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Never attribute to stupidity what is adequately explained by opportunity cost

erikbern.com

71–80 of 94 posts

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#71
In IP law, if I see terrible work product that cost my clients $5-$25K in waste, I try to be charitable and remind myself that sometimes there is context that I am not aware of that may have been the cause. Such context may be client driven immutable deadlines, client-side delays, client-side lack of communication, and so on.

In reality there probably was incompetence bordering on malpractice by the prior firm that did the work. But you never know.

If $100Ks (and multiple years) have been wasted, I know it is incompetence bordering on malpractice. Especially, if the firms that did the bad work have well known brands.

In professions like law, medicine, or professional engineering prioritizing is important and useful but providing shoddy work product or corner cutting should be unacceptable. And often corner cutting is malpractice.

In software development I used to push hard to get people to focus on getting from A to B efficiently while using an architecture that supports flexibility rather than over-engineering from the beginning. It seemed to work well.

Though I did run into some managers/directors/VPs that would carefully listen to a reasonable proposal and ignore it or in one case do the opposite. I always took that as the sign to move somewhere else. Eventually leading me to go law school.

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#72

Y'all missing the most important paragraph in the whole article: > I spent many years working in a satellite office. A lot of the time when I had some deep technical disagreement about something, I'd fly to the main HQ, and go out for dinner with the other team. I wouldn't even talk about technology, just about random stuff. Once they knew me, and realize I was a human (and not a faceless blob), most technical disagr…

Hmm, I think I've seen this happen to us by design.

I worked at a place that hired off shore (European) consultants for a part of our product and my colleagues would constantly complain about the quality of the consultants work and skillset.

I didn't complain[0]

Eventually corporate switched out the current body shop with equally bad off shore one from a different European country, but this time around they'd invite them to our HQ before hand for a week to to have lunch and spend time with before being sent back home to work remotely with us.

This time around no in my team said anything bad about the new group. These consultants weren't better than the previous ones at all, and ended up doing more damage eventually. Hell, some of the mistakes they did, the previous ones would do as well

Granted you could attribute it to "what's the point", but I suspect largely because of what you mentioned, face to face made them mellow... or from my PoV, weaker.

1: The reason I didn't complain is because they weren't any worse than my in house colleagues anyway and I found the irony funny and I was on my way out anyway.

No point in stepping into the fire unless I can control it.

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#74

Y'all missing the most important paragraph in the whole article: > I spent many years working in a satellite office. A lot of the time when I had some deep technical disagreement about something, I'd fly to the main HQ, and go out for dinner with the other team. I wouldn't even talk about technology, just about random stuff. Once they knew me, and realize I was a human (and not a faceless blob), most technical disagr…

I've always believed telecommuting needs the remote equivalent of the golf course. There are certain human elements that cannot be built over a Zoom call, but do not inherently require a physical presence. I have never started a company and I was hire #76 at my current place, but if I were to start something remote, I would find a game or hobby appreciated by all the founders and make sure that remained a bedrock of…

It kinda depends. You will create a strong bond in a subgroup, but anyone who doesn't fit in for any reason will feel excluded. It would be very tricky to find a hobby equally liked by all, but the in-group you create will not be overlooked by people only interested in political advancement.

As an example: At the previous company I worked, the CTO and another engineer really liked bouldering. They'd often go out after work to the local climbing gym. Eventually, two other engineers joined that group and went climbing too. Mysteriously, all three climbing engineers got promoted and none of the non-climbing engineers did. Eventually the CTO left for greener pastures and the "new" two engineers (by now team lead and VP) stopped climbing the week after.

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#75

Y'all missing the most important paragraph in the whole article: > I spent many years working in a satellite office. A lot of the time when I had some deep technical disagreement about something, I'd fly to the main HQ, and go out for dinner with the other team. I wouldn't even talk about technology, just about random stuff. Once they knew me, and realize I was a human (and not a faceless blob), most technical disagr…

This rings true in my experience. When I worked at a FAANG company that needed non-trivial collaboration between offices that were 3 time zones away, I would fly to the other office once every 2-3 months and just spend a week with the other team.

Part of it this was to develop a healthy rapport, to build mutual trust while working on large-scale projects.

But another aspect was productivity; both my team and the other teams had a lot on their plate, and it could be difficult to align incentives such that our shared projects would be completed in a reasonable amount of time. Flying out, finding a desk near the other team, making yourself visible/available, and working directly on the project would get more done in a week than would have happened in 2-3 months of remote collaboration.

Of course, it would be lovely if all companies could get work done remotely (yay Gitlab, Basecamp, etc. etc.), but most companies aren't set up for remote collaboration success, especially across management lines.

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#76

Earlier quoted context omitted.

Yes, but another way of looking at it is that if you prioritize A over B, it's because the opportunity cost of not doing A would be greater than the opportunity cost of not doing B. So "prioritization" is another way of saying "minimizing opportunity cost".

Sure, but talking about the opportunity cost of the thing you did pick feels backwards to me. Also, prioritization is not only minimizing cost, you’re probably also maximizing reward. So the calculation is more complicated anyways.

I didn't see where the article talks specifically about which thing has an opportunity cost. As far as I can tell, it just says opportunity cost is the relevant phenomenon and leaves it to the reader to figure out which things have a cost and how all the math works out on that.

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#77
post #68

Earlier quoted context omitted.

I've always believed telecommuting needs the remote equivalent of the golf course. There are certain human elements that cannot be built over a Zoom call, but do not inherently require a physical presence. I have never started a company and I was hire #76 at my current place, but if I were to start something remote, I would find a game or hobby appreciated by all the founders and make sure that remained a bedrock of…

I see the good intention behind all of these, but also feel there is the other side that is too often overlooked. Going on golf courses together, dining with the team etc. are the traditional recipes to create trust. But it's walking that fine line between personal and professional life, while also bridging the technical abilities parts and the personal chemistry parts. I understand we are all human and personal feel…

"But it's walking that fine line between personal and professional life, while also bridging the technical abilities parts and the personal chemistry parts."

This is called networking and I don't think it's going away anytime soon.

I'm a consultant and I get along very well with the director of engineering where I'm working now. When cuts happen, I won't be the first to go. The first to go will be the people that have no relationship with upper management.

Career advancement isn't all about the job that you do.

"Basically I'd hope we can prioritise other ways to create trust than building personal bonds (TBH, being good at one's job for a decent amount of time seems plenty enough to me)"

Being only good at one's job is a great way to keep your current job and position forever. If that's what you want, it's fine. However, if you want to get into management or advance, you need to get noticed and build relationships so your potential can also be noticed.

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#78
I agree, but only partly. Yes, prioritization is likely the explanation for a lot of things. It's absolutely true that the responsible team cannot do everything you'd wish.

But, sometimes there's stupidity at a different level. Just because someone is making an effort at prioritization doesn't mean they are doing a good job of prioritization.

It's hard to tell from the outside (where you lack the relevant knowledge), so you're kind of forced into giving them the benefit of the doubt. But sometimes that internal tools bug which they never get around to fixing is eating up 5 minutes of every employee's time every day for 2 years, and it adds up to a lot of wasted time, and they should have prioritized it but they didn't. Maybe because they didn't appreciate what the cost was, or maybe because they had some bias toward certain kinds of tasks, or maybe some other reason.

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#79

Y'all missing the most important paragraph in the whole article: > I spent many years working in a satellite office. A lot of the time when I had some deep technical disagreement about something, I'd fly to the main HQ, and go out for dinner with the other team. I wouldn't even talk about technology, just about random stuff. Once they knew me, and realize I was a human (and not a faceless blob), most technical disagr…

I've always believed telecommuting needs the remote equivalent of the golf course. There are certain human elements that cannot be built over a Zoom call, but do not inherently require a physical presence. I have never started a company and I was hire #76 at my current place, but if I were to start something remote, I would find a game or hobby appreciated by all the founders and make sure that remained a bedrock of…

I worked for a small, mostly-remote company that had regular DOTA breaks. The boss would be in a heated phone call, then stop mid-sentence and be like "shit, I have to leave for DOTA."

Re: Never attribute to stupidity what is adequately explained by opportunity cost

#80

I don't get the use of the terminology here. Opportunity cost is the cost associated by not reaping the benefits of an alternative not being picked. This is a cost from the perspective of the party making the choice. So in this story, 'opportunity cost' is not an explanation why something didn't happen. It is a side effect of something not happening. You could say the real opportunity cost in this story is the startu…

It is a little bit obscure, and saying "prioritization" would probably be clearer.

But it does actually work. When there are high-value things to do, then that is the opportunity cost of doing low-value things instead. ie, by doing the low-value thing you incur opportunity cost equal to high-value thing.

If we implement Feature Y, we can make $$$. If we fix Bug X, we can make $. So the opportunity cost of Bug X is $$$, the benefit of Bug X is only $, so we're not going to fix it right now.

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