ConceptsNest

  We may assume that humans buy products because of what they are, but the truth is that we often buy things because of where they are . For example, items on store shelves that are at eye level tend to be purchased more than items on less visible shelves. Here’s why this is important - Something has to go on the shelf at eye level. Something must be the default choice . Something must be the option with the most visibility and prominence. This is true not just in stores, but in nearly every area of our lives. There are default choices in our office, car, kitchen and in our living room. If we design for default in our life, rather than accepting whatever is handed to us, then it will be easier to live a better life. In the book Nudge, authors Richard Thaler and Cass Sunstein explain a variety of ways that our everyday decisions are shaped by the world around us . Designing for Default:- . . . Although most of us have the freedom to make a wide range of choices at any given moment,

  The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few"). Other names for this principle are the  80/20 rule , the  law of the vital few ,  or the  principle of factor sparsity . Management consultant Joseph Juran developed the concept in the context of quality control and improvement, naming it after Italian economist Vilfredo Pareto, who noted the 80/20 connection while at the University of Lausanne in 1896. In his first work, Cours d'économie politique, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population. The Pareto principle is only tangentially related to Pareto efficiency. More generally, the Pareto Principle is the observation (not law) that most things in life are not distributed evenly . It can mean all of the following things: The Uneven Distribution What does it mean when we say that things aren’t distributed evenly? The key point is that each unit of wor

The famous French philosopher Denis Diderot lived nearly his entire life in poverty, but that all changed in 1765. Diderot was 52 years old and his daughter was about to be married, but he could not afford to provide a dowry. Despite his lack of wealth, Diderot’s name was well-known because he was the co-founder and writer of Encyclopédie , one of the most comprehensive encyclopedias of the time. When Catherine the Great, the Empress of Russia, heard of Diderot’s financial troubles she offered to buy his library from him for £1000 GBP (in AD 1765….!!) Suddenly, Diderot had money to spare. Shortly after this lucky sale, Diderot acquired a new scarlet robe. That's when everything went wrong. The Diderot Effect Diderot’s scarlet robe was so beautiful, that he immediately noticed how out of place it seemed when surrounded by the rest of his common possessions. In his words, there was “no more coordination, no more unity, no more beauty” between his robe and the rest of his items

  ***Continued from Chapter 01 (Covered previously: What Is Big Picture Thinking, Importance Of Big Picture Thinking, Detail Oriented Or A Big Picture Thinker- The Difference) Link to Chapter 01 Identifying the Different Approaches - Approach Indicators No matter which field we belong to – an aspiring entrepreneur, someone who’s putting together a dream team, or polishing our leadership skills, big picture thinking can help open up, innovative and unexpected creative paths, ideas and solutions. Detail-Oriented Approach Indicators o    We prefer tweaking an existing plan than creating one from scratch o    We think over issues in such great detail that we sometimes miss the bigger picture o    We end up putting down or highlighting almost all notes o    We work towards high-quality work in most areas of our life and struggle with perfectionist tendencies o    We’re organized and/or like routine   Big Picture Approach Indicators o    We can easily spot patterns

  If we were asked to rate our driving ability on a scale of 1 to 10, how would we score ourselves? Maybe we are not amongst the best drivers in the world, but we probably do not believe we are the worst. In fact, we probably rate ourselves as being a little better than the average driver. The problem with this is that most people rate themselves as being a better driver than the average person. This is the Dunning-Kruger Effect, where most people overrate their abilities , with the greatest overestimation coming from those with the lowest skills. Perhaps what’s even more amazing is that the English philosopher Bertrand Russell said this long before the advent of the internet . Today, due to the joys of social media, we are regularly exposed to legions of people who believe they know what they are talking about when they do not. And, indeed, as Russell pointed out, the more clueless these people are, the more confident in their pronouncements they seem to be . People who are bad at som