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How To Boost Productivity The Explore/Exploit Tradeoff

How To Boost Productivity

productive in the goals that I am aiming at so say you know this podcast means a lot to me so I want to be more

productive when it comes to figuring out how to move this podcast forward how to innovate um how to solve some of the

problems and challenges that we face what are the first things that spring to mind when I start speaking

about productivity with a very focused task I mean I think your a challenge for you is going to be that this podcast has

gotten so big and you've gotten so competent at it that you're going to be in what uh a rut of competence or what

Economist Russ Roberts told me a hammock of competence you're in an area where you're so comfortable and so successful that getting better is going to be

harder because there's disincentive from changing anything that you're doing right and you have to take some risks I

mean you know that you're an entrepreneur if you're going to want to get better you're going to have to take some risk I think that's going to be a difficult thing to do because you know

there are people in this room that depend on you uh risk for you is risk for them too and so I think you have to

start thinking about what would be some smart risks if you want to innovate with the podcast what might that look like and finding ways to run small

experiments I'm a huge fan of low stakes practice right how can you set up some low stakes practice for what might be a

worthwhile larger experiment and I think that's the same for individuals dring in their career

like I love this phras my my favorite my absolute favorite phrase in range was is a paraphrase from this woman named

herminia Ibara who's a professor at the London business school and she studies how people make work transitions so her

phrase was we learn who we are in practice not in theory so the thesis of her work is that there's this idea that

you can just introspect and go forth and know what you should be doing you know like like Clark Kent running into a

phone booth and ripping off his and becoming comes out as Superman but work is part of identity and it doesn't

change like that from introspect you actually have to go try something see how it went what was unexpected what did

you learn that you might be interested in or or that you're better at that you didn't what's something that you're good at that you realize you're not

using and then you make your next step based on that right and I think when you're so competent and successful and

getting only you know tons of positive feedback for something uh it becomes hard to take risk and so I think that'll

be a challenge for you because if you take a sufficient amount of risk right you want to be in your zone of of

optimal push so for anything you're doing if you're doing practicing whatever physical skill anything if

you're not at least like 15 20% of the time failing then you're not in your zone of optimal push where you're

getting as much better as you possibly can and I think when you have something that's

very successful that's hard and so I would start thinking about what risks you're willing to take and it doesn't

mean it's a failure if something goes backward right if the views go down or whatever metric you're you're measuring on it's interesting it's supp to see

something it's one of my great obsessions in life and it's also one of the things that keeps me up at night bugs me in the shower is um how to keep

The Explore/Exploit Tradeoff

a team conducting experiments and failing more when they are successful so when this podcast went to number one in

Europe I hir ahead of failure and her sole responsibility is to increase the rate of failure and experimentation in

our team which means just get all of our different departments we've got different departments in this particular business so there's 40 40 odd people in

this company called the D CEO and there is a production team there is the social media team there's the commercial team

for example and there's the guest booking and Logistics team and I I felt

we're actually in La driving down the road and I was speaking to jamaa who's the head of the guest booking and research team and I was saying like one

of the the most important thing now now that we're number one is that we keep like disrupting ourselves because there's going to be some kid like we

were three three years ago that because of their naivity that they're not encumbered by all of this sort of like

convention and all this success so hide a head of failure and experimentation who's in our team has been working and

now in in the last couple of days we're running an experiment where every single one of those departments has essentially

like a failure assistant in it who is who's because you know what happens with people they they get busy doing their

job and experimentation and failure is always secondary to their job so if we put failure people into the each team

and they drive the experiments they understand the team they drive the experiments they measure them and most importantly they report their failures

and experiments back to the whole team because there's really transferable learnings for example there was one the other day where the social media team

discovered this thing on Tik Tok which allows us to look at a guest like you and find your most popular videos ever

on Tik Tok with a click and the social media team had figured that out which was really useful for them but then the research team over here that are booking

guests who are trying to find the best videos that a David has ever made they also benefited from just the discovery

of that button because instead of having to scroll through the entire Tik Tok they can press one button and see your most popular videos so it's all there's

this real 1 plus 1 equal 3 getting the teams to share their fails failures and experiments so they don't have to fail

in the same ways so what did you just write down this this brings up so much stuff because the fundamental problem

you're getting at here is the one called the explore exploit tradeoff right um and so explore is what it sounds like

looking for new knowledge or new things that you can do that'll add value exploit is taking stuff you're already good at that you already know and

drilling down on it and this is like the fundamental challenge for people in organizations that did good is once

they've find something they're really good at and they drill down in it they tend to ditch explore modee yeah

right and balancing that explore exploit and there's all these of course you know these like famous business cases like

Kodak invents the digital camera and scuttles it because they're like why would we disrupt our own business but

there was this fascinating work led by a guy named dashen Wong in Northwestern uh who does like people will do Career

Development studies looking at 20 people and he'll look at 20,000 people you know so his work's just fascinating and he

what he saw in this work with his colleagues was that people tend to have

hot streaks in their careers their best work tends to come in clusters most people will only have one

some people will have more than one if they're lucky and reliably what precedes a hot Ste he was looking at I think it

was like 26,000 like film directors artists scientists reliably what precedes a hot

streak is a period of exploration where they're trying these different styles they're going broad they're they're

keeping a smaller team so they can be nimble they're moving between teams and then they find something and they they drill into it and if going to have

another hot streak they do it again they Zoom back out and they go to this explore explore explore and then exploit

so they toggle between these modes instead of staying just in one but the clear message of his work is that

exploration precedes a hot streak and if you don't do the exploration you just settle into exploit at sort of a

middling level then you're you're kind of sacrificing your your hot streak so that that was one of the things that came up for me the other thing was this

you got to something this idea of people not only doing things that might fit fail and I think that's great that they have the title failure right cuz you'll

have the uh you know Adam Grant who I think we both know is he he he mentioned me

some once something called the hippo effect where it's like the opinion of the highest paid person in the room I

think the is the acronym where their their signaling is really important for everyone else so if you're not just

giving lip service like yeah failure is good but actually giving people that title I think that's a great signal for

you're underwriting risk you're underwriting risk for people psychologically and you're creating what

what scientists who study sort of networks like groups of teams call an import export business of ideas and this

is one of the Hallmarks of organizations and and ecosystems that learn and adapt to to a

changing world and the import export business of ideas means you need to have information flowing through an

organization you have people doing different things maybe people even moving teams here and there so I always think of the engineer uh Bill Gore who

created the company or founded the company that created gortex and he fashioned the company based in his observation that organizations often do

their most impactful work in times of Crisis because the disciplinary boundaries go out the window and people

start what can I learn from my neighbor you know and working together or do he like to say real communication happens

in the carpool which I think is a funny saying but I worry about that with more hybrid and remote work where you can't

necessarily just rely on Serendipity for people to be sharing these ideas in this

informal way and so I actually think we have to be a lot more thoughtful about setting up our own import export

business of ideas internally and it sounds to me like that's what you're doing okay so what about then on in an individual level how do I as an

individual I've got you know lots of things I'm doing I'm writing some books at the moment I do the podcast lots of other things how do I become more

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