The Ostrich Effect
Where looking away doesn't make your problems go away. Understanding how to be successful with The Network Effects and whether Crypto is dead or alive?
Growth Mindset Ideas
The Ostrich Effect
Researchers have long pointed that we often turn a blind eye to incoming bad news. E.g. Economists, have found that investors are less likely to check their financial status when their investments are falling rather than rising.
Last week, I was talking to an ex-colleague in their late 50s avoiding health check-ups to avoid any medication.
This is the Ostrich Effect.
It is a cognitive bias that explains how people avoid negative information, including feedback that could help them monitor their goal progress. Instead of dealing with the situation, we choose to bury our heads in the sand, like ostriches.
This avoidance make things worse, incurring costs that we might not have had to pay if we had faced things head-on.
I don't how to avoid it. But awareness of it happening I believe is useful. What works for you to avoid the ostrich effect?
The problem doesn’t go away, if you don’t look at it. #Awareness Mindset
Life lessons that you can’t afford to ignore.
The Network Effect
Premise that the value of a product or service increases when the number of people who use that product or service increases.
If you look at yourself as a product or a value offering, the network effect also applies to your growth and success.
When I started my performance coaching practice, one of the VC introduced me to this concept while giving a feedback on my proposal. Success or rejection, I always ask for the feedback or what could've been better.
Friday, I got a long questionnaire from a founder asking for their product feedback. I wanted to help, but I couldn't understand the what, who, why, forget about how.
With some application of the principles in my own practice and looking at the practice of successful founders and leaders, here are few ways to create The Network Effect success for you or your business,
Clear Value Proposition: The best network effects start with a clear value proposition. Clear articulation of what problem are you solving and for whom starts the network effect. People who understand what you can do for them, will buy your service and/or tell others about it.
Growth Led Product/Services: Most of us are looking for growth. Personal or professional, what you or your product can do to make that happen? It does not have to be immediate, but clarity on growth trajectory amplifies the network effect.
Data: What you don't measure, you can't improve. What are key metrics for your business, your personal growth? Write them down, measure it, and track for the change.
Constant Adaptation: Successful individuals and businesses don't stop innovating because they made it. Markets change, demands change change, technology changes, be willing to make changes to your product or service as you go.
Design for growth, establish clear engagement with the community, leverage data, and innovate constantly, and you have created successful network effect.
Best reads from the internet
Smart learning is learning from the best around you. Curated shares from the smartest on the internet. Ideas that aligned or challenged my thinking. I hope you’ll enjoy them.
In the world of AI, how to trace a fake face?
A livelihood is not a life, yet many risk the latter to create former
Perspective: Chamath Palihapitiya on whether Crypto is dead or alive?
The smart ways to cope with the failures
Muse
Chaos is not dangerous until it begins to look orderly.
~ Max Gunther
Where do you see yourself fallible to the Ostrich effect?