Category: Book Reviews

Wikipedia defines cognitive bias as “systematic pattern of deviation from norm and/or rationality in judgment”. And the list of biases in the same article is impressive. Humans are quite irrational and our judgement does not always follows rules of logic. The one cannot remove biases and mental shortcuts – it is not possible to override thousands years of human brain evolution. But, the one can detect situations where biases are triggered and stay alerted.

Daniel Kahneman got his Nobel prize back in 2002 for his prospect theory that basically created behavioral economics. The theory also challenged assumption that Humans are economically rational species. Here it is in a nutshell:

• Faced with a risky choice leading to gains, individuals are risk-averse, preferring solutions that lead to a lower expected utility but with a higher certainty
• Faced with a risky choice leading to losses, individuals are risk-seeking, preferring solutions that lead to a lower expected utility as long as it has the potential to avoid losses

A book Thinking, Fast and Slow provides detailed explanation how this theory applies to various situation in our daily life and how it impacts our decision making process. (Spoiler: it impacts a lot and we not even aware about it). However, this is just a small part of knowledge that I got from the book.

The book starts with a description of simplified version of a human “thinking” mechanism that consist of two systems that play different roles in cognitive process. It explains how associative machine works, how cognitive ease derails us from original question and makes us to substitute it and etc.

Then the book goes into details of selected biases and heuristics – availability, anchoring, stereotyping, framing and others. There are a lot of mechanisms that allow us jump to conclusions without mental effort and the book gives overview how they work and how small change in a question’s frame can sway an answer to an opposite direction.

The author concentrates a lot on two important topics – overconfidence and choice. I was surprised that there are numerous studies which clearly demonstrate how bad we are in predicting the future and how often experts’ intuition is wrong. The book also gives an explanation how overconfident view, planning fallacy and optimism are important drivers for economy.

Choice, risk assessment, value assignment are parts of prospect theory and covered in the book as well. These chapters helped to understand my own thinking process when it comes to risky decisions and gambling. It also gave an insight why the same outcome may have different psychological effect depending on the context and framing.

The last part of the book is about two selves – experiencing self and remembering self. This part gave me rational explanation why our memories of events are more important than actual experience we had during the events.

After finishing the book I became even more critical to my judgements and intuition. So, I am more prepared now to employ critical thinking when it is necessary. There are several mechanisms that I will keep for my professional life – pre-mortem to fight planning fallacy, outside view and base rate. Read the book and I am sure you will find it useful too.

Overall, 5 out 5. Thinking, Fast and Slow is a perfect book for everybody. I highly recommend it.

Check out my other book reviews!

Summer break is over and I am back to my favorite post type – book reviews. This time I want to share my thoughts about practical guide how to create, maintain and evolve a technical blog. This book covers all steps – plan, build, promote and scale.

Writing is not easy. Formulating ideas in a concise and clear matter requires efforts and time. But even if you are great in writing it is not enough to make you voice heard and opinions spread. There are around 600 millions blogs on the Internet today but only 32 millions are active. It means, that blogging is “easy to learn, difficult to master” thing.

When I decided to start my blog, I had close to none knowledge about how to do it. I knew how individual pieces of technology enable and simplify blogging, but I never tried to create one on my own. So, I had to find “installation manual”. Luckily, I came across Technical Blogging by Antonio Cangiano book that helped me tremendously.

The book focuses specifically on tech or close-to-tech blogs that distinguish it from thousands of other materials that mostly talk about personal blogs, online retail and etc. The book starts with guiding a reader through a planning phase and helps to find a proper niche, estimate audience and generate initial list of topics for your blog.

The next step is more technical – how to build a blog. Even if a WordPress (and the book’s focuses mostly on it) is super user friendly and straightforward, you better have more detailed explanation how key elements of the platform work, how they are integrated and etc. And the book does a good job in doing that.

The cornerstone of a blog – content – is covered in a great details. The books answers on questions how to find ideas for new posts, when and how often to post and other nuances. Probably, it is a key chapter of the book. Then the book concentrates on topic of a blog promotion via multiple sources and benefits of each of them. I have to say that I did not implement even a 30% of promotion advises. Some of them are outdated, others are not applicable for my niche, but you will find something useful for you for sure.

The last two chapters are about monetizing and scaling a blog, but for most of readers there will be long and effortful journey before they come to the need of finding additional authors or making money out of the blog.

If you are looking for a beginner guide how to start a blog, this book is for you. I rate if 5 out of 5.

Check out my other book reviews!

I was always astonished how group of people can form an organization that successfully solves highly complex, highly ambiguous challenges and innovates. The organization can continue to produce great products or solutions for a long period of time. But at some point something breaks. Same individuals change their decision making process and instead of nurturing crazy ideas, they start to bury them.

Why it is like that? What is the root cause? Definitely, organization structure has something to do with that. But what else impacts human behaviour in a group?

Those are some of questions that the book is trying to answer. The author uses phase transition theory to explain sudden change in group behaviour. He also proves that individual behaviour has much less impact than organization structure. More is different is one of the key points of the book.

There are a lot of interesting ideas around how balance can be achieved between “artists” and “soldiers” in organization. How to manage transition of innovative ideas from prototype to stable product? This is a classical problem it IT, based on my personal experience. Too many great ideas too often never made it to implementation. So, the book provides a blueprint how to overcome this.

I really enjoyed chapters where the author applied scientific method to solve the challenge every organization is trying to solve – “Where does an employee invest last working hour of the day? Will he or she try to add value to assigned projects or spend time on building networking and internal politics?” This equation includes multiple variables – span of control, equity fraction and many others.

The author distinguishes two types of innovation – product (P-type) and strategy (S-type). In short, if a company concentrates only on “the latest and greatest” products, it can stuck in the vicious cycle. It will concentrate only on “faster and bigger” features, even there is no market for it. This what book calls “Moses Trap”.

The book is also great source of stories about how innovation products and companies were born. There are examples from almost all industries – aviation, photography, IT, pharmaceutical and etc. So, if you are collecting and memorizing stories like I do, this book has a nice pack of them.

Overall, great book – 5 out of 5. I recommend to read it together with other books about innovation. Check out my reviews here and here.

I have started new job in September 2020 – after 6 months in a “working-from-home” mode. Some of the questions I was asking myself after signing new contract were:

“Will I be able to connect with my new peers, my manager and feel myself part of the team?”

“How can I connect with company’s culture without meeting people physically?”

These questions are extremely relevant in the modern society. We are becoming more and more lonely, while becoming more and more digitally connected. Paradox. Check out this 30 year vision from SoftBank for more insights on that. It was created in 2010 and their predictions are pretty accurate so far.