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    Sway Book Summary

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    Narayan Singhania
    This document summarizes key points from the book "Sway" by Ori and Rom Brafman. It discusses several cognitive biases and irrational behaviors that influence human decision-making. Some of the biases described include diagnosis bias, where we ignore evidence contradicting our initial view of a person or situation; loss aversion, where we go to great lengths to avoid potential losses; and value attribution, where we assign value to people and things based on initial perceptions rather than objective data. The document also explains how these biases can cause us to disregard objective information, make poor financial decisions, and negatively impact our professional judgment. Group dynamics are also discussed, including the roles of "blockers," who question decisions, and "initiators

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    Sway Book Summary

    Uploaded by

    Narayan Singhania
    200 views4 pages
    This document summarizes key points from the book "Sway" by Ori and Rom Brafman. It discusses several cognitive biases and irrational behaviors that influence human decision-making. Some of the biases described include diagnosis bias, where we ignore evidence contradicting our initial view of a person or situation; loss aversion, where we go to great lengths to avoid potential losses; and value attribution, where we assign value to people and things based on initial perceptions rather than objective data. The document also explains how these biases can cause us to disregard objective information, make poor financial decisions, and negatively impact our professional judgment. Group dynamics are also discussed, including the roles of "blockers," who question decisions, and "initiators

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    This document summarizes key points from the book "Sway" by Ori and Rom Brafman. It discusses several cognitive biases and irrational behaviors that influence human decision-making. Some of the biases described include diagnosis bias, where we ignore evidence contradicting our initial view of a person or situation; loss aversion, where we go to great lengths to avoid potential losses; and value attribution, where we assign value to people and things based on initial perceptions rather than objective data. The document also explains how these biases can cause us to disregard objective information, make poor financial decisions, and negatively impact our professional judgment. Group dynamics are also discussed, including the roles of "blockers," who question decisions, and "initiators

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    200 views4 pages

    Sway Book Summary

    Uploaded by

    Narayan Singhania
    This document summarizes key points from the book "Sway" by Ori and Rom Brafman. It discusses several cognitive biases and irrational behaviors that influence human decision-making. Some of the biases described include diagnosis bias, where we ignore evidence contradicting our initial view of a person or situation; loss aversion, where we go to great lengths to avoid potential losses; and value attribution, where we assign value to people and things based on initial perceptions rather than objective data. The document also explains how these biases can cause us to disregard objective information, make poor financial decisions, and negatively impact our professional judgment. Group dynamics are also discussed, including the roles of "blockers," who question decisions, and "initiators

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    SWAY

    The irresistible pull of irrational behaviour


    Ori & Rom Brafman
    Book summary
    This 168 page book is an easy read. I found it hard to put down once I
    started because of the fast paced stories that explained how we act in an
    irrational manner. The uniqueness of the book is that it tells stories without
    the technical jargon of how we think.
    1. In the face of serious mishaps, people often turn a blind eye to
    objective information.
    2. Diagnosis bias when we label a person or situation, we put blinders
    to all evidence that contradicts our diagnosis. E.g. a patient comes to
    the Doctor complaining once again for no reason. Except, this time
    the ailment was real and the Doctor failed to treat the patient. In the
    authors example, the patient dies.
    3. Loss aversion Our tendency to go to great lengths to avoid possible
    losses. The more meaningful a potential loss is, the more loss averse
    we become. In other words, the more there is on the line, the easier it
    is to get swept into an irrational decision. How many investors held
    onto Brex gold stock to the bitter end?
    4. Value attribution Our inclination to imbue a person or thing with
    certain qualities based on initial perceived value, rather than on
    objective data. On a January morning in a Washington subway, a
    world famous violinist played for commuters with his $3.5 million
    Stradivarius violin. He wore a baseball cap and jeans. The commuters
    attributed the value they perceived to the quality of the performance.
    Instead of hearing an outstanding concert, they heard street music.
    How often do we discard an idea from a wrong person but blindly
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    follow the advise of someone who is highly regarded (Bernie Madoff


    before he made off with millions of peoples money)
    5. Once we attribute a certain value to a person or thing, it dramatically
    alters our perceptions of subsequent information, both good and bad.
    The value that we attribute to something fundamentally changes how
    we perceive it. When you get something at a discount, the positive
    expectations dont kick in as strongly. When you pay a premium for
    the product, then it must be good.
    6. Value attribution is such a strong force, that it has the power to derail
    our objective and professional judgement and affect our decision
    making.
    7. We experience the pain associated with a loss much more vividly than
    we do the joy of experiencing a gain. Even the threat of a loss makes
    us reconsider a situation.
    8. Commitment a powerful force that can cause us to continue down
    the path of destruction. It is difficult to let go even when clearly things
    are clearly not working. (the USA in Iraq, Vietnam, the collapse of
    Nortel ) The deeper some people dig a hole, the more they continue to
    dig. E.g. spending more than you earn, too much debt, going
    bankrupt. When looking a potential loss in the face, we hope against
    hope that everything will turn out OK. E.g. A gambling addiction.
    9. Aversion to loss on its own is strong, but when it converges with
    commitment, the force becomes an even more powerful influence in
    shaping our thinking and decision making.
    10. Labelling page 99 has some very interesting examples of the
    positive and negative impact of labelling people:
    If you work for someone who believes in you, you will step up
    to the challenge.
    If however, theres nothing that will make you feel more
    incompetent and demoralized than working with someone who
    is convinced you dont have what it takes.
    The same goes for diagnosis. If the Doctor says you are
    crazy, suddenly now everything you do that is a bit odd will
    2

    support that you are crazy. Even if you are not crazy, being
    labelled can be self-perpetuating.
    This is known as the Pygmalion effect (describing how we take
    on positive traits assigned to us by someone else) and the
    Golem effect (describing how we take on negative traits).
    The Chameleon effect, page 104 -If someone says that you are
    beautiful, thoughtful, etc., you are likely to act that way.
    Diagnosis can have a lasting effect on your health.
    Studies on aging negative stereotypes about aging contributes
    to memory loss and cardiovascular weakness, and even reduce
    overall life expectancy by an average of 7.5 years.
    11.Procedural justice when it comes to fairness, it is the process not
    the outcome that causes us to act irrationally. The need to be heard is
    critical when life happens to us as with customer complaints. If the
    supplier of a faulty product or service keeps an open line of
    communication, regardless of the outcome, the customer responds
    more favourably with this process. Well delivered feedback makes
    people feel that they are valued. It provides depth, design and
    direction to our conversations, it enhances the quality of the
    encounter.
    12.Blockers, Initiators, Supporters & Observers in group
    dynamics:
    Blockers are essential but will find reasons why a project
    will not work. They will mostly collide with the Initiator.
    Blockers question the wisdom or merit of new decisions. They
    raise points about the harmful consequences that might follow.
    Blockers are not often given a fair hearing. Dissent has proven
    to be helpful in building consensus, it makes a better opinion.
    Blocking may not be pleasant, but it can save lives, money and
    family well being by taking a stand. It is worth the price of this
    book to just read how a pilot error caused the death of 584 lives
    due to the co-polot not being a Blocker. The airline industry
    has since acted on this issue to train airline crew to act as
    effective blockers. (page 164)

    Initiators are always coming up with new ideas. They tend


    to be optimistic and have a tendency to rush to action.
    However, their fresh energy, creativity, and drive can be
    instrumental when it comes to innovation. According to Loa
    Tzu He who does not trust enough will not be trusted.
    Supporters they take one side or the other. They tend to
    support the Blocker or the Initiator.
    The observer stays fairly neutral and tends to merely
    comment on whats going on.
    13.The airlines have developed a three step process to deal with this
    issue referred to under the blocker:
    State the facts our approach speed is off.
    Challenge - use the persons name..Mike, we are
    moving too fast down the run way. This will get the Captains
    attention.
    Take action Take control, communicate with the air traffic
    controller the perceived problem.
    I trust you find this summary and the book as intriguing as I did.
    Wayne Taylor, P.R.P.
    Taylor Financial Group Ltd.

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