Simple as Possible, but Not Simpler
Simplifying adds value to our work. It removes complexity that gets in the way of understanding.
Removing complexity is not easy. Even the best writers, scientists, artists, and professionals struggle to make their work simpler without diminishing it.
Why do they struggle? Because being understood has value.
Simplifying adds value to our work. It removes complexity that gets in the way of understanding.
Removing complexity is not easy. Even the best writers, scientists, artists, and professionals struggle to make their work simpler without diminishing it.
Why do they struggle? Because being understood has value.
Mental Rehearsing
When we think about the future, we are often rehearsing what we will think, do, and feel without being aware that we are rehearsing. This is a problem.
As with physical rehearsing, when we mentally start to rehearse what we will do in the future, the way we rehearse matters. Ideally, we would think about how we want to mentally rehearse and for how long. Like physical practice, mental practice improves with structure.
And there are tools we can use. Intention matters, but so does environment, boundaries, and techniques.
The next time you are thinking about your actions in the future, try to rehearse them as you would a physical rehearsal instead of leaving them to fate.
When we think about the future, we are often rehearsing what we will think, do, and feel without being aware that we are rehearsing. This is a problem.
As with physical rehearsing, when we mentally start to rehearse what we will do in the future, the way we rehearse matters. Ideally, we would think about how we want to mentally rehearse and for how long. Like physical practice, mental practice improves with structure.
And there are tools we can use. Intention matters, but so does environment, boundaries, and techniques.
The next time you are thinking about your actions in the future, try to rehearse them as you would a physical rehearsal instead of leaving them to fate.
Emergence
Knowledge is rarely gained by incremental steps. Einstein did not arrive at the Theory of Relativity by improving an existing explanation. Instead, his curiosity and imagination led him to a completely new way of explaining space and time.
New discoveries are often completely different ways of explaining things since they uncover information that was previously hidden. This uncovering of previously hidden explanations is called emergence.
When we try to solve a problem, we often rely on our experience and perhaps the experience of others around us. However, like Einstein, we should not discount our creative ability to imagine solutions as well.
Fundamental knowledge is rarely gained by incremental steps. Einstein did not arrive at the Theory of Relativity by improving an existing explanation. Instead, his curiosity and imagination led him to a completely new way of explaining space and time.
New discoveries are often completely different ways of explaining things since they uncover information that was previously hidden. This uncovering of previously hidden explanations is called emergence.
When we try to solve a problem, we often rely on our experience and perhaps the experience of others around us. However, like Einstein, we should not discount our creative ability to imagine solutions as well.
Unintended Consequences
You have probably heard only one side of the story regarding unintended consequences, or events we did not intend by our actions. Many times we are told that the unintended consequences we experience in life, those we obviously did not try to achieve, are usually negative. However, this is incorrect and maybe the result of a negative bias rather than what we actually experience.
We are just as likely to receive positive unintended consequences than negative ones. When we make the right choices in a moment, we often increase the odds of positive unintended consequences down the road. When we make the wrong choices, the opposite.
In commercial real estate there are often choices that paralyze our thinking because of the unknown. As leaders, we can focus on the negative unintended consequences of each decision and lose progress. However, since unintended consequences are neutral, and we can increase the odds of positive ones by making the right choices, our focus should be making the right choice in the moment.
You have probably heard only one side of the story regarding unintended consequences, or events we did not intend by our actions. Many times we are told that the unintended consequences we experience in life, those we obviously did not try to achieve, are usually negative. However, this is incorrect and maybe the result of a negative bias rather than what we actually experience.
We are just as likely to receive positive unintended consequences than negative ones. When we make the right choices in a moment, we often increase the odds of positive unintended consequences down the road. When we make the wrong choices, the opposite.
In commercial real estate there are often choices that paralyze our thinking because of the unknown. As leaders, we can focus on the negative unintended consequences of each decision and lose progress. However, since unintended consequences are neutral, and we can increase the odds of positive ones by making the right choices, our focus should be making the right choice in the moment.
Russell Conjugation
When we choose different words to describe the same thing, depending on how favorable we want to be to it, that is a Russell Conjugation.
Rather than clarify, Russell or Emotive Conjugations add bias and typically are intended to influence the way you think about something. They not only provide a fact, but the writer or speakers opinion of the fact.
Consider the following example, all describing a businesswoman:
She is motivated, she is driven, she is ruthless
She is detail oriented, she won’t miss anything, she is OCD
She is independent, she is eccentric, she is an isolationist
She reconsidered, she changed her mind, she can’t make up her mind
In business, we should to pay attention to how someone is describing something. It make us aware of efforts to influence us, and tell us what the speaker or writer may think of the thing they are describing.
When we choose different words to describe the same thing, depending on how favorable we want to be to it, that is a Russell Conjugation.
Rather than clarify, Russell or Emotive Conjugations add bias and typically are intended to influence the way you think about something. They not only provide a fact, but the writer or speakers opinion of the fact. Consider the following example, all describing a businesswoman:
She is motivated, she is driven, she is ruthless
She is detail oriented, she won’t miss anything, she is OCD
She is independent, she is eccentric, she is an isolationist
She reconsidered, she changed her mind, she can’t make up her mind
In business, we should to pay attention to how someone is describing something. It make us aware of efforts to influence us, and tell us what the speaker or writer may think of the thing they are describing.
Legibility
David Perrell’s outstanding “Mega Thread” on Twitter includes a concept called legibility. David writes,
Legibility We are blind to what we cannot measure. Not everything that counts can be measured, and not everything that can be measured counts. But people manage what they can measure, so society repeats the same mistakes.
People and organizations tend to have a blind spot when it comes to the immeasurable. Furthermore, they have a bias towards managing only the measurable.
In corporate and industrial real estate, we tend to measure a lot of things and like to manage them. However, when we talk about our people and places contributing to the purpose or mission of the organization, we should not forget the immeasurable qualities about them.
Data and managing measurable information undoubtedly can contribute to your personal and organizational success. But making sure you look beyond the measurable aspects of what you do, and how you do it, is the only way to see the entire pathway towards your purpose and mission.
David Perrell’s outstanding “Mega Thread” on Twitter includes a concept called legibility. David writes,
Legibility We are blind to what we cannot measure. Not everything that counts can be measured, and not everything that can be measured counts. But people manage what they can measure, so society repeats the same mistakes.
People and organizations tend to have a blind spot when it comes to the immeasurable. Furthermore, they have a bias towards managing only the measurable.
In corporate and industrial real estate, we tend to measure a lot of things and like to manage them. However, when we talk about our people and places contributing to the purpose or mission of the organization, we should not forget the immeasurable qualities about them.
Data and managing measurable information undoubtedly can contribute to your personal and organizational success. But making sure you look beyond the measurable aspects of what you do, and how you do it, is the only way to see the entire pathway towards your purpose and mission.
What Does the Lease Say?
One reason we rely on abbreviations, acronyms, and memes is to help us conserve the resources necessary to understand and communicate things. Think about how much time was saved abbreviating Internal Revenue Service, knowing SWAT meant a more militarized police unit, or how certain internet memes conveyed a common idea.
However, we need to be careful about trusting them to tell the whole story. Unsurprisingly, the more complex the underlying thing being represented, the less things representing them are able to serve as adequate descriptions.
Such is the case with commercial real estate leases. When a lease is called a net, gross, modified, percentage, ground, absolute, or triple net lease, these adjectives are very limited descriptions of the actual agreement. Even though they may help us understand a small percentage of the lease agreement, they are often unreliable even in that regard.
One reason we rely on abbreviations, acronyms, and memes is to help us conserve the resources necessary to understand and communicate things. Think about how much time was saved abbreviating Internal Revenue Service, knowing SWAT meant a more militarized police unit, or how certain internet memes conveyed a common idea.
However, we need to be careful about trusting them to tell the whole story. Unsurprisingly, the more complex the underlying thing being represented, the less things representing them are able to serve as adequate descriptions.
Such is the case with commercial real estate leases. When a lease is called a net, gross, modified, percentage, ground, absolute, or triple net lease, these adjectives are very limited descriptions of the actual agreement. Even though they may help us understand a small percentage of the lease agreement, they are often unreliable even in that regard.
Let Failure Motivate You
We should all learn from failure. Every self-help guru is stressing this constantly.
If you look at people at the top of their industries, they likely have learned from a lot of failure to find success. They have also likely used failure to fuel greater performance.
This is often the case in sports. Athletes can learn from mistakes in games, but what is equally as valuable is channeling the emotions from a loss into productive action. It is no accident the greatest players are often the most competitive.
The next time you experience failure or defeat, don’t miss the opportunity to use it as motivation towards success.
We should all learn from failure. Every self-help guru is stressing this constantly.
If you look at people at the top of their industries, they likely have learned from a lot of failure to find success. They have also likely used failure to fuel greater performance.
This is often the case in sports. Athletes can learn from mistakes in games, but what is equally as valuable is channeling the emotions from a loss into productive action. It is no accident the greatest players are often the most competitive.
The next time you experience failure or defeat, don’t miss the opportunity to use it as motivation towards success.
Have a No A**hole Rule
Often we are tempted to work or associate with people who are a**holes because we think they can make up for it in other ways. Don’t do it.
There is nothing that says you or your company needs the additional burden of a jerk poisoning your culture and vibe. Hope that they can change and wish them well, but don’t let them in.
Remember, it’s easy to underestimate the damage someone can do to everyone else and overestimate the value they can individually provide.
Often we are tempted to work or associate with people who are a**holes because we think they can make up for it in other ways. Don’t do it.
There is nothing that says you or your company needs the additional burden of a jerk poisoning your culture and vibe. Hope that they can change and wish them well, but don’t let them in.
Remember, it’s easy to underestimate the damage someone can do to everyone else and overestimate the value they can individually provide.
How’s That Been Working for You?
One of the best questions I have been asked recently was, “how has that been working for you?”.
The reason it is such a good question is the answer is so important to our wellbeing as individuals, organizations, and citizens. Positive things work well for us, they enrich our lives, help our companies achieve its goals, and help us thrive as a society. Too often we let negative things drag us down, sometimes because it is hard to change course. Sometimes because we are unaware of how negative they are.
Give it a try. To create awareness of what is helping or hurting yourself and others, start asking “how has that been working for you?” more often.
One of the best questions I have been asked recently was, “how has that been working for you?”.
The reason it is such a good question is the answer is so important to our wellbeing as individuals, organizations, and citizens. Positive things work well for us, they enrich our lives, help our companies achieve its goals, and help us thrive as a society. Too often we let negative things drag us down, sometimes because it is hard to change course. Sometimes because we are unaware of how negative they are.
Give it a try. To create awareness of what is helping or hurting yourself and others, start asking “how has that been working for you?” more often.
Be Prepared for a “Crisis” Today
You probably will face some sort of unforeseen challenge today. A lease negotiation is failing. The plumbing isn’t working at a manufacturing plant. An executive is wondering why the company is paying so much on real estate.
It’s cliché to say “prepare for the worst, hope for the best”. But, honestly, are you able to handle whatever life throws at you today as a leader, with a clear head, without letting emotions get the best of you? Do you have the “tools” to do so?
Great leaders detach their egos from the situation and evaluate it rationally. You cannot prevent every crisis, but you can prepare for every crisis.
You probably will face some sort of unforeseen challenge today. A lease negotiation is failing. The plumbing isn’t working at a manufacturing plant. An executive is wondering why the company is paying so much on real estate.
It’s cliché to say “prepare for the worst, hope for the best”. But, honestly, are you able to handle whatever life throws at you today as a leader, with a clear head, without letting emotions get the best of you? Do you have the “tools” to do so?
Great leaders detach their egos from the situation and evaluate it rationally. You cannot prevent every crisis, but you can prepare for every crisis.
Goodhart and Campbell’s Laws
You have probably seen the following scenario if you have worked in a corporate or research environment. A KPI or return was used as the objective within the organization and members of the organization “manipulated” their data or actions to reach the desired KPI or return.
This is an example of Goodhart’s Law, which is when a measurement becomes a goal, it no longer is a measurement.
Whenever a company uses a metric, such as rent to revenue or negotiated savings, they should be careful not to use the metric as the objective because it can corrupt the measurement. Negotiated savings is a way to measure how well a real estate department is negotiating in favorable markets. Once it becomes the objective, it can encourage actions, such as avoiding unfavorable markets or inflating the market prices, which can lead to bad outcomes.
In addition, the more such metrics are used, the more likely they are to corrupt the process they are used to measure. This is Campbell’s Law.
If a company only uses rent to revenue to evaluate its real estate decisions, there is an incentive for operators to start being more aggressive with their revenue projections in order to acquire expensive properties. This can lead to a result where the metric was acceptable, but what it was trying to measure, namely affordability of an acquisition, is unacceptable.
You have probably seen the following scenario if you have worked in a corporate or research environment. A KPI or return was used as the objective within the organization and members of the organization “manipulated” their data or actions to reach the desired KPI or return.
This is an example of Goodhart’s Law, which is when a measurement becomes a goal, it no longer is a measurement.
Whenever a company uses a metric, such as rent to revenue or negotiated savings, they should be careful not to use the metric as the objective because it can corrupt the measurement. Negotiated savings is a way to measure how well a real estate department is negotiating in favorable markets. Once it becomes the objective, it can encourage actions, such as avoiding unfavorable markets or inflating the market prices, which can lead to bad outcomes.
In addition, the more such metrics are used, the more likely they are to corrupt the process they are used to measure. This is Campbell’s Law.
If a company only uses rent to revenue to evaluate its real estate decisions, there is an incentive for operators to start being more aggressive with their revenue projections in order to acquire expensive properties. This can lead to a result where the metric was acceptable, but what it was trying to measure, namely affordability of an acquisition, is unacceptable.
Agility
Being able to move and understand quickly is agility.
Historically agility in a supply chain has been a difficult objective to achieve. During the COVID-19 pandemic, the inability of many supply chains to react quickly was painfully exposed. That is changing.
We are seeing rapid implementation of technologies which allow companies to evaluate and execute faster than ever before. Artificial intelligence, robotics in material handling, microfulfillment, flexible lease terms, on-demand warehouses, and other disruptive innovations are all focused on creating more agility.
As these innovations improve and increase, what are the 2nd and 3rd order effects? What do these innovations require in order to spread? These are the questions I am asking myself about a more agile world.
Being able to move and understand quickly is agility.
Historically agility in a supply chain has been a difficult objective to achieve. During the COVID-19 pandemic, the inability of many supply chains to react quickly was painfully exposed. That is changing.
We are seeing rapid implementation of technologies which allow companies to evaluate and execute faster than ever before. Artificial intelligence, robotics in material handling, microfulfillment, flexible lease terms, on-demand warehouses, and other disruptive innovations are all focused on creating more agility.
As these innovations improve and increase, what are the 2nd and 3rd order effects? What do these innovations require in order to spread? These are the questions I am asking myself about a more agile world.
Opportunity Costs
Life would be easier if we could make correct decisions with a bias. Unfortunately, being inclined to approve or decline choices can lead to wasting resources and missing opportunities.
In corporate real estate, these biases are often the result of a larger or more reliable data set on one side of the decision ledger.
For companies evaluating whether to acquire a space for their business, there is usually more reliable information on the costs of the decision than the benefits. This can lead to a bias towards inaction or reducing costs, especially when the benefits are uncertain.
Therefore, making the right decision often requires greater awareness regarding the benefits of the choice. Understanding the opportunity cost of not acquiring a space can be just as important as the costs to acquire it.
Life would be easier if we could make correct decisions with a bias. Unfortunately, being inclined to approve or decline choices can lead to wasting resources and missing opportunities.
In corporate real estate, these biases are often the result of a larger or more reliable data set on one side of the decision ledger.
For companies evaluating whether to acquire a space for their business, there is usually more reliable information on the costs of the decision than the benefits. This can lead to a bias towards inaction or reducing costs, especially when the benefits are uncertain.
Therefore, making the right decision often requires greater awareness regarding the benefits of the choice. Understanding the opportunity cost of not acquiring a space can be just as important as the costs to acquire it.
Dead Right
A broker gets into a heated argument with their client. The broker is certain they are right. In fact, the broker was right and they no longer have the client.
The saying, “Dead Right”, has many meanings but the one I like the most describes the scenario above. When we conflict with others, we should be aware of the costs involved.
Winning an argument may feel good in the moment, but what has the argument done to the relationship with the other person? Sometimes the answer doesn’t matter. Sometimes it is a matter of life and death.
A broker gets into a heated argument with their client. The broker is certain they are right. In fact, the broker was right and they no longer have the client.
The saying, “Dead Right”, has many meanings but the one I like the most describes the scenario above. When we conflict with others, we should be aware of the costs involved.
Winning an argument may feel good in the moment, but what has the argument done to the relationship with the other person? Sometimes the answer doesn’t matter. Sometimes it is a matter of life and death.
Momentum
We need momentum to accomplish what we want in life. For every objective, there are usually events, people, and circumstances that get in the way.
Momentum is needed because the forces obstructing our goals are immense and numerous. A standing start does not have good odds.
In any business project, leaders need to be able to create and sustain momentum. Time is often the enemy, but so is your willingness to succumb to inertia.
Move forward.
We need momentum to accomplish what we want in life. For every objective, there are usually events, people, and circumstances that get in the way.
Momentum is needed because the forces obstructing our goals are immense and numerous. A standing start does not have good odds.
In any business project, leaders need to be able to create and sustain momentum. Time is often the enemy, but so is your willingness to succumb to inertia.
Move forward.
Know thy Scheduling Self
One of my best productivity improvements has been scheduling my most important actions during the period of time I typically feel the most mentally alert (Mid-Late PM).
If you haven’t tried it before and are able, try to schedule your most important actions (calls, tasks, thinking, etc.) when you usually feel the best and see if it works for you.
One of my best productivity improvements has been scheduling my most important actions during the period of time I typically feel the most mentally alert (Mid-Late PM). If you haven’t tried it before and are able, try to schedule your most important actions (calls, tasks, thinking, etc.) when you usually feel the best and see if it works for you.
Anything is Possible within the Laws of Physics
Sometimes it is better to not filter a set of options at the beginning. Via negativa is valuable, but consider what may be missing if you remove options.
This is especially true when there are limited options available. Start with removing options you are 100% sure won’t fit the “laws” of your project, then wait until the right time to remove others.
Sometimes it is better to not filter a set of options at the beginning. Via negativa is valuable, but consider what may be missing if you remove options.
This is especially true when there are limited options available. Start with removing options you are 100% sure won’t fit the “laws” of your project, then wait until the right time to remove others.
The Map is Not the Territory
Much of what we do in commercial real estate is create things that represent other things. We do this because it makes it easier for us to consume. A letter of intent makes it easier to create the lease or purchase agreement. The brochure to describe the building. The video to show the project. And on and on.
What we should keep in mind is these representations are not the actual things. Without the actual things, they would not exist. However, they allow us to tell the story of those things in a way we choose. We can pick what provisions to include, what features to highlight, what aerials to include.
In some ways these representations are as important to progress as the actual thing they represent. They make it accessible, consumable, relatable, understandable.
This post is 100% inspired by Seth Godin’s post yesterday of the same title. His daily blog is one of the crown jewels of the internet. If you haven’t checked it out, you are missing out.
Much of what we do in commercial real estate is create things that represent other things. We do this because it makes it easier for us to consume. A letter of intent makes it easier to create the lease or purchase agreement. The brochure to describe the building. The video to show the project. And on and on.
What we should keep in mind is these representations are not the actual things. Without the actual things, they would not exist. However, they allow us to tell the story of those things in a way we choose. We can pick what provisions to include, what features to highlight, what aerials to include.
In some ways these representations are as important to progress as the actual thing they represent. They make it accessible, consumable, relatable, understandable.
This post is 100% inspired by Seth Godin’s post yesterday of the same title. His daily blog is one of the crown jewels of the internet. If you haven’t checked it out, you are missing out.