Run on East Side Bank, N.Y. 1912 February 16. Bain News Service via Library of Congress.

Why Boards Go Wrong: “It’s the Group, Stupid!”

E. Forrest Christian Governance, Reviews - Articles Leave a Comment

Back in 2005, the Brooklyn Law Review published the papers from the Corporate Misbehavior by Elite Decision-Makers Symposium, which Brooklyn Law School apparently held. Harvard’s Rakesh Khurana & Katharina Pick contributed a social-psychological look at how boards of directors of corporations can go wrong through social or group processes and how the current spate of “control the directors” changes have …

Stack of golden George Washington dollar coins,. (c) 2007 Bill Koslosky, MD (CC BY 2.5)

McKinsey on how companies spend money

E. Forrest Christian Decision-making, Reviews - Articles Leave a Comment

From “How Companies Spend Their Money” [PDF] (McKinsey Global Survey) A survey of executives from around the world highlights how frequently — and why — a company’s resource allocation decisions go wrong. Companies start off well, respondents say: senior executives are heavily involved in these decisions and routinely assess the prior performance of business units and the value creation protential …

7 Decision Making Approaches: EMPIRICIST

E. Forrest Christian Decision-making, Reviews - Articles, Warren Kinston 4 Comments

Empiricists love data. Lots of data. Warren Kinston and Jimmy Algie posited that there are seven, and only seven, unique mindsets or approaches humans use when making decisions about action. This is conscious decision, not simply unconscious reaction based on stimula-response.I’ve got the full article available, although the quality is wanting. (See [2]) Warren Kinston and Jimmy Algie weren’t a …

Epipremnum pinnatum (refused entry sticker on box). (c) Forest & Kim Starr. (CC BY 3.0)

Why the iPhone Design Wouldn’t Have Flown With Another Firm

E. Forrest Christian Reviews - Articles, Underachievers Leave a Comment

SmartPlanet’s Andrew Nusca interviewe MAYA Design’s chief, Mickey McManus. McManus had some interesting things to say about making things so easy that they were intuitive, so easy that the user becomes “smug”:

We have a graph we write out. On one end is the customer that apologizes or make excuses. At the other end of the spectrum is smug. We want users to be smug. We’ll paper prototype it, then we’ll Wizard of Oz prototype it. After a few iterations, they’re smug. “This is so obvious, I don’t need to say it out loud.” And we want that.

If you think about it, this is something that Hidden High Potentials do regularly. (More on that below.) What’s even more interesting is his discussion of the Command & Control for the US Army. [full post]

Aberdeen Angus im Gadental an den Steilhängen des Muttawangjoch oder auch Mutterwangjoch genannt. Im Hintegrund die Südflanke des Feuerstein 2271m. (c) Böhringer Friedrich (CC BY-SA 3.0 AT)

Optimists Get Better At Predicting Performance Over Time

E. Forrest Christian Reviews - Articles 2 Comments

The old research has been pretty consistent: optimists are lousy at predicting what will really happen because they always assume “happy day”. But no one has ever seen how optimists predictions change as they get more information.

Until now.

A recent study (currently a working paper) tracked MBA students performance predictions across semesters…. [Full post]

Man drawing complex diagrams on whiteboard. (c) alphaspirit. Shutterstock.

Young Stars vs. Systematic Innovators

E. Forrest Christian Reviews - Articles, Reviews - Books, Underachievers Leave a Comment

The Young Genius vs. Old Master ideas of David Galenson, professor of Economics at the University of Chicago. Probably a pretty straight-forward idea but one that troubles the fields of art and economics both. Hidden high potentials are often systematic innovators, and since these are less valued in our society, there are interesting implications.