A Summary Review Of 'The Art Of Thinking Clearly' By Rolf Dobelli

 

There are 99 explanations on how we as human beings think in certain ways which are mostly manipulated because we do not realize the motives behind them. By understanding these 99 cognitive errors we are able to have an awareness that can improve our intellectual thinking that we can use as our advantage instead.
 
In this world, we live in the social community and it getting larger as we are immersed in the social media ecosystem. In this context, only some cognitive errors will be highlighted that I find essential in my life and business.

1. In life, there are more unexpected unknown risks than known risks. The unexpected unknown are the events that occur without warning and will affect our initial plan. Hence, we should not be too detail in the planning process, instead, we should look for the other possibilities that might occur and make different contingencies plans accordingly to these different potential scenarios.

2. We should not make decisions with just surface views of each option. Instead, in the prior, we should already know our objectives before looking at the options because from there we are clear about 'the important' and 'the not important' features to weigh when making a decision without emotions interfere.

3. Don't think an event occurs because of one single cause. In the environment of the event, there are 'changeable' and 'unchangeable' factors that we need to look at. Moreover, sometimes the event occurs with a cause that is influenced by other external causes.  

4. We should avoid the tendencies of ourselves sticking to the unworkable plan after many attempts because humans always feel obligated on what they already heavily invested in and end up with wrong wishful thinking. This is waste of time and by not acting toward a new plan we suppress ourselves from discovering new opportunities. Hence, follow unworkable trends lead to expected failures and changing the course of actions will lead to new discoveries that might bring better outcomes or at least new learnings.

5. We only can make a quality decision when we are well-rested, therefore, even short breaks are necessary between the interval of making several decisions straight. Besides that, if we are already experts from crossing multiple similar scenarios in our experiences, it is better to not think too much and just trust our intuition.  

Read more on The Art of Thinking Clearly book by Rolf Dobelli. In a conclusion, from an overview after reading this amazing book and after I have moments of reflections, I can see business is life, and we need to be slightly considerate of external factors or agendas in the decision-making process.
 
📒 The Art of Thinking Clearly by Rolf Dobelli

A Summary Review Of ‘The Personal MBA’ By Josh Kaufman

I am curious. When we want to do differently in terms of contribution to the betterment of society life, we aren't firm with our ideas, thinking “the ideas are too impossible”. Sometimes we duplicate with existing successful business models and hope for the same fruitful outcomes. However, getting into the big league with competitions will not create the most value for people.

There is an equation to deliver the right value to the right beneficiaries that willing to pay at a fair price. The equation consist of 3 variables:

What potential customers value more than buying the power of the dollars in their wallets are connected to 5 Human Core Drives (Acquire, Bond, Learn, Defend, Feel) which translated to these Economic Values below. For instance, for technology, maybe its economic values are efficacy, speed, reliability, and ease of use.

 

ECONOMIC VALUES

Efficacy 

Speed 

Reliability 

Ease of Use

Flexibility

Status

Aesthetic Appeal

Emotion

Cost

After we know about their drives to make the purchase, we need to evaluate the potentials and the expected cost of executions. If there is the massive size of the market that have the same core economic values, then the cost of delivering will be distributed evenly in term of economies of scale. Besides, we need to look at the level of potential customers "willingness" to pay for the value that will be offered. This level of willingness will affect the margin.

EVALUATION 

Urgency 

Market Size

Pricing Potential 

Cost of Customer 

Acquisition 

Cost of Value Delivery 

Uniqueness of Offer 

Upfront Potential

Upsell Potential 

Evergreen Potential 

 

Finally,.. we are able to create the right solid value at the right economic level for the right beneficiaries. However, we need to find out how the customer can get this value. Hence, we should remove the friction in the process for the customer to get this value.

 

FORMS OF VALUES

Product

Service

Shared Resources 

Subscription

Resale

Lease 

Agency

Audience Aggregation 

Option 

Insurance 

Combination 

New Form.. 

 

PS. Reads to share and unite for Malaysia future - “Malaysia a True Entrepreneurial Nation by 2030”.

📒 The Personal MBA by Josh Kaufman

A Summary Review Of 'Start With Why' By Simon Sinek

Why>What : A Vision, we can understand (believe) even it’s not visible. 

📒 Start With Why by Simon Sinek

A Summary Review Of ‘How To Win Friends And Influence People’ By Dale Carnegie

Evergreen techniques in communication. Everyone is important that we should respect other's opinions and add humble suggestions to come up with a new (possibly better) idea together.

📒 How To Win Friends And Influence People by Dale Carnegie 

A Summary Review Of ‘The Innovator's Dilemma’ By Clayton M. Christensen

 

The book introduces a mindset to keep innovating for the future because saturated products "oversupplied" will be isolated and new disruptive technologies will take place. Furthermore, a small emerging company have more possibilities to introduce new market than big firms convert to a new market from the mainstream market because of responsibilities tied up with shareholders. However, big firms still have a chance by not compromise investing in their RnDs and under a different brand to focus on the new market in the future. - 

📘 The Innovator's Dilemma by Clayton M. Christensen  

A Summary Review Of ‘The 7 Habits Of Highly Effective People’ By Stephen R. Covey

7 Habits are common senses but what is common sense is not always common practice...

Habit 1: 

• Proactive person will always be part of the solution, not part of the problem.
  

Habit 2: 

• Primarily focuses on the clear image of the result.
  

Habit 3: 

• Thinking ahead, working on roots, doing preventive things that keep situations from developing into crises in the first place.
  

Habit 7: 

• Exercising all four dimensions {Physical, Mental, Emotional, Spiritual}. Those are only instruments of our own performance and to be effective.
  

Habit 5: 

• Seek first to understand in depth, or "diagnose before giving the prescription".
  

Habit 4 + Habit 6: 

• Continued in the Win/Win spirit until the third alternative solution was reached - both parties feel good about it.

• Give authentic expression on principles that people can relate/understand. In turn, feedback on the other person's spirit and genuine creative empathy takes places - producing new insights (methods to achieve the result) and a sense of excitement and adventure that keeps the process going. Synergize.

 

📒 The 7 Habits Of Highly Effective People by Stephen R. Covey 

A Summary Review Of ‘Good Strategy Bad Strategy’ By Richard Rumelt

 

Use of “sunday” high-sounding words and phrases are to create the illusion of high-level thinking but actually failing. That’s a bad strategy, as failing to recognise/define challenges and forecast potential disaster. Because goals and subgoals are not strategies. Someone should decide a guiding policy and overall approach to overcome obstacles and this will initiate team member focusing on resources and concentrate the action/effort on that objective. A strategy may not be a set of financial goals, but it can be an insight into a next action that will potentially create and extend the advantage. The company should focus on one business activity or chain-linked of core activities at top quality and benefit from each other. With larger value it creates for the selected market, will position the company at higher bargaining power side. Therefore, when come up with ideas, don't justifying it rather questioning it. “Simulation”.

📒 Good Strategy vs Bad Strategy - by Richard Rumelt.

A Summary Review Of ‘Economics in One Lesson’ By Henry Hazlitt

 

 
The book has open my mind to the which I describe "Economist Thinking”, which is to not look at the direct consequences from the impact of the plan only but also to look at the farther impacts, or in other words, at the indirect consequences. Because these indirect consequences may affect the third party or the subsequent events to occur that was not even in the picture or in our imagination in the first place. (Which make this relates to the book: Thinking, Fast and Slow by Daniel Kahneman)

 

 

The same goes in governing the country, such as ‘Subsidy’ should be a ploy to certain essential commodities only that will benefit most of the taxpayers in return. The set price of commodities should be sufficient to encourage the largest production and sales volume to meet the long term demands. Then, the country should also support local businesses to encourage more export activities to meet larger demands overseas. 

 

Hence, the country profits (taxes) from exporting can be fork-out to subsidy on essential commodities. Other than that, these profits can pay for the import commodities to supply the unavailable resources in our country. 

 

 

From the reference of the equation above: (Note: Assumption ‘B’ will not set high markup because it will reduce their sales.) Add subsidy at the Left side of the equation will simultaneously change the Right side of the equation. As an example, to stabilize the economy, the government will add tax on other less essential products at the Right side of the equation. 

Other than that, the book also discussed ‘Efficiency’, which can be increased by the implementation of technologies such as automation or artificial intelligence. Subsequently, machines may replace our jobs. However, this also will make us evolve on how we will work or most importantly “Financially Survive”. All this time jobs always change in front of our eyes, the obvious change was, children and overaged are no longer needed to work anymore compared to a couple of decades ago. 

 

📒 Economics in One Lesson by Henry Hazlitt.

 

A Summary Review Of ‘The Great Economist’ By Linda Yueh

As an engineering grad, I look forward to exploring the economic fundamentals. There were 12 great economists formulated their models to tackle economic challenges. These are the ideas that I agree:

Firstly, gov’t could assist in equipping poor with skills to make them competent in the job market. This will increase the portion of the middle class which generate more consumption thru spending that drives economic growth [Alfred Marshall, 1980 idea]. 

Furthermore, the citizen is important in economic growth as they not just productive forces (prepared with skills to use technology) but also the innovators. “Technical improvement directly proportional to economic growth” [Robert Solow, 1957 idea]. 

Besides that, Gov’t investment in infrastructures are necessary, this is to enable private investment to be more efficient (eg. telecom infrastructure for faster businesses services delivery) [John Maynard Keynes idea].

📒 The Great Economists by Linda Yueh

A Summary Review Of ‘Business Model Generation’ By Alexander Osterwalder & Yves Pigneur, & Co-created By 470 "Business Model Canvas" Practitioners

Learnings:

1. There are many types of business model patterns - "algorithm to incur revenue". However, the basis are the demand, type of customers, how the service/product will be used. The goal is to give a service/product and in return, we have enough to cover up the cost to satisfy some humans in this world (self-rewards, incredible-experiences, and unforgettable-moments etc.). 

2. The demand is in the environment. Not all environments are the same. We as outsider need to understand the landscape (threats and opportunities) and culture in that environment as a reference to modify a suitable service/product and channel to deliver the value.

3. An idea can’t be strengthened without others feedback and suggestions. Be open and seek advice from subject matter experts of various background related to the environment. An idea is not permanent, it will adapt to the actual implementation response. Possibly, an old idea will be completely overhauled to a better new idea.

4. Value>Price.

📒 Business Model Generation by Alexander Osterwalder & Yves Pigneur, and co-created by 470 "Business Model Canvas" practitioners from 45 countries. 

'Dawn Raid' The Success Game Plan To Take Back Our National Treasures

 

 

    After independence day, the Malaysian economy remained dominated by former imperial power and about 60% of Malaysia corporate assets were still owned by them such as Guthrie Corporation Limited. GCL owned a plantation in Malaysia that had increased to 194,000 acres of rubber, oil palm, cocoa and tea estates which produced 80-90% of group profits in 1981. Earlier in the 1900s, GCL was an agency house that managing agents of direct investments in commodity production and in 1958, they oversaw 150,000 acres of planted rubber, palm oil and tea, plus two tin mines estimated at 35 million pounds (RM 300 million).

    7 September 1981 at dawn - on the London Stock Exchange, GCL was taken over by Malaysian in less than four hours from 25% to more than 50% of the total shares and event is famously called ‘Dawn Raid’. Later, the Malaysianised GCL company was merged with Sime Darby and the name ‘Guthrie’ is no longer around. 

 

Earlier on 12 February 1980, there was first dawn raid by De Beers and it contagiously set an example to another five cases involving this Blitzkrieg-style operation. Then, Council for the Securities Industry tightens the regulation with the application of the seven-day period (as “stalling mechanism”) for the purchaser who was considering topping up their acquisition of the target company exceeding the 30% limit. A year before the raid of GCL, Khalid Ibrahim and his colleagues undertook two factors to analyse: (1.) whether or not worthwhile to take over GCL and at what price and (2.) the “tactical” means of pursuing this operation after CSI had added obstruction to avoid similar incident as previous six dawn raid style takeovers.

 

... I am excited for the movie to be out "Dawn Raid: The Hands That Rattled The Queen".

 

Reference: The ‘Unfinished Business’ of Malaysia’s Decolonisation: The Origins of the Guthrie ‘Dawn Raid’ (by Shakila Yacob, University of Malaya & Nicholas J. White, John Moores University)  

 

Photo: (Right) With the Mastermind Tan Sri Dato' Seri Abdul Khalid Bin Ibrahim

A Summary Review Of ‘High-Profit Prospecting’ By Mark Hunter

There is a lot of information about tactical selling and enlighten me to see in a different perspective. My afterthoughts are; When everyone/companies/businessmen are very good at selling, some might believe this will result in Price War. However, I believe this increase in competition will force companies to offer various unique values for a wide market in this world. It is difficult to duplicate someone else's successful plan because we don't have the same resources which simultaneously doesn't share the exact value. If two products/services are similar physically/standard-of-operation, there are other factors make those valuable differently. With the right sales techniques, the true value of the offering can be reached and benefits to the "right" prospects.

 

📒 High-Profit Prospecting by Mark Hunter