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HO W 7 FORGOTTEN PRINCIPLES WILL
HELP YOUR DECISION MAKING
BERNOULLI'S
HYPOTHESIS
1738 - SPECIMEN THEORIAE NOVAE DE MENSURA SORTIS
Decision Making Maths
E X P E C T E D VA L U E


=


( O D D S O F G A I N ) X ( VA L U E O F G A I N )
Or
Regret a decision !
Scared to be wrong?
” O U R L I K E L I H O O D O R E S T I M AT I O N ? …


I T W I L L T U R N O U T F I N E ”
Optimistic biased decision!
T E C H N I C A L LY T H E G L A S S I S A LWAY S F U L L
WAT E R
A I R
Desired end State - anticipation

Me over the others


Cognitive mechanism


Overall mood - interpretation
OPTIMISM BIAS FACTORS
– S A M U E L J O H N S O N
"Remarriage is the triumph of Hope over
Experience"
Computers are incredibly fast, accurate,
and stupid.

Human beings are incredibly slow,
inaccurate, and brilliant.


Together they are powerful beyond
imagination.
- A L B E R T E I N S T E I N
“Which technology is the best to invest


in now?”
MOORE’S LAW
1975 - INTEL CORP
" T H E N U M B E R O F T R A N S I S T O R S


O N I N T E G R AT E D C I R C U I T S
D O U B L E S A P P R O X I M AT E LY


E V E RY T W O Y E A R S "
LAW OF DISRUPTION
E X P O N E N T I A L V S N AT U R A L
G R O W T H
EROOM’S LAW
TECHNOLOGY CAPACITY VS INTEGRATION COMPLEXITY
MOORE’SLAW
NUMBER OF DRUGS PER BILLION $ SPENT IN R&D
“Which technology is the best to invest


in now?”
"How long do we want to maintain

the product using this technology? "
“ I N F O R M AT I O N S Y S T E M S D O U B L E S C A PA C I T Y F O R T H E S A M E P R I C E


E V E RY T W O Y E A R S "
“How much could I Outsource?”
ALLEN’S CUR VE
1977 - OPEN SPACE
T H E C O M M U N I C AT I O N
E F F I C I E N C Y D E C R E A S E S
E X P O N E N T I A L LY


W I T H T H E P H Y S I C A L D I S TA N C E
B E T W E E N T H E P E R S O N S .
C O M M U N I C AT I O N E F F I C I E N C Y
V S


P E R C E I V E D D I S TA N C E
WEEKLY INTERACTION
DISTANCE
FREQUENCY
T H E
D I S T R I B U T I O N
T R A D E - O F F
OFFSHORE DEVELOPMENT
USING IN HOUSE MANAGEMENT
T H E C O M M U N I C AT I O N E F F I C I E N C Y D E C R E A S E S E X P O N E N T I A L LY


W I T H T H E P H Y S I C A L D I S TA N C E B E T W E E N T H E P E R S O N S .
“How much could I Outsource?”
“How much effort


are you ready to dedicate


to make outsourcing work?”
“How long do you need to get
this done?”
PARKINSON’S LAW
1958 - THE PURSUIT OF PROGRESS
" W O R K E X PA N D S


S O A S T O F I L L T H E T I M E AVA I L A B L E


F O R I T S C O M P L E T I O N "
V O I D A S A S E PA R A B L E D I S TA N C E
Horror Vacui
STUDENT SYNDROME
T I M E M A N A G E M E N T B I A S E S
This is important,


but you have a month to finish it
I will start right away
Smarter to wait


until the last minute!

Just make a big show


of how hard you are working

to meet the unreasonable
deadline.
T H E T I M E - B O X
E F F E C T
" W O R K E X PA N D S


S O A S T O F I L L T H E T I M E AVA I L A B L E


F O R I T S C O M P L E T I O N "
“How long do you need to get
this done?”
“How often do we want to


schedule reviews?”
“Tell me when I could expect to
get this done as well?”
LITTLE’S LAW
1961 - QUEUING THEORY
“ T H E L E A D T I M E I S
P R O P O RT I O N A L


T O T H E N U M B E R O F I T E M S I N
T H E S Y S T E M

 A N D T H E I R T I M E I N T H E
S Y S T E M . ”
E X P E D I T E C O S T
Ready Done
Delay cycle timeExpedite Cost =
“ T H E L E A D T I M E I S P R O P O RT I O N A L


T O T H E N U M B E R O F I T E M S I N T H E S Y S T E M


A N D T H E I R T I M E I N T H E S Y S T E M . ”
“How urgent is it compared to
what is currently in progress?”
“Tell me when I could expect to
get this done as well?”
“How complete are you?


How far along are you?”
MESKIMEN’S LAW
PARETO PRINCIPLE
" T H E R E I S N E V E R E N O U G H
T I M E T O D O I T R I G H T,


B U T T H E R E I S A LWAY S E N O U G H
T I M E T O D O I T O V E R . "
C U M U L AT I V E %C O M P L A I N T S P E R P R O D U C T
- F R A N C O I S V O LTA I R E
D O N E


I S B E T T E RT H A NP E R F E C T
”Perfect is the enemy of good”
F O C U S O N
VA L U E
AGILE FLUENCY
" T H E R E I S N E V E R E N O U G H T I M E T O D O I T R I G H T,


B U T T H E R E I S A LWAY S E N O U G H T I M E T O D O I T O V E R . "
“How complete are you?


How far along are you?”
“Could you help me clarify what
we consider complete?”
“How many people do you
need to get this Done?”
“How many people do you
need to get this Done?


Faster!”
" A D D I N G M A N P O W E R T O A L AT E
S O F T WA R E P R O J E C T


M A K E S I T L AT E R "
BROOK’S LAW
1975 - THE MYTHICAL MAN MONTH
THE HUMAN VARIATION AND
COLLABORATION COMPLEXITY
KNOWLEDGE WORKER
NUMBER OF TEAM MEMBERS
A J O B T H AT O N E P E R S O N


C A N C O M P L E T E


I N 1 0 D AY S
Does our intuition fail us?
" A D D I N G M A N P O W E R T O A L AT E S O F T WA R E P R O J E C T


M A K E S I T L AT E R "
“How many people do you
need to get this Done


Faster?”
“What are you ready to trade off,
scope?”
“How could you improve our
customer experience ?”
CONWAY’S LAW
1968 - MODULAR PROGRAMMING
" O R G A N I S AT I O N S A R E
C O N S T R A I N E D T O P R O D U C E
D E S I G N S


W H I C H A R E C O P I E S O F T H E I R
C O M M U N I C AT I O N
S T R U C T U R E S "
C O M M U N I C AT I O N
S T R U C T U R E S
SOCIAL ORGANISATION
C O L L E C T I V E


I N T E R A C T I O N S & R E L AT I O N S H I P S
SOCIAL CULTURE
[ C O ] O P E R AT I O N [ C O ] O R D I N AT I O N
[ C O ] L L A B O R AT I O N
E V E RY O N E I S D O I N G I T


W H Y N O T M E ?
Let’s do a Transformation!
" O R G A N I S AT I O N S A R E C O N S T R A I N E D T O P R O D U C E D E S I G N S


W H I C H A R E C O P I E S O F T H E I R C O M M U N I C AT I O N S T R U C T U R E S "
“How could you improve our
customer experience ?”
“What in our Culture can help us
on staying accurate?”
W H E N Y O U M A K E A D E C I S I O N


M A K E S U R E Y O U A R E G R O U N D E D
“It’s not only a good idea. It’s a Law”
GRAVITY
SELECTIVE LEARNING
WHAT APPLIES TO ME
FIRST!
“if i have seen further it is by
standing on the shoulders of
giants”
- I S A A C N E W T O N
CONWAY’S LAWBROOK’S LAW
MESKIMEN’S LAW
MOORE’S LAW
PARKINSON’S LAW LITTLE’S LAW
ALLEN’S CUR VE
Decision Making Maths
E X P E C T E D VA L U E


=


( O D D S O F G A I N ) X ( VA L U E O F G A I N )
“Information is NOT knowledge”
- A L B E R T E I N S T E I N

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7 forgotten principles to help your decision making

  • 1. HO W 7 FORGOTTEN PRINCIPLES WILL HELP YOUR DECISION MAKING
  • 2. BERNOULLI'S HYPOTHESIS 1738 - SPECIMEN THEORIAE NOVAE DE MENSURA SORTIS
  • 3. Decision Making Maths E X P E C T E D VA L U E = ( O D D S O F G A I N ) X ( VA L U E O F G A I N )
  • 4. Or Regret a decision ! Scared to be wrong?
  • 5. ” O U R L I K E L I H O O D O R E S T I M AT I O N ? … I T W I L L T U R N O U T F I N E ” Optimistic biased decision! T E C H N I C A L LY T H E G L A S S I S A LWAY S F U L L WAT E R A I R
  • 6. Desired end State - anticipation Me over the others Cognitive mechanism Overall mood - interpretation OPTIMISM BIAS FACTORS
  • 7. – S A M U E L J O H N S O N "Remarriage is the triumph of Hope over Experience"
  • 8. Computers are incredibly fast, accurate, and stupid. Human beings are incredibly slow, inaccurate, and brilliant. Together they are powerful beyond imagination. - A L B E R T E I N S T E I N
  • 9. “Which technology is the best to invest in now?”
  • 10. MOORE’S LAW 1975 - INTEL CORP " T H E N U M B E R O F T R A N S I S T O R S O N I N T E G R AT E D C I R C U I T S D O U B L E S A P P R O X I M AT E LY E V E RY T W O Y E A R S "
  • 11. LAW OF DISRUPTION E X P O N E N T I A L V S N AT U R A L G R O W T H
  • 12. EROOM’S LAW TECHNOLOGY CAPACITY VS INTEGRATION COMPLEXITY MOORE’SLAW NUMBER OF DRUGS PER BILLION $ SPENT IN R&D
  • 13. “Which technology is the best to invest in now?” "How long do we want to maintain the product using this technology? " “ I N F O R M AT I O N S Y S T E M S D O U B L E S C A PA C I T Y F O R T H E S A M E P R I C E E V E RY T W O Y E A R S "
  • 14. “How much could I Outsource?”
  • 15. ALLEN’S CUR VE 1977 - OPEN SPACE T H E C O M M U N I C AT I O N E F F I C I E N C Y D E C R E A S E S E X P O N E N T I A L LY W I T H T H E P H Y S I C A L D I S TA N C E B E T W E E N T H E P E R S O N S .
  • 16. C O M M U N I C AT I O N E F F I C I E N C Y V S P E R C E I V E D D I S TA N C E WEEKLY INTERACTION DISTANCE FREQUENCY
  • 17. T H E D I S T R I B U T I O N T R A D E - O F F OFFSHORE DEVELOPMENT USING IN HOUSE MANAGEMENT
  • 18. T H E C O M M U N I C AT I O N E F F I C I E N C Y D E C R E A S E S E X P O N E N T I A L LY W I T H T H E P H Y S I C A L D I S TA N C E B E T W E E N T H E P E R S O N S . “How much could I Outsource?” “How much effort are you ready to dedicate to make outsourcing work?”
  • 19. “How long do you need to get this done?”
  • 20. PARKINSON’S LAW 1958 - THE PURSUIT OF PROGRESS " W O R K E X PA N D S S O A S T O F I L L T H E T I M E AVA I L A B L E F O R I T S C O M P L E T I O N "
  • 21. V O I D A S A S E PA R A B L E D I S TA N C E
  • 23. STUDENT SYNDROME T I M E M A N A G E M E N T B I A S E S This is important, but you have a month to finish it I will start right away
  • 24. Smarter to wait until the last minute! Just make a big show of how hard you are working to meet the unreasonable deadline.
  • 25. T H E T I M E - B O X E F F E C T
  • 26. " W O R K E X PA N D S S O A S T O F I L L T H E T I M E AVA I L A B L E F O R I T S C O M P L E T I O N " “How long do you need to get this done?” “How often do we want to schedule reviews?”
  • 27. “Tell me when I could expect to get this done as well?”
  • 28. LITTLE’S LAW 1961 - QUEUING THEORY “ T H E L E A D T I M E I S P R O P O RT I O N A L T O T H E N U M B E R O F I T E M S I N T H E S Y S T E M A N D T H E I R T I M E I N T H E S Y S T E M . ”
  • 29.
  • 30.
  • 31.
  • 32. E X P E D I T E C O S T Ready Done Delay cycle timeExpedite Cost =
  • 33. “ T H E L E A D T I M E I S P R O P O RT I O N A L T O T H E N U M B E R O F I T E M S I N T H E S Y S T E M A N D T H E I R T I M E I N T H E S Y S T E M . ” “How urgent is it compared to what is currently in progress?” “Tell me when I could expect to get this done as well?”
  • 34. “How complete are you? How far along are you?”
  • 35. MESKIMEN’S LAW PARETO PRINCIPLE " T H E R E I S N E V E R E N O U G H T I M E T O D O I T R I G H T, B U T T H E R E I S A LWAY S E N O U G H T I M E T O D O I T O V E R . "
  • 36.
  • 37. C U M U L AT I V E %C O M P L A I N T S P E R P R O D U C T
  • 38. - F R A N C O I S V O LTA I R E D O N E I S B E T T E RT H A NP E R F E C T ”Perfect is the enemy of good”
  • 39. F O C U S O N VA L U E AGILE FLUENCY
  • 40. " T H E R E I S N E V E R E N O U G H T I M E T O D O I T R I G H T, B U T T H E R E I S A LWAY S E N O U G H T I M E T O D O I T O V E R . " “How complete are you? How far along are you?” “Could you help me clarify what we consider complete?”
  • 41. “How many people do you need to get this Done?”
  • 42. “How many people do you need to get this Done? Faster!”
  • 43. " A D D I N G M A N P O W E R T O A L AT E S O F T WA R E P R O J E C T M A K E S I T L AT E R " BROOK’S LAW 1975 - THE MYTHICAL MAN MONTH
  • 44. THE HUMAN VARIATION AND COLLABORATION COMPLEXITY KNOWLEDGE WORKER NUMBER OF TEAM MEMBERS A J O B T H AT O N E P E R S O N C A N C O M P L E T E I N 1 0 D AY S
  • 45. Does our intuition fail us?
  • 46. " A D D I N G M A N P O W E R T O A L AT E S O F T WA R E P R O J E C T M A K E S I T L AT E R " “How many people do you need to get this Done Faster?” “What are you ready to trade off, scope?”
  • 47. “How could you improve our customer experience ?”
  • 48. CONWAY’S LAW 1968 - MODULAR PROGRAMMING " O R G A N I S AT I O N S A R E C O N S T R A I N E D T O P R O D U C E D E S I G N S W H I C H A R E C O P I E S O F T H E I R C O M M U N I C AT I O N S T R U C T U R E S "
  • 49. C O M M U N I C AT I O N S T R U C T U R E S SOCIAL ORGANISATION
  • 50. C O L L E C T I V E I N T E R A C T I O N S & R E L AT I O N S H I P S SOCIAL CULTURE [ C O ] O P E R AT I O N [ C O ] O R D I N AT I O N [ C O ] L L A B O R AT I O N
  • 51. E V E RY O N E I S D O I N G I T W H Y N O T M E ? Let’s do a Transformation!
  • 52. " O R G A N I S AT I O N S A R E C O N S T R A I N E D T O P R O D U C E D E S I G N S W H I C H A R E C O P I E S O F T H E I R C O M M U N I C AT I O N S T R U C T U R E S " “How could you improve our customer experience ?” “What in our Culture can help us on staying accurate?”
  • 53.
  • 54. W H E N Y O U M A K E A D E C I S I O N M A K E S U R E Y O U A R E G R O U N D E D “It’s not only a good idea. It’s a Law” GRAVITY
  • 56. “if i have seen further it is by standing on the shoulders of giants” - I S A A C N E W T O N
  • 57. CONWAY’S LAWBROOK’S LAW MESKIMEN’S LAW MOORE’S LAW PARKINSON’S LAW LITTLE’S LAW ALLEN’S CUR VE
  • 58. Decision Making Maths E X P E C T E D VA L U E = ( O D D S O F G A I N ) X ( VA L U E O F G A I N )
  • 59. “Information is NOT knowledge” - A L B E R T E I N S T E I N