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Thinking

The Medici Effect

In 2004, the American management guru and entrepreneur Frans Johansson published his book ‘The Medici Effect’.

Johansson’s book owes its name to the rich bankers family De Medici, which had a lot of influence in Italy in the 15th century. This family unleashed an explosion of creativity during this period and encouraged painters, sculptors, poets, scientists, philosophers and architects to come up with inspiring ideas.

By supporting them financially, they were given freedom, which ultimately laid the foundation for the Renaissance. It was precisely the combination of different disciplines that brought a lot of innovation to art, which in turn led to innovation and renewal in that time period.

AQUAVIT

One of the lengthier examples cited in the book is that of Marcus Samuelsson, chef at Aquavit, a Swedish restaurant in New York, who is one of the pioneers of what we now know as fusion cooking.

In the mid-90s, the 24 year old chef introduced a series of dishes -oysters with mango curry sorbet, caramelised lobster with seaweed pasta – that resulted in the New York Times’ food critic raising Aquavit’s rating from a respectable one star to a rare three star, turning it into one of the city’s most popular restaurants.

Samuelsson is now one of America’s most famous chefs and according to Johansson, his talents stem from low associative barriers – a child-like ability to draw associations that adults tend to lose.

Samuelsson’s familiarity with world cuisine comes in part from his early experience on a cruise liner and he connects this with his base knowledge of Swedish ingredients and cooking techniques to great effect. “He’s placed himself at the intersection of cultures, where creativity is at its best,” says Johnansson.

The other postulate of the Medici Effect is more ideas lead to better ideas – and that, diverse teams generate more ideas.

One company that leverages the Medici Effect is Hewlett Packard, whose Lab in the US has 32 scientists from 13 countries and 13 disciplines.

Johansson says the company has a rule that new hires should never have the same background as any existing member of the team.

“They recognise that diversity drives innovation,” he says. “That’s because different cultures think of the same things differently.”

COMPARING APPLES AND ORANGES

Our resistance to comparing seemingly dissimilar or unrelated things stifles the cross-pollination of ideas from different disciplines.

Life, it turns out, doesn’t happen in compartmentalized silos. There’s little to be learned from comparing similar things.

To facilitate cross-pollination, your team should comprise of people with diverse interests.

The fit often won’t be perfect, but the act of comparing different perspectives will spark new lines of thinking.

To compare different ideas, you have to collect them first.

The more diverse your collection, the more interesting your output.

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Thinking

Six Thinking Hats

Six Thinking Hats. A Parallel Thinking Process. Maximize productive collaboration. Make meetings much shorter and more productive. Spot opportunities where others see only problems. 

Six Thinking Hats Slide Show



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Thinking

Fermi Thinking

Named after Enrico Fermi, the Italian-American physicist who created the world’s first nuclear reactor, Fermi thinking is designed to help us to make fast, useful calculations with little concrete information. 

It was Fermi’s belief that the ability to make educated guesses when facing unknowns or complex problems was a crucial skill, not just in science but across many domains.

Example:

How many piano tuners are there in Chicago?

Take a minute to think about how you might approach this problem. How do you estimate this quantity without looking up anything online?

At first glance, this might seem like a really hard question to answer without additional information. However, we can produce a reasonable estimate by making a few sensible assumptions.

Let’s say that Chicago has around 5 million people. Pianos are generally owned by families rather than by individuals, and perhaps each family in Chicago has 4 people. Then there are around 1.25 million families in Chicago.

Let’s assume that one in every ten families owns a piano that is tuned regularly. That would mean that there are around 125,000 pianos in Chicago.

How many piano tuners do we need to maintain these pianos? We can assume that each piano should be tuned once per year, so there are 125,000 piano tunings in Chicago each year.

If each piano tuner works 8 hours per day on each weekday, and if each piano takes around 2 hours to tune, then a piano tuner can tune around 4 pianos per day for 250 days per year. That’s around 1,000 piano tunings per piano tuner each year.

So we can estimate that we need around 125 piano tuners to perform the 125,000 piano tunings in Chicago each year.

While we can’t claim this answer is exactly accurate, we can claim that it is a fair estimate of the actual value. That’s the goal of a Fermi estimation problem.

Conclusion

Fermi thinking often requires us to make reasonable assumptions and estimates about the situation in order to come up with an approximate answer. 

Also you need to be able to explain and justify what you did when coming up with the solutions like in the example above.

In business, it is often necessary to make quick estimates when neither time nor resources are available for making traditional assessments. 

At this juncture, even a gross estimate is very useful to head off ill-advised expenditures, which are unlikely to generate a baseline profit. A back-of-the-envelope determination of market size, costs, or technical feasibility may be needed. 

Such a calculation ignores details, focuses only on major factors, and aims at an estimate.

Until recently, business educators interested in teaching students to use Fermi questions would find it difficult to locate published questions related to the business world. Fermi questions and their solutions tended to involve physics, chemistry, biology, and other so-called hard science

However, this may be changing as the trend is for consulting firms and corporations such as Google and Microsoft to ask applicants to try to answer Fermi questions, as part of the job interview process, with the goal of identifying creative thinkers