Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: harvard business school

  • The case for being a generalist

    As many of you know, I am huge of Malcolm Gladwell. And one of the things that he has popularized through his writing is this idea that we all need to spend at least 10,000 hours specializing on someting in order to become truly exceptional at it. The Beatles did this because of all the time they spent playing music. Bill Gates did this because he was fortunate enough to have access to a computer at an early age. And Tiger Woods did this because his father gave him clubs as a toddler and got him to start practicing the game of golf. But is this truly the rule or the exception?

    In this recent TEDx Talk by David Epstein (embedded above), he argues that we’re actually ignoring one of the less intuitive but more common journeys. For every Tiger Woods, there are many Roger Federers. For every success story that hyperspecialized at an early age, there are countless examples of dilettantes who dabbled — and perhaps struggled — across different fields, only to find their true passion later in life. And so while it may seem like they’re not making progress, or even falling behind in the short term, this may not be the case in the long term.

    All of this reminded me of a post I wrote early last year about finding meaning in life and business. In it, I cited an article from New York Times Magazine recounting the outcomes of Harvard Business School graduates — some of which went on to be happy and wildly successful, and some of which ended up miserable after school. The takeaway here was that non-linear paths, experimentation, and a bit of struggle along the way, is nothing to be ashamed about. In fact, it may be exactly what is needed in order to prepare for today’s increasingly complex and wicked world.

  • The “job” of a McDonald’s milkshake

    Management guru Clayton M. Christensen died this week. Sadly, he was only 67 (leukaemia). A professor at Harvard Business School, Christensen was best known for probably two things: His work on disruptive innovation and his teachings on how to live a more fulfilling life. If you’ve read anything on innovation and disruption, I am sure you’ve come across the work of Christensen. He had a way of explaining things by reframing them. Here is a short video about the “job” of a McDonald’s milkshake. And here is another one where he explains the cycle of disruptive innovations, sustaining innovations, and efficiency innovations. Both videos are worth watching.

  • Finding meaning in life and business

    I started my undergraduate degree as a computer science and physics student. But despite my love of technology (and physics, incidentally), I quickly realized that I didn’t want to end up as a software developer. I was interested in so many other things: art, design, business, real estate, entrepreneurship, cities, and so on. And at the time, I was struggling to remain focused on writing code.

    So by the middle of my second year, I decided to drop every single one of my classes and construct my own program until I figured out what I truly wanted to major in. My course schedule ended up spanning everything from the urbanization of ancient cities to the philosophy of aesthetics. It was a pretty great program if you ask me. But others wondered what I was doing.

    I did, however, already have leanings toward architecture. It felt like the perfect combination of art and science. And so while enrolled in my made up program, I started exploring the possibility of transferring schools and switching majors. Around this time I also started meeting with architects to try and learn more about the profession and see if this is something that I really wanted to pursue.

    I’ll never forget this one lunch. The architect I met with — who will, of course, remain nameless — told me very clearly: “You should do anything besides architecture. If you like drawing become an animator. If you like design, do graphic design. Just don’t become an architect.” Naturally, I came out of that lunch and decided to spend the next seven years getting two degrees in architecture.

    And even though I never became a licensed architect, and almost certainly never will, I would do it all over again given the option. I loved the journey and it is this circuitous journey that led me to where I am today, which is in a highly fulfilling career in real estate. I create new things and those things have the opportunity to improve people’s everyday lives. I’m grateful for that. But the path was anything but clear at the time.

    I am telling all of you this story because I was reminded of it when I read this fantastic article by Charles Duhigg called, Wealthy, Successful and Miserable. It is the story of how Charles, a Harvard Business School graduate, discovered that — despite obtaining boatloads of financial success — many of his classmates actually ended up miserable after school.

    Sure, we all need and deserve basic financial security. And when we don’t have it, money can really buy a great deal of happiness. But there’s lots of research out there, some of which I have written about before, that suggests that happiness quickly plateaus once our basic needs are met.

    As soon as we’re no longer worried about money, we actually crave other things from our paychecks. We want it to also be a source of purpose and meaning. To give one concrete example, the article cites a study about a set of enthusiastic and high performing janitors in a large hospital. What was ultimately found was that they saw their jobs not just as cleaning, but as a kind of healing for the patients. They had purpose.

    But what I found most interesting about the article was the discovery that finding happiness in life and business might require, or be aided by, a bit of struggle along the way:

    And many of them had something in common: They tended to be the also-rans of the class, the ones who failed to get the jobs they wanted when they graduated. They had been passed over by McKinsey & Company and Google, Goldman Sachs and Apple, the big venture-capital firms and prestigious investment houses. Instead, they were forced to scramble for work — and thus to grapple, earlier in their careers, with the trade-offs that life inevitably demands. These late bloomers seemed to have learned the lessons about workplace meaning preached by people like Barry Schwartz. It wasn’t that their workplaces were enlightened or (as far as I could tell) that H.B.S. had taught them anything special. Rather, they had learned from their own setbacks. And often they wound up richer, more powerful and more content than everyone else.

    We are, of course, talking about the “also-rans” at Harvard Business School. They’re no slouches struggling to find work. But I don’t think that negates the point being made here. It can be easy to get caught up doing what we think we ought to be doing when in reality we should be finding meaning in something we hopefully love doing.

  • We are all being manipulated by behavioral economics

    Ever notice how whenever you’re taking an Uber the driver usually gets another fare just before he (Uber drivers are overwhelmingly male) is about to drop you off? That’s on purpose.

    Earlier this month the New York Times published an interactive feature describing how Uber uses behavioral economics (or psychological tricks) to encourage its drivers to work longer, take more fares, and so on.

    Here’s a quick sidebar note about behavioral economics from Francesca Gino of Harvard Business School:

    According to the traditional view in economics, we are rational agents, well informed with stable preferences, self-controlled, self-interested, and optimizing. The behavioral perspective takes issue with this view and suggests that we are characterized by fallible judgment and malleable preferences and behaviors, can make mistakes calculating risks, can be impulsive or myopic, and are driven by social desires (e.g., looking good in the eyes of others). In other words, we are simply human.

    And now back to Uber. One tactic they use is goal setting. People are drawn to goals. This translates into driver messages like this one: “You’re $10 away from making $330 in net earnings. Are you sure you want to go offline?”

    But the experiment I found most interesting from the NY Times piece is the one that Lyft completed where it discovered that showing drivers lost/dropped fares was a far more powerful motivator than showing completed rides. In other words: Look at all this money you’re losing out on by not driving!

    This finding is in line with something I’ve written about a few times before on this blog: prospect theory. One of the tenets of this theory is that “losses hurt more than gains feel good.” We, humans, tend to focus more on the former.

    Of course, Uber is not alone in employing behavioral economics. Every app on your phone is being continuously optimized so that it gets as much of your attention as possible. But where is the line between encouragement and manipulation?

    If you’re interested in this topic, check out this HBR article called, Uber Shows How Not to Apply Behavioral Economics.

  • Innovating amongst the haters

    Whether you’re developing a building, planning transit, starting a company or just trying to do something different, there will always be haters. But pessimists don’t change the world—optimists do.

    I came across a great post last night by venture capitalist Ben Horowitz. It’s called, “Can-Do vs. Can’t Do Culture.” And I think you’d be well served to keep a copy of it on file and read it before every single meeting where you’ll be asked to provide input on something new.

    He’s specifically talking about a growing and discouraging trend of naysaying in the tech community, but the lessons apply more broadly to innovation as a whole.

    I love these lines:

    “The trouble with innovation is that truly innovative ideas often look like bad ideas at the time. That’s why they are innovative — until now, nobody ever figured out that they were good ideas.”

    “From a psychological standpoint, in order to achieve a great breakthrough, you must be able to suspend disbelief indefinitely. The technology startup world is where brilliant people come to imagine the impossible.”

    But the best part of Horowitz’s post is an excerpt from an internal Western Union report (then the largest telegraph provider in the US) recommending that the company not purchase Alexander Graham Bell’s invention (the telephone) and patents for $100,000.

    The Telephone purports to transmit the speaking voice over telegraph wires. We found that the voice is very weak and indistinct, and grows even weaker when long wires are used between the transmitter and receiver. Technically, we do not see that this device will be ever capable of sending recognizable speech over a distance of several miles.

    Messer Hubbard and Bell want to install one of their “telephone devices” in every city. The idea is idiotic on the face of it. Furthermore, why would any person want to use this ungainly and impractical device when he can send a messenger to the telegraph office and have a clear written message sent to any large city in the United States?

    The electricians of our company have developed all the significant improvements in the telegraph art to date, and we see no reason why a group of outsiders, with extravagant and impractical ideas, should be entertained, when they have not the slightest idea of the true problems involved. Mr. G.G. Hubbard’s fanciful predictions, while they sound rosy, are based on wild-eyed imagination and lack of understanding of the technical and economic facts of the situation, and a posture of ignoring the obvious limitations of his device, which is hardly more than a toy …

    In view of these facts, we feel that Mr. G.G. Hubbard’s request for $100,000 of the sale of this patent is utterly unreasonable, since this device is inherently of no use to us. We do not recommend its purchase.

    It’s a classic example of The Innovator’s Dilemma (a book written by management guru and HBS professor Clayton Christensen). Many firms see their businesses disrupted because they blindly stick to the innovation that made them successful in the first place—ignoring what’s coming up on the horizon.

    In the case of Western Union, they could not imagine “telephone devices” in every city. The idea was pure lunacy to them. Of course to us today, they look like myopic fools. We now not only have telephone devices in every city, but a full fledged computer in every pocket. Imagine that.

    Which is why I think it’s important to remember that the way to drive the world forward is—to use Horowitz’s terminology—through hope and curiosity. Suspend disbelief. Think big. Dare to be crazy. Because you’re only crazy until you’re proven to be a genius.