Performance Ratings Don’t Tell Us What You Think They Do

A significant body of research has demonstrated that each of us is a disturbingly unreliable rater of other people’s performance. The effect that ruins our ability to rate others has a name: the Idiosyncratic Rater Effect, which tells us that my rating of you on a quality such as “potential” is driven not by who you are, but instead by my own idiosyncrasies—how I define “potential,” how much of it I think I have, how tough a rater I usually am. This effect is resilient — no amount of training seems able to lessen it. And it is large — on average, 61% of my rating of you is a reflection of me. In other words, when I rate you, on anything, my rating reveals to the world far more about me than it does about you.  

Time to Recharge

A century ago, economists believed that you could predict how poor someone was by how much he or she worked. The whole point of earning wealth, they argued, was that it afforded you less toil and more downtime. But somewhere in the annals of America’s workaholic culture, putting in inhuman hours at your job became a status symbol, especially for the elite. 

You could argue these executives are doing what they love, and that meaningful work provides a real sense of fulfillment. But all that industriousness probably isn’t making them more creative or productive. Some of history’s most accomplished figures across science, math, and literature—people like Charles Darwin, Henri Poincaré, and Charles Dickens—insisted on working just four or five hours a day. The rest of their mornings and afternoons were filled with long walks and other leisurely pursuits that recharged their mental batteries and gave rise to creative ideas. 

Studies of exceptional performers and athletes reveal similar work/rest patterns, with just a few hours a day of serious, focused effort.  

Carolyn O’Hara writing in The Week Magazine

Turning happiness into a management tool

A large American health-care provider, Ochsner Health System, introduced a rule that workers must make eye contact and smile whenever they walk within ten feet of another person in the hospital. Pret A Manger sends in mystery shoppers to visit every outlet regularly to see if they are greeted with the requisite degree of joy. Pass the test and the entire staff gets a bonus—a powerful incentive for workers to turn themselves into happiness police. Companies have a right to ask their employees to be polite when they deal with members of the public. They do not have a right to try to regulate their workers’ psychological states and turn happiness into an instrument of corporate control.

Companies would be much better off forgetting wishy-washy goals like encouraging contentment. They should concentrate on eliminating specific annoyances, such as time-wasting meetings and pointless memos. Instead, they are likely to develop ever more sophisticated ways of measuring the emotional state of their employees. Academics are already busy creating smartphone apps that help people keep track of their moods, such as Track Your Happiness and Moodscope. It may not be long before human-resource departments start measuring workplace euphoria via apps, cameras and voice recorders.

Schumpeter in The Economist

Career Choices

Find what you are good at. Find what you have a passion for doing. People will pay you good money to do the things that fit within both circles. No one will be willing to pay for your "C minus" work (or not very much). So forget about bringing your "fours" up to "sixes" (on a scale of one to ten). Focus on getting your "eights "up to "nines" and your "nines" up to "tens." (A bit of an oversimplification but you get the idea).

Stephen Goforth

Disruptive Innovation

Innovation distance explains why so many of those who turn an industry upside down are outsiders, even outcasts. To understand this point we need to grasp the difference between the two types of innovation. Sustaining innovations are improvements that make the product better, but do not threaten its market. The disruptive innovation, conversely, threatens to displace a product altogether. It is the difference between the electric typewriter, which improved on the typewriter, and the word processor, which supplanted it.

Another advantage of the outside inventor is less a matter of the imagination than of his being a disinterested party. Distance creates a freedom to develop inventions that might challenge or even destroy the business model of the dominant industry. The outsider is often the only one who can afford to scuttle a perfectly sound ship, to propose an industry that might challenge the business establishment or suggest a whole new business model. Those closer to - often at the trough of - existing industries face a remarkable constant pressure not to invent things that will ruin their employer. The outsider has nothing to lose. But to be clear, it is not mere distance, but the right distance that matters; there is such a thing as being to far away.

Tim Wu, The Master Switch

Loose, Messy and Chaotic

Tight ways of thinking and working, while being superficially attractive and comforting, don't work. They have been built on the illusion of control. This illusion – propagated by legions of consultants, economists, market researchers and other purveyors of empirical snake oil – has actually made businesses less capable of embracing the complex realities of the modern world.

Agility, flexibility, a willingness to exercise judgement and an ability to improvise will become the defining characteristics of successful institutions in the next decades. This means fighting the instinct to solve every problem through rules and regulations and recognising the limitations of long-term planning and the painfully slow nature of most internal decision-making processes.

It means accepting the need to operate in real time and making the organisational and cultural changes necessary to achieve it. And most importantly, it means building a strong, self-sustaining, trusting organisational culture rather than in investing in yet more process and bureaucracy.

The future is loose, messy and chaotic: now is the time to embrace it.

Martin Thomas, Loose: The Future of Business is Letting Go