Noise: A Flaw in Human Judgment

DIAMOND
RATING
Senteo Rating 3.5
04/27/23
views 7886
comments0
Author:Daniel Kahneman, Olivier Sibony, Cass Sunstein
04/27/23
views 7887
comments0
Author:Daniel Kahneman, Olivier Sibony, Cass Sunstein
DIAMOND
RATING
Senteo Rating 3.5

Noise: A Flaw in Human Judgment
Daniel Kahneman, Olivier Sibony, Cass Sunstein, Publisher: Little, Brown Spark 2021
Senteo’s Review information

In the book “Noise: A Flaw in Human Judgment”, authors Daniel Kahneman, Olivier Sibony, and Cass Sunstein take a dive into how “noise” in our lives affects decision making. They focus on where it comes from and what you can do about it along with understanding why its impacts are so great. Kahneman is a noble prize winner and a professor at Princeton University. He received the Nobel prize in economics for his work on prospect theory. It is important to note that Kahneman is not in fact an economist by education, but rather a psychologist. This is clearly reflected throughout the topic and the book that he writes about here.

The book has a basic principle: noise, which in this case is defined as external factors which effect people resulting in inconsistent decision making is detrimental and can be found all over the place in all aspects of life. Thus, it is particularly important to be cognizant of the fact that as humans with emotions and irrational tendencies we need to be mindful of the noise in our decision-making practices with which we need to deal with on a daily basis. Kahneman and his co-authors focus on how studies have tended to have fundamental flaws due their lack of control for noise. They give great examples of case studies where decision making effected noise can be clearly seen. One such example was a study based on how Judges will give the same perpetrator different sentences based on the time of day during which they are sentencing, how happy they are at home and so on.

Once again, Kahneman and his co-authors have written a book on an interesting and highly applicable topic which affects our lives on a daily basis. They do a good job of providing a background for their work and supporting their thoughts throughout with compelling evidence an analysis.

While this book might be interesting if you’re new to the topic, it unfortunately falls short of our expectations based on Kahneman’s previous work which we have reviewed. While we appreciate the emphasis of having an evidence backed thesis, much of the book is focused on describing multiple experiments which prove that people are biased and don’t act rationally or make the right judgements all the time. The rest of the books is a discussion about the fact that that mood, weather and other factors create noise and effect our judgements. Unfortunately, for how in depth this book is, it really doesn’t provide many useful insights especially to those who have read Kahneman’s seminal piece: Thinking Fast and Slow.

“This compelling book shows how to connect the image you present to the outside world with the values and norms that operate inside your world of work.”

–Adam Grant, New York Times bestselling author of Originals and Give and Take

“Denise Lee Yohn hit a home run with her first book, What Great Brands Do. Now she’s written FUSION and it is just as provocative. Denise proves beyond a shadow of a doubt that great companies are powered by brand-culture fusion. I highly recommend this book!”

–Ken Blanchard, Coauthor, The New One Minute Manager®, Coeditor, Servant Leadership in Action

Internal culture + External brand = FUSION

For years, leaders at companies like Southwest, Starbucks, and Google have done something differently that’s put their organizations at the top of “the most admired companies,” “best brands,” and “great workplaces” lists. They don’t often talk about that “something” specifically in terms of brand-culture fusion, but, as author Denise Lee Yohn reveals, aligning and integrating their brands and cultures is precisely how they’ve achieved their successes.

Independently, brand and culture are powerful, unsung business drivers. But Denise shows that when you fuse the two together to create an interdependent and mutually reinforcing relationship between them, you create organizational power that isn’t possible by simply cultivating one or the other alone. Through detailed case studies from some of the world’s greatest companies (including Amazon, Airbnb, Adobe, Nike, and Salesforce), exclusive interviews with company executives, and insights from Denise’s 25+ years working with world-class brands, FUSION provides readers with a roadmap for increasing competitiveness, creating measurable value for customers and employees, and future-proofing their business.

This is a must-read for readers interested in workplace culture, brand management, strategy, leadership, employee experience, employee engagement, integration, branding, and organization development.

For anybody else genuinely curious about why and how people make the decision they do, reading Kahneman’s papers and books will provide you with a plethora of insights and groundbreaking thoughts which will help you garner a clearer understanding of human behavior and decision making.

The best book reviews in your inbox!
Subscribe now and receive a special gift with your subscription.


    Leave a Reply

    Noise: A Flaw in Human Judgment
    Daniel Kahneman, Olivier Sibony, Cass Sunstein, Publisher: Little, Brown Spark 2021
    Have you already read this book?
    Here, are people invited to rate the book?

    How useful was this post?

    Click on a star to rate it!

    Average rating / 5. Vote count:

    No votes so far! Be the first to rate this book.

    See content on this topic

    Why do customer relationships really matter? Michael Ruckman explains the fundamentals of healthy customer relationships and why they are important to businesses. The Relationship-Centric Bank
    Michael Ruckman Talks about Customer-Centric Business Models
    What is the difference between retention and loyalty, and between customer-centric and relationship-centric business models? How exactly can one monetize customer experience? Michael Ruckman answers these questions and more…
    Voice On Demand Retail Podcast: Part 2 – The three faces of Digital for Retailers
    Michael Ruckman talks about Customer Experiences & Customer Journeys, The three faces of Digital for Retailers and the state of leadership in the retail market today.
    How to Build a Business That Lasts 100 Years
    Join strategist Martin Reeves as he explains how executives can apply six principles from living organisms to build resilient businesses that flourish in the face of change.
    Start With Why: How Great Leaders Inspire Everyone To Take Action
    Simon Sinek explains that starting with ‘why’, having a strong driving motivation behind the work you do, can be the deciding factor between success and failure for a business venture.
    Senteo Rating
    Leaders Eat Last: Why Some Teams Pull Together and Others Don’t
    Senteo Rating
    Great by Choice
    Related Book Reviews & Education
    JC Quintana attempts to highlight the importance of focusing on building relationships in business. He highlights 7 key elements that are paramount in making up successful business relationships.
    The authors argue that games will change how all of us work – for anyone convinced that engagement is a key ingredient of the future of work, they believe games are the definitive model.
    Clayton M. Christensen follows The Innovator’s Dilemma with The Innovator’s Solution, an answer for how businesses can create and sustain growth within their company in the face of innovation.
    Chip breaks down Maslow’s well-known hierarchy, only to recreate it using a business focus and emphasis on three primary players: employees, customers, and investors. Peak is the result.