Alchemy (Rory Sutherland) -- 3/5
Rory Sutherland writes are book that opposes much of my thinking. I've always though in an analytical left-brained mentality, while Sutherland shows the value of the right-brained creative.
His big point is that data can't always be trusted. The human mind does not run on logic and that won't always be reflected in the data.
He's also a big proponent of testing and experimenting with weird, big ideas. Very true to form for someone from an ad agency.
Pretty ironic that I'm criticizing him for the very thing on which he criticizes most people. I'd be open to other interpretations if others have read Sutherland's books.
Notes
Challenging Coca-Cola
‘ We need to produce a drink that tastes nicer than Coke , that costs less than Coke , and that comes in a really big bottle so people get great value for money . ’ What I’m fairly sure nobody would say is this : ‘ Hey , let’s try marketing a really expensive drink , that comes in a tiny can . . . and that tastes kind of disgusting . ’ Yet that is exactly what one company did . And by doing so they launched a soft drinks brand that would indeed go on to be a worthy rival to Coca - Cola : that drink was Red Bull . When I say that Red Bull ‘ tastes kind of disgusting ’ , this is not a subjective opinion . * No , that was the opinion of a wide cross - section of the public . Before Red Bull launched outside of Thailand , where it had originated , it’s widely rumoured that the licensee approached a research agency to see what the international consumer reaction would be to the drink’s taste ; the agency , a specialist in researching the flavouring of carbonated drinks , had never seen a worse reaction to any proposed new product .
When you demand logic , you pay a hidden price : you destroy magic .
Seems that data is just tracking wrong metrics, or not enough
The human mind does not run on logic
This freedom is much more valuable than we realise , because to reach intelligent answers , you often need to ask really dumb questions .
Rather like gravity , it is a force that nobody noticed until someone put a name to it . I have chosen psycho - logic as a neutral and non - judgemental term .
It’s important to remember that big data all comes from the same place – the past . A new campaigning style , a single rogue variable or a ‘ black swan ’ event can throw the most perfectly calibrated model into chaos .
Irrational people are much more powerful than rational people , because their threats are so much more convincing .
negotiating strategy : being rational means you are predictable , and being predictable makes you weak . Hillary thinks like an economist , while Donald is a game theorist , and is able to achieve with one tweet what would take Clinton four years of congressional infighting . That’s alchemy ; you may hate it , but it works .
If you are a technocrat , you’ll generally have achieved your status by explaining things in reverse ; the plausible post - rationalisation is the stock - in - trade of the commentariat .
Evolution is like a brilliant uneducated craftsman : what it lacks in intellect it makes up for in experience .
In repairing damage caused by alcoholism , drug addiction and marital breakdown , religious belief and practice are a major source of strength and recovery . * Regular practice of religion is good for personal physical health : it increases longevity , improves one’s chances of recovery from illness and lessens the incidence of many killer diseases . Religion feels incompatible with modern life because it seems to involve delusional beliefs , but if the above results came from a trial of a new drug , we would want to add it to tap water . Just because we don’t know why it works , we should not be blind to the fact that it does . *
The Opposite of a Good Idea Can Be a Good Idea
Context Is Everything People are highly contradictory . The situation or place in which we find ourselves may completely change our perception and judgement . As a good illustration of this , one reliable way to lose money is to go on holiday to some exotic locale , fall in love with the local speciality alcoholic drink and decide to import it to your home country . I once heard of someone who fell in love with a banana liqueur in the Caribbean and bought the right to sell it in the UK . On returning home with his suitcase half full of the stuff , he opened a bottle in his kitchen , hoping to impress his friends with his astute decision . Everyone , including him , found the drink practically vomit - inducing ; it had only tasted good when he was in the Caribbean . *
‘ The trouble with market research is that people don’t think what they feel , they don’t say what they think , and they don’t do what they say . ’ *
For a business to be truly customer - focused , it needs to ignore what people say . Instead it needs to concentrate on what people feel .
Biggest progress in the next 50 years likely comes from psychology and design thinking
It seems likely that the biggest progress in the next 50 years may come not from improvements in technology but in psychology and design thinking . Put simply , it’s easy to achieve massive improvements in perception at a fraction of the cost of equivalent improvements in reality .
In general , people are impressed by any visible extra effort that goes into a product : if you simply say ‘ this washing powder is better than our old powder ’ , it is a hollow claim . However , if you replace the powder with a gel , a tablet or some other form , the cost and effort which have gone into the change make it more plausible to the purchaser there may have been some real innovation in the new contents .