The Cranky Middle Manager Show #312 The Future of the MBA Ken Starkey
The Cranky Middle Manager Show #175 Why Good Managers Do Stupid Things Rom Brafman
Posted on 14. Jan, 2009 by Wayne in General, Podcast
Today Wayne Turmel talks about the curse of middle management- why smart people do irrational things with Rom Brafman, co-author of Sway- the Irresistable Pull of Irrational Behavior. Oh and Mozi (Mo Tzu) and William Gladstone. Irrationality knows no borders or eras……
Rom Brafman, probably wondering what your’e doing listening to the likes of me- a questionable decision but one for which I am truly grateful.
Show Notes
0:00 Welcome to show 175. Today we’re talking to Rom Brafman about SWAY- The Irresistable Pull of Irrational Behavior. This is truly the curse of middle managers everywhere and answers a lot of questions. Plus, it fits my slightly cynical-but-romantic view of the world. So does Mozi (or Mo Tzu), to whom this show is dedicated… and I think it’s a rational choice but after this conversation who knows?
2:45 The quote of the week is from William Gladstone and it’s all about not confusing conviction with being right… arguing doesn’t make you right… unless you’re my wife then OF COURSE I’m wrong…… oh and don’t forget to visit www.crankymiddlemanager.com or support the TPN Pledge Drive
4:24 Welcome Rom Brafman, who with his brother Ori wrote SWAY. Yes, Darwin was an optimist, but what does that mean to managers? It’s critical to understand why we make the decisions we do. There are 4 traps that people fall into:
- Loss Aversion
- The Diagnosis Bias
- Commitment
- Group Dynamics
7:00 Why is “Loss Aversion” irrational? We overreact to losses- and make poor decisions. A Harvard experiment involving $20 is a great example. This is also why marketing budgets get slashed when we need them most.
13:00 The “Diagnosis Bias” is maybe the most chilling thing in the book. What does the NBA draft have to do with hiring managers in Dubai? Only everything….. Hiring someone after one interview is completely irrational, as are most of the ways we identify contenders. Listen and blush.
18:25 Maybe I’m just anti-social but I don’t have much faith in group dynamics. The Russians sure don’t. Dissent is really hard but it’s a manager’s job to allow and encourage it.
25:25 To get the group going, call on the person who will hate your idea most…. talk about irrational but it makes sense. You have to listen to your inner voice. If you feel like something’s wrong- you probably are.
30:00 Rom’s resources:
Don’t let the weasels get you down!