Tuesday, August 16, 2022

100 Rules for living (lot of econ in these)

5. “Use models.” — Don’t recreate the wheel. Learn from others and save time. 

12. “Set goals. And work backwards.” — Use big goals and small goals. Milestones can expose whether you undershot or overshot.

19. “Think probabilistically.” — Think grey. Not black and white. This comes from Annie Duke and her book, Thinking in Bets. Assign percentages to your beliefs instead of speaking in absolutes.

20. “Short engagements. Test situations.” — Test partnerships and commitments with trial runs. Build a small project together before going all in.

21. “Red team. Blue team.” — Approach decisions as a critic and a supporter. Answers often reveal themselves.

25. “Use simple language. Few syllables. Short sentences. Short paragraphs.” — Simplicity is hard to achieve. Work hard so your audience doesn’t have to.

26. “Our brains are built to enjoy stories.” — Stories help information stick.

28. “Don’t argue. Bet.” — Test belief through sacrifice not words.

29. “Appeal to interest, not reason.” — We don’t care about what makes sense. We care about what makes sense for us.

34. “The more you understand incentives, the less you take things personally.” — Incentives drive behavior. Sometimes it’s not personal. Change incentives instead of trying to change people.

41. “Negotiation and business are about alternatives.” — Good decisions are relative. It’s about choosing the best option among alternatives. Know your BATNA.

47. “If you decide to only do what works. You’re leaving a lot of opportunity on the table.” — Experiment.

54. “Keep it simple.” — Stay away from unnecessary complexity. “Everything should be made as simple as possible, but not simpler.” -Einstein

57. “Start with problems. Not solutions.” — Start by studying the problem instead of offering solutions. Study the lock before you make a key.

67. “Copy businesses that are working. These are formulas. Steal and improve them.” — Find a proven market. Study the problem. Be different or better or both.

95. “Get the incentives right.” — It’s the most important thing in management. You get what you reward. Align incentives.

HT:  Donna

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