The Personal MBA

The routine is funny because it’s so familiar. All of us have had the experience of knowing or feeling that we should do something or that an action would be in our best interest…but we don’t do it. The term for that experience is Akrasia (pronounced “ah-KRAH-see-ah”).
Akrasia and procrastination are related, but they’re not the same thing. Procrastination occurs when you’ve decided to complete a task, but you keep putting it off until later without consciously deciding to do it later. If you have “answer e-mail” on your to-do list, but you browse the Internet for hours without answering any e-mail, that’s procrastination.
Akrasia is a deeper issue: it’s a general feeling that you “should” do something, without necessarily deciding to do it. The “should” feeling doesn’t lead to decision or action, even if the action seems to be in your best interest. Most people experience Akrasia when considering changing Habits they no longer want (“I should quit smoking”), taking a new action (“I should donate to that nonprofit”), or contemplating an uncomfortable topic (“I should look into life insurance and talk to a lawyer to write a will”).

Framing is a way to control the perception of Contrast. For example, I often use the phrase “$149,000 less than a top-tier business program” when marketing my business courses. Compared with buying a book, my course looks expensive; compared with the cost of an MBA program, it’s a bargain.

Examples of Absence Blindness are everywhere. Here’s a common example: great management is boring—and often unrewarding. The hallmark of an effective manager is anticipating likely issues and resolving them in advance, before they become an issue. Some of the best managers in the world look like they’re not doing much, but everything gets done on time and under budget.

Our brains are natural Pattern Matching machines. The brain is constantly busy trying to find patterns in what we perceive, then associating new patterns with other patterns that are stored in memory. This Pattern Matching process happens automatically, without conscious effort. Simply by paying attention to the world around you, your brain is collecting new patterns and adding them to memory.

Conflicts occur when two control systems try to change the same perception. When you’re procrastinating, one of your brain’s subsystems is trying to control “getting things done,” while another is trying to control “getting enough rest.” Since both systems are trying to control the same perception—physical action—the systems fight to move the perception in the way they want it to go.

Status considerations are no longer as critical to survival, but our brains developed to place a very high priority on social status. As a result, status considerations influence the vast majority of a person’s decisions and actions.
Status Seeking is a universal phenomenon: neurotypical human beings care intensely about what other people think of them, and they spend a significant amount of energy tracking their relative status compared to other members of their group. When opportunities to increase status appear, most people will seize them. When given a choice between different Alternatives (discussed later), people will typically choose the option with the highest perceived status.

CoreHuman Drives, it’s important to understand that humans are social creatures. Like many other mammals, humans evolved to have a “pecking order,” a relative ranking of Power (discussed later) or status in a group. Competing with other people for status and power brought many benefits, including access to food, mates, resources, and the protection of other group members.
Status considerations are no longer as critical to survival, but our brains developed to place a very high priority on social status. As a result, status considerations influence the vast majority of a person’s decisions and actions.
Status Seeking is a universal phenomenon: neurotypical human beings care intensely about what other people think of them, and they spend a significant amount of energy tracking their relative status compared to other members of their group. When opportunities to increase status appear, most people will seize them. When given a choice between different Alternatives (discussed later), people will typically choose the option with the highest perceived status.

Core Human Drives that have a profound influence on our decisions and actions:
1. The Drive to Acquire. The desire to obtain or collect physical objects, as well as immaterial qualities like status, power, and influence. Businesses built on the drive to acquire include retailers, investment brokerages, and political consulting companies. Companies that promise to make us wealthy, famous, influential, or powerful connect to this drive.
2. The Drive to Bond. The desire to feel valued and loved by forming relationships with others, either platonic or romantic. Businesses built on the drive to bond include restaurants, conferences, and dating services. Companies that promise to make us attractive, well liked, or highly regarded connect to this drive.
3. The Drive to Learn. The desire to satisfy our curiosity. Businesses built on the drive to learn include academic programs, book publishers, and training workshops. Companies that promise to make us more knowledgeable or competent connect to this drive.
4. The Drive to Defend. The desire to protect ourselves, our loved ones, and our property. Businesses built on the drive to defend include home alarm systems, insurance products, martial arts training, and legal services. Companies that promise to keep us safe, eliminate a problem, or prevent bad things from happening connect to this drive.
There’s a fifth core drive that Lawrence and Nohria missed:
5. The Drive to Feel. The desire for new sensory stimulus, intense emotional experiences, pleasure, excitement, entertainment, and anticipation. Businesses built on the drive to feel include restaurants, movies, games, concerts, and sporting events. Offers that promise to give us pleasure, thrill us, or give us something to look forward to connect with this drive

The best approach is to focus on making things people want to buy. Creating something no one wants is a waste

Market matters most; neither a stellar team nor fantastic product will redeem a bad market. Markets that don’t exist don’t care how smart you are.
—MARC ANDREESSEN, VENTURE CAPITALIST AND FOUNDER OF NETSCAPE AND NING.COM