A Financial Tailspin sucks! Don’t compound it.

We’re going through some … interesting … times, financially. People feel insecure, established institutions are in desperate need of bailout (funny how attractive socialism becomes when you’re the one who needs the handout) and the world economy seems to be teetering on the brink. Now’s a great time to realize: it’s all in our minds.

I mean this quite literally. Have you seen “Money as Debt?” It’s an excellent 47-minute video on where money comes from. It tells how our current system came to be. It highlights flaws in the system and offers some alternatives, all with a tasty dose of conspiracy theory thrown in here and there(*). You can watch the video here: http://www.SteverRobbins.com/r/moneyasdebt

Money is literally nothing more than an idea. It’s a promise we make to deliver a good, a service, or more money at a later date. Why is Bill Gates a billionaire? Because the rest of us agree that he is. We also agree to give him our stuff if he gives us enough money. But it’s all an agreement. Because it’s an agreement, we take action on it, and it’s our actions that have real-world consequences.

“Don’t worry, be happy.”

Bobby McFerrin’s song, “Don’t Worry, Be Happy” is right on the money. At any given moment, you may or may not be able to control what’s actually happening around you. But you can always choose your attitude about it.

I was in a meeting earlier this year, discussing a key feature of entrepreneurship: the ability to see opportunity where others see problems. Just for jollies, I decided to try spending a week deliberately asking, “Where’s the opportunity here?” every time a problem cropped up. Every single time I asked the question, I was able to find an answer. Often, in mere seconds.

The housing bubble gave many time in an elevated lifestyle

Then I asked, “What’s the upside of the financial crisis?” You know, one answer is this: millions have had the chance to live far beyond their means for many years. While we don’t much care for the consequences, at least they got to enjoy a standard of living they couldn’t have otherwise afforded. I’m serious about this, by the way. Of course it’s natural to be upset when losing your job, your credit, your home, or your car. But being upset won’t change anything. It will just make you feel bad. You can also choose to feel thankful that you had those things to begin with.

Be a Thanksgiving Gratitude Geek

Are there problems in the financial world right now? Yup. And we can live through those problems giving all our attention to the downside or giving all our attention to the opportunities and the upside.

My suggestion to you: spend this Thanksgiving dwelling on the upside. Ask yourself, “what do I have to be thankful for?” and make a big long list. Help everyone around you do the same thing. They say what we need is more optimism in the economy. Optimism isn’t something “out there,” it’s one of the few things we have control over. So let’s exercise that control and see the glass as 10% full, not 90% empty. Because we can’t always change the outside reality, but we can certainly choose our inner reality.

Have a Happy Thanksgiving. Here are some of the things I’m thankful for:

• Friends and community
• Hot running showers
• Democracy
• My four-year-old iPod that still works great
• The chance to teach high school students at an after-school program
• Zipcar
• My podcast
• Friends and community

(*) I love conspiracy theories! I always like to remind myself that just because someone’s paranoid doesn’t mean the conspiracy doesn’t truly exist.

Are you committed to becoming a spot-on decision-maker who can make great decisions that actually guide your world? Because chances are, your personal decision-making process is no guarantee of that.

We’ve just finished two years of hate-filled, vitriolic lies and attacks. Most of us were swayed, one way or another, by the election rhetoric and talking heads. One thing is certain: few of us went to the candidates web sites, read their platforms and policies. Even fewer then consulted a range of economists, industry professionals, and others to figure out whether the policies were realistic, whether we have any data on that kind of policy, or whether they would even lead to the kind of world we want.

Pretty much all of us relied mainly on charisma (or lack thereof) and ideology (or lack thereof) and knee-jerk logic to make our decision. And yes, this means you, my above-average-intelligence friends! Intelligent people seem to believe that they understand things better, even though when it comes to politics, there’s no reason to believe that. Smarts are no defense against relying on shallow, biased media reports and cherry-picked statistics.

The challenge: improve your decision making!

Here’s my challenge to you: actually learn from this experience.

Whether you’re feeling fear, anger, hope, or happiness today, grab a piece of paper. Write down all your fears. ALL of them. If you are convinced our President-elect is a terrorist whose greatest desire is to bring down America, write that down. If you’re convinced he’ll raised your taxes, write that down. If you’re convinced that taxes a worse financing decision than debt when you’re running a deficit, write that down, too.

If you believe that America will become a hotbed of corrupt moral practices, write that down.

Now write down your hopes. If you believe we will magically become debt-free in an economic prosperity paradise brought on by a single change in President, write that down. If you believe that America will become a multicultural paradise of acceptance and love, put it on paper.

For both your fears and your hopes, jot down the basis (or lack thereof) you have for those beliefs. You are the ONLY ONE who will see this, so be honest. Expect to have fairly little evidence for any of this.

You know now what you’re projecting on this candidate, good or bad. You could be wrong about a lot of what you’ve written. In fact, you probably are. And you’ve done this with every election you’ve ever voted in.

Now is the time to learn, instead.

Arrange to re-evaluate your decision-making in 2012

Head over to TimeCave.com, and schedule an e-mail to yourself to be delivered in July, 2012. Type in everything you’ve written. Also paste in the following debrief form. Then in 2012, you may be able to make an even higher-quality decision than you did this year.

DEBRIEF OF MY 2008 DECISION
1. Where was I right in my ability to project the candidate’s results?
2. Where I was right, how much of that was due to the candidate’s efforts, and how much of that was external factors that the candidate couldn’t control?
3. Where was I wrong?
4. How much of *that* was under the candidate’s control?
5. Where did I get my information about the candidate?
6. Am I using the same or different sources this time?
7. Do I know how high-quality the sources are? Why do I believe they are high (or low) quality?

When you receive the email in 2012, spend some time thinking through the questions. You may discover that your fears were misplaced. The world didn’t come to an end. You may discover that your hope was a bit overblown. The world didn’t become paradise.

Either way, you’ll discover that you can find ways to improve your decision-making in 2012. That’s a good thing. You will begin to be more nuanced and more thoughtful in your vote, which is one of the most important decisions you’ll ever make.

And why not start now? Campaign 2012 starts in about three weeks…

Have you ever wondered how certain corrupt businesspeople can keep spouting great, moral words while doing the exact opposite in their behavior? You wonder how they can wax eloquent about the need to give customers high-quality products while they happily substitute inferior quality raw materials to save costs. You wonder: are they insane? Probably not. Yes, they hear voices in their head. But we all do that. The problem is that they’re listening to the wrong ones.

In a New York Times article today, John Tierney discusses the science behind hypocrisy and how we fool ourselves. It seems when we distract our conscious mind, we listen mainly to our “gut” (or our “heart,” depending on how poetic an image you prefer), and we know when we’re doing The Wrong Thing. When our conscious minds are free, however, we use them—to self-justify. When we engage in hypocritical or anti-social behavior, our conscious mind goes to work creating justifications so we believe we’re doing the right thing, even when we aren’t.

In the past several years, I’ve become more aware of my own “heart voice.” When I have a troubling decision to make, or strong ambivalence about a situation, I sit quietly. Actually, my brain is usually shrieking gibberish about how unfair I’m being treated, or about how I don’t deserve what’s happening, or about how I’m an utter and complete failure at life because I missed “9 Down” in today’s New York Times crossword puzzle. So here’s this Shrieking Monster in my head, and I let it rant while putting attention on the middle of my chest. Then when the Shrieking Monster stops to take a breath, I quickly ask, “What should I do in this situation?”

Then I sit. After a few minutes, beneath the Monster comes a little, quiet voice. It’s barely even in words. And it has an answer.

The moment the answer comes, I know it’s the right one for me. It’s almost always the moral thing, the ethical thing, the loving thing, the passionate thing. In some weird way, it’s the answer I already knew was right, but just wouldn’t admit to myself. It took a chat with the Little Voice to bring it to the place where it could be heard over the Shrieking Monster voice.

The Shrieking Monster is the one that usually pushes me to do stupid things. It goads me to yell at people when I’m frustrated, to get petulant and childish when I could be forging alliances, and to beat myself up when I don’t do well, even if I did my best. The Little Voice, though, is my own internal Dear Abby: its advice is excellent, even if its hairstyle could stand some updating.

If you’ve never tried this, give it a shot. Ponder a decision that’s giving you angst. Maybe it’s an ethical quandry, or an issue with a co-worker, or that persistent fantasy about wrapping your boss in duct tape upside down, hanging from the ceiling. Choose something really, really important, like: is it fair that I always have to spend the 3 minutes to type up action items after a meeting?

Sit quietly with the situation. Your Shrieking Monster will helpfully point out how unfair it is that you have to type those action items, how your fingers ache, how it’s probably carpel tunnel syndrome and you’ll be crippled for life, and how you really deserve to be the boss and are just not deeply appreciated. Then sit quietly and listen to the Little Voice behind the shrieking monster. It just might have some good advice.

If it seems reasonable, give it a shot. You might find yourself acting more ethically, more morally, more professionally, and more happily. In other words, you just may find your little voice is the key to acting as—not just aspiring to be—your Very Best Self.

Find the article on hypocrisy at http://r.steverrobbins.com/hypocrisyarticle.

Click here to hear this article as a podcast.

Maybe you’ve been successfully brainwashed and just don’t know it. How would you? Pretend you were kidnapped by the People’s Liberation Front of Jordania, which originally attracted you by serving your favorite brand of spaghetti sauce every night of the week (yum!). They successfully brainwashed you, and now you would go on raids with them, eat with them (spaghetti!!), live with them, and genuinely believe in their cause. If someone said to you, “The PLFJ has brainwashed you,” you wouldn’t believe them. You’d go back to contentedly slurping spaghetti.

Schools brainwash us

This is more than an academic question, though it arises in academia as well. People attend schools where they learn certain ways of thinking and are taught that some thinking is preferable to others, or even that some thinking is “right” and some is “wrong.” For example, they teach that the Earth revolves around the sun, and not vice-versa. For centuries, people believed the opposite, and could even be put to death for suggesting the Earth orbited the Sun. So which is the brainwashed? Both have their belief systems, both indoctrinate new people into those beliefs, both have evidence that suffices for them, and both would view the others as living in a fantasy world.

In Business School, students are taught to do cost/benefit analyses, and many of them reframe their entire world in terms of costs and benefits. Great for balancing their checkbook, maybe not so much for making their Sweetie feel loved. “If I spend five minutes cuddling and my time is worth $45/hour…”

In contrast, philosophy majors are taught there are many ways to approach a problem, and may have a very different way of thinking about life (”Amour! Eros! Love! Let’s cuddle!”), and be lousy at balancing their checkbook.

Who’s “right?” Both are. And both have habitual ways of thinking that were taught by a school. How are the schools not brainwashing institutions?

Politics brainwashes us!

Scott McLellan, Pres. Bush’s former Press Secretary, just published a book that reveals how he now believes he had been manipulated and misled for years by Bush. It wasn’t until he left the administration, however, that he had enough perspective to question what he had been told and been living for several years.

We’re all brainwashed, all the time.

If you think about it, you’re probably the member of an exclusive club, all the way down to having your own language. Maybe you’re part of the business club, and you talk about “profits” and “margins” and “business models.” Or you’re a Swing dancer and you talk about doing a “Texas Tommy” (isn’t that illegal in 39 other states?). Or you’re a graphic designer and you know what “Pantone” means.

Now think about your organization. You probably have your own shared beliefs. Those beliefs are a form of brainwashing, and you don’t question them. Everyone takes them for granted, and those who don’t are marginalized or ignored. But the world changes! Yesterday’s “common sense” is today’s backward thinking. “Cars will never take off; they require pavement, and who’ll pay to pave a downtown when so few cars exist to use the roads?”

Sometimes, the world doesn’t even change, the conventional wisdom is just wrong. “The world will only ever need four computers.” “Customers will never buy water in bottles when they can get it free from the tap.”
“I’m really happy to listen to you talk about your ex-boyfriends, dear.”

Find freedom beyond your assumptions

In organizations, getting through your brainwashing is the key to innovation, creativity, and “thinking outside the box.” Indeed, it’s your shared assumptions that are the box!

The key to getting past your brainwashing is to seek out evidence that you might be brainwashed. Write down some of the reasons you know your business is successful:

• People love our customer service.
• We are the low-cost provider.
• We hire the best and the brightest.

Now write down some of the reasons you know your competitors are doomed to fail:

• They just don’t “get it.”
• Our customers would never like their product.
• We’ve locked up the biggest, most important customer.

Take the reasons you just wrote down, muster your courage, and spend some time exploring each one. If your belief is false, how would you find out? What data would you seek? What trends would you be following?

You don’t just have to re-examine your work assumptions. You can also list things you “know” about your family life. Stuff like, “my teenagers won’t listen to me” or “watching TV together is the highest form of quality family time.”

Start seeking some data. Start following some trends. Try a few alternatives. Find out where you’re following the herd, and where you’re really in touch with reality. You’ll learn how much of your life is groupthink, rather than YOUthink. You’ll find yourself thinking outside the box. Although it could scare people around you, it might open your eyes to a whole new world of opportunity. There are advantages to being the sighted man in the land of the blind, and not just because it makes it easier to button your shirt…

by Stever Robbins host of The Get-It-Done Guy podcast

Related article: How to write a good cover letter.

In April 2008, I gave a talk at Harvard Business School on the Ten Cultural Career Lies. These are things I believed for most of my life. Recently, the conventional wisdom started seeming suspect. I called several of my classmates who are all mid-career and asked what had led to their successes and failures. Upon close examination, much of what I had believed to be true about careers did not seem to hold.

This is one man’s experience. I invite you to decide if it matches your experience. You can add your comments to the interactive version on my Get-It-Done Guy book blog.

1. You can plan your career (or would even want to).

• That’s not my experience, nor is it the experience of anyone over 35 I’ve talked to.
• Maybe it worked in the 1950s…
• Maybe it works in careers driven by successive degree requirements (e.g. medicine)
• We get trained to think in terms of one-step-leads-to-another by 18 years of linear schooling.
• So: plan less and be more. Hang out with good people doing good stuff and grab opportunity as it passes by.

2. Being the boss makes for a good life.

• Have you ever worked closely with a CEO? It can be a great job, but it can also suck. Like any job, it requires a certain temperament and set of skills.
• So: find jobs that suit your skills and temperament, don’t assume that the “oooh! isn’t that amazing” jobs will be good for you.

3. “Self-made” people exist.

• The most self-made person alive still relied on millions of others to provide financial markets, schools, sewers, and the infrastructure that allowed them to go off and become “self-made.”
• So: Recognize interdependency and build your life around positive interdependency. And when you want to learn to emulate a “self-made” person, pay attention to all the ways they weren’t self-made; that’s where the learning is. (And by the way, they may not be helpful in pointing out ways that contradict their myth.)

4. Hard work and skill will be appropriately rewarded.

• Bear Sterns CEO cashed out for “only” $60 million. Cleaning lady @ $8/hour must work two jobs just to pay rent and still doesn’t make enough to save anything. ‘Nuff said.
• So: understand what is rewarded (by money, power, respect, affection, time off, flexibility, freedom) and do that. If you want money, finance is the surest way to get it.

5. Do a good job and you’ll get ahead.

• So: See #4. Pay special attention to what the people who will promote you want to see. Don’t assume it’s results.

6. I’ll work now and do what I love when I’ve made my first million, cured cancer, etc.

• Management consulting firms and investment banks use this lie as a recruiting tool.
• Dangerous strategy, and I know very few who’ve pulled it off. If you don’t do it, you’re left at mid-life trapped in a career you don’t like, with a non-transferable resume, and a network composed of people who are the last ones in the world who could help you do what you love. But boy, could they help you get even further in the career you despise.
• So: Factor in your passions and ideals from day one.

7. Intelligence matters.

• Up to a point. After that point, it can threaten people. It’s only useful insofar as you have the people/political/marketing skills to get your ideas in play. Even then, unless you’re perfect, you run the risk of overconfidence.
• So: take classes when you need them, but stop assuming more knowledge is the answer to every problem. As a Fortune 500 ceo once confided: “business really just isn’t rocket science. In fact, to a smart person, it’s kinda boring…”

8. Achievement matters.

• Actually not. Who you know and who thinks well of you probably matters at least as much as what you’ve achieved, if not more.
• So: don’t get too caught up in building that great company, finishing that piece of art, or whatever. Yes, getting things done can be good. But if you enjoy and learn from the things that don’t get done, that may be enough.

9. We can control our lives.

• Sickness, death, lotteries, luck, and love all happen. My friend just moved from Washington D.C. to Las Cruces, NM, where his snuggle-bunny has a job. That sure wasn’t planned for.
• So: go with the flow. Learn to accept the things you can’t control. Be o.k. with that. Enjoy the process and don’t sweat it if you don’t reach the outcome. (That said, give it your best shot if you really want it.)

10. Success (money, power, achievement) brings happiness.

• This has been disproven by tons of research. See the books Happy for No Reason by Marci Shimoff, Are You Ready to Succeed by Srikumar Rao, or Authentic Happiness by Marty Seligman.
• This lie causes great unhappiness. See The Happy or Successful diagram below.
• So: orient your life around happiness and look for success, not the other way around.

Happy or Successful Decision Tree

Click to view the image in full-page size.

Decision tree: living for happy vs. living for success.

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Are you up to date with your user experience? I have been coveting my friend’s iPhone. It is true I have both a Palm Pilot and a Blackberry but the iPhone is getting more and more attractive. Not just because it has got a nice user interface, the reason is deeper.

I have a Macintosh. Palm made $1.6 billion dollars in 2006 but they haven’t updated their Macintosh software in several years, maybe even as much as a decade. The software is clunky, hard to use and it doesn’t integrate with Apple’s synchronization system, which lets everything else synchronize beautifully with the address book and the calendar.

Blackberry paid $450 million dollars to quit a patent suit early and resolve it so they could stay in business, and their software doesn’t properly handle certain types of calendar attachments. Their browser is poor and they don’t handle a type of e-mail accounts called IMAP, which let people have their mail on a central server and access it from many places.

Oh! And by the way and by the way, they have never bothered to come up with a way to synchronize with a Macintosh. From the user’s point of view that makes this products fairly difficult to use on the Mac without third party software and even with the third party software it is usually not as good and has bugs etc. etc.

But think about it for a minute: 1.6 billion dollars and Palm can’t be bothered to develop an updated version of 10-year old software? Hello! Blackberry 450 million dollars to settle a suit? Where is the $10 million dollars that they could use to make the Blackberry compatible with every existing calendar system, contact management system and sales management system in the world. They haven’t bothered.

I don’t know why they haven’t bothered but it doesn’t really matter because there is something out that there will work for me and that’s called an iPhone.

Palm is reported to be looking for a suitor because sales are down and they just don’t know what to do. Palm– update your system! Blackberry, I don’t know. They think the iPhones are a threat and until Blackberry realizes that people aren’t just buying a slick little package; they also wanted to work with their computer, well they are going to lose people to the iPhone as well.

One final example: I recently changed insurance companies and my new insurance company has no autopay option for my premiums. In the year 2008? Excuse me? It hasn’t occurred to them that the user experience for virtually every type of vendor (particularly one with recurring payments) now includes the ability to pay automatically either by credit card or by bank debit. Now it’s true in the short term that’s not going to make a difference. But it’s remarkable because they are the only bill in my entire life that has to be written out by hand every month.

If they are falling behind on that, what else are they falling behind on? So think about your product. Have you tried your competitor’s products lately? Have you noticed if sales are falling, where are people going instead of your product? When you use and evaluate the competitors, look at the whole experience and what you will find is that there are very compelling experiences out there, some of which may not be yours.

Leap on them, surpass them, develop your own experience, put some money into what it will take to make your product fun, happy, easy, simple and streamline to use and you just might find that you will be able to stay ahead of the competition instead of going to them asking them to buy you.

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Download the “Happy or Successful” diagram that goes with the article. 

On a recent birthday I was looking back at the strategies that my friends from high school and college and I employed to get where we are today. We assumed that success would bring happiness, and as far I can tell, we were wrong. It turns out that the two are separate, even though marketers would have us believe otherwise.The slogan for Cadillac is “Life, Liberty and the Pursuit.” Of course what your mind fills in is Life, Liberty and the Pursuit of Happiness. As if a $50,000.00 car will actually make you happier. And maybe it will. But keep in mind, if your life fundamentally sucks, it’s gonna keep on sucking the moment you step out of the car and onto the concrete. So, if the two are different – if happiness and success are not the same – what’s the best life strategy?

We are certainly taught to believe that being successful will make us happy. Society tells us, our parents tell us, our teachers tell us, students in high school as young as 12 and 13 are already being lectured about college. I take it to an extreme. I have a 5-year-old nephew, I am thinking about his college, I am thinking about his high school. It’s ridiculous; I am missing his entire childhood because I am so busy thinking about making him successful in the assumption that thus will he be happy.

I also find that in career coaching new MBAs, they have an almost religious belief that they can plan out a 20-year career path. They say things like, “I will make my money and then I will be happy. Then I will do the things that are meaningful.” Then, then, then. As if, among other things, you can even control whether “then” ever arrives.

So strategy number 1 is: pursue success and hope for happiness. The other strategy is to pursue happiness and meaning and find a way to make a living doing it. This is the strategy where happiness leads to success. Which one is better? Let’s see…

If you go for success and you become successful and you find a way to be happy doing it, yeah, you’re happy and successful. If you go for happiness and find a way to make money doing it, yeah, you’re happy and successful. So, in the case where you can achieve both, it doesn’t really matter which strategy you choose, you end up happy and successful.

But the point we rarely consider is what happens if everything doesn’t work out. If you define your life as pursuing success but you don’t actually find a way to be happy while doing it, or you get to that point where you have the money and now you don’t even know what makes you happy because you have spent the whole time pursuing success instead of happiness, well, great. You’re successful, but you’re not happy. You walk into an empty house surrounded by beautiful gorgeous things. You have a lot of friends and they like you. Why? Because you have a lot of nice things that they want to borrow. You buy a cat, the cat puts with you because you leave its automated feeding bowl in place while you go work at office. It actually hates you because you’re never around. You are too busy working, but at least it will pretend to purr every now and then.

On the other hand, if you go for happiness and aren’t successful, at least you will be happy and you will have a life full of meaning. They found one of the big things that helps people be happy, for example, it is having family and friends and community. So, if you are happy, but don’t quite make it to successful, you may wander into your one-bedroom tiny apartment and be surrounded by friends and family and people who love you and a cat that purrs because it recognizes you – it knows who you are and it appreciates the fact that you feed it. You may not have the money, but you will be happy.

So, in the case where the future works exactly the way we want it to, it doesn’t matter whether you pursue success and then find happiness or whether you pursue happiness and then find success. But in the case where you can’t guarantee the final outcome, it makes so much more sense to pursue happiness and hopefully you can find a way to be successful doing it.

I have spent my life up until very recently doing the opposite. I have spent my life pursuing success under the assumption that it would make me happy and it is not clear that it’s been worth it. Missing a weekend with friends so that I can work hard and earn enough money that I can take time off and … spend a weekend with friends. Hello? This doesn’t exactly make a whole lot of sense.

What I would like to invite you to do today is to examine your own life and your own motivations – How do you work? Are you pursuing success assuming that someday will bring happiness? Are you pursuing happiness looking for way to be successful while doing it? Are you getting both? And I would invite you to play around a little bit. Try doing something from the other camp and find out if that works for you.

If you’re a Type-A Personality Workaholic, skip a day of work, call in sick and do something that makes you happy, that’s meaningful, and that could be a taste of the life you could be living right now, maybe in exchange for money but maybe not. Because when you pursue happiness, you never know what kind of opportunities arise.

I am now one year into a three-year experiment of living my life to the extent that I can get my Type-A Personality to do so. I pursue the things that make me happy and have meaning. The bizarre part is my life is less predictable than ever before. The things I am getting involved with weren’t even on the radar screen a year-and-a-half ago, however, some of them are grander and more exciting than anything I could possibly have planned. Make a choice. Pursue success and find happiness or pursue happiness and find success. Either way you have a shot at both, but in one case you guarantee you will be happy.

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This article is a reprint of an episode of my new podcast. You can visit the site of the original episode here.

Stever Robbins here. Welcome to the Get-It-Done Guy’s Quick and Dirty Tips to Work Less and Do More.

Today’s tip is about decisions. The bottom line? If it costs more to research and make a decision than the impact that decision will actually have, flip a coin instead.

In my first corporate job, we needed a laser printer for our programmers. The executives met to discuss it. After all, a $600 laser printer would only save twelve programmers hours worth of hassle. The marketing department had one, true, but then, they needed one. Otherwise, how could they print drafts of the billboard they erected, celebrating the company’s “Great Beginnings.”

In the end, they didn’t buy the printer. The programmers would just have to make do. And at night, I lay awake wondered: was this somehow my fault? In retrospect, perhaps I overestimated my own importance.

Decisions cost money

But I didn’t overestimate the decision’s importance. The decision not to buy the printer took four executives three one-hour meetings to make. The executives made about $100,000 a year, apiece, which is $50/hour. Multiply by four executives and three hours, and we’re talking $600 worth of management time to make that decision. They should have just spent the $600 on the darned printer.

This was the first time I saw that decisions cost money. And if it costs more to make a decision than the amount you’re deciding about, it’s more sensible to flip a coin or spend the money without further discussion. That’s why some businesses don’t even require receipts for small expenses when employees travel. It’s cheaper to reimburse $5 than handle the paperwork to document the expense.

Indirect costs can mount up

In my example, the cost was the executives’ salaries, but indirect costs can mount up, as well — costs of delays while the decision is being made, the cost of the distraction of having to make the decision, the cost of gathering information, and so on. And sometimes researching one decision leads you to expand the issue way, way too much.

For example (hypothetical, hah!), imagine the motor in your front- loading washing machine burns out for the sixth time, and you decide to buy a new washer. You call a saleswoman and she recommends an $800 model. But you want to be sure you’re making the right choice. So you demur and research begins.

You subscribe to ConsumerReports.org, you print descriptions of dozens of washers, and compare them feature by feature. You call the store and ask about delivery options and service plans. And you realize you can have your dryer venting cleaned as long as the workmen will be poking around. And, you know, since you’re moving the dryer to get at the duct, maybe you should just buy a new dryer to match the new washer.

Soon, your $800 purchase has become a major renovation. Your research gave you so many overspending opportunities that now you’re spending thousands on an extra appliance, delivery, and duct-cleaning. Oh, yeah–and during the project, you’ll be driving your laundry to the laundromat and spending two hours a week doing laundry in bad lighting.

You just spent hundreds of dollars, twelve hours of research time, six hours of laundromat duty, gas to drive there, and the self-esteem nightmare of laundromat lighting, all because you didn’t want to say “yes” to the saleswoman’s $800 suggestion. When you add it all up, you’d have been way better off just buying the dryer.

Non-monetary costs are important

Some decisions have a non-monetary cost. When you and your husband/ wife/transgendered partner or polyamorous family unit decide to go to dinner, you might want a sandwich whereas they want to try a new ethnic restaurant where the food still has eyeballs. Should you graciously say, “Yes,” firmly say “No,” or debate? If you debate, it could become an argument. If you smile brightly and say, “Yes, let’s be adventurous!”, you get major relationship brownie points. Maybe even extra snuggling. If you say, “No, let’s discuss it,” even if you settle on the food-with-a-face, you don’t get the points. With interpersonal decisions, sometimes saying “Yes, dear” and bypassing the decision can be worth way more than getting your way. And you can always order the rice as a safe backup dish.

If my first employers had just made decisions and spent money, instead of spending money to not-make decisions, they might have survived. You don’t need to make their mistake.

Today, put it to work. Review the major decisions you’re making about things to buy, places to go, people to see, and all that stuff. Notice how much work goes into each decision, and ask yourself how important each one really is. Then for the decisions that aren’t worth the cost of deciding, just flip a coin. You’ll free up your mind and you’ll move things forward, and all for less than it would take to make a decision.

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The Tragedy of the Commons is a situation where players cooperate or everyone loses, yet each individual has incentive not to cooperate. Also known as the “Prisoner’s Dilemma,” here’s a sample Tragedy of the Commons: farmers graze their cows on a shared grassy area called the Commons. The Commons can support 100 cows. One hundred farmers each bring a cow, and the eatin’s good. But each farmer thinks, “If I bring one extra cow, it doubles my entire income and only puts a 1% drain on the Commons.” All 100 farmers think this, all bring one extra cow, and 200 cows quickly overgraze the Commons. It dies completely, and then, so do the cows, followed by the farmers.

Pollution fits this structure. The Commons is nature’s ability to absorb the pollution. The benefit of polluting to any one polluter is great–they save clean-up costs. But when every producer does this calculation, rivers and landscapes quickly become clogged with pollution.

Energy usage fits this structure. The Commons is energy. The benefit to living in a suburb and driving to work is huge–I get lots of land, a nice yard, and a big house, and pay relatively little for a car and gas. But when 350 million Americans all make this trade-off, we’re suddenly using 40% of the world’s oil driving prices up. We don’t know how this one plays out, yet, but it will be interesting, since our physical sprawl makes cars a survival necessity, not a choice, for almost everyone.

Advertising fits this structure. Any one advertiser can get great returns by sending you junk mail, putting ads on your favorite TV shows, and putting up billboards on your roads. When all advertisers do this, you get so overloaded with messages than now it takes 20 ad impressions for you to pick a product out of the crowd. So now all advertisers must advertise so much that they spend a fortune, and you get overloaded. I no longer even look at my paper mail, and I get around 6-10 pieces a day. A one-week trip brings me back to a stack of 60-100 items. It goes straight into the trash. So now, it’s not clear advertisers can reach me at all.

Littering fits this structure. Any one person finds it convenient to dump their trash on the ground, leaving it for someone else (mom?) to pick up. When everyone in a neighborhood does this, they end up living in a garbage heap. Eventually, no one even sees a point in using the trash can any more and the litter accelerates.

I also think social networking sites are a Tragedy of the Commons. I’m not yet completely sure, though. Time will tell.

The “Tragedy” Can Be Used for Good

The Tragedy works in reverse, too. There are times when no one person has incentive to do a good thing, yet a small contribution by every person adds up to a huge Good Thing. Consider building an interstate highway system. No one person could pay for it, and even if they could, they could never collect enough in revenue to maintain it and make it worthwhile. Yet building it brings great benefit to everyone. The neat thing is that if every person pays just a little bit, we collect enough in total to take on the project. That’s where taxes really shine as a financing device; they’re one of the few good ways to finance building shared resources. Everyone pays a relatively small amount, and we get services that give far more benefit.

Public schools are another example. It’s cheaper for us all to pay a little in taxes and end up with schools for everyone. (Yes, you can complain about the quality of our existing school system, but the quality problems have less to do with the funding and more to do with our model of education.)

Fire protection is another example. While typing this, I received a call from the Volunteer Fireman’s Committee asking for donations. It’s a scary request, as it implies I won’t get fire protection without paying. Yet I’m happy to pay for firemen through my taxes. That way, we all contribute, and we have a fire prevention infrastructure that benefits us all.

Managing the Tragedy is a Fundamental Role of Government

I believe Governments are the only players in our world who can manage the Tragedy of the Commons. Our markets are built on the assumption that each customer/supplier should be free to pursue their maximum self-interest. The Government introduces regulation, tariffs, etc. designed to spread the Commons risk among market players, so the market can function and produce what’s best for civilization overall.

Sadly, I don’t think politicians or voters consider this, so the mechanism fails. Regulation isn’t inherently good or bad; it’s simply the only way to avert certain Tragedies of the Commons. Taxes aren’t inherently good or bad (though many would like you to believe that for their own political agendas); they’re simply one way to raise funds for projects that would otherwise never happen due to Tragedies.

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The love of money isn’t the root of all evil; arithmetic is the root of all evil. More specifically, counting.

Don’t get me wrong; counting was a wonderful invention. It has its uses. We can keep track of kids: “Are all 5 kids here? Let’s see, 1… 2… 3… 4… where’s Billy?” We can keep track of time. “He’s working overtime in the salt mines, honey. Instead of 12 hours, he’s working 14 hours today. He’ll be home at … 9, 10. Yes, 10 p.m.” And we can keep track of money: “He gets paid $1.49/hour working overtime, so our bank balance will be $11.37 … $12.37 … $13.37 … $13.86 after Billy gives us his share.” In fact, they remind us over and over in MBA school that “What gets measured, gets managed.”

So where’s the problem? This is evil? This gave us the industrial-friggin’-revolution. This sounds great!!

We measure the wrong stuff

Well, the problem starts when we choose what to measure. We often measure what doesn’t lead to our goal, and expect the measuring to magically create the managing.

Want profit? Let’s count expenses. Tell all managers to submit weekly reports of their team’s expenses. Let’s call it a TPS Report, and count how many TPS reports people send, to make sure they’re doing their job (which has silently morphed from “running a profitable business” to “submitting TPS reports”). Well, whoopie. We’ve added a whole layer of useless counting, and then another layer to count who is and isn’t counting. Since we don’t actually know what to do with the silly TPS report, we slide further from profitability. We’re counting the wrong thing.

Or how about sick days? There’s a hoot. “You only get six sick days.” Nice. Like that’s controllable. If you’re sick for seven days, come on in and give it to everyone else in your department, so everyone has to take six days off. You can measure sick days, but the measure is useless.

Seemingly meaningful measurements … aren’t

Then we make up measurements that mean nothing and try to manage those. “Let’s rank our employees. Then we can fire the bottom 10%.” Sounds easy; isn’t easy. (Sadly, however, it is a much-publicized Jack Welch policy.) How much time will managers spend on this ranking exercise? Do they apply consistent standards that are directly related to the company’s goals? Do we fire the 10% of managers whose ranking skill is in the bottom 10%? Who decides that?

Ranking is hard. Really hard. In fact, in 1963, psychologist George Miller’s famous paper “The Magic Number 7 +/- 2″ presented results showing people can make ranking distinctions between 5 to 9 items, and then we pretty much lose track. If you think you can accurately rank a 250-person department, you’re deluded and thus in the bottom 10%; it’s time to pack your bags.

Even if you can rank, can you use the rankings for action? We want to punt the bottom 10% of the company. We can’t really compare an accountant against a design engineer, so our fresh new Harriford MBA, Darren, suggests we eliminate 10% of each department. That will add up to 10% of the company.

But what if our 30 design engineers rock, while our 30 accountants all suck eggs? As a company, we want to fire six accountants (10% of 60 employees) and no design engineers. But firing 10% of each department means we leave three mediocre accountants standing, and three rockin’ design engineers out of work. That’s clearly wrong. But we get one benefit: we know Darren didn’t understand the logic of firing, so we know he’s in the bottom 10% and should be fired. Success! We have at least one confirmed cost savings from this exercise.

Measurement turns us evil

I know you’re asking: what in heaven’s name does this have to do with spirituality, morality, and/or the rest of our lives? (If you weren’t asking that, don’t worry, just go with the flow.)

Here’s where the evil comes in. We only measure so we can make decisions about those measurements and change our behavior. But we do this by judging the measurements as “good” or “bad.” When we’re measuring a “bad” trend, we panic. We’re afraid. We’re angry. We get frustrated, anxious, mean, jealous, violent, and nasty.

How do people act when they feel anxious, mean, jealous, violent, and nasty? Fortunately, we live in a Highly Evolved Society, so we meditate for five minutes, do some yoga, and we’re fine. NOT! Most people want to get rid of the bad feelings. Some fudge the numbers and play financial games. Think Enron. Some people hit something. Some people treat everyone around like crap. And some people blame.

Yes, they blame. They blame colleagues. “Sales are down! Sally distracted me so I lost the big prospect.” They blame loved ones. “I went over my sick day quota since I had to take Billy to treatment for his Black Lung disease.” They blame the government.”If it weren’t for the (Republicans/Democrats), (the economy/the occupation/global warming/life/love/happiness) would be better.” And they blame themselves. “I’m just a failure.”

All because they counted, then got emotionally wedded to the counting.

What counts and what doesn’t?

I’ve been talking so far about business, only not really. We count the wrong things in business, we count the wrong things in life. We go to pieces when our business counts go off-track, we go to pieces when our real-life counts go off-track. And remember, real life counts more. Where do you get caught in the counting?

Some of us count who’s done more housework, us or our spouse. Some of us count the dollars in our savings account. Some of us count what someone does to prove they love us. Some of us count how pious our neighbors are. It all turns into judgment, and from there, into emotion. When the counting is going the way we want, we think life is good. When the counting goes the other way, we get upset.

The upset is extra, though! It’s our reaction to the counting. The counting doesn’t cause the problem; it’s our stories about the counting that cause the problem.

Let’s fix this. Let counting be counting. Let emotion be emotion. All this score-keeping, counting, and measuring is made up. It’s all fantasy. It’s a convenient tool for making decisions. But it’s not real. And it’s certainly not worth turning yourself into an ogre, feeling horrible, and abusing yourself and your loved ones.

What if you count and discover your bank account isn’t high enough to send your kids to college? Don’t get upset. Use it as information and change your savings plan. But don’t beat yourself up. You can’t do anything for your kids that way, except set a bad example. Use the information to stay centered and work with the people you love to fix the situation.

What if you count and discover your spouse overcharged on the credit card? You can fly into a rage, or you can sit down with your spouse, love each other tremendously, and decide from that place how you’ll deal with the situation. I used the “fly-into-a-rage” method several times. It didn’t pay the bill, nor did it make me an attractive snuggle partner, even to our stuffed animals. The counting-as-information plus love-then-problem-solving works way better.

What if you count pounds, and discover you have more than you want? You can get depressed and eat a chocolate cake to help yourself feel better (Stever’s diet advice: learn to distinguish “sugar rush” from “feel better”). Or realize the number’s just information you can use to change your diet. If you’re going to diet, doing it from a place of fun makes it … well … more fun. And if you’re not going to diet, then at least enjoy the chocolate cake. But don’t let counting trick you into not-dieting, and also not enjoying the cake. That’s plain foolishness!

And what if you count and discover you’re not as rich as Darren, despite your superior skills? Or you’re not as rich as the goal you set at age 23? You can call yourself a failure and jump out of a plane without a parachute. That’s one solution. But maybe you can notice that a number is just a number, while you’re an entire human being who has much more to offer than a number.

Counting is optional. If you stop counting and look around, you just might find you’re warm, dry, full, and reading the web. And that’s not such a bad place to be. So count only when it’s useful, don’t take it too seriously, and feel good either way. Move your attention from counting to living. Put your attention on the things that make you feel happy, joyous, and grateful. If you must count, count those, and every day, count a little higher. It’s your life, and only you can make your counting count.