SPO Notes from Readings

Session 1

Why People Lose Motivation

Brain’s seeking system creates natural impulse to learn new skills and do challenging, meaningful tasks
- When activated, we receive dopamine and feel purposeful, zestful
- As a leader you can provide nudges to trigger seeking systems in employees:

1. Encourage them to play to their strengths thru self-expression

o Prompt ppl to think about their best traits  activates seeking systems
o e.g. allow employees to create own titles

2. Encourage experimentation in safe zone with play and supportive social bonding
o Play stimulates seeking system and reduce fear, anxiety and creates intrinsic
motivations that unleash creativity
o Can frame change and innovation as chance to learn + experiment (not as a
performance situation)

 Helping employees personalise purpose of their work

o Works best when employees can interact directly with people their work affects
o e.g. help employees see cause and effect b/w inputs and outputs and experience how
their contributions help other ppl

Session 2

Judgment Under Uncertainty – Tversky & Kahneman

Representativeness Heuristic

- Probabilities are estimated by the extent to which something resembles another thing
- People estimate the probability of something based on the degree to which it resembles (or is
representative of) a known situation
- When we're trying to assess how likely a certain event is, we often make our decision by assessing
how similar it is to an existing mental prototype

Features
(i) Insensitivity to prior probs of outcomes - people ignore base-rates
e.g. If you have to determine if Steve is a farmer or librarian, assign diff probs despite knowing
relative proportion of farmers and librarians
(ii) Insensitivity to sample size
e.g. assign similar probability in spite of diff sample sizes
(iii) Insensitivity to predictability – even predictability is limited, ppl make extreme predictions
(iv) Misconceptions of chance
e.g. Thinking HTHTHTT is more random than HHHTTTT
 e.g. Gambler’s fallacy – people believe after observing long run of red on Roulette Wheel, black
is due
(v) Misconceptions of regression towards mean – usually things fluctuate around 2 ends of a
spectrum but people think the most extreme versions are more representative
(vi) Illusion of validity – unwarranted confidence in the prediction that given inputs match predicted
outcome

Availability Heuristic

- When people estimate the likelihood of an event based on ability to recall similar events

Features
(i) Biases due to retrievability of instances – size of a class is judged by availability of its instances
(ii) Biases due to effectiveness of search set
(iii) Biases of imaginability
(iv) Illusory correlation

Adjustment and Anchoring

- Ppl make estimates by starting from an initial value that’s adjusted to yield final answer, but
adjustments are typically insufficient

Features
(i) Insufficient adjustment
(ii) Biases in evaluation of conjunctive, disjunctive events
(iii) Anchoring in assessment of subjective prob distributions

Stop Doubling Down on Failing Strat – Vermeulen

Escalation of Commitment
- Holding on too long to a strategy that was once successful

Reasons
(i) Sunk Cost Fallacy – when making investment decisions, ppl factor in costs already incurred that
won't be recovered if they abandon a project (but rational decision makers should only look at
future costs)
(ii) Loss aversion – ppl might prefer to allocate more resources to continue with a course of action
despite low returns if withdrawing from a course of actions  certain, immediate losses
because they think it’s possible to turn around the situation
(iii) Illusion of control – ppl over-estimate ability to control future
(iv) Preference for completion – ppl have bias towards completing tasks e.g. seeing a project thru
(v) Pluralistic ignorance – dissenters believe they alone have reservations about a course of action
so remain silent ( everyone agreeing to a decision no one believes in)
(vi) Personal identification and reputation – withdrawing from a commitment may  perceived loss
of status or threat to identity

All 6 together  consensual neglect: decision makers ignore events that undermine current
strategy and double down on initial decision to justify prior actions
Solutions
(i) Set decision rules
(ii) Pay attention to voting rules
(iii) Protect dissenters
They might perform tacit calculus (weighing risks of speaking up against course action and being
dismissed vs. long term consequences of not speaking up)
So: provide anonymous feedback channels, deploy larger teams, calibrate diversity, model
doubt
(iv) Expressly consider alternatives
(v) Separate advocacy and decision making – give responsibility for strategic move to ppl who didn’t
advocate/initiate a move
(vi) Reinforce anticipation of regret
Make people think about possible future regret over not making a diff decision
Can be done by taking temporal perspective (prospective hindsight – moving backwards from a
hypothetical future event) or taking an inter-personal perspective

Session 3

Harnessing the Science of Persuasion – Cialdini

Six fundamental principles of persuasion

Authority
Meaning: ppl defer to experts
Application: expose your expertise; don’t assume it’s self-evident

Scarcity
Meaning: ppl want more of what they can have less of
Application: highlight unique benefits and exclusive info, inform ppl of closing windows of opportunity

Liking
Meaning: ppl like those who like them
Application: uncover real similarities and offer genuine praise

Reciprocity
Meaning: ppl repay in kind
Application: give what you want to receive

Social Proof / Follow the Crowd

Meaning: ppl follow the lead of similar others
Application: use peer power whenever available because persuasion can be extremely effective when it
comes from peers

Consistency / Commitments
Meaning: ppl align with their clear commitments
Application: make commitments active, public, voluntary
 Session 4

Before you make that Big Decision…

 Session 5

Making Dumb Groups Smarter

Why Do Errors Occur?

1) Informational signals: Members might receive incorrect signals from others

2) Reputational pressures: Ppl may silence themselves/change their views to avoid penalty

Consequences of Poor Decisions by Groups

Amplification of Errors
 Errors are amplified because of existing heuristics grps can’t overcome and instead compound:
- Planning fallacy, overconfidence, availability, representativeness, egocentric bias, sunk cost
fallacy, framing effects

Cascade Effects
 Grps cascade to the wrong answer
 Can be informational (ppl silence themselves to bow to info shared by others) or reputational
(ppl silence themselves to avoid criticism)
 “Associative blocking” or “collaborative fixation”: strong ideas block the recollection of other
information

Groupthink

Reasons
1. Info signals – ppl hear arguments by other members, and if there is an initial predisposition,
hearing more arguments in favor of that position skews overall grp beliefs
2. Reputation – ppl want to be perceived favorably
3. Confidence, extremism, corroboration by others – more confident, less moderate
 Imp to hear perspectives of cognitively peripheral ppl – those whose knowledge is held by many
other grp members rather than just cognitively central ppl

Solutions
 Ensure: grps aggregate info of members and don’t let faulty informational signals + reputational
pressures get in the way
1. Silence the leader
2. Prime critical thinking (triggering associations to affect ppl’s choices)
3. Reward grp success
4. Assign roles – ppl can bring distinctive info
5. Appoint a devil’s advocate
6. Establish contrarian teams i.e. Red Teaming
7. Delphi method: ppl offer estimates, then repeat (with grp discussions) until particips converge
on an estimate

Session 7
Why Diversity Programs Fail

Effective programs don’t police managers’ decisions but engage ppl towards working for diversity,
increasing their contact with women/minorities, and tap into their desire to look good to others

Diversity Training
  Adverse effects if they use negative messages
 Compulsory courses  anger, resistance
 Voluntary training has better response

Hiring Tests
 Mandatory hiring tests assess skills of candidates for frontline jobs
 But managers might ignore the results and amplify biases by ignoring mistakes of one grp and
cracking down on another’s

Performance Ratings
 Used to ensure: managers make fair pay/promotion decisions
 But tend to lowball women/minorities

Grievance Procedures
 Aims to identify/rehabilitate biased managers
 Systems allow employees to challenge decisions for pay, promos, and termination
 But some managers belittle/demote employees who complain and might even drop their guard
and be more biased – thinking the system is fair and will catch any unfairness
 Better solution: flexible complaint system with formal hearing and informal mediation, which
can reduce retaliation

Tactics for Getting Managers on Board

1. Engage managers in solving the problem
 Leverage ppl’s aversion to cognitive dissonance
 Prompt ppl to act in ways that support a particular view so opinions shift towards that view
o College recruitment programs: managers who participate  more committed to
diversity and diverse managers eventually increase
o Mentoring: managers who mentor others come to believe their mentees must be
worthy

2. Increase managers’ contact with ppl from diff grps

 Contact b/w grps can reduce bias if they are working as equals (e.g. in self-managed teams)
o Rotations and cross-training also expose dept heads & trainees to wider variety of ppl

3. Encourage Social Accountability for Change

 Addresses ppl’s need to look good to others
o Diversity task forces look at diversity numbers for whole company to figure out what
needs attention
o Diversity managers can ask Qs leading to more fair behaviour
When Stereotypes Collide

For fairer hiring:

1. Accept the reality that stereotypes exist
2. Judge on specific criteria
3. Document bias thru data

Session 8

How Top Talent Uses Networks

 Big networks can diminish performance, productivity

 Rising stars should adopt thoughtful approach that extends beyond developing bridging ties
because they can get derailed by not attending to networks
 3 imp features of high performers’ networks:

1. STRUCTURAL
HPs tend to position selves at key pts in network and leverage network better when implementing plans

2. RELATIONAL
HPs invest in relationships extending their expertise and help avoid learning biases + career traps

3. BEHAVIOURAL
HPs value networks + engage in behaviours leading to high-quality relationships and not just big
networks

Importance of Bridging Positions in Networks

HPs hold network positions that bridge otherwise disconnected clusters of ppl

Bottleneck Trap
Rising star can lead to bottleneck overloaded with relational demands
- Force others to rely on them by not delegating tasks/decision rights
- Use their time inefficiently + hold up work/innovation
- Solutions: Rising star should allocate authority to make some decisions to a less overloaded
person so they have time to pursue value-added work

Formalist Trap
Rising star can rely too heavily on org’s formal structure of how work gets done and fail to understand
how to leverage informal networks
- Miss important levers of influence by not exploiting informal networks
- Solutions: identify brokers, work thru opinion leaders

Disconnected Expert
 Person might have skill gaps based on tech knowledge and decision-making abilities

Biased Learner
 Person allows cert voices to disproportionately influence learning, decision-making
Surface Networker
 Focus on size of networks, not depth; don’t develop trusted reciprocal ties with peers
 Should instead focus on learning; should balance what they ask for and what they give

Chameleon
 Ppl who tailor actions to fit into whatever grp they are with at the time
 Absorb sometimes conflicting interests, values, personalities and are unable to achieve
necessary coordination, alignment

Relationships that Extend Individual Expertise and Avoid Learning Traps

 Homophily: tendency to seek out those demographically similar to ourselves
- Good to instead connect to ppl with complementary expertise
- Important bridging ties:
Those that bridge hierarchical levels
Those that bridge functional, org lines
Those that bridge physical distance

Attitudes and Networking Behaviours associated with High Performers

- Invest well in relationships by reaching out before they have a need, listening to others,
probing their needs, giving them info/resources, creating value, cultivating trust
 Session 9

Being the Boss in…

Managers fail to distinguish b/w 2 dimensions of leadership culture:

1. Authority: how much attention we pay to status of person and how much respect we pay to
status i.e. Hierarchical vs. Egalitarian
2. Decision-making: who makes decisions, and how i.e. Top-Down vs. Consensual

Can make a 2x2 matrix

Session 10

Three Rules of Epidemics – Gladwell

Law of the Few

- A few exceptional ppl are responsible for a trend

Stickiness Factor
- There are ways to make a contagious message memorable (thru relatively simple changes in
presentation / structuring of info)

Power of Context
- Context and environment matter

Leading Change – Kotter

Transformation is a process with stages: