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  • Oct 17, 08

    An article using Enron as it's basis for why companies fail.

      • Five years ago, Dweck did a study at the University of Hong Kong, where all classes are conducted in English. She and her colleagues approached a large group of social-sciences students, told them their English-proficiency scores, and asked them if they wanted to take a course to improve their language skills. One would expect all those who scored poorly to sign up for the remedial course. The University of Hong Kong is a demanding institution, and it is hard to do well in the social sciences without strong English skills. Curiously, however, only the ones who believed in malleable intelligence expressed interest in the class. The students who believed that their intelligence was a fixed trait were so concerned about appearing to be deficient that they preferred to stay home. “Students who hold a fixed view of their intelligence care so much about looking smart that they act dumb,” Dweck writes, “for what could be dumber than giving up a chance to learn something that is essential for your own success?”

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    • In a similar experiment, Dweck gave a class of preadolescent students a test filled with challenging problems. After they were finished, one group was praised for its effort and another group was praised for its intelligence. Those praised for their intelligence were reluctant to tackle difficult tasks, and their performance on subsequent tests soon began to suffer. Then Dweck asked the children to write a letter to students at another school, describing their experience in the study. She discovered something remarkable: forty per cent of those students who were praised for their intelligence lied about how they had scored on the test, adjusting their grade upward. They weren’t naturally deceptive people, and they weren’t any less intelligent or self-confident than anyone else. They simply did what people do when they are immersed in an environment that celebrates them solely for their innate “talent.” They begin to define themselves by that description, and when times get tough and that self-image is threatened they have difficulty with the consequences. They will not take the remedial course. They will not stand up to investors and the public and admit that they were wrong. They’d sooner lie.

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  • Oct 08, 08

    An article detailing the struggle and determination of Richard Branson

    • For those of you who haven’t heard of Richard Branson before, he is an exceptional entrepreneur and the founder of the Virgin group of companies. Business life for Richard Branson started at the age of 17 when he started to publish a magazine Student. He aimed high: he chased down Mick Jagger, John Lennon and the likes to get interviews, he phoned major companies to sell advertisements, and he targeted a nationwide audience. It took a year or so to take off, but he succeeded. Student magazine eventually lead to a music record mail ordering business, music shops, a studio and eventually the Virgin Music record label.

       

      Richard did not stop there, Virgin Music has reinvented itself over and over. At first is was a record label with a hippy image (Mike Oldfield’s Tubular Bells was the big breakthrough), but after signing the Sex Pistols this image changed. After this Phil Collins, Peter Gabriel, Sting, Janet Jackson, The Rolling Stones and many many others were signed by Virgin. In the meantime though Richard got a bit “bored” as he lost the challenge in the game of contracting another pop group. So he started an airline to compete against British Airways. To cut a long story short, he succeeded in running it successful, despite the dirty tricks from BA and despite the fact that he “lost” Virgin Music in the process. Nowadays, Virgin has a wide variety of companies, and they target markets where customers are getting a raw deal, or where there is a market dominance by one or two players.

       

      Last week I finished his autobiography Losing My Virginity. It’s a recommended read, his story is a remarkable one, that I find very inspirational. In his book Richard tells about his life from the very start, including the successes, the screw-ups, the record attempts, his marriages, having children, losing a child, buying an island, battling BA and banks and so on.

    • Richard repeats several times that his life’s motto is to “Live life to the full”. Somewhere in the book, when he describes an argument between some of the key people at Virgin he states the following: “My interest in life comes from setting myself huge, apparently unachievable challenges and trying to rise above them.”. This is true for him from a business perspective (starting in a business and competing heads-on with BA or Coca Cola definitely comply to that), but also from a personal perspective (doing several record attempts at crossing the Atlantic by boat and balloon).

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  • Aug 28, 08

    I don't know how accurate this is but it's pretty in-depth. Many of the problems listed here are common to many companies but this is particularly special in that it lists a specific company and their specific struggles.

    • These days, most in-the-know folks would sooner eat glass than carry a Motorola phone. The company has shredded its reputation by failing to address basic interface design issues: freeze-prone software, head-scratching menus, keys that demand Herculean strength. It's baffling that such a venerable company could build such frustrating phones, considering the zillions presumably spent on development. How did Motorola make such a bollocks of its wireless division? Now that the company has annointed new wireless division chief Sanjay Jha, we surveyed former staffers for the inside scoop, as well as their advice on how to right the ship.
    • Insiders always start by attacking Motorola's corporate culture, formed decades ago when radio was the company's bread-and-butter. Motorola made its bones building end-to-end systems—not just hardware, but the infrastructure that supports it. That, in turn, has led to a culture in which engineers reign supreme, and are allowed to sneer at their more right-brain-inclined colleagues. Marketers? Designers who focus on usability as opposed to circuitry? At Motorola, they're peons.

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    • I will admit that I admire skeptics. I look up to guys like Robert Shiller, who first pointed out the tech bubble, then for an encore pointed out the real estate bubble. Despite all of the pundits who talked about structural changes in the economy, how things are different, Dow 36000, stocks as less risky investments, etc, Shiller held his ground. From my perspective though, it doesn't seem like anyone decided to start listening to him after 2000. Warren Buffett was the same way - lambasted in the late 1990s as too old school, even though he turned out to be right. He's simultaneously worshiped as one of the world's greatest investors, and despised for being a value, buy and hold kind of guy in an age when quants rule wall street. It's sort of paradoxical.
    • It has just been my experience that when I get to the core of any idea, person, company, or organization, I almost always find that it has been overhyped. As a result, skepticism is my natural starting position.

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    • The failure of SuperMemo to transform learning uncannily repeats the earlier failures of cognitive psychology to influence teachers and students. Our capacity to learn is amazingly large. But optimal learning demands a kind of rational control over ourselves that does not come easily. Even the basic demand for regularity can be daunting. If you skip a few days, the spacing effect, with its steady march of sealing knowledge in memory, begins to lose its force. Progress limps. When it comes to increasing intelligence, our brain is up to the task and our technology is up to the task. The problem lies in our temperament.
    • Wozniak's days are blocked into distinct periods: a creative period, a reading and studying period, an exercise period, an eating period, a resting period, and then a second creative period. He doesn't get up at a regular hour and is passionate against alarm clocks. If excitement over his research leads him to work into the night, he simply shifts to sleeping in the day. When he sits down for a session of incremental reading, he attends to whatever automatically appears on his computer screen, stopping the instant his mind begins to drift or his comprehension falls too low and then moving on to the next item in the queue. SuperMemo graphs a distribution of priorities that he can adjust as he goes. When he encounters a passage that he thinks he'll need to remember, he marks it; then it goes into a pattern of spaced repetition, and the information it contains will stay in his brain indefinitely.

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    • By the mid-'90s, with SuperMemo growing more and more popular, Wozniak felt that his ability to rationally control his life was slipping away. "There were 80 phone calls per day to handle. There was no time for learning, no time for programming, no time for sleep," he recalls. In 1994, he disappeared for two weeks, leaving no information about where he was. The next year he was gone for 100 days. Each year, he has increased his time away. He doesn't own a phone. He ignores his email for months at a time. And though he holds a PhD and has published in academic journals, he never attends conferences or scientific meetings.
    • Instead, Wozniak has ridden SuperMemo into uncharted regions of self-experimentation. In 1999, he started making a detailed record of his hours of sleep, and now he's working to correlate that data with his daily performance on study repetitions. Psychologists have long believed there's a correlation between sleep and memory, but no mathematical law has been discovered. Wozniak has also invented a way to apply his learning system to his intake of unstructured information from books and articles, winnowing written material down to the type of discrete chunks that can be memorized, and then scheduling them for efficient learning. He selects a short section of what he's reading and copies it into the SuperMemo application, which predicts when he'll want to read it again so it sticks in his mind. He cuts and pastes completely unread material into the system, assigning it a priority. SuperMemo shuffles all his potential knowledge into a queue and presents it to him on a study screen when the time is right. Wozniak can look at a graph of what he's got lined up to learn and adjust the priority rankings if his goals change.

         

      These techniques are designed to overcome steep learning curves through automated steps, like stairs on a hill. He calls it incremental reading, and it has come to dominate his intellectual life. Wozniak no longer wastes time worrying that he hasn't gotten to some article he wants to read; once it's loaded into the system, he trusts his algorithm to apportion it to his consciousness at the appropriate time.

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    • The most popular learning systems sold today — for instance, foreign language software like Rosetta Stone — cheerfully defy every one of the psychologists' warnings. With its constant feedback and easily accessible clues, Rosetta Stone brilliantly creates a sensation of progress. "Go to Amazon and look at the reviews," says Greg Keim, Rosetta Stone's CTO, when I ask him what evidence he has that people are really remembering what they learn. "That is as objective as you can get in terms of a user's sense of achievement." The sole problem here, from the psychologists' perspective, is that the user's sense of achievement is exactly what we should most distrust.
    • The battle between lab-tested techniques and conventional pedagogy went on for decades, and it's fair to say that the psychologists lost. All those studies of human memory in the lab — using nonsense syllables, random numbers, pictures, maps, foreign vocabulary, scattered dots — had so little influence on actual practice that eventually their irrelevance provoked a revolt. In the late '70s, Ulric Neisser, the pioneering researcher who coined the term cognitive psychology, launched a broad attack on the approach of Ebbinghaus and his scientific kin.

         

      "We have established firm empirical generalizations, but most of them are so obvious that every 10-year-old knows them anyway," Neisser complained. "We have an intellectually impressive group of theories, but history offers little confidence that they will provide any meaningful insight into natural behavior." Neisser encouraged psychologists to leave their labs and study memory in its natural environment, in the style of ecologists. He didn't doubt that the laboratory theories were correct in their limited way, but he wanted results that had power to change the world.

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    • The problem of forgetting might not torment us so much if we could only convince ourselves that remembering isn't important. Perhaps the things we learn — words, dates, formulas, historical and biographical details — don't really matter. Facts can be looked up. That's what the Internet is for. When it comes to learning, what really matters is how things fit together. We master the stories, the schemas, the frameworks, the paradigms; we rehearse the lingo; we swim in the episteme.

         

      The disadvantage of this comforting notion is that it's false. "The people who criticize memorization — how happy would they be to spell out every letter of every word they read?" asks Robert Bjork, chair of UCLA's psychology department and one of the most eminent memory researchers. After all, Bjork notes, children learn to read whole words through intense practice, and every time we enter a new field we become children again. "You can't escape memorization," he says. "There is an initial process of learning the names of things. That's a stage we all go through. It's all the more important to go through it rapidly." The human brain is a marvel of associative processing, but in order to make associations, data must be loaded into memory.

    • Once we drop the excuse that memorization is pointless, we're left with an interesting mystery. Much of the information does remain in our memory, though we cannot recall it. "To this day," Bjork says, "most people think about forgetting as decay, that memories are like footprints in the sand that gradually fade away. But that has been disproved by a lot of research. The memory appears to be gone because you can't recall it, but we can prove that it's still there. For instance, you can still recognize a 'forgotten' item in a group. Yes, without continued use, things become inaccessible. But they are not gone."

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    • In the late 1800s, a German scientist named Hermann Ebbinghaus made up lists of nonsense syllables and measured how long it took to forget and then relearn them. (Here is an example of the type of list he used: bes dek fel gup huf jeik mek meun pon daus dor gim ke4k be4p bCn hes.) In experiments of breathtaking rigor and tedium, Ebbinghaus practiced and recited from memory 2.5 nonsense syllables a second, then rested for a bit and started again. Maintaining a pace of rote mental athleticism that all students of foreign verb conjugation will regard with awe, Ebbinghaus trained this way for more than a year. Then, to show that the results he was getting weren't an accident, he repeated the entire set of experiments three years later. Finally, in 1885, he published a monograph called Memory: A Contribution to Experimental Psychology. The book became the founding classic of a new discipline.
    • Ebbinghaus discovered many lawlike regularities of mental life. He was the first to draw a learning curve. Among his original observations was an account of a strange phenomenon that would drive his successors half batty for the next century: the spacing effect.

         

      Ebbinghaus showed that it's possible to dramatically improve learning by correctly spacing practice sessions. On one level, this finding is trivial; all students have been warned not to cram. But the efficiencies created by precise spacing are so large, and the improvement in performance so predictable, that from nearly the moment Ebbinghaus described the spacing effect, psychologists have been urging educators to use it to accelerate human progress. After all, there is a tremendous amount of material we might want to know. Time is short.

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    • The winter sun sets in mid-afternoon in Kolobrzeg, Poland, but the early twilight does not deter people from taking their regular outdoor promenade. Bundled up in parkas with fur-trimmed hoods, strolling hand in mittened hand along the edge of the Baltic Sea, off-season tourists from Germany stop openmouthed when they see a tall, well-built, nearly naked man running up and down the sand.

         

      "Kalt? Kalt?" one of them calls out. The man gives a polite but vague answer, then turns and dives into the waves. After swimming back and forth in the 40-degree water for a few minutes, he emerges from the surf and jogs briefly along the shore. The wind is strong, but the man makes no move to get dressed. Passersby continue to comment and stare. "This is one of the reasons I prefer anonymity," he tells me in English. "You do something even slightly out of the ordinary and it causes a sensation."

    • Piotr Wozniak's quest for anonymity has been successful. Nobody along this string of little beach resorts recognizes him as the inventor of a technique to turn people into geniuses. A portion of this technique, embodied in a software program called SuperMemo, has enthusiastic users around the world. They apply it mainly to learning languages, and it's popular among people for whom fluency is a necessity — students from Poland or other poor countries aiming to score well enough on English-language exams to study abroad. A substantial number of them do not pay for it, and pirated copies are ubiquitous on software bulletin boards in China, where it competes with knockoffs like SugarMemo.

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    • During the last few minutes of Game 6 of Boston's second-round series with Cleveland, poor Kevin Garnett looked like Forrest Gump right after Jenny pulled her top down in her dorm room. On one play, the ball swung to KG at the foul line; no Cav was within 10 feet of him. Strangely, he panicked, thinking about shooting an open J before realizing, Wait, I'm seven feet tall, that would be dumb, and barreling toward the basket to rush a clumsy jump hook. For a former MVP who makes $22 million a year, it was an astoundingly incompetent sequence. 
        
       It also wasn't a surprise.
    • Garnett's crunch-time woes have been the dirty little secret of this storybook Celtics season. Sure, he saved the franchise and made the C's relevant again. He's also the reason they might not win the 2008 championship. Put simply, Garnett shrinks from pressure more times than he comes through. The NBA is a simple league to figure out: In a playoff series, the best player prevails unless his supporting cast is significantly inferior to the other team's. So when Boston's best player can't dominate close games against a quality opponent … um, that's a problem.

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  • May 04, 08

    Personal commentary about the challenges of writing a book and getting it published and attracting the optimum audience

    • Isn't it interesting how many people dream of writing a book? It's sweet, and it's (mostly) harmless, and I guess I once semi-shared that dream, and I guess one or two brain cells still make room for the possibility that I will someday write a book (fat chance). But, but, but ... Then I followed the book-publishing industry for 15 years.

        

    • Fact #1: Millions of people are working on books, or believe that they could write a book, or are planning to write a book.

        

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