The Secret of Success

Survivorship bias pulls you toward bestselling diet gurus, celebrity CEOs, and superstar athletes. You look to the successful for clues about the hidden, about how to better live your life, about how you too can survive similar forces against which you too struggle. Colleges and conferences prefer speakers who shine as examples of making it through adversity, of struggling against the odds and winning.

The problem here is that you rarely take away from these inspirational figures advice on what not to do, on what you should avoid, and that’s because they don’t know. Information like that is lost along with the people who don’t make it out of bad situations or who don’t make it on the cover of business magazines – people who don’t get invited to speak at graduations and commencements and inaugurations.

The actors who traveled from Louisiana to Los Angeles only to return to Louisiana after a few years don’t get to sit next to James Lipton and watch clips of their Oscar-winning performances as students eagerly gobble up their crumbs of wisdom.

In short, the advice business is a monopoly run by survivors. As the psychologist Daniel Kahneman writes in his book Thinking Fast and Slow, “A stupid decision that works out well becomes a brilliant decision in hindsight.” Before you emulate the history of a famous company, Kahneman says, you should imagine going back in time when that company was just getting by and ask yourself if the outcome of its decisions were in any way predictable. If not, you are probably seeing patterns in hindsight where there was only chaos in the moment. He sums it up like so, “If you group successes together and look for what makes them similar, the only real answer will be luck.”

Entrepreneur Jason Cohen, in writing about survivorship bias, points out that since we can’t go back in time and start 20 identical Starbucks across the planet, we can never know if that business model is the source of the chain’s immense popularity or if something completely random and out of the control of the decision makers led to a Starbucks on just about every street corner in North America. That means you should be skeptical of any book promising you the secrets of winning at the game of life through following any particular example.

David McRaney Read more here

How to be lucky in life

According to psychologist Richard Wiseman, luck – bad or good – is just what you call the results of a human beings consciously interacting with chance, and some people are better at interacting with chance than others.

Over the course of 10 years, Wiseman followed the lives of 400 subjects of all ages and professions. He found them after he placed ads in newspapers asking for people who thought of themselves as very lucky or very unlucky. He had them keep diaries and perform tests in addition to checking in on their lives with interviews and observations. In one study, he asked subjects to look through a newspaper and count the number of photographs inside. The people who labeled themselves as generally unlucky took about two minutes to complete the task. The people who considered themselves as generally lucky took an average of a few seconds. Wiseman had placed a block of text printed in giant, bold letters on the second page of the newspaper that read, “Stop counting. There are 43 photographs in this newspaper.” Deeper inside, he placed a second block of text just as big that read, “Stop counting, tell the experimenter you have seen this and win $250.” The people who believed they were unlucky usually missed both.

Wiseman speculated that what we call luck is actually a pattern of behaviors that coincide with a style of understanding and interacting with the events and people you encounter throughout life. Unlucky people are narrowly focused, he observed. They crave security and tend to be more anxious, and instead of wading into the sea of random chance open to what may come, they remain fixated on controlling the situation, on seeking a specific goal. As a result, they miss out on the thousands of opportunities that may float by. Lucky people tend to constantly change routines and seek out new experiences. Wiseman saw that the people who considered themselves lucky, and who then did actually demonstrate luck was on their side over the course of a decade, tended to place themselves into situations where anything could happen more often and thus exposed themselves to more random chance than did unlucky people. The lucky try more things, and fail more often, but when they fail they shrug it off and try something else. Occasionally, things work out.

David McRaney -read more here