Comments on: Are You Satisficing? http://www.businesspundit.com/are-you-satisficing/ Entrepreneurship, Startup Companies and Business Philosophy Thu, 18 Mar 2010 15:12:17 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Erik http://www.businesspundit.com/are-you-satisficing/comment-page-1/#comment-18277 Erik Fri, 23 Oct 2009 09:26:22 +0000 http://www.businesspundit.com/?p=13317#comment-18277 Not sure that you understand all the complexities of Herb Simon's term. It's unfortunate that this word is now being tossed around without being fully understood. Satisficing was developed as a contrast to the classical economic concept of optimisation, which assumed that the best decision was always the optimal one. However, Simon pointed out that few in the real world (outside of Adam Smith's head, that is), be they organisations or individuals, have enough time to gather all of the information needed to make an optimal decision. What optimisation failed to recognize, more specifically, was the inherent cost in gathering the information required to make an optimal decision. To put it into more user-friendly terms, you can't research buying a new car forever. At some point, you have to stop doing research, and just go for it. This is the kind of decision that large, complex organisation are confronted with on a regular basis. At some point they have to stop gathering information about the decision, as this costs money. See also, 'behavioral economics.' Not sure that you understand all the complexities of Herb Simon’s term. It’s unfortunate that this word is now being tossed around without being fully understood. Satisficing was developed as a contrast to the classical economic concept of optimisation, which assumed that the best decision was always the optimal one. However, Simon pointed out that few in the real world (outside of Adam Smith’s head, that is), be they organisations or individuals, have enough time to gather all of the information needed to make an optimal decision. What optimisation failed to recognize, more specifically, was the inherent cost in gathering the information required to make an optimal decision. To put it into more user-friendly terms, you can’t research buying a new car forever. At some point, you have to stop doing research, and just go for it. This is the kind of decision that large, complex organisation are confronted with on a regular basis. At some point they have to stop gathering information about the decision, as this costs money. See also, ‘behavioral economics.’

]]> By: Lela Davidson http://www.businesspundit.com/are-you-satisficing/comment-page-1/#comment-16290 Lela Davidson Wed, 19 Aug 2009 01:49:53 +0000 http://www.businesspundit.com/?p=13317#comment-16290 Oscas, I agree - great advice. And thanks, Stephen. It kept me going this week! Oscas, I agree – great advice. And thanks, Stephen. It kept me going this week!

]]> By: Oscar http://www.businesspundit.com/are-you-satisficing/comment-page-1/#comment-16203 Oscar Mon, 17 Aug 2009 10:37:39 +0000 http://www.businesspundit.com/?p=13317#comment-16203 "The marketing guy did the easy thing – he gave the assignment of “advertising” it to the “advertising” agency. He didn’t do the rigorous positioning work, the metaphor elicitation with customers, the ethnological and anthropological observational in situ research. “We know our customers. We don’t need to do that.” " I completely agree with this. I think everyone should care for his product, especially in the marketing phase. “The marketing guy did the easy thing – he gave the assignment of “advertising” it to the “advertising” agency. He didn’t do the rigorous positioning work, the metaphor elicitation with customers, the ethnological and anthropological observational in situ research. “We know our customers. We don’t need to do that.” ”

I completely agree with this. I think everyone should care for his product, especially in the marketing phase.

]]> By: Stephen Denny http://www.businesspundit.com/are-you-satisficing/comment-page-1/#comment-16145 Stephen Denny Sat, 15 Aug 2009 19:44:50 +0000 http://www.businesspundit.com/?p=13317#comment-16145 Lela: thanks for your very kind words - glad the piece resonated with you. Satisficing happens when we (or they) need the mental short-cuts that allow us (or them) to quickly make a good enough, safe enough decision and move on to the next fire on the to-do list. Getting book published is hard enough. Getting an agent's attention is even harder. Your agent truly can't devote the time and energy to your crafted query that you feel it deserves because they get hundreds a week - they're looking for "a good enough reason to count you out." Thanks again - good luck with your book - I see you're from the neighborhood and that we know some of the same people! Regards, Stephen Denny Note to CMO Lela: thanks for your very kind words – glad the piece resonated with you. Satisficing happens when we (or they) need the mental short-cuts that allow us (or them) to quickly make a good enough, safe enough decision and move on to the next fire on the to-do list.

Getting book published is hard enough. Getting an agent’s attention is even harder. Your agent truly can’t devote the time and energy to your crafted query that you feel it deserves because they get hundreds a week – they’re looking for “a good enough reason to count you out.”

Thanks again – good luck with your book – I see you’re from the neighborhood and that we know some of the same people!

Regards,
Stephen Denny
Note to CMO

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