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HOW TO BE
PERSUASIVE
odean.com/convincing
Our lived experience is comprised of two separate and distinct systems.(this is an oversimplification, but a useful one)
System #1fast and cheap, but error prone
System #2precise, but expensive and slow
System #1 System #2
Fast
Effortless
Involuntary
Black/White
Approximate
Confident
Slow
Effortful
Deliberate
Nuanced
Precise
Skeptical
System #1 System #2
Fast
Effortless
Involuntary
Black/White
Approximate
Confident
Slow
Effortful
Deliberate
Nuanced
Precise
Skeptical
ARE YOU FEELING
RATIONAL?odean.com/CONVINCE-YOURSELF
Just study this slide
iktitaf nansoma biwonjni nansoma iktitaf nansoma
nansoma nansoma biwonjni saricik iktitaf nansoma iktitaf
nansoma iktitaf nansoma biwonjni nansoma iktitaf nansoma
iktitaf nansoma nansoma iktitaf nansoma saricik nansoma
iktitaf nansoma Kadirga nansoma iktitaf nansoma iktitaf
nansoma biwonjni nansoma biwonjni iktitaf nansoma Kadirga
nansoma iktitaf nansoma biwonjni nansoma iktitaf nansoma
Which is larger?
#1: (A) ½ OR (B) 1
#2: (A) 8/100 OR (B) 1/10
#3: (A) 23/45 OR (B) 34/67
#4: (A) 1 IN 17 OR (B) 0.06
Write two numbers:
#1: THE LAST TWO DIGITS
OF YOUR CELL PHONE
#2: YOUR ESTIMATE OF THE
TOTAL # OF GOOGLE VPS
How much $
tHERE IS A 1/10,000 CHANCE
YOU HAVE A FATAL DISEASE.
hOW MUCH WOULD YOU
PAY FOR THE cURE?
UNDERSTANDING
COGNITIVE BIASES
Even if you understand an optical illusion, it isn’t possible to unsee it.
Cognitive illusions operate the same way. You can’t outsmart them.
Availability
Anchoring
Representation
Coherence
Framing
Availability
Anchoring
Representation
Coherence
Framing
Availability causes ideas that come to mind easily to seem more true.
Feels
Vivid
Recent
Frequent
Clear Display
Good Mood
Familiar
Common
Likely
Good
True
Availability is why advertising works.
Feels
Vivid
Recent
Frequent
Clear Display
Good Mood
Familiar
Common
Likely
Good
True
… and why heavy news coverage makes us overestimate risks.
Feels
Vivid
Recent
Frequent
Clear Display
Good Mood
Familiar
Common
Likely
Good
True
Availability can also operate in reverse.
Feels
Vague
Diffuse
Hard to picture
Unknown
Bad Mood
Foreign
Rare
Unlikely
Bad
False
Availability
Anchoring
Representation
Coherence
Framing
We estimate things by anchoring on a reference value as a starting point. Adjusting from the anchor is effortful, so we tend to err in that direction.
We also experience anchoring from readily available comparisons.
Web - $59
Web & Print - $125
Web - $59
Print - $125
Web & Print - $125
Availability
Anchoring
Representation
Coherence
Framing
System #1 isn’t great at math, so we evaluate packages and outcomes by estimating a representative norm rather than as a sum.
SET A SET B
WHEN WE COMPARE VALUE DIRECTLY
$ < $$
WHEN WE ESTIMATE VALUE SEPARATELY
$$ > $
Availability
Anchoring
Representation
Coherence
Framing
We don’t have good natural intuitions about probability. Instead we estimate how likely things are by the coherence of the story we can build explaining them.
xkcd.com/552
A desire for coherence also causes us to ignore contradictions, which causes the Halo Effect and is why this sentence is uncomfortable:
Hitler loved puppies
Coherence also gives us Confirmation Bias - changing our minds is effortful because it requires overcoming the inconsistency with our past selves.
CHAINSAWSUIT.COM
Availability
Anchoring
Representation
Coherence
Framing
Framing effects can make us perceive the same circumstances differently, depending on how the information is presented.
Organ donation consent rate by country
Framing determines what choice is seen as default or normal. Deviating from normal is more effortful and we also perceive it as riskier.
opt-in vrs opt-out
Understanding
Prospect Theory
We intuitively evaluate outcomes as a gain or a loss from a reference point,and we are ~2-2.5x as loss averse as we are drawn to gains.
VA
LU
E
GAINSLOSSES
We can only perceive a minimum quanta of risk, so our ability to estimate rare events is very poor. We round up on some risks and down on others.
WE OVERESTIMATE RARE EVENTS WHEN THEY ARE:
precise / easy to picture
described to us
emotionally significant
on our minds recently
represented concretely (~1 in 1000 children, e.g.)
WE UNDERESTIMATE RARE EVENTS WHEN THEY ARE:
diffuse / difficult to picture
remembered from experience
emotionally insignificant
not recently relevant
represented abstractly (~0.1% of children, e.g.)
Separately from our ability to estimate risk, we also intuitively overvalue both possibility (gambling) and certainty (insurance).
ESTIMATED PROBABILITY
DE
CIS
ION
WE
IGH
T
The combination of loss aversion and our intuitive weighing of riskcreate what Kahneman calls The 4-Fold Pattern.
LOSSES GAINSN
EA
R C
ER
TA
INTY
PO
SS
IBIL
ITY
FEARFUL(Accept settlement)
FEARFUL(Buy insurance)
HOPEFUL(Reject plea deal)
Hopeful(Buy lottery Tickets)
ARE YOU FEELING
RATIONAL?PART II
Just study this slide
Tyler is great i am really enjoying this talk Tyler is great i
am really enjoying this talk Tyler is great i am really
enjoying this talk Tyler is great i am really enjoying this
talk Tyler is great i am really enjoying this talk Tyler is
great i am really enjoying this talk Tyler is great i am really
enjoying this talk Tyler is great i am really enjoying this
talk Tyler is great i am really enjoying this talk Tyler is
What % chance?
The project has 100 dependencies.
Each has a 95% chance to go
according to plan. What % of the
time should we expect the project
to go according to plan?
Rank these wordsFROM MOST NEGATIVE (-2) to MOST POSITIVE (2)
Iktitaf
kadirga
nansoma
Biwonji
saricik
HOw MUCH $
A PHARMACEUTICAL COMPANY
WANTS TO RUN A TEST WHERE
THERE IS A 1/10,000 CHANCE OF
BECOMING INFECTED WITH A FATAL
DISEASE. hOW MUCH WOULD THEY
NEED TO PAY YOU TO PARTICIPATE?
LEVERAGING
COGNITIVE BIASES
Keep it simpleWeak arguments weaken strong ones
One thesis at a time
Never surprise anyoneIntroduce ideas like you would cats:
slowly at first, and in limited ways
Make it easy to agreeMake your preferred choice the default
Don’t leave behind open questions
Set the reference pointDescribe outcomes as losses/gains from your preferred reference
Know where that puts you on the 4-Fold Pattern
Control the presentationDial up or down emphasis by making things more concrete or abstract
Keep flattering comparisons close, remove unflattering ones entirely
AdVERSARIAL
PERSUASION
Argue as little as possible
Agree as often as you can
Ignore irrelevant inaccuracies
Define the disagreement narrowly
Argue forwards, not backwards
Easier to argue new information changes things
than that old assessments were wrong.
Argue Both sides
Traffic in arguments, not opinions
Loan your rhetoric out freely
Play the Long Game
Be prepared to be persuaded
Leave some meat on the bone
NOW LET US DO
SCIENCE
Which is larger?
1 > 1/21/10 > 8/100
23/45 > 34/67 6% > 1 in 17
THe scary disease
# of VPs / Them Digits
All the best words
According to plan
Q & A
odean.com/convincing
Part-time Product Management Courses in Silicon Valley, New York and Los Angeles
www.productschool.com