Kahneman Quotes

Daniel Kahneman is an Israeli-American psychologist notable for his work on the psychology of judgment and decision-making, for which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences.

His empirical findings challenge the assumption of human rationality prevailing in modern economic theory. In the same year, his book Thinking, Fast and Slow, which summarizes much of his research, was published and became a best seller.

„True intuitive expertise is learned from prolonged experience with good feedback on mistakes.“

„We think, each of us, that we’re much more rational than we are. And we think that we make our decisions because we have good reasons to make them. Even when it’s the other way around. We believe in the reasons, because we’ve already made the decision.“

„There’s a lot of randomness in the decisions that people make.“

„Nobody would say, ‘I’m voting for this guy because he’s got the stronger chin,’ but that, in fact, is partly what happens.“

„It is the consistency of the information that matters for a good story, not its completeness. Indeed, you will often find that knowing little makes it easier to fit everything you know into a coherent pattern.“

„We’re blind to our blindness. We have very little idea of how little we know. We’re not designed to know how little we know.“

„We are very influenced by completely automatic things that we have no control over, and we don’t know we’re doing it.“

“philosophical“

philosophical: of, relating to, or based on philosophy; having a calm attitude toward a difficult or unpleasant situation; characterized by the attitude of a philosopher; calm or unflinching in the face of trouble, defeat, or loss.

„They got into a philosophical debate about what it means for something to be natural.“ And „He’s trying to be philosophical about their decision since he knows he can’t change it.“ First known use 14th century.

Synonyms: abstract, logical, metaphysical, profound, rational, thoughtful. Also: calm, composed, deep, learned, resigned, stoic, serene, temperate. (MerriamWebster)

Being philosophical in the American context if often considered to be detached, abstract, impractical, unpragmatic, even arrogant.

The importance of focus

In his TedEd talk Richard St. John quotes successfull people in order to stress the importance of focus:

James Cameron, producer of Titatnic and Avatar, two of the highest-grossing films of all time: „You’ve got to be super focused like a laser to get anthying worthwhile done. When I did Avatar I was focused for four years.“

Larry Page, co-founder of Google: „You should focus on one important goal and you need to be single-minded about it.“

Jaymie Matthews, astrophysicist and mission scientist, „Focus is the key word for our success. We pulled this off on a tight budget and short time line because we did one thing exceptionally well.“

Tom Monaghan, founder of Domino’s Pizza: „A fanatical focus on doing one thing well.“

Bill Gates: „If you want to be a great software company, you have to be only a software company. You can’t dabble in other things.“

Imagination and Focus

„You can’t depend on your eyes when your imagination is out of focus.“ Mark Twain

„Concentrate all your thoughts upon the work at hand. The sun’s rays do not burn until brought to a focus.“ Alexander Graham Bell 

“That’s been one of my mantras – focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.“ Steve Jobs

„I don’t focus on what I’m up against. I focus on my goals and I try to ignore the rest.“ Venus Williams

„My approach to every game was to try to erase the games that were before and try to focus on the game at hand.“ Cal Ripken, Jr.

single-minded

single-minded: having only one purpose, goal, or interest; focused on one thing; having one driving purpose or resolve. First known use 1836.

Synonyms: bent (on or upon), bound, decisive, do-or-die, firm, hell-bent (on or upon), intent, purposeful, resolute, resolved, set. Antonyms: faltering, hesitant, indecisive, irresolute, undetermined, unresolved, vacillating, wavering, weak-kneed.

In American thinking to be single-minded is always positive. It means to be wholly focused. 

Always positive?

Impatience

According to a survey conducted in 2015, even though almost 80% of Americans consider themselves patient, a vast majority of them behave in ways that display incredible impatience. For example, 96% of Americans will consume food/drink that they know is hot enough to burn them rather than wait for it to cool. Additionally, 71% frequently exceed the speed limit and more than 50% won’t wait on hold for more than one minute.

Oxymoron

An oxymoron is a contradiction in terms, such as “cruel kindness”. For Americans, “a decision making process” is in many ways an oxymoron.

Processes can offer structure, consistency, overview, monitoring. At best they can support the creation of decision options. In the end, decisions are people-driven. Drawing on personal and professional experience, intuition and judgement, a person or a group of persons makes the decision.

Americans are skeptical of decision making processes, especially when they attempt to substitute them for people. Processes have neither experience, nor intuition nor judgement.

How fast?

The American tendency to work at a fast pace and aim for rapid results continues to confound Germans. They have difficulty identifying a logical and structured plan for action amongst their business dealings, and where Americans see hard work and flexibility in action, they suspect only chaos. When Germans feel overrun by American ‘decisionism’ and see their standards of quality and the rhythm of their own style of working as becoming endangered, this confusion can quickly transform into irritation.

A bad decision is better than no decision.” There are few Americans likely to disagree with this popular saying. Germans, however, would tend towards saying the exact opposite. Sometimes even a good decision will find no supporters.

From the American perspective, it is the client who is the most significant factor in determining  the deadline for a given decision. Americans value a client-oriented business model. Because Americans tend to operate under the assumption that this same dynamic exists in in Germany as well, they find it difficult to understand why their German colleagues would risk upsetting a customer over time wasted during the decision-making process.

Priorities and time factors can change during the process of making any decision. Americans prefer to divide this process up into multiple sub-processes or steps. The sequence of these steps must remain flexible – meaning that it should be possible to change their order, or even skip a step or two in between if necessary. From this point of view, the structured discipline of the German decision-making process can appear exceedingly rigid and in-flexible – occasionally appearing as though it would directly conflict with the purpose of the decision itself.

It is almost as though the decision-making process would be more important than the final decision. To Americans, the German approach of assigning so much importance to the process of making a decision as to possibly loose perspective of the final decision itself can seem rather paradoxical. For this reason, one might suspect that simple indecision is being masked by a seeming concern for ‘attention to detail’.

Of course the German understandings of process and customer relations play a role here (according to the motto: ‘The client wants a solution from us. Our processes guarantee a solution, so the client knows that he can wait.’) But surely there must be something more involved; Germans can see that during the process of making an important decision one must also make a series of decisions which are smaller, but not insignificant to the bigger picture. These decisions are key elements of a systematic (or self-perpetuating) approach, each de facto requiring more time for consideration.

Ultimately, whether or not the rebounding American approach – making quick decisions, then revising them just as quickly – is actually faster typically depends on the related events. ‘Wir haben mit Äpfeln und Birnen zu tun’ – you can’t compare apples and oranges (or pears). Nevertheless, there will always be those colleagues who will continue do do so, and continue to bicker.

All the way or not at all

The appreciation that Germans have for individual competence and their aversion towards incalculable risks sometimes set the condition of a certain degree of caution used when working with innovations. 

Therefore, it fits the bill that German companies always approach the execution of updates and improvements in a cautious and well thought-out manner. All of the pros and cons must be carefully weighed, and all influential factors taken into consideration before a critical decision is made.

In this case, a qualified expert will often be called in to assist. “Professional quality management is often the condition for the commissioning of tasks. This is often bound together with unnecessary effort, especially in the case of small businesses; often the incorporation of external consultants is better”, explained an expert from the Chamber of Crafts in an article. 

And so there exist a plethora of external experts, consultants, institutions, and established norms for German business owners to turn to in case they should lose perspective in the tangle of modern innovation. 

These exist to help to make well-founded and analytically grounded decisions. It has even developed into its own field of study at many technical and business colleges: studies to the systematic approach of solving problems and to the development of complete solutions have begun to fill textbooks and lesson plans. 

These approaches help to calculate multiple types of risk in advance, thereby countering the deeply rooted nervousness that comes together with risks and unforeseen situations.

Dignity of Work

About the dignity of work and the rights of workers the U.S. Conference of Catholic Bishops writes:

„The economy must serve people, not the other way around. Work is more than a way to  make a living; it is a form of continuing participation in God’s creation. If the dignity of work is to be protected, then the basic rights of workers must  be respected: the right to productive work, to decent and fair wages, to the organization and joining of unions, to private property, and to economic initiative.“

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