partnerships

Jan 25th 2014 | From the print edition

THE symbiosis between bullhorn acacias and Pseudomyrmex ferruginea, the bullhorn acacia ant, is the stuff of biological legend. The acacias provide the ants with food, in the form of protein, fat and sugar secreted for their delectation by special organs called Beltian bodies, and also with homes, in the hollow thorns which give the plant its name. The ants reciprocate by stinging anything—from other insects to cattle—that dares try to eat the acacia’s leaves. The latest research, though, suggests that the ants do more than just drive away herbivores. They also act as a sort of immune system which protects acacias from infection.

This discovery, reported in New Phytologist by Marcia Gonzalez-Teuber of La Serena University, in Chile, dates back to an observation made a decade ago that macaranga trees, which have similar symbiotic relations with ants, seem immune to a particular fungus when ants are present, but not when they aren’t. Dr Gonzalez-Teuber wondered if something like this was true of acacias—and if it was, why.

To try to find out she chose ten wild acacia plants in the state of Oaxaca, in Mexico, and evicted the ants from one branch of each by plucking them off, removing the thorns, and stopping them returning by coating the base of the branch with a sticky substance that traps insects. As a control she sliced the thorns off a second branch, but left the ants free to roam over it.

After six weeks, she found that 45% of the leaves on the experimental branches showed signs of infection, compared with 14% of those (including the thornless controls) over which ants could roam freely. And when she tried culturing micro-organisms from leaves taken from the various branches she showed that those from branches without ants were more heavily infected with known plant pathogens.

The reason, she discovered, was on the ants’ legs. When she and her colleagues amputated some of these, washed them in methanol to see what they could extract, and applied the result to colonies of micro-organisms cultured from acacia leaves, they found that the extract eradicated many of those colonies. When they analysed the extract they discovered it contained several types of bacteria known to synthesise antibiotics. The ants, then, by acting as hosts to these bacteria, are protecting their own hosts from the attentions of other micro-organisms—and making the legend of their mutual relationship with acacias grow yet further in the telling.

 

An uncomfortable account of how Hispanic immigrants shaped America

An uncomfortable account of how Hispanic immigrants shaped America

Jan 25th 2014 | From the print edition

Our America: A Hispanic History of the United States. By Felipe Fernández-Armesto. W.W. Norton; 416 pages; $27.95. Buy from Amazon.com

THERE was something a bit grudging about America’s conquest of Puerto Rico in 1898, after a short war with Spain. The “so-called white” inhabitants, the first American military governor sniffed, looked as if they had “Indian blood”. A commander of the defeated Spanish forces was just as contemptuous. Locals went from being “fervently Spanish” to “enthusiastically American” in 24 hours.

Both sides missed the import of the moment, argues a new Hispanic history of the United States, the very title of which, “Our America”, sounds like a challenge to a fight. The rising superpower had just seized a colony far older than any English settlement on the North American mainland. The island of Puerto Rico became Spanish in 1508, almost a century before English buccaneer-adventurers splashed ashore at Jamestown in Virginia. Not only that, but settlements like Jamestown—a fortified trading-post, built explicitly for profit—had been founded in conscious imitation of Spanish colonial practices in the Americas, says the author, Felipe Fernández-Armesto, a British academic based at Notre Dame University in Indiana.

The book takes aim at the founding myths of America that run exclusively from east to west. Those myths begin with ocean-crossings by pious, liberty-loving Englishmen. They dwell on the miracle of the Revolutionary War, in which bewigged patriots defeated vastly larger British forces. The myths end with wagon-trains rumbling across the Prairies and railways cutting through the Rockies, opening a continent to such Anglo-American virtues as rugged individualism and the plain- spoken certainties of the common law.

The book sets out to show how such tales ignore a parallel history of America that runs from south to north, embraces different values and has—for unbroken centuries—spoken Spanish. With startling facts and jaw-dropping tales of courage and depravity, the author triumphantly rescues Hispanic America from obscurity.

Spanish conquistadors brought horses to the Great Plains as early as 1540, showing native Americans in present-day Kansas how horsemen with spears could kill 500 buffalo in a fortnight. By 1630 a Franciscan mission in New Mexico claimed to have baptised 86,000 Indians in one summer. To repel French, British and Russian rivals, Spain built forts from Florida to the north-western coasts of what is today British Columbia. Catholic missions ran vast cattle ranches and planted California’s first citrus groves and vines. It was not just the French who helped George Washington’s armies defeat the British crown. Spanish forces harried the redcoats from Florida to Michigan, the book records, while Spanish gold bankrolled the siege at Yorktown (the newly founded town of Los Angeles, a continent away, sent $15 for the war effort).

Spanish rule was often pretty sketchy. One 18th-century frontier governor was a friendly Apache chief, while Spain’s agent in the Upper Missouri was a mystic from Wales, hunting for the Welsh-speaking descendants of a prince who, myth had it, crossed the Atlantic to escape the English 600 years earlier. Colonial bosses, soldiers and missionaries were not kindly men: Indians, in particular, died in large numbers from disease, exploitation and armed conflict. But the book makes a case that a rough-hewn paternalist pragmatism mostly prevailed in Hispanic America. Slavery was shunned (and in 1821 outlawed by newly-independent Mexico). Spanish officials treated slavery as a crime, and worse as a mistake: far easier to buy off natives with axes, copper kettles, food and dependence-inducing rum.

The author paints a harsher picture of English-speaking America, from the first moments after the revolution. A sort of madness for land and expansion gripped the Yankees and English-speakers of the South, buttressed by “scientific” race theories that placed white Anglo-Americans over supposedly brutish Indians, Spaniards and those of mixed race. American settlers flooded California and Texas, grabbing land with the help of corrupt lawyers, broken treaty-promises, “popular tribunals” that were little more than judicial lynch-mobs, and, when all else failed, force. The war of Texan independence involved much daring, but was also explicitly motivated by the desire to escape Mexico’s laws against slavery: Anglo settlers were anxious to import black slaves to pick cotton. The spectacle appalled such observers as John Quincy Adams, with the former president sorrowing that Texas joined the union tainted by two crimes, slavery and “robbery of Mexico”.

More than a century of unblushing, institutionalised racism followed, involving everything from segregated schools to guestworker schemes that left Mexicans at the mercy of exploitative bosses. Hard economic times triggered race riots and mass deportations.

Still Hispanics kept coming, most recently breaking out of urban and suburban strongholds to establish communities in small towns and rural counties in almost every state. A quarter of all American children are now from Spanish-speaking backgrounds. That prompts the book to two conclusions. The first—that a “second Hispanic colonisation” is under way—is essentially a bit of wordplay. The second—that “the United States is and has to be a Latin American country”—leads the author into a muddle. He offers a digression about the Protestant work ethic, and why that is a fiction behind which lurks anti-Catholic prejudice. He asks why, if the government in Washington is supposedly more democratic than the military dictatorships that blighted South America for so long, American troops have at times been used to break strikes or escort black children into Arkansas schools.

These final digressions are a shame: a quest for equivalence that is really an attempt to refute anti-Hispanic condescension. But the effort is not needed. The history of Hispanic North America is already fascinating, as the book shows. Yet—to be clear—it was also a story of the peripheries, not least for the Spanish empire itself. America is a country founded on a unique set of ideas, and most of them do not come from imperial Spain.

Hispanics will play an ever-larger role in shaping America. Centuries of proximity and shared history are bound to strengthen this. But modern America does not belong to any one race or culture: that is its genius.

 

“Thou shall have balls & not business ideas”; And 9 more commandments for startups from Indian entrepreneur, angel investor Vishal Gondal that will lead the “path to the promised land”

“Thou shall have balls & not business ideas”

By e27 Editorial Staff

And 9 more commandments for startups from Indian entrepreneur, angel investor Vishal Gondal that will lead the “path to the promised land”

Called ‘India’s King of Gaming’, Vishal Gondal is the Founder and CEO of India Games. He is considered among the among the top 25 powerful people in the Indian digital business. Erstwhile, he was the Managing Director of DisneyUTV Digital.

He has received no formal education in computers and is a commerce dropout.

Gondal shared his 10 commandments for startups as part of an initiative byNASSCOM’s 10000 Startups, an effort to support technology entrepreneurship in India. The programme aims at creating 10000 tech startups in India in the next 10 years. Gondal announced his commandments at Unpluggd – a flagship event ofNextBigwhat – a startup blog from India.

We present to you his commandments…

Thou shall have balls & not business plans
Ideas are dime a dozen. To be an entrepreneur you don’t need business plans but the courage and conviction to break through the initial challenges and bring your ideas to life.

Thou shall develop relationships & not transactions
Entrepreneurs should go out, meet people and invest in building long-term relationships. Those who can’t help you today may prove to be valuable tomorrow. Don’t be transactional about it; make lifelong friends!

Thou shall focus on real pain-points
India is the land of opportunity because it has tonnes of problems for entrepreneurs to solve. Instead of aping solutions from the West, we should look at solving local problems – something not many entrepreneurs are doing today.

Thou shall be among the top 2
It’s imperative that you be No. 1 or No. 2 nationally or internationally in your defined sector to ensure you create a larger market for yourself. There is no point in becoming the nth player in an already competitive marketplace which has established leaders.

Thou shall focus on 20 per cent
As an entrepreneur, you must focus on the 20% that gives you 80% impact. Entrepreneurs tend to waste their time and effort in a number of non-productive activities just to be everywhere. This should be avoided at all costs.

Thou shall avoid MBAs & spreadsheet makers
The education system is designed to train students to fill up competencies required to work in large organisations. Startups are meant to disrupt and are run by talking to people and constantly taking feedback from the ground. The mindset required to excel at a startup is very different from one that is required in a large company where there is time to invest in building year by year projections.

Thou shall celebrate failures & enjoy your journey
As an entrepreneur, you will have many moments of failure. Organisations where failing is not okay tend to become bureaucratic. As a startup, you should build a culture which celebrates failure and people have the independence to experiment and execute new ideas without worrying too much about failure.

Thou shall not want to sell
Don’t build your company with the intention to sell. You can’t build a great startup by dreaming about selling it someday. As an entrepreneur, your startup becomes the core of your life and you have to nurture it like your own baby.

Thou shall be fit
As an entrepreneur, one tends to put their health on the backseat but there is no point in building a billion-dollar company and having boiled vegetables with a IV attached to you. If you aren’t fit both, in mind and body, you cannot operate a company.

Thou shall win with… Passion
As a startup you will have a small set of people who won’t always have the best skills or resources at their disposal. In this case, the only thing you can motivate them with, is PASSION. As an entrepreneur you need to make your team believe that this is their chance to do something remarkable with their career!

 

Value is created by doing; Make mistakes of ambition and not mistakes of sloth. Develop the strength to do bold things, not the strength to suffer

Value is created by doing

Sam Altman

Jan 17, 2014

Value is created by doing.

It’s easy to forget this.  A lot of stuff feels like work—commenting on HN, tweeting, reading about other companies’ funding rounds, grabbing coffee, etc [1]—is not actually work.  (If you count that as work, think really hard about the value you’re creating in your job.)  These activities can be worthwhile in small doses—it’s important to network and meet interesting people to stay in the flow of ideas—but they are not by themselves how new wealth gets created.

Value gets created when a company does things like build widgets and sell them to customers.  As a rough guideline, it’s good to stay in roles where you’re close to the doing.

Of course you have to do the right things.  Writing software no one wants does not create value—that’s called a class project.  So it’s critical to figure out the right thing to work on, and strategy is far more valuable than a lot of pivot-happy companies would have you believe.  But strategy alone has no value—value gets captured by execution.

It’s easier to sit around and talk about building a startup than it is to actually start a startup.  And it’s fun to talk about.  But over time, the difference between fun and fulfilling becomes clear.  Doing things is really hard—it’s why, for example, you can generally tell people what you’re working on without NDAs, and most patents never matter.  The value, and the difficulty, comes from execution.

There are good tricks for keeping yourself honest here.  When I was running a company, I used to make a list of everything I got done at the end of the day.  It was remarkable how I could feel like I had a really busy day and realize that night I got nothing done.  Similarly, I could have a day that felt only somewhat busy, but accomplish 3 or 4 major things.

Err on the side of doing too much of the sort of work that matters and blowing off all the rest, or as Machiavelli said:

Make mistakes of ambition and not mistakes of sloth.  Develop the strength to do bold things, not the strength to suffer.

You build what you measure—if you measure your productivity by the number of meetings you have in a day, you will have a lot of meetings.  If you measure yourself by revenue growth or number of investments closed or something like that, you will probably have fewer meetings.

Another example of not-quite-work is every night in San Francisco, there are dinner parties where people get together and talk about the future.  It’s always fun and usually not very contentious—most people agree we need to go to space, for example.  But at the end of it, everyone goes home and works on something else.

If you believe that going to space is the most important project for humanity, then work on it.  If you can’t figure out how to raise hundreds of millions of dollars, go work for SpaceX (joining a great company is a much better plan than starting a mediocre one).  If enterprise software is what you really love, then work on that. [2]

If you’re reading this and feeling unproductive, there’s a silver lining.  You can just close the browser window.  The good news is that it’s easy to course-correct, and it feels great. [1] I count blogging as a marginal use of time, but the reason I started is because I realized it was important to be good at writing, I was bad at it, and the only way I was going to improve was with lots of practice.  And sometimes I meet really interesting founders because of something I wrote.

[2] This isn’t meant as any sort of relative value judgment; if what you want to do is build an enterprise software company, then you should do that.  The problem comes when what you really want to do is build rockets.  A lot of people feel like they first should do something to make money and then do what they care about (or first work at a company for awhile before starting a company they really want to start).  While you of course should take care of your family before anything else, you should try to work on what you really care about.  You can usually find a way.  The danger is that life is short and you only get to work on a small number of companies over the course of a career—it’s worth trying to make them count.

 

The Cult of Overwork

THE CULT OF OVERWORK

by James SurowieckiJANUARY 27, 2014

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For decades, junior bankers and Wall Street firms had an unspoken pact: in exchange for reasonably high-paying jobs and a shot at obscene wealth, young analysts agreed to work fifteen hours a day, and forgo anything resembling a normal life. But things may be changing. Last October, Goldman Sachs told its junior investment-banking analysts not to work on Saturdays, and it has said that all analysts, on average, should be working no more than seventy to seventy-five hours a week. A couple of weeks ago, Bank of America Merrill Lynch said that analysts are expected to have four weekend days off a month. And, last week, Credit Suisse told its analysts that they should not be in the office on Saturdays.

These changes may sound small, but, in the context of the Street, they’re positively radical. Alexandra Michel, a former Goldman associate who is now on the faculty at the University of Pennsylvania, published a nine-year study of two big investment banks and found that people spent up to a hundred and twenty hours a week on the job. In the pre-cell-phone, pre-e-mail days, it was possible for people to find respite when they left the office. But, as David Solomon, the global co-head of investment banking at Goldman, told me, “Today, technology means that we’re all available 24/7. And, because everyone demands instant gratification and instant connectivity, there are no boundaries, no breaks.”

Cry me a river, you might say. But what happened on Wall Street is just an extreme version of what’s happened to so-called knowledge workers in general. Thirty years ago, the best-paid workers in the U.S. were much less likely to work long days than low-paid workers were. By 2006, the best paid were twice as likely to work long hours as the poorly paid, and the trend seems to be accelerating. A 2008 Harvard Business School survey of a thousand professionals found that ninety-four per cent worked fifty hours or more a week, and almost half worked in excess of sixty-five hours a week. Overwork has become a credential of prosperity.

The perplexing thing about the cult of overwork is that, as we’ve known for a while, long hours diminish both productivity and quality. Among industrial workers, overtime raises the rate of mistakes and safety mishaps; likewise, for knowledge workers fatigue and sleep-deprivation make it hard to perform at a high cognitive level. As Solomon put it, past a certain point overworked people become “less efficient and less effective.” And the effects are cumulative. The bankers Michel studied started to break down in their fourth year on the job. They suffered from depression, anxiety, and immune-system problems, and performance reviews showed that their creativity and judgment declined.

If the benefits of working fewer hours are this clear, why has it been so hard for businesses to embrace the idea? Simple economics certainly plays a role: in some cases, such as law firms that bill by the hour, the system can reward you for working longer, not smarter. And even if a person pulling all-nighters is less productive than a well-rested substitute would be, it’s still cheaper to pay one person to work a hundred hours a week than two people to work fifty hours apiece. (In the case of medicine, residents work long hours not just because it’s good training but also because they’re a cheap source of labor.) On top of this, the productivity of most knowledge workers is much harder to quantify than that of, say, an assembly-line worker. So, as Bob Pozen, a former president of Fidelity Management and the author of “Extreme Productivity,” a book on slashing work hours, told me, “Time becomes an easy metric to measure how productive someone is, even though it doesn’t have any necessary connection to what they achieve.”

Habit, too, is powerful: things are done a certain way because that’s how they’ve been done before, and because that’s the way the people in charge were trained. When new regulations limited medical residents’ working hours to eighty a week, many doctors complained of declining standards and mollycoddling, and said that it would have a disastrous effect on training, even though residents in Europe work many fewer hours, without harming the quality of medical care. “I went through it, so you should” is a difficult impulse to resist.

To make these new policies stick, then, banks have to change not just rules but expectations. Indeed, as Michel told me, “it isn’t really external rules that force bankers to work the way they do. It’s an entire cultural system.” She cites the example of a consulting firm that mandated that people stay out of the office on weekends, only to discover that they were working secretly from home. In a culture that venerates overwork, people internalize crazy hours as the norm. As the anthropologist Karen Ho writes in her book “Liquidated,” “On Wall Street, hard work is always overwork.” Grinding out hundred-hour weeks for years helps bankers think of themselves as tougher and more dedicated than everyone else. And working fifteen hours a day doesn’t just demonstrate your commitment to a company; it also reinforces that commitment. Over time, the simple fact that you work so much becomes proof that the job is worthwhile, and being in the office day and night becomes a kind of permanent initiation ritual. The challenge for Wall Street is: can it still get bankers to run with the pack if it stops treating them like dogs? ♦

Read more: http://www.newyorker.com/talk/financial/2014/01/27/140127ta_talk_surowiecki?printable=true&currentPage=all#ixzz2rQSrI44K

If You’re Not Helping People Develop, You’re Not Management Material

If You’re Not Helping People Develop, You’re Not Management Material

by Monique Valcour  |   10:00 AM January 23, 2014

Skilled managers have never been more critical to the success of firms than they are today.  Not because employees can’t function without direction, but because managers play a vital role in talent management. Gone are the comprehensive career management systems and expectations of long-term employment that once functioned as the glue in the employer-employee contract.  In their place, the manager-employee dyad is the new building block of learning and development in firms.

Good managers attract candidates, drive performance, engagement and retention, and play a key role in maximizing employees’ contribution to the firm. Poor managers, by contrast, are a drag on all of the above.  They cost your firm a ton of money in turnover costs and missed opportunities for employee contribution, and they do more damage than you realize.

Job seekers from entry-level to executive are more concerned with opportunities for learning and development than any other aspect of a prospective job.  This makes perfect sense, since continuous learning is a key strategy for crafting a sustainable career.  The vast majority (some sources say as much as 90%) of learning and development takes place not in formal training programs, but rather on the job—through new challenges and developmental assignments, developmental feedback, conversations and mentoring.  Thus, employees’ direct managers are often their most important developers.  Consequently, job candidates’ top criterion is to work with people they respect and can learn from. From the candidate’s viewpoint, his or her prospective boss is the single most important individual in the firm.

Managers also have a big impact on turnover and retention. The number one reason employees quit their jobs is because of a poor quality relationship with their direct manager.  No one wants to work for a boss who doesn’t take an interest in their development, doesn’t help them deepen their skills and learn new ones, and doesn’t validate their contributions. This isn’t what departing employees tell HR during their exit interviews, of course.  After all, who wants to burn a bridge to a previous employer? Instead, they say they’re leaving because of a better opportunity elsewhere.  And so what happens is that organizations remain in the dark regarding how much damage their inept managers are doing.

Regardless of what else you expect from your managers, facilitating employee learning and development should be a non-negotiable competency.  Google’s famous people analytics team examined data from thousands of employee surveys and performance reviews to find out which behaviors characterize its most effective managers.  Coaching topped a list that also included helping with career development.  Research by Gallup has yielded similar results.  Work groups in which employees report that their supervisor (or someone else at work) cares about them as a person, talks to them about their career progress, encourages their development, and provides opportunities to learn and grow have lower turnover, higher sales growth, better productivity, and better customer loyalty than work groups in which employees report that these developmental elements are scarce.

Remember the Peter Principle?  The phrase refers to a process in which employees receive promotions as a reward for being competent in their current jobs, and they continue to rise through an organization’s ranks until they reach a level at which they are incompetent.  The predictable consequence of this pattern is that over time, an organization becomes heavily staffed by managers who are bad at their jobs.  Your organization cannot afford to let this happen.

Becoming a great developer of employees requires managers to expand their focus from “How can I get excellent performance out of my team members?” to “How can I get excellent performance out of my team members while helping them grow?”  Savvy managers know that doing well on the second part of the last question helps to answer the first.

The best managers ask, “How can we harness employee strengths, interests and passions to create greater value for the firm?”  Systematically linking organizational performance and individual development goals in the search for learning opportunities and better ways to work is a hallmark of organizations where sustainable careers flourish. And this is not a question managers try to answer by themselves; instead, they discuss it regularly with their team members.

Here are several steps you can take to stimulate learning and development:

Share detailed information with your team about current operations across the firm.  Be transparent about the firm’s challenges and direction, including such things as changing customer expectations, new vendor relationships, early-stage strategic plans, and top leaders’ thinking regarding the potential impact of industry trends and economic conditions. Invite their questions, thinking and suggestions on these issues as well.

Support the development of internal social networks that span functions and divisions in order to give employees broader understanding of the organization and help them spot opportunities to learn and to add value.

Instead of a once-annual conversation about career goals at the time of the annual performance review, have frequent short conversations throughout the year regarding employees’ career goals and interests, which may not be self-evident. Regular career conversations help employees to refine their goals. With better understanding of their learning goals, you and your employees are in a better position to spot developmental opportunities.

When planning your team’s work, ask employees to identify both how they can contribute and what they would like to learn. This gives employees the primary responsibility for clarifying what they want to learn and for proposing ways to incorporate on-the-job learning. It also helps to avoid having employees volunteer to perform only the tasks that they are already highly skilled at.

Ask employees to report back periodically to you and fellow team members on what they have been learning and how they are using new skills and knowledge.

Keep in mind that in addition to helping employees develop and pursue meaningful learning goals, regular career conversations also help to mark progress in development. And they serve as a reminder of the organization’s commitment to employee learning, which in turn strengthens employee commitment.

 

The Secret to Lean Innovation Is Making Learning a Priority

The Secret to Lean Innovation Is Making Learning a Priority

by Tom Agan  |   12:00 PM January 23, 2014

Lean innovation is being embraced by everyone — from the smallest start-ups to the largest global organizations. But in most cases, it’s still falling well short of its full potential because it either lacks or fails to tightly integrate with the mechanisms needed to systematically capture lessons learned and share them outside the team. And that’s where the money is in innovation.

Lean innovation embraces a philosophy of not letting perfection get in the way of progress. It leverages the Pareto principle that 20% of a product’s features (what’s distilled down into the minimal viable product) will most likely deliver 80% of the benefits sought by customers.

As an approach, lean innovation lends itself especially well to corporate cultures, often engineering ones and others strongly focused on process-improvement programs such as Six Sigma. Its straightforward, step-by-step methodology makes it relatively easy to explain and to implement:

Identify the minimal viable product.

Develop a version rapidly and test it with customers, ideally in a real-world competitive situation.

Repeat the process until the core product is competitive or pivot to explore a new approach.

Lean innovation stands in stark contrast to conventional approaches to product development in which teams expend enormous effort trying to create a perfected, many-featured product over an extended period without sufficient in-market customer feedback. The resulting new products are often too expensive, too complicated, too different from what customers want, and too late to market.

But an exclusively process-driven view of lean innovation obscures the underlying reason for its power. And without a deeper understanding, we limit our ability to fully benefit from its potential.

When I worked at Nielsen, I led a study of innovation best practices in the consumer-packaged-goods (CPG) industry with companies like Procter & Gamble and Kraft that revealed why top-performing companies average 600 times more revenue from their new products than the lowest performers. The research tied variations in new product revenue at almost 30 global companies to differences in processes, culture, organizational structure, senior executive leadership roles, and investment.

One of the key findings was that learning has far and away the single greatest impact on revenue from new products. And creating a better environment for learning is what lean innovation does so well. Its focus on the most important product attributes and rapid cycling of trial and error — ideally in the real-life competitive environment — accumulates critical knowledge at a rapid clip.

In other words, lean innovation is not a better innovation process; rather it’s a more efficient learning process. And by combining the lean perspective with innovation research from CPG companies, we can vastly improve the effectiveness of the lean innovation approach. Here is what the research tells us:

Companies with mandatory formal debriefs of both success and failure following new product launches average about 100% more revenue from new products in comparison to companies that don’t formally debrief.

When debriefs are led by an outside third party, the revenue increases substantially more.

And when the learnings are captured in a knowledge management system, revenue jumps again.

Companies that apply these learnings to creating, continuously improving, and strictly following decision-making criteria for the evaluation of potential new products average about 130% more revenue from new products.

Success can skyrocket by simply adding the above steps to a lean innovation process.

But this research also points to a cautionary note regarding lean innovation. Given that lean innovation teams move so quickly, the learnings are less likely to be captured than in traditional, slower approaches to product development. Secondly, given that lean innovation teams often exist in parallel with conventional product development teams, valuable learnings from lean teams are not always transferred to the development side.

We need to think of lean innovation as a process that drives more efficient learning. But to maximize success, lean innovation must be married to practices that effectively capture these rich lessons and make them readily available to everyone within the organization.

 

Five Questions Every Leader Should Ask About Organizational Design

Five Questions Every Leader Should Ask About Organizational Design

by John Beeson  |   11:00 AM January 23, 2014

A few years ago Dave Ulrich, a management thought leader from the University of Michigan, made a comment I found both insightful and profound: “Every leader needs to have a model of organization design.” Typically a graphic depiction of the organizational components to be addressed in a redesign (for example, McKinsey’s 7S model, which includes strategy, structure, systems, staff, skills, and so on), every consultant and his brother flogs an organization design model. Dave didn’t advocate any particular design model, just one the leader knows how to employ and one flexible enough to be applied to the range of organizational situations a leader faces in the course of a career.

Once upon a time, “organization design” meant bringing in a slew of consultants to oversee a large-scale organizational restructuring, most often intended to take out big chunks of cost during an economic downturn. Although that kind of redesign is still required periodically, leaders today are more typically confronted with the challenge of how to find cost efficiencies in certain parts of their organization to invest in other parts of the organization that drive growth. As a result, organization design is no longer just a big bang event. Rather it’s an on-going nipping and tucking of organizational resources to achieve both growth and efficiency at multiple levels: the company overall, the operating group level, and even within functional groups like human resources and information technology. So leaders at many different levels need to get in on the act.

If, as Dave suggests, there isn’t any ideal design model, then how does one choose an approach to designing an organization that is robust enough to address the dual goals of achieving efficiency and investing in growth at multiple levels of the organization?

The fundamental task of organization design is, as it always has been, helping a leader move from defining strategy to putting in place an organization that enables the strategy to be executed predictably. An effective organization design model guides a manager in answering five fundamental questions in a thoughtful and well-integrated way.

What is the business’s value proposition and it sources of competitive advantage? Business strategies are lofty, typically long-term oriented, and often aspirational. By contrast a compelling value proposition describes succinctly how the company will compete successfully against its competition—and implies the critical activities around which the organization should be designed. Are you competing on the basis of on-going product or technological innovation? Through low-cost sourcing and manufacturing?  By creating highly customized solutions for target customers? A clear, straightforward answer to this question provides a foundation on which you can design an organization.

Which organizational activities directly deliver on that value proposition—and, by contrast, which activities can the company afford to perform in a way equivalent to competition? When faced with an organization design challenge, many managers rush to grab a cocktail napkin—long the instrument of choice for reorganizing—and sketch out a high-level diagram of boxes and reporting relationships. In doing so, they implicitly accept the way organizational resources and costs are currently deployed and miss opportunities for more creative, effective design. A better course is devoting time to considering what organizational functions truly bring the value proposition to life. As Kreig Smith, founder of design consultancy AlignOrg Solutions, has pointed out, not all work is created equal. Certain activities are crucial to delivering on the value proposition. As a result, they should be owned by the company and given the greatest possible resources.

Conversely, there are functions and activities where an extra dollar of investment doesn’t help the company win in the marketplace. What’s important is to realize that both sets of activities vary with a company’s business strategy. For example, new product development may be the lifeblood of a consumer products company—and thus need to be cultivated and resourced carefully—while in a low-cost producer, or fast follower company, product development may be only a nice-to-have activity. “Get the wash out the door” activities, that is, those where being at par with competition is sufficient, are candidates for cost reduction whether by centralization, automation, outsourcing, or a shared service approach.

Which organization structure should we choose, and how do we overcome its inherent downsides? Many leaders fall in love with the organization structure they’re most familiar with, whether it’s organized according to function, geographic location, customer segment, or through a matrix. In the process they neglect to appreciate the pros and inherent cons of the structure and thus fail to take steps to mitigate the downsides. While a structure organized around customer groups is great for getting close to them and catering to their needs, for instance, it can be costly, and over time interest in product innovation may wane. What’s more, organization structures by definition create boundaries between one part of the organization and others. A successful organization design therefore, as Jay Galbraith of the Center for Effective Organizations pointed out years ago, includes linking or integrating mechanisms, such as an account management function to coordinate activities—creative, design, brand management, and so forth—on behalf of the client within an advertising agency.

What type of leadership and culture are required to achieve the value proposition? For all the table pounding that managers do about culture change, few fully consider the type of leadership and culture required to put a new organization design into gear. Clearly, a low-cost producer strategy demands a ruthless focus on controlling costs while a customer-focused organization needs to encourage deep customer knowledge and internal coordination aimed at creating customer-specific products and services. When a company adopts a significantly different organization design, a critical part of the implementation process needs to include putting in place leaders who lead in a way consistent with the new value proposition and who will take steps to strengthen corresponding cultural norms. For example, when a company moves from an efficiency-based strategy to a customer-focused one, members of the leadership team need to introduce a new reward system to promote a do-whatever-it-takes mentality in responding to customer needs throughout the organization.

Which organizational practices are required to reinforce the organizational intent? Many managers introduce a new strategy and organization structure and declare victory—often at their peril. The reason that cultures are so difficult to change is that cultural values are deeply woven into the policies and practices that govern how people work. As a result, when leaders launch a significantly new organization design, it’s imperative that they revise such practices — how performance objectives are set, the metrics and scorecards that signal success or failure, the type of people to be recruited, and how they are trained. Otherwise, they’ll put in place a shiny new organization structure — but find that people are behaving exactly as they did under the old regime.

As organization structures have become more fluid and organic, organization design is no longer the purview of a handful of senior executives supported by high-priced consultants. Leaders at many levels of the organization are increasingly called on to reallocate organizational resources and redesign their organizations to support more frequent shifts in company strategy. As a result, they need to have a trusty organization design model in their wallets—and know how to use it.

 

Does Your Company Make You a Better Person?

Does Your Company Make You a Better Person?

by Robert Kegan, Lisa Lahey and Andy Fleming  |   8:00 AM January 22, 2014

When we hear people talk about struggling to maintain work-life balance, our hearts sink a little. As one executive in a high-performing company we have studied explained, “If work and life are separate things—if work is what keeps you from living—then we’ve got a serious problem.” In our research on what we call Deliberately Developmental Organizations—or “DDOs” for short—we have identified successful organizations that regard this trade-off as a false one. What if we saw work as an essential context for personal growth? And what if employees’ continuous development were assumed to be the critical ingredient for a company’s success?

The companies we call DDOs are, in fact, built around the simple but radical conviction that the organization can prosper only if its culture is designed from the ground up to enable ongoing development for all of its people. That is, a company can’t meet ever-greater business aspirations unless its people are constantly growing through doing their work.

What’s it like to work inside such a company? Imagine showing up to work each day knowing that in addition to working on projects, problems, and products, you are constantly working on yourself.  Any meeting may be a context in which you are asked to keep making progress on overcoming your own blindspots—ways you are prone to get in your own way and unwittingly limit your own effectiveness at work.

Whether you are someone who avoids confrontation, hides your inadequacies to avoid being found out, often acts before thinking things through, gets overly aggressive when your ideas are criticized, or are prone to any number of other forms of counterproductive thinking and behavior, you and your colleagues can expect to be working on identifying and overcoming these patterns as part of doing your job well. Together, in meetings, one-on-one sessions, and just during the course of your everyday work, you will also be seeking to get to the root causes of these patterns and continually devising different ways of doing things and seeing what happens as a result.

In a DDO, the root causes almost always are about people’s interior lives—about unwarranted and unexamined assumptions and habitual ways of behaving. And no executive or leader (no matter how senior) is immune from the same analytic process. When it comes to ongoing development, rankdoesn’t have its usual privileges.

In the ordinary organization, every person is doing a second job no one is paying them to perform—covering their weaknesses and inadequacies, managing others’ good impression of them, and preserving a position that would feel more precarious if people didn’t always see them at their best. In a DDO, this is considered the single biggest waste of resources in organizational life.

Imagine if you worked in a place where your inadequacies were presumed not to be shameful but were instead potential assets for continuing growth, where business challenges were new opportunities to test out whether you could take a more effective approach to solving a problem, where no matter how effective you were at your job, you could keep stretching yourself to even greater levels of capability.

Imagine if you worked in a place where the definition of a “good fit” between the person and the job is “she does not yet have all the necessary capabilities to perform the role at a high level, but we will help her to develop them, and when she does she will have outgrown this job, and we will need to find her another.”

An implication of our work for companies that aspire to be high-performing cultures is summed up in this question:  Would you continue to consign the development of your people (and, inevitably, onlya fraction of your people) to one-off training programs, executive coaches, high-potential programs, and the like if you could make your organization’s very operations the curriculum and your company the most compelling possible classroom in your sector?

Being part of such an organization is not always easy, but the environment created by a focus on development in the workplace that is universal (across all ranks and functions in the organization) and continuous (and therefore habitual) unleashes some surprising qualities: compassion alongside tough-minded introspection and organizational solidarity that comes from collective work at self-improvement.  This creates a different kind of vitality at work: a work and life integrated rather than balanced against each other.

With thanks to our research team members, Matt Miller and Inna Markus, who contributed to this piece and to the forthcoming HBR article, “Making Business Personal” (April 2014).  

 

The Choreography of Design, Treasure Hunts, and Hot Dogs That Have Made Costco So Successful; The Designer of Over 500 Costco Warehouses on What Makes the Brand Such a Trustworthy Business

THE CHOREOGRAPHY OF DESIGN, TREASURE HUNTS, AND HOT DOGS THAT HAVE MADE COSTCO SO SUCCESSFUL

THE DESIGNER OF OVER 500 COSTCO WAREHOUSES ON WHAT MAKES THE BRAND SUCH A TRUSTWORTHY BUSINESS.

BY STAN LAEGREID

Costco, the sixth largest retailer in the world, succeeds because of its adeptness in breaking the rules of retail common sense. Costco has no advertising for non-members, though contained in a vacuous space, they offer no signage, then when you check out they do not bag your purchase. On top of that, the Costco store contains a mere 3,600 SKUs. Supermarkets offer around 25,000 and a typical Walmart can tally 142,000 SKUs under its roof. At Costco, if you want ketchup, you get just one choice, not 12. And all this comes with a membership fee; the shopper has to pay to even enter the store. But it works, and here’s why:

PANORAMIC STORE PLANNING

After transcending those barriers to entry, once you walk through Costco’s doors, the store is clearly set before you. It’s a carefully choreographed movement. The store–a three-acre, 148,000 square foot warehouse–at first glance appears overwhelming. The store layout however, offers a panoramic view of each of its shopping districts.

In comparison, Ikea stores create a circuitous but forcefully maneuvered “yellow brick road.” You survey each Ikea district only at your point of arrival there, whereas at Costco, the consumer can visually survey the entire store at its entrance, taking in the racetrack retail plan that will lead them past each of the Costco shopping districts they have already visually anticipated.

Upon entry, the Costco visitor is met by the “luxe” offerings of televisions, computers, and electronics. Add the unexpected but exotic offerings: a Cartier watch or a Prada handbag, or, on at least one occasion, an original Picasso. They may be for sale at a much reduced price, but likely for only a fleeting moment.

As the customer continues along, the racetrack infield features home, seasonal, and lifestyle selections on low-profile racks that allow for open sight lines across any point of the store. Beyond, floor-to-ceiling racks of hard goods ring the outside of the racetrack while fresh food is found at the racetrack’s far end. The very outside of the track is home to practical staples, including toilet paper, whose location requires consumers to pass many impulse buys.

PERISHABILITY TRIGGERS THE HUNT

Another element of Costco’s magic is the constant, storewide rotation of target staples–such as light bulbs, detergent, and paper towels–referred to as “triggers.” The shopper must search storewide for triggers, which, again, exposes them to a greater number of products. This is a “treasure hunt” in Costco’s parlance.

THE ENSUING SENSE OF URGENCY TO IMPULSE BUY IS STEMMED BY THE FEAR THAT THE ITEM MIGHT BE GONE IF YOU WAIT TO RECONSIDER.

Costco rotates upward of 25% of its hard-goods and its products inside the racetrack as triggers. The result is that, of the 3,600 items for sale, a full 1,000 may be offered only for that particular moment and may not be available upon a future shopping visit. In fashion retail, Zara has mastered this version of perishability, which creates a high turnover of unique and current offerings that, when sold out, are replaced by a new set of fashion looks or unique new offerings. The ensuing sense of urgency to impulse buy is stemmed by the fear that the item might be gone if you wait to reconsider.

A DANCE THAT DEFIES CRITICS

This choreography has resulted in astounding, perennial success: Last June, the Seattle Times ranked Costco as the 10th best company in the Northwest, placing it ahead of Amazon.com, Microsoft, Nordstrom, and Nike. The Times acknowledged that this kind of ranking is relative, but the recognition is still impressive. To qualify the retailer’s success further, we can look at rankings by specific factors, which offer more concrete comparisons.

In this case, it actually produces an even more staggering result: Costco is the fourth largest retailer in the country, and this year it’s No. 22 in the Fortune 500. The Costco private label, Kirkland Signature, is one of the most successful brands in the industry. Jim Sinegal, Costco cofounder and former CEO, just won the National Retail Federation’s Gold Medal Award for 2014, that organization’s highest honor. Since its inception, the company has never posted a negative same-store sales result, and Costco averages among the highest sales figures per sale in the industry.

Despite this success, greed has not overtaken its operation. Costco engenders loyalty among both its employees and members with a strategy that looks out for both. For its members, Costco religiously limits its mark-ups to a maximum of 15%, straining its profit margin compared to the average mark-up of 25% for supermarkets and in excess of 50% for department stores.

For its employees, a full-time hourly Costco worker with customary raises can make upward of $40,000 annually after three to four years. With an average pay approaching twice the minimum wage, Costco also offers health care for upward of 90% of its employees. That results in one of the lowest turnover rates in the industry.

image001A Costco store, located in Chicago.Photo courtesy of Brian Fritz

FRUGALITY BEGETS SUSTAINABILITY

Costco thrives on a sense of simplicity and sustainability. The store recycles packaging boxes for customers to use instead of bags, and displays are often just stacks of pallets from the loading dock. Costco also recycles tires and grease, and each warehouse uses around 150 individual skylights to provide a majority of the store’s illumination through natural lighting. Customers are unaware of many sustainable strategies, such as advanced heat recovery from the refrigeration system, or the increased introduction of solar panels. These efforts to maximize efficiency, from operations to store design and production, help Costco scale worldwide and still offer the benefits to its customers and employees.

CURATE MY KETCHUP

Costco also serves as a commodity editor that we can trust. There is a sentiment in shopping psychology that we as consumers suffer from a burden of choice and resultant overload anxiety. More than ever, we rely on social editors–people in whom we have faith or institutions whose values we identify with–to make simple decisions for us. Shoppers can freeze at the sight of an entire corridor of breakfast cereals, but Costco pre-selects and makes only one or two offerings. While Costco’s motivation may be efficiency, it ends up offering the customer simplicity and less stress, increasingly valued commodities.

INNOCENCE BELIES STRATEGY

After the checkout, the food court offers–in this case very similar to Ikea–a hot dog at $1.50, the same price since 1985. It’s again indicative of the company’s concerted effort, if not culture, to provide ever more value for its members while holding prices steady–or reducing them. It creates a situation where even the most determined single-item hunter shopper will be persuaded into many additional purchases. This carefully orchestrated layout of temptation and choreography results in an unexpected shopping spree that makes Costco a genius at seducing and catering to its customers at the same time. All this contained in a seemingly innocent warehouse.

Stan Laegreid, AIA, is senior principal of MulvannyG2 Architecture, Bellevue, WA, which has designed nearly every of Costco’s 648 warehouses and counting, worldwide, since the retailer opened for business in 1983.

 

About That Morningstar Cover Jinx

About That Morningstar Cover Jinx

By John Rekenthaler | 01-23-14 | 08:45 AM | Email Article

Black Cats and Broken Mirrors
All right, I confess: I cheated with the headline. There’s no longer the sense among industry watchers that Morningstar’s Fund Manager of the Year Award serves as a jinx. This year, I’ve only seen one such article–a blog in U.S. News & World Reportcalled “The Curse of the Morningstar Top Fund Manager”–and even that was a head fake, as the article ended up being more about investor behavior than about the performance of FMOY funds.

But it’s a good excuse to run the numbers.

For all funds with managers who won an FMOY Award since the honor was first given in 1998, I compared the fund’s future Morningstar Risk-Adjusted Return against that of the category average.* The time periods were the following: one year, three years, five years, and 10 years.

 * If the manager ran more than one fund, I chose the largest, most visible fund, rather than double count that manager’s award. 

Below are the following one-year results, sorted into five buckets: 1) the fund’s MRAR was at least 4 percentage points per year higher than the category average; 2) the fund’s MRAR was between 1 and 4 percentage points higher; 3) the fund’s MRAR was between 1 percentage point lower and 1 percentage point higher; 4) the fund’s MRAR was between 4 percentage points lower and 1 percentage point lower; and 5) the fund’s MRAR was more than 4 percentage points lower.

(The cutoffs for the buckets are entirely arbitrary, but choosing different cutoffs does not change the analysis. As always, this analysis is from the perspective of the ongoing investor, so it does not include front-end sales charges but it does include all components of annual expenses.)

image001-4
  – source: Morningstar Analysts

In the year after the managers won, the FMOY Award funds regressed toward the mean, as one would expect. Overall, though, their performance remained modestly above average, as they were 34 funds making the top two quintiles and 24 funds landing in the bottom two quintiles. At the extremes, four funds out of the 57 in the sample had MRARs of greater than 8%, and five had MRARs of less than negative 8%.

While risk-adjusted performance is the best way to score success, per standard academic theory, it’s worth checking to see if total returns tell a different story. They do not, as shown by the chart below:

image002-4
  – source: Morningstar Analysts

Extending past one year, the numbers sharply improve. Winners (that is, funds landing in the top two quintiles) outnumber losers (funds in the bottom two quintiles) by an almost 2:1 margin for three years and by 3:1 for the five- and 10-year periods.

image003-3
  – source: Morningstar Analysts

image004-3

  – source: Morningstar Analysts

 

 

image005-3

  – source: Morningstar Analysts

This looks to be a straightforward tale. There’s little short-term information in an FMOY Award. Winners perform slightly better than randomly over the next 12 months. Over longer time periods, however, there is a good deal of information. This makes sense as, despite its name, the FMOY Award is something of a career achievement, given to a successful manager who happens to have had a particularly good year.

The effect holds for all three asset classes that receive the award–Domestic Stock, International Stock, and Fixed Income. (Yes, the Domestic Stock group is responsible for the modest one-year success. But I suspect that is luck; I see no reason why Morningstar’s Fund Research team has the ability to identify one-year winners with U.S. stock funds but not elsewhere.)

For example, the five-year results by asset class:

image006-3
  – source: Morningstar Analysts

image007-1
  – source: Morningstar Analysts

image008-1
  – source: Morningstar Analysts

I suspect that whispers of the curse will persist, as by chance three or four FMOY winners each decade figure to post a bottom-decile return the following year, thereby giving periodic opportunity for new anecdotes. There’s nothing to the general claim of a jinx, though, not as far as I can see.

Note: Morningstar’s Kailin Liu and I have each previously written on this topic, using a similar approach and arriving at broadly similar conclusions. Those articles are hereand here.

John Rekenthaler has been researching the fund industry since 1988. He is now a columnist for Morningstar.com and a member of Morningstar’s investment research department. John is quick to point out that while Morningstar typically agrees with the views of the Rekenthaler Report, his views are his own.

John Rekenthaler is Vice President of Research for Morningstar.

 

How to Read A Book

How to Read A Book

“Marking a book is literally an experience of your differences or agreements
with the author. It is the highest respect you can pay him.”
— Edgar Allen Poe

You already know how to read. I bet you were taught how in elementary school.

But do you know how to read well?

If you’re like most people, you probably haven’t given much thought to how you read.

Are you reading for information or understanding?

While great for exercising your memory, the regurgitation of facts without understanding gains you nothing. A lot of people, however, confuse insightful understanding with the ability to regurgitate information. They think that knowledge of something means understanding.

A good heuristic: Anything easily digested is reading for information.

Consider the newspaper, are you truly learning anything new? Do you consider the writer your superior when it comes to knowledge in the subject? Odds are probably not. That means you’re reading for information.

There’s nothing wrong with that; it’s how most people read. But you’re not really learning anything new. It’s not going to give you an edge or make you better at your job.

Learning something insightful is harder, you have to read something clearly above your current level. You need to find writers who are more knowledgeable on a particular subject than yourself. It’s also how you get smarter.

Reading for understanding means narrowing the gap between reader and writer.

The four levels of reading

Mortimer Adler literally wrote the the book on reading.

His book, How to Read a Book, identifies four levels of reading:

Elementary

Inspectional

Analytical

Syntopical

The goal of reading determines how you read.

Reading the latest Danielle Steel novel is not the same as reading Plato. If you’re reading for entertainment or information, you’re going to read a lot differently (and likely different material) than reading to increase understanding. While many people are proficient in reading for information and entertainment, few improve their ability to read for knowledge.

Before we can improve our reading skills, we need to understand the differences in the reading levels. They are thought of as levels because you can’t move to a higher level without a firm understanding of the previous one — they are cumulative.

1. Elementary Reading
This is the level of reading taught in our elementary schools.

2. Inspectional Reading
We’ve been taught that skimming and superficial reading are bad for understanding. That is not necessarily the case. Using these tools effectively can increase understanding. Inspectional reading allows us to look at the authors blueprint and evaluate the merits of a deeper reading experience.

There are two types of inspectional reading:

Systematic skimming
This is meant to be a quick check of the book by (1) reading the preface; (2) studying the table of contents; (3) checking the index; and (4) reading the inside jacket. This should give you sufficient knowledge to understand the chapters in the book pivotal to the authors argument. Dip in here and there, but never with more than a paragraph or two. Skimming helps you reach to a decision point: Does this book deserve more of my time and attention? If not you put it down.

Superficial reading
This is when you just read. Don’t ponder the argument, don’t look things up, don’t write in the margins. If you don’t understand something, move on. What you gain from this quick read will help you later when you go back and put more effort into reading. You now come to another decision point. Now that you have a better understanding of the books contents and its structure, do you want to understand it?

Inspectional reading gives you the gist of things. Sometimes that’s all we want or need. Too often however people stop here.

3. Analytical Reading

Francis Bacon once remarked “some books are to be tasted, others to be swallowed, and some few to be chewed and digested.” Think of analytical reading as chewing and digesting.

Analytical reading is a thorough reading. If inspectional reading is the best you can do quickly, this is the best reading you can do given unlimited time. At this point you start to engage your mind and dig into the work required to understand what’s being said.

There are rules to analytical reading

Classify the book according to kind and subject matter.

State what the whole book is about with the utmost brevity.

Enumerate its major parts in their order and relation, and outline these parts as you have outlined the whole.

Define the problem or problems the author is trying to solve.

You’ll probably notice that while those sound pretty easy, they involve a lot of work. Luckily the inspectional reading you’ve already done has primed you for this.

When you’ve done this you will understand the book but you might not understand the broader subject. To do that you need to use comparative reading to synthesize knowledge from several books on the same subject.

4. Syntopical Reading

This is also known as comparative reading and it represents the most demanding and difficult reading of all. Syntopical Reading involves reading many books on the same subject and comparing and contrasting the ideas.

This task is undertaken by identifying relevant passages, translating the terminology, framing and ordering questions we need answered, defining the issues and having a conversation with the responses.

The goal is not to achieve an overall understanding of any particular book, but rather to determine how to make the books useful to you.

This is all about you and filling in your gaps.

There are five steps to syntopical reading:

Finding the Relevant Passages
You need to find the right books and then the passages that are most relevant to filling your needs. So the first step is an inspectional reading of all the works that you have identified as relevant.

Bringing the Author to Terms
In analytical reading you must identify the key words and how they are used by the author. This is fairly straightforward.

The process becomes more complicated now as each author has probably used different terms and concepts to frame their argument. Now the onus is on you to establish the terms. Rather than using the authors language, you must use your own.

In short this is an exercise in translation and synthesis.

Getting the Questions Clear
Rather than focus on the problems the author is trying to solve, you need to focus on the questions you want answered. Just as we must establish our own terminology, so too must we establish our own propositions by shedding light on our problems to which the authors provide answers.

It’s important to frame the questions in such a way that all or most of the authors can be interpreted as providing answers. Sometimes we might not get an answer to our questions because they might not have been seen as questions by the authors.

Defining the Issues
If you’ve asked a clear question to which there is multiple answers then an issue has been defined. Opposing answers, now translated into your terms, must be ordered in relation to one another. Understanding multiple perspectives within an issue helps you form an intelligent opinion.

Analyzing the Discussion
It’s presumptions to expect we’ll find a single unchallenged truth to any of our questions. Our answer is the conflict of opposing answers. The value is within the discussion you have with these authors. You can now have an informed opinion.

Become a Demanding Reader

Reading is all about asking the right questions in the right order and seeking answers.

There are four main questions you need to ask of every book:

What is this book about?

What is being said in detail and how?

Is this book true in whole or in part?

What of it?

If all of this sounds like hard work, you’re right. Most people won’t do it. That’s what sets you apart.

 

Hesitate! Quick decision-making might seem bold, but the agony of indecision is your brain’s way of making a better choice

Hesitate! Quick decision-making might seem bold, but the agony of indecision is your brain’s way of making a better choice

by Steve Fleming 2,500 words

Steve Fleming is a cognitive neuroscientist. He is a postdoctoral fellow at New York University and a blogger at The Elusive Self.

In the autumn of 2007, the then prime minister of the UK, Gordon Brown, was riding on a wave of popularity. He had just taken the reins from Tony Blair, adroitly dealt with a series of national crises (terrorist plots, foot and mouth disease, floods) and was preparing to go to the country for a new mandate for his government. But then a decision to postpone the election tarred him with a reputation for dithering and his authority began to crumble. The lasting impression was not one of astute politicking — it was of a man plagued by indecision.

Whether lingering too long over the menu at a restaurant, or abrupt U-turns by politicians, flip-flopping does not have a good reputation. By contrast, quick, decisive responses are associated with competency: they command respect. Acting on gut feelings without agonising over alternative courses of action has been given scientific credibility by popular books such as Malcolm Gladwell’s Blink (2005), in which the author tries to convince us of ‘a simple fact: decisions made very quickly can be every bit as good as decisions made cautiously and deliberately’. But what if the allure of decisiveness were leading us astray? What if flip-flopping were adaptive and useful in certain scenarios, shepherding us away from decisions that the devotees ofBlink might end up regretting? Might a little indecision actually be a useful thing?

Let’s begin by casting a critical eye over our need for decision-making speed. It has been known for many years that the subjective ease with which we process information — termed ‘fluency’ by psychologists — affects how much we like or value things. For example, people judge fluent statements as more truthful, and easy-to-see objects as more attractive. This effect has consequences that extend beyond the lab: the psychologists Adam Alter and Daniel Oppenheimer, of the Stern School of Business in New York and the Anderson School of Management in Los Angeles respectively, found that if it a company name is easy to pronounce, it tends to have a higher stock price, all else being equal. The interpretation is that fluent processing of information leads people implicitly to attach more value to the company.

Fluency not only affects our perceptions of value; it also changes how we feel about our decisions. For example, if stimuli are made brighter during a memory test people feel more confident in their answers despite them being no more likely to be correct. In a study I conducted in 2009 with the psychologists Dorit Wenke and Patrick Haggard at University College London, we asked whether making actions more fluent also altered people’s sense of control over their decisions. We didn’t want to obviously signal that we were manipulating fluency, so we inserted a very briefly flashed arrow before the target appeared. In a separate experiment we confirmed that participants were not able to detect this arrow consciously. However, it still biased their decisions, slowing them down if the arrow was opposite in direction to their eventual choice, and speeding them up if it was in the same direction. We found that people felt more control over these faster, fluent decisions, even though they were unaware of the inserted arrow.

Fluent decisions, therefore, are associated with feelings of confidence, control, being in the zone. Mihaly Csikszentmihalyi, professor of psychology and management at Claremont GraduateUniversity in California, has termed this the feeling of ‘flow’. For highly practised tasks, fluency and accuracy go hand in hand: a pianist might report feelings of flow when performing a piece that has been internalised after years of practice. But in novel situations, might our fondness for fluency actually hurt us?

To answer this question we need to digress a little. At the end of the Second World War, engineers were working to improve the sensitivity of radar detectors. The team drafted a working paper combining some new maths and statistics about the scattering of the target, the power of the pulse, and so on. They had no way of knowing at the time, but the theory they were sketching — signal detection theory, or SDT — would have a huge impact on modern psychology. By the 1960s, psychologists had become interested in applying the engineers’ theory to understand human detection — in effect, treating each person like a mini radar detector, and applying exactly the same equations to understand their performance.

Despite the grand name, SDT is deceptively simple. When applied to psychology, it tells us that decisions are noisy. Take the task of choosing the brighter of two patches on a screen. If the task is made difficult enough, then sometimes you will say patch ‘A’ when in fact the correct answer is ‘B’. On each ‘trial’ of our experiment, the brightness of each patch leads to firing of neurons in your visual cortex, a region of the brain dedicated to seeing. Because the eye and the brain form a noisy system — the firing is not exactly the same for each repetition of the stimulus — different levels of activity are probabilistic. When a stimulus is brighter, the cortex tends to fire more than when it is dimmer. But on some trials a dim patch will give rise to a high firing rate, due to random noise in the system. The crucial point is this: you have access to the outside world only via the firing of your visual cortical neurons. If the signal in cortex is high, it will seem as though that stimulus has higher contrast, even if this decision turns out to be incorrect. Your brain has no way of knowing otherwise.

But it turns out the brain has a trick up its sleeve when dealing with noisy samples of information, a trick foreshadowed by the British mathematician Alan Turing while in charge of wartime code-breaking efforts at the secret Bletchley Park complex. Each morning, the code-breakers would try new settings of the German Enigma machine in attempts to decode intercepted messages. The problem was how long to keep trying a particular pair of ciphers before discarding it and trying another. Turing showed that by accumulating multiple samples of information over time, the code-breakers could increase their confidence in a particular setting being correct.

Remarkably, the brain appears to use a similar scheme of evidence accumulation to deal with difficult decisions. We now know that, instead of relying on a one-off signal from the visual cortex, other areas of the brain, such as the parietal cortex, integrate several samples of information over hundreds of milliseconds before reaching a decision. Furthermore, this family of evidence accumulation models does a very good job at predicting the complex relationships between people’s response times, error rates and confidence in simple tasks such as the A/B decision above.

Putting these findings together, we learn that there is a benefit from being slow. When faced with a novel scenario, one that hasn’t been encountered before, Turing’s equations tell us that slower decisions are more accurate and less susceptible to noise. In psychology, this is known as the ‘speed-accuracy trade-off’ and is one of the most robust findings in the past 100 years or so of decision research. Recent research has begun to uncover a specific neural basis for setting this trade-off. Connections between the cortex and a region of the brain known as the subthalamic nucleus control the extent to which an individual will slow down his or her decisions when faced with a difficult choice. The implication is that this circuit acts like a temporary brake, extending decision time to allow more evidence to accumulate, and better decisions to be made.

We don’t yet know whether these insights apply to the weighing of more abstract information, such as decisions about restaurants or holiday destinations. But there are hints that a signal detection-like model might explain these choices too. Daniel McFadden, a Nobel Prize-winning economist at the University of California, Berkeley, proposed an influential theory of choice in the 1970s directly inspired by signal detection theory. The core idea is that the values we assign to choice options are themselves subject to random fluctuations. These fluctuations then lead to different choices from moment to moment.

The agonising feeling of conflict between two options is not necessarily a bad thing: it is the brain’s way of slowing things down

In a recent study, researchers at the California Institute of Technology (CalTech) looked for signs of this accumulation of value while undergraduates chose between snack items, such as chips or cookies. During each decision, two items were presented on either side of a computer screen, and the students’ eye movements were recorded. Despite decisions being made within a couple of seconds, the pattern of eye movements belied subtle aspects of the decision process. When the decision was difficult — when the items were equally appealing — the eyes switched back and forth between the items more often than when the decision was easy. How much we flip between decision items, therefore, reveals the accumulation of evidence for decision-making.

In the evidence accumulation framework, indecision has a surprisingly simple interpretation. ‘Activity’ vacillates between two options over a particular time period — milliseconds for sensory A/B decisions, but perhaps minutes or even days for important decisions such as buying a car. Crucially, however, this neural flip-flopping is not something to be avoided. Instead, flip-flopping is an overt behavioural sign of the brain’s weighing of evidence for and against a decision. Anecdotal evidence suggests we are not alone in showing overt signs of indecisiveness. In a pioneering experiment, J David Smith, professor of psychology at the University of Buffalo in New York, trained a dolphin named Natua to press one of two levers depending on whether a sound was low- or high-pitched. After Natua could perform the task on cue, Smith introduced ambiguous tones. Natua vacillated between the two levers, swimming towards one and then the other, as if he was uncertain which one to press.

Some researchers have interpreted these signs of indecision as indicating that the dolphin has awareness of its own uncertainty during the decision. This could be the case, but it does not have to be — it could be that swimming from one option to the other is the dolphin equivalent of humans moving their eyes between options in the CalTech study. Either way, evidence accumulation models tell us that indecision is not a bad thing — the brain is slowing things down for a reason.

The speed-accuracy trade-off indicates that there can be negative consequences from being too decisive. Quicker decisions are often associated with more errors and greater potential for regret further down the line. If we are forced to make a decision quickly, evidence accumulation might not have finished before the decision is executed. By the time our muscles are contracting and we are pressing the ‘send’ button on a rash email, we might have accumulated additional evidence to suggest that this is not a good idea. Such gradual realisation of regret is writ large in Ian McEwan’s novel Atonement (2001) in which one of the characters, Robbie, is ‘seized by horror and absolute certainty’ that the letter he has just sent to his sweetheart is not the one he intended, with consequences that ripple through the rest of his story.

The implication is that sometimes our actions decouple from our intentions, revealing an intimate connection between evidence accumulation, indecision and error correction. Experiments support our intuitions about this: in a simple A/B decision, within only tens of milliseconds after the wrong button is pressed, the muscles controlling the correct response begin to contract in order to rectify the error. For rash emailers, this response even has a modern corrective: Gmail users are now able to set up a 30-second grace period in which to ‘undo’ a previously sent message. In other words, a response can be made, or an email sent, before our decision circuitry has appropriately weighed up all the evidence. Yet only a short time later, when enough evidence has been accumulated, we might become aware of something we should have said or done, the l’esprit de l’escalier of the neurosciences.

Consistent with this idea, a recent study by the neuroscientists Lucie Charles and Stanislas Dehaene at the Neurospin Centre in Paris showed that when subjects make errors under time pressure, a neural signature of the response that was intended but not actually executedcan be identified. Part of your brain seems to know what you should have done, even if the decision was executed too quickly, and too imperfectly, for the right action to have been made. In contrast, when given enough time to operate, intention and action work together in reasonable harmony, minimising the chances of a subsequent change of mind or regret.

Indecision is an inevitable feature of the neural mechanisms that underpin decision-making. With the right experimental set-up, we can observe the vacillations produced by this system in people’s behaviour. Cortico-basal ganglia circuits set the trade-off between speed and accuracy, and exquisitely sensitive mechanisms detect and correct errors even after decisions have been made. Yet decisiveness holds a subjective allure, perhaps because of the illusion of fluency, control and confidence it creates.

How should we reconcile the benefits of accumulating evidence with the costs of feeling disfluent? For simple decisions that take only a few seconds to make — from whether to reply to an email now or later, or which salad to have for lunch — there are some clear guidelines. First, decision-making tends to become more accurate if given a little extra time to operate. We should allow some indecision into our lives. Second, the agonising feeling of conflict between two options is not necessarily a bad thing: it is the brain’s way of slowing things down to allow a good decision to be made. Third, we should not ignore or suppress a change of mind after the fact — it is our brain’s way of using all the available information to correct inevitable errors in a time-limited process.

For important real-world decisions, however, the picture is certainly more complicated. The neuroscience of decision-making is in its infancy. Humans are endowed with the ability to simulate the future, and to use language to weigh up pros and cons — we can argue with ourselves and bounce ideas off others — all of which make such decisions very complex. But consider that important decisions are often the most difficult because they induce a state of indecision. (Charles Darwin even made a list of the pros and cons when deciding whether to marry, eventually deciding the pros outweighed the cons.) In these cases, our current understanding of the delicate balance of decision circuitry suggests we shouldn’t just blink and go with our gut instinct. In Habit (1890), the American philosopher William James said: ‘There is no more miserable human being than one in whom nothing is habitual but indecision.’ Yet enduring a little bracing indecision might be just what we need to navigate a busy, confusing world of choices.

 

What 16 Successful People Read In The Morning

What 16 Successful People Read In The Morning

ALISON GRISWOLD AND MAX NISEN JAN. 24, 2014, 8:00 AM 116,214 5

Staying informed is a constant struggle for most of us, let alone people with high-profile, high-pressure jobs. There’s usually not time to leisurely read a favorite paper over coffee.

Yet catching up on news is an important part of what’s often a very early morning for many of the world’s most successful people.

Now we would like everyone to read Business Insider in the morning (or the afternoon), but it turns out some very important people have their own favorite sources of news.

Warren Buffett starts his days with an assortment of national and local news.

The billionaire investor tells CNBC he reads the Wall Street Journal, the Financial Times, the New York Times, USA Today, the Omaha World-Herald, and the American Banker in the mornings. That’s a hefty list to get through.

David Cush reads five newspapers and listens to sports radio on a bike at the gym.

The Virgin America CEO told the AP that he wakes up at 4:15 a.m. on the West Coast to send emails and call people on the East Coast. Then he heads to the gym, hops on an exercise bike, listens to Dallas sports radio, and reads his daily papers, which include the New York Times, Wall Street Journal, USA Today, San Francisco Chronicle, and Financial Times.

Bill Gates reads the national papers and gets a daily news digest.

Bill Gates

The Microsoft co-founder gets a daily news digest with a wide array of topics, and he gets alerts for stories on Berkshire Hathaway, where he sits on the board of directors. Gates also reads the Wall Street Journal, the New York Times, and the Economist cover-to-cover, according to an interview with Fox Business.

Dave Girouard reads the New York Times and Wall Street Journal on his Nexus 7, and mixes in some Winston Churchill.

Girouard, CEO of Upstart and former president of Google Enterprise, told Business Insider that he’s a big fan of Winston Churchill’s speeches. He’s currently reading “Never Give In! The Best of Winston Churchill’s Speeches.” For news, he scrolls through the New York Times and Wall Street Journal.

David Heinemeier Hansson flicks through tech blogs.

The Danish programmer and creator of the programming language Ruby on Rails consumes a tech-filled fare each morning. He tells Business Insider that his daily round consists of Reddit, Hacker News, Engadget, the Economist, Boing Boing, and Twitter.

Jeffrey Immelt reads his papers in a very particular fashion.

“I typically read the Wall Street Journal, from the center section out,” the General Electric CEO told Fast Company. “Then I’ll go to the Financial Times and scan the FTIndex and the second section. I’ll read the New York Times business page and throw the rest away. I look at USA Today, the sports section first, business page second, and life third. I’ll turn to Page Six of the New York Post and then a little bit on business.”

Charlie Munger is devoted to the Economist.

When Fox Business asked the Berkshire Hathaway vice-chairman and right-hand man to Warren Buffett what he likes to read in the morning, Munger kept it simple. “The Economist,” he said.

Gavin Newsom starts with Politico’s Playbook email, and then reads each of California’s major papers.

The California Lieutenant Governor told The Wire that he starts by rotating through the morning shows at 7 a.m., then moves to his iPad to read Playbook, the Sacramento Bee, the San Francisco Chronicle, and the Los Angeles Times. Finally, he moves on to the news app Flipboard, through which he checks sites like Mashable and AllThingsD.

Barack Obama reads the national papers, a blog or two, and some magazines.

The President of the United States told Rolling Stone he begins his day with the New York Times, the Wall Street Journal, and the Washington Post. He’s a devoted reader of the Times’ columnists, and also likes Andrew Sullivan, the New Yorker, and The Atlantic.

Jonah Peretti pulls out the business or sports section from the New York Times for the subway ride; his wife keeps the rest.

The Buzzfeed founder and CEO wakes up around 8:30 a.m. and heads into the office with the sports or business section of the New York Times, he tells The Wire. He also takes New York magazine; subscriptions to the New Yorker and Economist fell by the wayside after he had twins.

Still, like many younger leaders, the principle way he discovers information is through Twitter and Facebook.

Steve Reinemund reads the Dallas Morning News and several national dailies.

The former PepsiCo CEO gets up promptly at 5:30 a.m. and heads downstairs with a stack of newspapers, Starwinar.com reports. He goes through the New York Times, the Wall Street Journal, and the Financial Times, as well as the Dallas Morning News.

Howard Schultz has kept his morning reading routine intact for 25 years.

In 2006, the Starbucks CEO told CNNMoney that he gets up between 5 and 5:30 a.m., makes coffee, and then picks up three newspapers: the Seattle Times, the Wall Street Journal, and the New York Times. The habit must work, because he’s stuck with it for more than two decades.

Nate Silver checks Twitter, Memeorandum, and Real Clear Politics pre-coffee in election years.

The FiveThirtyEight editor-in-chief shared his election-year reading habits with The Wire.

He starts with Twitter, Memeorandum, and Real Clear Politics before his coffee. He might hit the snooze button if nothing is breaking. Later come blogs like The Atlantic, Marginal Revolution, and Andrew Sullivan.

Shepard Smith works on TV, but relies on the websites of the New York Post and New York Times.

The Fox News host tells AdWeek that he starts his day with the websites of The New York Post or New York Times. After that comes The Daily Beast, SportsGrid, and sometimes Buzzfeed. Then comes sites relevant to whatever is being covered that day, including lots of local newspapers.

It’s a constant struggle to keep from being overwhelmed, he says. “If media were food, I would be obese,” Smith says.

Chuck Todd catches up with at least one major newspaper from each state on Twitter.

Todd, NBC’s Chief White House Correspondent, is up between 4:30 and 5 every morning, he tells AdWeek, and after catching up with dispatches and email updates, goes on Twitter to catch major news stories from local newspapers.

Twitter is the 21st century wire,” Todd says. “I remember the first time I got access to the [Associated Press] 50-state wire in 1992, and at that time, there was nothing like it. Now Twitter is the same way. I’ve made my own powerful, worldwide newswire on politics and international affairs.”

He also reads the New York Times, Washington Post, USA Today, Wall Street Journal, and Financial Times on his iPad.

Gary Whitehill supplements the Wall Street Journal with dozens of RSS feeds.

Sixty-three, to be precise. The Huffington Post reports that Whitehill, the founder of Entrepreneur Week, spends the first part of his day reading 40 pages in whatever his current book is, scanning through 63 RSS feeds, and perusing the Wall Street Journal.

A Simple Checklist For Making Better Decisions

A Simple Checklist For Making Better Decisions

GRETCHEN RUBINLINKEDIN

JAN. 24, 2014, 5:26 PM 5,014

We all have to make decisions about how to spend our precious time, energy, and money.

Because of my happiness project, I now explicitly ask myself, “Will this decision make me happier?”

I consider:

1. Is this decision likely to strengthen my relationships with other people? Strong relationships with other people are a keythe key—to happiness, so decisions that help me build or strengthen ties are likely to boost my happiness. Yes, it’s a hassle and an expense to go to my college reunion, but it’s likely to have a big happiness pay-off.

2. Will this decision provide me with novelty and challenge? Novelty and challenge make me happier—but they also make me feel insecure, intimidated, frustrated, and stupid. To get past that hurdle, I remind myself that in the end, I usually get a big shot of happiness. When I considered adding video to my site, I reminded myself that the process of mastering the process would likely make me happier. And it has.

3. What is the opportunity cost of this decision? (“Opportunity cost” describes that fact that doing one thing means foregoing alternatives.) Energy, time, and money are limited. Even if a decision would bring happiness, if it means that I have to give up the opportunity to do many other happiness-boosting activities, it may not be worth it. I could dedicate many hours to learning about classical music, and in the end, I might enjoy classical music more, but that activity would crowd out too many other things that I want to do more. Like read children’s literature.

4. Does this decision help me obey my personal commandment to Be Gretchen? I want to shape my life to reflect my temperament, interests, and values. I ask myself: Am I making this decision to “Be Gretchen,” or because I want to impress other people, pretend that I’m different from the person I actually am, or deny a truth about myself?

5. When I consider a particular course of action, do I feel energized or drained? In Happier at Home, I write about how I conquered my fear of driving. I dreaded doing this, but I was also energized by the thought of tackling this nagging worry.

6. How happy are the people who have made that particular decision? In Daniel Gilbert’s book Stumbling on Happiness, he argues that the most effective way to judge whether a particular course of action will make you happy in the future is to ask people who are following that course of action right now if they’re happy, and assume that you’ll feel the same way. Going on a family trip to Disney World. Getting a hamster. Learning to use Pinterest. Working as a paralegal. Volunteering. In evaluating the likely consequences of a decision, other people’s experiences of happiness—or lack thereof—can be very instructive for me.

7. I remind myself to “Choose the bigger life.” People will make different decisions about what the “bigger life” would be, but when I ask myself that question, it always helps me see the right answer, for myself.

 

October 27, 2008

Paradoxes of Happinesss: the sadness of a Happiness Project.

I think everyone could benefit from a happiness project.

But there’s also a sad side to a happiness project, which comes directly from the first and most important of my Twelve Commandments: “Be Gretchen.”

Many of the things that have brought me happiness since I started my Happiness Project came directly from my attempt to do a better job of “Being Gretchen.” This blog. My children’s literature book group. My Boy Castaways of Black Lake Island project.

But being Gretchen, and accepting my true likes and dislikes, also means that I have to face the fact that I will never visit a jazz club at midnight, or hang out in artists’ studios, or jet off to Paris for the weekend, or pack up to go fly-fishing on a spring dawn. I won’t be admired for my chic wardrobe or be appointed to a high government office. I love fortune cookies and refuse to try foie gras.

Now, you might think – “Well, okay, but why does that make you sad? You don’t want to visit a jazz club at midnight anyway, so why does it make you sad to know that you don’t want to do that? If you wanted to, of course you could.”

It makes me sad for two reasons. First, it makes me sad to realize my limitations. The world offers so much!–and I am too small to appreciate it. The joke in law school was: “The curse of Yale Law School is to try to die with your options open.” Which means — at some point, you have to pursue one option, which means foreclosing other options, and to try to avoid that is crazy. Similarly, to be Gretchen means to let go of all the things that I am not — to acknowledge what I don’t encompass.

But it also makes me sad because, in many ways, I wish I were different. One of my Secrets of Adulthood is “You can choose what you do, but you can’t choose what you like to do.” I have a lot of notions about what I wish I liked to do, of the subjects and occupations that I wish interested me. But it doesn’t matter what I wish I were like. I am Gretchen.

Once I realized this, I saw that this problem is quite more widespread. A person wants to teach high school, but wishes he wanted to be a banker. Or vice versa. A person has a service heart but doesn’t want to put it to use. Someone wants to be a stay-at-home mother but wishes she wanted to work; another person wants to work but wishes she wanted to be a stay-at-home mother. And it’s possible — in fact quite easy — to construct a life quite unrelated to our nature.

People judge us; we judge ourselves.

And the Happiness Project makes me sad for another reason. Just as I must “Be Gretchen” and accept myself, strengths and weaknesses both, I must also accept everyone around me. This is most true of my immediate family.

It’s very hard not to project onto your children everything you wish they would be. “You should be more friendly,” “You would love to be able to play the piano, why don’t you practice?” “Don’t be scared.”

And it’s even harder to accept your spouse. A friend told me that her mantra for marriage was “I love Leo, just as he is.” I remind myself of this constantly. I wish the Big Man got a big kick out of decorating the apartment for the holidays and that he was more eager to pass out gold stars, and sometimes it makes me sad to realize that he won’t ever be that way. I’m sure he wishes that I were eager to go camping and that I had a more peacable nature. But I love him just the way he is, and I’m a lot happier when I don’t expect him to change. The fact is, we can change no one but ourselves.

That’s another paradox of happiness: I want to “Be Gretchen,” yet I also want to change myself for the better.

Now, you might say again, “Why does all this make you sad? Rejoice in what you are; be authentic,” etc., etc. But it does make me feel sad sometimes.

Several thoughtful readers sent me the link to a very interesting article from The Atlantic: Paul Bloom’s First Person Plural, about our “multiple selves.”

 

4 Lifehacks From Ancient Philosophers That Will Make You Happier: “What’s The Worst That Could Happen?”; “As If”; Make It A Treat; Make It A Treat

4 Lifehacks From Ancient Philosophers That Will Make You Happier

ERIC BARKERBARKING UP THE WRONG TREE
JAN. 24, 2014, 8:23 AM 29,547 5

You’ve probably heard about Stoics or Stoicism — and most of what you know is wrong.

They weren’t joyless bores. The ancient Stoics were the first lifehackers: The Original Gangsters of Making Life Awesome.

Via A Guide to the Good Life: The Ancient Art of Stoic Joy:

The Stoics were very much interested in human psychology and were not at all averse to using psychological tricks to overcome certain aspects of human psychology, such as the presence in us of negative emotion.

Awesome. But does the Old World hold up when it meets the New World? Does science agree with the thinkers of antiquity?

Absolutely. I enthusiastically, maybe even frantically, suggest you “roll old school.”

In the past, I’ve looked at the science behind Dale Carnegie’s old saws about getting along with people. Let’s give the same treatment to classical thinkers.

Where do science and the great minds of the old world agree when it comes to living the good life?

1) “What’s The Worst That Could Happen?”

Ever asked that? Congrats, you’re a stoic philosopher.

“Negative Visualization” is one of the main tools of Stoicism.

Really thinking about just how awful things can be often has the ironic effect of making you realize they’re not that bad.

From my interview with Oliver Burkeman, author of The Antidote: Happiness for People Who Can’t Stand Positive Thinking:

It’s what the Stoics call, “the premeditation” – that there’s actually a lot of peace of mind to be gained in thinking carefully and in detail and consciously about how badly things could go. In most situations you’re going to discover that your anxiety or your fears about those situations were exaggerated.

In fact, the Stoics pushed it further: take a second and imagine losing the things that matter to you most. Family. Friends.

Yes, it’s scary. But doesn’t it make you appreciate them all that much more when you take the time to think about losing them?

A few seconds of thinking about loss can dramatically boost gratitude. 

Via A Guide to the Good Life: The Ancient Art of Stoic Joy:

At spare moments in the day, make it a point to contemplate the loss of whatever you value in life. It can make you realize, if only for a time, how lucky you are — how much you have to be thankful for, almost regardless of your circumstances…

And science agrees: Practicing gratitude is at the center of the single most proven technique for boosting happiness: 3 blessings.

Though deliberately thinking about losing stuff may sound morbid, the fact that it taps into emotions is powerfully motivating.

Gratitude is how you stop taking things for granted. How you stay happy after the newness of things is gone. How you keep love alive.

(More on negative visualization here.)

2) “As If”

The Stoics valued tranquility and thought being angry was a waste of time. But what should you do when your blood boils?

Force a smile. Soften your voice. Seneca thought if you act calm, you will become calm.

Via A Guide to the Good Life: The Ancient Art of Stoic Joy:

When angry, says Seneca, we should take steps to “turn all [anger’s] indications into their opposites.” We should force ourselves to relax our face, soften our voice, and slow our pace of walking. If we do this, our internal state will soon come to resemble our external state, and our anger, says Seneca, will have dissipated.

Does outright faking it really work?

Yup. And science agrees.

Researchers told people to smile. What happened? They actually felt happier.

Via The As If Principle:

More than 26,000 people responded. All of the participants were randomly assigned to one of a handful of groups and asked to carry out various exercises designed to make them happier… When it came to increasing happiness, those altering their facial expressions came out on top of the class

(More on “fake it until you make it” here.)

3) Make It A Treat

We want everything and we want it yesterday.

The Stoics, on the other hand, used to deliberately walk around on cold days without a coat. Or skip meals to become hungry. Why?

Denying yourself something makes you appreciate the things you take for granted.

Ancient advice? Yeah, it sounds like something my grandfather would have said. But science agrees wholeheartedly.

Harvard professor and author of Happy Money, Michael Norton says a bit of self-denial is a huge happiness booster:

if you love, every day, having the same coffee, don’t have it for a few days. Once you have it again, it’s going to be way more amazing than all of the ones that you would have had in the meantime… It’s not “give it up forever.” It’s “give it up for short periods of time, and I promise you you’re going to love it even more when you come back to it.”

Making the things you take for granted into “a treat” is something the ancients and scientists agree on. Plus it has other benefits too.

Grandpa was right: it does make you tougher to go without. It increases willpower.

Via A Guide to the Good Life: The Ancient Art of Stoic Joy:

What Stoics discover, though, is that willpower is like muscle power: The more they exercise their will, the stronger it gets. Indeed, by practicing Stoic self-denial techniques over a long period, Stoics can transform themselves into individuals remarkable for their courage and self-control.

Science agrees. Self-control expert and author of Willpower, Roy Baumeister, says exerting discipline increases discipline:

People have said for centuries that you can build character by making yourself do things you don’t want to do, that by exerting self-discipline you can make yourself into a stronger person. That does appear to be correct.

And what’s more responsible for success than IQ or pretty much anything else? Self-control.

Today skip that Starbucks or that cookie. It’ll be even better tomorrow. And it’ll increase your willpower.

(More on how to boost self-control here.)

4) It’s Okay To Stumble

Does Stoicism seem hard? Don’t want to think about how awful things can be right now? Don’t want to give up your ice cream for a day?

They knew that too. What did Epictetus tell his students after he taught them these Stoic lifehacks?

He told them what to do when they screw up — because we all do.

Forgive yourself.

Via A Guide to the Good Life: The Ancient Art of Stoic Joy:

The Stoics understood that they would encounter setbacks in their practice of Stoicism: Thus, Epictetus, after telling his students what they must do to practice Stoicisim, went on to tell them what they should do when they failed to follow his advice. He expected, in other words, that novice Stoics would routinely backslide. Along similar lines, Marcus recommends that when our practice falls short of Stoic precepts, we should not become despondent and certainly should not give up our attempts to practice Stoicism; instead, we should return to the attack and realize that if we can do the right thing, Stoically speaking, most of the time, we are doing pretty well for ourselves.

And what does science say we should do when we lose self-control or procrastinate

Forgive yourself and move on.

Via The Willpower Instinct: How Self-Control Works, Why It Matters, and What You Can Do To Get More of It:

Study after study shows that self-criticism is consistently associated with less motivation and worse self-control. It is also one of the single biggest predictors of depression, which drains both “I will” power and “I want” power. In contrast, self-compassion— being supportive and kind to yourself, especially in the face of stress and failure— is associated with more motivation and better self-control.

In trying to do anything to better your life, it’s okay to stumble. It takes time. You learn.

(More on self-compassion here.)

Sum Up

You’ve only got 30,000 days of life. Seriously. Here’s what classical philosophers and modern science agree can make those days better:

“What’s The Worst That Could Happen?”

“As If”

Make It A Treat

It’s Okay To Stumble

6 Habits Of Instantly Likeable People

6 Habits Of Instantly Likeable People

JEFF HADENINC. 
DEC. 28, 2012, 12:25 PM 81,409 5

When you meet someone, after, “What do you do?” you’re out of things to say.

You suck at small talk, and those first five minutes are tough because you’re a little shy and a little insecure.

But you want to make a good impression. You want people to genuinely like you.

Here’s how remarkably likeable people do it:

1. They lose the power pose.

I know: Your parents taught you to stand tall, square your shoulders, stride purposefully forward, drop your voice a couple of registers, and shake hands with a firm grip.

It’s great to display nonverbal self-confidence, but go too far and it seems like you’re trying to establish your importance. That makes the “meeting” seem like it’s more about you than it is the other person—and no one likes that.

No matter how big a deal you are you pale in comparison to say, oh, Nelson Mandela. So take a cue from him. Watch how he greets Bill Clinton, no slouch at this either.

Clinton takes a step forward (avoiding the “you must come to me” power move); Mandela steps forward with a smile and bends slightly forward as if, ever so slightly, to bow (a clear sign of deference and respect in nearly every culture); Clinton does the same. What you have are two important people who put aside all sense of self-importance or status. They’re genuine.

Next time you meet someone, relax, step forward, tilt your head towards them slightly, smile, and show that you’re the one who is honored by the introduction—not them.

We all like people who like us. If I show you I’m genuinely happy to meet you, you’ll instantly start to like me. (And you’ll show that you do, which will help calm my nerves and let me be myself.)

2. They embrace the power of touch.

Nonsexual touch can be very powerful. (Yes, I’m aware that sexual touch can be powerful too.) Touch can influence behavior, increase the chances of compliance, make the person doing the touching seem more attractive and friendly.

Go easy, of course: Pat the other person lightly on the upper arm or shoulder. Make it casual and nonthreatening.

Check out Clinton’s right-hand-shakes-hands-left-hand-touches-Mandela’s-forearm-a-second-later handshake in the link above and tell me, combined with his posture and smile, that it doesn’t come across as genuine and sincere.

Think the same won’t work for you? Try this: The next time you walk up behind a person you know, touch them lightly on the shoulder as you go by. I guarantee you’ll feel like a more genuine greeting was exchanged.

Touch breaks down natural barriers and decreases the real and perceived distance between you and the other person—a key component in liking and in being liked.

3. They whip out their social jiu-jitsu.

You meet someone. You talk for 15 minutes. You walk away thinking, “Wow, we just had a great conversation. She is awesome.”

Then, when you think about it later, you realize you didn’t learn a thing about the other person.

Remarkably likeable people are masters at Social Jiu-Jitsu, the ancient art of getting you to talk about yourself without you ever knowing it happened. SJJ masters are fascinated by every step you took in creating a particularly clever pivot table, by every decision you made when you transformed a 200-slide PowerPoint into a TED Talk-worthy presentation, if you do say so yourself…

SJJ masters use their interest, their politeness, and their social graces to cast an immediate spell on you.

And you like them for it.

Social jiu-jitsu is easy. Just ask the right questions. Stay open-ended and allow room for description and introspection. Ask how, or why, or who.

As soon as you learn a little about someone, ask how they did it. Or why they did it. Or what they liked about it, or what they learned from it, or what you should do if you’re in a similar situation.

No one gets too much recognition. Asking the right questions implicitly shows you respect another person’s opinion—and, by extension, the person.

We all like people who respect us, if only because it shows they display great judgment.

(Kidding. Sort of.)

4. They whip out something genuine.

Everyone is better than you at something. (Yes, that’s true even for you.) Let them be better than you.

Too many people when they first meet engage in some form of penis-measuring contest. Crude reference but one that instantly calls to mind a time you saw two alpha male master-of-the business-universe types whip out their figurative rulers. (Not literally, of course. I hope you haven’t seen that.)

Don’t try to win the “getting to know someone” competition. Try to lose. Be complimentary. Be impressed. Admit a failing or a weakness.

You don’t have to disclose your darkest secrets. If the other person says, “We just purchased a larger facility,” say, “That’s awesome. I have to admit I’m jealous. We’ve wanted to move for a couple years but haven’t been able to put together the financing. How did you pull it off?”

Don’t be afraid to show a little vulnerability. People may be (momentarily) impressed by the artificial, but people sincerely like the genuine.

Be the real you. People will like the real you.

5. They ask for nothing.

You know the moment: You’re having a great conversation, you’re finding things in common… and then bam! Someone plays the networking card.

And everything about your interaction changes.

Put away the hard-charging, goal-oriented, always-on kinda persona. If you have to ask for something, find a way to help the other person, then ask if you can.

Remarkably likeable people focus on what they can do for you—not for themselves.

6. They “close” genuinely.

“Nice to meet you,” you say, nodding once as you part. That’s the standard move, one that is instantly forgettable.

Instead go back to the beginning. Shake hands again. Use your free hand to gently touch the other person’s forearm or shoulder. Say, “I am really glad I met you.” Or say, “You know, I really enjoyed talking with you.” Smile: Not that insincere salesperson smile that goes with, “Have a nice day!” but a genuine, appreciative smile.

Making a great first impression is important, but so is making a great last impression.

7. And they accept it isn’t easy.

All this sounds simple, right? It is. But it’s not easy, especially if you’re shy. The standard, power pose, “Hello, how are you, good to meet you, good seeing you,” shuffle feels a lot safer.

But it won’t make people like you.

So accept it’s hard. Accept that being a little more deferential, a little more genuine, a little more complimentary and a little more vulnerable means putting yourself out there. Accept that at first it will feel risky.

But don’t worry: When you help people feel a little better about themselves—which is reason enough—they’ll like you for it.

And you’ll like yourself a little more, too.

Read more: http://www.inc.com/welcome.html?destination=http://www.inc.com/jeff-haden/6-habits-of-remarkably-likeable-people.html#ixzz2rPwWo9rR

El-Erian Told to Chill by Monk Teaching Davos Meditation; “I don’t blame him” for resigning. That’s an impossible job. Those funds are just so big, you never get any sleep at night. It’s really hard to move the needle, and you’re constantly worried

El-Erian Told to Chill by Monk Teaching Davos Meditation

Buddhist monk Matthieu Ricard has a message for managers like Mohamed El-Erian, the Pacific Investment Management Co. chief executive officer who said this week he’s resigning: time to chill out.

El-Erian’s decision to quit shows how too many business leaders are pushing themselves to the breaking point, said Ricard, who’s leading early-morning meditation workshops at the World Economic Forum in Davos, Switzerland.

“What’s the point if you don’t have a sense of the quality of the moment passing by?” asked Ricard, a French citizen who founded the Karuna-Shechen humanitarian association. “It doesn’t have to be blissing out under a mango tree, but some kind of joy.” Ricard’s been easy to spot in the cavernous Davos convention center this week, thanks to flowing robes of red and yellow fabric complemented by an Apple iPad.

Allianz SE (ALV), the parent of Newport Beach, California-based Pimco, this week said 55-year-old El-Erian would resign after six years at the firm. He was viewed by investors as the heir apparent to co-founder Bill Gross, who said he was “shocked” by El-Erian’s resignation to “recharge the batteries.”

The departure comes as the global financial elite gathered at Davos are urged by organizers to pay more attention to stress and mental health. An unprecedented 25 panels on health and wellness are planned throughout the week, including a seminar on meditation led by actress Goldie Hawn and sessions on the effects of constant technology use on the brain.

El-Erian won’t get the benefit of those sessions. He told Bloomberg Radio last year he avoids the 2,600-delegate event because he’d “rather read about Davos than be there and run around.” He declined to comment.

No Blame

“I don’t blame him” for resigning, said billionaire Denis O’Brien, chairman of Hamilton, Bermuda-based Digicel Group Ltd., the largest telecommunications company in the Caribbean. “That’s an impossible job. Those funds are just so big, you never get any sleep at night. It’s really hard to move the needle, and you’re constantly worried about things you can’t control.”

Gross, 69, is a fan of many of the de-stressing techniques being advocated in Davos. A devotee of yoga and meditation, Gross particularly enjoys standing on his head to clear his thoughts, he told the Washington Post (GHC) in 2008.

To contact the reporters on this story: Matthew Campbell in Davos, Switzerland at mcampbell39@bloomberg.net; Jacqueline Simmons in Davos, Switzerland at jackiem@bloomberg.net

What it’s like to work at Bill Gross’ Pimco; “Everyone knows when the big dog walks in, he wants silence”; As soon as Gross is seated, he requires updates from all corners of the markets. “His ability to scan and assess information is staggering”

What it’s like to work at Bill Gross’s Pimco

By Matt Phillips @MatthewPhillips January 23, 2014

The abrupt departure of Mohamed El-Erian as CEO of bond-fund megalith Pimco this week sparked much head-scratching amongst the financial press. Bill Gross, Pimco’s founder and managing director, told the Wall Street Journal that he didn’t want El-Erian to leave (paywall), but the Financial Times reports that a “frequently fractious” relationship (paywall) between Gross and El-Erian was part of the reason he departed.

So what’s it really like to work for the bond king?

Interviews with ex-Pimco traders suggest Gross, who served as a naval officer during the Vietnam war, runs an incredibly tight ship. And his management style can take its toll.

Traders arrive at the third-floor trading room of Pimco’s headquarters in Newport Beach, California, about an hour’s drive from central Los Angeles, before 5 am California time. (Early this year the firm is expected to move into a new 20-story headquarters in the same town.) Visitors—especially those who’ve visited the voluble trading desks of Wall Street before—notice something about the floor: the silence.

You can almost hear a pin drop. And that’s by design. Under Gross, conversation is kept to a minimum. If you must talk, it’s done in tones not much louder than a whisper.

“Everyone knows when the big dog walks in, he wants silence,” one former Pimco employee, who declined to be named, told Quartz.

Almost as soon as Gross is seated, he requires updates from all corners of the markets, which traders zap to him.

You certainly don’t talk to Gross himself.

“It’s kind of medieval. You only speak when spoken to,” the same trader said.

All communications about trade ideas for Gross are submitted according to his protocol. The trades are printed out, with charts, yields and prices. They’re handed to Gross’s assistant. She takes the recommendations and walks a few feet to put them in Gross’s in-tray, on his desk. Traders aren’t supposed to put the recommendations in the in-tray directly.

If his protocols aren’t followed, Gross has been known to issue somewhat random “demerits.” (Perhaps it’s some sort of throwback to his time in the Navy.) Traders’ recommendations reviewed by Quartz had hand-written queries and criticisms on them from Gross, with running tallies of the number of infractions (“Demerit #3″) added at the top.

Sometimes Gross’s attention to detail goes to extremes. As one story goes, confirmed by separate sources, Gross once sent a corporate bond trader home in the midst of the trading day with instructions to hand-write 1,000 times that he would not submit trade recommendations without charts.

Was it Gross’s managerial style that finally exhausted El-Erian? We don’t know. Traders say that while the two were publicly viewed as equals—in addition to their other titles, they are both called “co-chief investment officer”—within the firm Gross was clearly considered superior.

“There wasn’t a co-anything. Everybody knew that Bill ran it,” said another ex-Pimco employee, who declined to be named. “I was in investment committee meetings where he would just tear Mohamed apart.”

Of course, Gross has no trouble finding high-powered employees willing to work at Pimco. He built the firm into one of the world’s most influential asset managers with his laser-like focus on the unsexy world of bond markets. Pimco’s ”Total Return Fund” is the world’s largest bond fund. And traders don’t join trading desks because they want to work in a cushy environment. They follow the money, and Pimco pays well. (El-Erian reportedly earned $100 million in one of his years at the firm.)

And in fairness to Gross, traders acknowledge there’s a method to his approach. He is making a myriad decisions on titanic sums of client money. Though they might ruffle feathers, employees say his systems work, allowing him to quickly and accurately distill detailed information into fuel for investment decisions.

“His ability to scan and assess information is staggering,” said one former Pimco employee.

But El-Erian was also the long-standing heir apparent to Gross. Now Pimco’s investors will be asking what will happen to the firm should anything happen to Gross. He’s publicly claimed he’s “ready to go another 40 years,” though he subsequently told the Journal that five or ten years would be more realistic. When you’re searching for someone to assume the mantle at a company that’s the leader in its field, that’s not necessarily a whole lot of time.

 

Bubble Wrap: Sealed Air’s Still Popping After All These Years; Who doesn’t love popping Bubble Wrap? “It doesn’t matter if you’re 103 or 3 years old. Dogs and cats love it, even parakeets.”

Bubble Wrap: Sealed Air’s Still Popping After All These Years

By Caroline Winter  January 23, 2014

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Rohn Shellenberger, the business manager of Sealed Air (SEE), knows his company’s trademark product has wide appeal. Who doesn’t love popping Bubble Wrap? “It doesn’t matter if you’re 103 or 3 years old,” Shellenberger says. “Dogs and cats love it, even parakeets.”

On Jan. 27 the world will celebrate the 14th Annual Bubble Wrap Appreciation Day. In advance of the festivities, fans submitted more than 2,000 Bubble Wrap-inspired videos, featuring everything from rhythmic pop-inducing dance routines to a bike designed to unspool and run over a carpet of the bulbous plastic. On the big day, the company will nominate one of three finalists for induction into the Bubble Wrap Hall of Fame. The winner will take home a bale of the stuff.

Engineers Marc Chavannes and Alfred Fielding came up with the precursor to Bubble Wrap in 1957 when they sealed together two shower curtains. The pair (now deceased) initially pitched their product as wallpaper. Then Chavannes had an epiphany: “He was on an airplane coming back from a business trip, and the rolling clouds resembled a Bubble Wrap sheet,” Shellenberger says. “As the plane was descending down to Newark Airport, he felt like it was bouncing on the clouds, which gave him an idea.”

In 1960, Chavannes and Fielding launched Sealed Air out of a tiny building in Hawthorne, N.J.—not far from the company’s present-day headquarters in Elmwood Park. IBM (IBM) was one of the first major clients. Other customersincludeAmazon.com (AMZN), Wal-Mart Stores (WMT), and Staples (SPLS). Publicly traded Sealed Air logged sales of $7.8 billion in 2013.

The company has been able to hang on to its first-mover advantage by preempting rivals. Early on it produced lower-grade, uncoated bubble packaging to win over those “who had previously used cardboard, paper, peanut shells, and pieces of foam,” writes Adrian Ryans, a professor emeritus at IMD Business School in Lausanne, Switzerland, and the author of Beating Low Cost Competition. More recent innovations include inflatable packaging and a wrap that’s 50 percent recycled plastic.

An Indiana radio station inspired Bubble Wrap Appreciation Day in 2001 after some on-air shenanigans. Now Sealed Air promotes BWAD as an occasion for people around the world to celebrate what Shellenberger calls a “pop culture phenomenon.” Businesses that distribute packaging materials mark the day with special deals. “We’ll ship out over a thousand packages for orders” on BWAD, compared with 25 on a normal day, says Jason Archambault, president and chief executive officer of Fastpack Packaging in Lee, Fla. Archambault says he was hoping to spur sales of some of his other merchandise in 2011 when he unilaterally declared the first Monday in October Packing Peanut Appreciation Day. “It never really took off.”

The bottom line: Although it’s getting on in years, Bubble Wrap continues to undercut lower-priced competitors.

Western vanities that do little to help the world’s poor; Bill Gates overstates foreign aid’s contribution to the poorest regions, says William Easterly

January 24, 2014 7:10 pm

Western vanities that do little to help the world’s poor

By William Easterly

Bill Gates overstates foreign aid’s contribution to the poorest regions, says William Easterly

Bill Gates said last week that the world is better than it has ever been. Contentment may come easily to the richest man on earth. Yet the object of his satisfaction was not his own billionaire’s lot, but the improving prospects of the planet’s poorest people.

Mr Gates has spent the past 13 years giving away a large part of the fortune he amassed as co-founder of Microsoft. In that time, the foundation whose chairmanship he shares with his wife Melinda has made grants amounting to almost $30bn. In a letter published last week, Mr and Mrs Gates attacked the defeatist attitude that sometimes surrounds discussions concerning global development.

As they rightly insist, incredible progress has been made in the past 35 years towards the eradication of hunger and premature death. This refutes the dogma that poor countries are doomed to stay poor, that foreign aid is all wasted, and that saving lives inevitably leads to the misery of overpopulation. These myths, they say, threaten to hold back the poor by persuading humanity that deprivation is an evil with which people must learn to live, when in fact it is a blight that can be eradicated.

But Mr and Mrs Gates promulgate myths of their own. They overstate the contribution that foreign aid makes to economic progress in the world’s poorest regions. And they exaggerate the role played by philanthropists and politicians. These misconceptions, too, are pernicious, for they focus attention on development programmes that spread a costly misunderstanding on how poverty really ends.

Begin with the role of leaders. Mr Gates says there has been much progress, but that “we’ll need to apply human ingenuity and act on our compassion” to keep it going. Conversely, he equates the idea that “the world is getting worse” to the idea that “we can’t solve extreme poverty and disease”. For Mr Gates, apparently, much depends on what “we” do. But who are “we”, and who put us in charge? Mr Gates seems to have in mind the global elite whose most prominent representatives were this week assembled in Davos: political leaders, business executives, philanthropists, academics and functionaries from international institutions such as the World Bank.

Yet the progress that Mr Gates celebrates began long before this club appointed itself troubleshooter of the world’s problems, and before the advent of organised foreign aid. Consider the case of public health. In the rich countries of today, life expectancy has been rising and infant mortality falling at least since 1900. Poor countries began seeing similar advances shortly after the second world war. While there is still great global inequality on health outcomes, sickness is declining in almost all countries, regardless of how they are governed and how much foreign aid they receive.

This revolution is a story of many actors rather than conspicuous heroes, as Angus Deaton explains in his superb book The Great Escape. The germ theory of disease led to more effective efforts to clear up the water supply, and spurred the invention of drugs such as penicillin. Improvements in transport spread knowledge, medicine and equipment more quickly. Educated parents practised better hygiene and knew how to get medicines for their sick children. Money was only a small part of the story. Ghana at the turn of the millennium was a far poorer country than the US at the beginning of the second world war. Yet it had reduced its infant mortality rate to a similar level.

The contribution made by philanthropists and politicians should not be overplayed. Yet, if aid is a feeble instrument of economic progress, it is nonetheless a powerful tool of self-aggrandisement for the western elite. “We” are important because we are the rich people giving aid, the political leaders of the poor countries that receive it and the experts who broker the exchange.

True, some aid programmes have targeted sickness with triumphant success. Mass vaccination campaigns kept millions of children from dying of measles and smallpox. Unicef promoted oral rehydration therapy to fight diarrhoeal diseases that used to cause far more deaths. But even if health aid has been a success, it does not follow that most progress on health is due to aid.

In other important areas, international assistance programmes have a patchy record. As Mr Gates himself acknowledges, there is no definitive proof that aid stimulates the economic growth necessary to lift people out of poverty.

Mr Gates is right that the world’s rich should do more to support public health programmes that work. He is right, too, to decry the time wasted arguing over whether aid works. But the reason he gives – that the argument should concentrate on how to make aid work better – is the wrong one. Aid spending is a drop in the ocean of the budgets of the governments that give it and the economies of the countries that receive it. Whether it works scarcely matters for development.

The obsession with international aid is a rich-world vanity that exaggerates the importance of western elites. It is comforting to imagine that benevolent leaders advised by wise experts could make the poor world rich. But this is a condescending fantasy.

The progress that Mr Gates celebrates is the work of entrepreneurs, inventors, traders, investors, activists – not to mention ordinary people of commitment and ingenuity striving for a better life. Davos Man may not be ready to acknowledge that he does not hold the fate of humanity in his gilded hands. But that need not stop the rest of us.

The writer is author of the forthcoming book ‘The Tyranny of Experts’

 

When even bad strategy is worth doing well; Good implementation of even a poor strategy can lead to the discovery of better ones

When even bad strategy is worth doing well

Sat, January 25 2014, 7:00 AM

Good implementation of even a poor strategy can lead to the discovery of better ones.
When an assignment to create the first version of Apple’s Graphing Calculator software was cancelled in 1993, freelance software developers Ron Avitzur and Greg Robbins paid no heed. In an act of innovation-as-rebellion that has become legendary, they used their Apple ID badges to gain unauthorized access to the campus, working into the wee hours for six unpaid months until the project was finished. Ten years after its completion, the Graphing Calculator software had shipped with an estimated 20 million machines.
This is a compelling example of what organizational researchers call “bottom-up exploration” – employee deviations from official strategy that sometimes result in huge gains for companies. Apple isn’t the only Silicon Valley firm to have benefited from letting staff follow their muse: Google famously allows employees to spend 20 percent of their time on company-related personal projects, a policy that led to Google News, AdSense, and Gmail.
But knowing as we do these benefits of deviations from strategy, as well as the reality that the strategies coming from the C-suite are seldom perfect, is it sensible for managers to place such a heavy emphasis on implementing them effectively? In a recent working paper Explaining the Implementation Imperative: Why Effective Implementation May Be Useful Even With Bad Strategy, my co-author Eucman Lee (a PhD candidate at London Business School) and I develop a theory that explains why aggressively pursuing effective implementation may in fact be very sensible indeed.
By effectiveness at strategy implementation, I mean the extent to which an organization’s actions correspond to its strategic intentions. Thus, a company that seeks to pursue a low-cost strategy can be said to have successfully implemented the strategy if its costs indeed fall relative to its rivals; whether this leads to high profits or not depends on the appropriateness of the low-cost strategy in that particular industry.
The fundamental feature of strategy implementation we focused on in our research is the separation between beliefs and actions; i.e., in the typical company the people who come up with strategies and refine them are typically not those who implement them. In an attempt to study the consequences of this separation carefully, we built what is known as an “agent based model”, basically a computer program that replicates the logic of interaction between individuals in a way that allows us to project what is likely to occur over many such interactions, and in a wide variety of circumstances.
Our model involved a manager and a subordinate, programmed to try to look for the biggest possible profit by choosing from a range of options through trial and error, akin to a gambler facing a slot machine with several arms. Each period, the manager would pick a strategy, “tell” the subordinate what to do, the subordinate would implement the strategy as he understood it, there would be a performance outcome, and the manager would then modify his beliefs about the value of the strategy based on the performance observed.
We ran the model through numerous periods, building in different types of features corresponding to the real world such as communication errors and top-down and bottom-up exploration of ideas.
Across a range of conditions, we found that, in fact, it was generally a good idea to improve the implementation effectiveness of the subordinate, even when the strategy the manager chose was not necessarily a good one to begin with.
As we picked open the model to see what was going on, we discovered there are two main reasons for this phenomenon. Firstly, bad implementation makes it quite difficult for companies to learn from failure or success. When a strategy produces undesirable outcomes, how are leaders to know whether the problem lies in the strategy itself or all the deviations that crop up in the absence of effective implementation? If the outcome was good, how do we know if it was indeed because of the strategy? This could lead a CEO into unfortunate decision-making based on a confounded impression of the outcome.
Secondly, the organization as a whole does indeed benefit from learning better strategies through some deviations from current strategy. Beyond a certain point, these aberrations hurt because they don’t allow the organization to extract the value of the good strategies uncovered. Any communication gap between managers and employees will automatically foster some amount of divergence, and attempts by senior managers to look for new strategies also generate deviations over time. On top of these, deviations resulting from imperfect implementation tip the level of deviation into the harmful zone.
Our results also suggest that not only should companies continue to invest in improving their strategic implementation but they should also focus on sharpening their measurement of implementation effectiveness. Indeed, a manager who looks and listens and accurately interprets implementation effectiveness can be a greater asset than a silver-tongued boardroom orator who knows how to communicate the strategy effectively.
Why? The communicated strategy may not be the best anyway, and deviations arising from misunderstanding it can be benign. But an unobservant manager may contribute biases, false realities about what actions were actually driving current performance. Indeed, eagle-eyed managers who can measure implementation effectiveness are the most likely to help companies capitalize on innovations originating from bottom-up exploration. The potential breakthroughs that occasionally come about when employees (wittingly or unwittingly) deviate from company strategy are unlikely to be replicated, let alone propagated as best practice, without managerial intervention.

 

Time to Retire The Simplicity of Nature vs. Nurture

Time to Retire The Simplicity of Nature vs. Nurture

Jan. 24, 2014 7:39 p.m. ET

Are we moral by nature or as a result of learning and culture? Are men and women “hard-wired” to think differently? Do our genes or our schools make us intelligent? These all seem like important questions, but maybe they have no good scientific answer.

Once, after all, it seemed equally important to ask whether light was a wave or a particle, or just what arcane force made living things different from rocks. Science didn’t answer these questions—it told us they were the wrong questions to ask. Light can be described either way; there is no single cause of life.

Every year on the Edge website the intellectual impresario and literary agent John Brockman asks a large group of thinkers to answer a single question. (Full disclosure: Brockman Inc. is my agency.) This year, the question is about which scientific ideas should be retired.

Surprisingly, many of the writers gave a similar answer: They think that the familiar distinction between nature and nurture has outlived its usefulness.

Scientists who focus on the “nature” side of the debate said that it no longer makes sense to study “culture” as an independent factor in human development. Scientists who focus on learning, including me, argued that “innateness” (often a synonym for nature) should go. But if you read these seemingly opposed answers more closely, you can see a remarkable degree of convergence.

Scientists have always believed that the human mind must be the result of some mix of genes and environment, innate structure and learning, evolution and culture. But it still seemed that these were different causal forces that combined to shape the human mind, and we could assess the contribution of each one separately. After all, you can’t have water without both hydrogen and oxygen, but it’s straightforward to say how the two elements are combined.

As many of the writers in the Edge symposium point out, however, recent scientific advances have made the very idea of these distinctions more dubious.

One is the explosion of work in the field of epigenetics. It turns out that there is a long and circuitous route, with many feedback loops, from a particular set of genes to a feature of the adult organism. Epigenetics explores the way that different environments shape this complex process, including whether a gene is expressed at all.

A famous epigenetic study looked at two different strains of mice. The mice in each strain were genetically identical to each other. Normally, one strain is much smarter than the other. But then the experimenters had the mothers of the smart strain raise the babies of the dumb strain. The babies not only got much smarter, they passed this advantage on to the next generation.

So were the mice’s abilities innate or learned? The result of nature or nurture? Genes or environment? The question just doesn’t make sense.

New theories of human evolution and culture have also undermined these distinctions. The old evolutionary psychology suggested that we had evolved with very specific “modules”—finely calibrated to a particular Stone Age environment.

But new research has led biologists to a different view. We didn’t adapt to a particular Stone Age environment. We adapted to a newly unpredictable and variable world. And we did it by developing new abilities for cultural transmission and change. Each generation could learn new skills for coping with new environments and could pass those skills on to the next generation.

As the anthropologist Pascal Boyer points out in his answer, it’s tempting to talk about “the culture” of a group as if this is some mysterious force outside the biological individual or independent of evolution. But culture is a biological phenomenon. It’s a set of abilities and practices that allow members of one generation to learn and change and to pass the results of that learning on to the next generation. Culture is our nature, and the ability to learn and change is our most important and fundamental instinct.

 

When a Giant Gain Causes Pain; Succeeding as an investor takes a strong mind, but a stronger heart. That is especially true when stocks plunge-or soar

Jan 24, 2014

When a Giant Gain Causes Pain

JASON ZWEIG

Succeeding as an investor takes a strong mind, but a stronger heart. That is especially true when stocks plunge—or soar.
In his letter this week to investors in his hedge funds, manager David Einhorn of Greenlight Capital pointed to “the parabolic rise of a growing number of market-leading story stocks.”

If you have explosive gains on stocks like Fannie MaeFNMA -3.54% (up 968% over the past 12 months),NetflixNFLX -0.68% (up 163% over the same period) orPriceline.comPCLN -2.39% (up 74%), it isn’t just time to reassess what you are investing in. It is time to reassess what kind of investor you are.

For proof, look no further than the remarkable story of Ross Miller and Mary O’Keeffe, a married couple who took a wild ride on a supersonic stock.

Mr. Miller, who died last May at age 59, was a professor of finance at the State University of New York in Albany. Every year, he had his classes analyze and track a stock in the news. But, says Ms. O’Keeffe, Mr. Miller never bought any of them, investing exclusively in diversified index funds—until last February, when that semester’s stock caught his fancy.

It was Tesla MotorsTSLA -3.80%, the manufacturer of electric cars, which he bought at around $38 a share.

The stock doubled in the next three months. Then Mr. Miller bought call options on Tesla—bets on a further rise in price that made roughly $30,000 in one week, according to Ms. O’Keeffe.

Early last May, Mr. Miller said to her, “I have something to confess to you.” He had kept the options trade a secret from his wife. “I was so relieved that was what he was confessing,” she says.

Decades earlier, as a young professor at the California Institute of Technology, Mr. Miller had become addicted to options trading, in which even small price movements can produce big gains or losses. “He made some money, then lost it all,” Ms. O’Keeffe recalls. Mr. Miller then made a written commitment never to trade options again, placing the couple’s two favorite stuffed animals next to the pledge and having them “witness” it.
So Mr. Miller felt the need to confess last year because he had violated one of his own rules of self-control. “I gave him absolution,” Ms. O’Keeffe says.

But the options were making Mr. Miller “stressed out,” she recalls. So he sold them and told his wife that if Tesla hit $200 a share, he would consider selling the stock, too.

Ten days later, Mr. Miller died of sudden heart failure.

“Nothing prepared me for the sudden responsibility of managing this,” says his widow. “By training and intellectual preparation I should have been qualified, but I was utterly unprepared for how difficult it would be emotionally.”

Ms. O’Keeffe hadn’t merely been married to a finance professor who pioneered a method for estimating the value that fund managers provide for their investors.

Like her husband, Ms. O’Keeffe earned a Ph.D. in economics at Harvard University. She had taught a course on financial management for nonprofits. She and Mr. Miller ran a consulting firm that advised companies on how to manage financial risks. Ms. O’Keeffe, now 60, is a professor of public finance and tax policy at Union College in Schenectady, N.Y.

But as Tesla “gyrated wildly up and down,” she says, the stock was “too stressful to watch.” She sold most of it at around $140 a share in August. After the stock went up to $194 and down again, she sold the last of her shares at around $130 in November.

Tesla was back above $180 this week, but Ms. O’Keeffe doesn’t care. “I have no regrets,” she says. “I’m so glad not to have to think about it anymore.”

What happened to Mr. Miller and Ms. O’Keeffe isn’t unusual, say experts in the psychology of investing.

If you have a small stake in a company, you own the stock. But if that stake suddenly grows enormous, the stock owns you. Thinking rationally about it then can become all but impossible—even if you have a doctorate in economics.

No matter how closely you analyzed a stock when you bought it, if it has since gone way up, then it is time to start analyzing yourself, says Meir Statman, a professor of behavioral finance at Santa Clara University.

“What many people are afraid of when they have a stock with a big gain,” he says, “is regret.” So you need to figure out which will bother you more: selling the stock and then watching it go up even more, or not selling and then watching it go down.

To manage both kinds of regret on a highflying stock, consider selling, say, 20% in five equal installments at regular intervals. That reduces the risk of selling too soon and of holding too long. As Terrance Odean, a behavioral-finance professor at the University of California, Berkeley, puts it: “Investors should diversify emotionally as well as financially.”