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the human mind does not run on logic any more than a horse runs on petrol
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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It is much easier to be fired for being illogical than it is for being unimaginative. The fatal issue is that logic always gets you to exactly the same place as your competitors.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Not everything that makes sense works, and not everything that works makes sense.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Irrational people are much more powerful than rational people, because their threats are so much more convincing.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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the uber map is a psychological moonshot, because it does not reduce the waiting time for a taxi but simply makes waiting 90% less frustrating
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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you are not thinking; you are merely being logical
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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And in reality ‘context’ is often the most important thing in determining how people think, behave and act:
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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It’s important to remember that big data all comes from the same place – the past. A new campaigning style, a single rogue variable or a ‘black swan’ event can throw the most perfectly calibrated model into chaos.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Hillary thinks like an economist, while Donald is a game theorist, and is able to achieve with one tweet what would take Clinton four years of congressional infighting. That’s alchemy; you may hate it, but it works.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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when you demand logic, you pay a hidden price: you destroy magic
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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it is perfectly possible to be both rational and wrong.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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what matters is not whether an idea is true or effective, but whether it fits with the preconceptions of a dominant cabal
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Evolution is like a brilliant uneducated craftsman: what it lacks in intellect it makes up for in experience.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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You will never uncover unconscious motivations unless you create an atmosphere in which people can ask apparently fatuous questions without fear of shame.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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There is an important lesson in evaluating human behaviour: never denigrate a behaviour as irrational until you have considered what purpose it really serves.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The trouble with market research is that people don’t think what they feel, they don’t say what they think, and they don’t do what they say.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Many pretend to despise and belittle that which is beyond their reach.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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No living creature can evolve and survive in the real world by processing information in an objective, measured and proportionate manner.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Remember, if you never do anything differently, you’ll reduce your chances of enjoying lucky accidents.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Our conscious mind tries hard to preserve the illusion that it deliberately chose every action you have ever taken; in reality, in many of these decisions it was a bystander at best, and much of the time it did not even notice the decision being made.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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all big data comes from the same place: the past. Yet a single change in context can change human behaviour significantly.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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We don’t value things; we value their meaning. What they are is determined by the laws of physics, but what they mean is determined by the laws of psychology.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The number of people who think they understand statistics dangerously dwarfs those who actually do, and maths can cause fundamental problems when badly used.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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For a business to be truly customer-focused, it needs to ignore what people say. Instead it needs to concentrate on what people feel.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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And what is the single most important finding of the advertising industry? Perhaps it is that ‘advertisements featuring cute animals tend to be more successful than ads that don’t’.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Some scientists believe that driverless cars will not work unless they learn to be irrational. If such cars stop reliably whenever a pedestrian appears in front of them, pedestrian crossings will be unnecessary and jaywalkers will be able to march into the road, forcing the driverless car to stop suddenly, at great discomfort to its occupants. To prevent this, driverless cars may have to learn to be ‘angry’, and to occasionally maliciously fail to stop in time and strike the pedestrian on the shins.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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The reason this inefficient process is necessary is because most of the achievements of consumer capitalism were never planned and are explicable only in retrospect, if at all.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Engineering doesn’t allow for magic. Psychology does.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Find one or two things your boss is rubbish at and be quite good at them.’ Complementary talent is far more valuable than conformist talent.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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We constantly rewrite the past to form a narrative which cuts out the non-critical points – and which replaces luck and random experimentation with conscious intent.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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It is harder to like something when you haven’t chosen it.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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All too often, what matters is not whether an idea is true or effective, but whether it fits with the preconceptions of a dominant cabal.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Trust grows at the speed of a coconut tree and falls at the speed of a coconut.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Rory’s Rules of Alchemy The opposite of a good idea can also be a good idea. Don’t design for average. It doesn’t pay to be logical if everyone else is being logical. The nature of our attention affects the nature of our experience. A flower is simply a weed with an advertising budget. The problem with logic is that it kills off magic. A good guess which stands up to observation is still science. So is a lucky accident. Test counterintuitive things only because no one else will. Solving problems using rationality is like playing golf with only one club. Dare to be trivial. If there were a logical answer, we would have found it.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Why are people happy with the idea that nature has an accounting function, but much less comfortable with the idea that it also has a marketing function? Should we despise flowers because they are less efficient than grasses?
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The same is true of scientific progress. It is easy to depict a discovery, once made, as resulting from a logical, and linear process, but that does not mean that science should progress according to neat, linear and sequential rules.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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People who are not skilled at mathematics tend to view the output of second-rate mathematicians with an high level of credulity, and attach almost mystical significance to their findings. Bad maths is the palmistry of the twenty-first century.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Don’t design for average. Metrics, and especially averages, encourage you to focus on the middle of a market, but innovation happens at the extremes. You are more likely to come up with a good idea focusing on one outlier than on ten average users.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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It seems likely that the biggest progress in the next 50 years may come not from improvements in technology but in psychology and design thinking. Put simply, it’s easy to achieve massive improvements in perception at a fraction of the cost of equivalent improvements in reality.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Strangely, as we have gained access to more information, data, processing power and better communications, we may also be losing the ability to see things in more than one way; the more data we have, the less room there is for things that can’t easily be used in computation. Far from reducing our problems, technology may have equipped us with a rational straitjacket that limits our freedom to solve them.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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However, misunderstandings are all too common, because Dutch conversation tends to be astoundingly direct, while British English is oblique and often coded to the point of derangement. In a business context a Dutchman might say, ‘We tried that and it was shit, so we won’t do it again,’ while an Englishman intending to say the same thing might say, ‘I think it might be a little while before we try that again.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Here’s Ogilvy’s contemporary, Bill Bernbach: ‘Human nature hasn’t changed for a million years. It won’t even change in the next million years. Only the superficial things have changed. It is fashionable to talk about the changing man. A communicator must be concerned with the unchanging man – what compulsions drive him, what instincts dominate his every action, even though his language too often camouflages what really motivates him.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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The term affordance refers to the perceived and actual properties of the thing, primarily those fundamental properties that determine just how the thing could possibly be used. [. . .] Affordances provide strong clues to the operations of things. Plates are for pushing. Knobs are for turning. Slots are for inserting things into. Balls are for throwing or bouncing. When affordances are taken advantage of, the user knows what to do just by looking: no picture, label, or instruction needed.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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mentioned earlier in this book that there are five main reasons why human behaviour often departs from what we think of as conventional rationality. The first of these is signalling, the need to send reliable indications of commitment and intent, which can inspire confidence and trust. Cooperation is impossible unless a mechanism is in place to prevent deception and cheating; some degree of efficiency often needs to be sacrificed in order to convey trustworthiness or to build a reputation.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Like bees with flowers, we are drawn to reliable signals of honest intent, and we choose to do business where those signals are found. This explains why we generally buy televisions from shops rather than from strangers on the street – the shop has invested in stock, it has a stable location and it is vulnerable to reputational damage. We do this instinctively; what we are prepared to pay for something is affected not only by the item itself but by the trustworthiness and reputation of the person selling it.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Japanese is a highly context-sensitive language, but then so are all languages. In British English, when said in the right context and tone, ‘You stupid fucking idiot’ can be a term of affection – something that can wrongfoot Americans, who mostly speak the same language but tend to interpret it more literally.* In translation, it is an enormous mistake to assume that what the translator conveys is what the speaker intended, and it is equally foolish to assume that what you intended to say is what will be understood.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Geim says of his approach to science: ‘I jump from one research subject to another every few years. I do not want to study the same stuff “from cradle to coffin”, as some academics do. To be able to do this, we often carry out what I call “hit-and-run experiments”, crazy ideas that should never work and, of course, they don’t in most cases. However, sometimes we find a pearl . . . This research style may sound appealing but it is very hard psychologically, mentally, physically, and in terms of research grants, too. But it is fun.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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It wouldn’t matter much if only Goldman Sachs, say, or a few elite institutions used this criterion, but when everyone else copies the same approach, it is ludicrous. Since almost half of graduates should by definition fall below this hurdle, it will either result in thousands of people spending three years at university for no benefit or to grade inflation in universities, with degree classes becoming meaningless.* This is another example of people not using reason to make better decisions, but simply for the appearance of being reasonable.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Let me give a simple example. The Uber map is a psychological moonshot, because it does not reduce the waiting time for a taxi but simply makes waiting 90 per cent less frustrating. This innovation came from the founder’s flash of insight (while watching a James Bond film, no less*) that, regardless of what we say, we are much bothered by the uncertainty of waiting than by the duration of a wait. The invention of the map was perhaps equivalent to multiplying the number of cabs on the road by a factor of ten – not because waiting times got any shorter, but because they felt ten times less irritating.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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A knowledge of the human physique is considered essential in designing a chair, but a knowledge of human psychology is rarely considered useful, never mind a requirement, when someone is asked to design a pension scheme, a portable music player or a railway. Who is the Herman Miller of pensions, or the Steve Jobs of tax-return design? These people are starting to emerge – but it has been a painfully long wait. If there is a mystery at the heart of this book, it is why psychology has been so peculiarly uninfluential in business and in policy-making when, whether done well or badly, it makes a spectacular difference.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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The theory is that free markets are principally about maximising efficiency, but in truth, free markets are not efficient at all. Admiring capitalism for its efficiency is like admiring Bob Dylan for his singing voice: it is to hold a healthy opinion for an entirely ridiculous reason. The market mechanism is loosely efficient, but the idea that efficiency is its main virtue is surely wrong, because competition is highly inefficient. Where I live, I can buy groceries from about eight different places; I’m sure it would be much more ‘efficient’ if Waitrose, M&S, Lidl and the rest were merged into one huge ‘Great Grocery Hall of The People’.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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This distinction matters a great deal. Unlike short-term expediency, long-term self-interest, as the evolutionary biologist Robert Trivers has shown, often leads to behaviours that are indistinguishable from mutually beneficial cooperation. The reason the large fish does not eat its cleaner fish is not because of altruism but because over the long-term, the cleaner fish is more valuable to it alive than dead. The cleaner fish in turn could cheat by ignoring the ectoparasites and eating bits of the host fish’s gills instead, but its long-term future is better if the big fish becomes a repeat customer.* What keeps the relationship honest and mutually beneficial is nothing other than the prospect of repetition.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
Metrics, and especially averages, encourage you to focus on the middle of a market, but innovation happens at the extremes. You are more likely to come up with a good idea focusing on one outlier than on ten average users. We were discussing this recently in a meeting when a round of sandwiches arrived. ‘This proves my point exactly,’ I said, pointing at the food. The sandwich was not invented by an average eater. The Earl of Sandwich was an obsessive gambler, and demanded food in a form that would not require him to leave the card table while he ate. Weird consumers drive more innovation than normal ones. By contrast, it is perfectly possible that conventional market research has, over the past fifty years, killed more good ideas than it has spawned, by obsessing with a false idea of representativeness.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
After all, no big business idea makes sense at first. I mean, just imagine proposing the following ideas to a group of sceptical investors: ‘What people want is a really cool vacuum cleaner.’ (Dyson) ‘. . . and the best part of all this is that people will write the entire thing for free!’ (Wikipedia) ‘. . . and so I confidently predict that the great enduring fashion of the next century will be a coarse, uncomfortable fabric which fades unpleasantly and which takes ages to dry. To date, it has been largely popular with indigent labourers.’ (Jeans) ‘. . . and people will be forced to choose between three or four items.’ (McDonald’s) ‘And, best of all, the drink has a taste which consumers say they hate.’ (Red Bull) ‘. . . and just watch as perfectly sane people pay $5 for a drink they can make at home for a few pence.’ (Starbucks)*
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
Behavioural economics is an odd term. As Warren Buffett’s business partner Charlie Munger once said, ‘If economics isn’t behavioural, I don’t know what the hell is.’ It’s true: in a more sensible world, economics would be a subdiscipline of psychology.* Adam Smith was as much a behavioural economist as an economist – The Wealth of Nations (1776) doesn’t contain a single equation. But, strange though it may seem, the study of economics has long been detached from how people behave in the real world, preferring to concern itself with a parallel universe in which people behave as economists think they should. It is to correct this circular logic that behavioural economics – made famous by experts such as Daniel Kahneman, Amos Tversky, Dan Ariely and Richard Thaler – has come to prominence. In many areas of policy and business there is much more value to be found in understanding how people behave in reality than how they should behave in theory.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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seems astonishing now, but the predictions of the future I read as a child assumed that meals would be replaced by parcels of nutrients consumed in handy tablet form – it was for some reason thought that the purpose of food was to provide the necessary minerals, vitamins, protein and energy, and that the job of the food industry was to supply them in as efficient a form possible. Some forward-thinking people had defined food’s function narrowly, in order to create a rational model of what the food industry should do.* In this focus on scale and efficiency, people lost sight of what food is for; while it is, of course, a form of nourishment, it also serves a host of other ends. The proponents of delivering food in pill form had lost sight of the fact that it is enjoyable to eat and a necessary prop at social occasions.* Even if such pills could be produced, it is perfectly plausible that people who ate only such food would be utterly miserable.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
The Netflix documentary Sour Grapes is a fascinating insight into this world. A crooked, though brilliant, Indonesian wine connoisseur called Rudy Kurniawan was able to replicate great burgundies by mixing cheaper wines together, before faking the corks and the labels. He was rumbled only when he attempted to fake wines from vintages that did not exist. I am told that it is possible to detect a forged Kurniawan wine by analysing the labels, but not by tasting the wine. I hate to say this, but Rudy was an alchemist. Several experts I have talked to in the high-end wine business regard their own field as essentially a placebo market; one of them admitted that he was relatively uninterested in the products he sold and would sneak off and fetch a beer at premium tastings of burgundies costing thousands of pounds a bottle. Another described himself as ‘the eunuch in the whorehouse’ – someone who was valuable because he was immune to the charms of the product he promoted.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
A few years ago, the British chocolate manufacturer Cadbury’s received a large number of customer complaints, claiming that they had changed the taste of their Dairy Milk brand. They were at first baffled, because the formulation hadn’t been altered for years. However, what they had done was change the shapes of the blocks you would break off a bar, rounding their corners. And smoother shapes taste sweeter. Truly. Nothing about perception is completely objective, even though we act as though it is. When we complain that a room is hot, there may be no point at which we agree about what ‘hot’ means; it may merely mean ‘a few degrees warmer than the room I was in previously, to which I have become acclimatised’. ‘Time flies when you are having fun’ is an early piece of psychophysical insight. To your watch, an hour always means exactly the same thing, regardless of whether you are drinking champagne or being waterboarded. However, to the human brain, the perception of time is more elastic.*
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
There is a parallel in the behaviour of bees, which do not make the most of the system they have evolved to collect nectar and pollen. Although they have an efficient way of communicating about the direction of reliable food sources, the waggle dance, a significant proportion of the hive seems to ignore it altogether and journeys off at random. In the short term, the hive would be better off if all bees slavishly followed the waggle dance, and for a time this random behaviour baffled scientists, who wondered why 20 million years of bee evolution had not enforced a greater level of behavioural compliance. However, what they discovered was fascinating: without these rogue bees, the hive would get stuck in what complexity theorists call ‘a local maximum’; they would be so efficient at collecting food from known sources that, once these existing sources of food dried up, they wouldn’t know where to go next and the hive would starve to death. So the rogue bees are, in a sense, the hive’s research and development function, and their inefficiency pays off handsomely when they discover a fresh source of food. It is precisely because they do not concentrate exclusively on short-term efficiency that bees have survived so many million years.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
Even stranger than our teeth-brushing behaviour is our preference for stripy toothpaste. When it first appeared, in a product called Stripe, it aroused a great deal of debate over how it was made. Many people dissected the empty container; others froze a full tube and then cut it open in a cross section.* What was strange was that nobody ever asked ‘Why?’ After all, the moment toothpaste enters your mouth, all the ingredients are mixed together, so what was the point of keeping them separate in the tube? There are two explanations: 1) simple childish novelty and 2) psycho-logic. Psychologically, the stripes serve as a signal: a claim that a toothpaste performed more than one function (fighting cavities, tackling infection and freshening breath) was thought to be more convincing if the toothpaste contained three visibly separate active ingredients. In general, people are impressed by any visible extra effort that goes into a product: if you simply say ‘this washing powder is better than our old powder’, it is a hollow claim. However, if you replace the powder with a gel, a tablet or some other form, the cost and effort which have gone into the change make it more plausible to the purchaser there may have been some real innovation in the new contents.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
The mythical ‘butterfly effect’ does exist, but we don’t spend enough time butterfly hunting. Here are some recent butterfly effect discoveries, from my own experience: A website adds a single extra option to its checkout procedure – and increases sales by $300m per year. An airline changes the way in which flights are presented – and sells £8m more of premium seating per year. A software company makes a seemingly inconsequential change to call-centre procedure – and retains business worth several million pounds. A publisher adds four trivial words to a call-centre script – and doubles the rate of conversion to sales. A fast-food outlet increases sales of a product by putting the price . . . up. All these disproportionate successes were, to an economist, entirely illogical. All of them worked. And all of them, apart from the first, were produced by a division of my advertising agency, Ogilvy, which I founded to look for counter-intuitive solutions to problems. We discovered that problems almost always have a plethora of seemingly irrational solutions waiting to be discovered, but that nobody is looking for them; everyone is too preoccupied with logic to look anywhere else. We also found, rather annoyingly, that the success of this approach did not always guarantee repeat business; it is difficult for a company, or indeed a government, to request a budget for the pursuit of such magical solutions, because a business case has to look logical.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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As Nassim Nicholas Taleb remarks, ‘the way a question is phrased is itself information’.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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At its worst, neo-liberalism takes a dynamic system like free market capitalism, which is capable of spectacular creativity and ingenuity, and reduces it to a boring exercise in ‘how we can buy these widgets 10 per cent cheaper’. It has also propelled a narrow-minded technocratic caste into power, who achieve the appearance of expert certainty by ignoring large parts of what makes markets so interesting.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
Weird consumers drive more innovation than normal ones. By contrast, it is perfectly possible that conventional market research has, over the past fifty years, killed more good ideas than it has spawned, by obsessing with a false idea of representativeness.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Because in order to form universal laws, naïve rationalists have to pretend that context doesn’t matter.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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Logic requires that people find universal laws, but outside of scientific fields, there are fewer of these than we might expect.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
Think about it. There are some phrases that just wouldn’t appear in the English language:* ‘I chose not to be angry.’ ‘He plans to fall in love at 4.30pm tomorrow.’ ‘She decided that she was no longer to feel uneasy in his presence.’ ‘From that moment on, she determined no longer to be afraid of heights.’* ‘He decided to like spiders and snakes.’ Things like this are not under our direct control, but are rather the product of instinctive and automatic emotions. There is a good evolutionary reason why we are imbued with these strong, involuntary feelings: feelings can be inherited, whereas reasons have to be taught, which means that evolution can select for emotions much more reliably than for reasons. To ensure your survival, it is much more reliable for evolution to give you an instinctive fear of snakes at birth than relying on each generation to teach its offspring to avoid them. Things like this aren’t in our software – they are in our hardware.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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In the words of Jonathan Haidt,* ‘The conscious mind thinks it’s the Oval Office, when in reality it’s the press office.’ By this he means that we believe we are issuing executive orders, while most of the time we are actually engaged in hastily constructing plausible post-rationalisations to explain decisions taken somewhere else, for reasons we do not understand. But the fact that we can deploy reason to explain our actions post-hoc does not mean that it was reason that decided on that action in the first place, or indeed that the use of reason can help obtain it.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
“
Imagine an alien species with the power to fall asleep at will – they would regard human bedtime behaviour as essentially ridiculous. ‘Rather than just going to sleep, they go through a strange religious ritual,’ an alien anthropologist would remark. ‘They turn off lights, reduce all noise to a minimum and then remove the seven decorative cushions which for no apparent reason are placed at the head of the bed.* Then they lie in silence and darkness, in the hope that sleep descends upon them. And rather than simply waking up when they wish, they program a strange machine which sounds a bell at an appointed time, to nudge them back into consciousness. This seems ridiculous.’ Similarly, imagine an alien species that could decide how happy it wanted to be. They would regard the entire human entertainment industry as a spectacular economic waste.
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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At some point, we have to ask a vital question: do these various things work despite the fact that they are illogical, or do they work precisely because they are? And if our unconscious instincts are programmed to respond to and to generate behaviours precisely because they deviate from economic optimality, what might be the evolutionary reason for this? It seems rather like the lesson that is taught to aspiring journalists: ‘Dog Bites Man’ is not news, but ‘Man Bites Dog’ is. Meaning is disproportionately conveyed by things that are unexpected or illogical, while narrowly logical things convey no information at all. And this brings us full circle, to the explanation of costly signalling. Part 5: Satisficing
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Rory Sutherland (Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life)
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People with approval ratings below 97 per cent can barely sell equivalent goods for half the price of sellers with a track record of 100 per cent satisfaction.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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What this product needs is a brand. Without a distinctive brand identity, there is no incentive to improve your product – and no way for customers to choose well, or to reward the best manufacturer.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Branding isn’t just something to add to great products – it’s essential to their existence.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The main value of having a swimming pool at home is not that you swim in it, but that it allows you to walk around your garden in a bathing costume without feeling like an idiot.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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A company pursuing only profit but not considering the impact of its profit-seeking upon customer satisfaction, trust or long-term resilience, could do very well in the short term, but its long-term future may be rather perilous.fn2
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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without these rogue bees, the hive would get stuck in what complexity theorists call ‘a local maximum’; they would be so efficient at collecting food from known sources that, once these existing sources of food dried up, they wouldn’t know where to go next and the hive would starve to death. So the rogue bees are, in a sense, the hive’s research and development function, and their inefficiency pays off handsomely when they discover a fresh source of food. It is precisely because they do not concentrate exclusively on short-term efficiency that bees have survived so many million
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The nature of our attention affects the nature of our experience.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The existing letter, which had grown to a disproportionate length, was in danger of creating confusionfn3 – if this product was as simple and sensible as it really seemed, why were they selling it so hard? We tested a two-paragraph letter. Fortunately, I was right. What had emerged was that there were two ways to sell this product: with a very long letter – which was reassuring because it was long, and with a very short letter – which was reassuring because it was very short.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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if we allow the world to be run by logical people, we will only discover logical things. But in real life, most things aren’t logical – they are psycho-logical.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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We will pay a disproportionately high premium for the elimination of a small degree of uncertainty – why this matters so much is that it finally explains the brand premium that consumers pay.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Without the feedback loop made possible by distinctive and distinguishable petals or brands, nothing can improve.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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there are no SI units for what really matters.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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And in reality ‘context’ is often the most important thing in determining how people think, behave and act: this simple fact dooms many universal models from the start.fn11 Because in order to form universal laws, naïve rationalists have to pretend that context doesn’t matter.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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In his book Skin in the Game (2018), Taleb includes what might be the most interesting quotation on an individual’s politics I have ever read. Someonefn3 explains how, depending on context, he has entirely different political preferences: ‘At the federal level I am a Libertarian. At the state level, I am a Republican. At the town level, I am a Democrat. In my family I am a socialist. And with my dog I am a Marxist – from each according to his abilities, to each according to his needs.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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We can see this diversity mechanism clearly in house hunting. If I were to give you a budget to choose your perfect house, you would have a clear idea of what to buy, but it would typically be a bit boring. That’s because when you have one house, it cannot be too weak in any one dimension: it cannot be too small, too far from work, too noisy or too weird, so you’ll opt for a conventional house. On the other hand, if I were to double your budget and tell you to buy two houses, your pattern of decision-making would change. You would now be looking to buy two significantly different properties with complementary strengths – perhaps a flat in the city and a house in the countryside.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Why do people hate waiting for an engineer’s appointment?’ ‘Why do people not like it when their flight is delayed?’ ‘Why do people hate standing on trains?’ All of these questions seem facile – and because of this, our rationalising brains find it dangerously easy to come up with a plausible answer. But just because there is a rational answer to something, it doesn’t mean that there isn’t a more interesting, irrational answer to be found in the unconscious.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Experimentation is the only reliable way of testing, so we measure the effect of engineers’ texts on customer satisfaction against a control group who receive no such early warning.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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the study of economics has long been detached from how people behave in the real world, preferring to concern itself with a parallel universe in which people behave as economists think they should.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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knowledge of human psychology is rarely considered useful, never mind a requirement, when someone is asked to design a pension scheme, a portable music player or a railway. Who is the Herman Miller of pensions, or the Steve Jobs of tax-return design? These people are starting to emerge – but it has been a painfully long wait. If there is a mystery at the heart of this book, it is why psychology has been so peculiarly uninfluential in business and in policy-making when, whether done well or badly, it makes a spectacular difference.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Credit card companies have discovered this already, with promises like ‘Apply now and get approval within 12 hours’ – they found, through testing, accident or experimentation, that this made a difference to people’s keenness to respond. Whether you’re carrying out market research or using neoclassical economic assumptions, you wouldn’t realise that the amount of time spent in uncertainty might be an important factor.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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In maths, 10 x 1 is always the same as 1 x 10, but in real life, it rarely is. You can trick ten people once, but it’s much harder to trick one person ten times.fn2 But how many other things are predicated on such assumptions?
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The inherent flaws of mathematical models are well understood by good mathematicians, physicists and statisticians, but very badly understood by those who are merely competent.fn2
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The quandary is that you can either create a fairer, more equitable society, with opportunities for all but where luck plays a significant role, or you can create a society which maintains the illusion of complete and non-random fairness, yet where opportunities are open to only a few – the problem is that when ‘the rules are the same for everyone’ the same boring bastards win every time.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The strongest marketing approach in a business-to-business context comes not from explaining that your product is good, but from sowing fear, uncertainty and doubt (now commonly abbreviated as FUD) around the available alternatives. The desire to make good decisions and the urge not to get fired or blamed may at first seem to be similar motivations, but they are, in fact, never quite the same thing, and may sometimes be diametrically different.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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However, the problem will never go away, because the number of people who think they understand statistics dangerously dwarfs those who actually do, and maths can cause fundamental problems when badly used.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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the reason we don’t always obey our GPS is not because we are wrong: it is because there are important factors in our journey-planning that the GPS is completely ignorant of.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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we do not have full access to the reasons behind our decision-making because, in evolutionary terms, we are better off not knowing; we have evolved to deceive ourselves, in order that we are better at deceiving others. Just as there are words that are best left unspoken, so there are feelings that are best left unthought.fn5
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Upfront investment is proof of long-term commitment, which is a guarantor of honest behaviour.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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Nicholas Humphrey argues that placebos work by prompting the body to invest more resources in its recovery.fn2 He believes that evolution has calibrated our immune system to suit a harsher environment than the current one, so we need to convince our unconscious that the conditions for recovery are especially favourable in order for our immune system to work at full tilt.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)
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The department devised a plan, aimed at luring in female students and making sure they actually enjoyed their computer science initiation, in the hopes of converting them to majors. A course previously entitled ‘Introduction to programming in Java’ was renamed ‘Creative approaches to problem solving in science and engineering using Python’.
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Rory Sutherland (Alchemy: The Surprising Power of Ideas That Don't Make Sense)