Marginal Cost Thinking

In business, marginal cost thinking means we’ll prefer to do the things that bring us immediate profitability over things that position us well against the competition racing after our tails. In our personal life, it’s worse.

There’s an argument to be made for dedicating some part of each business week to self development. Clay Christensen’s article How will you measure your life? made this idea tangible to me. You can catch his great Ted talk here. Two ideas in that article that caught my attention. Achievement bias and marginal cost thinking.

Marginal cost thinking for the purposes of his talk is when, in order to maximize profits, you discount your sunk costs and preferentially undertake tasks that rely on your existing infrastructure rather than building out new capabilities. This means that established companies naturally become tied to undertakings that rely on those structures. New upstarts don’t have existing structures to leverage and so they innovate faster. Achievement bias, which is my own term for a concept he introduced me to, takes the basic short term pleasure construct and adds a new twist.

We all know that we’re wired to be efficient, which basically means we prefer to take familiar, dopamine-driven actions like tackling our email instead of working on our projects, hitting up the office candy bowl instead of going to get a salad for lunch, chatting with office mates instead of doubling down on our work. If you’ve been reading along with this blog, you know that much of our control in life comes from being aware of these patterns and getting our prefrontal cortex in charge of things inside our heads.

Christensen ups the ante on this by pointing out that it’s worse than we think.

We are motivated as humans by the desire to learn and grow, have more responsibility and contribute to the tribe. In other words, we want to achieve.

Here’s the rest of the news – some of what we do in the name of achievement falls into the short term pleasure vortex.

What???

People who are drawn to achievement, which is basically all of us, will prefer to do tasks that help us hit short term goal markers over things that build out personal infrastructure.

Dudette. Did you see that coming? Me neither.

It’s marginal thinking on a micro-level.

This helps explain how goal achievement can be an avoidance tactic and an addictive practice all on its own.

Before you head off to get a cookie and check your email, let’s break down what our personal infrastructure is. It’s the systems that keep us running. The stuff we need to keep the lights on in this business we call being alive: family, friends, exercise, nutrition, sleep, relaxation, purpose, meaning, goals, thinking that processes your experience – whether spiritual or creative – you get the picture.

You have a personal work infrastructure, too. That’s your specialized knowledge, your personal networks, your industry knowledge, your skills, training, and experience. And for some of us, when we get a bit of spare time, we preferentially tackle some task that will give us immediate achievement instead of investing in these infrastructures.

This explains how come when we have a few minutes, we spend it cleaning or catching up with work, or fiddling with something rather than sitting down to plan out a family reunion next year, or reading up on the latest business trends.

It’s easy to notice when a company is letting its infrastructure get out of date and choosing short term profit over long term competitiveness. It’s also easy to notice when a programmer creates technical debt in the drive to bring a program to market.

But this pattern also shows up when we put off working on our development in order to meet our day to day goals, fail to attend training in favor of getting to inbox zero or insist on attending every meeting on our calendars instead of working through a self-study course.

If you’re like me, you’re not looking at emails, meetings and day to day work as short term pleasure-seeking. These behaviors trade short term gains for future payoffs. They are achievement bias built on marginal thinking at a personal level.

And that? Is just good to know.

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Future Focus

Remember when someone told you to dress for the job you want, not the job you have? 
Turns out that someone was right, but not for the reason you think.   

When we dress for the job we want, we think we’re letting other people see us as if we’re ready and able to step into that role.  Turns out, the person we’re actually convincing is ourselves.

If you’re a growth-minded person, you have some future state you’re working toward.  Myself, I want to be a thin, buff woman who can run a 5K without having to plan a year in advance.  I also want to be a person who picks up after herself in a timeframe that is somewhat relevant to the day the mess is made.  And I want to be an innovative business partner, able to find great ways to use technology to make our company perform better, who just happens to grab great projects for her team while she’s doing it.

That’s a lot of “stuff” I want to do. 

Here’s where it starts to break down.  When I look at all I would like to learn, do and become, and I compare that to some reality checks like I want to play Pictionary with my granddaughter at the drop of a hat and be able to inhale the latest Stephen King novel the same week it comes out – I’m left with a sinking feeling that it’s all impossible. I’m trying to see how all the steps I need to take come together and not getting a clear picture, so I often wind up working on some version of “I can’t see how to have it all.”

My coach is always saying we have to act as if we’re the person we want to be.  I took that to mean that I needed to visualize myself in the future. Great. I love daydreaming – it’s easy and you can eat cheese crackers while you do it.

Thin? Check. Buff? Check. Successful? Check. Clean house? Check.

Ok – but then my coach tells me – Be more specific.

OK, so daydream up more details, right?

Here goes! Buff means that I’m 132 lbs, can run a 5K easily, can carry my 80 lb dog up one flight of stairs and I can do a Sunrise Salutation, with the chaturanga.  And successful means my team is cohesive and working toward next leveling themselves and I have time to take on new tasks from my manager plus all that innovation stuff I mentioned.  Clean house? Well, I think we all know what that looks like – a Better Homes and Gardens cover. Duh.

This week, I finally got what she’s been driving at. All of that future visualization is good but it’s not going to get me a clean house or a swell pat on the back from my boss.  What she means by specific is to think lifestyle specific.

If we want to actually achieve that future vision of us, we have to imagine that person’s lifestyle… and live there – now.

If you would like to get my free cheatsheet – How to Work Less, Starting Tomorrow, just click here. You’ll get the low down on how to kick overwork in the knees in three simple steps.

A woman who is able to innovate has to know what other business teams are planning, and not just at budget time.  She needs to know the direction they want to head, with or without technological help and then research ways to add value.  To be that woman two years from now, I have to be building relationships that extend beyond day-to-day survival.  So I have to live that lifestyle today.  That means I need to have meetings on my calendar that aren’t just about the technical issues other teams are having today. It means I have to be asking my team to work now at the level they’ll need to be for me to do that.

That buff, thin woman I want to be has a specific lifestyle too – she eats a certain way, she has to make her exercise a priority. Just because she’s thin and healthy doesn’t mean she gets to sit on her keester and watch Suits. The stationary woman who catches a full season in a week looks a lot like me – because I’m living her lifestyle.

Get it? 

This all seems obvious but most of us still think statically, in clips and short outtakes when we think about the future. We think that if we get that next job, we’ll be happy.  We don’t try to live a day in the shoes of the person that has that job.  We think if we work hard and get there, we can still be the person we are today, but with the new job.  Not likely.  What we need to be doing is figuring out what the every-day average life looks like for the person you want to be. What does he do in the morning? What does he do at the office? What does he do after supper?   Really see the full day-to-day lifestyle of that person. 

Now ask yourself, does that look like a good life?

If the answer is yes, then starting living the lifestyle – today.  

And that?

Is how you live in the future – right now.

Good to know.

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How to Create a Feeling…Right Now.

Dudette, if your emotional vocabulary is limited to happy, sad and OK, you are seriously stuck in the wrong buffet line.

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You don’t want to be a cartoon. You certainly don’t want to be an emoji. You, my beautiful friend, are a person. You’ve been gifted with a plethora of feelings, some so sublime, they can make you weep for pleasure.

Don’t waste your FOMO on food, cars or the newest movie. If you have FOMO for anything, it should be fear of missing out on the opportunity to expand your emotional vocabulary.

Seriously, when we want to try a divine meal, or drive a hot car or catch the latest flick, we’re looking for a feeling. I’m seriously mad for the new Toyota Supra. I know driving that car will give me a feeling of exhileration – that’s what I’m after when I’m consumed with the desire to leap from my chair and go buy one. I’m certainly not after the payments or dealing with the issues of owning a car whose rear differential is a massively complex computer system. I want the sheer rapture of feeling g-force and the joy of swooping around a curve in a growling, magnificent liquid-red machine. I want the damn feeling.

Try this exercise

Would you rather have the life described here:

Good, bad, scared, neutral, angry, loving, sad, happy

Or the life described here?

Awkward, adaptable, blocked, blissful, confounded, connected, dreadful, devoted, euphoric, envious, fragile, forgiving, glum, grateful, hesitant, hardy, immobile, inspired, jittery, jubilant, liberated, lonely, malicious, motivated, nervous, natural, offended, outgoing, perseverant, pessimistic, quiet, quarrelsome, reliable, reactive, sane, seething, sullen, sunny, tender, touchy, unburdened, unbending, vulnerable, vigorous, weary, warm, youthful, zany

Right. We want the full catastrophe. We want to have a full life with a smorgasbord of feelings.

The truth is, you can have any feeling you want, right now. But you can’t create a feeling until you can name it and that’s where a great emotional vocabulary comes in.

Once you can name a feeling, you can create it. What?

It’s true. Here’s how:

Feelings are caused by thoughts. Since you can control your thoughts, you can create a feeling. (Sensations like hunger, pain, sleepiness are physical – that’s not what we’re talking about here.) Actions arise from feelings and since we can control our actions, we can also back into a feeling.

  1. Pick the feeling you want to have. Mine is marvelous.
  2. Really think about what you experience when you feel it. When I feel marvelous, my shoulders are relaxed, my brain feels light, uncluttered as if I’ve just exhaled. My eyes are alert, I’m curious and engaged. When I feel marvelous, I’m not in a hurry, I’m happy where I’m at and interested in what’s next, but not eager. I’m capable and content, curious and engaged, joyful and in no hurry. I’m marvelous, simply marvelous. There is nothing wrong in the whole world. See why I like to feel this way? Now it’s your turn. Describe how your body and mind feel when you are experiencing your desired feeling.
  3. Remember how you act when you feel this way. When I feel marvelous, I get right to what I want to do, I don’t run, I notice everything around me and appreciate it. I look people in the eye, I smile. I have time to compliment their new shoes but I don’t dillydally. I’m heading somewhere, in no hurry but not wasting time. I’m generous with my help when I feel marvelous. I’m able to listen well. I can change course easily. Now your turn. How do you actually behave, in the world when you feel this way?
  4. Figure out what you’re thinking when you feel this way. When I feel marvelous I think things like “Everything’s great. I’m able to do what’s needed. I have all the time I need. I’m so lucky to be here, to have my job, to enjoy my work. The sky is beautiful. The work is interesting. The people are lovely. I can’t wait to dig into my day.”
  5. Put that all together. Practice thinking and experiencing the emotion you want. Try to feel it all day. Make it bigger, make it smaller.
  6. Tie a movement to it. That’s it. Soon, you’ll be able to bring out this emotion any time you need it. When I practice feeling marvelous I raise my arms over my head and drop them to my sides while I give a big exhale, smile and say ‘marvelous’. I practice this often. I might look like a nut, but I can stand in the elevator, take this quick action, think the word to myself and emerge at the next floor feeling, well, marvelous and ready for what’s next.

And that? Is a terrific skill to have.

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Letting Go of the Need to Get There

Our lives are miraculous and if you’re reading this, you’ve already arrived.

Potential must be a BIG word. It has to be tall – because we need to live up to it, right? It’s inscrutable because we have to work hard to realize it. We had better get to it because we don’t want to fail to reach our potential. Right? Right? After all, our managers are eager to help us and we want to be excellent.

Too bad. Because we’ll never succeed at manifesting our true human potential. It’s a massive Catch-22.

Our human potential is unlimited.

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Listen, I’m a person who always wants to take on challenges, learn, grow, and keep moving, I mean, that is some fun way to live. But I want to give a big, fat raspberry to that idea that we all need to hurry to reach our potential, or that there is one perfect manifestation of our potential.

So I decided to get the facts. I went to Google and got the first definition that came up. (Yes, do laugh, but we’re moving on.) When used as a noun, the definition is “latent qualities or abilities that may be developed and lead to future success or usefulness.”

Basically, we’ve got some stuff we’re not using yet. It may be useful but, we have to put some work in to make that so. When you put it that way, it doesn’t sound like life or death. It might not even be worth missing a family outing for.

Look, I don’t know about you, but I’ve got lots of “stuff” I’m not using. I’m not using my ergonomic keyboard; I’m not using my subscription to Dragon Speak. Fact is, both of those are going to require a bit of effort and time and I’m not ready. Why? Because I’m busy – I’m writing my blog, I’m rushing to get outside a enjoy a perfect September Saturday walking my dogs. I’m looking forward to getting my house clean and maybe cooking that free turkey from last Thanksgiving before I get another one. You know. I’m living my life.

You are too. Well, not my life. You’re living yours.

And that? Is a gift.

According to a Japanese Zen story, we can think of our human existence like this:

Our very existence, at this moment, on this planet, in this human form, is as unlikely as a sea turtle sleeping on the bed of the ocean for 100 years, waking up and swimming to the surface, and putting its head into a floating oxen yolk. Not just any floating oxen yolk, but a golden one, as in made of gold – heavy, sinkable gold, that is floating for a brief moment, pushed this way and that by the wind and waves. The likelihood of our 100-year-old sea turtle hitting that yolk perfectly – that’s the chances of us being here as humans, with our experiences, in this life and being aware of the present moment.

The minute I allow my quest to reach my human potential to cause me to refute the wonder of this present moment, I’ve let go of the rare gift of the here and now.

And it’s worse than that. I’ve used the distance between where I am and where I can go to mean that there is something wrong with me, here, as I am, because I’m assuming there is somewhere better to go, some better person to be.

It’s just not true.

There is no getting to my full potential, ever. And there’s certainly no getting to my potential without starting where I am now.

So go ahead, walk out into the superunknown of your own potential. Take risks, try new things, learn more stuff. Set goals; achieve them. All of that creates texture and flavor in this beautiful life you’ve been given. Work hard. Do stuff.

Just know, the future doesn’t hold a final goal that gets you to the place where your life starts with you in the starring role as a fully realized human.

Dude, you’re already there.

And that? Is a good idea to hold onto.

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When You Assume…

We’re magnificently good at guessing what other people are thinking – not.

The definition of assume is enlightening. There’s the type of assuming where we presume or suppose something to be true without any evidence, but there’s also the taking of responsibility, to assume power or responsibility, and also, the assuming of a false face, pretending or assuming an appearance.

I want people to like me. So sue me. And yeah, I know that leads to me thinking way too much about what might be going on between their ears. My brain ( and yours too) was built to be pretty good at that – at least as a kid. I mean, I needed to know if my folks were going to feed me or not and I didn’t know a lot of words. Also, I had no car keys and no money, feel me? Our standard-issue brains are pretty OK at understanding if we’ve made our parents happy or not and if we’re about to have our desires thwarted. That’s pretty important for the preschool to preteen set.

As adults, our built-in “guess what they’re thinking” app starts to lose its shine. First of all, we’re trying to apply that process to more complex subjects and second of all, it leaves us making assumptions and jumping to conclusions. (Shout out to any fans of “The Phantom Tollbooth” out there who just imagined being tossed to an island.)

All that is to say, if you find yourself acting as if you know what someone else is thinking, well, it’s not your fault. You’re built that way.

But here’s the interesting part, when we think we know what another person is thinking, without actually asking them, we’re not only assuming facts that are not in evidence, we’re also assuming responsibility for what happens next.

Whoa. I wasn’t looking to take that on, were you?

When we walk into a meeting with a stain on our shirt and our boss eyes us up and down, we might assume she’s displeased with our poor presentation of ourselves. But she could also be looking to see if we have an extra pen with us. And that’s where we go from assuming we know what she’s thinking to assuming responsibility for what happens next.

When we hazard a guess at another person’s thoughts, we then have thoughts about that assumption. Those thoughts we have trigger feelings, deep shame about our slovenly blouse or anger at the fact we were dumb enough to wear white on taco day. Whatever we’re thinking, that thought will cause an emotion. That’s what thoughts do.

And then… we act on those feelings.

We might spend the rest of the meeting so worried about hiding that salsa stain, we totally can’t focus on the content of the meeting – not that I’ve ever let that happen. Heck, I’ve been so distracted by my own clothing that I considered taking a half-day to go home and collapse into my sweat pants. For a couple of years, I solved that by having a change of clothes in the car. But that’s just me. I’m a nut.

If we’re angry at ourselves for being sloppy or angry at our boss for being judgemental, we’re going to behave in a different manner. Maybe pointedly not backing up something she says, or not sticking up for our own position. Who knows what we’ll do.

One thing that’s for sure – how we react to those feelings, be they shame, anger, offense or guilt, is on us. And it’s based on castles in the air. Because at the root of it, we’re taking actions based on feelings and the thoughts that caused them – all related to what basically amounts to a wild guess.

You and I have no business inside someone else’s head, and that’s a fact.

On top of all that, we are now presenting to the world a facet of ourselves wholly built on fantasy. Our behavior is tied to what we think someone else is thinking. It’s not even tied to what we actually think we should be doing. As in, if we knew that nobody could see that stain because the light in the room and the angle of the fabric render it invisible, we wouldn’t be having all those thoughts about the boss, the look, the shirt and the what it all means. We’d just be opening up our notebook and taking notes. We’d be in the meeting as our authentic selves.

And that? Is just good to do.

I’ve helped many people get perspective on their own thoughts and get the heck out of everyone else’s mind. The relief we feel when we stop worrying about what other people are thinking and start to show up as the person we want to be is profound. I’m so grateful to my coach for helping me get out of my own way and I’d be honored to pay that forward. If you would like to work with me – I meet my clients over zoom – camera on or camera off- at a time that works for them. I’d love to work with you too. Book a free mini-session to see if this life coaching stuff works for you. Why not? It’s free and I’m nice. Click Here & Try It. I promise not to think any judgy thoughts.