Coleman McCormick

Archive of posts with tag 'Risk'

Weekend Reading: COVID Edition

April 25, 2020 • #

⚗️ COVID and Forced Experiments

Benedict Evans looks at what could return to normal after coronavirus, and what else might have accelerated change that was already happening.

“Every time we get a new kind of tool, we start by making the new thing fit the existing ways that we work, but then, over time, we change the work to fit the new tool. You’re used to making your metrics dashboard in PowerPoint, and then the cloud comes along and you can make it in Google Docs and everyone always has the latest version. But one day, you realise that the dashboard could be generated automatically and be a live webpage, and no-one needs to make those slides at all. Today, sometimes doing the meeting as a video call is a poor substitute for human interaction, but sometimes it’s like putting the slides in the cloud.”

📈 COVID-19: What’s wrong with the models?

One of the things continually aggravating about all of the data, models, projections, and analyses about COVID-19 is how little anyone cares to retroactively analyze prior predictions. Over the last two months the predictions have been all over the map, and as time marches on and many are wrong, some are right, there’s no analysis of what assumptions were made that turned out not to be true causing the wide divergence between projection and reality.

Peter Attia calls out here something rarely acknowledged about why projections are wicked:

“Projections only matter if you can hold conditions constant from the moment of your prediction, and even then, it’s not clear if projections and models matter much at all if they are not based on actual, real-world data. In the case of this pandemic, conditions have changed dramatically (e.g., aggressive social distancing), while our data inputs remain guesswork at best.”

💉 The Pandemic Isn’t a Black Swan but a Portent of a More Fragile Global System

Nassim Taleb, making his way into the New Yorker.

Weekend Reading: Tradeoffs, the Margins, and PR FAQs

December 21, 2019 • #

⚖️ Tradeoffs: The Currency of Decision Making

Farnam Street:

Time is our most fundamental constraint. If you use an hour for one thing, you can’t use it for anything else. Time passes, whatever we do with it. It seems beneficial then to figure out the means of using it with the lowest possible opportunity costs. One of the simplest ways to do this is to establish how you’d like to be using your time, then track how you’re using it for a week. Many people find a significant discrepancy. Once we see the gulf between the tradeoffs we’re making and the ones we’d rather be making, it’s easier to work on changing that.

The article reminds me of Sowell on economics. Take this and apply to any other life domain:

Economics is the study of the use of scarce resources which have alternative uses.

💡 The Power of the Marginal

A timeless one from Paul Graham, 2006. On the advantages of outsiders:

Even in a field with honest tests, there are still advantages to being an outsider. The most obvious is that outsiders have nothing to lose. They can do risky things, and if they fail, so what? Few will even notice.

The eminent, on the other hand, are weighed down by their eminence. Eminence is like a suit: it impresses the wrong people, and it constrains the wearer.

Outsiders should realize the advantage they have here. Being able to take risks is hugely valuable. Everyone values safety too much, both the obscure and the eminent. No one wants to look like a fool. But it’s very useful to be able to. If most of your ideas aren’t stupid, you’re probably being too conservative. You’re not bracketing the problem.

📝 PR FAQs for Products

This is an extension of the Amazon mantra of forcing your team to “write the press release” for a product or feature before starting on it. The goal is to concretely visualize the end state as clearly as you can, and get on the same page strategically to outline the why of what you’re building. The PR FAQ is another assistive technique for setting and articulating the goal.