Some stories and interactions linked to
Management dilemmas and thinking mistakes

For Haravrd course 2013

By Lukas Ritze...
WiB Solutions
Management Thinking Mistakes
App
managementthinkingmistakes.ch

http://denkfehler-app.wikispaces.com/home
Let’s start with X-Mas
• Research by Waldvogel (1993)

19.12.2013

www..wib.ch by lukas ritzel / management thinking mista...
How to improve the perceived value
of a present (for lritzel)

WiB BRINGT THEMEN AUF DEN PUNKT.

WW W . W I B.CH

WiB Solu...
How to improve the perceived value
of a present (for lritzel)

Invest loads of
love and time

Know the
person and
his/ her...
A perfect gift?

20. April 2011

WIB_Dokumentname.pptx

6
A perfect gift?

Perceived value 240$

20. April 2011

WIB_Dokumentname.pptx

7
A perfect gift? Can we top it?

20. April 2011

WIB_Dokumentname.pptx

8
A not perfect gift anymore?

Perceived value 175$

20. April 2011

WIB_Dokumentname.pptx

9
The paradox of gift giving
• More not better, says new study by Pamplin
marketing professor
• The gift recipient is likely...
Let’s try a little experiment
(perhaps you can play it during new years party with friends)

• Note the last 5 digits of y...
Now guess
• How many medical doctors exist in
Switzerland?

Paste both figures
into the
blackboard chat

20. April 2011

w...
What has your number to do with the
numbers of Swiss doctors?
• Nothing! > correct
• But perhaps still something according...
Your answer was influenced by the number
you wrote down before
• A measurable difference exists, where people
with a highe...
Anchoring Effect

20. April 2011

www..wib.ch by lukas ritzel / management thinking mistakes

15
How to apply that in marketing?
• Why would high sellers of televisions via
banner adverts appear on a holiday website.

2...
How to apply that in marketing?
• “There’s one really simple explanation If you’re
a behavioral economist. If you spend 40...
20. April 2011

WIB_Dokumentname.pptx

18
Would that work? www.fitnesschore.com

WiB BRINGT THEMEN AUF DEN PUNKT.

WW W . W I B.CH

WiB Solutions AG, Aarburgerstras...
Flatrate Bias
• Why does it normally work?
• 5 factors
–
–
–
–
–
–

20. April 2011

Assurance effect (no stress about even...
Marmalade effect

WiB BRINGT THEMEN AUF DEN PUNKT.

WW W . W I B.CH

WiB Solutions AG, Aarburgerstrasse 7, CH-4600 Olten

...
Crazy Business Stories 1-4 if time
• A collection of business puzzles as a
interactive Q&A game
• Ask questions, which i c...
Crazy Business Story 1
• Marketing Manager Ritzel white-washed his
figures to look super-positive. This was the
beginning ...
Result
• Announced potential, whether realistic or
unrealistic, attracts attention. The interest of
management was guarant...
Crazy Business Story 2
• The new car (Mitsubishi) did just not lift up to
it’s expectations

19.12.2013

www..wib.ch by lu...
Result
• The name of this Mitsubish was ‘Pajero’ which
sounded kind of good. But problematic was
that in Spanish it did no...
Crazy Business Story 3
• Ritzel was very pleased with his management
internship. At the end of it, he was asked to
make a ...
Result

• As used within a Swiss business
environment Ritzel was talking
about the potentials and dangers and
tried to rai...
One last Crazy Business Story
• An innovation for vaccuum cleaners lead one
company almost to bankruptcy

19.12.2013

www....
Result

• Simply too quiet for the US (Hoover-ized) market >
perceived not strong enough

20. April 2011

www..wib.ch by l...
Wishing you merry xmas and a
happy new year and eventually
avoid some of the dilemmas you
will be facing almost daily
www....
Screenshots from the webcast

19.12.2013

32
19.12.2013

www..wib.ch by lukas ritzel / management thinking mistakes

33
19.12.2013

www..wib.ch by lukas ritzel / management thinking mistakes

34
19.12.2013

www..wib.ch by lukas ritzel / management thinking mistakes

35
19.12.2013

www..wib.ch by lukas ritzel / management thinking mistakes

36
19.12.2013

www..wib.ch by lukas ritzel / management thinking mistakes

37
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for Harvard University by lritzel - The Management Thinking Mistakes files

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This was the last lecturing to finish the course on Management Dilemmas of the 21st Century by Dr Mark Esposito where i was invited to participate as lecturer and as well coach for the students project on the Management Thinking Mistakes App developed by WiB Solutions / LRitzel

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  • http://en.wikipedia.org/wiki/Pampas_catThe Mitsubishi Pajero (/pəˈdʒɛroʊ/; Spanish: [paˈxeɾo]; Japanese パジェロ [padʑeɽo])[1][2] is a sport utility vehicle manufactured by Mitsubishi Motors. It was named after Leopardus pajeros, the Pampas cat which is native to the Patagonia plateau region of southern Argentina.[3] However alternative names have been used for many markets overseas. It is known as the Mitsubishi Montero (meaning "mountain hunter"[4]) in Spain, India, and the Americas
  • Leave Your Complaints Somewhere ElseIn Switzerland, and most of the western world, people like to complain. We like to complain about a bad restaurant, about a bad neighbor, or how homework sucks, or how a teacher is just terrible. We like to insult our leaders (who hasn’t made a Bush joke?), or just whine on a bad day. Complaining is part of western culture. Its part of who we are.In Thai culture this is very much not the case. In the land of smiles its considered crude to complain. If you have a problem, deal with it, no one else wants to hear it. Its also very rude to complain to someone that is causing you distress, as it is pratically insulting them in front of their face!Being opposite cultures in this respect is obviously bound to cause serious friction. Let’s start with the impression a Thai would have watching a foreigner complain. Mostly, the foreigner will appear as an "ugly American." There is good reason - complaining is really crude and offensive in Thai culture! Even worse, it is considered 10x more rude to complain to your elders. Complain to someone older than you, and you are doing a double whammy by breaking the age rules of Thai culture, too!But Swiss see nothing wrong with criticism. It’s everywhere, our newspapers, our blogs, our protests, our letters to politicians. Most Swiss think criticism actually makes the world a better place. After all, how could a problem get fixed if no one points it out? Ignoring the problem only makes it worse!Balance Many foreigners living in Thailand get very frustrated when their 'letters to the editor' and other complaints get shot down and/or ignored. "What is wrong with those Thai people!? There is obviously a problem, why wont they admit it?! Mai pen rai isn't going to cut it!!!" But being in another culture, you have to play by their rules - not yours. But this can sometimes be frustrating as it often goes against core beliefs . . . so there must be a balance, a middle way in which both sides can be happy yet save face. I call it sugar coated constructive criticism. =PThai's actually do complain, but not in the direct western manner. Instead they go at it from the side, being extremely careful and sensitive at the same time. If you and them have a common friend, they will talk through the common friend to get things resolved. Back during my first Thailand visit . . . I screwed up . . . a lot . . . so I would get a lot of complaints through my Thai friend as it was considered much more polite that way than approaching me directly.But also, you should know when to complain. Pick your battles wisely. Not worth a huge inconvience to remove a small inconvience. Highly sensitive constructive criticism, only. Nothing direct. Be especially careful if you are talking to someone older than you.The Way Just remember that going the direct route, in Thai culture, makes you look un-refined and arrogant. Being extra tactful can get you a long way!
  • The Overview Effect ( Frank White@Harvard Extension) Marcia 00:15 Nice job Mira! Elma 00:15 Agreed Marcia, thanks for sharing Mira 00:15 http://vimeo.com/55073825
  • for Harvard University by lritzel - The Management Thinking Mistakes files

    1. 1. Some stories and interactions linked to Management dilemmas and thinking mistakes For Haravrd course 2013 By Lukas Ritzel 2013 www.wib.ch WiB BRINGT THEMEN AUF DEN PUNKT. 19.12.2013 WiB Solutions AG, Aarburgerstrasse 7, CH-4600 Olten WW W . W I B.CH +41 62 297 12 10 1
    2. 2. WiB Solutions Management Thinking Mistakes App managementthinkingmistakes.ch http://denkfehler-app.wikispaces.com/home
    3. 3. Let’s start with X-Mas • Research by Waldvogel (1993) 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 3
    4. 4. How to improve the perceived value of a present (for lritzel) WiB BRINGT THEMEN AUF DEN PUNKT. WW W . W I B.CH WiB Solutions AG, Aarburgerstrasse 7, CH-4600 Olten +41 62 297 12 10 4
    5. 5. How to improve the perceived value of a present (for lritzel) Invest loads of love and time Know the person and his/ her taste Predict correctly something totally new which may delight WiB BRINGT THEMEN AUF DEN PUNKT. WW W . W I B.CH WiB Solutions AG, Aarburgerstrasse 7, CH-4600 Olten +41 62 297 12 10 5
    6. 6. A perfect gift? 20. April 2011 WIB_Dokumentname.pptx 6
    7. 7. A perfect gift? Perceived value 240$ 20. April 2011 WIB_Dokumentname.pptx 7
    8. 8. A perfect gift? Can we top it? 20. April 2011 WIB_Dokumentname.pptx 8
    9. 9. A not perfect gift anymore? Perceived value 175$ 20. April 2011 WIB_Dokumentname.pptx 9
    10. 10. The paradox of gift giving • More not better, says new study by Pamplin marketing professor • The gift recipient is likely to perceive the iPod alone as more generous than the combination of the same player and a iTunes gift card. • Pamplin: “The gift giver or presenter does not anticipate this difference in perspectives and has just cheapened the gift package by spending an extra $15 on it.” 20. April 2011 WIB_Dokumentname.pptx 10
    11. 11. Let’s try a little experiment (perhaps you can play it during new years party with friends) • Note the last 5 digits of your security, or passport or even bank-account number on a piece of paper. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 11
    12. 12. Now guess • How many medical doctors exist in Switzerland? Paste both figures into the blackboard chat 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 12
    13. 13. What has your number to do with the numbers of Swiss doctors? • Nothing! > correct • But perhaps still something according to Timothy Wilson, who has published a book “Strangers to Ourselves”, which was written here at Harvard with his longtime collaborator Daniel Gilbert 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 13
    14. 14. Your answer was influenced by the number you wrote down before • A measurable difference exists, where people with a higher reference number (the one you noted on your note based on your security number). Would in average guess a higher number for the doctors than the ones with a lower number on their notepage 20. April 2011 WIB_Dokumentname.pptx 14
    15. 15. Anchoring Effect 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 15
    16. 16. How to apply that in marketing? • Why would high sellers of televisions via banner adverts appear on a holiday website. 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 16
    17. 17. How to apply that in marketing? • “There’s one really simple explanation If you’re a behavioral economist. If you spend 40 minutes looking at $3,000 holidays online, a $900 television actually seems ok in comparison.” • So where should you try to sell a Rolls Royce? 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 17
    18. 18. 20. April 2011 WIB_Dokumentname.pptx 18
    19. 19. Would that work? www.fitnesschore.com WiB BRINGT THEMEN AUF DEN PUNKT. WW W . W I B.CH WiB Solutions AG, Aarburgerstrasse 7, CH-4600 Olten +41 62 297 12 10 19
    20. 20. Flatrate Bias • Why does it normally work? • 5 factors – – – – – – 20. April 2011 Assurance effect (no stress about eventual changes) Taximeter effect ( we do not always have to look at the growing cost) Convenicene effect (we like it easy and simple) Selfreference effect (we normally overestimate ourselves) Marmalade effect (more is often less read: http://hbr.org/2006/06/more-isnt-always-better/ar/1) WIB_Dokumentname.pptx 20
    21. 21. Marmalade effect WiB BRINGT THEMEN AUF DEN PUNKT. WW W . W I B.CH WiB Solutions AG, Aarburgerstrasse 7, CH-4600 Olten +41 62 297 12 10
    22. 22. Crazy Business Stories 1-4 if time • A collection of business puzzles as a interactive Q&A game • Ask questions, which i can answer by YES and NO only and try to find out the real story behind it. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 22
    23. 23. Crazy Business Story 1 • Marketing Manager Ritzel white-washed his figures to look super-positive. This was the beginning of a success story. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 23
    24. 24. Result • Announced potential, whether realistic or unrealistic, attracts attention. The interest of management was guaranteed and Ritzel received needed resources and appropriate support. This in turn promoted the activities and the commitment of those involved - in the sense of a self-fulfilling prophecy. • Reverse Fortune Telling thinking mistake 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 24
    25. 25. Crazy Business Story 2 • The new car (Mitsubishi) did just not lift up to it’s expectations 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 25
    26. 26. Result • The name of this Mitsubish was ‘Pajero’ which sounded kind of good. But problematic was that in Spanish it did not sound nice at all. Therefore all the Spanish speaking markets where not buying that car. • Read more at http://goo.gl/qCDZl4 • Not yet in the management thinking app but will be added to a 2014 launch version > cultural management dilemmas 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 26
    27. 27. Crazy Business Story 3 • Ritzel was very pleased with his management internship. At the end of it, he was asked to make a presentation to the executive commity. He prepared well but after 5 minutes within the presentation, the whole commity left without saying one single word! 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 27
    28. 28. Result • As used within a Swiss business environment Ritzel was talking about the potentials and dangers and tried to raise some critical points as well. But being in Thailand, the executive committee expected only praise and thanks. To not further loose face, they decided to leave • Not yet in the management thinking app but will be added to a 2014 launch version > cultural management dilemmas 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 28
    29. 29. One last Crazy Business Story • An innovation for vaccuum cleaners lead one company almost to bankruptcy 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 29
    30. 30. Result • Simply too quiet for the US (Hoover-ized) market > perceived not strong enough 20. April 2011 www..wib.ch by lukas ritzel / management thinking mistakes 30
    31. 31. Wishing you merry xmas and a happy new year and eventually avoid some of the dilemmas you will be facing almost daily www.wib.ch Contact: lritzel@wib.ch Thank You to all of you and a thanks to M. Esposito
    32. 32. Screenshots from the webcast 19.12.2013 32
    33. 33. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 33
    34. 34. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 34
    35. 35. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 35
    36. 36. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 36
    37. 37. 19.12.2013 www..wib.ch by lukas ritzel / management thinking mistakes 37

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