Smarter faster better

Google's People Analytics group embarked on an extensive study known as Project Aristotle, aiming to uncover the secrets behind the success of some teams within the company.

Despite analyzing over 180 teams, initial findings were inconclusive. However, a breakthrough came when researchers shifted their focus to the internal norms of teams, the unspoken rules governing behavior.

This new angle revealed two critical behaviors shared by all high-performing teams. Firstly, these teams ensured equitable participation during discussions, allowing every member to voice their opinions without fear of being overshadowed or ignored. Leaders played a crucial role in facilitating this environment by ensuring everyone had the chance to contribute.

Building mental models and telling yourself a story about what to expect can significantly enhance focus and decision-making. This concept was dramatically illustrated in two aviation incidents. On May 31, 2009, Air France Flight 447 from Rio De Janeiro to Paris encountered a critical issue when its Pitot tubes froze at 32,000 feet, leading to autopilot disengagement. The pilots, confused by the faulty readings, inadvertently caused the plane to climb and ultimately crash into the Atlantic Ocean, resulting in the loss of all on board. It took two years to recover the data recorders and piece together the tragic events.

In contrast, Qantas Airways Flight 32, after departing from Singapore for Sydney, suffered a severe engine failure that damaged multiple systems. Despite facing a situation where almost all the plane's major systems were compromised, the pilots, led by Richard de Crespigny, decided to focus on what was still operational. De Crespigny drew upon his experience with smaller aircraft, visualizing the Airbus A380 as a giant Cessna to simplify the crisis. This mental model helped them maintain control and safely land the heavily damaged plane, marking it as the most damaged commercial airliner to ever land safely.

In the mid-20th century, General Electric (GE) pioneered the practice of setting written goals, evolving from simple annual letters to the boss into a sophisticated system incorporating the SMART criteria.

This approach, focusing on Specific, Measurable, Achievable, Realistic, and Timely objectives, initially helped employees target and complete tasks efficiently. However, it soon became apparent that this method led to a focus on easily attainable tasks, often sidelining more significant, impactful goals.

To address this, GE introduced "Work-Outs" in the late 1980s, encouraging employees to think beyond immediate tasks and consider long-term, ambitious objectives. Steve Kerr from the University of Southern California highlighted the importance of balancing short-term achievements with the freedom to dream big, noting that a constant focus on achievable results limits one's ability to set lofty goals.

In 1994, two Stanford Business School professors began a study on how companies can foster an atmosphere of trust. They identified five prevalent corporate cultures: the "star" model, focusing on a few high performers; the "engineering" model, dominated by technical problem solvers; the "bureaucratic" model, characterized by detailed planning and execution; the "autocratic" model, centered around a single leader; and the "commitment" model, aimed at building a strong corporate culture.

Over a decade, they observed that while the "star" model had notable successes, it also faced many failures. In contrast, companies with a "commitment" model consistently outperformed others, showing fewer internal rivalries, reduced management layers, better customer understanding, and higher trust levels.

James Baron, a professor at Stanford Business School, noted that venture capitalists favor "star" firms for their potential for significant returns. However, for entrepreneurs focused on a single company, a commitment-focused culture is more advantageous, primarily because it helps retain valuable employees. A prime example of this approach is Toyota's lean production system, which empowers even entry-level workers to halt production if they spot a problem, encouraging them to contribute to solutions.

Improving decision-making skills hinges on understanding probabilities and envisioning various outcomes. By exposing ourselves to both successes and failures, we can refine our intuition.

Humans have a remarkable ability to take a fragment of information and extrapolate future events from it. For instance, without consulting actuarial tables, we intuitively know the likelihood of death is greater for a nonagenarian than for a toddler.

Mathematicians reference Bayes' rule to explain this phenomenon. It suggests that even with minimal data, we can predict the future by making educated assumptions and adjusting them based on our observations. Humans excel at this, often outpacing computers in making quick, accurate predictions. Consider estimating a movie's future box office earnings based on its initial performance; humans can often guess within a 10 percent margin of the actual outcome, a task that is more challenging for algorithms.

Creativity often emerges from the art of repurposing existing ideas into new contexts, a process that can significantly enhance innovation. This concept suggests that by becoming an 'idea broker,' one can unlock a higher level of creativity. It involves paying close attention to personal experiences and emotions, embracing moments of creative desperation, and actively seeking out alternative solutions.

While creativity itself cannot be boiled down to a simple formula due to its inherent reliance on novelty and surprise, the process leading to creative outcomes can indeed be structured to foster an environment where creativity thrives.

Charles Duhigg emphasizes that creativity is a process that can be understood and harnessed, allowing anyone to enhance their innovative capabilities. This involves leveraging our unique experiences, disturbances, and tensions to view old ideas through new lenses. History is replete with examples of this approach, from Thomas Edison's application of electromagnetic principles across various industries to modern finance's innovative pricing models for stock derivatives, which combine seemingly unrelated mathematical concepts. Similarly, the design of modern bike helmets was inspired by the durable structure of boat hulls.

To enhance our learning capabilities and become more adept at absorbing new information, it's essential to engage actively with the material we encounter.

One effective strategy is to jot down notes by hand. A study from Princeton and UCLA in 2014 revealed that individuals who took notes manually retained significantly more information than those who typed their notes. This suggests that the tactile process of writing can deepen our understanding and retention of new ideas.

Additionally, applying what we've learned through experimentation can further cement our knowledge. For instance, tracking one's weight on graph paper when trying to lose weight can make the individual more conscious of their dietary choices, illustrating how practical application of knowledge can lead to more profound learning experiences.