The Big Bang Effect

This theory came up while I was reading the Corporate Finance section of CFA Level 1. What it basically says is that companies report large losses when a new management team takes over and report large profits once the management has been in place for one or two reporting periods.

I experienced this same effect recently. There was a software project where a new project manager took over. She came and started criticizing everything. She spent a lot more time proving that the system is bad than coming up with solutions or improvements. The effect is not complete as her team is yet to produce anything tangible where she can claim a win or a large profit.

Which makes me realize that true leaders are the ones that come in, see the problems, look for solutions and motivate the staff to implement those solutions. It's really easy to criticize when there are issues but much harder to motivate and solve those issues.

Surprise on London Undeground

I was pleasantly surprised the other day at my local underground station when the lady came on the intercom and said that "Apparently all trains are running smoothly". The 'apparently' caught my attention. There was a hint of office politics and being pushed by the boss to do something she didn't really want to do. It also gave a glimpse into how disconnected the station staff are from the running of the trains - the main business of a station. From a regular commuter's point of view, it does not inspire confidence, and highlights the inefficiences. I further cast doubt on the 'investment in the undergound' posters that I see plotted around the stations. A depressing truth of monopolies.

Talking to people

One thing I've observed is that people will listen to you and digest what you are saying when they REALLY want to. Sounds like an obvious thing to say but is a powerful thing to know when conversing. If I am talking to this person and if I judget that he or she is REALLY not interested in understanding what I am saying then it's best to curtail the conversation and move on, it saves a lot of time and more importantly energy.

Humans are emotional beings, and emotion is irrational. It is the source of people not wanting to REALLY listen and understand what others are saying. Dysfunctional and inefficient. Best to keep clear of these situations, to save both energy and time.