leading and managing

Carter Racing takeaways

Groups ignore data when under pressure. groupthink overrides critical thinking. Groups do not always make better decisions than individauls

carter racing what went wrong

they also should have got data from the successes, not just focused on the dependent variable

why do groups make bad decisions

1. motivated interpretation of ambiguity (think the best)

2. escalation of commitment

3. 3. overconfidence from past successes

.two modes of thinking

system 1 & system 2

system 1 thinking

like F1 its fast and effortless, pattern recognition

system 2 thinking

slow and deliberate

what system thinking do you use in a rush

system 1

framing effect

tendency to evaluate risk differnelty based on how its presented

• evaluate options against a reference point

why did the challenger launch

the data were incomplete

ambiguity was interpreted optimistically

sunk costs increased the comitment

past successes inflated confidence

system 1 dominated under pressure

stages of team development

1. forming

2. storming

3. norming

4. performing

5. adjorning

Importance of team development

¾ of accidents occur on the first day of pilot and copilot working together

psychological safety

people dont express dissent because they fear psychological safety.

when are the best times to let people express disent

periods of tranition

Key takeaways from everest

1. Psychological safety - younger guides did not feel confident enough to seak up

2. Sunk cost theory - kept going down a dangerous path because they were already invested

3. Normalization of deviance - ignoring small safety warnings because they hadn’t caused disaster in the past

4. cognitive limitations - in stressful situations you cant make rational decisions

bigger teams are better

no

as groups expand…

members spend more time on coordination chores rather than the actual work

what is the ideal team size according to the why big teams are bad reading

4-6

amazon requires

teams stay small enough to be fed by 2 pizzas

cognitive overload

caused by big groups, mental exhaustion for amitaining relationships and info flow in large groups

Thomas green

28 yo rising starr at company that was rapidly promoted. His new boss wanted to promote someone else, so started off on the wrong foot. Green and Davis clashed over work styles. Davis (boss) was very structured, Green was charasimatic and go with the flow

How to build your network

• paul revere and william Dawes

• success in netowrking is based on ones role as a broker

• Networks provide

  • private informaiton

  • diverse advantages

  • power

• connecting groups is more important than being on top hierarchically

subordinates must understand

your bosses goals and pressures, strengths and weaknesses, work style, and communication preferences

Nasa challenger explosion

• incomplete data

• abiguity interpreted optimistically

• sunk costs increase commitment

  • system 1 thinking dominated under pressure

system 1 thinking

fast and effortless (pattern recognition) like F1 - fast

system 3 thinking

slow and deliberate

framing effect

even if its the same odds, framing can make u pick differently

we evaluate options against a

reference point

groupthink

congnitively ethical to prefer a consensus over disagreeing

To prevent decision disasters

• Be aware of framing effects

• Explicitly discuss sunk costs

• Encourage dissent

• Examine all the data (failure and success)

• Slow down the decision process

stages of team development

1. forming

2. storming

3. norming

4. performing

5. seperating

importance of team development

73% of airplane accidents take place when its the first day a captain and first officer were flying together

constructive dissent

• people are not going to speak up if they do not feel psychologically safe

When to encourage psychological safety

in periods of transition and during early team development

Norms

informal rules that govern behavior in social contexts

why do we inform to norms

1. social acceptance

   1. information— desire for social acceptance is greater than information

Roles

parts people play as members of social group. sticky and powerful. come with socially prescribed behaviors

2 main varieties of conflict

1. relationship conflict

2. task conflict

relationship conflict

• personal disagreements and interpersonal friction harms performance

task conflict

• is functional

• disagreements regarding the way work is done

  • improves performance for non-routine tasks

size

• larger teams have greater resources, but suffer coordination costs

• smaller teams: speed, individual performance, overall performance

• larger teams: diversity of inputs, fact finding

Social loafing

How to prevent

• individual accountability

• keep teams smaller when possible

  • increase intergroup competition

cohesiveness

• degree to which group members feel like a team and are motivated to stay in the group

  • Not good when it leads to groupthink: pressure for consensus takes over critical thinking

Best reward system:

a mix of individual and shared rewards

contagion

spread of emotions, attitudes, and behaviors among team members, often uncionciously

Leaders moods have a

disproportionate impact on team performance

disruptive negotion

zero sum & people have directly competing intrests

BATNA

• your best course of action if the current plan falls through

• you should never accept a plan worse than your BATNA

  • your #1 source of power

Reservation price

the minimum you would need to from your present deal in order to be doing as least as well as you would be with your batna.

should always be concealed from other party

target price

best case scenerio. Set at the other persons BATNA

Zone of possible agreement

the space between the sellers reservation and the buyers reservation, how many reources there are that can be divided among parties

negative barganing

its best to cnacel as soon as you find out its negative barganing becuase you would both be better with your BATNAs

Should you make the first offer?

YES! — these strongly coordinate with final offers

Should you accept the first offer??

NO! - people want you to negotiate

How to tactfully reanchor

never use language that legitimzes an unreasonable first offer

1. pivot (crack a joke)

2. let them save face (must be looking at different nujmbers)

3. provide counter ( w/ rationale)

elaboration likelihood model

how you should shape the message because people do not always engage in deep thinking

They only engage in deep thinking when they have the

ability & motivation to do so

Two paths to persuasion

central and peripherial

central

when people are locked in. people are persuaded only if strong and well rounded. cant get away with not being clear.

peripherial

people rely on surface level cues, not deep thinking. persuaded by features like appearances and not arguments. ex) medicine compercials having dogs.w

which method should you use if you can also control the people

central becuase it is more durable in changing attitudes

channel

media richness model. a channels richness should be aligned w/ activity. use rich mediums when the situation is complicated and requires more back and forth.

evaluative feedback

asses past performances

developmental feedback

focuses on how to improve.

Positive vs negative feedback

should be 5 positive : 1 negative

who benefits most from positive feedback

novices

who benefits most from negative feedback

experts

art of persuasion

tiger woods apple selling for 36,000

Determinants of liking

1. similarity

2. compliments

3. cooperation

Reciprocity

people feel obligated to return favors.

why companies give u address labels and then ask for donations.

why servers give u mints

Door in face phenomenon

• can i go to disney. no. can i get a toy.

  • kid is more likely to get a toy than if he would have just asked for this frist

consistency

verbal commitment and pledges to an action increase likelihood

authority

people are more likley to comply with a request made by someone who has real or imagined authority (clothing, job title

consensus

salting the tip jar

key lessons from Green case

1. align expectations

2. Build political awareness

3. maintain communication channels/relationships

lost at sea

groups are better at solving problems

rationalize w ech other and eliminate mistakes

Broker

connects groups. knows more people and has stronger network even if lower status.

most job opportunites come from

weak ties (not close personal connections)

refernt power

charisma/likeability

legitimate power

position based

reward power

control over resources

coercive power

ability to punish

expert power

knowledge/skill

Power is…

not based on heirarchy

not fixed (situational and relational)

How power affects individuals

• less inhibition (they will turn off the fan)

• reduced empathy

• more egocentrical (E on forehead)

  • moral hypocricy

How powerlessness affects individuals

1. highetened vigilence

   1. chronic stress and negative health

2. reduced action

   1. hesitation to act, even when beneficial

3. self silencing

   1. avoiding dissent due to fear