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10/15/2024

“…If you have a dumb incentive system, you get dumb outcomes…”

“…If you have a dumb incentive system, you get dumb outcomes…” This famous quote by the late Charlie Munger remains as relevant as ever. In another brilliant article from the Bartleby column in The Economist, the author explores the challenges of designing incentive systems that lead to meaningful and desirable outcomes. The article highlights the difficulties in crafting systems that not only motivate but also avoid unintended consequences. There are 1.001 (like in Sherazade tale) ways an incentive system can go wrong, so it's important to take your time. Pilot programs and thorough reviews are crucial to ensure the system works as intended and doesn't produce harmful side effects—something the article explores in great detail. A must-read for anyone interested in management. Hope you enjoy it as much as I did. When workplace bonuses backfire https://www.economist.com/business/2024/10/10/when-workplace-bonuses-backfire from The Economist

- Pedro

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Useful tips series - Looking for a job? or are you preparing to hire someone? This post is for you

Looking for a job? or are you preparing to hire someone? This is for you. (useful tips series) Based on on GlassDoor these are the top 50 questions that the formers should prepare and the latters avoid :-): 1.What are your strengths? 2.What are your weaknesses? 3.Why are you interested in working for [insert company name here]? 4.Where do you see yourself in five years? Ten years? 5.Why do you want to leave your current company? 6.Why was there a gap in your employment between [insert date] and [insert date]? 7.What can you offer us that someone else can not? 8.What are three things your former manager would like you to improve on? 9.Are you willing to relocate? 10.Are you willing to travel? *(Post COVID-19) 11.Tell me about an accomplishment you are most proud of. 12.Tell me about a time you made a mistake. 13.What is your dream job? 14.How did you hear about this position? 15.What would you look to accomplish in the first 30 days/60 days/90 days on the job? 16.Discuss your resume. 17.Discuss your educational background. 18.Describe yourself. 19.Tell me how you handled a difficult situation. 20. Why should we hire you? 21.Why are you looking for a new job? 22.Would you work holidays/weekends? 23.How would you deal with an angry or irate customer? 24.What are your salary requirements? 25.Give a time when you went above and beyond the requirements for a project. 26.Who are our competitors? 27.What was your biggest failure? 28.What motivates you? 29.What’s your availability? 30.Who’s your mentor? 31.Tell me about a time when you disagreed with your boss. 32.How do you handle pressure? 33.What is the name of our CEO? 34.What are your career goals? 35.What gets you up in the morning? 36.What would your direct reports say about you? 37.What were your bosses’ strengths/weaknesses? 38.If I called your boss right now and asked him/her what is an area that you could improve on, what would he/she say? 39.Are you a leader or a follower? 40.What was the last book you read for fun? 41.What are your co-worker pet peeves? 42.What are your hobbies? 43.What is your favorite website? 44.What makes you uncomfortable? 45.What are some of your leadership experiences / What is your leadership style? 46.How would you fire someone? 47.What do you like the most and least about working in this industry? 48.Would you work 40+ hours a week? 49.What questions haven’t I asked you? 50.What questions do you have for me? Hope this list will be helpful either case :-) https://www.glassdoor.com/blog/common-interview-questions/?utm_source=lifecycle&utm_medium=email&utm_campaign=postonboarding_us&utm_content=day_15_worklife_1&utm_messageid=&cm=EMAIL_LIFECYCLE

- Pedro

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10/14/2024

Have you already baked in, at least as a likely scenario, a >$100 barrel of oil for at least the first half of 2025? If not, why?

Have you factored in the likelihood of oil prices exceeding $100 per barrel for at least the first half of 2025? If not, why? In my opinion, it's not a question of if but when, as a strong retaliation from Israel to the Iranian attack seems almost inevitable. The timing is uncertain—perhaps only after the U.S. elections—but even that is speculative, given the potential unpredictable impact on the election outcome as events unfold. You can't say this would come as a surprise, given the geopolitical situation in the Middle East, which is on the verge of a significant and impactful development. Great article from The Economist on this topic, which I highly recommend. Could war in the Gulf push oil to $100 a barrel? https://www.economist.com/finance-and-economics/2024/10/07/could-war-in-the-gulf-push-oil-to-100-a-barrel from The Economist

- Pedro

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Contrary to previous beliefs and models, it seems Antarctica is undergoing significant changes.

Contrary to previous beliefs and models, it seems Antarctica is undergoing significant changes. Known as Earth's refrigerator, situated in a vast ocean and acting as a major carbon dioxide sink, Antarctica is now showing signs of thawing—potentially leading to major impacts on sea levels and global temperatures. It appears that Antarctica is starting to behave similarly to the Arctic, which is a major concern for the scientific community. Given the delicate balance of Earth's ecosystem, this development represents one of the worst-case scenarios and news we could face/receive. On the radar! Antarctica, Earth’s largest refrigerator, is defrosting https://www.economist.com/interactive/science-and-technology/2024/03/27/antarctica-earths-largest-refrigerator-is-defrosting from The Economist

- Pedro

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10/13/2024

A começar um novo livro - Da Democracia na América, de Alexis de Tocqueville

A começar um novo livro! Da Democracia na América, de Alexis de Tocqueville, com prefácio de João Carlos Espada e tradução de Carlos Correia Monteiro de Oliveira. Aproveitando o facto de estarmos em período de eleições nos EUA, não há melhor momento para ler este clássico de ciência política. Avaliação da comunidade goodreads 4..05/5 (Qualitativo - Bom n=25.898) https://www.goodreads.com/book/show/34928948-da-democracia-na-am-rica "... Pela primeira vez em português, eis o texto integral da mais famosa obra de Alexis de Tocqueville. Desde a sua primeira publicação, em 1835, que «Da Democracia na América» é uma obra indispensável para quem se interessa pela democracia ou se dedica ao seu estudo. Através de uma análise minuciosa que atravessa diversos domínios, como a História, a Filosofia, a Sociologia e a Ciência Política, Tocqueville oferece-nos um retrato lúcido, cada vez mais intemporal, da democracia americana de meados do século XIX: a sua organização política e administrativa, onde destaca, entre muitos outros aspectos, o sistema federal e as comunidades locais; a importância das boas leis, dos hábitos e costumes; os efeitos da moral e da religião; as consequências do desenvolvimento comercial e industrial... Mas vai mais longe, e, com enorme acuidade, analisa também o homem democrático, as suas tendências e paixões e a sua complexa relação com a liberdade e a igualdade. No fundo, e tendo sempre presente o seu país de origem, Tocqueville está também a interrogar-se sobre as razões por que são tão evidentes as diferenças entre os regimes democráticos francês e americano, por que, na América, a sociedade democrática é liberal, e, em contraposição, a democracia francesa demonstra tantas dificuldades em manter um regime político de liberdade. ..."

- Pedro

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Are you aware of what is Systems Thinking? I wasn't and this BCG podcast triggered my interest

I just listened to the Ideas podcast by BCG featuring Michael C. Jackson on Systems Thinking, and I really enjoyed it. It introduced me to a domain I wasn’t previously aware of, and although it seems potentially complex, it also appears to be highly useful. As a result, I’ve added three of Jackson’s books to my business reading list, and I plan to explore this topic further to see how it might be applied in practice: 1- Critical Systems Thinking: A Practitioner’s Guide 2- Critical Systems Thinking and the Management of Complexity 3- Systems Approaches to Management From what I gathered, the key traits of critical systems thinking include: -Its ability to address complex and dynamic problems. -Understanding the interrelations between different parts of an organization (i.e., systems), which helps avoid optimizing a single area or department at the expense of the overall organization. Often, these local optimizations are in conflict with broader organizational goals. -The framework allows for multiple perspectives within an organization, helping to understand the interdependencies that exist. Ultimately, critical systems thinking helps organizations generate more value by providing an integrated framework for overall systems optimization, rather than focusing on isolated parts. It will be on my radar! "...In Critical Systems Thinking: A Practitioner's Guide, Michael C. Jackson emphasizes the need for integrating diverse systems methodologies to navigate complexity and uncertainty. Jackson, an emeritus professor of management systems and former dean of the University of Hull Business School, has also served as president of several prominent systems thinking organizations, including the UK Systems Society, the International Federation for Systems Research, and the International Society for the Systems Sciences. His most significant contribution to the field is his development of Critical Systems Thinking (CST), which emphasizes the combined use of different systems approaches to deal with the complexity that leaders face. In a conversation with Martin Reeves, Chairman of the BCG Henderson Institute, Jackson introduces the EPIC process (Explore, Produce, Intervene, and Check), a four-stage, sequential framework to help leaders deploy systems methodologies. Their discussion includes how different systems perspectives can be combined, how theory informs interventions, how organizations are embracing system thinking, barriers to adoption, and the relevance of systems thinking to today’s business environment. ..." https://podcasts.apple.com/es/podcast/thinkers-ideas/id1450867110?i=1000671421317

- Pedro

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10/12/2024

Sobre la brevedad de la vida por Seneca, Alfonso Catapa (Traductor) - Reseña

Pedro Pinto's Reviews > Sobre la brevedad de la vida

Mi valoración 3/5

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Un libro breve y de fácil lectura que nos invita a reflexionar sobre nuestra efimeridad (o brevedad) y la importancia de utilizar el tiempo que tenemos de manera adecuada, constructiva y plena.

El concepto de la brevedad de la vida es relativo y altamente dependiente del uso que hacemos de nuestro tiempo finito.

Las enseñanzas que he extraído del libro y de su autor son:

- El tiempo que tenemos no es corto en términos relativos, pero al desperdiciarlo en actividades fútiles, lo hacemos parecer así.

- Sobrevaloramos actividades, objetivos y valores que, al final, tienen poca importancia y nos aportan poco.

- Prestamos mucha atención a la gestión de nuestras riquezas materiales, pero muy poca al cuidado del tiempo que tenemos.

- Alcanzar la serenidad individual es uno de los bienes más preciados que podemos lograr.

- La libertad es una condición indispensable para una vida plena.

- Debemos evitar lo superfluo y el ocio innecesario.

- Saber vivir en plenitud es una ciencia que debemos estudiar y mejorar a lo largo de toda la vida.

- Debemos vivir el presente y no preocuparnos demasiado por el futuro, ya que depende en gran medida de lo que hacemos hoy.

- La búsqueda de la felicidad puede ser perniciosa, ya que, en muchos casos, es algo utópico.

- Solo aquellos que viven en serenidad y no dependen de una ocupación profesional pueden llegar a la verdadera sabiduría.

- Nunca valoramos la fortuna cuando nos es favorable.

- Es más importante el conocimiento y el legado que dejamos que los bienes materiales y monetarios que acumulamos en vida.