Roryisms register

Back to the curated register (468 ideas, one each, with mechanisms and use-it prompts). This page is the concordance: every telling, including one-offs.

2255 stories, examples, quips, analogies and principles from 127 Rory Sutherland talks, podcasts and interviews (2009–2026) plus the Alchemy preview, merged from 3781 extracted tellings.

Told in N is the number of separate videos a story appears in: a high count marks a canonical Roryism. Retellings are condensed and corrected from YouTube auto-captions, and quotes are lightly corrected, so check the source before quoting him publicly. Built 2026-10-14.

Most told

#StoryTypeThemeTold in
1The Uber mapexampleWaiting, time and travel32
2Give the HS2 brief to Disney, not engineersexampleWaiting, time and travel23
3The bees that ignore the waggle danceanalogyEvolution and nature21
4The opposite of a good idea can be another good ideaprincipleCreativity and ideas19
5Red Bull, tiny can, costs a fortune, tastes disgustingexampleSignalling and trust18
6Supermodels serving Château Pétrus on the EurostarstoryWaiting, time and travel18
7Von Mises, the cook and the man who sweeps the flooranalogyPerception, context and framing16
8Test counterintuitive things, because nobody else willprincipleCreativity and ideas15
9The average is the enemy of the marketerprincipleAgainst narrow logic and economics15
10The Overground, infrastructure made of ink and pixelsexamplePerception, context and framing15
11Family firms won four of five IPA effectiveness goldsexampleBusiness, organisations and innovation14
12Tube dot-matrix boards beat faster trainsexampleWaiting, time and travel14
13Wedding vows in public and an engagement ring that hurtsanalogySignalling and trust14
14Reverse benchmarking, Eleven Madison Park's coffee and beer sommeliersstoryBusiness, organisations and innovation13
15The pilot who made the bus good newsstoryPerception, context and framing13
16American Express 'Member since'exampleSignalling and trust12
17McDonald's is very good at not being terribleexampleRisk, satisficing and choice11
18Nespresso, the machine is practically making me moneyexamplePricing and value11
19The DoubleTree warm cookieexampleAdvertising, brands and marketing11
20The paceometer, minutes per ten milesexampleWaiting, time and travel11
21Avis, we're number two, so we try harderexampleAdvertising, brands and marketing10
22Dare to be trivialprincipleBusiness, organisations and innovation10
23Hire in groups and diversity takes care of itselfprincipleBusiness, organisations and innovation10
24Range anxiety, increase range, or reduce anxietyexamplePerception, context and framing10
25The doorman fallacyprincipleBusiness, organisations and innovation10
26Assume perfect information and trust, and marketing need not existprincipleAgainst narrow logic and economics8
27Did anyone notice anything unusual? The investigative phaseprincipleCreativity and ideas8
28Ed Sheeran in a two-dollar peep showexampleSignalling and trust8
29Marketing and innovation are two sides of one coinprincipleBusiness, organisations and innovation8
30Rational people have the veto; creative people only suggestprincipleBusiness, organisations and innovation8

Browse

Creativity and ideas 180

The opposite of a good idea can be another good idea

principletold in 19

Rory's most quoted line is, he confesses, really Niels Bohr's, said to Einstein: in simple physics the opposite of a good idea is wrong, but in high-complexity physics, and in psychology, it can be another good idea. Every algorithm assumes faster is better, yet there are two great ways to check into a hotel: fully automated, unlocking your room with your phone, or someone taking you up and making you tea. Guinness turned a pour so slow that bar staff hated it into 'good things come to those who wait'. Retail trends towards self-service and low prices; the farmers' market does the opposite, a Tesco Metro made much worse and dearer, and people love it. So look at your biggest competitor and do the opposite.

“In the real world, the opposite of a good idea can be another good idea.”

The point: Human value is not monotonic, so optimising in one direction freezes out equally valid opposite solutions, and the middle often loses to both extremes.

Variants: Examples rotate across 19 tellings: Dyson versus Henry, no-touch versus high-touch hotels, a hamper turning a slow Waterloo train into a day out, bargain and luxury both winning while the middle suffers. Sex, he notes, is never improved by being high-speed.

Sources (19)

Test counterintuitive things, because nobody else will

principletold in 15

In business it is dangerous to be slightly bonkers: try something odd that fails and your job is on the line; try something rational that fails and you get another go. That bias means you gain an extraordinary advantage by creating a small space to test things that do not make sense. Competitors are too scared, or culturally incapable, of copying, so the advantage lasts. Just as bees let some of the colony fly at random, ignoring the waggle dance, organisations should permit experiments outside the rationalists' comfort zone. A performance marketer found that people who tested eight things were disproportionately more successful than those who tested four: with eight, you make room for a couple of silly ones, a green aardvark, not just price.

“Be weirder.”

The point: Deliberately testing illogical ideas is where outsized breakthroughs come from, because rivals filter them out and breakthroughs are disproportionate precisely because they are illogical.

Variants: In a 70/20/10 budget, aim for a high failure rate in the experimental 10 per cent or you are not being brave enough. Another telling adds that behavioural science sometimes works even when wrong, simply by licensing tests a rational person would never run, as with Fleming's accidental penicillin.

Sources (15)

Did anyone notice anything unusual? The investigative phase

principletold in 8

Find a body and police go door to door asking an open question: did you notice anything unusual last night? Someone says a white van drove past three times. That has no evidential value; you cannot jail someone for driving a van oddly. But it tells you where to look next: check the CCTV, and if the driver turns out to be a known weirdo, reweight your probabilities. Police work in two phases, investigative then evidential, because they deal with imperfect information and witnesses who lie. In their approach to information, Rory says, cops are cleverer than lawyers, and would have handled Covid better than scientists. Business, aping economics and physics, has skipped the first phase and demands evidence before allowing any speculation.

“It has no evidential value, but what it does tell you is what to investigate next.”

The point: Separate a speculative search phase, where weak signals and anecdotes direct attention, from a proof phase; demanding evidence too early blinds the search.

Variants: The van passes three, four or six times. Some tellings add that police act to create evidence (a stakeout, a honey trap: 'do to know rather than know to do'), and that science, like a trial, later writes up messy discoveries as if planned, as Peter Medawar complained.

Sources (8)

Dishwasher Darwinism, persistent problems are logic-proof

analogytold in 6

Rory hates owning anything that isn't dishwasher-proof, so he proposed a solution to his wife: treat everything in the kitchen as if it were. After a couple of years, whatever has survived is by definition dishwasher-proof. Kitchen-utensil Darwinism. The same filter has been applied to the world's problems. There is no shortage of rational people, McKinsey, finance departments, procurement, all trying to look logical to each other, so the problems logic can solve have been solved. The ones that persist are probably logic-proof: most political, business and, he suspects, marital problems. If there were a logical answer, we would have found it. So for an enduring problem, try something else: intuition, conjecture, randomness, comedy or luck. Logic has its place; he does not want a conceptual artist running air-traffic control.

“If there were a logical answer, we would already have found it.”

The point: Problems that have survived years of rational attack are filtered for logic-proofness, so they are exactly where non-logical approaches are most worth trying.

Variants: The survival period ranges from three months to two years. In one telling he uses it to defend unconventional political moves (the rational people had 20 years and failed); in another it is his eleventh rule of ten.

Sources (6)

Flat White or F*** Off

storytold in 5

Starbucks is great if you have 45 minutes, but wrong at a station, where you want to grab a coffee and catch the 6.47 without queuing behind someone ordering an elaborate iced drink with whipped cream. So Rory's coffee chain sells one thing: flat whites, made in advance, with oat milk the one concession. Tap your card, pay a fixed price, pick one up and go. It is the Henry Ford of coffee. Ask for a cappuccino and the staff point to the logo: the answer is in the name. Others have borrowed the idea, and after some publicity conference organisers called. Everyone pours out of the plenary at once wanting a coffee and gets bad filter coffee or a huge queue. A market the inventors never imagined.

“If you ask for anything other than the flat white, the answer is in the name.”

The point: When a whole market chases customisation, a radically restricted offer can serve an overlooked need if the trade-off is made explicit, and fame then brings uses you never envisaged.

Variants: One telling casts it as Rory's retirement plan for railway stations; another stresses that others spotted the conference market after publicity, an Adam Smith division-of-attention point.

Sources (5)

Monotheorism, an elephant, a monkey and Jesus on the altar

storytold in 5

A Hindu friend of Rory's (Jag Bhalla, in one telling) accuses Westerners of 'monotheorism': just as we insist on one God, we insist on one theory to explain everything, or one metric to decide everything. His mother goes to a temple in India whose altar holds an elephant, a monkey and Jesus, and she sees no contradiction at all; they are parts of the same thing. The Western mind treats anything with two modes of behaviour as a trade-off or a conflict, and has built a faux rationalism in which there must be one right way. Rory's view is that complex systems need several partial theories held at once, and that a great business must cope with pluralism: doing what it knows works while also exploring the unknown.

“The trouble with you Westerners is you have to have one theory to explain everything, or one metric to decide everything.”

The point: Insisting on a single theory or optimand turns complementary approaches into false trade-offs; holding several partial models at once is often wiser.

Variants: Applied in turn to economics (Rory prefers its fringes, Georgism and the Austrian school), to marketing (The Long and the Short of It is both, not either), and to business pluralism, with Buffett's 'if the phone don't ring, you'll know it's me'.

Sources (5)

A beige computer turned any room into an office

exampletold in 4

In the 1980s and early 90s the PC industry's nerds competed on processing power, RAM and clock speed, and neglected how computers looked or felt to use. Put a beige or grey IBM-compatible in any room of your house and it became an office: you might as well add a photocopier, a filing cabinet and a wall planner. Then Jony Ive and Steve Jobs produced the iMac, a computer you wanted to lick, an adornment to any room. It even had a handle; you weren't really meant to carry it, but it made it feel like something you could comfortably touch. Apple matched acceptable performance while changing the question to how it feels to use. Such emotional factors rarely appear in research, yet they are strong drivers or brakes.

“If you put a grey IBM PC in any room in your house, you might as well put a photocopier and a filing cabinet in the room.”

The point: When an industry competes on measurable specs, shifting the dimension of competition to feel and context can beat incumbents.

Variants: Rory frames Jobs as a reverse benchmarker, and one telling adds the iPhone's little bounce at the end of a scroll: trivial per use, enormous across a billion users a hundred times a day.

Sources (4)

Advertising is a great way to monetise ADHD

quiptold in 4

Rory often says he works in advertising because it is one of the very few ways to monetise ADHD. In logistics, sitting in a Paris café or watching a beagle on a train doesn't make you better at your job; in marketing it does. He has no sense of proportion and fixates on the most trivial element of any discussion, which means 90 per cent of the time he is a pain in the arse, but sometimes he is unusually right. He likes that advertising has let him stay himself rather than bury his quirks, and worries that by medicalising ADHD we may be treating creativity as a disorder, though an air traffic controller might be better faintly medicated.

“I work in advertising because it's a great way to monetise ADHD.”

The point: Some fields reward the wandering, disproportionate attention that others penalise, so cognitive diversity is an asset to be placed well rather than suppressed.

Variants: One telling adds an academic's finding that groups including non-neurotypical people make better collective decisions; another links it to 'Jack of all trades, master of none, is oftentimes better than master of one'.

Sources (4)

Brazilian jiu-jitsu, the martial art for when you're on the ground

exampletold in 4

A colleague gave Rory a perfect example of reverse benchmarking. The founder of Brazilian jiu-jitsu wanted to invent a new martial art, which is hard after a thousand years or more of refinement in the East. Then he noticed that every existing martial art teaches you to fight standing up; once you were on the ground you had basically lost, so nobody had thought about it. Fighting lying down was terra incognita. That, Rory jokes, is the more valuable skill in a British pub car park scrap while someone shouts 'Leave him, John, he's not worth it'. The founder established it by challenging other martial artists, who enjoyed a brief advantage until they were knocked over.

“No one's produced a martial art for how you fight when you're on the ground.”

The point: Unexplored space often lies in the situation everyone else treats as already lost or unquantified, not in the dimension they have all optimised.

Variants: He pairs it with Apple asking why computers had to be ugly and hard to use while rivals competed on specs, and with Uber, where everyone focused on the taxi and the magic was the map.

Sources (4)

Innervation, the psychological half-sister of innovation

principletold in 4

Rory titles talks 'Innervation', and insists it is not a typo: invention that relies on understanding the brain rather than the laws of physics, caring less about the properties of silicon and more about the properties of neurons. There are two ways to create economic value: find out what people want and a clever way to supply it, or work out what you can supply and a clever way to make people want it. Economically they are equally valuable, yet we spend 90 per cent of our effort on the first. A technical innovation can be copied in months, but a psychological one endures, because we act on feelings, not data. So the next revolution may not be technological at all; it could be psychological.

“The next revolution may not be technological at all; it could be psychological.”

The point: Changing how people perceive and value something creates as much wealth as changing the thing itself, costs less, lasts longer and is far less explored.

Variants: One telling grounds it in the Austrian School's refusal to separate objective from subjective value; another notes agencies were paid by media commission, so problems needing no bought media never reached them.

Sources (4)

Psychological moonshots, make it feel ten times better

principletold in 4

Alphabet's X, run by Astro Teller, hunts moonshots: making something ten times faster, cheaper or safer, because 3 or 5 per cent improvements rarely change behaviour. Rory agrees with the 10x aim, but Google are engineers, not psychologists, and in the physical world tenfold gains keep hitting the laws of physics and diminishing returns. Making a plane ten times faster than a 787, or a train ten times faster, is very hard. Making a train journey ten times more enjoyable is weirdly easier, and quicker, cheaper and lower-risk, because you tinker with perception rather than reality. Because psychology is messy, magic is possible. So most R&D for 10x projects should hunt for things that feel ten times different rather than are ten times different.

“Maybe you can't make something ten times faster, but you can make it ten times more enjoyable.”

The point: When physical improvement hits diminishing returns, order-of-magnitude gains are still available in subjective experience, and they are cheaper to find.

Variants: One telling notes that a ten-times cooler hotel costs a fraction of a ten-times faster plane, and that a ten-times more enjoyable train journey may be worth more than one 90 per cent shorter.

Sources (4)

Rehabilitate the anecdote

principletold in 4

Asked whether behavioural economics is just anecdotes about quirks, Rory defends the word. Most really significant information emerges first in anecdotal form, not in data: someone notices something strange and decides to find out what it means. Nearly all discoveries, penicillin, Viagra, gravity, Darwin, start that way, and serial killers get caught because of an anecdote. Tell an entrepreneur a weird thing happened and they hear a cash register; tell a bureaucrat and he doesn't want to know, because it messes with his model of the world. Insights come from the edges, not the aggregates, and big data is a rear-view mirror. He would rehabilitate 'opportunistic' too: small businesses work intuitively, while large ones must pretend to be rational to justify themselves.

“Insights come from the edges, not from the aggregates.”

The point: Anomalies and anecdotes are the early signal of truths that aggregated data has not yet caught, so dismissing them means missing discoveries.

Variants: One telling cites Jeff Bezos: when the anecdote disagrees with the data, it is usually the anecdote that is true.

Sources (4)

Aesop and Jesus were behavioural scientists

quiptold in 3

One of Rory's formative influences was a childhood book of Aesop's fables. Aesop, probably a slave living before Plato, was in a sense the first behavioural scientist: sour grapes and the dog in the manger are psychological quirks. Jesus was a pretty good one too. The parable of the lost sheep is basically loss aversion, and the parable of the vineyard is about perceived equity, arguably proportionality bias. There is a book arguing Jane Austen was a game theorist; his third book, he jokes, will be 'Jesus Was a Behavioural Economist'. The tragedy is that this knowledge was lost. Described by Aesop, Plato and Jesus, and explained by Darwin, it could found a new science with more promise than much heavily funded technology.

“The parable of the lost sheep is basically loss aversion.”

The point: Ancient stories encode behavioural insights that science only later named, so old wisdom is an underexploited source of ideas.

Variants: One telling adds the parable of the sower as systems thinking.

Sources (3)

Churchill and the stolen salt cellar

storytold in 3

At a Buckingham Palace banquet in the early 1950s, with Churchill back as prime minister and the young Queen on the throne, a footman reported that a distinguished guest had pocketed a solid gold George III salt cellar. Two bad options: accept the loss, or accuse her and cause a diplomatic incident. Churchill said leave it to him. He slipped the matching pepper pot into his own breast pocket, waited until after dinner, sidled up to the guest by a window, showed it to her and said: I think we've both been spotted, we'd better put these back. Both items were returned. By posing as a fellow offender rather than an accuser, he turned a confrontation into shared mischief, and nobody lost face.

“I think we've both been spotted. We probably better put these back.”

The point: Many apparent trade-offs are emotional problems that a psychological reframe can dissolve, letting everyone save face.

Variants: The year shifts between 1952 and 1954, and the stolen item between salt cellar and pepper pot. One telling ends with Kevin Dutton asking whether a solution like that exists for practically everything.

Sources (3)

Get two dishwashers and never unload one again

exampletold in 3

Rory suggests anyone redoing their kitchen should install two dishwashers, and audiences look at him as if he's in the pay of Bosch. But with two you never unload a dishwasher and lose no storage. The clean one serves as a cupboard: take plates from it, eat, and put them in the dirty one. When the dirty one is full, run it, and it becomes the clean cupboard while the other, now empty, takes the dirty things. You just move things from one side to the other; you can even buy 'clean, dirty, running' signs on Amazon. Anyone without two, or without an evangelist friend who has them, thinks you're barking mad. It is obvious in retrospect and completely non-obvious in advance.

“It is absolutely obvious in retrospect but it's completely non-obvious in advance.”

The point: Many good ideas look absurd beforehand and obvious afterwards, so they are only found by people willing to question an object's assumed purpose and try them.

Variants: Asked whether he has two himself, he admits his wife refused, citing counter space.

Sources (3)

It's not cheating to change the question

principletold in 3

School teaches that there is a single right answer, that the question contains all the data you need to reach it, and that the question is the question. Real life is not like school. To become a creative problem-solver, Rory says, you must unlearn three things: there is more than one right answer to any question; the opposite of a good idea may be an even better idea; and it is not cheating to change the question. Good mathematicians know this. A problem may persist not because it is hard but because everyone has asked the wrong question about it. Most entrepreneurs succeed not by answering a question better than competitors but by asking a different one, and almost every disruptive business boils down to that.

“Unlike high school maths, it's not cheating to change the question.”

The point: Reframing the question is legitimate and often the best way to solve a problem that has resisted direct attack.

Variants: One telling adds that it is also legitimate to answer a question nobody has asked yet, and points to John Kay's Obliquity.

Sources (3)

Logic is there to correct your dreaming

principletold in 3

In Mathematica, the French mathematician David Bessis studies how the best mathematicians actually solve problems, and none of them work logic-first. They start with a conjecture, almost always reached intuitively, then stress-test it with mathematics. They say they use logic not to arrive at answers but to correct their dreaming when it goes wrong. Rory concludes that rational calculus should be deployed as a sense check at the end of the process, not allowed to define the process itself. That is exactly what finance should be doing: stress-testing people's intuition, not determining what they think about. Yet business prizes quality of argument over quality of outcome, so people would rather reach a justifiable decision than one that works.

“Logic actually isn't there to help you think. It's to correct your dreaming when it goes wrong.”

The point: Generate ideas by intuition and use logic to stress-test them, rather than letting analysis decide what gets thought about.

Sources (3)

More good ideas can be post-rationalised than pre-rationalised

principletold in 3

Rory's 'creative opportunity cost': there are far more good ideas we can post-rationalise than good ideas we can pre-rationalise. Demanding that someone wins the argument before trying anything is too big an ask, and it throws away most good ideas, which only make sense afterwards. After 25 years in a creative department he agrees that ideas float in the air and you catch them, develop a nose for what is interesting, then explain it. Biology is a science of exceptions: Darwin noticed finches with different beaks on nearby islands and asked why. Data also skews to the past and to what happens fast. So test stupid things, and when you test something, test its opposite too.

“There are far more good ideas we can post-rationalise than good ideas we can pre-rationalise.”

The point: Requiring advance justification filters out most good ideas, so experiment first and explain afterwards.

Variants: One telling adds a Silicon Valley investor who looks for an element that is slightly stupid, Scott Galloway's 'stupid until they weren't', and Tony's Chocolonely succeeding partly because its founders did not know what they were doing.

Sources (3)

Nobody asked for burning spirits in their ears

quiptold in 3

Turkish barbers flick burning methylated spirit at your ears to singe off the hair. No customer would ever have asked for it. Nobody in market research ten years ago would have said: I quite like my barber, I just wish he'd flick burning methylated spirits into my ears. There was literally no demand until it happened. Yet it is the flourish you notice, remember and find special, perversely enjoyable precisely because it is gratuitous. Be totally customer-led and you lose the capacity to surprise. Such touches are easy if you have the freedom to be silly, as in a founder-led or privately owned business; in a PLC where every cost goes through procurement they are incredibly hard.

“I really like my barber, I just wish they'd flick burning methylated spirits in my ears.”

The point: Research cannot discover delighters that nobody could imagine requesting, so organisations need the freedom to try gratuitous, silly touches.

Sources (3)

Sherlock Holmes, reason backwards

principletold in 3

Reading Sherlock Holmes obsessively shaped Rory. Holmes says the grand thing is to reason backwards, yet people rarely practise it: fifty can reason forwards for one who can reason backwards. Forward reasoning, this is true so we should do that, is prized and taught because it involves no subjectivity, so you cannot be blamed. Reasoning backwards asks: this happened, so what conditions could have led to it? Or, as Roger Martin puts it, what would have to be true for this to come about? That is abductive inference, and it needs imagination. Holmes is presented as supremely rational but is spectacularly creative: noticing the dog that didn't bark in the night-time is a leap of imagination, not deduction.

“What would have to be true if we want more people to do this?”

The point: Working backwards from an observed or desired outcome to the conditions that would produce it opens options that forward logic never reaches.

Variants: One telling widens it into Rory's half-serious theory that cops are better scientists than scientists, and criticises political movements for fantasising ideal societies instead of asking what would have to be true.

Sources (3)

The essay is worthless; writing it was the point

principletold in 3

Few people keep their student essays, and those that survive in garages are of no value to anyone. The value was never in the essay but in the process: the questions asked, the books read, the ordering of thoughts into a thesis. AI essays may be better and faster, but they are worthless, because they shortcut from request to finished product and bypass the part that mattered. Rory fears the same in advertising: weeks spent asking who we are talking to, why they should care and what makes us distinctive may be worth more than the resulting ad. Like a cruise ship, nobody boasts of its speed, because the time on board is the point. Some things gain their value from slowness and effort.

“The value of the essay wasn't in the essay, it was in the process you had to go through to write it.”

The point: Automating straight to the output can destroy value when the effortful process, not the product, was what mattered.

Variants: He also applies it to his own fortnightly Spectator column, and often follows it with Jeremy Bullmore's advice to produce an ad campaign you never run.

Sources (3)

The trial patients who wouldn't hand back their pills

storytold in 3

Viagra was being tested as a treatment for angina. Partway through the trial it clearly wasn't working, so the trial was abandoned and participants, among them a group of Welsh miners, were asked to send back their unused pills. Unlike every previous trial, many refused. Someone was clever enough to think: that has never happened before, let's find out what's going on. A useless angina cure turned out to be the right answer to a different question, a cure for which there was no known disease. Rory says a German company reportedly got there first, noticed the side effect and rejected the drug as a failure. It is perfectly acceptable to set out to solve one problem and accidentally solve another.

“It's the right answer to a different question.”

The point: Unexpected side effects and anomalies can be breakthroughs if you reframe the question instead of rejecting the result.

Variants: Another version has nurses noticing trial participants sitting in a really weird way.

Sources (3)

The Yorkshire Ripper parked the wrong way round

storytold in 3

Peter Sutcliffe, the Yorkshire Ripper, was caught partly because of how he parked. In Bradford's red-light district the etiquette was to park facing the wall, so nobody could see into the back seat. Sutcliffe had parked facing outwards, as if planning a quick getaway. Two beat officers noticed, because police are trained to reverse into bays themselves; Surrey Police told Rory they even do it at Sainsbury's. You cannot imprison someone for life for parking in a funny way, but it was significant enough to warrant further investigation. Rory uses it to show why police separate an investigative phase, where trivial anomalies tell you where to look, from an evidential phase, where you prove the case.

“You can't imprison someone for life for parking in a funny way, but it was significant enough to warrant further investigation.”

The point: Trained attention to trivial anomalies directs inquiry towards what systematic evidence-gathering would miss.

Variants: Often paired with Son of Sam, caught through a parking ticket, as proof that cops are more scientific than scientists.

Sources (3)

There is no data about the future

principletold in 3

Roger Martin, one of Rory's business gurus, points out that there is no data about the future. In finance, compliance and much of business, people say they cannot act without data to prove it. That sets the bar ridiculously high, because all big data comes from the same place, the past, and anything genuinely new has no supporting data at first. If you can only license what you do in the future on the basis of data from the past, you are creatively limited: you cannot really grow or differentiate. Efficiency is rarely questioned because it sounds logical, but it optimises for the past. So your approach must be partly experimental. Innovators, like police, are not just assembling evidence; they are creating it.

“All big data comes from the same place, the past.”

The point: Decisions about the future need experiment and creative reasoning, because data can only describe what has already happened.

Variants: One telling adds Martin's three sources of creative strategy, anomalies, analogies (Alien pitched as Jaws in space) and showing an assumed trade-off is not one, with humour as Rory's fourth. Mark Read adds that the better you model the past, the worse you may understand the future.

Sources (3)

A psychological TRIZ

principletold in 2

TRIZ was a Soviet-era innovation method that reverse-engineered Western patents to find recurring patterns of invention, treating most problems as contradictions; its originator was rewarded with years in the gulag. One pattern is to make the static thing move and the moving thing stay still, as online retail reverses who travels, shopper or goods. Rory realised that what he practises is a psychological TRIZ: sometimes a contradiction can be resolved in the mind. People hate waiting for taxis and you only have ten taxis, but let them watch the taxi approach and the wait becomes far less painful. He believes a collective effort could catalogue perhaps 27 recurring patterns shared by 90 per cent of truly innovative marketing ideas.

“Sometimes you can resolve a contradiction psychologically.”

The point: When a physical trade-off cannot be broken, changing perception can dissolve it, and the recurring patterns of such moves could be catalogued and taught.

Sources (2)

Andre Geim's hit-and-run science

exampletold in 2

Scientific funding usually demands a clearly identified problem and a single destination before you may experiment. Yet Andre Geim discovered graphene with equipment from a stationery shop, endlessly pulling apart pencil graphite with sticky tape; he also levitated a frog. He says grant-application science bores him and he prefers hit-and-run, drive-by research: find an interesting angle, mess around for a bit, see where it gets you, and discover the use later. Rory argues for random, curious and mischievous science that works backwards, a punt first and a rationale afterwards, and worries about a world where you must win an argument and get approval before you can act.

“You just find an interesting angle of inquiry and piss around for a bit and see where it gets you.”

The point: Exploratory, unjustified tinkering produces discoveries that goal-first funding would never permit.

Variants: One telling adds the mRNA vaccine scientist demoted at Penn who nearly quit, and David Ogilvy's admiration for Niels Bohr because his scientists played practical jokes on each other.

Sources (2)

Australian economists evolved like Australian fauna

analogytold in 2

Rory says Australian and New Zealand economists, such as Nicholas Gruen, whom Martin Wolf called the greatest economist you've never heard of, and Steve Keen, are genuinely better. Like the cassowary, the kangaroo, the koala and the fictional drop bear, they evolved at a distance from everything else, free of the fashions of American freshwater and saltwater economics and not prisoners of standard Chicago School doctrine. The isolation that drives Australians crazy is the place's most valuable feature: you are not endlessly infected by everybody else's ideas.

“You're not endlessly infected by the ideas of everybody else.”

The point: Intellectual isolation from the mainstream protects thinkers from orthodoxy and breeds original ideas, as geographic isolation breeds unique species.

Sources (2)

Behavioural economics began in a shared coffee room

exampletold in 2

Behavioural economics, Rory says, got started largely through a happy accident: at Stanford, sometime in the 1980s he thinks, the psychologists, Tversky and Kahneman among them, happened to share a coffee room with the economics faculty. The interplay between the two disciplines was far more interesting than either in isolation. As so often, the best ideas now emerge not within disciplines but at the intersections between them. That is why Nudgestock draws people from such diverse backgrounds, and why breaking down silos matters: a pattern that makes perfect sense in one context can be borrowed to explain something apparently completely different.

“The best ideas nowadays don't emerge within disciplines, they emerge at the intersections between them.”

The point: Breakthroughs come from collisions between disciplines, so organisations should design for cross-silo contact.

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Behavioural science tells you where to look

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Behavioural science is not a prescriptive science, Rory says: it doesn't tell you what to do, it tells you where to look. Its principal value, and the reason it isn't always welcome, is that it expands the solution space, so there are ten places to look rather than two. Economics typically offers two places on incentives: bribe people for doing something or fine them for not doing it. If someone breaks a compliance rule, an economist says fine or fire them; he would never suggest making them wear a hat with a penis on it at work for a few days, which might work better. That narrowness is bizarrely popular in business and politics because it protects decision-makers from blame.

“It doesn't tell you what to do, it tells you where to look.”

The point: The value of psychology lies in widening the range of possible solutions beyond the bribe-or-fine options that economic thinking offers.

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Consumer markets are the Galapagos, be Darwin, not Newton

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Rory has stayed at Ogilvy since 1988 partly from curiosity: an ad agency, like consumer capitalism generally, is the Galapagos Islands for observing human behaviour, with all the anomalies and weird patterns in one place. Go out, look for peculiarities and oddities, and spot their significance. Everybody is trying to be like Newton, looking for a theory of everything that makes the world look like physics; you need to try to be like Darwin, because the only correct response to a complex world is observation, often of anomalies. Practitioners are often far ahead of academics because they stumble on discoveries, but they fail to codify them. He wants a symbiosis: practitioners find the oddities, academics mathematise and test them.

“Everybody's trying to be like Newton, and you need to try to be like Darwin.”

The point: In complex systems, collecting and explaining real-world anomalies beats imposing grand theories, and markets are the richest place to find them.

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Creative architects didn't start drawing straight away

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John Cleese's book on creativity cites 1950s Berkeley research comparing ten first-rate architects with ten workaday ones, none told why they had been chosen. Their habits varied, night owls and early birds, but one thing split the groups perfectly. The indifferent architects all started drawing straight away; the creative ones did not put pen to paper immediately. They spent time doodling, playing, waiting for inspiration and perhaps re-asking the question. Rory reads this as being emotionally content in a space of not knowing, as Margaret Heffernan describes, and waiting to get lucky. His wife wants to know what is happening on Saturday; he would rather wait and see. As John Lennon said, time spent doing nothing is rarely wasted.

“You are content in a space of not knowing.”

The point: Tolerating uncertainty before committing to a solution leaves room for better ideas to arrive.

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Creatives are right to have no sense of proportion

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One reason people find creative types annoying is that they have no sense of proportion: they obsess over trivial details and ignore things they are supposed to care about. Rory argues they are right, because their audience has no sense of proportion either. Real customers respond disproportionately to small things and are indifferent to big ones. One phrase said two slightly different ways, trivial to a grammarian, can arouse diametrically opposite emotions. Drawing on David Snowden's Cynefin model, he says procurement, logistics and operations people build careers in the simple and complicated domains, while marketers work in the complex one, which is why the former find marketers maddening.

“Creative people are right not to have a sense of proportion, because neither does their audience.”

The point: In complex human systems small differences are not proportionately small in effect, so an eye for the trivial is an asset.

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Feynman, first, you guess

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Rory watches a clip of Richard Feynman roughly every two weeks for fun. Feynman is explaining how a new scientific law is found: 'First, you guess.' The lecture hall bursts out laughing, and he says don't laugh, that is exactly how it works. Everything starts with a guess, something from the unconscious. Then you compare it with experiment, and if it disagrees with reality, the guess is wrong. Everything begins with some degree of speculation; logic and experiment are the check, not the source.

“Don't laugh, that's exactly how it works.”

The point: Discovery starts with intuition and uses logic and experiment to test it, so demanding logic first gets the order wrong.

Variants: One telling adds Rory's aside that Feynman's last wife was British, probably because only British women have low enough expectations of male behaviour to put up with him.

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Fleming nearly missed penicillin

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On the day of the discovery, Alexander Fleming was not supposed to be at St Mary's. He was meant to be away at his cottage, but a crisis brought him grudgingly into London, and while there he looked at his Petri dishes. Had he decided that one simply hadn't grown properly, he would have thrown it in the bin with the rest. Biology is a science of exceptions, not laws, and the anomaly most people try to freeze out because it is annoying is really where the news comes from. Once you succeed, nobody cares how you got there: Rory asks CEOs whether anyone refuses penicillin because its discovery was not planned in advance.

“If there's anybody here who refuses to take penicillin because its discovery was not planned in advance, you're very principled, but quite likely to die.”

The point: Breakthroughs hide in the anomalies that tidy-minded people discard, and an accidental discovery is worth exactly as much as a planned one.

Variants: One telling turns it into a joke about return-to-office mandates, then notes Newton discovered gravity working from home during a pandemic: swings and roundabouts.

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Free Crocs for the first week of school

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A UN agency was given a huge donation of children's shoes by Crocs, for parts of Africa where children lacked shoes. The logical plan, which 99 per cent of people would follow and nobody would criticise, was to find where people had no shoes and hand them out. Instead the person in charge asked how to get double duty from them: give a pair to every child who turned up at school in the first week. Children who saw others with new shoes asked where they got them, and turned up the next day so as not to miss out. It shod the unshod and created the habit of attending at the start of term, which makes continuing far more likely. That is alchemy: a free lunch.

“If you use Newtonian physics there's no free lunch. If you look at the world psychologically there are free lunches everywhere.”

The point: The same resource, delivered with a little creative conditioning, can achieve a second goal at no extra cost.

Variants: The agency is UNESCO in one telling and UNICEF in the other. One adds Rory's unhelpful joke that Crocs are a fantastic contraceptive; the other his line that it is much easier to get fired for being illogical than for being unimaginative.

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Just have ideas, then post-rationalise them

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A client wanted commercial innovation, the kind that changes the relationship with the consumer rather than the product, like Amazon Prime or Share a Coke. They proposed to define it, build a framework and run a process to select the best ideas: theorise first, have ideas second. Rory asked why not do it backwards: have a load of ideas, then post-rationalise them, because that is how it really works; we just pretend it isn't. Pre-rationalisation mostly feeds senior egos that want to believe good things come from the top, whereas most progress is bottom-up. Nobody could get married or choose where to live that way. You couldn't do anything interesting in life if you first needed a 56-page PowerPoint deck.

“Why don't you just have a load of ideas and then post-rationalise them, because that's how it really works.”

The point: Defensive, theory-first process substitutes for experimentation and filters out interesting ideas; generate first, justify after.

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Make an ad campaign even if you never run it

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Jeremy Bullmore always said that even a company with no media budget and no intention of advertising should produce an advertising campaign for itself, and Rory thinks very many medium-sized B2B firms should. The value lies in the questions it forces: why are we here, why do we deserve to exist, who do we serve, what makes us different, what do people pay for that we provide too little of? Those questions and the journey to the end point deliver perhaps 80 per cent of the value, even if the ads never run. Leap straight to the finished ad and you lose that. In business the by-product can be more valuable than the product, so be careful what you shortcut.

“The process of producing an ad for a company forces you to ask questions like what are we for, who do we serve.”

The point: When the value lies in the questions a process forces, shortcutting to the output destroys it.

Variants: Usually paired with the worthless student essay: the essay had no value, the work of writing it did.

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Make the daily pill awkward to take

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Drug companies rationally make pills as small and easy to swallow as possible. Rory and Dan Ariely, hearing this on a call, worried: something tiny and effortless is also forgettable, and the biggest problem in treating many conditions is patient compliance. For a drug taken every day it may be better to make it awkward: grind it with a pestle and mortar and dissolve it in water. A ritual is hard to forget; after a week you notice when you haven't done it, whereas with three tiny pills you can't remember whether you've taken them. More effort in preparation would probably boost the placebo effect too. Advertising, he says, is the Galapagos of behaviour: oddities found in trivial settings apply to big problems.

“When you make something very small and very easy to take, you also make it very forgettable.”

The point: Deliberate friction can create a memorable ritual that improves adherence and perceived efficacy, against the instinct to make everything effortless.

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Nearly all progress happens backwards

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Rory reckons perhaps 90 per cent of progress, in business, science and pharmaceuticals, is messy, non-linear and happens backwards. Penicillin and Viagra came from someone making a lucky observation, asking what it meant and building on it. Darwin didn't start with an idea; he looked at birds and worked it out backwards. Scientific progress is much more penicillin than sequential logical steps agreed in advance. Yet in an organisation that must justify everything by cost-benefit analysis, you must do the reasoning first, and most effort goes into pretending upwards that things make more sense than they do. That pretence has an opportunity cost: Red Bull or miso soup make no sense until recontextualised, and bottom-up ideas never surface.

“Scientific progress is much more penicillin than it is sequential logical activities all agreed in advance.”

The point: Discovery usually precedes explanation, so demanding a business case first kills most breakthroughs.

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Nobody asked to spend more on a vacuum cleaner

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Nobody went to James Dyson saying they were annoyed because they were looking for a chance to spend more money on a vacuum cleaner, and no data point would have told you they were. Had Dyson pitched an £800 vacuum cleaner to Rory in the 1990s, he says he'd have explained that the market peaks at about £400 for a Miele; that it's a distressed purchase you make when you leave home or the old one breaks; that no couple goes vacuum cleaner shopping for the lols; and that anyone who can afford £800 pays someone else to clean. All perfectly good logical objections. Had Dyson returned with a £400 hairdryer, Rory would have had him escorted out as a lunatic.

“There was no data point that was going to tell you that.”

The point: Breakthrough propositions are invisible in data and fail logical scrutiny in advance, so demand for them has to be discovered by experiment.

Variants: One telling pairs it with Starbucks: nobody complained that they couldn't spend $5 on a coffee. Another cites Roger Martin: big innovations come from 'what if', not 'what is'.

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Rationality is the bronze standard; magic is gold

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In most businesses, accounting or law, rationality is the gold standard: sound rational and you win the argument. In advertising, hospitality, theoretical physics or entrepreneurship, Rory argues, rationality is the bronze standard. A rational solution is fine; you won't get fired. But present a rational ad and you hear: yeah, it's all right, can you do better, funnier, more memorable? Silver is ingenuity, and gold is complete magic, and all magic relies on psychology; even technology is only magical because of how it makes us feel. He is not against data or reason; his complaint is that accountants, lawyers and economists have a monopoly on decision-making. If you don't believe in magic, you won't look for it.

“If you don't believe in magic, you won't look for it.”

The point: Treat the rational answer as the floor and a springboard, not the ceiling, or imaginative solutions will never be sought or recognised.

Variants: One telling grounds it in John Ralston Saul's Voltaire's Bastards: reason is only one of the brain's capacities alongside imagination, creativity and common sense, yet we made it the gold standard.

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Stories are the PDF files of the human mind

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Rory describes stories as the PDF files of human information: the universal format for storing and sharing information that any recipient can open, whatever their hardware. Just as you convert a document to PDF so others can read and sign it, you must get an idea into story form for it to be memorable and shareable. Nobody stays in the pub while someone recites data or shows graphs. Asked whether good stories need embellishment, he recalls David Ogilvy, challenged on the accuracy of a story in his autobiography, replying in effect: I know, but it's a good story, so shut up.

“Stories are the PDF files for the human mind.”

The point: Ideas only travel between people once converted into story form, so delivery matters as much as content.

Variants: In another telling it comes while crediting his Welsh upbringing for his speaking style, alongside Taleb's advice that slight difficulty in following a speaker makes listeners pay more attention.

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The creative process, talk until you get lucky

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Rory's confession after 30 years in advertising: agencies pretend there is a linear process for generating ideas, but there isn't. Checklists are valuable, but the process, in as far as there is one, is basically talking nonsense until you get lucky; that is about half of how it works. More than half of great campaigns started with an idea and worked backwards to a brief. The pretence exists to keep procurement happy, since agencies charge by the hour and can hardly ask for thousands of pounds to talk until they get lucky, and to preserve senior people's status. Nobody planned you either: you are the product of lucky accidents, ancestors who managed to have sex before they died.

“We can't go and say can you give us thousands of pounds to talk until we get lucky.”

The point: Creative work is partly random and bottom-up, and forcing it into the appearance of a linear process filters out good solutions.

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The Dulux dog wandered into the shoot

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One of the greatest brand assets imaginable is the Dulux dog. You can post-rationalise why an Old English Sheepdog suits a paint brand, but it didn't happen like that. The crew were shooting a freshly painted room in a rented house whose owner had an Old English Sheepdog. It escaped and wandered into shot, and the director, astute enough to see it looked a lot better with the dog in it, said the dog stays in the picture. That accident became literally a billion-dollar brand property. Much of advertising's success is accidents plus someone with the perceptual acuity to notice their significance and the confidence to act. If everything must be pre-scripted by rationalist accountants, the creative solution space shrinks to a tenth.

“That is literally a billion-dollar brand property.”

The point: Huge assets often arise from accidents, so the skill lies in noticing them and having the nerve to keep them rather than pre-scripting everything.

Variants: One telling credits the director, the other the photographer; Rory also uses it as proof of fat-tailed outcomes when Ogilvy brings the dog back.

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The intermediate impossible, an airline whose planes can't leave

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One creative technique Rory uses is what he calls the intermediate impossible: impose an absurd constraint to force you out of the default solution. For example: we have to make money from an airline, but the one limitation is that the planes are not allowed to leave the ground. Riding to a studio, he applied it to London taxis: they should earn money while stationary by renting out the space. Every cab could have a small table; you call one down and take a Zoom call or work in it for an hour while the driver has a meal. Otherwise, in London, you end up buying three coffees in a café while hunting for a quiet corner.

“We've got to make money from an airline, but the one limitation is the planes aren't allowed to leave.”

The point: An impossible constraint forces thinking away from the default use of an asset and reveals hidden sources of value.

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We are much more wrong about psychology than physics

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Of the three routes to a better future, technology, economics and psychology, Rory is most optimistic about psychology, for a simple reason: we are much more wrong about psychology than we are about physics, so the potential for progress is greater. Behavioural economics has arguably advanced more in the last 20 or 30 years than in the previous century. Producing a faster aircraft is going to be really hard; producing an aircraft that people enjoy being on is an easier problem. We spend disproportionate attention on objective reality when we should be experimenting with context, meaning and perception, improving the human condition within our minds rather than through external invention and consumption.

“We're really much more wrong about psychology than we are about physics.”

The point: The biggest untapped gains lie where understanding is weakest, which today is human psychology rather than technology.

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'Solutions for a small planet' began as an insult

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IBM's endline 'Solutions for a small planet', which Ogilvy gave them in the late 1990s, came out of a research group where someone said it as a criticism: all you people are doing is coming up with solutions for a small planet. Someone in the room heard it and took it. A lot of creativity isn't origination but inspired observation. Rory likes the parallel of owning an insult: Welsh rugby fans bring inflatable sheep to matches, and Wisconsin fans wear cheese wedges on their heads.

“A lot of creativity is just an act of inspired observation, nothing more, nothing less.”

The point: Good ideas are often found by listening, including to criticism, rather than invented from scratch.

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'Why are you going to this conference?' 'I don't know yet'

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A lost salary is quantifiable and concrete; an opportunity cost is nebulous. That is why Rory says 20 per cent of your life should be deliberately a bit randomised. His own employer sometimes asked, 'Why are you going to this conference?', and he would answer, 'I don't know yet, because I haven't been.' A proportion of your resources should go to exploratory activities, because focusing purely on the day job feels efficient while hiding what you miss.

“I don't know yet because I haven't been.”

The point: Exploration cannot be justified in advance, so a fixed share of time should be ring-fenced for it.

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A billion-pound station with no magic

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London Bridge station got a billion-pound rebuild but forgot the one bit of 'magical bollocks' St Pancras had. Rory would have had two shops there not to make money but to be cool: Europe's largest florist, a carpet of flowers at the foot of the escalators, rent-free if it kept long hours, so everyone would say the flowers are stunning. The finance director would kill the idea and the florist first. An engineer even objected to earlier boarding because it lost station retail sales.

“Just do something really, really weird.”

The point: Spend a sliver of a big budget on something memorable rather than purely profitable.

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A good guess that survives testing is still science

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Rory cites Paul Feyerabend, who called himself a methodological anarchist [?]: worthwhile discoveries have not all come from obeying strict scientific method, so why let methodological purity restrict your solution set? Science should be useful, not a status-signalling vehicle for obsessive rationalists. We must become comfortable with progress that arises from random accident, rather than letting those good at post-rationalisation monopolise the toolbox. Most evolutionary progress happened by fluke.

“A good guess which stands up to empirical observation is still science.”

The point: How an idea was found matters less than whether it works when tested.

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A metaphor doesn't have to be true to be useful

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When a viewer objected to a speaker's use of left brain and right brain, Rory defended it. A metaphor, to be useful, does not have to be true; it can simply be useful. And he points the sceptic to the neuroscientist Iain McGilchrist's work on the hemispheres. The shorthand for rational, institutional thinking versus intuitive, creative thinking earns its keep regardless of the anatomy.

“A metaphor to be useful doesn't have to be true.”

The point: Judge models and metaphors by how well they help you act, not only by their literal accuracy.

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Abductive inference, imagine what would make it normal

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Rory had just discovered the American logician Charles Sanders Peirce, who argued that most problem solving is not sequential thought but 'abductive inference'. You notice something unusual, or imagine something different, and then work out what the prevailing conditions must be for that to be normal. That is what Darwin did: all these finches have different beaks, so what would have to be true for that to emerge? It always requires a leap of imagination, so any process that does not allow for that leap is flawed from the outset.

“Anything that doesn't allow for that leap is essentially flawed from the outset.”

The point: Real problem solving starts with an imaginative leap from an anomaly, which purely sequential logic cannot supply.

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Adam Smith's theory of innovation, combining dissimilar objects

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Rory argues The Wealth of Nations, like The Origin of Species, has been unfairly cherry-picked down to a single idea, and calls Smith the world's first behavioural economist. One of his favourite sentences describes people 'whose trade it is not to do anything, but to observe everything, and who upon that account are often capable of combining together the powers of the most distant and dissimilar objects'. Two hundred years before TRIZ, that is a brilliant theory of innovation: a recombinatorial process of taking something from one place and melding it with something completely different.

“Their trade is not to do anything, but to observe everything.”

The point: Innovation comes largely from observation and recombining ideas from distant fields.

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Aesop's farmer and the buried treasure

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Digging into Aesop, Rory found many fables that are really nudge experiments. A farmer leaves his land to his children and tells them treasure is buried there. They dig up the whole farm looking for it, and in doing so they plough it. They do find treasure, in the form of greater crop productivity. He also notes Jesus's parables, such as the lost sheep and loss aversion: people thousands of years ago wrestled with perception versus reality and illustrated it anecdotally.

The point: A motivating story can get people to do the useful thing they would never do for its stated reason.

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AI as a checklist and a weirdness dial

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Rory uses AI as a checklist: it generates a good list of "have you thought of this, have you thought of that". There is never anything wrong with checklists; they are wonderful in surgery and aviation and also in creative work, much like Ogilvy's use of the MINDSPACE framework, because whole avenues of inquiry are otherwise overlooked. And AI has a "temperature" setting: turn it down for plodding, low-risk output, or up to levels of weirdness that could be inspiring. Synthetic research also lets you question the same respondents again and again, which would annoy real humans.

“There is never anything wrong with checklists.”

The point: AI is useful creatively as a prompt against overlooked options and a source of controlled randomness.

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AI can explain a joke but not write one

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Rory asked an AI to explain a crude pub-name joke he told his children years ago, and it understood it perfectly, if primly. Asked for a similar joke, it produced a nonsense pun about a Japanese restaurant that made no sense at all, as if it had slotted random words into a joke structure. If you treat a joke as emblematic of a big creative idea, AI cannot yet originate one, though it may be a good sidekick and could amplify an idea once grasped. AI can amplify brilliance or replicate mediocrity, and he would use it to shrink admin, not the people doing valuable work. Agencies should also stop charging by the hour.

“AI can explain jokes very well, but it can't come up with a joke on its own.”

The point: AI is better at exploiting existing ideas than at exploring for genuinely new ones.

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AI for blind-spot detection, not confirmation

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Discussing short sellers, Rory notes that they look for what everybody else believes, assumes or tacitly takes for granted. The interesting question about AI is whether we will use it to reinforce our confirmation bias or for what he calls blind-spot detection: asking what we are all ignoring. The Big Short, his near-favourite film, is about people who saw collective insanity and misaligned incentives.

“Will we use it to reinforce our confirmation bias, or will we use it for what you might call blind-spot detection?”

The point: The most valuable use of analytical tools is finding what the consensus overlooks.

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AI gets you to the wrong answer faster

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Asked how to improve client briefs, Rory starts with: have you defined the problem? AI may be interesting, but if you ask the wrong question it will just get you to the wrong answer faster. The real value is redefining the question in a more interesting way. He also thinks briefs prize linearity too much: advertising that does not answer the brief but makes you famous is valuable, yet saying 'we'll make you famous' sounds unclever, as does 'put a dog in your advertising', so agencies talk about funnel optimisation instead.

“If you're asking the wrong question, it will just get you to the wrong answer faster.”

The point: Reframing the problem matters more than speeding up the answer, and broad goals like fame deserve a place in briefs.

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AI market research as open-ended conversation

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Traditional market research writes down a list of questions, so the questions reflect the researcher's preconceptions about what matters. With AI market researchers, Rory says, the inquiry can be run as a conversation that goes wherever it goes. The great advantage is that you can start an inquiry without preconceptions about where it will end.

“We can actually start an inquiry without preconceptions as to the end point.”

The point: Open-ended inquiry surfaces things fixed questionnaires cannot, because the questions embed assumptions.

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Aliens killed by salt water

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Rory invokes the science fiction trope where aliens take over the world and then turn out to be killed by salt water or airborne microbes we are immune to. Because Covid was a new virus, he thought it not unlikely that something surprisingly banal and already in common use, like spraying something in the air, might turn out to have an extraordinary effect.

The point: Novel problems may yield to cheap, mundane solutions nobody thought to try.

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Allow a Pythonesque period before every project

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You only reach an interesting answer if you start with an interesting question, Rory says, but modern business makes it too easy to be boringly, shallowly logical, what Nassim Taleb calls naive rationality: 'this makes sense, I won't get fired.' He wants a period before any project where people are allowed to be Pythonesque. Comedy is a huge influence on behavioural science because comedy notices things everybody wants but nobody talks about. You should not be a behavioural scientist without a sense of humour.

“You only come to an interesting answer if you start with an interesting question.”

The point: Absurdist, comedic thinking surfaces truths that logical framing hides.

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Always place a side bet

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We tend to count success as valid only if we planned it. Rory finds that too deterministic: in life you should always place a side bet, something you are not sure where it is going but are currently interested in, because it maximises your chances of getting lucky. You do not go to a party with a specific intention; you go to see what happens. Large businesses define everyone's job so narrowly, to look efficient, that they pay a hidden cost: no lucky accidents. Most breakthrough discoveries, like penicillin and Viagra, involved luck.

“You ought to always in life place a side bet.”

The point: Leaving room for undirected curiosity is how organisations and people get lucky.

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American cities are industry towns

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Asked why he never lived in America, Rory says advertising would mean New York, and New York, LA, DC and San Francisco are annoyingly industry towns: finance, entertainment, government, software. A friend says Silicon Valley dinner parties are unbelievably boring because everyone talks tech, whereas a London dinner party mixes journalists and people discussing education policy or architecture. He also notes an asymmetry: the good stuff of the US eventually crosses the Atlantic east, but cathedrals and medieval towns do not travel west.

“Silicon Valley dinner parties are unbelievably boring because everybody just talks about tech.”

The point: Mixed environments generate more varied ideas than monocultures.

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Anomaly, analogy, trade-off and humour

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Roger Martin says real strategic breakthroughs happen like scientific ones: by spotting an anomaly, by an imaginative analogical leap such as asking what is the Red Bull of hotels, or by finding a trade-off and resolving it creatively, as in reassuringly expensive, which turns a weakness into a strength. Restaurants sometimes do the opposite, amplifying a negative such as refusing to serve ketchup as proof of authenticity. Rory adds a fourth route: humour, a non-logical gift we strangely undervalue at work.

“What's the Red Bull of hotels?”

The point: Breakthroughs follow recognisable non-logical routes that can be deliberately practised.

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Archimedes had the idea getting into the bath

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Rory supports flexible working partly because there is surprising value in turning off the computer and stacking the dishwasher. People say Archimedes had his idea in the bath, but he actually had it getting into the bath. In the transition between mental states the brain briefly goes into neutral, like changing gear in an old petrol car, and something may happen that would not otherwise. Kant walked at the same time every day; Nassim Taleb is a devotee of walking. Our brains are embodied.

“People always say he had the idea in the bath, but he actually had the idea getting into the bath.”

The point: Transitions and breaks are productive parts of creative thinking.

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Artificial inquisitiveness, not artificial intelligence

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Rory is less interested in AI making decisions than in what he calls artificial inquisitiveness: make it point out interesting things to you. Setting it loose on a data set to find the anomalies may be more valuable than having it produce the generalities. He notes it is also a plagiarism engine and confabulates: asked about him, it said he had a CBE, studied PPE rather than Classics and worked for McKinsey, constructing something plausible rather than true.

“Don't make this thing make decisions, make it point out interesting things to you.”

The point: AI's best use may be surfacing anomalies for humans to explore rather than deciding.

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Ask the question nobody was stupid enough to ask

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One of the simplest ways to solve a problem is to ask a question no one has asked before. The reason it has not been asked may be that no one was clever enough, but more likely no one was stupid enough: many questions make you sound dumb because a pre-existing rational explanation already seems to cover them. Rory's twelfth rule is to dare to look stupid.

“A more likely explanation is that no one was stupid enough to ask it.”

The point: Fear of looking naive leaves obvious-seeming questions unasked, and that is where fresh solutions hide.

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Ask why people don't take the train

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Rory follows Warren Buffett's 'always invert': about a third of the time his secret trick is to ask the question the opposite way round. Briefed to get more people on trains, marketers list benefits; he asks why people don't go by train. Some reasons are sensible, such as needing a car at the other end or carrying luggage, so leave those people alone. Others are dumb: it never occurred to them, car owners have a sunk cost, or someone believed trains do not stop in Bristol. Tackle the stupid objections and leave the good ones.

“Don't say why should people buy this, say why aren't they buying it.”

The point: Inverting the question surfaces silly, fixable barriers that a list of benefits would never address.

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At 59 a dumb question sounds profound

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One advantage of age: if you are 28 and ask a dumb question, people think you are dumb; at 59, they think you are being profound. It is like a Buddhist monk asking 'why do people buy dishwashers?' A 23-year-old would be told 'to wash their dishes, you dummy.' Design thinking and business philosophy involve infantile-sounding questions: why do people enjoy this, do they really care or just say they do, do they even notice? Finding psychological explanations means going conversationally off-piste.

“If you're 28 and you ask a dumb question, people think you're dumb. If you're 59 and you ask a dumb question, people think you're being profound.”

The point: Naive questions unlock psychological insight, and status changes how they are received.

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Auction off driving a Tube train for a day

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Hearing about Omaze's money-can't-buy prizes, Rory riffs that he has always thought you shouldn't need Tube train drivers, because everybody would love to drive a Tube train for a day. You could make it an auction prize and eventually do away with drivers, though he concedes there would be safety and training implications. He also jokes that operating a defibrillator would make a good prize, since everyone who has watched hospital dramas has a small fantasy about the paddles.

“Everybody would love to drive a Tube train for a day, wouldn't they?”

The point: Work some people are paid to do is an experience others would pay for.

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Before prompt engineers, teach people to use Google

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Asked how he finds ideas, Rory admits his reading took a hit after an eye operation and he now uses audiobooks, but he browses online very extensively. His banal-sounding tip is to get good at using Google: brackets, plus and minus signs, inverted commas. Nobody is taught these techniques. Everyone talks about the largely imaginary class of AI 'prompt engineers', but before that we need people taught to search well, because it makes a big difference to finding things that are relevant and surprising.

“Before that we need people just to be taught how to use Google really, really well.”

The point: Basic search skill is an undervalued source of relevant and surprising ideas.

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Behavioural science gives permission to ask

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The most valuable thing about Rory's time championing behavioural science was not what he or his team did, but that it created space for the conversation. Once they had talked to a business about it, it became permissible to say: we're assuming that if we drop the price demand will go up, but shouldn't we also test putting the price up? Sometimes demand rises when price rises. To an economist price is a number; to a customer it is a feeling.

“To an economist, price is a number. To a customer, it's a feeling.”

The point: A new discipline's greatest value can be legitimising counterintuitive questions inside an organisation.

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Being wrong is the price of being interesting

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Rory says he is a huge fan of Byron Sharp and Mark Ritson, who reach many of the same conclusions from different approaches, and they are probably right where they disagree with him. He fundamentally accepts that some of the things he says are wrong. His point is that being wrong occasionally is the price you pay for being interesting, a trade-off we just have to accept.

“Being wrong occasionally is the price you pay for being interesting.”

The point: Original thinking requires tolerating some error.

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Boiling water with two candles

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Give a team two candles and a box of matches and ask them to boil some water. Shrewd people calculate that the candles lack the calorific value, tick 'cannot be done' and move on. But the boiling point depends on altitude: take it somewhere very high, or create a vacuum, and the same heat may suffice. Or move the water to France, where everybody knows water boils at 50 degrees, which is the only thing that explains the quality of the tea. Many problems are solved by recontextualising them and adding a variable nobody considered.

“You could just move the water to France where everybody knows water boils at 50 degrees.”

The point: Problems declared impossible often become solvable once you change the context rather than the inputs.

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Brian Eno's axis theory, add a perpendicular axis

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Brian Eno, whom Rory sees as an heir to Smith on innovation, argues our thinking tends to optimise along a single axis; add a second, perpendicular axis and you find unexplored space. Rory's example: billions spent increasing electric car range, when you could reduce anxiety instead. (In Britain, drive 300 miles in a straight line and you end up in the sea.) Everybody focused on what a computer could do; Steve Jobs asked what it feels like while you're doing it. Before the iMac, a computer turned any room into an office.

“Steve Jobs asked the question, 'Yes, but what does it feel like while you're doing it?'”

The point: Breakthroughs come from optimising a dimension competitors are not measuring.

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Buckminster Fuller's trim tab

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Buckminster Fuller called himself a trim tab, after the small part of a boat or plane where the smallest movement has the biggest effect on the craft's direction. Rory offers it as a model for all marketing thinking: the opposite of proportionality. If you obsess about numbers you adopt a mechanistic view where things happen in proportion; marketing, at the price of some unpredictability, offers trim-tab moments where one tiny intervention has massive effects, for good or ill.

“The smallest movement has the biggest effect on the direction of the craft.”

The point: Look for the small, leveraged intervention rather than assuming big change needs big inputs.

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Buy your creative department YouTube Premium

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Curiosity is decisive. David Ogilvy described the good copywriter as typically an extensive browser in all kinds of fields. Rory's tip for anyone running a creative department: buy everyone YouTube Premium, and the Audible deal of 24 audiobooks a year for about £120. Make sure they have all the mechanisms needed to feed their curiosity. Creativity, he argues, is not that scarce; it suffers from under-appreciation and under-adoption.

“If you run a creative department, just buy them all YouTube Premium.”

The point: Cheaply feeding curiosity is one of the best investments in creative output.

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Capability Brown saved England from the chessboard garden

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Rory thinks landscape gardening is one of England's least heralded artistic achievements of the last 500 years. Without people like Capability Brown, some French person would have turned the place into a symmetrical chessboard like the garden in Last Year at Marienbad. The idea that a garden should replicate an ideal form of natural landscape was a genuine creative leap of the 1776 era. (His parents-in-law garden; he advised them to take up crack cocaine instead, as it's cheaper and less addictive.)

The point: Reframing the purpose of something, here a garden, can create an entire art form.

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Comedians tweak word order to get the laugh

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Comedy is brilliant because it has fast feedback: there are few bad comedians, not because they do not exist, but because they quickly realise nobody is laughing. Like performance marketing, comedians tinker with the word order of a sentence to see what gets the bigger laugh, and a joke they think brilliant sometimes fails. Nobody can say why flipping the word order stops something being funny. Free-market capitalism works by the same endless trial and error, because nobody can describe in advance what they want or why they like what they like.

“Nobody can describe in advance what it is they really want or indeed why they like the things they like.”

The point: Where preferences cannot be articulated, rapid testing and variation beat theory.

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Could AI have written 'reassuringly expensive' in 1974?

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Ogilvy describes its work as behavioural science and creativity together, complementary goods like a hot dog and a hot dog roll. AI can be trained on behavioural science, and Rory likes checklists, but AI tells you what to do, not how. All its training data comes from the past, so it can make incremental Bayesian progress but struggles to leap. It could understand the pratfall effect; could it have come up with 'reassuringly expensive' had that line not existed in 1974? He's genuinely not sure.

“All AI training data comes from the same place, the past.”

The point: Knowing a principle is not the same as finding the original execution that brings it to life.

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Creative people run towards the fire

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Nudgestock 2021 was billed as 200,000 years of BS, and BS also abbreviates bullshit. The standard reaction is: we can't go there. The creative reaction is to run towards the fire. Given a contradiction, the typical person runs away from it and pretends it is not there; the creative person embraces it. Guinness takes ages to pour: good things come to those who wait. Stella is reassuringly expensive. Avis is not as big as Hertz: we're number two, so we try harder. It is why creatives are a pain in the arse, and necessary.

“The creative person's reaction is to run towards the fire, not away from the fire.”

The point: Owning a weakness or contradiction openly is often the most powerful persuasive move.

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Creatives are judged by accountants, never the reverse

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Rory notices a strange asymmetry in business. Creative people always have to present their ideas for assessment by highly rational, left-brain people. That is probably fine: you don't want the people who check the wheel nuts on planes to be wildly experimental. But it never happens the other way round. A room of accountants will reach a conclusion by their own formula and never suggest throwing the problem out to some wacky people to see if there are alternative solutions. He links this to Iain McGilchrist's point that the left brain has assumed a dominance it doesn't deserve.

“They'll never suggest just throwing it out to some wacky people to see if there are alternative solutions.”

The point: Organisations let logic veto creativity but never let creativity challenge logic, which narrows the solutions they ever consider.

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Creativity belongs across all five Ps

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Rory fights the idea that creativity in business should be confined to the communications function. You can be creative across all five Ps of marketing. You can be really creative with pricing: Amazon Prime is a genius billion-dollar idea. If you can solve a marketing problem with an app or a piece of choice architecture without giving millions to media owners, that is exactly what you should do. He welcomes the broader canvas, even if TV advertising's best has taken a hit.

“You can be really creative with pricing. Amazon Prime is a genius billion-dollar idea.”

The point: Creative solutions can come from pricing, product or process, not just advertising.

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Creativity's real value is spotting opportunities

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Outside a few R&D departments and think tanks, the only people in business or government paid to generate ideas work in creative departments, and they are usually left to the end of the process. Part of creativity's value is solving known problems, but the greater part is spotting opportunities. If creatives may only work to a brief, as advertising agencies do, that opportunity-spotting role is completely missed, because known, visible problems are a small subset of the available opportunities.

“Solving known and visible problems is a very small subset of available opportunities.”

The point: Bringing creative people in only at the end confines them to briefs and forfeits most of their value.

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Curiosity as the one hiring test

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Asked what he looks for in people, Rory names a single quality: curiosity. The one deal breaker for employing someone in a creative role would be someone who is fundamentally uncurious. Skills can be learned, but a lack of curiosity cannot easily be fixed.

“The one thing that would be a deal breaker would be someone who is fundamentally uncurious.”

The point: Curiosity is the trait that underpins creative usefulness, so screen for it above credentials.

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Dan Ariely's London sabbatical, city or country?

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Over dinner, Rory and Dan Ariely debated for ages whether Ariely, planning six months in London, should live in the city or the country. Then they looked at each other and laughed: the optimum was to do both. There is no point having a big house in London, because what is the point of being in London if you are indoors? Get a crash pad in town and a place with an orchard in Kent. We automatically frame decisions as either/or, and the pretence of rationality implies there is only one right answer.

“What's the point of being in London if you're indoors?”

The point: Even behavioural scientists default to either/or; the best answer is often a combination.

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Dare to be trivial

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When Rory's team founded Ogilvy's behavioural science practice, one mantra was dare to be trivial. It is uncomfortable for people with a Harvard Business School mindset to accept that success or failure is not always down to big things like supply chain management, but can turn on a trivial psychological effect where you hit pay dirt. The consumer brain has no sense of proportion; it uses arbitrary heuristics. One of the most valuable things in business is being gratuitously noticeable, which to the financial mindset seems absurdly trivial.

“One of the most valuable things you can have in business is just being gratuitously noticeable.”

The point: Small, seemingly trivial psychological details can decide commercial outcomes.

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Don't apologise for a post-rationalisation

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Much advertising works backwards: a weird idea arrives through inspiration and you reverse-engineer why it might work. Many see that as cheating, just as the German drug company saw Viagra as a failed angina pill. Rory's rule: don't apologise for a post-rationalisation. If it's an answer, it's an answer. This isn't a high-school maths exam where you have to show your working. Some Cambridge companies now do pharmaceutical research backwards, finding interesting compounds and seeing what they treat: post-rational rather than pre-rationalised science.

“This isn't like a high school maths exam where you have to show you're working out.”

The point: How an idea was reached matters less than whether it works.

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Don't enter the Olympics, invent a new sport

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We love comparison because it lies at the heart of self-justification. Rory would not try to win the Olympics: how likely is it, at 15, that you will become the world's best middle-distance runner? We see the winners, not the thousands who failed. Better to invent a new sport, like padel, at which you stand a reasonable chance. Playing by other people's rules is wonderful for spectators and a disaster for players; the hundredth-best tennis player lives out of their car. The exception is if you love the sport for its own sake.

“What you need to do is invent a new sport, like padel.”

The point: Competing on established terms favours a tiny few; creating a new arena improves your odds.

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Donella Meadows, the power to transcend paradigms

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Donella Meadows, the complexity and environmental thinker, ranked the ways to intervene in a system. At the bottom: twiddling numbers, parameters, buffers and delays, the measurable small stuff that gets all the attention. Most powerful is the mindset or paradigm from which the system emerges, and above all the power to transcend paradigms. Rory thinks Ogilvy did it to a degree with Dove, and that it may be less difficult than she believed. The greatest soft power is a paradigm shift: rather than change the world, change how people see it, and their behaviour changes the world.

“Rather than trying to change the world, we can change how people see the world.”

The point: Changing the frame through which people see a problem has more leverage than tuning its parameters.

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Edison dozed holding ball bearings

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Rory recalls Edison's habit: he found the state between waking and sleeping especially rich creatively, so he would doze off holding a fistful of ball bearings over a metal plate. As soon as he fell asleep they would drop and clang, waking him; he'd pick them up and return to the same half-asleep state. Rory notes this is the opposite of the clarity and articulateness people assume is the essence of thought.

The point: Some of the best thinking happens in unfocused, semi-conscious states that productivity culture ignores.

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Electrification as a Cambrian explosion

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Rory supports electric cars for a different reason from most: optionality. Whether an electric car beats a petrol one in 2025 matters to a buyer, but for policy, the internal combustion engine has limited innovation left, while electrification has unleashed a Cambrian explosion: electric scooters, cargo bikes, Citroën's tiny house-on-wheels car, the Heathrow pod, drones. Electric cars are essentially software and very reliable, so the urge to buy something eccentric like an Alfa Romeo, once suppressed by fear of breakdowns, is liberated. He bought a Lotus Eletre as a work of art.

“All the interesting things happening in ground-level transportation are a product of electrification.”

The point: Back technologies that open many future possibilities, not just those that win today's comparison.

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Entrepreneurial bravery is actually arrogance

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One simple item of entrepreneurial bravery, Rory says, is actually arrogance. He tries not to be arrogant most of the time, but there are moments when being able to believe you are right and everybody else is talking rubbish is a necessary step. It doesn't play well, because most people take their opinions from each other. Another form of bravery is the willingness to make yourself look ridiculous in serious or scientific circles.

“Being able to believe that you are right and everybody else is full of it is a necessary step to take.”

The point: Breaking from consensus requires a confidence that looks like arrogance.

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Entrepreneurs love anomalies, the Getty oil train

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Point out an anomaly to someone in a large corporation and it annoys them; point it out to an entrepreneur and they get excited, seeing arbitrage. Corporate people want to know what everyone knows, to demonstrate rightness; entrepreneurs want to know what nobody knows. Rory recalls a dramatisation about the Getty kidnapping in which the family first got rich by noticing a train struggling across a patch of desert: the struggle suggested a dome in the land, which might mean oil. Entrepreneurs live in a world of discovery, not proof.

“If you're an entrepreneur, you want to know what nobody else knows.”

The point: Trivial anomalies are the raw material of discovery for those not seeking proof.

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Everybody remarkable is weird and difficult

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Explaining why he still likes Twitter despite Elon Musk being divisive, Rory says he indulges him on the grounds that practically everybody really remarkable in human history has been weird, difficult, a pain in the arse and annoying, and that applies to the good people as well as the bad.

“Practically everybody really remarkable in human history is bloody weird, difficult, pain in the ass, annoying.”

The point: Exceptional achievement often comes packaged with difficult personalities.

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Everything is BS, but BS isn't everything

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Taking BS to mean behavioural science, Rory asks whether everything is BS. Not quite, but most things involve a heady dose of it, and many persistent problems could be solved faster by adding a psychological dimension. The converse does not hold: BS is not everything. It is necessary but not sufficient, and we should not assume every problem must be solved exclusively by behavioural science. Behavioural science without creativity, without a little whiff of the other kind of BS, may be sub-optimal.

“Everything is BS, but BS isn't everything.”

The point: Psychology should expand the solution space alongside other disciplines, not replace them.

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Fallingwater, why next to the waterfall, not over it?

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The Kaufmann family asked Frank Lloyd Wright for a house next to their favourite waterfall. He was, Rory believes, past the deadline when at the last minute he asked: why does the house need to be next to the waterfall? It could be over the waterfall. The result was Fallingwater, an extreme case of re-asking the question.

“Why does the house need to be next to the waterfall? It could be over the waterfall.”

The point: Challenging the brief's assumption can produce a radically better solution.

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Fish don't understand water, why Scots do well in advertising

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Many people in advertising are slightly off-beam: Scottish, or posh Welsh like Rory. Scots are disproportionately good at it because they are close enough to the mainstream to understand it but can detach themselves from it. Gillian Tett calls this anthropological skill anthro-vision. Just as fish don't understand water, conventionally raised middle-class people cannot see their own milieu. Rory never realised he was Welsh until he left Wales, and at English school speech days finds it all too Anglo-Saxon.

“Just as fish don't understand water, middle-class people who've been entirely conventionally brought up can't see the water.”

The point: Being slightly outside a culture gives the detachment needed to see and use its rules.

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Forgot the milk, won the lottery

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Metrics of success should not be entirely fixed. If you set out to succeed one way and instead succeed massively in an unanticipated way, that is not a failure. If you go out to buy milk, forget the milk but buy a lottery ticket and win half a million pounds, that is not a bad day. The finance department, however, would say: sorry, your only metric is milk acquisition, so we must mark this a total failure.

“If you go out to buy milk, you forget to buy milk, but you buy a lottery ticket and win half a million quid, that's not a bad day.”

The point: Rigid success metrics misclassify unanticipated successes as failures.

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France is wonderful until day three

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Rory asks whether there is any country you would rather live in gastronomically than the UK, and doubts there is. Because Britain lacked a dominant food culture, it borrowed from everywhere, which makes for a more interesting food ecosystem. France is wonderful for the first couple of days, but by day three you find yourself asking whether you could just have a curry.

“France is wonderful for days one or two, but on day three you go, can I just have a curry?”

The point: A weak native tradition can be an advantage because it leaves room to absorb ideas from everywhere.

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Go to two extremes, not one average

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Optimising one or two dimensions does not necessarily resolve a contradiction. Another TRIZ-style move is to go to two extremes rather than one average. Don't produce a mid-priced vacuum cleaner: either produce an insanely cheap one by changing the rules or, like Dyson, an insanely expensive one.

“Don't produce a mid-priced vacuum cleaner.”

The point: The middle of a market is often the weakest position; polarised offers resolve trade-offs.

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Good maths is knowing which maths to use

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Rory, who admits he is no mathematician, sees a similarity between really good mathematics, such as Ole Peters' work, and advertising creativity. Solving a problem is not about being brilliant at maths but about knowing which kind of maths to use. A problem that seems almost impossible can become very easy if you reframe it. Facts are rarely universal truths; they depend on how data is collected, as snapshots or as time series.

“It's not about being brilliant at maths. It's about knowing which kind of maths to use.”

The point: Reframing a problem is often more powerful than applying more effort within the original frame.

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Having kids is a stupid idea, until you have them

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Ask a single person what they enjoy and they will say disposable income, late nights, parties and exotic holidays. By that measure, having children is a really stupid idea. Except that once you have kids, your preferences change so that picking them up from school is more rewarding than an evening at Studio 54. We are not the same person after we have done some things, so asking people whether they, as they are now, want something narrows the solution set dangerously.

“Many, many things we do, we're not the same person after we've done them.”

The point: Testing ideas only against current preferences reduces exposure to upside discovery.

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Humour as an evolved problem-solving tool

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Following John Ralston Saul's argument that the West has given reason an exaggerated supremacy over intuition and creativity, Rory adds humour to the list of neglected human faculties. Humour is a problem-solving mechanism. Anyone with children notices how quickly their sense of humour develops: you can make a small child laugh before it can speak, which suggests something evolutionarily important is going on that deserves more investigation.

“You can actually make a small child laugh before they can speak.”

The point: Non-rational faculties like humour and intuition are evolved problem-solving tools, not distractions from reason.

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Humour as correction without threat

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Rory says he and his team tend to think backwards, and humour helps. Humour may be an evolutionary necessity: if you think backwards, 5 per cent of the time you are a genius and the other 95 per cent you are irritating. The benign violation lets you advance an opposing frame of reference to a group without it threatening their confirmation bias, a form of correction without threat. He worries about taking comedy off air, like a 1970s Fawlty Towers episode that was already satirising prejudice, and about a cult of humourless signalling of intensity.

“Five per cent of the time you're a genius; the other 95 per cent of the time you're kind of irritating.”

The point: Humour lets new or contrary ideas into a group without triggering defensiveness.

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I am not the Emperor Augustus

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Rory finds AI models extraordinary and fascinating, but says he is not the Emperor Augustus: never in the last 30 years has he sat down and thought that what he really wanted was a scribe. What would make his life easier is something more like a helpful mate to chat things through with. The technology has been shaped by the urge to impress peers rather than by asking what people actually need.

“I'm not the Emperor Augustus. Never in the last 30 years have I ever sat down and thought, what I really want is a scribe.”

The point: Capability is not usefulness; AI products need to start from what humans actually want help with.

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Iain Dale should have stood in Tonbridge

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When LBC's Iain Dale stood as Conservative candidate for Tunbridge Wells, it emerged he had said negative things about the town. Rory's creative solution: swap constituencies and stand in Tonbridge next door, where making hatred of Tunbridge Wells the central plank of your campaign would win a landslide. There is a huge creative opportunity cost in trying to be right; often the way to solve a problem is to be interestingly less wrong.

“Quite often the way to solve a problem is just to be interestingly less wrong.”

The point: Reframing the context can turn a liability into an asset.

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Idleness correlates with ingenuity

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Responding to the old military line that stupid, energetic people are the most dangerous while clever, lazy people rank highly, Rory says laziness is not disconnected from creativity. The lazy person would rather sit and think of an easier way to do something than plough on and solve the problem by brute force, so there is probably some correlation between idleness and ingenuity.

“There probably is some sort of correlation in people between idleness and ingenuity.”

The point: Reluctance to use brute force pushes people towards cleverer, cheaper solutions.

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Imagine the business case for denim

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Rory, who owns no denim, imagines pitching it: an impractical heavy workwear fabric, hot and sweaty in summer, fades badly, hard to maintain, popular mainly with indigent Californian workmen, and we predict it will be the great fabric of the 20th century. A Soviet system would never produce denim because it has no way to reward things whose popularity nobody can explain. Or pitch Wikipedia to investors, ending: and the best thing of all is people are going to write the whole thing for free.

“And the best thing of all is people are going to write the whole thing for free.”

The point: Hugely successful things often fail any upfront logical business case.

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In defence of airport books

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Purists criticise behavioural science for spawning airport literature, Rory's own included. He disagrees: the second-best thing we can do with behavioural science is practise it, the best is to disseminate it. Even if a slight misunderstanding of the literature leads someone to attempt something they otherwise wouldn't have tried, under the right testing conditions the effect is probably net positive, because it broadens people's conception of what value might mean.

“The second best thing we can do with behavioural science is practise it. The most valuable thing we can do is disseminate it.”

The point: Popularisation that prompts more experimentation does more good than purity protects.

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In memory of Rory, who could never find anywhere to sit here

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In Deal on the Kent coast, the commemorative benches along the seafront could seat more than the town's population, while London Bridge station, which cost about 750 million pounds, has nowhere to sit. Rory spotted the feedback loop: benches say 'in memory of Uncle Bob, who loved sitting in this spot', which means there was already somewhere to sit. Places with no seating never get loved, so never get benches. His children have instructions to put a bench on platform 5 at London Bridge reading 'in memory of Rory Sutherland, who could never find anywhere to sit here'.

“In memory of Rory Sutherland, who could never find anywhere to sit here.”

The point: You can only solve problems once you spot the asymmetries that a system's own feedback loops create.

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Is there much more of this?

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Rory loves the image of A. A. Gill, famously dyslexic, dictating his immortal prose by phone to The Times copy-takers, as journalists did before laptops. At the end of a paragraph the copy-taker would ask: 'Is there much more of this?' You can be that good and still, as with no man being a hero to his valet, have the functionary going 'yeah, okay'. He also cites Gill's book Pour Me: never call an alcoholic or addict lazy, because maintaining the habit takes extraordinary work and ingenuity.

“Is there much more of this?”

The point: Brilliance is invisible to those processing it as routine work.

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It's the carjacking capital of the world, so take the train

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At an Ogilvy training course in South Africa with Neil French in the early 2000s, creatives had to advertise for the tourist board when crime was through the roof. The advice was don't mention crime: reassurance only creates fear. A young copywriter from Chicago ran straight at it. He found a super-luxurious rail hotel, like the Orient Express, crossing the Karoo, showed its lavish interior and wrote: it's the carjacking capital of the world, so take the train. Rory and French instantly recognised him as one of their tribe.

“It's the carjacking capital of the world, so take the train.”

The point: Confronting the awkward fact head on can turn it into the persuasive reason to act.

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It's time we lost our sense of proportion

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Willy Brandt supposedly said God gave the Germans every virtue except a sense of proportion. Rory is a fan of losing it. Numbers dangerously suggest that all things have a linear relationship, but anything involving human psychology probably does not. Proportionate thinking assumes big change needs big inputs; marketing's glory is that small interventions can have enormous effects. If boards view their business purely in numerical and financial terms, they miss a huge area where value resides and can be created or destroyed.

“It's time we lost our sense of proportion.”

The point: Abandon the assumption that effects are proportional to inputs; human behaviour rewards disproportionate, small interventions.

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Kahneman, change how people gossip about decisions

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When Rory first met Daniel Kahneman in 2009, Kahneman said he had no hope of making human behaviour more rational. What he did hope was to change how people gossip, so they would say things like 'I'm going on holiday, but I wonder if it's sunk cost bias because I've already paid the deposit'. Rory's version: if we change the way people discuss problems, so that opening them up to other fields and variables is a positive rather than a disruption, we have made 90 per cent of the progress.

“If we can simply change how people gossip, we've won.”

The point: Better decisions come less from fixing individuals than from changing the shared language used to discuss choices.

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Live video as an unexplored fundraising tool

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Rory suggests real-time video, via Zoom or live streaming, perhaps with influencers, is an unexplored area in charity fundraising. The live nature of something changes how we process it psychologically. Imagine going in real time to a school damaged by bombing or an earthquake and saying, let's see how much we can give this man who wants to repair it, with everyone watching the money arrive together.

“The very live nature of something fundamentally changes psychologically how we process the information.”

The point: Immediacy and visible collective giving make an appeal feel concrete and urgent.

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Make stupid suggestions and still get promoted

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Rory says the most vital thing in an advertising agency is a culture where it is acceptable to fail or be silly. You need an environment in which people can make stupid suggestions and still get promoted, because that is the only way enough ideas get aired for some to be good.

“Creating a culture in which you can make stupid suggestions and still get promoted.”

The point: Idea generation depends on removing the career penalty for being wrong or silly.

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Maker time, day three produced 8,000 words

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Rory cites Paul Graham's one-page essay 'Maker's Schedule, Manager's Schedule': to a manager, a 20-minute meeting mid-afternoon is just 20 minutes, but to a maker it destroys the whole afternoon. Writing his book, Rory found that when he blocked out three days, the relationship between time and productivity was completely non-linear: day one he wrote nothing, day two a little, and day three he produced 8,000 words. Flexible working could let us re-partition time, perhaps making Wednesdays sociable and Fridays secluded.

“Day one you wrote nothing, day two you wrote a little, and day three you produced eight thousand words.”

The point: Creative output depends on long unbroken stretches of time, so small interruptions cost far more than they appear to.

Sources (1)

Matching donations turns $200,000 into $400,000

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If you are rich and want to give to charity, the logical answer is to give the money, and nobody will criticise you. Or you can announce that you will match donations up to $200,000. Now you have not given $200,000; you have given $400,000. The logical answer is fine, Rory says, but it is not magical.

“You haven't given $200,000. You've given $400,000.”

The point: Reframing how something is given can multiply its effect at no extra cost.

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Maths is valuable for reframing, not arithmetic

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Though a classicist, Rory found about half his university friends were mathematicians, partly because they had the most free time: you can either do maths or you can't. He supports teaching maths to 18, and philosophy and decision-making too, but thinks maths is valuable for reasons that have little to do with numbers. Mathematicians solve problems by redefining, reframing or changing the frame of comparison; some geometry problems are insoluble until you draw two parallel lines, then obvious. Computers do the calculation; the problem-solving skills are priceless.

“Maths is more valuable for its encouragement of problem-solving skills than for its teaching of numerical skills.”

The point: The real transferable skill is reframing a problem until it becomes solvable.

Sources (1)

McKinsey would have proposed a metro; someone built the High Line

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WPP chief executive Mark Read wrote that if you had asked McKinsey to regenerate Manhattan's Lower West Side, they would have proposed a new metro line costing five billion. Someone else came up with the High Line, turning a derelict elevated railway into a park and walkway. Once you define it as a transport problem you go down transport metrics: speed, efficiency, capacity. There is no metric for loveliness, no SI unit for perception. Just make the area gorgeous and you solve it without transport investment.

“There isn't a metric for loveliness.”

The point: How you define a problem determines which metrics and solutions you can see.

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Model the not-cars

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A mathematical logician called David Griffiths turned up, nobody knows why, at a traffic modelling conference. As everyone discussed how to model traffic jams, he raised his hand and said it might be better to model the not-cars. Each car carries a lot of data; modelling the gaps is simpler, because there are fewer gaps than cars, and may reveal things about jams that looking at cars never would. Rory says that is what behavioural science is about: looking at the not-cars.

“When you are modelling a traffic jam it might be better to model the not-cars.”

The point: Looking at the negative space of a problem can reveal what the obvious framing hides.

Sources (1)

Mozart creatives and Beethoven creatives

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There are two kinds of chef, Rory suspects, as there are two kinds of art director or copywriter: the Mozart and the Beethoven. Mozart was a natural talent who could compose almost on the fly; Beethoven had deep wells that needed more drilling. Shakespeare reputedly wrote without blotting a word. Neither type is more talented: talent is only worth judging by its output. Rossini, by contrast, got rich enough that he largely stopped bothering.

“It's only really worth judging talent by its output.”

The point: Different creative working styles can be equally valuable; judge by results.

Sources (1)

Nashville hot chicken began as revenge

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Prince's Hot Chicken in Nashville began when the original owner, a womaniser and drunk, kept staying out late. His furious girlfriend left him a meal of insanely over-spiced chicken as revenge. He came home drunk and thought it was absolutely delicious. The whole restaurant, and the Nashville hot chicken style, was built on a dish created as punishment, because when you are drunk that is exactly what you want.

“The entire premise of the restaurant was built around this thing which was created as a revenge dish.”

The point: Accidents and unintended uses can produce successful products no planner would design.

Sources (1)

No hotel offers a monitor

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Playing the reverse benchmarking game with hotels, Rory notes that he has stayed in many, swanky and cheap, and fans of Moxy and CitizenM, yet not one has ever offered, even for money, a monitor in the room. He spends more time working in his room than watching TV, and being old and long-sighted would love a 34-inch monitor with a USB-C cable. Nobody has done it simply because nobody has thought of it.

“All it is is that nobody's thought of it.”

The point: Obvious unmet needs persist because whole industries copy each other's assumptions.

Sources (1)

Norwegian slow TV and the firewood scandal

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Norway's state broadcaster, on its second channel, experimented early with slow TV, including about 24 hours devoted to wood: much of it showing wood burning, then people chopping and stacking it. It caused a scandal, because whether you stack firewood bark up or bark down is a polarising, Marmite issue in Norway. Rory loves it as a broadcaster questioning the one thing everyone treated as a given, the time length. His brother-in-law, a BBC detective drama writer, says few writers can fill two hours without ad breaks.

“Whether you store firewood bark up or bark down is one of those weird polarising Marmite things in Norway.”

The point: Question the format constraints everyone takes for granted.

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Objectively similar, subjectively different

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Rory's advice in one admittedly awkward sentence: marketers should look for things that are objectively similar but subjectively different, where the same thing can be made ten times cooler by presenting it differently, or subjectively similar but objectively different, where a cheaper thing achieves the same effect as an expensive one. He ends the talk on it: that gap is where to look for 10x gains.

“Look for things that are either objectively similar but subjectively different, or subjectively similar but objectively different.”

The point: The cheapest big wins live in the gap between objective reality and subjective experience.

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Obvious Adams solves problems by noticing

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Rory's favourite book, readable in about five minutes, is Robert Updegraff's Obvious Adams from 1916, one of David Ogilvy's favourites too. It seems hokey but is profound: an advertising man solves business problems simply by noticing things that seem obvious once pointed out. They stay hidden because business's need to maintain the pretence of rational, sequential thought closes off many possible avenues.

“Things which are seemingly obvious in retrospect once you point them out, but which are completely hidden from people.”

The point: Insight often comes from plain observation that formal reasoning processes filter out.

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Ogilvy only had five big ideas

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Rory blames Meta, Google and consulting firms, comfortable with and enriched by efficiency optimisation, for distorting marketing into chasing 3% improvements at the bottom of the funnel rather than billion-dollar discoveries such as the Pumpkin Spice Latte or Share a Coke. David Ogilvy said he had only five big ideas in his life, so presumably the finance department should have been furious with him for 30 of his 35 years. There is no proportionality between effort and value: marketing is treasure hunting, not mining.

“Trying to make it look like iron mining when really what you're doing is treasure hunting is a perversion of what marketing should be.”

The point: Creative value comes in rare big discoveries, so judging it by steady effort and output misreads it.

Sources (1)

One plug adapter and an extension lead

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There are more good ideas we can post-rationalise than good ideas we can pre-rationalise. For years Rory travelled with about 15 plug adapters, several for each country, to charge two phones and a laptop. It took him ten years to realise that one universal adapter plus a three-gang extension cable caters for everywhere, and you don't have to unplug the hotel lamp or television to charge your laptop. Obvious in retrospect.

“There are just more good ideas that we can post-rationalise than good ideas we can pre-rationalise.”

The point: Many good ideas are only obvious after the fact, so insisting on prior justification loses them.

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Only invest in ideas with an element of stupidity

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Rory cites a Silicon Valley investor who will only invest in something if it has an element of stupidity, some component that seems a bit ridiculous. From TikTok to Red Bull, and in government policy too, breakthrough innovations often contain something slightly ludicrous. The fact that they seem ludicrous explains why nobody has tried them before. Also, the logical ideas have all been tried.

“The fact that they seem slightly ludicrous explains why no one's tried them before.”

The point: Apparent absurdity is evidence that an idea is unexplored territory.

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Only one chicken, only one reason

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Rory calls 'why did the chicken cross the road?' the oldest question in behavioural science, and notes it contains two hidden assumptions: that there is only one chicken and only one reason. Every time we ask why, we should consider that there is more than one reason, more than one chicken, and that the chickens may not all have the same reason. Do that and you escape the tyranny of averages, and new sunlit uplands of creative possibility emerge.

“There's more than one reason and there's more than one chicken, and maybe the chickens don't all have the same reason.”

The point: Assuming a single cause shared by everyone hides the varied motives that offer new solutions.

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Paving the cow paths

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Rory borrows an architectural idea from a book he had just downloaded: don't lay paths across a grass court in advance. Wait to see where people naturally walk, then put concrete where the muddy tracks have formed. Designing paths up front relies on assumptions about where people want to go that you cannot know. Likewise, if choices feel instinctively comfortable, lots of people make them; if they feel contrary to instinct, people find them off-putting.

“Paving the cow paths.”

The point: Observe what people instinctively do and design around it, rather than imposing assumed behaviour.

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Premature rationalisation

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Borrowing the language of sex therapy, Rory says we have a problem with premature rationalisation: people leap to reason too soon. He loves Donald MacKinnon's description of the most creative scientists and architects as like sedate businessmen: not wacky, undisciplined artists, but people who were more relaxed and less impatient. Their relationship to time was fundamentally different.

“To borrow the language of sex therapy, we've got a problem with premature rationalisation.”

The point: Rushing to logical evaluation kills ideas before they form; creativity needs patience more than eccentricity.

Sources (1)

Put the key hook where the keys already are

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For a man who loses his house keys monthly, Rory's answer is a design solution: a key rack right inside the front door. You have to spot exactly the right moment to intervene in a behaviour. Since the keys are already in his hand as he comes through the door, hanging them on the wall needs far less behavioural change than remembering to put them somewhere in the bedroom. Keys are a System 1 thing, habitual and unthinking. If he loses them out of the house, he should stop drinking.

“You have to spot exactly the right moment at which to intervene to adopt a new behaviour.”

The point: Behaviour change works best when the new action sits at the moment the old one already happens.

Sources (1)

Reagan, I will not exploit my opponent's youth and inexperience

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Rory calls it the greatest recontextualisation in political history. In 1984 Reagan, at 73, had fumbled the first debate and advisers urged him to tackle the age issue head-on with rational argument. He told them not to worry. When the moderator asked if he could function under Cuban-missile-crisis pressure, he said he would not make age an issue: 'I am not going to exploit, for political purposes, my opponent's youth and inexperience.' One joke and the whole issue was killed. Mondale later said that was when he knew he'd lost. You can communicate things with humour you can't say straight.

“You can communicate things with humour that you can't say straight.”

The point: Reframing a weakness with wit can neutralise it far better than rebutting it.

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Reverse benchmarking, diners did choice, McDonald's did speed

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Rory loves what Will Guidara, in Unreasonable Hospitality, calls reverse benchmarking: instead of asking what your best competitors do well to copy, ask what they do slightly disappointingly that you can hit out of the park. For Guidara it was coffee and beer. Breakthroughs often do what everyone else does not quite as well, and pour resources into what they neglected. Diners offered huge choice: over easy, sunny side up, substitutions. McDonald's did the opposite, cutting choice and delivering speed.

“You ask what do they do slightly disappointingly that we can hit out of the park.”

The point: Win by excelling at what competitors neglect, not by matching their strengths.

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Reversing a trailer, tacit knowledge

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Most of what we do rests on tacit knowledge, things we know without knowing them. On Clarkson's Farm, Kaleb says of reversing a trailer through a narrow gate: I can't tell you how to do it, you just have to know. An Imperial College engineering professor would mess it up; someone who learned unconsciously does it first time. At Cambridge, Rory's college faced Marks and Spencer, which paid to reverse articulated lorries into a tiny entrance, and watching the drivers was art. Restaurateurs similarly know, without explaining, what makes a café a café.

“You can't explain how to do it, you've just got to know.”

The point: Much expertise is unconscious and cannot be captured by explicit theory.

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Rogue bees blundering towards gold

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Rory thinks it a pity that advertising confined creativity to making communications rather than defining problems. Look at problems through a behavioural, perceptual lens and the solution space gets much bigger. Francis Crick said that by blundering around they stumbled on gold, but they were looking for gold. Similarly about 20 percent of bees fly around at random, but they are looking for nectar, and when a rogue bee finds a new source it shares it with the hive. Rory's plea to the audience: if you find something, share it.

“By blundering around we stumbled on gold, but the fact remains we were looking for gold.”

The point: Purposeful randomness, plus sharing what it finds, is how new sources of value are discovered.

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Rory's other Rules of Alchemy

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Alongside the better-known rules, the book opens with several more: don't design for average; the nature of our attention affects the nature of our experience; the problem with logic is that it kills off magic; a good guess which stands up to observation is still science, and so is a lucky accident; dare to be trivial; and, finally, if there were a logical answer, we would have found it. Together they license looking for cheap, odd, non-obvious fixes to stubborn problems.

“If there were a logical answer, we would have found it.”

The point: Problems that have resisted logical solutions probably need illogical ones, so permission to be trivial, lucky or odd is valuable.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Run the London to Manchester line with famous steam engines

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This is why comedy matters: it's easier to start silly and reel it back than to start boring and push it forward. Rory's hypothetical: keep the existing tracks and spend the money recreating the world's greatest steam locomotives, so your 9:15 from Manchester is pulled by a Union Pacific Big Boy or a replica of the Mallard. It would be slower, but every tourist in London would go to Manchester just to ride the train. He also floats 'Train Twister' as a cure for overcrowding: turn proximity to strangers from annoyance into entertainment.

“It's much more easy to start silly and reel it back than it is to start boring and reel it forwards.”

The point: Deliberately absurd ideas widen the solution space and can be refined into practical ones.

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Someone should do a Dishoom for Chinese food

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Discussing why Chinese food is underrated in Britain, Rory accepts it became slightly naff through ubiquity. The landlord explains that huge menus full of unfamiliar regional dishes make it hard for newcomers; Rory sums up that the choice architecture is terrible, built for people who already know. He suggests there is probably scope for someone to do for Chinese food what Dishoom did for Indian: reinvent the experience of a familiar cuisine.

“The choice architecture is a total mess, isn't it?”

The point: A category made naff by ubiquity and confusing choice is ripe for reinvention through presentation.

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Son of Sam was caught through a parking ticket

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If you aggregate data you're probably using it for self-justification; if you look for anomalies, like a Simpson's paradox or outliers, you're using it for illumination. Cops are better than scientists because they accept an investigative phase that doesn't demand evidential value. Son of Sam was caught because someone mentioned seeing a traffic warden unusually late. It was an outside chance, but officers checked who got a ticket that night, found his car with guns visible in the footwell, and called for backup. Science publishes only the evidential phase; the 'Night Science' podcast argues the noticing matters more.

“If you're looking for anomalies, you're probably using it for illumination.”

The point: Discovery depends on chasing small anomalies that would never count as evidence.

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Stochastic tinkering versus pre-rationalised plans

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Responding to Hemingway's line that the first draft of everything is rubbish, Rory says the world is designed around rational arguments: if you can only benefit from things argued for in advance, you get a very limited solution space. Even in science, most progress is unintended or observational, what Taleb calls stochastic tinkering: rather than designing the perfect steam engine on paper, you build a pretty good one and keep fiddling to improve it. Practice informs theory. And we promote people for winning arguments, which is a poor proxy for solving problems.

“Even in science, probably the greater part of progress is unintended.”

The point: Iterating in practice beats insisting on a fully reasoned plan before acting.

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Talk to AI like you're Welsh

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One of the most important things to do with AI, says Rory, who is part Welsh, is use voice dictation and pretend you're Welsh. With search it pays to be concise: 'cheap toasters'. With AI you want to be extra verbose: I'm looking for a toaster, I'd like it brown and green, it must fit under my units, and go on a bit longer than strictly necessary. Dictating, you naturally do that, and you get far more inspired results because AI combines requirements in parallel rather than sequentially.

“Use voice dictation, pretend you're Welsh.”

The point: Rich, rambling context gets better results from AI than terse search-style queries.

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Ten engineers, ten marketers and enough drink

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Talking about Greg Jackson of Octopus Energy, Rory says that if you put ten hardcore systems engineers in a room with ten marketers, with enough drink flowing that they build a rapport and respect each other, half the world's problems would be solved quickly. Many problems are a weird mix of engineering and psychology. He adds that marketers err by justifying themselves in the language of finance; the real value of marketing is philosophical, a new outlook that opens up new ways of solving problems.

“The value of marketing is not what we do, it is how we think.”

The point: Hard problems usually need engineering and psychology together, and marketing's worth is its way of seeing.

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Test one thing or test everything

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Asked how he got good at this, Rory says his one trick is probably ADHD: he is not interested in the middle of things, only in deep philosophical questions and in trivia. In complex systems you can either tinker with details and get surprisingly valuable responses, or invent a new paradigm. It mirrors the direct response rule from Claude Hopkins's era: test either a single word or a completely different advertisement. Test five things at once and you cannot tell which one made the difference.

“You either test one thing or you test everything.”

The point: The big payoffs lie at the extremes: tiny details or whole new paradigms, not the middle.

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The Beatles didn't wait for a brief about a submarine

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Rory predicts a successful agency in 2035 will spend 30 per cent of its time answering briefs and 70 per cent proactively finding problems to solve, because AI makes execution cheap. Picasso painted his own paintings and sold them; the Beatles did not wait for someone to request a song about a submarine. Commissions make sense for Fabergé eggs, where gold and craftsmanship are costly, but Wedgwood made plates from cheap clay at scale. Cannes should stop being a retrospective awards festival and become a trade show: 'that fried chicken ad for Latvia? $50,000.'

“The Beatles didn't wait for someone to come along and request a song about a submarine.”

The point: When production becomes cheap, creators should make work speculatively and find buyers, rather than wait for commissions.

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The coder's review of Alchemy

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The best review Rory got for Alchemy, in the Wall Street Journal, came from a coder who said the book made him realise he had two strings to his bow, not one. He used to think he had to solve every problem with code and brute force; now he saw he could also solve problems with psychology, and sometimes that was easier.

“I now realise I've got two strings to my bow, not one.”

The point: Psychology is a complementary problem-solving tool for technical people, sometimes the easier one.

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The cops' joke that flagged the Yorkshire Ripper

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Advertising works more like detective work than science: act on a hunch that tells you where to look. Investigating the Yorkshire Ripper, police fixated on a hoax tape's Wearside accent. Two cops interviewing men seen in red-light districts broke the ice with wives: 'Now's your chance to put your husband away for good.' About 90 per cent laughed and 10 per cent got angry. Only the Sutcliffes did neither. With his tooth gap, lorry driving and footwear matching prints, they flagged him; their boss asked if he had a Geordie accent, said no, and bollocked them. Similarly, Levi Bellfield was caught after an ex mentioned defaced magazine photos.

“Every single person they played that joke on, about 10% of them got angry and 90% laughed.”

The point: Anomalies and hunches deserve investigation even when they lack evidential weight; fixed hypotheses blind institutions.

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The cryptic crossword and the overnight test

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What taught Rory the importance of the overnight test, and of going away to distract yourself, is cryptic crosswords (apologising to Americans, who barely have them). You can stare at a clue completely bemused, then come back to it after a period of self-distraction and find the answer absolutely self-evident.

The point: Stepping away lets the unconscious solve what concentrated effort cannot.

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The failed arthritis drug that suited cancer

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Speaking to a drugs company, Rory heard that some compounds tested for autoimmune diseases like rheumatoid arthritis were appalling: they boosted the immune system, the last thing you want when it's attacking the body. They were shelved. Then someone realised that for cancer immunotherapy, a drug that strengthens the immune system is not a bug but a feature. Most decision-making is top-down, but progress is bottom-up or horizontal, and modern problems increasingly sit between specialisms, needing people who know a bit about three things.

“That's not a bug, that's a feature.”

The point: Failures in one context can be solutions in another, found by people who span specialisms.

Sources (1)

The German who reported nothing every day

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Code-breaking is very hard if you do not know what you are looking for, but much easier if messages end in 'Heil Hitler' or start with a girlfriend's name. Rory recounts a very valuable German stationed somewhere in the North African desert whom Bletchley was desperate should not be attacked. Every single day he posted exactly the same thing: nothing to report. Knowing exactly what he was saying, they only had to find the dial settings that produced it.

“Every single day he would post exactly the same thing, which was nothing to report.”

The point: Predictable routines leak information; small regularities are the key to breakthroughs.

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The hyperactive what and the lazy why

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Businesses pour energy into measuring and quantifying, assembling statistics for presentations upwards and to shareholders, but put little effort into asking what the causes might be. Rory calls this the hyperactive what and the lazy why. Once a satisfactory rational explanation appears, the brain says 'got that, move on, nothing to see here'. Yet what questions rarely generate new ideas, whereas an interesting why gets you 75 per cent of the way to a solution. Whats provide creative constraints; whys provide creative springboards. Businesses still spend 90 per cent of their time asking what.

“Whats generally provide creative constraints and whys generally create creative springboards.”

The point: Finding a new explanation for behaviour opens whole new solution spaces that more data never will.

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The interesting stuff happens at the intersections

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Rory recalls that in the 1980s it was common to ridicule hybrid degrees such as theology and film studies. He always thought the opposite: those hybrid degrees are brilliant, and one of his best colleagues studied theology and philosophy. Borrowing E. O. Wilson's idea of consilience, he argues the interesting stuff in science often happens at the intersections between disciplines, as with behavioural economics, rather than in their interiors.

“The interesting stuff in science often happens at the intersections, as with behavioural economics.”

The point: Combining disciplines yields insights that specialists inside a single field miss.

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The Kennedy assassination seen by a mortician

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For the curious 20 per cent of the population, far more things are interesting than anyone anticipated. On YouTube, Ask a Mortician describes the aftermath of the Kennedy assassination from a funeral director's view: they had to buy a coffin unexpectedly, choose a funeral home, and the agents who commandeered the hearse to take the body to Love Field had no idea how to detach the coffin. The most over-studied hours of 20th-century history gain a whole new dimension from a slightly weird point of view. James Dyson's advice applies: view the problem the wrong way round.

“A whole extra dimension appears just through adopting this slightly weird point of view.”

The point: Looking at a familiar subject from an unusual vantage point reveals what everyone else misses.

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The laws of psychology are gloriously mutable

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Asked what matters most when launching a product, Rory says the laws of conventional economics and physics can't be rewritten: you can't do anything about gravity, so confining yourself to them leaves little room for creativity. The laws of psychology, by contrast, are gloriously mutable and gameable. Look for a psychological edge or arbitrage and you're far more likely to have a breakthrough than by trying to be cheaper or faster. Have a great idea for an electricity company, but make sure you've got a pink octopus.

“The laws of psychology are gloriously mutable, gameable.”

The point: Distinctiveness is easier to win through psychology than through price or speed.

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The lorry driver with an air fryer in his cab

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Rory keeps a one-kilowatt-hour portable battery and solar panels in his car. Citing Helen Edwards's advice to look at extreme use cases to understand innovation, he describes a lorry driver who uses such a battery with a Starlink Mini on the cab roof, getting fast internet and running an air fryer at every stop. Rory realised picnics would never be the same: you could bring an espresso machine. He wonders why carmakers have not exploited the 120 kilowatt-hours under an electric motor home, enough to live off-grid for weeks.

The point: Extreme users reveal uses for a technology that mainstream customers have not yet imagined.

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The missing first diamond

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A Royal Society of Arts paper on design thinking describes a "missing first diamond": a period of comfortable messiness at the start of every brief, asking what is really going on in an open-minded, exploratory way, before assuming which tool will solve the problem. Even creative businesses skip it. A colleague pointed out that behavioural science practices struggle to win business precisely because they operate in that diamond. Put bluntly, no one has a budget for solving a problem they did not know they had.

“No one has a budget for solving a problem they didn't know they had.”

The point: Diagnosis is undervalued because budgets are allocated to known problems and predetermined solutions.

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The Quooker was born from Cup-a-Soup

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Two people at Unilever were briefed to invent instant soup and succeeded with a powder you add boiling water to. One declared the job done. The other, a Dutchman, felt only half the problem was solved, because you still had to wait for the kettle to boil. Although it was off brief, he became obsessed with producing boiling water instantly and ended up creating Quooker. Rory admits the puritan in him balks at paying nearly four figures for a fast kettle, yet he would never go back and has found new uses for instant boiling water.

The point: Pursuing the unsolved half of a problem, even off brief, can create a whole new category.

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The Stanford five-dollar envelope

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Tina Seelig, who teaches entrepreneurship at Stanford, gave students five dollars in an envelope: once opened, make as much money as you can in two hours. Almost invariably the biggest earners ignored the five dollars as an irrelevant anchor. The winning team made 650 dollars by realising their real asset was a ten-minute presentation slot before the graduating entrepreneurship class, and selling it as advertising to a headhunting firm. They walked on stage, said 'we made 650 dollars, here's an ad', and left.

“If you start with a financial frame, your solution space becomes entirely constrained.”

The point: The resource you are handed can anchor you away from the most valuable asset you have.

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The sweet spot between technology, economics and psychology

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Rory's trifecta, or sweet spot, says that whenever you try to change behaviour, a business or an economy for the better, you should give weight to three areas: technology, economics and psychology. The most interesting progress, and many of the most interesting businesses, arise where someone has all three in alignment. Things go wrong when a dominant engineering or economics culture ignores the psychological leg.

“The really interesting stuff doesn't actually happen within disciplines, it mostly happens at the intersection between them.”

The point: Solutions that combine technology, economics and psychology beat those that optimise only one.

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The toaster's a-bit-more button

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Sage once gave Rory a dual-boiler coffee machine they did not need to, so his reciprocation bias kicked in and when replacing his toaster he looked at Sage. One model has a button labelled a bit more. It serves two purposes: a crumpet not quite brown enough can get a little extra without being cremated, and toast that went cold while you wandered off can be revived. He calls such features Easter eggs, and thinks product development should be full of them.

“One of them has a button entitled just a little bit more.”

The point: Small delightful features, Easter eggs, create disproportionate affection for a product.

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The Viennetta came from a faulty machine

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Nobody asked what a scroll-work ice cream would look like. A faulty extruding machine on a wobbly ice-cream conveyor belt produced vanilla ice cream in a shape far more attractive than a slab, and someone noticed: the Wall's Viennetta. Penicillin, Viagra and the Viennetta were not found by defining the question first. Rory's definition of creativity: an answer to a question nobody has yet got round to asking. Most creative work mixes luck with inspired observation.

“Creativity is an answer to a question that no one's actually got round to asking.”

The point: Great products often come from noticing accidents, with the rationale supplied afterwards.

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Three questions, wrong things, assumptions, or the past?

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Rory always asks of a problem: are we looking at the wrong things? Are these things true or just assumptions? And just because something happened in the past, does that mean it will continue? He cites Danny Dorling's book Slowdown: UK car use was already declining before the pandemic, and the amount of stuff consumed in the UK fell around 2006 or 2007 with no loss of economic growth. We project forward as if the world were linear.

“Are these things true or are they just assumptions?”

The point: Questioning focus, assumptions and extrapolation exposes hidden errors in forecasts and plans.

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TRIZ and the gust-proof umbrella

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Rory has become interested in TRIZ, a Soviet-era innovation method devised by a patent clerk in the 1950s who was rewarded with five years in a labour camp. It treats most problems as contradictions. You want an umbrella big enough to keep off the rain, but a big umbrella in the wind wrenches you off your feet. The gust-proof umbrella resolves it with two overlapping canopies so air can escape. It makes a loud farting noise, but that beats losing the umbrella altogether.

“It does mean your umbrella makes a loud farting noise, but that's probably better than losing the thing altogether.”

The point: Innovation often comes from resolving an apparent contradiction rather than optimising one dimension.

Sources (1)

University teaches you to reduce everything to a two-body problem

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Rory says he learned none of this at university; he learned it all at Ogilvy. University teaches you to reduce every problem to a two-body problem that can be solved mathematically to a single optimal answer: pretend the problem is that simple, solve the pretend model, pat yourself on the back. Only at Ogilvy did he learn that the trick is to find a completely different variable nobody is looking at, and play around with that instead.

“Pretend the problem is that simple, solve for the pretend simplistic model and then pat yourself on the back.”

The point: Breakthroughs come from adding neglected variables, not from optimising a simplified model.

Sources (1)

Use rationality like cavalry charges

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Rory's Mad Masters course does not tell people how to do their jobs: 90% of the time, do the logical thing. He cites a phrase attributed to Whitehead that bursts of thought are not to be deployed all the time but like cavalry charges in battle, at judicious, decisive moments. The same goes for behavioural science and creativity: try to be creative about everything and you go insane. Some things must run on habit and best practice, but leave space to ask 'what if the opposite were true?'

“They are to be deployed rather like cavalry charges in battle, at judicious, decisive moments.”

The point: Save radical rethinking for decisive moments and run the rest on habit.

Sources (1)

Viagra was meant for angina

principletold in 1

No process can reliably produce an idea like the meerkat. All you can do is maximise randomness and then maximise your ability to spot significance within it, which is also how most science works: nobody was intending penicillin, and Viagra was meant to cure angina. You need a framework of order, but the complete elimination of randomness is really dangerous in the medium to long term, because that's where the really valuable stuff comes from.

“The complete elimination of randomness is really, really dangerous in the medium to long term, because that's where the really valuable stuff comes from.”

The point: Breakthroughs come from generating variety and recognising the lucky accident.

Sources (1)

Walmart shopping and TJ Maxx life

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Lidl and Aldi's middle aisle, where you go in for milk and leave with a wetsuit and a paddleboard, reveals a philosophical truth. A successful life or business needs two modes. Walmart shopping: know what you want and pursue it efficiently. TJ Maxx life: swan around hoping to get lucky. Friends complain they went to TJ Maxx for a yellow cardigan and found nothing; you idiot, you go in like a shark. Taleb calls it increasing your exposure to positive optionality. That's also why fame pays: strangers bring you business.

“You don't go into TJ Maxx looking for something specific. You go in like a shark.”

The point: Balance efficient pursuit of known goals with undirected exploration that creates chances to get lucky.

Sources (1)

We suffer from a singularity of viewpoint, not a lack of intelligence

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Rory endorses Matthew Syed's point that society suffers not from a lack of intelligence but from a singularity of viewpoint: all the intelligence is directed at the same focus. Economics courses, business schools, MBAs and McKinsey compound the problem by having lots of highly intelligent people looking at exactly the same thing. Globalisation means more people see the world the same way, for too long.

The point: Diversity of perspective matters more than raw intelligence for solving problems.

Sources (1)

What does slow AI look like?

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Rory ends with a question: we assume our interactions with AI should be instantaneous, but are we sure? It might be more useful to ask an AI to send you ideas for holidays in Greece over the next three or four months, so you can see options, refine them, mull them over and discuss them, rather than decide immediately. Along with Hartmut Rosa, he thinks there are things we should deliberately slow down, for our sanity and our productivity.

“What does slow AI look like?”

The point: Optimisation assumes faster is always better, but some decisions improve with deliberate slowness.

Sources (1)

What if the Ripper doesn't have a Geordie accent?

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Creativity and logic are not opposites but two strings to your bow, used in parallel. One of the most important questions in a police investigation or in science is: what if we are proceeding on an incorrect assumption? What if this person didn't do it? What if the Yorkshire Ripper doesn't have a Geordie accent? What if, as some statisticians argue in a current UK case of a nurse convicted of murders on a neonatal ward, no crimes were committed at all? What if is a creative question, what Charles Sanders Peirce called abductive inference.

“The question what if is fundamentally a creative question.”

The point: Deliberately questioning the governing assumption is a creative act that logic alone does not perform.

Sources (1)

When everyone zigs, zag

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The best advice Rory received came from a university friend, a mature student who had organised the Isle of Wight festivals: when everyone else zigs, zag. BBH later made it its slogan, and everyone thought it invented it. We are a herd species, but big gains never come from pursuing the same metrics of success as everyone else. Define success for yourself, or you will judge it by comparison with your school and university peers. Going further back, Montaigne: your own happiness is too important to outsource to someone else's values.

“When everybody else zigs, zag.”

The point: Outsized gains, and personal contentment, come from refusing to adopt everyone else's measures of success.

Sources (1)

Why buy the wedding dress but rent the tuxedo?

exampletold in 1

Asked how he finds insights, Rory says it helps to have the mind of a naturalist. He cites Robert H. Frank's The Economic Naturalist, which asks students to explain anomalies, as Darwin did with finches' beaks or the peacock's tail. One of Frank's great questions: why do people buy a wedding dress they will wear once, while men rent tuxedos they might wear 50 or 60 times in a life? Rory admits he does not fully know the answer; the point is to hunt for such anomalies and work out what underlies them.

The point: Behavioural anomalies are clues to hidden motives and worth collecting like a naturalist.

Sources (1)

Why the slightly autistic make good social scientists

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Cognitive diversity brings surprises. There's a fine line between OCD and creativity, so how healthy is it that we are effectively medicating creativity? People slightly on the autism spectrum make very good social scientists, because what is instinctive to neurotypical people they must work out from first principles, giving them heightened rather than weakened understanding of social interaction. Advertising has many neurodiverse people and dyslexic creatives, and at one point, at the height of its success, most of Tesco's board were reportedly dyslexic.

“How healthy is it that we're effectively medicating creativity?”

The point: Apparent cognitive deficits can give people analytical advantages others lack.

Sources (1)

Win by finding what competitors assume is true but isn't

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Businesses fall in love with their models and start using them where they do not apply, which is a great competitive weakness. The way to win, Rory says, is to find out something your competitor assumes is true that isn't. Take something everybody assumes is true and pretend the opposite. That is the opportunity for innovation and experimentation.

“The way to win in business is to find out something your competitor assumes is true that isn't.”

The point: Shared false assumptions in a market are the richest source of advantage.

Sources (1)

Wong Kei and the opposite of a good idea

exampletold in 1

Rory calls the famously rude Wong Kei restaurant in London's Chinatown his perfect example of the principle that the opposite of a good idea can be another good idea: the opposite of where the mainstream market sits often provides an opportunity. Being so rude becomes the distinguishing feature, like theatre. But framing is essential: told in advance what to expect, it is one of the funniest experiences of your life; turn up expecting the Marriott and it is awful. His tip: ask for a knife and fork instead of chopsticks, which drives them practically insane.

“Usually the opposite of where the mainstream market is actually provides you with an opportunity.”

The point: Deliberately reversing a category norm can create a distinctive offer, if customers are primed to expect it.

Sources (1)

You can only find truth with logic if you've found it without

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Rory echoes the line that you can only find truth with logic if you have already found it without it. Many great discoveries come by accident, intuition, hunch or instinct; we try them, they succeed, and we post-rationalise them, but logic played no decisive part in finding them. He calls standard economic theory and literal market research the two broken binoculars of business decision-making.

“You can only find truth with logic if you've already found truth without it.”

The point: Logic validates discoveries after the fact; it rarely produces them.

Sources (1)

Perception, context and framing 221

Von Mises, the cook and the man who sweeps the floor

analogytold in 16

Rory's hero Ludwig von Mises, of the Austrian School that treated value as entirely subjective, said there is no sensible distinction in a restaurant between the value created by the man who cooks the food and the man who sweeps the floor. One produces the primary good; the other creates the context, mood and mental state in which it can be enjoyed. Rory reads the cook as manufacturing and the sweeper as marketing. Serve Michelin-starred food in a restaurant that smells slightly of sewage and nobody will enjoy the meal. There are two ways to improve that restaurant: make the food even better, or get rid of the smell. Because we believe the objective thing is what matters, we keep improving the food.

“There's no sensible distinction to be made in a restaurant between the value created by the man who cooks the food and the man who sweeps the floor.”

The point: Context-creating work is part of a product's value, not overhead, and fixing the context can add more value than improving the product.

Variants: Sometimes told without von Mises as the bare sewage example, with the punchline 'No, get rid of the smell.' Other tellings add a bent fork tine or surly service, contrast the French physiocrats who thought only land created real value, or frame the meal as the food multiplied by the setting and expectation.

Sources (16)

The Overground, infrastructure made of ink and pixels

exampletold in 15

Most of the London Overground already existed as Silverlink Metro, branded like a mainline railway, and almost nobody used it; Rory once rode it from Stratford to Richmond as the only passenger. Londoners think the Tube map is a map of London: a British Rail logo means 'for leaving London', the roundel means 'for me'. Transport for London spent about £200 million on trains, lighting, stations and a few miles of track, then pretended it was a Tube line, coloured it orange and put it on the map. Usage rose about 400 per cent almost at once, and it now carries as many people as the £20 billion Elizabeth line. In 1989, wanting to live in Peckham because it was handy for Shoreditch would have got you committed.

“It's £20 billion worth of infrastructure that was mostly created with pixels and ink.”

The point: Making something mentally available can create as much value as building it, often for a fraction of the cost.

Variants: The value created varies by telling: £3 billion, £6 to £8 billion or £20 billion; the usage jump is fourfold, tripled on day one, or 400 per cent in a month. One version frames it as bottom-up thinking against Crossrail's top-down tunnel; another as the brain's inability to use two maps at once.

Sources (15)

The pilot who made the bus good news

storytold in 13

Everyone knows the sinking feeling when the plane stops a mile from the terminal: it's going to be a bus, and you feel cheated of your air bridge. Landing at Gatwick on easyJet, Rory heard the pilot announce bad news and good news. The bad news: a plane was blocking the gate, so no air bridge. The good news: the bus would take them all the way to passport control, so they would not have far to walk with their bags. That is always true of the bus, but nobody had ever pointed it out. He had rebranded the bus from an inconvenience into a conveyance, sparing a trudge past 20 Toblerone stands. Rory urges you to say it loudly next time: you synthesise happiness in everyone within earshot.

“The good news is that the bus will take you all the way to passport control.”

The point: Redirecting attention to a genuine but unmentioned benefit can turn a grievance into a positive at no cost.

Variants: One telling makes it a British Airways pilot and 'right next to immigration'. Rory sometimes adds that if a BMW 7 Series collected you from the plane you would think it marvellous, and draws the moral that marketing is multiplied value, not added value.

Sources (13)

Range anxiety, increase range, or reduce anxiety

exampletold in 10

Range anxiety contains two words: range, a matter of physics and battery density, and anxiety, a matter of psychology. The world spends hundreds of billions on the first and almost nothing on the second, which is far cheaper to fix. Rory learnt how irrational it is driving his Lotus back from Wales: the gauge hit 16 per cent, went amber, and he was white-knuckled, though he still had 55 miles. His wife's electric Mini shows 55 miles as 55 per cent and they drive around without a care. So stop showing every 1 per cent drop: say '80 per cent plus', as old petrol gauges showed quarters. And make chargers visible: petrol stations evolved like peacocks, while chargers hide behind industrial estates.

“Maybe the solution isn't more lithium. It's more neon.”

The point: Before spending billions on a technological fix, ask whether the problem can be solved more cheaply in the head.

Variants: The figures shift (50, 55, 56 or 58 miles at 16 per cent). Rory adds that bigger batteries may feed the anxiety, since a 1,500-mile car would show 150 miles as 10 per cent, and that oversized batteries serve perhaps 2 per cent of journeys. Another fix: a CarPlay panel listing nearby rapid chargers.

Sources (10)

Red or white, how restaurants make you drink wine

exampletold in 8

Restaurants love wine because nobody knows what a bottle should cost: you cannot charge £40 for a Johnnie Walker, but a six-euro bottle sells for £30 or more. So they engineer the choice while you think you are choosing. Wine glasses are already on the table, removed with a slight huff if you decline. The drinks menu is called the wine list: pages of red and white, with a crappy laminated page at the back for the deviants and perverts who want something brewed or distilled. The sheer genius is that they bring one list, to one person. Wine is the only drink a table can share, so he asks 'red or white?', and it is game over for the gin drinkers.

“The second that guy says red or white, it's game over for the gin drinkers.”

The point: Props, naming and who holds the menu quietly steer a group to the most profitable option while everyone feels they chose freely.

Variants: In a telling for Diageo, Rory adds 'still or sparkling?', which makes asking for tap water awkward. One version ends 'game over for free will'.

Sources (8)

I haven't got an 89p headache

exampletold in 7

How we perceive price, colour and taste is not objective. Painkillers are more effective when branded, and more effective still when people are told they are expensive. Nurofen sold pricier variants, for period pain or for cold and flu, that were in some cases chemically identical to the standard product, yet taking something labelled for period pain that costs a bit more will actually reduce period pain more. Painkillers work better if red; sleeping pills better if blue, except, apparently, in Italy, perhaps because blue is the colour of the Azzurri. Rory says calling this a hack is dubious: the painkiller genuinely becomes more effective. He complains you can't get expensive aspirin any more.

“I haven't got an 89p headache, I've got a £3.50 headache.”

The point: Expectations created by price, branding and colour change the real effect, so they are a legitimate source of value.

Variants: The headache price varies (49p, 79p or 89p against £3.50 or £3.90). He often pairs it with wine tasting better from a heavier bottle, and suspects the Italian explanation is itself a post-rationalisation.

Sources (7)

Moxy hotels, tiny rooms, brilliant ground floor

exampletold in 7

Moxy, a Marriott brand, reverses the normal hotel. Rooms are small, in good locations, with no room service, no laundry, sometimes just hooks instead of a wardrobe, though the bed, TV and Wi-Fi are good. The investment goes into the ground floor: a 24-hour barista and bar where you check in, meet people, take video calls and hang around for hours after checkout, like a cooler WeWork; most hotels render you homeless at 11am. Moxy told Rory that the 90 per cent of guests who understand the trade-off love it, while the 10 per cent who turn up expecting a Marriott are furious. Rory, nearly 60, loves it for a night or two, though not for a week.

“You focus people on the one thing where you're amazing and then downplay everything else.”

The point: State the trade-off upfront and over-deliver on one salient dimension, and customers will happily accept being merely adequate elsewhere.

Variants: Some tellings stress expectation management (turn up expecting the Four Seasons and you will be livid); others stress the reallocation of investment, which a procurement mind reads as a deformed hotel. CitizenM is cited as the same model, and he once went down at 3am after eye surgery to ask for a flat white.

Sources (7)

Your car drives better after it's been cleaned

exampletold in 7

Perception is leaky: we think we can separate sight, sound, smell and taste, but we cannot. The strongest example Rory knows is that your car drives better after it has been valeted. It is not just cleaner: it seems quieter, smoother, accelerates better and corners more nicely, though nothing mechanical has changed. An engineer friend was so uncomfortable with this that he invented theories about cleaning tightening the body panels; complete rubbish, says Rory, it is entirely psychological. It is also why people always clean a car before selling it. So if you want to use the McGurk effect to save money, don't buy a new car: have your existing one valeted.

“The cheapest way to get a new car is to have your existing car valeted.”

The point: Improving one sensory cue lifts perceptions of unrelated qualities, so a cheap surface fix can feel like a product upgrade.

Variants: Often listed alongside wine tasting better from a heavier bottle and branded painkillers working better. He calls the result 'a placebo car'.

Sources (7)

Your dog thinks your TV is rubbish

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A television claims a billion colours but produces only three: red, green and blue, matched to the three types of cone in human eyes. Show yellow and there are no yellow photons; red and green pixels trigger the same cone response and your brain makes yellow. It is a biological hack: a TV reproducing the whole spectrum would cost a fortune. The box never says 'optimised for higher primates', but it is. Your dog can't understand why you paid so much, and a pigeon or parrot, which sees ultraviolet, thinks it is a washed-out piece of junk. Because perception, not physics, drives behaviour, designing for how people perceive is legitimate and far cheaper.

“Your dog can't understand why you paid so much for that television.”

The point: Design for the receptors people actually have: improvements outside human perception are wasted, and working on perception is legitimate.

Variants: Rory sometimes adds that magenta does not exist in physics, coins 'innervation' for synthesising value in the head, or tells of scientists baffled that parrots ignored photographs of ripe bananas because print is calibrated for human eyes. He says economics often produces 'ultraviolet light': things economists value that humans cannot see.

Sources (7)

Judging a cassette deck by its eject button

exampletold in 6

Professor Noriaki Kano of Tokyo split product attributes into three: threshold attributes, like a milk carton that doesn't leak, which nobody praises but whose failure loses you for ever; performance attributes, like sound quality, where more is linearly better; and excitement attributes, peripheral touches that delight out of all proportion. Buying a 1980s cassette deck, you should have judged build and sound. Instead everyone pressed eject. If the door opened with a damped, counterbalanced hiss, you had to have it; if it went clack, it was obviously a piece of junk. DVD players later let you open the tray by remote control, whose only possible purpose was to show off the mechanism.

“If you pressed eject and it just went clack, that was obviously a piece of crap.”

The point: Small, functionally irrelevant delighters can decide a purchase, yet they are the first thing a cost-cutter removes.

Variants: Rory links it to the DoubleTree cookie, arresting precisely because it is unnecessary, and to Chinese buyers who love the in-car gimmickry that European carmakers strip out.

Sources (6)

Royal Mail's brand is your postie

storytold in 6

Royal Mail spent a fortune improving efficiency and next-day reliability, then found no correlation between objective service in an area and how much people liked it. Some districts with superb delivery were indifferent; some with ropey service loved it. Alex Batchelor, then marketing director, tested a hunch: the leading determinant was whether people liked their postie. FedEx-level efficiency with a miserable postie and nobody liked Royal Mail; a sporadic service from a postie who said 'I knew you were on holiday, so I left it in the back porch' and it was the best organisation in the world. We have no evolved skill at judging postal logistics, but half a million years of judging whom to like and trust.

“A personal experience at a timely moment trumps anything you can do in advertising.”

The point: Find the proxy customers actually judge you by before spending on the metric the business thinks matters.

Variants: Rory's follow-ons: send the grumpiest 5 per cent of posties to charm school; move 10 to 20 per cent of marketing budget into the call centre and pay the best staff six figures; expect human discretion to grow more valuable as AI spreads.

Sources (6)

Eighteen white pills and six blue ones

exampletold in 5

If you want people to finish a course of antibiotics, and so avoid resistant bacteria, Rory says, don't give them 24 white pills. Give them 18 white pills and six blue ones, and tell them that when the white ones run out they should take the blue ones. The pills can be chemically identical, but more people will reach the end of the course, because a sequence that comes in stages, with a milestone in the middle, creates a sense of progress. It is the same psychology as a software loading bar: if something appears to be happening, we wait. It does not appear to make sense, which is part of its value. Rory offers it as his own, untested idea.

“Don't give them 24 white pills; give them 18 white pills and six blue ones.”

The point: Breaking a task into visible stages with a midpoint makes completion more likely, without anyone needing to know why.

Variants: One telling makes it 20 white and four blue. Gmail is cited as a version: it shows only unread mail, so you plough through 12, then find 23 more.

Sources (5)

Holiday in Wales, full of pleasant surprises

quiptold in 5

Joking that he is sponsored by the Welsh Tourist Board, Rory says that if you are English the best place to holiday is Wales, because you all think it is going to be a bit rubbish, and then it isn't. You expect not to find a latte or anything decent to eat, and discover a culinary mecca. In the unremarkable café at Cwmbran station, a Turkish-Welsh man turned out to be the god of panini making. According to Kahneman and other happiness researchers, what makes us happy is things slightly better than we expected. So optimise for pleasant surprises. A world where everything is perfect, like Singapore, where a train three minutes late triggers meltdown, leaves no room for them.

“All of you think it's going to be a bit shit and then it isn't.”

The point: Experience is judged against expectation, so low expectations exceeded produce more delight than high expectations met.

Variants: He adds: always rent a car on holiday, because it enables lucky accidents. In a pub telling, the landlord says under-promising and over-delivering is exactly what his pub tries to do.

Sources (5)

Not the Oval Office but the press office

analogytold in 5

We are not a rational animal but a rationalising one. Rory builds on Jonathan Haidt's image of the mind as a rider on an elephant: the elephant, wise, cautious and habitual, makes most decisions and cannot talk; the rider can do maths, talks a lot, and deludedly thinks he is in control. Rory's version: the conscious brain thinks it is the Oval Office, when in reality it is the press office, hastily cobbling together a plausible explanation for a decision taken somewhere else for reasons it does not fully understand. So consumers are not wilfully lying when they explain themselves, but research that only talks to the rider learns the press release, not the decision.

“The System 2 brain thinks it's the Oval Office, whereas in reality it's the press office.”

The point: Stated reasons are post-rationalisations, so work out what people feel rather than trusting what they say.

Variants: Examples vary: a firm raising prices blames raw materials because it cannot say greed; people wanted the euro first and then built the arguments for it.

Sources (5)

The feels-like temperature

analogytold in 5

Rory loves that American weather forecasts give two temperatures: the thermometer reading and the 'feels like' figure, which accounts for wind and humidity. As a self-described fat man of Celtic ancestry, he will not go to work in London at 85 degrees, yet happily strolls round Phoenix at 105, because it is a dry heat. He is not going outside to do chemistry; he needs to know what to wear. The body feels heat in proportion to the danger to health: humidity stops sweat cooling you, a breeze helps. Yet business, like the thermometer, measures whatever is numerically available and ignores how things feel.

“You should optimise for perception rather than objective reality because it's perception that determines behaviour.”

The point: Measures built around human experience predict behaviour better than objective physical ones.

Variants: He argues climate campaigners should have used a biological measure, the wet-bulb temperature at which even healthy humans cannot survive, and notes that among SI units almost only the lumen factors in human perception.

Sources (5)

A farmers' market is a deliberately inefficient Tesco Metro

exampletold in 4

Farmers' markets defy economic logic: you buy direct from the producer, cutting out the middleman, yet pay more than at Tesco. To build one, Rory says, take a Tesco Metro and make it really inefficient. Put it outdoors in the rain, make people pay in seven places for seven things and queue seven times, like the Soviet Union. And people love them. Nobody would ever state that preference; the trend meets the spoken need for lower prices and more choice, which is Tesco Extra. But every trend breeds a counter-trend, and the farmers' market meets unspoken needs: street theatre, authenticity, relational exchange, and being seen to exercise discernment.

“To construct a farmers market is you take a Tesco Metro and you make it really inefficient.”

The point: When everyone optimises for efficiency, inefficiency itself can become the product, because counter-trends serve needs people never state.

Variants: A futurologist told him there are no trends, only vectors. In one telling the same logic explains airports: they all became shopping malls, 'Bluewater with some planes', so London City, with almost nothing there, feels incredible. Another adds a heuristic: a stall selling only dips must be good or it would not last six months.

Sources (4)

Please remember to turn your phone back on

exampletold in 4

A Michelin-starred restaurant in France wanted diners off their mobile phones. Most would post a bossy notice, and nobody paying a hundred euros for dinner wants to be bossed about; people hate it so much they invent hospitalised relatives to justify an exception. Instead, at the entrance, visible to everyone arriving but ostensibly addressed to those leaving, a sign read: 'Please remember to turn your mobile phone back on when leaving the restaurant.' It looks helpful rather than bossy, and implies an established social norm: sophisticated diners here would never dream of making calls during the meal. Rory says he would not have thought of it in 20 years on a desert island.

“Please remember to turn your mobile phone back on when leaving the restaurant.”

The point: An implied social norm, disguised as helpful information for others, gets compliance without the reactance a direct order provokes.

Variants: The location shifts (near Saint-Malo, possibly Saint-Émilion). In one telling it is Paul Craven's favourite ad, and Rory's moral is that for every logical solution there is a better one when you think backwards.

Sources (4)

The brain works like a JPEG

analogytold in 4

Drawing on Andy Clark's The Experience Machine, Rory explains that the optic nerve lacks the bandwidth for raw real-time imagery, so most of what we see is internally generated prediction, with the eyes used to update what is new, unexpected or moving. A JPEG or MPEG works the same way: rather than describing every pixel, as RAW does, each pixel has an expected value based on its neighbour, and data is spent only where reality differs. Without that compression your satellite dish would need to be the size of Jodrell Bank. The brain evolved the same data architecture as your Samsung television. So the expected is invisible, and the unexpected carries enormous weight.

“The human brain evolved exactly the same data architecture as Samsung televisions did, albeit over a longer time period.”

The point: Perception is prediction corrected by surprise, so small unexpected touches outweigh large expected ones.

Variants: One telling ends that advertising is the business of creating predictions and anticipation.

Sources (4)

The McGurk effect, what we see changes what we hear

exampletold in 4

Rory plays a clip of the McGurk effect. The sound is always 'ba', but the face on screen mouths 'fa', and you hear 'fa'; close your eyes and you hear the real sound. A black box in the head decides it is more likely you misheard than misseen, and simply overwrites the sound. Borrowing George Loewenstein's phrase, he says that just as we have a sex drive and a food drive, we have a sense-making drive: evolution needs a decisive, unambiguous picture to act on, not an accurate account of each sense. This is where engineering thinking goes wrong: it assumes that to improve an experience you must improve the reality.

“Just as we have a sex drive and a food drive, we have a sense-making drive.”

The point: The senses are not independent channels, so experience can be changed through context without touching the objective thing.

Variants: One telling pairs it with a checkerboard illusion and attacks 'measurebators' who measure only the physical world.

Sources (4)

Video conferencing, poor man's air travel

exampletold in 4

Video calling is practically free and saves a fortune, yet for years it flopped. Rory's hunch is a framing error: it was sold as the poor man's air travel, not the rich man's phone call; the crap version of British Airways rather than the posh version of BT. That made it an inferior good, like margarine to butter or the pager to the mobile: what you do when you are not trusted on a plane. 'We won't send Sutherland to Frankfurt, he'll only raid the minibar, but he can have a pixelated conversation with Jürgen in the basement.' Had it been expensive and installable only in the chief executive's office, people would have been gagging to use it.

“It sold itself as the poor man's air travel, not the rich man's phone call.”

The point: Whether a substitute is framed as a downgrade or an upgrade decides whether it is adopted or stigmatised.

Variants: One telling adds practical failings (it should ring you, and the code should be a word, not 19 digits) and suggests branding it with a charity, so it reads as a choice rather than a compromise. He notes Post-it notes were marketed the expensive, exclusive way.

Sources (4)

What a dishwasher and a swimming pool are really for

quiptold in 4

Riffing with Nassim Taleb on things we value for reasons other than the ones we give, Rory argues that the principal value of a dishwasher is not that it washes your plates. It gives you somewhere to put dirty plates out of sight, sealed so you cannot smell them. The biggest annoyance when it breaks down is not having to wash up; it is having to look at the plates. Likewise, the real value of a swimming pool is not swimming. It gives you licence to walk around your garden in a bathing costume on a hot day without feeling like an idiot. Taleb took the advice and bought a house with a pool. Nobody comparing dishwashers ever factors any of this in.

“The real value of a swimming pool isn't that you swim in it. It's that it gives you a licence to walk around your garden in a bathing costume.”

The point: Products often deliver their main value through an unadvertised side benefit, so ask what a thing is really for.

Variants: Rory uses it to ask what business you are really in, and to argue that much of what capitalism does is beneficial in ways no metric captures.

Sources (4)

'Now lower fat' killed the biscuit

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One of the first problems brought to Ogilvy's behavioural science practice came from a big continental European biscuit maker. It had cut the fat in its biscuits by about 20 per cent; blind tastings showed nobody noticed any difference, yet sales had fallen by about a quarter. Without pausing, the team asked: you didn't put 'now with lower fat' on the pack, did you? Of course they had. The sense-making brain looks for trade-offs: told something is healthier, it assumes it tastes worse, so it does. And some treats need an element of guilt to be enjoyable. To improve the nation's health, they should have cut the fat and told nobody.

“If you put 'new lower fat' on something, the brain will assume it tastes worse.”

The point: Announcing a virtue can trigger an assumed trade-off, so some improvements are best made by stealth.

Variants: In one telling the biscuit is Belgian and frames a wider point: 75 per cent of consumers say they will pay more for green products, but really about 8 per cent do, and many assume a green detergent will not clean well.

Sources (3)

Bad reviews that start with the mother-in-law's birthday

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A remarkable number of scathing one-star TripAdvisor reviews begin: 'We had booked a table for my mother-in-law's birthday.' Rory reconstructs the scene. The man never wanted to go out; he would rather be in his pants watching the Champions League. He has been taken somewhere fancier than he would choose, he knows he will end up paying, and then he struggles to park. Then comes the litany: unfriendly service, slow food, they didn't wipe down the outside chairs. Nothing the restaurant did caused his mood, but he hunts for evidence to justify it. In other circumstances, the same restaurant would have given him a great time.

“We had booked a table for my mother-in-law's birthday.”

The point: People sincerely invent rational reasons for feelings that came from elsewhere, so stated complaints are a poor guide to their cause.

Sources (3)

Don't change the world, change how people see it

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Rory closes his talks, and describes his own job, with one idea. Engineering fixes to physical reality are expensive and slow, and quite often the best way to solve a problem is to change the way people think about it instead. Rather than trying to change the world, change how people see the world. When people see the world differently, they behave differently, and that in turn changes the world. He uses it to tie together examples such as the Overground on the Tube map, the Uber map, the feels-like temperature and range anxiety, where reframing perception achieved what physical investment could not.

“Rather than trying to change the world, change how people see the world.”

The point: Shifting perception is often the cheapest route to changing behaviour, and so to changing reality.

Sources (3)

Leave the café chairs out, even in the rain

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Rory tells cafés to leave their tables and chairs on the pavement even when it is raining. People can see them from 300 or 400 yards and know there is a café and that it is open, because a closed shop would lock its furniture away from drunks. Fold them away and people assume you are closed. The elephant does not look for a sign saying open. His local coffee shop went bust under three owners on the same road, then thrived largely because the new owner put tables and chairs outside. A reader of Alchemy used it in reverse to deter late customers: just stack two chairs upside down on a table.

“The elephant doesn't look for a sign that says open.”

The point: Small environmental cues signal availability more powerfully than explicit messages, and absent cues are read as rejection.

Variants: In one telling a shop open till 10pm hid its lights behind price posters, so nobody could tell it was open. Rory notes that tea rooms with odd hours suffer most, since customers take any clue that you are closed.

Sources (3)

Pernod only tastes good in France

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Every country has a contextual drink. Sipped in France, Pernod seems the most sophisticated drink imaginable, so you buy a large bottle to take home. The moment you pour a glass in Britain you wonder why on earth you bought it. Hungary has Unicum; the Greeks, Rory jokes, have managed Retsina, which tastes awful even in Greece. Rosé tastes better by the sea and Guinness better in Ireland, though chemically identical. This is not a freak of psychophysics: setting is part of the product. Maybe Greek restaurants with a huge picture of the Acropolis know something: Greek food tastes better if you recreate the atmosphere of Greece.

“Pernod tastes delicious in France but tastes like piss if you bring a bottle home.”

The point: Much of a product's enjoyment comes from its setting and complements, so recreating the right context can improve the product.

Variants: One telling pairs it with popcorn, which is awful without a film; another uses it to introduce contextual, location-specific communication as a nudge.

Sources (3)

Placebo times medicine equals overall effect

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A drug has a chemical effect and a placebo effect, and both aid healing. Yet drug trials are designed to subtract the placebo from the total so the chemistry can be proven in isolation, and Western pharmacology wants to distil out the chemistry and discard the psychology. Rory thinks that an enormous mistake. If both work, the most effective treatment is drug plus placebo, so why not see it as placebo times medicine equals overall effect, and research how to maximise the placebo as hard as the pharmacology? Science is uneasy because it cannot fully explain the placebo, but nobody knew how aspirin worked until recently either.

“Medicine spends all its time trying to subtract a healing effect from another healing effect.”

The point: Psychological value should be amplified alongside intrinsic value, not discounted as contamination.

Variants: One telling starts from a researcher's beta blocker that worked on 80 per cent of people against 40 per cent for the placebo, notes that Japan welcomes the placebo as part of efficacy, and adds that banning everything found by luck would have cost us penicillin. Another predicts weight loss will be solved by a drug plus a behavioural regimen.

Sources (3)

Secretly everyone wants suburbia

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Rory's accusation: deep down, everybody over about 35 wants to live in suburbia, with a bit of lawn and somewhere to park, but in Britain suburbia isn't cool. Move to Bexleyheath and your friends disown you; he could not get his younger colleagues to move to Bromley with a gun to their heads. Its image is terrible, but the actual utility of living there is fantastic: completely uncool, but utterly brilliant. That, he thinks, is why Brits love Los Angeles. Buy a glorious suburban house off Mulholland Drive and, because it is LA, it is totally cool.

“It's completely uncool, but it's utterly brilliant.”

The point: The same choice carries different status in different contexts, and changing the context can unlock a suppressed preference.

Variants: He adds that for Brits the most pointless American cities to visit are New York and San Francisco, poor attempts at a European city, while Austin, Houston, LA and Chicago offer a different life.

Sources (3)

Sorry you had to come during such weather

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To the British, if the sun is shining it is a nice day, whatever the temperature. Rory arrived in Johannesburg in their winter to a glorious, cloudless blue sky, lovelier than any British summer's day. The Ogilvy people collecting him, blowing on their hands, apologised that he had to come during such terrible weather. He burst out laughing, thinking they were joking. They were not. In a Johannesburg winter there is never a cloud for six months, so blue sky is standard issue; what they meant was that it was unusually cold, with frost overnight and two or three degrees. Good and bad weather, like price, are judged entirely by local comparison.

“I'm sorry you had to arrive during some weather.”

The point: Judgements of good and bad are relative to local expectation, so the same conditions can feel good or bad depending on the frame.

Variants: One telling adds Portuguese locals in puffer jackets while British tourists stroll in T-shirts.

Sources (3)

The frozen boiler pipe video beats Citizen Kane

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Rory, or in one telling a friend, went on YouTube to find out how to thaw a frozen boiler condensate pipe. The eight-minute video is, 99.99 per cent of the time, the most boring footage in the history of the world, almost a Monty Python idea of bad television. You would never watch it for entertainment. But at the moment your boiler exit pipe has frozen over, it is better than Citizen Kane, and no detail is irrelevant. He credits YouTube with becoming the instruction manual for millions of devices, replacing the 40-page booklet you always lost.

“When your boiler exit vent freezes over, it's better than Citizen Kane.”

The point: Value depends on the viewer's situation, so content worthless to most can be priceless to the right person at the right moment.

Variants: The film it beats changes: Citizen Kane, The Godfather Part II, or Last Year at Marienbad.

Sources (3)

The real genius of tennis is the scoring system

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Ask tennis fans what makes it so good and they will say it is fast, exciting, televisual. Rory bets not one in 500 would say the scoring system, yet that is the work of genius. Because points are grouped into games and sets, with serve held and broken, the losing player always has a route back and the match has a narrative arc, while an uneven match ends quickly. Score it like basketball and it would be unwatchable: 'Federer leads Nadal 106 points to 84', and everyone goes to the pub. Rory agrees with the basketball critic who suggested both teams start on 100 points and play the last five minutes.

“If you played tennis but you scored it like basketball, it would be unwatchable.”

The point: The structure framing an activity, often invisible to the people enjoying it, can create most of the experience.

Variants: One telling credits the insight to his friend Richard Thomason and adds that baseball tames its randomness by settling the World Series over seven games.

Sources (3)

Volkswagen's missing cup holders

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Ford's Kumar Galhotra says making a car is a hundred thousand rational decisions in search of one emotional decision. Volkswagen spent enormous sums yet for years sold amazingly few cars in the United States, about 0.5 per cent of the market by Rory's account, because German engineers refused to fit cup holders. Anyone who knows American car buying knows the number of cup holders comes second or third in the decision tree, well above cornering ability. The refusal was cultural: drive-throughs barely work in Germany, because most Germans will not allow food or drink in the car. Your car is a temple, and defiling it with a bargain bucket is unthinkable.

“If you don't win the emotional decision at the bottom, you don't sell the car.”

The point: A trivial-seeming detail that matters to the buyer's culture can outweigh a hundred rational strengths.

Sources (3)

Wagamama's 'authentic Japanese noodle bar' sentence

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At Wagamama, staff ask first-timers whether they have been before, then explain that it is based on an authentic Japanese noodle bar, so food comes fresh from the kitchen as soon as it is ready and not necessarily in the order you expect. Rory thinks that one sentence is pivotal to the chain's survival. Random order massively helps kitchen efficiency, but without the explanation half the diners would see a gyoza arrive after a vast bowl of soup and decide the staff were useless; in a French restaurant, soup at the end would be intolerable. Japanese people have told him it never happens in Japan. Claim to be Japanese and people will accept almost any weirdness.

“If you change the frame you can change judgement.”

The point: Explaining a quirk in advance, with a flattering reason, turns an operational convenience into a perceived feature.

Variants: Rory jokes that Argos's greatest tragedy is not being Japanese: a few bonsai and a pebble would make it the coolest shop in the world. He suspects ceremonial-grade matcha could have been invented by a marketer.

Sources (3)

A red cap ruins the taste of Diet Coke

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For a time Coca-Cola, possibly to save money, put red caps on Diet Coke, which had always had white or silver ones. Rory rang the agency handling Coke to tell them they were insane. After years of reaching for the silver lid, a regular Diet Coke drinker finds the red cap makes the drink almost undrinkable, and people would also assume it was the high-calorie version. He predicted they would revert within months, and they did; he suspects sales had dropped 10 or 15 per cent. We conflate taste with sight and smell because it is more efficient for the brain.

“Diet Coke with a red cap tastes disgusting. It's as extreme as that.”

The point: Visual cues are part of taste, so changing the packaging can change the product people experience.

Sources (2)

A smiling face beat a lower interest rate

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Among direct marketing experiments, Rory cites one in which putting a photo of a smiling person on the phone next to the phone number had a larger effect on loan applications than reducing the APR. He uses the idea to sum up behavioural economics: the context, medium and interface in which a choice is made can outweigh its long-term consequences, even when people know those consequences. A lender could win more sign-ups by making the application attractive than by cutting the interest rate. People unaware of such findings spend careers being logical and convincing to colleagues, and the very logic that makes them look a safe pair of hands damages the business.

“Putting a smiling face with someone on the phone next to the phone number would have a larger effect on loan applications than reducing the APR.”

The point: The design of the moment of choice can outweigh the real costs and benefits of the options.

Variants: In one telling it is a 'villainous' illustration about an attractive credit card application form rather than a tested photo.

Sources (2)

Cadbury changed the shape and people tasted a new recipe

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When Cadbury changed the shape of the individual chunks in its bars, making them rounder and more fun, it was bombarded with complaints that it had changed the recipe and the chocolate had got sweeter. The formulation had not changed at all. Rory uses it as evidence that the brain does not taste in isolation: rounder food tastes sweeter, so change the shape of something and you change its taste. That may explain why children's lollipops are round, since children want something bonkers sweet. He adds, as an aside, that the Chupa Chups logo was designed by Salvador Dalí.

“If you change the shape of something, you change the taste.”

The point: Form and presentation alter sensory experience itself, not just appeal, so a cosmetic change can read as a product change.

Sources (2)

Don't show the balance when people log in

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A bank asked Rory whether an advertising campaign could encourage online banking. He said it was easy: the last thing people want to see when they log in is their balance. He has friends who avoid their own bank's cash machines in case they show it. Why willingly expose yourself to bad news? Make 'Tell me my balance' an option rather than the default, and he reckons twice as many people would log on, three times as often. It would cost about 50 quid, yet it never happens. He calls it one of his most banal pieces of advice to banks.

“The last thing in the world you ever want to see is your balance.”

The point: Removing a small, unwanted source of anxiety from an interface can change behaviour more than an advertising campaign.

Variants: In one telling it follows Morrisons' failed 'Match and More' scheme, which told shoppers they would have saved money elsewhere: people may simply prefer not to know.

Sources (2)

Finish Quantum, concentration hidden in intricacy

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Concentrated detergents are kinder to the environment and cheaper to transport, but sell a plain concentrate and people either overdose or think it's no good, because of the heuristic that more is better; using less feels like doing less of a job. We also believe that the more intricate something is, the better it works. So cut the volume and make up for it with complexity. Coloured flecks make a powder seem more effective because it has two things in it. Finish Quantum dishwasher tablets are insanely intricate: coloured powders arranged around a 'power ball'. Nobody notices they are using less, and System 1 says: that's really complicated, so it must be great.

“That's really complicated, so it must be great.”

The point: One heuristic (intricacy means quality) can be used to override another (more is better) and deliver a hidden benefit.

Sources (2)

Google Maps can't plan a drive to the station

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Google Maps' public transport mode assumes that if you use public transport, it is because you have no car. Ask for a route from Kent into central London and it sends you by bus to the station and on foot at the other end, when what everybody actually does is drive to the station and catch a train. That very British practice, also common in Connecticut, is invisible to it: in Los Angeles you only take public transport if you have no car, and Google is very Californian in that assumption. You cannot search for a mixed car-and-train journey, so it repeatedly gives ludicrously pessimistic journey times for trains.

“Google is very Californian in that assumption.”

The point: Software encodes its designers' cultural assumptions and quietly misleads users who live differently.

Sources (2)

How Dishoom filled its lunchtimes

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Indian restaurants are usually dead at lunchtime, but Dishoom is busy. Rory thinks it cracked the problem by serving breakfast. Because people are already inside at 11, 11.30 and noon, passers-by instinctively feel it is fine to go in. People dread being the first customer and getting trapped by social obligation; in a café you can order just a drink, while in an empty restaurant you cannot. Dishoom also puts tables and chairs on the pavement, which say from 500 yards away that there is somewhere to eat, that it is open and that it suits lunch. He once advised an empty jewellery shop that three of its four staff should pretend to be customers.

“People are terrified of being the first customer in a store.”

The point: Visible occupancy and cues of openness, not menu or price, decide whether people walk in.

Sources (2)

If the petrol engine were invented after the electric car

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Rory imagines a world where all cars are electric and a rogue Volkswagen engineer proposes something new: put a tank of inflammable liquid in the car, engineer explosions in cylinders, add a gearbox, oil, filters and some 250 moving parts. Is it quieter? No. Cleaner? No, it farts out the back. Can you refill at home? Obviously not; you go to a special place that sells Ginsters. Only the tiny fraction who drive 350 miles a day without stopping would benefit. 'I don't really see this is going to fly.' A hundred years of brilliant refinement have made the combustion engine familiar, but to a physicist it is inherently ridiculous.

“If all cars were electric and someone invented the internal combustion engine, people would look at them as if they were completely mad.”

The point: Inverting the order of history exposes how much of our preference for the incumbent is familiarity, not merit.

Variants: One telling, from an Evening Standard piece, adds that Top Gear drove electric cars until they died, which you could do with any petrol car.

Sources (2)

KFC on a china plate at an organic food fair

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In the Netherlands, someone took KFC or McDonald's chicken, put it on white china plates, dressed it with fresh vegetables or a fancy salad, and served it at an organic food fair in Amsterdam. Visitors praised its wholesomeness, originality and authenticity. Rory says the Austrian economists would ask what is wrong with that. Creating value through story and presentation is efficient and even environmentally friendly: you don't have to make anything, chop anything down or burn anything, just tell a story around something that already exists. Assuming we judge things independently of how they are displayed is, he says, the worst misconception in problem solving.

“The idea that our evaluation of something is independent of the context in which it's displayed is the worst misconception in human problem solving.”

The point: Presentation and setting shape quality judgements as much as the product, so changing context is a cheap, low-impact way to create value.

Sources (2)

Miso soup isn't really very nice

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Rory makes a mischievous claim certain to scandalise some listeners: miso soup isn't really very nice. If it didn't exist and your child said they had invented a new soup, with a leaf and a white cube floating in it for no apparent reason, you would have a sip and say don't give up the day job. Likewise, hear of an Amazonian tribe reduced to eating bits of raw fish wrapped in rice and you would think: poor things. He drinks a lot of miso himself; it is great because it is Japanese and carries those associations. That is not a con: provenance genuinely adds to enjoyment.

“To what extent are we actually eating what we eat and to what extent are we consuming stories?”

The point: Provenance and story are part of the taste of food, not a deception layered on top.

Sources (2)

Moist toilet paper and the acre of dry

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If you came in from potting plants with muddy hands, you would not rub them with dry paper; you would use water. Most of the world, including the Islamic world and South-East Asia, finds wiping with dry paper repellent, yet the West sticks with it. Working for Kimberly-Clark, Rory's team noticed the shelf: half an acre of dry paper and two small packs of moist on the top shelf. The brain infers that dry is mainstream and moist is for weirdos and people with a medical condition, and defaults to dry. The fix is what Walkers did with crisps: launch many variants to dominate the shelf.

“That thing for weirdos and people with a medical condition up on the top shelf.”

The point: Shelf space acts as social proof, signalling which option is normal, so share of shelf shapes choice.

Variants: One telling notes that Deadpool 2's writer put an elaborate comic rant about dry paper into the film.

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Neighbours turned condescension into envy

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Australians long suffered from the cultural cringe, convinced that the English patronised them as colonials with corks hanging off their hats. That was true in the 1950s and 60s. What they failed to realise, Rory says, is that the British had since spent a decade or more watching Neighbours and Home and Away. By then nobody was patronising anybody: the mainstream British reaction to meeting an Australian was envy and jealousy, you lucky so-and-sos. He suspects a residual belief persists in Australia that Britons still look down on them.

“Nobody was patronising anybody by that stage.”

The point: Popular culture can shift how one group sees another far more than elite opinion, and the sense of being judged lags behind the change.

Sources (2)

New York talks fast, the South talks slow, both are politeness

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A brilliant Ogilvy copywriter pointed out to Rory that in New York people speak fast and in the American South they speak slowly, and both are forms of politeness. In New York, speaking quickly acknowledges that the other person's time is valuable. In the South, speaking slowly shows how much of your own time you are willing to give them, intimating that they are worth it. The same message is sent in completely opposite ways. Rory treats it as one of many perceptual paradoxes, and links it to Cialdini's observation that things sell by opposites: because everyone has one, or because hardly anyone does.

“In New York people speak fast, in the American South they speak slowly; both of them are a form of politeness.”

The point: Opposite behaviours can carry the same meaning in different contexts, so there is no single right way to signal a value.

Sources (2)

Nobody minded CDs or commuting until there was an alternative

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Nobody revolts against what they see as inevitable. In 1988 the landline, the fax and the computer were all in the office, so nobody grudged commuting. Nobody minded buying whole CDs until downloads existed and record companies still insisted on them. Once people had experienced putting a cardigan over their pyjamas and clicking 'join meeting', the same train journey felt ten times more painful, especially if you go in only to do emails and Zoom calls. Rory struggled to persuade his wife to get a Quooker boiling-water tap; now waiting for a kettle feels weirdly Victorian. Once you have experienced the new behaviour, the old one seems ridiculous.

“Nobody revolts against anything they see is actually inevitable.”

The point: The existence of an alternative transforms how a burden feels, so the hard part of adoption is the first trial, after which reversion is rare.

Variants: One telling adds that electric car buyers rarely go back; the other suggests flexible working could be hourly, starting at 10.30 on an empty off-peak train.

Sources (2)

Outrunning Olympic swimmers in wellingtons

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We think Olympic swimmers are really fast because they are fast compared with other swimmers. As a mode of human transport, swimming is hopeless: Rory calculated a world-record swim at around 4 mph, slower than someone in a pair of wellies. That is why broadcasters make sure nobody walks alongside the pool, since even world champions could be outpaced by a pensioner with a Zimmer frame putting on a burst. He reckons he could outrun them in wellingtons while hopping. Whenever we judge anything we reach for a frame of comparison, and the frame we are given can produce utterly nonsensical conclusions.

“I could outrun major Olympic swimmers in wellingtons while hopping.”

The point: Judgements depend on the comparison set, and changing the comparison can transform how something is perceived.

Sources (2)

Placebo door-close buttons in lifts

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If you doubt that placebo choice exists, Rory says, consider lifts. Many 'door close' buttons are not connected to anything: they do not speed up the doors at all, but they give irritable, impatient people something to jab so they feel in control. Asked whether this is true or a rumour, he confirms it and calls it the illusion of agency. He puts it alongside approximate car positions on early ride-hailing maps and stylised delivery trackers. Restaurants do the verbal version: 'still or sparkling?', 'red or white?', even 'tea or coffee?' give the illusion of control while quietly freezing off options such as tap water.

“It's placebo choice: it gives you the illusion that you're in control.”

The point: A sense of control reduces frustration even when the control is illusory, and a narrow either-or question can feel like freedom.

Sources (2)

Royal Mail, better than the German post office

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Royal Mail delivered about 97 or 98 per cent of first-class post the next day and nearly broke itself trying to reach 99. Who would notice? Worse, asked to guess, the public said somewhere between 40 and 70 per cent. It was great food in a restaurant that smelled of sewage. If your perception is much worse than your reality, Rory asks, why spend a fortune changing the reality? Fix the perception first. A rational, System 2 campaign would quote the 97 per cent. The System 1 campaign would say more first-class mail arrives next day in Britain than in Germany, which to a British mind means good enough. To please Britons, tell them they do it better than the Germans.

“If your perception is much worse than your reality, what on earth are you doing trying to change the reality?”

The point: When perception lags reality, closing the perception gap is cheaper and adds more value than improving the product.

Sources (2)

The $200 million button

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A US retailer, Rory thinks Best Buy, made shoppers sign in or register before they could buy. It added a button: 'Check out as guest. Don't worry, you'll have the opportunity to register later.' Sales rose by hundreds of millions of dollars, and the vast majority of guests registered at the end anyway. Only the order had changed; the effort was identical. Typing your name and address framed as 'registration', before you have bought anything, feels like a maddening imposition. Typing it so your fridge can be delivered feels reasonable, and adding a password to details you have already given feels like nothing.

“It's objectively similar but subjectively different, and that's where to look for 10x's.”

The point: The sequence and framing of an identical task can transform how burdensome it feels.

Variants: The figures vary by telling: $200 million with 87 per cent registering afterwards, or $300 million with 97 per cent.

Sources (2)

The capuchin who was happy with cucumber until she saw grapes

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Rory shows Frans de Waal's fairness experiment. Two capuchin monkeys happily trade rocks for cucumber, again and again, until one starts receiving grapes for the same task. The cucumber monkey tests her rock against the wall, takes the cucumber and throws it back at the trainer. De Waal calls it the Wall Street protest. Rory's reading: the monkey thought it a perfectly fair deal and liked the trainer. Change only the context, with a neighbour getting grapes, and the trainer goes from friend to enemy. The same effect can make people miserable or happy, and successful businesses understand we are not utility-maximising monkeys, otherwise we would be happy with the cucumber.

“We're not utility-maximising monkeys, otherwise we'd be happy with the cucumber.”

The point: Satisfaction depends on relative treatment, not absolute reward, so changing the comparison changes how the same deal feels.

Sources (2)

The charity envelopes that defied economics

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For a charity appeal, Rory's Ogilvy colleagues sent 100,000 envelopes in each of four variants: one saying volunteers had delivered it, one prompting a form to claim a 25 per cent tax rebate, one on better-quality paper, and one in portrait format. Logically only the tax rebate should matter. It cut donations by over 30 per cent and even reduced the share of people giving at all. The other three each raised donations by over 10 per cent, and the better paper attracted more large gifts. Perhaps a flimsy envelope feels wrong for a big cheque, or people reciprocate: they sent me nice paper, I owe them fifty quid. Only testing could have found it.

“The human mind does not run on logic any more than a horse runs on petrol.”

The point: Behaviour responds to cues economists dismiss as irrelevant, and the rational lever can backfire, so test rather than theorise.

Variants: One telling is about the paper alone, for Christian Aid Week, with more donations over £50; the other is a hurricane appeal with more gifts of £100 or more.

Sources (2)

The gin-rimmed tonic

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An old barman's trick that works on heavy drinkers in golf clubs: after a couple of real gin and tonics, serve plain tonic with ice and lemon in a glass whose rim has been dipped in gin, so they get the smell. Regular drinkers often fail to notice and carry on acting drunk, though their blood alcohol is zero; the brain takes a shortcut: every time I do this I start talking bollocks and swaying around. Rory tells of an unnamed high court judge breathalysed leaving a golf club. The test came back clear, saving his career. He immediately went back and demanded the barman be fired for watering down the drinks, somewhat ungratefully.

“He immediately went back and demanded the barman was fired for watering down the drinks. Somewhat ungratefully, I would argue.”

The point: Expectation and sensory cues alone can produce the behaviour we attribute to a substance.

Sources (2)

The hotel ice sculpture rated by check-in

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Rory saw an analysis of customer feedback from a hotel in Memphis that asked guests about many things, including an irrelevant ice sculpture in the garden in winter. Virtually every score depended on the check-in experience. Guests with a bad check-in constructed a narrative of a bad hotel and went looking for corroborating evidence; those with a good one decided to be in a good mood. Those who checked in quickly thought the ice sculpture was brilliant; those who had waited 20 minutes behind a United Airlines flight crew rated the sculpture and the garden as poor, or just okay.

“They thought the ice sculpture and the garden was crap if they'd had to wait 20 minutes at check-in.”

The point: First impressions colour judgements of unrelated things, so the opening moment of a service matters disproportionately.

Sources (2)

The longest champagne bar in Europe

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When St Pancras reopened, Freud Communications mentioned in every press release that it had the longest champagne bar in Europe. Rory finds the superlative absurd: nobody chooses a champagne bar for its length or complains one was too short, and it isn't even that long; he expected to see the curvature of the earth. Yet that one sentence makes you want to go and look, and reframes the station from a utilitarian transit hub into a destination and meeting place. He calls it benign, brilliantly irrelevant nonsense. A billion pounds was spent rebuilding London Bridge station; he would have added the largest florist in Europe so that people would love it.

“It's a brilliantly irrelevant wacko thing.”

The point: A memorable, even silly, claim can give a functional place an identity that multiplies appreciation of what was built.

Sources (2)

The M25 turning he kept missing

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Driving back from Deal, Rory kept missing the turn from the M20 onto the M25: four or five times out of a dozen. Once is your fault; four times, there is something wrong with the junction. On Google Street View he found why. The first gantry gives no primary destination such as Brighton or Gatwick, only Swanley, which nobody can place, so you wait for the next sign on the horizon. By the time you can read it, the lanes have divided and the exit has gone; some drivers swerve across the hatching. He told the Highways Agency they might as well paint 'Haha, you've missed the turning'. They met him, agreed, and changed it.

“By the time you can read that sign, it's too late to act on the information it contains.”

The point: When a system asks for a choice before giving the information to make it, people blame themselves rather than the design.

Sources (2)

The replication crisis is a feature, not a bug

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Behavioural scientists fret about the replication crisis. Rory says it is not a bug but a feature. Citing Bent Flyvbjerg, he argues that social science's quest for universal, context-free laws like gravity may undermine its usefulness: snooker balls move the same way everywhere, people do not. Findings fail to replicate precisely because context has such a huge effect on how people think and act; the same person facing the same choice in a different context decides completely differently. For marketers, those tiny contextual differences are the interesting bit. It is also why a business cannot import a finding from elsewhere and must test it on its own customers.

“If anybody did discover a universal law of human behaviour, the marketing community would have to have them killed.”

The point: Because behaviour is context-dependent, findings must be tested locally, and finding the right context is the marketer's real job.

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Things are not things, context, meaning, emotion, behaviour

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Rory sets out his model of decision-making as a chain. There is the objective thing; then the context in which it is perceived; the perception in that context; the meaning we derive from the perception; the emotion generated by that meaning; and finally the behaviour the emotion drives, followed by an act of furious post-rationalisation. In physics one thing maps neatly onto another. In human behaviour, with four or five messy intermediate stages, the mapping is anything but neat. Change the story about something and you change its meaning, our visceral response and our evaluation: it becomes a different thing. So objective reality matters far less than people assume.

“Things are not things. We don't actually respond to things, we respond to things in a context from which we derive meaning.”

The point: You can change behaviour by working on context, perception or meaning without changing the object itself.

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Two identical greys that look different

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Rory shows an optical illusion with two squares, A and B. Everyone agrees A is dark and B is light, because the brain assumes a shadow falls on one and compensates by making it look brighter. Cover the join, or change the context, and you see they are exactly the same grey. Yet once the context returns, it is impossible to see them as the same again. Almost all our senses, and our sense of pleasure, pain and value, operate relatively rather than absolutely. Economics assumes we value things unaffected by what sits alongside them, which Rory calls dangerously wrong: reality does not map neatly onto emotion, so stop measuring reality alone.

“Our perception of virtually anything operates at a relative level, not at an absolute level.”

The point: Perception and valuation are relative to context, so measuring objective reality alone misses how people experience it.

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Vapers were never really addicted to nicotine

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Rory calls the electronic cigarette a ten-times innovation. After years of fiddling with nicotine patches, the discovery was that smokers are not really addicted to nicotine: more and more vapers drift to the zero-nicotine variant without really noticing. What the brain was attached to was the act: inhaling something quite hot that hits, he thinks, the trigeminal nerve at the back of the throat, then breathing out and relaxing. His trick for finding ten-times innovations follows from it: look for things that are objectively similar but subjectively different, or vice versa.

“Look for things which are objectively similar but subjectively different, or vice versa.”

The point: Habits often attach to the sensory ritual rather than the active ingredient, so the ingredient can sometimes be removed.

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We think important whatever we pay attention to

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If there is one thing to know from behavioural science, Rory says, it is this: we believe we pay attention to what is important, when in fact we think important whatever we are paying attention to. You cannot control what you feel is important, but you can control where you direct your attention, and so hack your own priorities. The same lever works on whole societies. As Citizen Kane has it: make the headline big enough and I'll make the story big enough. Political bias in news is less about what to think than what to think about. American truck makers used the same emissions cheats as Volkswagen, but trucks never left the trade press.

“The way our brains really work is we think important what we're paying attention to.”

The point: Control of attention is control of perceived importance, so whoever sets the focus sets the priorities.

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What on earth is wrong with placebos?

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Rory asks, as a naive ad man, what is actually wrong with placebos, which are effectively banned as treatments in the UK. They seem fantastic to him. They cost almost nothing to develop. They demonstrably work, sometimes extraordinarily well. And they have no side effects, or if a patient does report side effects, those must be imaginary too, so they can safely be ignored. The joke sets up his wider argument that we undervalue and distrust interventions that work through the mind.

“They have no side effects, or if they do, they're imaginary, so you can safely ignore them.”

The point: Interventions that work through perception are cheap and effective, yet institutions treat them as illegitimate.

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Why airport crowds are chaotic

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Every culture has an unconscious norm for two people approaching each other on a pavement: which way to step and how early to swerve. In the UK both veer left at about three feet; in India it is more like two and a half feet, because people are happier being close; in Korea they go right. Airports gather people from every culture, each following a different rule, so nobody knows what anyone else will do and crowd movement becomes fundamentally dysfunctional. Rory also suspects people never quite recovered the knack of walking in crowds after Covid.

“Everybody's operating unconsciously to a completely different rule.”

The point: Invisible coordination norms only work when everyone shares them, and mixing them causes chaos.

Variants: One telling adds a famous mid-air collision in which, beyond an air traffic control error, two conflicting rules about which way to evade were the real cause.

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Why do people really clean their teeth?

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J. P. Morgan said every man has two reasons for doing something: a good reason and the real reason. In most corporate settings, asking why people clean their teeth would get you treated as a lunatic: the official answer is dental health and fewer cavities. But look at when people brush: always first thing in the morning and before a date, almost never after lunch. It is about vanity and fear of bad breath. Further proof: if it were about gums, why would about 95 per cent of toothpastes be mint-flavoured? The dumb question exposes the gap between the ostensibly logical reason and the real one.

“Every man has two reasons for doing something: a good reason and the real reason.”

The point: Observe behaviour rather than stated motives to find the real driver you can design for.

Variants: The mint figure is 95 per cent in one telling and 97 per cent, confirmed by someone at Colgate, in the other.

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Years walking past Chop'd

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Rory admires the restaurant marketer Mark McCulloch, who says restaurants assume passers-by know far more about them than they do: the owners know what they sell, but people walking past do not. McCulloch found a woman who, every lunchtime for years, walked about 200 yards past a branch of the salad chain Chop'd on her way to buy a salad somewhere further away. Chop'd did not say salad on the outside. She saw the name, associated it with chopsticks, assumed spicy food, which she didn't like, and ignored it. Nobody had been explicit. Ogilvy staff realised many people would not even know that Wahaca was Mexican.

“There's an amazing amount of money you can make just by explaining yourself very clearly.”

The point: A business can quietly lose customers to a misreading it has never noticed, so state the obvious plainly.

Variants: Seven years in one telling, nine in the other.

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$400,000 per room to look like every other hotel room

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Hotels proudly tell you they've had a refurbishment programme costing $400,000 per room. And you think: to make it look like every other hotel room I've ever stayed in. Following Andy Clark's predictive-processing point, it's the weird stuff we notice, the things we didn't expect, that really chime with us. Matching the standard is invisible.

“To make it look like every other hotel room I've ever stayed in.”

The point: Spending to meet expectations goes unnoticed; only the unexpected registers.

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'Kind to the environment' tells the brain it cleans badly

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Put 'kind to the environment' on a detergent or washing powder and the System 1 part of the brain automatically infers that it is not very good at cleaning your clothes. The human brain is programmed to look for trade-offs: if something is better for X, it is probably worse for Y. That is why virtuous claims can backfire and good is sometimes best done by stealth.

“The human brain is programmed to look for trade-offs. If something's better for X, it's probably worse for Y.”

The point: Consumers assume every gain has a hidden cost, so a virtue claim can undermine the product's core promise.

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120,000 viewers is one and a half Wembleys

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We get under-excited by online audiences. When Nudgestock streamed live during Covid to 120,000 people, some said it could have been bigger. Rory replied that's one and a half Wembleys: present to a full Wembley Stadium and you'd call it the biggest event of your life. During Covid he did lots of podcasts, some tiny, reasoning that reaching 600 people in an hour beats reaching one. Then a film student called Hugo started clipping and 'TikTok-ising' them, and now he can't walk to St Pancras without a selfie request.

“Hold on, that's one and a half Wembleys.”

The point: Reframing a number against a vivid physical reference changes how impressive it feels.

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75 per cent survive versus 25 per cent die

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After 36 years in advertising, Rory knows you can present the same information 15 different ways and get completely different emotional responses depending on what you leave out and highlight. Say 75 per cent of people will survive or 25 per cent will die: the same fact, but people respond differently because there is implicit social context in the framing. There is no point simply giving people objective information, because we are incapable of consuming it objectively. He praises New South Wales's government behavioural science unit.

“There's no point in simply providing people with objective information when they won't consume it in an objective fashion.”

The point: Framing is unavoidable, so communicators must choose it deliberately.

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A Dutch train is a moving Rear Window

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Rory notes that in the Netherlands people do not have curtains on their downstairs windows, and regard anyone who does as secretive and up to no good. So if you take an after-dark train journey through the Netherlands, it is like a moving version of Hitchcock's Rear Window.

“It's like a moving version of Hitchcock's Rear Window.”

The point: Norms about privacy are cultural: what signals honesty in one country signals secrecy in another.

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A GP was 30 percent doctor, 70 percent shaman

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Rory's grandfather was a GP in Tredegar, working for the miners' medical cooperative where Nye Bevan got the idea for the NHS. He admitted that before antibiotics a GP was about 30 percent doctor and 70 percent shaman: much of the value came from reassurance, jollying people along and giving them confidence. Rory thinks that is fine, and that Ed Miliband's much-mocked 'Ed Stone' got one line spot on: 'an NHS with the time to care'.

“Before antibiotics came along, as a GP you were about 30 percent doctor, 70 percent shaman.”

The point: Feeling looked after is a large part of what healthcare delivers.

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A returned gift is an insult

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Rory quotes a passage from Bent Flyvbjerg's book drawing on a French anthropologist, Bourdieu [?]: context is basically everything. Gift-giving is generally a nice thing in the right context. But if someone gives you a present and you immediately return it, that is not a gift, and it is not even neutral: it is an insult. Tiny contextual differences make a huge difference to how things are perceived.

“If someone gives you a present and you return it, that's not a gift. It's not even neutral, it's an insult.”

The point: The same act can flip meaning entirely with a small change of context.

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A show of hands as a commitment device

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Closing his welcome, Rory asked the audience how many wanted the event to become annual, framing the show of hands explicitly as a commitment device. When the hands went up he announced 'consistency bias, good, marvellous, got you to raise your hand, all done', a live demonstration that a small public act binds people to future behaviour.

“Consistency bias. Good. Marvellous. Got you to raise your hand. All done.”

The point: Getting people to make a small public commitment makes them more likely to act consistently with it later.

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A £55m plane remembered for a £25 phone holder

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Rory flew to the event on an Embraer 190 from London City, a plane costing perhaps £55 million. The only thing he really remembered about the flight was that someone had spent probably £25 putting a mobile phone holder on the back of the seat in front. Marketers are unpopular in organisations because they have no sense of proportion, but neither do consumers: we can be hugely impressed by utterly trivial details and ignore things millions have been spent on. Yet at British Airways the person responsible for seatback fitments is fairly far down the food chain.

“Marketers have no sense of proportion. But the point is consumers have no sense of proportion either.”

The point: Customer delight often comes from cheap, trivial details rather than the expensive engineering organisations prize.

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All tea comes from one plant

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Rory finds it fascinating that the tea plant, Camellia sinensis, is the same everywhere. Setting aside things like rooibos, matcha, lapsang souchong, Earl Grey, green tea, black tea and white tea all come from the same plant. Everything that makes them different is how the leaf is treated.

“It's genuinely one goddamn plant.”

The point: Processing and framing, not raw material, create most of the variety and value in a category.

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Amazon's egalitarian grid has sovietised retail

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Search Amazon for a Samsung television and the first three results are similar sets from makers Rory has never heard of. No retailer would do that: it destroys the premium sale. His Samsung suddenly looks expensive, he won't risk 500 on an unknown brand, so he buys nothing or goes to John Lewis, where choice architecture makes sense. Shops put some products on a pedestal; an egalitarian grid has sovietised retail. He thinks tech and consulting are conniving with managerial bureaucrats to make capitalism increasingly Soviet.

“By putting everything in an egalitarian grid you've kind of sovietised retail.”

The point: Flat, undifferentiated presentation removes the cues people need to choose and pay a premium.

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Americans want London to be a bit London-y

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American and Asian tourists want a London hotel to be a bit London-y, with a man in a top hat at the door. A friend of Rory's booked some very cool friends from Los Angeles into the Hempel, an LA-style hotel in Bayswater. They were gutted: if they come to London, they said, they want horse brasses and hunting prints. Such nuances are easy to lose when only costs are counted.

“If I come to London I want horse brasses, I want hunting prints.”

The point: Customers often pay for local character and status cues that efficiency-minded design strips out.

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An ancient Greek football commentator would be more honest

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Rory asks whether an ancient Greek football commentator would be more honest than a modern one. Rather than attributing every result to human intent, he would acknowledge fate: 'Everything was going well for United, and then Phoebus Apollo decided to thwart their midfield efforts.' Citing Chesterton, that when we stop believing in God we believe in anything, Rory argues that invoking capricious gods may be a more accurate picture of a complex, unpredictable world than seeing intentional agency in every outcome.

“Everything was going well for United, and then Phoebus Apollo decided to thwart their midfield efforts.”

The point: Acknowledging luck and the unknowable can be more truthful than narratives of total human control.

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Artisan means made by an inefficient process

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An Onion parody about upper-middle-class women in Marin County taking up candle making makes Rory's point. In the 18th century candle making was necessary domestic drudgery; the moment you could buy ready-made candles, it became an extraordinary pleasure. Bread making is the same. 'Artisan' basically means manufactured through an inefficient process, and it is all the rage.

“Artisan basically means manufactured through an inefficient process.”

The point: Once necessity disappears, drudgery can be reframed as pleasure and inefficiency sold as a premium.

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Ask who your neighbours will vote for

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Most pollsters got the 2024 US election wrong, but a WPP colleague had marketing data showing Trump's 'voltage' on the Brand Asset Valuator was far higher, and called it for Trump five days out. One of the cleverest methods asked people not how they would vote but how they thought their neighbours would. Asked about ourselves, we think about what the answer says about us. Offered canapés with caviar or KFC, you will say caviar, yet walking past the bargain bucket you turn left.

“Our question is what does it say about me to answer this question, not what's the honest answer to this question.”

The point: Indirect questions strip out self-presentation and reveal real preferences.

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Automatics, air fryers and the best part is no part

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Rory calls himself an electrification enthusiast. Every British car traditionalist resisted automatic transmission until they drove one and never went back, just as everyone scoffs at air fryers until they own one. Everything in a petrol engine, cylinders, gearbox, spark plugs, filters, exists only to rotate a shaft, and almost every other rotating device has moved to electric motors. He cites the car industry mantra that the best part is no part, and is most excited by small electric car-like objects such as the two-seat Microlino bubble car.

“Every car traditionalist in Britain resisted automatic transmission until they drove one, at which point they never went back.”

The point: Resistance to a new technology often vanishes on first use, so trial matters more than argument.

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Avoiding a shop because of its other customers

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Rory recently learned there is a whole cohort of people who avoid Marks and Spencer not because of its prices or products, but because they don't like the people who shop there. He confesses he is a bit like that with Gail's bakery: he quite likes the product, but not the people in the queue.

“I really quite like the product, but the people in the queue, no.”

The point: A brand's clientele is part of its offer, and can repel as well as attract.

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Benign BS, the coffee ritual makes it taste better

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Watch James Hoffmann, the former world champion barista, make a 15-minute video on V60 pour-over coffee and you will start a sane man and end up importing filter papers from Japan and spending 2,000 dollars on a grinder. Rory calls it benign BS: the faff of preparing coffee probably enhances our enjoyment of it, just as food you have cooked yourself tastes better than something out of the microwave. We should not discard these psychological effects.

“The BS we go through to prepare the coffee probably enhances our enjoyment of the coffee.”

The point: Effort and ritual add real enjoyment, so friction is not always waste.

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Betty Crocker, just add an egg

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The earliest version of the IKEA effect is the famous Betty Crocker case. Its cake mix needed only water and sold poorly. A psychologist said there was not enough effort for it to feel like cooking, so the instructions told you to add an egg. Despite adding cost and effort, sales improved, perhaps because it now felt like preparing something for your family rather than cheating. Rory notes it was never tested to academic standards, but the lesson for business is simply that sometimes the counterintuitive approach is better.

“Sometimes the counterintuitive approach might be better.”

The point: Removing all effort can remove meaning, and a little required effort can increase a product's appeal.

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Bottled water's real differentiator, the cup holder

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Rory recalls research his team once did into bottled water. Everybody in the category was agonising over brand imagery of mountain streams and purity, but when buyers were asked, the principal differentiator for them turned out to be whether the bottle fitted the cup holder in their car. That will fit in the cup holder was the deciding thought.

“The principal differentiator was whether it fit in your cup holder in your car.”

The point: Mundane practical fit often drives choice more than the brand imagery marketers obsess over.

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Breakfast until 11, these are my people

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The Angel Hotel in Abergavenny, Sunday Times food hotel of the year, did one thing Rory had never experienced. Checking in tired at the weekend, you ask the latest you can have breakfast, braced for: since it's Saturday, we'll let you lie in until eight. Instead: 11 o'clock. From that moment, Rory thought, these are my people.

“From that moment on, I go: okay, these are my people.”

The point: Beating a universally disappointing norm earns instant loyalty.

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Bubble tea as a gustatory fruit machine

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In a pigeon experiment, birds pecking a switch for three pellets would eat enough and wander off. When the pellets ran low, the dispenser was tweaked to give zero, one, two or three at random, and the pigeons went bonkers, pecking furiously like gamblers at a Vegas fruit machine. That's variable reinforcement: unpredictable rewards are more addictive than constant ones. Rory's theory of bubble tea is that you never know how many blobs will come up the straw, so it's a gustatory fruit machine.

“What you effectively created was a pigeon fruit machine.”

The point: Unpredictable rewards make a product more compelling than reliable ones.

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Buying a car you cannot judge, judge the seller instead

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Drawing on Daniel Kahneman's idea that the brain swaps a hard question for an easy one, Rory says that when buying a second-hand car or a house most of us cannot assess the thing itself, so we ask whether we trust the person selling it. That is not irrational: we have half a million years of evolved skill at spotting untrustworthy people and none at evaluating cars. Likeability becomes a proxy, and a salesperson who would feel shame at a dodgy recommendation is a reasonable bet when you cannot research every coffee machine.

“We instinctively choose to judge the personal because it is a lot easier and we are better at it than judging the technical.”

The point: Customers substitute an easy proxy question (do I trust this person?) for a hard technical one, and that substitution is evolutionarily sensible.

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Cancer drugs need scarier side effects

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Dan Ariely told Rory that drugs for common conditions like asthma sometimes also work against rare cancers. But when prescribed for cancer, patients read the side effects, may cause drowsiness, and conclude it can't be a serious cancer drug. So they exaggerate the side effects, may cause cardiac arrest and worse, and people think that's really unpleasant, it must be a good cancer drug. When you solve big problems in simple ways, nobody believes you, because people expect the downside to match the achievement.

“No one believes you, because they believe the scale of the downside has to be commensurate with the scale of the achievement.”

The point: People distrust cheap or gentle solutions to big problems, which is why small interventions are hard to sell.

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Car enthusiasts are like High Church vestment nerds

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Electric cars would see more adoption if the government had not been so eager to push them, Rory says, since they are intrinsically better. But some car people are like those in religion who care little about God but are obsessed with chasubles, vestments and liturgy: more interested in the accoutrements than the purpose. They love engine design and V8s; the means interest them more than the ends. He sympathises, since he would die in a ditch for the beauty of a steam locomotive.

“They're almost more interested in the accoutrements than they are in the core purpose of the religion.”

The point: Enthusiasts value the mechanism, so arguments about function will not move them.

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Caribbean banana liqueur in a Fulham basement

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Drinks are fiercely context-dependent. Pernod is enjoyable in France and repellent in the UK; rosé tastes better by the sea; winter Pimm's never worked. Someone drinking a banana liqueur on a Caribbean beach bought the UK import rights, shipped a case home and invited friends to try it in a basement in Fulham. They were retching all over the place, because what tastes great on a Caribbean beach doesn't taste great in Fulham on a rainy October day.

“What tastes great on a Caribbean beach doesn't taste great in Fulham on a rainy October day.”

The point: Taste is partly the setting, so a product can fail when moved out of its context.

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Celsius for the cold, Fahrenheit for the heat

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Rory says Britain is gloriously messy, stuck mid-Atlantic on measurement: miles on road signs, yards and metres used interchangeably, cheese bought by the pound but weighed in grams. For temperature, Britons tend to use Celsius when it is cold, because a minus figure sounds dramatic, and Fahrenheit when it is hot, because you can say temperatures soared into the 90s. Journalism picks whichever system exaggerates the story it wants to tell.

“Depending on what you want to exaggerate, you choose one or other of the two systems.”

The point: The choice of scale is a framing device that changes how dramatic the same reality feels.

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Change a million minds, or just change one context

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Because humans decide contextually, an easy way to innovate is not to change everybody's mind but to change the context in which they decide. Advertising always wants to change minds, one at a time. Rory argues that if you change the context or frame of reference within which people make a decision, they will make a different decision, and you only have to do it once.

“You can change a million minds or just change one context.”

The point: Redesigning the decision context is cheaper and more powerful than persuading individuals.

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Changing context is cheaper than changing reality

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Rory sums up his work in one idea: we do not perceive objective reality; what we perceive is heavily mediated by context, and if you change the context you change the experience even if you have not changed the reality. The same chocolate can be perceived, and reacted to, completely differently with a different story or comparison. Put bluntly, from a business point of view, changing context is often a hell of a lot cheaper than changing reality.

“Changing context is often a hell of a lot cheaper than changing reality.”

The point: Businesses can create value more cheaply by altering context than by altering the product.

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Choc ices on Virgin, and BA should win at tea

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If Rory ran British Airways he'd shave money off lunch and dinner, which Brits aren't very good at, and hit tea and breakfast, which we do brilliantly, out of the park: tea in a pot in business class. Optimise for surprise. Virgin Atlantic handed out choc ices during the in-flight film, and that's what everybody remembers. Americans were baffled, because the choc-ice-at-the-cinema connection is purely British, just as Brits miss why Americans find Hendrick's cucumber funny.

The point: A cheap, surprising, culturally resonant touch is remembered far longer than expensive competence.

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Choosing talk over all the world's music

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Rory met the man who coined the word 'podcast' very early and thought it might work for American drive time but not much in the UK. He gets a lot wrong, he admits, like dismissing kombucha. The weird thing: give people a 90-minute drive with all the world's music available and they choose to listen to people talking. He would have predicted otherwise. Audiobooks too: his grandmother had a clunky talking-books-for-the-blind device in the 1980s, so why did audiobooks take so long to take off?

“In your car you have access to all the world's music, and yet you'll choose to listen to some people talking.”

The point: People's real preferences often contradict confident predictions, and viable ideas can sit unexploited for decades.

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Churchill, former Westerham resident

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Rory's local paper covers Westerham, where Churchill's home Chartwell lies. A man sold on eBay a coat Churchill had given him as a young gardener, and the paper described Churchill as the former Westerham resident and wartime Prime Minister. Rory realised no other publication in the world would put those words in that order. What is significant about Winston Churchill? He used to live in Westerham, apparently.

“There is no other publication in the world where you would put those words in that order.”

The point: What counts as the most important fact depends entirely on the audience and context.

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Cider loses to beer because it looks like lager

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Abraham Lincoln asked readers to imagine going to church wearing their wife's bonnet: no less comfortable than a top hat, yet agonising unless you could say it was for a bet. Social awkwardness is an unbelievably strong driver, perhaps even physically: one paracetamol reportedly eases social anxiety. Cider is as nice as beer, but beer, the social norm, outsells it seven to one. Guinness benefits from being obvious in your hand, with tricks like 'splitting the G', while cider without ice looks like lager.

“There are things we won't do because we don't want to stand out.”

The point: Visibility and social norms shape consumption as much as taste does.

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Climbing grades that spoil the climb

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Rory recommends The Score by C. Thi Nguyen [?], a philosopher at the University of Utah. A rock climber, Nguyen realised that because climbs are ranked numerically by difficulty, he was endlessly chasing higher grades when he should have been enjoying climbs at which he was genuinely proficient. The book examines the difference between the quantification of life and a life well lived: what you measure is what you do.

“What you measure is what you do.”

The point: Numerical scores can hijack an activity, replacing its real value with the pursuit of the metric.

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Context has a powerful but invisible effect

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Les Binet recalls asking Rory, at an IPA seminar during his presidency themed on behavioural economics, whether there was an underlying theory behind the anecdotes; Rory suggested prospect theory, which led Binet to Kahneman. Asked today, Rory says the central lesson would be that context has a powerful but often invisible effect on our decision-making.

“Context has a powerful but often invisible effect on our decision making.”

The point: Behaviour changes with context in ways people rarely notice, which is the core lever of behavioural science.

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Dawkins should have written The Football Delusion

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Rory says the English edition of Dawkins's The God Delusion should have been retitled The Football Delusion. Nobody in Kent fears being hijacked by suicidal Methodists or pistol-whipped by Quakers. Football, by contrast, is statistically the impurest of sports, 'pinball on grass', yet its commentary attributes every outcome to human agency. A single lost match brings calls for the manager to resign, and the only non-human agent ever credited is the crossbar that 'foiled Drogba's efforts'.

“If you choose to derive a large amount of pleasure from watching a series of completely random events play out, effectively pinball on grass...”

The point: We construct narratives of intentional human agency around events that are largely random.

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Dentists who make you write your own appointment card

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Some dentists no longer hand patients an appointment card with the next date filled in. Instead they hand over the card and a pen and get the patient to write the date down themselves. They find the likelihood of people turning up is much greater.

The point: Self-generated commitments are kept more reliably than ones handed to us.

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Do you buy a drill to make holes, or make holes to use the drill?

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Everyone knows the line: the factory makes quarter-inch drills, the customer buys quarter-inch holes. Rory loves a J. Walter Thompson debate about Black & Decker, involving a copywriter called Thomas, son of the poet Dylan Thomas. Do you perceive a need for a quarter-inch hole and buy a drill? Or do you see a drill that looks really cool, buy it, and go home looking for an excuse to make quarter-inch holes? Rory thinks both are probably true.

“You buy it and then go home and find an excuse to make quarter-inch holes in order to use your drill.”

The point: Desire can precede need; products can create the uses that justify them.

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Don't pay your wife for sex or leave cash at dinner

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Meaning is highly context-dependent. Normally giving money is called an incentive or a wage and encourages people. But don't pay your wife for sex: Rory jokes he tried it once and four months later got some, so if it works it works very slowly. And don't go to dinner with friends and leave money on the table; take a bottle of wine instead. In that context money is a really bad thing.

“Don't go to a meal with some friends and leave money on the table.”

The point: Money can destroy the social meaning of an exchange that a gift preserves.

Sources (1)

Drive often and driving becomes a pleasure

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Growing up on the Welsh borders, Rory says, he would sooner have severed his own genitals than not have a car, which would have hurt his social life less. He sees a problem for the motor industry: if you drive frequently, driving becomes System 1, automatic and one of life's great joys, especially in the country. Young people who only hire a car for a week in Lanzarote find driving terrifying, so they never discover the pleasure.

“If you only drive for seven days or 14 days a year, driving is terrifying.”

The point: Familiarity turns effortful activities into pleasures, so infrequent use breeds aversion.

Sources (1)

Driverless cars could abolish traffic lights

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Rory notes a potential feature of driverless cars that humans may never cope with. In theory you would not need traffic lights: with enough precision, cars could criss-cross a junction at 70 mph, rumbling through alternately about three feet apart and judging the gaps perfectly. It would hugely increase the efficiency of the road network, but people would simply find it too terrifying.

The point: The engineering optimum can be psychologically unacceptable, so human comfort caps technical efficiency.

Sources (1)

Driving the wrong way into an American car park

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Rory finds Americans very absolutist and rule-based, the stuff of Larry David. In Los Angeles he unwittingly drove into a strip-mall car park exit and met a car leaving. Reversing onto a fast highway was too risky; the other driver only had to reverse ten feet. In Britain there'd be twenty seconds of bartering: hands up, 'my bad', a grudging reverse. His sister-in-law warned it would take a minute and a half, because something unusual had happened and the rules had been broken. Sure enough, the driver got irate before reversing. Brits, by contrast, shrug at naked Germans on a Fuerteventura beach.

“In the UK there's a sort of 20 second period of bargaining where you put up your hands.”

The point: Rule-bound cultures handle exceptions badly, while informal negotiation resolves them quickly.

Sources (1)

Estate agents keep buyer and seller apart until the paperwork is signed

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Estate agents go to great lengths to make sure the vendor and buyer of a house don't meet until a survey is done and documents signed, because if one dislikes the other personally, they won't sell or won't buy. When Rory told this story, someone said it happened to their mother: the agent reported an offer at the asking price, and she asked, 'It wasn't those shitty people who came round yesterday, was it? Well, I'm not selling.'

“It wasn't those shitty people who came round yesterday, was it? Well, I'm not selling.”

The point: Personal feelings can override large financial interests, so the human element still decides big transactions.

Sources (1)

Every number two place is underrated

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Rory's generalisation: every number one place is overrated and every number two is underrated. Fame confers itself winner-takes-all, as with Salcombe in Devon, too popular for its own good. As with brand leaders, the most famous is in more people's repertoires and bought more often by them, so it gains disproportionately. It might be 5 per cent better than the next, and 15 per cent worse when crowded. Go to Umbria not Tuscany, the Lot not the Dordogne, Chicago, the best big American city, not New York. You are in the right place if half the breakfast room are not tourists.

“Every number two place is underrated and every number one place is overrated.”

The point: Popularity compounds beyond merit, so the runner-up often offers better value.

Sources (1)

Everyone wants the healthy option, nobody buys it

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Taleb's lesson is that a brilliant mathematician using the wrong maths is dangerous: a whole edifice can rest on one wrong assumption. In food, the wrong assumption is trusting what people claim. In research groups, people want to seem responsible and middle class, so they ask for healthy options, then do not buy them. Sometimes fast food is a cheap hot lunch, sometimes a treat, and a salad is not a treat. The McDonald's salad still helps: parents who do not want a burger can take the kids.

“If you research people, they will always say, I want a healthy option. In the event, they don't buy the healthy option.”

The point: Stated preferences in research reflect self-image, not purchasing behaviour.

Sources (1)

Everyone who gets a stairlift wishes they'd done it sooner

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Richard Thaler said a nudge is acceptable if it leads to a behaviour the person doesn't later regret. Rory looks for a stronger category, which he calls 'reverse regretters' [?]: behaviours people wish they'd adopted earlier. Every elderly person who gets a stairlift says 'I wish I'd done this a year ago', as his late father did. His advice: if you've contemplated one for five seconds, just get one. When people wish they'd started sooner, the barrier is obviously psychological, not price or product.

“If you've even contemplated getting a chairlift for five seconds, just go and effing well get one.”

The point: Behaviours people regret not adopting earlier reveal psychological barriers ripe for behavioural solutions.

Sources (1)

Final reminder in red on the envelope

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Ogilvy sent a credit card offer in envelopes marked final reminder in red, because the deal was about to expire. The team thought it cute. A significant minority went bananas, complaining that their postman now thought they did not pay their bills. To Londoners this was incomprehensible: in a big city you hardly know your postman and do not fear gossip. In a small village the postman drinks in the same pub as your friends. Nobody on the team had considered it because Londoners would not be bothered.

“My postman thinks I don't pay my bills.”

The point: Teams miss how a message lands in contexts unlike their own, such as small communities.

Sources (1)

Find a cheap flat by asking what the Tube map omits

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All maps distort, and when everyone uses one for years the distortions shape behaviour. The Central line is overused because it is red and horizontal; the Victoria line looks curved, so is underused. Fulham residents think they live centrally because they're on the Tube. Friends moved from Fulham to Herne Hill for an extra bedroom, expecting the wilds, and found their commute halved. The map also hides that Paddington is an easy downhill walk to Lancaster Gate. Rory's tip: ask what isn't on the map.

“Get a copy of the Tube map and ask yourself what isn't on it.”

The point: Everyone relying on the same model creates bargains wherever that model is wrong, which is the problem with economics.

Sources (1)

Frederick the Great rebrands the potato

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Frederick the Great wanted Prussians to grow potatoes: two carbohydrate crops meant less bread price volatility and lower famine risk. But potatoes looked disgusting, peasants said even the dogs would not eat them, and compulsion failed, with some people reportedly executed for refusing. Plan B was marketing. He declared the potato a royal vegetable, planted a royal patch and had it guarded day and night, with secret orders not to guard it very well. Peasants knew that anything worth guarding is worth stealing, and soon there was a massive underground potato-growing operation.

“If something is worth guarding, it's worth stealing.”

The point: Making something look scarce and exclusive can achieve what compulsion cannot.

Sources (1)

From the 14-inch console to watching Deakins on a phone

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When Rory was young, the goal in life was a bigger telly. In a Carry On anecdote, Kenneth Williams's mother hears a neighbour has bought a 14-inch console set and quips that 14 inches would be enough to console anyone. Screens kept growing, and a cheap monitor still transforms productivity. Yet his children watch films lit by Roger Deakins on a phone the size of a letterbox. He also notices great films seem poor on a plane and poor films seem great, so the viewing context reshapes the judgement.

The point: The medium and setting change how good an experience feels, independent of its content.

Sources (1)

Ginger shots are expensive because they're small

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Marketing is more powerful than even marketers realise because so much value is perceptually determined. Sell a functional drink like Trip in a big can and it probably would not have worked. Anything medicinal or perceived to be potent must be small. The extreme case is ginger shots, at about two pounds fifteen: they are expensive because they are small. Proceed as if consumers are rational utility-maximisers with an objective view of reality and you will get a lot badly wrong, because most really interesting ideas have an element of the nonsensical.

“They're expensive because they're small.”

The point: Small size and high price signal potency in functional products.

Sources (1)

Hacking the body like an automatic gearbox

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Much of our physiology is not directly controllable: you can't will your heart rate up or your pupils to contract, though you can hack them obliquely by walking into a dark room. Rory likens it to an automatic gearbox. People who drive manuals say they'd hate the lack of control, but drive one long enough and you learn to control the gear it's in, by easing off the accelerator before a hill, not with a lever.

“You kind of control it through oblique means, not direct means.”

The point: Systems we can't command directly, bodies or people, can often be steered indirectly.

Sources (1)

Haemorrhoid cream and privately used products

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Mark Earls, author of 'Herd', pointed out that some products are immune to herd effects, with haemorrhoid cream top of the list. Apps are often used privately too, but you can still amplify social proof: the difference between a million and 100,000 users barely registers, while the difference between 407 and 14,000 reviews matters a lot. You can also build in gratuitous visibility, Seth Godin's 'Purple Cow': Monzo made its card coral, so it gets noticed even though most payments are on a phone.

The point: Social proof works in thresholds, and products used privately need deliberately added visibility.

Sources (1)

Hawaiian shirts solve male obesity

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Rory opens his talk by declaring there is a natural solution to everything. The answer to the male obesity crisis is simple: Hawaiian shirts, because the bigger you are, the better you look in one. He jokes it is no surprise Tom Selleck was so keen to play Magnum PI. The gag sets up his theme that changing the context or presentation of something can change how it is perceived without changing the thing itself.

“The solution to the obesity crisis for men: Hawaiian shirts, the bigger you are the better you look.”

The point: Reframing presentation can turn a perceived flaw into an asset.

Sources (1)

His Welsh grandmother found Some Like It Hot simply funny

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Explaining why gender is less of a flashpoint in Britain, Rory notes the UK has had pantomime for 200 years, men dressing as women and women as young boys, plus Shakespeare's cross-dressing. Some Like It Hot was highly controversial with American studios because men dressed as women. His grandmother, a conservative woman in provincial Wales, went to see it, and it would never have occurred to her there was anything controversial about it. It was simply funny.

“It would not have occurred to her literally that there was anything controversial about this at all.”

The point: Cultural context determines whether the same content reads as harmless or provocative.

Sources (1)

House & Garden kitchens contain nothing with a plug

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In a self-confessed rant, Rory argues that possessiveness over kitchen worktops is an obstacle to UK economic growth: try buying an air fryer and an ice cream machine and every inch is fought over. He asked someone from House & Garden why the people in the magazine had spent £18,000 on a kitchen yet owned no microwave or TV. They said they take all that stuff out before the photo shoot. So the whole world labours under the delusion that a proper kitchen contains nothing with a plug attached.

“The entire world is labouring under the delusion that a proper kitchen contains nothing with a plug attached.”

The point: Aspirational imagery quietly sets norms that suppress useful consumption.

Sources (1)

How do you sell the last vegetables at a farmers' market?

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Daniel Kahneman emailed Rory and a handful of Nobel laureates a friend's problem: an Austin farmers' market seller with healthy margins, selling lumpy vegetables to hipsters, could never quite sell out. Scarcity works for identical goods, but we assume the last cucumber is a bit manky. Richard Thaler, being in Chicago, reached for price; others for scarcity. Rory suggested something different: at the end of the day the seller loses interest, starts packing the van, the table is half covered, and it no longer looks as if you are supposed to buy.

“Maybe it's something completely different.”

The point: Before reaching for price or a named bias, look for simple contextual cues that are actually putting people off.

Sources (1)

Human behaviour is a cryptic crossword clue

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Take the clue 'Does perhaps rush around (4)'. The answer is 'deer', which seems insane until you see that 'does' is the plural of doe and 'rush' is a reed, spelled backwards. The surface meaning misleads you into reading both as verbs. Rory argues much human behaviour works the same way: there is a plausible surface explanation and a deeper hidden purpose, and you only crack it once you stop taking the clue literally.

“Human behaviour is an enigma. Learn to crack the code.”

The point: Look past the stated reason for a behaviour to the cryptic one underneath.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Ice cream sales follow sunshine, not temperature

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One of the strangest things about human behaviour, Rory says, is how little ice cream we eat when nearly everyone loves it: there are few social occasions where it is permitted, and bringing one into the workplace would seem weirdly childish. Stranger still, Europe's biggest ice cream consumers are in places like Russia and Sweden, not Italy. What drives consumption is not temperature but sunshine: when the sun breaks through briefly, Swedes strip off, sunbathe half-naked in Stockholm and buy an ice cream.

“The thing that drives ice cream consumption isn't temperature, it's sunshine.”

The point: Consumption is governed by social permission and cues, not by the obvious functional driver.

Sources (1)

ICI invented miracle fabrics, and everyone wore jeans

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Near where Rory grew up, close to Pontypool, many people had retired from ICI's nylon factory and its R&D unit. They lamented that they had developed remarkable fabrics, ones that stayed clean, kept you cool, even artificial silk, and then everybody went and wore jeans. They had asked what consumers wanted logically; what consumers wanted from trousers was a weird psychological connection with the American West. Rory, who owns no jeans and finds them uncomfortable and hard to maintain, says: go figure.

“We developed tons and tons of remarkable fabrics, and then everybody went and wore jeans.”

The point: Products win on psychological meaning, which logical R&D cannot anticipate.

Sources (1)

In America, a speed limit means it's safe to go that fast

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Rory discovered that in the US a speed limit is not just a restriction but advice: a 60 sign means it is safe to drive at 60. In Britain, the national speed limit sign leaving a Kent village means 'use your own judgement; it is not illegal to hit 60 where conditions allow.' So Americans ask if Brits are insane to drive winding lanes at 60, and Rory's American-programmed Mustang Mach-E sees a 60 sign and immediately accelerates to 60.

“In the United States, that 60 sign means it is safe from now on to drive at 60 mph.”

The point: The same sign carries different meanings in different cultures, changing behaviour.

Sources (1)

Introduce yourself to everyone in the Tube carriage

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The Tube has its own social rules. Rory recalls the Hungarian humorist George Mikes, whose routine of advice for foreigners in Britain deliberately gave inappropriate tips, including: on entering a London Underground carriage, be sure to introduce yourself to all the passengers. In Australia that might be fine on a long journey; in Britain people would assume you were a serial killer, though northerners might chat.

“On entering a London Underground carriage, be sure to introduce yourself to all of the passengers.”

The point: Social norms vary sharply by place, and violating unwritten rules marks you as a threat.

Sources (1)

Italian coffee rules aren't sophistication

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On the Italian rule against cappuccino after about 11am, Rory warns not to let Italians tell you it is because they are sophisticated: a large number of them are lactose intolerant. And while we admire them for drinking an unbelievably sour espresso, nearly all of them have dissolved about three sugars in it.

“Don't allow the Italians to tell you that's because they're sophisticated.”

The point: Customs that look like refined taste often have mundane practical origins.

Sources (1)

Jeremy Bullmore's dinner jacket

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The advertising man Jeremy Bullmore observed that if you turn up at a black tie event in a suit because you cannot afford a dinner jacket, that is a compromise and you feel dreadful. If you turn up in a suit because you have a dinner jacket at home but cannot be bothered or object to wearing it, that is a choice and you feel absolutely fine. The product is identical; the meaning, the sweeping of the floor, is completely different.

“There's a huge difference between a choice and a compromise.”

The point: The same behaviour feels good or bad depending on whether it reads as chosen or forced.

Sources (1)

Kahneman, work for a couple of days mid-holiday

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Going independent means work and leisure stop being mutually exclusive. Rory spent about eight days in Tenerife recently, three of them working. Daniel Kahneman even argued you should work a couple of days in the middle of a holiday, because constant leisure loses its novelty: loll by the pool for two days, do a day's work, and the pool feels more enjoyable again. Work in the morning, holiday in the afternoon is a fantastic combination the conventional world of work never allowed.

“They're not mutually exclusive, they're combinatorial.”

The point: Interrupting a pleasure renews it, so mixing work and leisure can increase enjoyment of both.

Sources (1)

Koalas and kangaroos are equally famous, not equally common

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Rory gives a classic example of salience bias. British people probably assume that because koalas and kangaroos are equally famous, there are similar numbers of each. In fact kangaroos are insanely common, hopping all over the countryside, while most people, including his Australian host, have only ever seen a koala in a zoo.

The point: Fame and salience distort our sense of how common things are.

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Logic kills off magic

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Logical schemas are modelled on simple physics and children's maths: solvable, with a single right answer. By their rules there can be no magic. Logic says that to improve people's experience of a hotel you must improve the hotel itself, not their perception of it. That is wrong-headed: context is a marketing super weapon precisely because it works magically. The fact that Apple, the first highly subjective technology company, is worth around a trillion dollars should prove the point.

“Context is a marketing super weapon, and it works because it works magically.”

The point: If you assume people perceive objectively, you confine yourself to expensive objective improvements and miss cheaper psychological ones.

Sources (1)

Look up, you're in a shed

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Rory tells the audience the reframing trick is being played on them right now. There is dry ice, the most impressive screen backdrop he has presented in front of, magnificent lighting, cubes and fantastic sofas. Then he tells them to look at the roof: they are in a shed and had not noticed. Without all the staging they would feel like they were sitting in a prison.

“Just look above your head. You're actually in a shed.”

The point: Value is a product of how we look at something, not only of what it is.

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Louis XIV would have given half of France for your TV

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Status is a relative currency, as the 1930s joke has it: a rich man is anybody who earns more than his wife's sister's husband. Rory finds that sad. Had you visited Louis XIV with a 55-inch LED TV, he would have given you half of France for it. But because everybody has one, we don't regard it as magical. We derive less pleasure from amazing things once they become widely available.

“If you'd gone to Louis XIV with a 55-inch LED TV, he would have given you half of France for that.”

The point: We value things relative to others, so abundance erodes the pleasure of genuine marvels.

Sources (1)

Medicine has to taste weird

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We believe drugs are effective in proportion to how odd they taste. Nobody in oncology wants to be asked 'strawberry or blackcurrant?' Rory never trusted Nurofen Meltlets because they were too tasty. Health food tastes weird: drink wheatgrass and you think it must be doing you good, though you could lick the underside of your Flymo with much the same effect. A tonic wine, Sanatogen [?], reportedly added its last ingredient purely so it wouldn't taste too nice.

“You can lick the underside of your Flymo and have much the same effect.”

The point: Unpleasantness is read as a signal of efficacy.

Sources (1)

Men are averse to weddings, not to marriage

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Half joking, Rory questions the assumption that men dislike marriage, noting that married men tend to live longer and happier lives. Perhaps what puts them off is the wedding: days spent debating flowers and coloured sashes. Picture instead a wedding redesigned as a few days of travel and passion, with friends buying you premium electronics, and men would be begging reluctant girlfriends to commit. He adds that after the wedding nobody buys the husband a present again, or if they do it is a tablecloth.

The point: Immediacy bias means the up-front experience of a decision can outweigh its long-term rewards, so redesigning the entry point changes uptake.

Sources (1)

No ads until you fix the lighting and flooring

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A colleague who worked on Marks and Spencer for years always wanted, but never dared, to tell them he would not work on any advertising until they sorted out the flooring and lighting in the clothing department. Rory suspects one procurement process buys flooring and lighting for both food and clothing. You cannot get someone to spend 250 pounds on clothes and shoes under industrial lighting on an easy-clean floor. He jokes there is a rule that spending over 100 pounds entitles you to a rope-handled bag; a polythene bag after spending 200 feels wrong.

“You can't get someone to spend 250 quid on clothes and shoes if you have basically industrial lighting and a bloody easy-clean floor.”

The point: The environment must match the price point, or it silently undermines the value of good products.

Sources (1)

No vomit on the streets is a bad sign

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Rory complains that there is no vomit on London's streets any more. Vomit on the street is bad in and of itself, but statistically it is a tail indicator of a hundred other people having a good time who are not being sick. So if nobody is being sick in the street, the invisible downside may be that far fewer people are having a good time.

“It's a tail indicator of a hundred other people having a good time who aren't being sick.”

The point: Eliminating a visible harm can hide a much larger invisible loss.

Sources (1)

Nobody says they bought an EV because friends had one

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Very few people will say 'I bought an electric car because two of my friends have one'. They will cite the environment or cost savings. Yet, Rory says, the single biggest determinant of whether people buy an electric car is whether they already know other people who own one. Because customers misrepresent their own reasons, businesses misdirect huge effort.

The point: Social proof drives decisions that people later explain with rational reasons.

Sources (1)

Nobody sends back corked wine

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Quoting Michael McIntyre, Rory notes that wine is the only thing a restaurant asks you to smell to check it is not off: nobody brings you the milk for your coffee and asks you to check it. Friends in the restaurant trade believe most people pretend to like wine. Serve a corked bottle and diners nearly always drink it. The only clue is that they do not order a second, because nobody is confident enough to say something is wrong.

“Even if you serve a bottle of wine that's fundamentally corked, people will nearly always drink it.”

The point: Fear of social embarrassment makes people pretend to enjoy things and hides product failure.

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Nothing is as important as you think while thinking about it

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Asked for the most important lesson of his life's work, Daniel Kahneman didn't cite prospect theory; he said nothing is as important as you think it is while you are thinking about it. Rory applies it: a diner's menu makes choice salient, so choice seems to matter; McDonald's makes speed salient. The EasyJet pilot moved attention from 'no gate' to 'no walk'. Boutique hotels did the same, dropping 1970s opulence and putting an espresso machine in the room.

“Nothing is as important as you think it is while you are thinking about it.”

The point: Whatever you make salient is what people judge you on, so choose the focus.

Sources (1)

Once a society is rich, most problems are problems of perception

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Engineers, doctors and scientists are obsessed with solving the problems of reality. But once a society reaches a basic level of wealth, Rory says, most problems are actually problems of perception. So the question becomes how many of life's problems can be solved by tinkering with perception, rather than the tedious, hard-working and messy business of trying to change reality.

“Most problems, once you reach a basic level of wealth in society, are actually problems of perception.”

The point: Changing how something is perceived is often cheaper and more effective than changing the thing itself.

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Optimise for perception, not reality

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New product design goes to engineers, who want to impress other engineers and be superior on engineering dimensions. But we don't perceive reality objectively. Engineers over-optimise and miss the law of diminishing returns: consumers really notice if something is ten times better, but barely care if it is 1.3 times better. Many businesses optimise for objective reality rather than perception. Rory's advice: don't try to change the objective reality of something, change how it is experienced.

“Optimise for perception, not for reality.”

The point: Investment should target what people perceive, since objective gains below a perceptual threshold earn nothing.

Sources (1)

Ordering screens sell more two-burger meals

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Rory is clear that ordering screens are great: queues are shorter and many people prefer them. They also increase the number of men ordering a meal with two burgers in it, because there is no social embarrassment of asking a person who can tell you are eating alone.

“You don't have the social embarrassment of requesting that from someone who can tell you're a single customer.”

The point: Removing a human witness changes what people feel able to choose.

Sources (1)

Oxford colleges, Harry Potter or tumbleweed

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A friend who is warden of an Oxford college told Rory that tourist visits have completely bifurcated: some colleges swarm with tourists, others get nobody. The entire discriminator is whether the college appeared in a Harry Potter film. New College has a tree that featured in one, and tourists swarm in. Next door, an architecturally magnificent college that never appeared gets tumbleweed. Likewise, a replica Harry Potter train would bring people to London just to travel to Manchester.

“The entire discriminator between those two is whether the college features in a Harry Potter film.”

The point: Fame and story, not intrinsic quality, concentrate attention and demand.

Sources (1)

Paella is a failed biryani

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Rory thinks Spanish cooking has performed spectacularly in the last 20 years, arguably rivalling France and Italy, but considers paella a failed biryani. Authentic Valencian paella is made with rabbit and vegetables; the chicken, prawn and chorizo version is a Tex-Mex-style adaptation that Valencians regard as we might a Hawaiian pizza. Similarly, someone found that many Italian classics, supposedly handed down by generations of grandmothers, really date from the 1940s and 50s.

“Paella is actually a failed biryani.”

The point: Supposedly ancient traditions are often recent, mass-market adaptations.

Sources (1)

Pays for itself in ten years, or a 10% annual return?

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Talking with the behavioural economist George Loewenstein, Rory noted that solar panels are sold on the line it should pay for itself in ten years. That sounds like shelling out a fortune and, a decade later, just getting your money back. Framed as an investment, a 10 per cent annual return, it is far better than almost anything else available. Nobody sells a 10 per cent investment product as get your money back in ten years.

“Nobody sells a 10% investment product on the 'get your money back in ten years'.”

The point: The same economics framed as an investment rather than a grudging outlay changes how attractive it feels.

Sources (1)

Perceived value is the greenest value

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Rory disputes the view of marketing as fairy dust sprinkled on a product's real, intrinsic value. We value things according to what they mean, not what they are, and meaning depends on context, so storytelling, framing and recontextualisation create real value in the mind just as a factory does. He adds, admitting it is ambitious, that perceived value is environmentally friendly: imbuing a product with meaning uses far less carbon than making it three times bigger or five times faster. Psychological moonshots are easier than technological ones: a train ten times faster is near impossible now, ten times more enjoyable is doable.

“Value can be created in the mind every bit as much as it can be created in the factory.”

The point: Creating meaning is a legitimate, cheaper and lower-carbon route to value than physical improvement.

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Pizza Express pizzas seem to have shrunk

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Everyone was convinced Pizza Express pizzas had got smaller, which the company denied, saying it still used the original dies. Rory suspects it is because everyone else's pizzas got bigger: Domino's and others started making enormous ones, so by comparison Pizza Express looked small, when they had seemed surprisingly big at launch. He adds that he hopes Britain does not become like America, where what matters about a restaurant is how happening it is rather than how good the food is.

The point: Perceived size and value are relative to the surrounding market, not absolute.

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Placebo education

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Picking up an idea from Tyler Cowen's Marginal Revolution blog, Rory jokes that education does not work by teaching you things. It works by giving you the impression you have had a very good education, which gives you an insane sense of unwarranted self-confidence, which then makes you very successful in later life. "So, welcome to Oxford, ladies and gentlemen."

“It actually works by giving you the impression that you've had a very good education, which gives you an insane sense of unwarranted self-confidence.”

The point: Some of the value of institutions comes from the confidence and perception they create, not their content.

Sources (1)

Purple doesn't exist

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There are no purple photons: purple is not on the light spectrum. When you see red and blue, the brain should average them to green, but the green sensor in the middle detects nothing. Rather than declaring a system error, the brain invents purple, a colour that essentially means 'not green'. Rory's worry about big data is that it assumes a neat mapping from objective reality to behaviour, when perception can make identical things look different, as with the dress, and create things that exist only in the head.

“It's a colour to represent the weird unexplained absence of green.”

The point: Behaviour runs on perceptions the brain constructs, which may not correspond to anything objectively real.

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Radio is the medium of the industrious

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Rory watches podcasts on YouTube partly because his TV has his best sound system, but mainly because they don't demand full attention. In fairness to tea, coffee and tobacco, he jokes, they are three drugs you can consume while performing other useful functions, which is not generally true of acid. Likewise radio is the medium of the industrious, because you can listen while getting on with something else. Video podcasts give scene-setting you glance up at, without the undivided attention television demands.

“Tea, coffee and tobacco are three drugs you can consume while performing other useful functions.”

The point: Products that coexist with other activities fit into life more easily than those demanding full attention.

Sources (1)

Raymond Loewy's fan that was too quiet

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Humans must both stand out and fit in, and brands and products tread the same line, captured in Raymond Loewy's MAYA principle: most advanced yet acceptable. Loewy designed a fan so quiet that people assumed it was not working. Someone told Rory they were using AI to design a silent electric razor, and he objected that the crackle and whine is how he knows it works. Digital cameras need a click and electric cars get artificial hum. A Top Gear presenter found a near-silent Rolls-Royce Spectre so quiet that a faint air-conditioning noise drove him nuts.

“You can be too weird to succeed.”

The point: Innovations need familiar cues to be accepted, and removing a cue such as noise can make a product seem broken.

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Rindless cheddar, then rind at a premium

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Rory cites Jeremy Bullmore, former JWT creative director, who recalled that in his childhood all cheddar came with a rind. Then someone sold rindless cheddar at a premium as a convenience: no paying for rind, no cutting it off. Some 25 to 30 years later, once memories had faded, producers launched farmhouse artisan cheddar with the rind left on, also at a premium. Rory calls this recursive fashion, one of the curses of capitalism: human neophilia means what is different grabs attention, and when old things return the context gives them new meaning.

“One of the curses of capitalism is recursive fashion.”

The point: Novelty can come from reviving the old, because meaning depends on context and memories are short.

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Rush salons spend £30,000 on the loos

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When the Rush hairdressing chain opens a salon it spends £30,000 on the toilets. Most customers never use them, but the 10 per cent who do expect a mop bucket and stacked hair products, like walking through the 'staff only' door of a five-star hotel. Rush gives them gold taps instead: optimising for surprise, not predictability. Buc-ee's in Texas and a Turkish petrol station chain also make the toilets the hero. Since the brain predicts and attends to what's unexpected (Andy Clark's The Experience Machine), emotional effect comes from the DoubleTree cookie, not from meeting service levels.

“We're optimising for surprise. We're not optimising for predictability.”

The point: Delight comes from exceeding expectations in neglected places, not from uniform competence.

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Ryanair is always better than you feared

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People call Ryanair's survival a mystery, since everyone affects to despise it. Rory says its genius is that the real experience is always slightly better than you expect. The night before, you're terrified you'll be fined 70 pounds because your cabin bag is a millimetre too large. Then it's kind of all right, and you land thinking: I wasn't pistol-whipped by Serbian mercenaries, so I'll chalk that up as a win.

“I wasn't actually pistol-whipped by Serbian mercenaries, so I'll chalk that up as a win.”

The point: Satisfaction is measured against expectation, so low expectations met are a win.

Sources (1)

Shave the first wines, splurge on the last

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Guidara told his sommelier: on a wine pairing, don't spend $20 on each of five wines as most restaurants do. Give them a $15 wine, then another, and use the saving to spend $50 or $60 on the final one, perhaps a grand cru Burgundy or a cracking dessert wine. It's the peak-end rule: don't do everything quite well; have one standout moment and put it at the end, at no extra cost. Rory links it to Gary Stevenson's point that economic models rely on a single representative agent, treating the average as the whole. Don't optimise for average.

“Don't optimise for average.”

The point: Reallocating the same budget into one memorable peak, placed at the end, transforms the remembered experience.

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Sour grapes and sweet lemons

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Rory sees more 'defensive opinion forming' now: as a child everyone admitted wanting an Aston Martin but couldn't afford one; now young city dwellers without one pretend they don't like cars. Aesop's sour grapes is pretending you never wanted what you can't have. Its counterpart is sweet lemons: something bad happened, so you reframe it as positive, 'my six years in Leavenworth were a really formative experience'. Bad things you had to have become positives; good things you couldn't have become negatives. Aesop, 2,500 years ago, was the first behavioural scientist.

“My six years in Leavenworth prison were a really formative experience.”

The point: People reshape their preferences to fit their circumstances, so stated attitudes can be self-protective rationalisations.

Sources (1)

Spotify stopped at 220 milliseconds

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Users complained about Spotify's buffering, so managers asked the engineers how low they could get it. They came back with about 220 milliseconds. Asked whether they could do better, they said yes, but there was no point: to the human brain 220 milliseconds is near enough instantaneous, while 250 is noticeable. As with a Retina screen, past a certain threshold we simply don't notice.

“Making objective reality better than our ability to perceive it is a really dumb effort.”

The point: Optimise to the threshold of perception, not beyond it.

Sources (1)

Starbucks deliberately slowed its baristas

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Sometimes the value lies in the time spent, as with Saturday farmers' markets, which are essentially Tesco reversed: seven stops and a chat with every seller. Starbucks restricted baristas to making no more than two drinks at once, deliberately slowing service, because batch-processing coffee made customers feel they were on a production line rather than getting a handmade drink.

The point: Visible effort and time can be part of the product, so efficiency can destroy value.

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Students cycle, then become environmentalists

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Rory teases the Oxford students that they mostly go round on bicycles and therefore become environmentally conscious, even though they think it is the other way round. He offers it as a pointer to a bigger idea worth investigating: that our attitudes are often a product of our actions rather than the cause of them.

“You ride bicycles and therefore become environmentally conscious, even though you think it's the other way around.”

The point: Attitudes often follow behaviour rather than drive it.

Sources (1)

Tables before airport security for the water bottle

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The number of people trying to carry water through airport security has not fallen in eight years, despite rising awareness of the rule. Ogilvy's hunch is choice architecture: since low-cost airlines began charging for hold luggage, most frequent flyers own a maximum-size clamshell carry-on, which you cannot open in public without spilling your underwear on the floor. One simple solution, with no money going to Rupert Murdoch: put tables in the run-up to the security lane so people can retrieve the bottle without hideous embarrassment.

“An awful lot of behaviour is driven not by information, not by persuasion, it's just driven by the environment in which people find themselves.”

The point: Many behaviour problems are caused by the environment, not a lack of awareness, so fix the environment.

Sources (1)

Telephone conferences as sensory deprivation

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Rory always thought telephone conferences were disastrous because they were a form of sensory deprivation: with nothing to look at, it was almost impossible for your mind not to wander. One colleague took delivery of a flat-screen television and demanded it be put on the wall during a client conference call. So he was not surprised that video calls turn out to be a reasonable approximation of meeting in person.

“Telephone conferences were a form of sensory deprivation.”

The point: Attention needs something to anchor to, which is why audio-only meetings invite mind-wandering.

Sources (1)

The 2016 cornflake

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Rory argues wine is overrated: there is never a situation where white wine is nicer than a gin and tonic, and the fuss over distinctions is like The Princess and the Pea. It is also inconsistent. If he opened a box of cornflakes to find them soggy and black and Kellogg's said it was the 2016 cornflake with slightly late rainfall, he would not savour the new notes, he would tell them to sort their act out. With wine, total lack of quality control is treated as acceptable, even interesting.

“I want the third bloody box to taste like the first.”

The point: Category conventions decide whether inconsistency reads as a flaw or as a feature.

Sources (1)

The AI that saw an animal in white noise

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Tim Harford told Rory about an AI trained brilliantly to recognise animals. When shown pure white noise, it claimed there was an animal there, because it had never been shown anything that wasn't an animal. It had no way of saying 'you're taking the piss, this is just noise', so it picked whichever animal was most plausible. The same confabulation happens in humans, which is why we see faces in clouds. Rory adds that AI's recent leaps have nonetheless made him less sceptical.

“It had no conception of being able to say: you're taking the piss here, this is just a load of crap.”

The point: Systems trained only on positive examples will find patterns in nothing.

Sources (1)

The antiseptic sting as proof it's working

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Some pain is enjoyable. Put antiseptic on a cut on your shin and you want it to sting, because the sting is evidence of efficacy. The fact it hurts proves it is working, so your reaction to the pain is not entirely discomfort: you have reframed it as proof that it is doing its job.

“The fact that it's hurting proves it's working.”

The point: Unpleasant sensations can be valued as signals of effectiveness.

Sources (1)

The caller who said litter was a good thing

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Aged about 16, around 1979, Rory heard a Jimmy Young radio phone-in about litter, with caller after caller demanding that people who threw litter from cars have their hands chopped off. At the very end, a Mr Foulk [?] rang from Oxford to say he thought litter was a very good thing: everywhere interesting, like New York or Venice, has rubbish all over the place, whereas the Cotswolds have little litter but are as boring as hell. Rory later met him at university: Ray Foulk [?], who organised the Isle of Wight festivals with his brothers.

“If you go to the Cotswolds there isn't much litter but it's as boring as hell.”

The point: An apparent negative can be a sign of the vitality we actually value.

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The doner kebab as the world's finest food

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Posh Turkish restaurants have one rule: you cannot sell a doner kebab. Rory once made the perverse argument that the doner kebab may be the world's finest food, because when your brain is drunk and stripped of all its protective inhibitions, it is what you really want to eat. If we are intellectually honest, we have to acknowledge its magical property.

“When your brain is drunk and stripped of all protection, it's what you really want to eat.”

The point: Preferences depend on state and context, so judging food in only one state misses its value.

Sources (1)

The English are secretly good at understanding mangled English

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Rory argues the English are actually good linguists in one respect: they are practised at understanding English spoken oddly by non-native speakers. Get the gender wrong in French, ask for 'la limonade', and nobody understands for six minutes. That might be wilful perversity, he jokes, but since there have been no recorded cases of wilful perversity in France in 200 years, that explanation can be discounted. In America, where people rarely hear unusual accents, he cannot pronounce 'water' in a way anyone understands.

“Since there have been no recorded cases of wilful perversity in France in the last 200 years, I think this explanation can be discounted.”

The point: Exposure, not innate talent, explains much of what we attribute to national character.

Sources (1)

The florist's bouquets in public toilets

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A creative team briefed to advertise a small florist in a Gloucestershire town noticed that nobody registers flowers in a five-star hotel because they are expected there. So they took the shop's leftover flowers at the end of each week, made up a few bunches and left them where nobody expects flowers: a phone box, the men's and women's public toilets, a bus shelter, the police station. A small card underneath suggested surprising someone with flowers and gave the shop's details. In a public lavatory, Rory says, a bunch of flowers really lands.

The point: The same thing has far more impact in an unexpected context, so where a message appears can matter as much as the message.

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The house with a pool sold cheap because of old-lady furniture

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A clever former colleague bought a house with a pool in the Surrey Hills for the price of a flat in Croydon. Asked why it was so cheap, she explained it was full of old-lady furniture because the previous owner had been elderly, as is typical of five-bedroom British homes. Buyers judge the previous occupant's taste from the decor and mark the house down, even if they plan to redecorate anyway. Rory admits it is not totally irrelevant: if you knew Rick Rubin had lived there, you would buy it sight unseen.

“You should ignore the photographs of interior decor when you look at a property.”

The point: Buyers overweight easily changed surface features, which creates bargains for those who see past them.

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The iMac, a computer without turning the room into an office

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Good mathematicians know the limits of models; economics has a convincing, internally consistent model that is not true. Ask an economist why Uber succeeded and you get economies of scale. Rory argues most disproportionately successful companies overcame a psychological obstacle to adoption. Apple stopped making computers ugly. The iMac said you could have a computer in a room without turning that room into an office; before, a beige box made it a space for photocopiers and fax machines. No spreadsheet or focus group would have produced that. Apple's coders asked what Steve even did.

“You can have a computer in a room in your house without turning that room into an office.”

The point: Breakthrough success often comes from removing an unmeasured psychological barrier rather than improving specifications.

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The Kano model, when added features make people less happy

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Noriaki Kano of the University of Tokyo plotted how features translate into satisfaction, and some are negative. TV remotes with dozens of buttons frighten people, some tape over all but volume and channel, so Samsung's six-button remote is welcome. Hotels think taking your bag is service, but after a day guarding your suitcase you hate a stranger grabbing it. A non-leaking milk carton is a table stake: nobody gets excited, but a leak loses you for ever. Airlines once competed on 45 versus 57 per cent seat recline, which nobody cared about: humans are comfortable sitting or lying, nothing in between.

“There are two comfortable positions for humans: sitting in a chair and lying in a bed.”

The point: Features relate to satisfaction non-linearly; some add nothing, some subtract, and only a few delight.

Sources (1)

The Knobe effect, did the CEO intentionally harm the environment?

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In an experimental philosophy thought experiment, a chief executive is told siting a factory away from the river is better for the environment. He says he doesn't care, put it where it makes most money, and it goes by the river. Did he intentionally harm the environment? 82 per cent say yes. In the mirror case, where the profitable site happens to be away from the river, only about 18 per cent say he intentionally helped the environment. Self-interested motives get blamed for harm but never credited for good.

The point: Our judgements of intention are asymmetric, so profit-driven actions are penalised for bad side effects and ignored for good ones.

Sources (1)

The Korean restaurant with an empty window

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For years Rory worked in Soho Square and loved Korean food, and right round the corner was a Korean restaurant. But he never saw anybody in there, so he never went in. Only later did he learn that, perhaps for cultural reasons, they never seated people by the window. The restaurant was half full or full all the time, but everyone sat at the back, leaving the visible window section permanently empty.

“We make these kinds of inferences all the time without being aware of doing so.”

The point: Customers infer quality from visible crowds, so where you seat people is a marketing decision.

Sources (1)

The Mercedes seat that hugged you round corners

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Rory used to have an old but fancy Mercedes whose seat squab inflated on one side as you went round a corner, like airbags gripping you. It made driving feel like a mission to Mars, incredibly thrilling without being any faster, so he always chose to drive that car. No advertising campaign ever mentioned it, to his knowledge; in the good old days, someone would have found that USP and banged a drum about it.

“It just made it incredibly thrilling to drive without being any faster.”

The point: Small sensory features can change the experience of a product more than its measurable performance.

Sources (1)

The mini ice cream cone on the way out

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At Flat Iron, the restaurant co-founded by Charlie Carroll, diners are given a little token at the end and leave onto the street with a miniature ice cream cone. Rory admits such touches can seem a bit gratuitous, even hokey, but the human brain notices what it wasn't expecting much more acutely than what it was. Combined with the peak-end rule, a surprise at the end colours memory of the whole meal.

“You notice what you weren't expecting much more acutely than things you were.”

The point: A small surprise at the end of an experience punches far above its cost in memory.

Sources (1)

The Monday wood-fired pizza van

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In Rory's Kent village, a wood-fired pizza van turns up on Mondays only, alongside a souvlaki stall. He is convinced his children ate pizza from that van much more often than they would have if there had been a pizzeria at the end of the drive. It is the scarcity effect: if we don't buy it now, we'll wait another seven days. The rest of the week the van is somewhere else, and he has no idea where.

“If we don't buy it now, we'll have to wait another seven days.”

The point: Limited availability can increase consumption compared with constant access.

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The only naturist in Sevenoaks

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New behaviours form in pockets: you need to create a space where they are normal. Rory's example is naturism. You would not have much fun being the only naturist in Sevenoaks; you would be known as Pervy Dave and nobody would let their children near you. But create a beach and you start making progress. Geography matters for visibly consumed goods, and many products are advertisements for themselves, such as the green flash on electric cars' number plates.

“You wouldn't have much fun being the only naturist in Sevenoaks.”

The point: Unusual behaviours spread from concentrated pockets where they already feel normal, not from scattered individuals.

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The Parthenon has no straight lines

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The Greeks understood perception. There is not a single straight line in the Parthenon: the floor bows upwards and the columns are fatter in the middle than at top and bottom. It is not designed to be perfect, it is designed to look perfect, counterbalancing the distortions of human vision. The vertical bars of the Rolls-Royce radiator grille use the same trick, entasis: fatter in the middle so they look parallel.

“It's not designed to be perfect, it's designed to look perfect.”

The point: Good design corrects for how people perceive, accepting objective imperfection to achieve perceived perfection.

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The pee colour chart, making the important salient

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For NHS Nightingale staff on 12-hour shifts, the team produced a chart for checking hydration by the colour of your urine. Rory says it worked on him personally for a year, though he warns that Berocca throws off the experiment badly, adding that in a power cut you could light your home with its eerie yellow glow. The serious point is about salience: in the normal course of things, the salient things are not important and the important things are not salient. Small interventions that make what matters salient at the moment it matters, as in factory safety work for Kimberly-Clark, are an overlooked design principle.

“The salient things aren't important and the important things aren't salient.”

The point: Good design surfaces what matters at the moment of action, because attention follows salience, not importance.

Sources (1)

The RAC Club versus a London flat

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Rory asked a member what it cost to join the RAC Club. About £1,500 a year, he was told, which sounded incredibly expensive for a club. But compared with buying a flat in London it is roughly half the council tax, you can stay for £80 a night, and it has a swimming pool, a Turkish bath, three restaurants, two bars, a garden, a staff of 20 and its own post office. Nobody ever asks 'do I buy a flat or join a club?' because that comparison is too wide.

“Nobody ever looks at: do I buy a flat or do I join a club? That's just a little too wide to set the comparative net.”

The point: Price judgements depend entirely on the comparison set, and System 1 draws that set very narrowly.

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The real power play is not to do it

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Asked how an adman could persuade Donald Trump not to invade Greenland, Rory says you would have to do what someone once managed with a Roman emperor: persuade him that the real power play is not to do something. The emperor was told the most powerful thing you can do is not to have someone killed but to forgive them. You would have to reframe the whole thing in Trump's language.

“The most powerful thing you can do is not to actually have someone killed, it's to forgive them.”

The point: To change a powerful person's behaviour, reframe restraint as the stronger display of power.

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The real value of the BA lounge

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Rory likes riffing with Nassim Taleb on things valued for reasons other than the ones people give. You buy a swimming pool so you can walk round your garden in a bathing costume without feeling odd; a dishwasher is mostly a cupboard for mildly unsanitary plates. Ask why people like the BA lounge and they cite whisky, sandwiches and Wi-Fi. But unconsciously the value is trust: you leave your laptop and bags on a chair and wander off for food or the loo. Moving from London to the country feels the same.

“The reason we buy dishwashers is to keep dirty plates out of sight.”

The point: Much of a product's value is unconscious trust and ease that customers never articulate.

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The sarcastic barman who split the reviews

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Rory and his wife stayed at a very good-value Italian hotel with massively polarised reviews. The cause was the barman who brought toasted sandwiches, beer and ice cream to the pool. To British guests he was hysterically funny and charming, with a very dry, sarcastic sense of humour, an honorary Brit. Many American guests found him maddening, because being served with sarcasm is so incongruous with American service culture that they read it as rudeness.

The point: The same behaviour can delight or offend depending on the cultural frame the customer brings.

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The telephone sign nobody under 20 can read

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Rory mentions a viral video where a father hands his children an old dial telephone and asks them to call a number; they stare at it baffled for ten minutes. It struck him that we still use a dial phone with a receiver as signage pointing to a telephone, yet for anyone under about 15 or 20 it might as well be a Chinese character. He also worries that drivers who never drive a slightly bad car, like pilots over-reliant on autopilot, may lose instinctive skills.

The point: Symbols and skills depend on shared experience, and silently lose meaning when that experience disappears.

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The three worst and three best words in English

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Straight after the story of the airport bus, which everyone assumes is rubbish simply because it is a bus, Rory offers his joke about how much emotional weight a few words carry. The three worst words in the English language are 'bus replacement service'. The three best words are 'all-day breakfast'.

“The three worst words in the English language: bus replacement service. The three best: all-day breakfast.”

The point: A few words of framing can carry an entire emotional verdict on an experience.

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The two dogs and the electric floor

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In an experiment Rory attributes to Daniel Pink's writing, two dogs share a box with an electrified floor that delivers occasional shocks. One dog has a button that stops the shock when it nuzzles it; the other does not, yet suffers exactly the same amount of pain. The first dog stays relatively content, while the second lapses into complete depression. The circumstances of our lives may matter less to our happiness than the sense of control we feel over them.

“The circumstances of our lives may actually matter less to our happiness than the sense of control we feel over our lives.”

The point: Perceived control, not just the objective outcome, drives wellbeing.

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The two-floor lift with no buttons

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One of Rory's suggestions to the airport: although it is logically quite a good idea to have a lift with no up and down buttons if it only serves two floors, it is actually terrifying. When the door closes and there is nothing for you to do, you have stepped into a Hammer horror film.

“When the door closes and there's nothing for you to do, you've actually just stepped into a Hammer film.”

The point: A logically redundant control can be psychologically essential because it gives people a sense of agency.

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The unemotional man who hugged him over a pension

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We think things grow linearly and do not instinctively grasp compounding. Rory resented his early pension as holiday money doing nothing, until at 58 he wondered where all the money came from. A colleague of his met, in a pub, a man who had worked for him 20 years earlier, a deeply unemotional guy, and reminded him: 'Don't forget it was me who persuaded you to take out a pension.' The man hugged him. It had transformed his life and given him options he never knew he would have.

“We don't instinctively understand the compounding effect. We think that things grow linearly.”

The point: Selling something whose reward arrives decades later is a psychological challenge because we misjudge compounding.

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The upper-middle classes rebranded unemployment as 'a year off'

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Classical economics is preoccupied with reality, and reality is a poor guide to happiness. Pensioners and the young unemployed are in the same position: too much time, not much money. Yet pensioners are reportedly very happy and the unemployed very depressed, because pensioners feel they chose it. The English upper-middle classes solved this by rebranding unemployment as 'a year off'. A son unemployed in Manchester is embarrassing; a son unemployed in Thailand is quite an accomplishment.

“Having a son who's unemployed in Manchester is really quite embarrassing. But having a son who's unemployed in Thailand is really viewed as quite an accomplishment.”

The point: Our experiences depend less on what things are than on how we view them, especially whether they feel chosen.

Sources (1)

The waiter who forgot the beef

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A waiter offers two specials, fish or chicken, and the diner picks the fish. The waiter returns, apologising that he forgot to mention beef as well. The diner thinks and says, in that case, chicken. Rory explains that with only two options, fish looks like the healthy choice; adding beef makes chicken seem the virtuous middle option. A fast-food chain, he adds, could launch an enormous burger and everything else on the menu would suddenly feel like salad.

The point: Judgements are comparative, so adding an option can shift which of the existing choices looks sensible.

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There's no scented candle for men

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Responding to Rita McGrath's story of Zippo seeing its competition as men's gifts, Rory explains why men are hard to buy for: they are happy with luxuries, but only if the luxury has some notional function. There's no scented candle for men. The Swiss watch industry thrives on the same principle; nearly every complication can be done better by a phone, and if you want moon phases there's a free app, but the watch retains some mechanical function or utility that licenses the indulgence.

“Men are very happy with luxuries but they have to have some notional function.”

The point: A pretext of utility gives people permission to buy indulgences they couldn't otherwise justify.

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Tom Sawyer gets friends to pay to paint the fence

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Human behaviour doesn't run on objective reality; it is driven by meaning and context. The same thing in a different context can seem totally different and lead to totally different behaviour. Rory's favourite illustration is Mark Twain's Tom Sawyer, who gets his friends to pay him for the privilege of painting the fence simply by portraying fence painting as desirable.

“Human behaviour doesn't run on objective reality. It's driven by meaning and context.”

The point: Reframing a task can turn a chore into a privilege people will pay for.

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Travel sites that search slowly on purpose

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Some travel websites deliberately slow their search, showing a screen saying they are searching easyJet, British Airways, Alitalia and others, then delivering results after 15 seconds of visible activity. People value those results more and book more readily than if they appeared instantly. Is it a con? Rory argues a business's job is to create perceived value: presentation affects how food tastes, and once food reaches table stakes, great restaurants win on atmosphere and theatre. The worst outcome, environmentally and commercially, is underappreciated value: making something great without letting people realise it.

“The worst thing you can do is to create underappreciated value.”

The point: Visible effort raises perceived value, and failing to communicate quality wastes the effort that made it.

Sources (1)

Two adopted dogs with the same handwriting

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A UK dog charity sent sponsors letters 'from' their adopted dog: thank you for adopting me, I'm gambolling in the garden. Some people adopted a second dog and got different letters, but in the same handwriting, and that they would not accept. The single best thing one person there did was create many different fonts so each dog wrote in its own hand. People happily accepted the implausible idea of a dog writing a letter, but two dogs sharing handwriting was a step too far.

“These people were totally happy with the idea that a dog was sending them a letter.”

The point: People accept obvious fictions willingly but reject small inconsistencies that break the illusion.

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Two years changing at Charing Cross to reach Embankment

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When Ogilvy was near Lambeth Bridge, a new employee asked which Tube station was closest and was told Embankment. For two years she travelled to Embankment, changing at Charing Cross every morning. Eventually a colleague asked why she did not just walk from Charing Cross. She had made the change some 400 times before realising the two stations are effectively next to each other.

“She goes, well, I change at Charing Cross every morning.”

The point: People follow the instructions and maps they are given and miss obvious shortcuts.

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Unexpected item in the bagging area

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The self-checkout warning about an unidentified item in the bagging area is, for Rory, a classic silent irritant. Because it is spoken out loud, it is not just annoying but mildly humiliating: it broadcasts to everyone else at the checkout that this person does not know what he is doing.

“It's not just annoying. It's mildly humiliating.”

The point: Public error messages add social embarrassment to inconvenience, magnifying the irritation.

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Unscripted politics is like live sport

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Rory credits Trump with something brilliant: because he speaks unscripted, off the cuff and slightly randomly, for an hour and a half without notes or autocue, watching him is like watching live sport rather than a recorded event; you feel anything could happen. Some of his tics, admitting he does not know things, nice person and nasty person, rudeness to journalists, belong almost to primatology, conveying an alpha-male sense of power.

“It makes it like watching a live sport rather than like watching a recorded event.”

The point: Unpredictability holds attention, and scripted communication sacrifices it.

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Use an isochronic map to house-hunt

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When looking for a flat, use an isochronic map: put your workplace at the centre and slide the acceptable commute time. Places in south-west London inside the M25 show up as dead zones, while Harpenden on the Thameslink line, or Ashford in Kent thanks to High Speed 1, appears long before them. We assume distance is proportional to time, and nothing of the kind is true.

“Find out what the map's wrong about and you've got a competitive advantage.”

The point: Where the common model misleads, those who measure what actually matters find bargains.

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We confabulate plausible reasons for our feelings

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Rory explains why consumers cannot tell you what they want. Citing Iain McGilchrist's divided brain and Michael Gazzaniga's work, he notes that language is largely a left-brain activity, so our capacity to accurately explain the origins of our emotions is very poor. An emotion is experienced in one part of the brain while another part confabulates a plausible-sounding story to explain it, a story that may have little to do with the real origin of the feeling or behaviour.

“The other part of the brain is effectively confabulating a plausible-sounding story to explain the emotional state.”

The point: Stated reasons are often post-hoc stories, so research must look beyond what people say.

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We lack wonder, not wonders

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Rory argues our problem is not a lack of marvellous things but a lack of appreciation for them. He invokes a classic definition of poetry: making new things familiar and familiar things new. Advertising can do the same, getting people to look at existing things afresh instead of wanting more of something else. On the complementary-goods view, its job is to add appreciation to what already exists, extracting value rather than adding it.

The point: Raising appreciation of what people already have can create value without making anything new.

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We never asked what's faster than typing

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Rory, a small investor in Wispr Flow, thinks mass voice dictation would hugely raise productivity, but people don't realise how much faster it is until they try it. We think of ourselves as fast typists and never reframe widely enough to ask what else could be much faster. He suspects BlackBerry and Steve Ballmer were right that work devices need keyboards, but when the lovely iPhone arrived we decided we were quite fast at screen typing because we had nothing to compare it with. AI dictation even learns context, getting 'Llandovery' right.

“What we're not doing is reframing widely enough to go: what else could I be doing that's a hell of a lot faster than typing?”

The point: Without a frame of comparison, people accept a slow method as fast.

Sources (1)

Wear a mask with a hat

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Rory solved mask-wearing for himself: if you wear a hat, wearing a mask with it makes you feel like an international man of mystery, which completely changes the emotional association of being masked. He also thought masks should have had elastic that went round the neck, so you could wear them like a cravat when not covering your face.

“Wearing a mask with a hat makes you feel like an international man of mystery.”

The point: Changing the emotional association of a behaviour can make a chore feel desirable.

Sources (1)

When Manifest became a thing

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The Manifest advertising festival, free and by invitation, had hard data showing a steady uptake of about 15 per cent of invitees. Then one year there was mayhem, with queues around the block and take-up of around 40 per cent. It had crossed the threshold of being a thing: from "I wonder if I'd go to Manifest" to "Are you going to Manifest this year?", from a default no to a default yes. Food diffuses similarly slowly: a 1960s friend said the two important questions were Indian or Chinese, and Beatles or Stones.

“It goes from a default no to a default yes because it's just become a thing.”

The point: Adoption is non-linear: once something becomes a social default, uptake jumps.

Sources (1)

Why a burglar breaks the noisiest window

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In the Meredith Kercher case, investigators fixed early on the idea that a break-in had been staged, because entering via an exposed upstairs window seemed absurd. They privileged that hypothesis and ignored contradictory evidence. But the point of smashing the window was not access: it was to make a lot of noise from a spot where escape was easy. If nobody reacts, you can safely climb in five minutes later; if a light goes on and a dog barks, you leg it. Like the mouth, which also lets you breathe when your nose is blocked, things in complex systems serve several purposes.

“The purpose of breaking a window was not to gain access to the house, but to make a hell of a lot of noise.”

The point: Behaviour that looks illogical often serves a hidden purpose, and fixating on one theory blinds you to it.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Why are there more fish restaurants by the sea?

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In the style of Robert Frank's economics puzzles, Rory asks why there are more fish restaurants by the sea. The business answer is supply: fresh fish nearby. But then there would be plenty five miles inland, and the cheapest fresh fish is probably at Billingsgate in London. His explanation is psychological: fish tastes better by the sea. And a complexity one, quoted by Nassim Taleb: in any party of six someone does not fancy fish, so consensus is hard, except at the seaside, where everyone wants fish at once. The supply story is 'rigorous but wrong'.

“Fish tastes a lot better when you're by the sea.”

The point: Neat economic explanations can satisfy our need to look rational while missing the real, psychological why.

Sources (1)

Why can't you wear an anorak to a wedding?

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Rory's mother never went to university but was an untouchable amateur psychologist who could spot an affair at 500 paces; Rory's own antennae are weaker and he has had to learn. People slightly on the spectrum make good social scientists because they work things out from first principles. A neurotypical person just knows you make an effort for a wedding. A purely rational person asks why not wear an anorak: the forecast says rain and it has lots of pockets for nerdy things.

“Why is it inappropriate to wear an anorak to a wedding?”

The point: Questioning norms from first principles reveals the hidden social logic others take for granted.

Sources (1)

Why KFC beats McDonald's

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Rory thinks KFC superior to McDonald's because McDonald's is prescriptive: this is what you eat and this is how you eat it. At KFC you can mix the gravy with the fries and everything else. At a far more elevated level, haleem comes with little bowls of chilli, ground ginger and other toppings so you can vary the flavour as you go. Personalisation, the host notes, is half of Nando's genius too. Rory adds that variable reinforcement makes the experience more interesting.

“You get variable reinforcement, which is more interesting.”

The point: Letting people customise and vary what they consume raises engagement and perceived value.

Sources (1)

Why politicians stray and accountants party hardest

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Rory's mischievous theory: advertising people, supposedly dissolute, are mostly devoted family types. For a politician or a US televangelist the risk makes transgression five times more enjoyable; an ad man caught in a motel with a girl called Tammy is mildly embarrassed. A friend from the music industry was never so shocked as at his brother-in-law's provincial accountancy Christmas party, their one chance a year to let loose. Early punk gigs were more violent in the provinces, where everyone felt they had to outdo London.

“The element of risk makes transgression five times more enjoyable.”

The point: Scarcity and risk raise the appeal of transgression, so the most constrained may misbehave hardest.

Sources (1)

Why the French need 150 cheeses

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When Les Binet says that if he could eat only one cheese for ever it would be cheddar, Rory calls that an honesty heuristic: cheddar is the most popular cheese, and he distrusts anyone who despises it in favour of something French, which suggests a cheese snob. His own joke, which he believes later appeared in an advert: the reason the French have 150 different kinds of cheese is that they still have not come up with one as good as cheddar.

“The reason the French have 150 different kinds of cheese is because they still haven't come up with one that's as good as cheddar.”

The point: Openly liking the popular choice is a sign of honest taste rather than status-seeking.

Sources (1)

Win last and leave punching the air

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Most data does not capture lived experience over time, which Rory finds epistemologically dodgy. At a casino, if you have a long losing streak and then win big on the last hand, you leave punching the air. If you win massively on the first hand and lose gradually all evening, you leave feeling like an idiot. The order in which things happen plainly affects mood.

“The order in which things happen patently has an effect on human mood.”

The point: Sequence shapes how experiences are felt and remembered, which snapshot data ignores.

Sources (1)

With a cigarette you're a philosopher

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Rory says his electronic cigarette has given him untold happiness, and not mainly because of the nicotine. Since the UK smoking ban he had stopped enjoying drinks parties. Talking endlessly is tiring, and sometimes you just want to stand alone and stare out of the window. Without a cigarette, doing that makes you an antisocial, friendless idiot. With a cigarette, you are a philosopher. Same activity, small change of posture, opposite feeling.

“If you stand and stare out of the window on your own with a cigarette, you're a philosopher.”

The point: The power of reframing cannot be overstated: identical behaviour feels great or terrible depending on its frame.

Sources (1)

Without embarrassment, all Englishmen would wear shorts

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Rory's theory: take away social embarrassment and all Englishmen would wear shorts all the time. On holiday among strangers, where it's normal, they wear shorts every day, because shorts are simply more comfortable. He reckons 60 to 70 percent of people would be naturists: alone in an unoverlooked villa with a pool in warm weather, would you put on trunks? Of course not. A huge amount of human behaviour is constrained only by how it will look.

“If you take away social embarrassment, all Englishmen would wear shorts all the time.”

The point: Much behaviour reflects social sanction rather than preference, which hides latent demand.

Sources (1)

Working in the garden doesn't feel like work

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Some things become completely different out of doors. An Indian takeaway eaten as a picnic is weird and wonderful. If you put your router in the window and work in the garden in summer, it does not really feel like work. Rory notes that BT will send you a free mesh disc if you say you have weak coverage in part of the house. You can create a complete contextual shift just by moving outside.

“If you go and work in the garden in the summer it doesn't really feel like work.”

The point: A change of setting can transform how an activity is experienced.

Sources (1)

You can make lavender fly spray, but you can't sell it

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An Ogilvy client said it is perfectly possible to manufacture a fly spray that smells of lavender, a fly spray and an air freshener in one. You can make it, but you can't sell it. The brain wants a trade-off: if it smells pretty nasty to me, it must be a real bastard to a fly. Rory is likewise suspicious of Nurofen Meltlets, which taste too nice to be effective; analgesics should taste horrible.

“It smells pretty nasty to me, so it must be a real bastard to a fly.”

The point: Consumers read unpleasantness as proof of potency, so removing the downside can remove the credibility.

Sources (1)

You can't praise slow progress without sounding late

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It is very difficult to evangelise things that happen slowly or gradually without sounding late to the party. Rory thinks video conferencing is hugely important, and growing up on early Star Trek, someone appearing on a screen to talk to you was science fiction. But because it has been kicking around in unsatisfactory form since Skype, around 2001 or even 1999, and improved and was adopted gradually, saying 'isn't video conferencing brilliant?' sounds absurd. So we downplay its importance.

“It's very difficult to evangelise things that happen slowly or gradually without sounding late to the party.”

The point: Gradual innovations are systematically undervalued because there is never a moment when praising them feels new.

Sources (1)

Signalling and trust 152

Red Bull, tiny can, costs a fortune, tastes disgusting

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Ask Mr Logic how to compete with Coke and he says: a drink that tastes nicer, costs less and comes in a bigger can. Nobody gets fired for that. Yet the most successful challenger to Coke in 150 years comes in a tiny can, costs a fortune and tastes disgusting. A research firm that only tests carbonated drinks called it the worst drink in its history; one tester said he would not drink it if paid. But flip the context from drink to drug and those three qualities make a brilliant placebo. Medicinal products have to taste weird, the small can says the stuff is potent, and the price says it works. It was marketed as a drug: it gives you wings.

“If you flip the context from drink to drug, those three qualities which make Red Bull an appalling drink make it a brilliant placebo.”

The point: Qualities that are flaws in one category can be credible signals in another, so making a product nicer or cheaper can undermine belief in it.

Variants: Rory also uses it to show no corporation would have invented Red Bull: it would never survive a PowerPoint or a business case. Some tellings pair it with Starbucks as things nobody asked for, or with Huel, which should taste fine but not delicious.

Sources (18)

Wedding vows in public and an engagement ring that hurts

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When we marry, we make our vows in church in front of everybody we know at once, not door to door or by email, because it only takes one person to answer 'just cause or impediment' and everyone knows you are a liar. A promise made in public carries more conviction than one made in private. And we do something really expensive up front: an engagement ring has to hurt the man buying it, as proof of long-term intention, because nobody buys one for a one-night stand. Even the invitation could informationally be an email, but nobody sends one that way. Advertising works the same way: you only advertise expensively and publicly if you expect repeat customers, which is why ever more targeted, efficient advertising strips out trust.

“You wouldn't buy an engagement ring if you're only planning a one-night stand.”

The point: Messages are believed in proportion to what they cost the sender and how publicly they are made, so cheap, private communication earns little trust.

Variants: The cost need not be money: a musician who sings the invitation, rhyming the church postcode, has paid in talent. Some tellings credit Don Marti with the public-vows point; one frames it as a law of commensurability, where a big decision deserves a significance marker, so a car buyer wants a brochure. Rory once joked in India that 8 per cent GDP growth would all be spent on weddings.

Sources (14)

American Express 'Member since'

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Rory's American Express card reads 'Member since 95'. Functionally it does nothing; it just says we know how long you have been a customer. Probably suggested by someone at Ogilvy in the mid-1960s, it turned a transaction into relational capitalism. Nobody wants to cancel, because rejoining would reset the date to the current year and make them look like a Johnny-come-lately, so it exploits sunk cost too. When Amex mistakenly sends long-standing members replacement cards showing the current year, a large share ring up demanding their old date back, though nothing material differs. People at Amex told Rory it has been worth billions. He tried to find out what Ogilvy was paid for it: somewhere between nothing and $50.

“There are certain things where you can make people feel great which cost nothing at all.”

The point: Recognising how long someone has been with you costs almost nothing and builds loyalty that transactional accounting cannot see.

Variants: The share who complain is put at around 40 per cent, a high double-digit percentage, or more than half. Rory pairs it with boarding first (someone has to, so make it a privilege), BA lifetime tier points, and the bonus that a 19-year-old with a 'member since 92' card is probably holding a stolen one. He also uses it to argue marketing is fat-tailed.

Sources (12)

Ed Sheeran in a two-dollar peep show

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Rory always wanted someone to take a superb product and market it atrociously. Two Melbourne comedians did: they put Ed Sheeran, the hottest musical act in the world, fully clothed on a stool inside a seedy peep-show booth, with a shady tout outside offering passers-by 30 seconds for two dollars. People assumed it was a code word for drugs or something worse. It took two hours and 23 minutes to find anyone brave enough to go in. The tout's first instinct was the default economist's suggestion: maybe we're pricing it too high. What finally worked were behavioural tricks: he's only here till midday, it'll get busy later, you can both come in. One ad in a respectable newspaper could have sold it at $200 with a queue round the block.

“If you have a great product but nobody trusts you, you don't have a great product.”

The point: Context and trust, not price or quality, decide whether a product sells, so bad presentation can destroy as much value as good presentation creates.

Variants: Rory often aims it at financial services: that is how it feels to market a good product nobody trusts. He also uses the tout's price-cut instinct to warn that algorithms will do the same.

Sources (8)

A flower is a weed with an advertising budget

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Rory believes he coined it, having googled it: a flower is a weed with an advertising budget. A bee can only find out whether a plant has worthwhile nectar by visiting it, so plants need a reliable signal, and big petals are one. Because petals are an upfront cost, which also makes the plant likelier to be eaten, they indicate the seller's confidence: a flower that did not expect the bee to come back would not bother to grow them. Cheat the bee and it won't return. Some flowers also produce scents that only plants with plenty of pollen can make, and bumblebees have evolved to prefer them. If creatures with a bee's IQ can work out signals that are reliable because they are costly, humans surely have too.

“A flower is simply a weed with an advertising budget.”

The point: The cost of a signal is itself the message: extravagance is credible because only a seller expecting repeat business can afford it.

Variants: Sometimes paired with the line: efficient advertising can find customers, effective advertising creates them.

Sources (7)

Machu Picchu or Lincoln Cathedral?

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Rory asks a room of middle-class Londoners how many have been to Machu Picchu: 10 or 15 hands go up, or everyone if they are Gen Z after a gap year. Then how many have been to Lincoln Cathedral: two, usually people who were born or studied there. Yet Lincoln is a day trip by train for about £23, needs no long-haul flight and no altitude sickness, and architecturally it beats Machu Picchu. From 1311 its spire made it the tallest building in the world, overtaking the Great Pyramid for about two centuries, and the castle next door holds an original Magna Carta. It just lacks bragging rights. Much tourism is going somewhere far away to show off, and difficulty of access has become the status signal.

“An awful lot of tourism is people going somewhere far away for bragging rights.”

The point: When a choice doubles as a status signal, difficulty and distance get valued over intrinsic quality, and nearby wonders are overlooked.

Variants: The ratio varies by telling, from two or three to one up to about seven to one. Rory adds that there is no correlation between how elaborate a holiday is and how much you enjoy it, and that for the young, travel has replaced the car as the status symbol.

Sources (6)

The customer wants a marriage; the CFO runs an escort agency

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Your regular customers think they are in a marriage with you, Rory says, while the finance department behaves as though it is running an escort agency: so much for this, so much for that. A relationship involves tacit give and take and benefit of the doubt, and nobody evaluates their spouse daily against KPIs. Customers think longitudinally; most complaint letters open with 'I have been a customer of yours for X years', legally irrelevant but emotionally decisive. Finance looks one transaction at a time, counting the number of exchanges, not their durability. Since nothing counts as value unless it appears as a transaction on a spreadsheet, trust and fame are set to zero, and businesses underinvest in service because loyalty is slower to measure than acquisition.

“The customer's often after a marriage and your CFO actually has the mentality of someone running an escort agency.”

The point: Treating a relationship as a series of separately priced transactions destroys the goodwill and lifetime value that loyalty depends on.

Variants: Sometimes framed as transactional versus relational capitalism. Amazon and Octopus Energy appear as firms that reward staff on customer satisfaction; one telling has Amazon sending a friend a replacement hi-fi and not wanting the first one back.

Sources (6)

Buy your wife flowers, not a drone

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Women like being given flowers and jewellery by men precisely because men are not remotely interested in either. If there were no women on the planet, Rory says, there would be very few florists, selling only man plants like cactuses and Venus flytraps, and jewellers would sell only expensive watches. So flowers or a necklace say: I have made a financial sacrifice to make you happy, with no suspicion of self-interest. Buy your wife a drone, a quad bike or a radio-controlled helicopter for Christmas and there is a strong suspicion you were not really thinking of her. A gift's value depends not just on its worth to the recipient but on what it costs the giver.

“If you buy your wife a drone for Christmas, there's probably a strong suspicion of self-interest.”

The point: A gift or gesture signals care when it costs the giver something and plainly offers them nothing in return.

Variants: The self-interested gift varies: a drone, a quad bike, a radio-controlled helicopter, or the first season of Battlestar Galactica on DVD for a girlfriend.

Sources (4)

Five Guys' extra scoop of fries

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Order fries at Five Guys and they fill your cup to the brim, then tip another scoop loose into the bottom of the brown paper bag, after you have already paid. The brain disproportionately values those extra fries because they are the ones they did not have to give you: filling the cup is an obligation, the extra scoop is generosity. You would only do that if you were thinking about the customer coming back, so it is instantly high-trust, suggesting the long, cooperative game rather than the short, psychopathic one. A rational man would just make the cups bigger; a finance director would cut free fries costing £3.7 million a year. Both would destroy perceived value.

“The human brain disproportionately values the extra fries because they're the fries that you didn't have to give them.”

The point: Unobliged generosity after the sale signals a long-term relationship and creates far more value than the same amount given as standard.

Variants: Paired with Selfridges wrapping online orders beautifully for perhaps 20p more: such acts happen after payment and are hard to measure, so automation and cost-cutting tend to strip them out first.

Sources (4)

How to guarantee a bad meal

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If you want a guaranteed bad meal, Rory says, go to a tourist restaurant with a view. People stop for the view of the Acropolis and will never come back, so the only aim is to serve food hygienic enough that diners live long enough to pay the bill. A restaurant that relies on locals has to be nice to them, because if they don't return it has no business. Rory offers this as amateur game theory and a new definition of marketing: people are honest when the future value of the relationship outweighs the one-off value of cheating. Before TripAdvisor you could never trust a tourist restaurant. Likewise snake oil was sold at fairs, never in shops: by the time you found it useless, the salesman had moved on.

“People are honest when the future value of the relationship outweighs the one-off value of cheating.”

The point: Without repeat business or reputation at stake, sellers are incentivised to deliver the bare minimum, so signals of long-term intent are what make them trustworthy.

Variants: One telling extends it to companies focused on short-term shareholder value, which are likewise incentivised to behave sociopathically.

Sources (4)

The racehorse owner who bets on his own horse

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Ask a friend who owns a racehorse whether it will win on Saturday and of course he says yes: every owner says that, so it is cheap talk. But if he takes you into the bookmaker's and you watch him put £5,000 on it to win, that is serious information, because now he has skin in the game and loses if he is wrong. Advertising paid for up front is the same bet. A manufacturer only spends heavily on it if they genuinely expect the product to be widely and repeatedly popular, otherwise the money never comes back. So preferring advertised products is not irrational for a brain that is an instinctive game theorist. Cheap digital media lacks this property, which Rory thinks is one reason TV still takes about 40 per cent of ad spend.

“Spending money on advertising for a manufacturer is equivalent to betting money on your own horse.”

The point: A claim becomes believable when the person making it stands to lose if it is false, so costly commitment beats cheap talk.

Variants: The stake is usually £5,000; one telling makes it £50,000.

Sources (4)

Why you can trust the ads in a woodworking magazine

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Rory's friend Don Marti, formerly of Mozilla, loves woodworking. When he reads a woodworking magazine he knows many readers know far more than he does, so he can trust its ads: the advertiser is exposing claims to experts who would call out nonsense, and taking false claimants down a peg is a deep human instinct. Marti built a simulation in which a few 'norm enforcers' punish liars by writing to the papers. Run it and the honest advertisers broadcast indiscriminately, while the dishonest ones all advertise short-range to small niches of gullible people. So we instinctively trust a Super Bowl ad more than a message that may have reached only us. With digital you don't know who else sees it: you could be the sucker singled out by the Nigerian prince.

“The dishonest people are all short-range advertisers.”

The point: Claims exposed to a broad audience that includes experts are credible, while cheap, narrow targeting is where liars hide.

Variants: The magazine is variously Woodworkers Monthly or Practical Woodworking, and one telling credits the underlying theory to biologist Amotz Zahavi. Rory extends the logic to influencers: James Hoffmann is exposed to thousands of baristas.

Sources (4)

BA lifetime tier points, don't be a goldfish

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British Airways' tier points used to reset to zero every year, so the airline felt like a goldfish that forgot you. Each year Rory felt BA looked at him and thought: he's got 15 tier points, he could be a random backpacker, not a serious George Clooney-style professional flyer. Ogilvy made a change that cost nothing: showing lifetime tier points on the statement. Seeing '15,000 lifetime tier points' tells you they know you are valuable. Loyal flyers stay because they believe the airline knows what they have been worth, so when there is one seat left on the last flight out on a Friday night, they will bump a student, not you.

“Quite a lot of loyalty programmes are actually the consumer signalling their loyalty to the organisation.”

The point: Loyalty rests on customers believing the firm remembers their lifetime value, so showing that memory can matter more than the rewards.

Variants: The last flight out is from Malmö in one telling and Boise, Idaho, in another.

Sources (3)

If it's medicine, it has to taste weird

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If you want people to believe something has medicinal or psychotropic powers, Rory says, it has to taste a bit weird. If someone said orange Fanta gave you eternal life you would not believe them, but wheatgrass makes sense: there is no other reason to drink it. Sanatogen and other tonic wines added a final unpleasant-tasting ingredient so people would believe they were medicine. Rory distrusts Nurofen Meltlets as too tasty to work, and Diet Coke reportedly had to be made slightly more bitter than Coke so people would believe it was a diet drink. Matcha, which he drinks a lot of, is like snogging the underside of a lawnmower, which is partly why it feels healthy.

“You had to have that little sacrifice of sweetness for people to be convinced it was actually a low-calorie drink.”

The point: People expect benefits to come with a cost, so a visible sacrifice in taste or pleasure makes a claim of efficacy credible.

Variants: One telling suggests frozen yogurt succeeds as adult ice cream because ice cream is too tasty to seem virtuous. The same idea powers Rory's Red Bull story.

Sources (3)

James Hoffmann will not recommend bad coffee

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James Hoffmann is world famous in coffee, a Mick Jagger within his niche. You might just about pay him to praise the second-best coffee, but he would never recommend a bad one, because doing so would wreck the reputation he has spent years building. So if Hoffmann recommends a coffee, you do not know it is the world's best, but you know it cannot be rubbish. Rory traces this to David Ogilvy, who favoured testimonials from people with known expertise: a recommendation from someone with reputational skin in the game is a very reliable form of information. That is why he is encouraged by influencer marketing and sceptical of transactional performance marketing. Influencers are a return to salesmanship: a person telling a story about a thing, with a reason to believe.

“There is no way that guy is going to recommend any coffee that is bad.”

The point: A recommendation is credible in proportion to the reputation the recommender would lose by making a bad one.

Variants: One telling, without Hoffmann, adds that a big following cuts both ways: nobody can treat you badly, but you cannot behave badly either. Another notes that Ogilvy is possibly the largest influencer marketing agency in the world.

Sources (3)

Luxury needs an audience of strangers, why Neiman Marcus began in Dallas

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Luxury goods really only work with an audience of strangers. Had Rory walked into the pub in Monmouth, where he grew up, wearing sunglasses with 'Moschino' in inch-high letters, he would have been ridiculed: everyone knew where he lived, what his parents did and what he earned. In Miami nobody would know. A paper argues that is why Neiman Marcus started in Dallas rather than Boston. Oil drew newcomers, a surplus of men and new money, all able to reinvent themselves, which breeds status competition. In old-money Boston everyone already knew where you went to school, so flashy display looked absurd. It may also explain why airports are full of luxury goods.

“Luxury goods only work really when you have an audience of strangers.”

The point: Status display matters most where people lack other information about you, so conspicuous consumption follows anonymity and newness.

Variants: One telling adds American Express's 1960s 'Do You Know Me?' campaign, playing on the anxiety of a big fish in Peoria travelling 300 miles to where nobody knew him; another notes an elderly aristocrat in a small English town can dress like a tramp.

Sources (3)

No ketchup, Thrasher's fries and the Chicago hot dog

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Thrasher's French Fries in Ocean City, Maryland, is a century-old handful of outlets, closed off-season and mobbed whenever open; Five Guys reportedly asked them how they make their fries. They sell only fries in a cone, and astonishingly for America there is no ketchup or mayonnaise, only salt and vinegar. Rory stole the rule. In Chicago, a hot-dog vendor near the White Sox stadium refused ketchup, believing it disguised poor-quality meat, and put up a sign saying don't even ask. Now no authentic Chicagoan puts ketchup on a hot dog; even people who have lived there five years treat it as a heinous crime. There is something about the power to say no that gives you credibility.

“Things you refuse to do are kind of proof of sincerity.”

The point: A visible refusal to give customers what they ask for can signal confidence in quality and harden into a cherished ritual.

Variants: Some tellings use only Thrasher's, others only the Chicago hot dog; Rory tells both as reasons for building eccentric rules into a menu.

Sources (3)

Quite frankly, the American Express card is not for everyone

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American Express's most successful sales letter, an Ogilvy direct-mail acquisition piece from the 1960s or 70s, outperformed everything for years. It opened: 'Quite frankly, the American Express card is not for everyone, and not everyone who applies for it is approved.' Rory reckons it easily made a billion dollars. Written long before behavioural science existed as a discipline, it used the tricks instinctively: intrigue, exclusivity, scarcity, and letting readers identify as people who pay for quality rather than buy on price. Rory worked on Amex for 10 to 15 years and thinks perhaps five ideas delivered most of the value, this one predating him. You do not know in advance which line it will be.

“Quite frankly, the American Express card is not for everyone.”

The point: Telling people a thing is not for everyone can sell it better than any benefit, and one line can be worth more than everything else combined.

Variants: Rory notes Cialdini's principles can contradict: social proof says everyone has one, scarcity says few do, and context decides which to use; it would be silly to make Coke exclusive. He also compares the letter to a 'why you shouldn't work with us' page.

Sources (3)

The car launch ad and the FedEx parcel

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Spend a fortune launching a car, whether a full-page Telegraph ad or a £20 million campaign, and you tell consumers it is worth a test drive, because if everyone who drove it found it rubbish you would not have spent the money. Scatter cheap ads like confetti and the words may be identical, but they convey no confidence. The same goes for delivery. A good account man Rory worked with, Steve Barton, briefed a launch: come up with a brilliant creative idea and make it expensive; if you can't, write a nice letter and send it by FedEx. A FedEx package is never binned unopened, while an email in your spam folder can be safely discarded.

“In signalling terms, the efficiency of your communication diminishes its value.”

The point: The cost of sending a message is part of the message, so cheap, efficient delivery can strip out the confidence it was meant to convey.

Variants: One telling adds Tom Cruise: a celebrity endorsement implies either genuine love or a huge spend. Another stresses that hyper-targeted digital ads can fake being a big advertiser, whereas indiscriminate mass media cannot.

Sources (3)

The M&S car park that fines its own customers

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Search Google Images for an angry car park and you find hundreds of local-paper photos of fuming motorists. One is the Marks and Spencer car park in Sevenoaks, at a store Rory generally venerates. Procurement outsources the car park, and the winning bidder is the firm whose model depends most on catching customers out. Number-plate cameras start the clock as you drive in, so an hour paid on the app a few minutes later is really less than an hour, and people who drive in and leave without parking get fined. Then the sign in the lift says that if you are fined, contact the car park operator directly. Rory's reaction: actually, this is your problem.

“Procurement largely is basically a trust vampire.”

The point: Outsourcing to the lowest bidder can hand your reputation to a partner whose business model depends on annoying your customers.

Variants: One telling begins with the classic 'we take no responsibility for your belongings' sign, which Rory translates as: do not enjoy your evening, spend it in mild anxiety. Another stresses that procurement claims the cost saving but is never held accountable for the eroded trust.

Sources (3)

The peacock's tail, messaging versus signalling

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There are two kinds of communication. Messaging, where trust is complete, should move information as cheaply and precisely as possible. Signalling, where you do not trust the sender, is different: the cost of the message is evidence of sincerity. A peahen values the peacock's tail precisely because it is useless; a bird that can haul such an impractical display and still survive must have good genes, which Darwinians call self-handicapping. Expensive advertising likewise proves a firm has invested in its reputation and so has one to lose. A Ferrari in central London is a deranged choice, but its impracticality is the point: a lorry costs more, yet practical function dilutes the signal. Nobody has explained accountancy to peacocks.

“If you want to show that you really have resources to spare, nothing beats waste.”

The point: Apparently wasteful spending is a credible signal precisely because it is wasteful, so judging it purely on efficiency misses what it does.

Sources (3)

The vicar or the man in his underpants

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You go to buy a second-hand car parked outside a house and decide it is worth a few thousand. You ring the bell. In one world a vicar opens the door of a tidy house: you probably pay 20 per cent more. In another, a man answers in his underpants: you knock $1,000 off or walk away, because he has shown himself immune to shame and unconcerned with reputation. If you know little about cars, you do not solve the car problem, which would take years of studying engineering. You substitute an easier question: do I trust the person selling me this car? Economists call that irrational, but if you trust the seller, it probably is not that bad a car.

“If you trust the guy who's selling you a car, it's probably not going to be that bad a car.”

The point: When you cannot judge the product, judging the seller's concern for their reputation is a sensible proxy, not a bias.

Variants: The vicar is sometimes a rabbi or a female vicar. One telling adds that Rory's mother knew nothing about cars but a lot about people, and probably bought better than an engineer.

Sources (3)

A Prius at the Oscars is not a bike to Pizza Hut

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Green self-sacrifice works for a high-status minority because of countersignalling. A Hollywood A-lister who arrives at the Oscars in a Prius could obviously afford a stretch limo, so it powerfully signals environmental concern. When the Mayor of London cycles, it sends a cool signal. But a Pizza Hut worker who cycles to work signals nothing of the kind: people assume he cannot afford a car. So virtue signalling works for perhaps 10 per cent of high-status people and cannot scale. Rory suspects good done by stealth may work better anyway, since people conscious of doing good engage in moral offsetting; London cyclists were perfectly reasonable until told they were saving the planet.

“If you work for Pizza Hut and turn up at work on a bicycle, it doesn't mean you care about the environment, it means you can't afford a car.”

The point: A sacrifice only signals virtue when observers know it was optional, so status-based green behaviour cannot spread to everyone.

Sources (2)

A problem well solved beats no problem at all

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One of the most fascinating customer-satisfaction findings, and pretty well attested, is that people who had a problem that was then very well resolved, or impressively apologised for, end up more loyal than if the problem had never occurred. Economists get angry at this, since it seems to reward a business for causing problems. But psychologically, when a customer calls with a problem, your goodwill and your investment in the relationship are being tested. Solving it, without charging, proves you want to keep them rather than telling them their transaction was six months ago. The business's reserves of goodwill have been tested and not found wanting.

“The business's reserves of goodwill have been tested and not found wanting.”

The point: A well-handled failure is a rare chance to prove a relationship is real, which can build more trust than flawless service.

Sources (2)

An admission of weakness is the ultimate power move

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Someone who advises chief executives told Rory that few CEOs admit their failings, because they think their job is to look perfect, and put it beautifully: an admission of weakness is sometimes the ultimate power move, because the fact you can afford it speaks volumes. We are suspicious of people who pretend everything is perfect; they are issuing press releases about themselves. David Ogilvy advised admitting your weaknesses at the start of a long-copy ad, to establish credibility for everything else. Rory thinks estate agents' ads would be far more powerful if they said 'it's next to a busy road, hence £600,000' rather than pretending every property is perfect. In law it is called stealing the thunder.

“An admission of weakness is sometimes the ultimate power move.”

The point: Volunteering a flaw is a costly signal of confidence and honesty that makes every other claim more believable.

Variants: In one telling the adviser is the culture consultancy Gapingvoid.

Sources (2)

AO's 4.9 on Trustpilot

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AO, founded by John Roberts, is the UK's most trusted electrical retailer, with a Trustpilot rating of 4.9 from around a million reviews. That is remarkable for a firm that delivers washing machines and tumble dryers into people's homes, where plenty can go wrong; such a rating is hard even serving coffee. AO told Rory that 90 per cent of it is simply that they tell people what they are going to do and then do it, and customers react as if that were extraordinary. Everyone told Roberts to outsource delivery. He refused, because he would lose control of the one part of the business where trust is most eroded.

“If I outsource delivery, I lose control of the one bit of the business where trust gets most eroded.”

The point: Where the standard is low, doing what you said you would, and keeping control of the moments where trust is won or lost, becomes a powerful differentiator.

Variants: One telling credits the rating to keeping delivery in-house, the other to telling people what will happen and then doing it. Rory concludes he would always over-invest in customer service because the bar is so low.

Sources (2)

At a bar called Bloody Mary's, order the Bloody Mary

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There is a bar in Deal, a proper seaside town, called Bloody Mary's. Whenever Rory goes there he orders a Bloody Mary, on the grounds that if you name your bar Bloody Mary's you really cannot skimp on them: you are kind of obliged to produce a pretty good one. He makes the same point to a founder who sells only cinnamon rolls: if that is all you sell, people will imagine they are seriously good cinnamon rolls. Naming yourself after one thing is a public commitment, and customers read that commitment as a guarantee.

“If you call your bar Bloody Marys, you can't really skimp.”

The point: Staking your name on a single product is a public commitment that customers read as a quality guarantee.

Sources (2)

Bernie Madoff said no

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Bernie Madoff's financial products were appalling, but his marketing was sheer genius. Billionaires begged to invest in his fund, and the one thing that drives a billionaire insane is someone saying no. So Madoff would say he would love to, but no, I'm full up this year. Their normal scepticism about whether he was legitimate was drowned out by the desperation to be accepted. The product was awful, yet the feeling of the transaction was irresistible. The same logic sustains members' clubs and nightclubs with bogus queues: advertise Ivy membership in Metro and it is game over.

“If you're a billionaire, there's one thing that drives you absolutely insane, which is someone saying no.”

The point: Refusal and artificial scarcity make access the prize and can override due diligence, whatever the underlying quality.

Sources (2)

Choose the surgeon who doesn't look the part

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Rory relays Nassim Taleb's advice, from his discussion of the street-smart Fat Tony: if you have to choose between two surgeons, one from central casting, Ivy League and grey-haired, the other looking like a butcher with his tie undone, pick the latter. He has had to be a much better surgeon to get where he is, succeeding despite his appearance, while the other may have succeeded partly because of it. Rory extends it to television: when an implausible spokesperson appears, pay double attention, because there must be a really good reason for them to be there.

“Choose the one who doesn't look the part, because he's had to be a much better surgeon to get where he is.”

The point: Success achieved without the expected signals is stronger evidence of ability than success that fits the stereotype.

Variants: One telling adds that women in their 40s to 60s, perhaps the most sensible demographic, are the least likely to be asked their opinion on TV.

Sources (2)

Flying to Frankfurt to look committed

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Video conferencing was basically free in 2019, yet barely used for important meetings. Rory's theory is that it was resisted precisely because it was easy. Much business communication is costly signalling: getting up at three or four in the morning to fly to Frankfurt or trek to Heathrow shows a client how important they are, and business people have a paranoid fear of looking lazy. The same instinct survives on conference calls, where senior people treat it as a badge of honour to dial in late from somewhere inappropriate, a local sawmill or a rocket testing ground, as if to say look at the sacrifice I made. Dialling in early from a quiet room would look too easy.

“Business people have a paranoid fear of actually looking lazy.”

The point: Effort itself signals commitment, so easier options are resisted even when they work just as well.

Sources (2)

Good at chess means bright; bad at chess doesn't mean thick

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Many signals are asymmetric, Rory argues. Someone who is really good at chess is probably pretty bright, but you cannot say the opposite: you are bad at chess, therefore you are thick. Einstein and Oppenheimer were decent but unremarkable players. Academic attainment works the same way. Hiring graduates with 2:1s is not a bad heuristic, since success suggests you will do the job well, but lacking it does not mean you won't. University attainment was originally designed to supply reliable bureaucrats for the civil service and functionaries for the church, people who could be trusted not to screw up, and whether it selects for or against creativity is worth debating. He thinks a share of hires should be wildcards.

“You can't say the opposite, can you? You're bad at chess, therefore you're thick.”

The point: A signal that confirms a quality cannot be used in reverse to rule that quality out.

Sources (2)

I wonder if you can help me

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When asking someone a favour, don't say 'sorry to dump this on you' or 'could you do me a favour'. Say: 'I wonder if you can help me.' It raises the hearer's status, they feel chosen, it is very hard to refuse, and leaving it open-ended positions them as actively helping you: you have created a volunteer, not a conscript. To grammarians the phrasings look remarkably similar; to the monkey brain they are total opposites. Rory later discovered it was exactly the phrase Ted Bundy used to pick up his victims, so these skills can be used for evil as well as good.

“What you've done in that phrase is you've created a volunteer not a conscript.”

The point: Tiny wording changes alter the status game in a request, and with it the willingness to say yes.

Variants: The source differs: in one telling it is behavioural scientist Paul Craven, who owes half his career to it; in the other, a friend who worked at Goldman Sachs.

Sources (2)

Kagi refunds you if you don't use it

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Rory works a little with Kagi, an ad-free, pay-to-use search engine that returns the actual hotel rather than comparison sites. At his suggestion, if a subscriber does not use it in a given month, they get that month's fee back. He told them to do it now, because once they reached a million users their finance people would never allow it. Its effect can never be proved, since there is no parallel universe to compare against, but his hunch is that greater willingness to try will outweigh the cost of refunds, and the gratitude, affection and trust it inspired in users was extraordinary. If you have a great business, do you really want to make your money out of customer inertia?

“If you've got a great business, do you really want to make your money out of customer inertia anyway?”

The point: Refusing to profit from customer inertia lowers the risk of trying and signals confidence, though it gets harder to do as a firm grows.

Sources (2)

L'Oréalism, because I'm worth it

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Advertising endlines often hide a truth, Rory says. L'Oréal's 'because I'm worth it' captures the fact that part of luxury buying is the person advertising to themselves. Not all status is showing off to others. A bright red sports car may signal spare resources to a particular group, but much of it is signalling to ourselves: I deserve this, I'm the kind of person who drives this. When cash-constrained people buy a car they pay for transport; richer people pay partly for status, including what Rory calls L'Oréalism, reinforcing their own identity by spending a little more even when nobody else notices: the Versace underpants school.

“A lot of status is about showing off to yourself.”

The point: Premium purchases often serve the buyer's self-image rather than social display, so even private products can carry status.

Sources (2)

Let me save you $25,000, Mr Leno

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Jay Leno owns no Ferraris because he will not play the game of buying several run-of-the-mill ones before being allowed a rare model, like handbag boutiques that make you splurge before you may buy the Kelly bag. On his garage show he described buying a McLaren and asking for the ceramic brake discs. The McLaren man asked whether he would race it on a track. Mostly drive round LA, said Leno. 'Let me save you $25,000 straight off the bat. You don't want the ceramic brakes. They take ages to warm up; you'll drive into the car in front.' From then on the relationship was different: instant trust.

“Mr Leno, let me save you $25,000 straight off the bat.”

The point: A seller who talks you out of spending earns trust worth far more than the lost sale.

Variants: The saving is $25,000 in one telling and $20,000 in the other.

Sources (2)

Raphaelson to Ogilvy, not better, but more certain to be good

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In about 1960, in Chicago, Joel Raphaelson, Ogilvy's creative director there, whom Rory met several times, told David Ogilvy: I don't think people buy brand A rather than brand B because they think it is better; they buy it because they are more confident that it is good. Rory calls it probably the most important advertising conversation of the 20th century. We pay a premium for brands not because they are better but because we are confident they are not terrible: a low-variance outcome compared with something we have never heard of. So much instinctive consumer behaviour is about minimising the worst case.

“Consumers buy brands not because they think they're better but because they're more certain that they're good.”

The point: Brands sell reduced uncertainty, insurance against a bad outcome, rather than a promise of the best one.

Sources (2)

Reassuringly expensive, give them one manageable trade-off

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Robert Cialdini added to his principles that an honest admission of a small weakness, made before the strength, is highly persuasive. The brain looks for trade-offs and distrusts a pretence of perfection, and people are more comfortable deciding once they know the trade-off. Advertising discovered this years earlier: Stella Artois was 'reassuringly expensive', Avis said 'we try harder', and Salman Rushdie, as an Ogilvy copywriter, wrote 'naughty but nice' for fresh cream cakes, before, in Rory's words, he decided to squander his talent by writing Midnight's Children. A photocopier salesman shortly before the close says: it is expensive, but trust me, it's worth it. Better they focus on your trade-off than imagine their own.

“It's better for them to focus on the trade-off you've provided than go around imagining trade-offs of their own.”

The point: Supplying one tolerable downside yourself stops people inventing worse ones and makes the upside credible.

Sources (2)

Solar panels won't sell until John Lewis stocks them

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Rory says the UK will not see major solar-panel buying until he walks into John Lewis and finds a display of them: he needs evidence it is not some weird thing. At present solar is stuck in odd distribution channels where you Google an installer and an unknown firm supplies panels from a maker you have never heard of. He has told everyone this, including Greg Jackson of Octopus Energy. The analogy is sex toys, whose defining moment was Boots stocking them: social proof by implication. A common technology heuristic is 'don't be first with the worst', so people let geeks and show-offs take the hit, then jump in once a product looks mainstream.

“It's social proof by implication.”

The point: Mainstream retail presence and broad advertising reassure a herd species that a new product is safe and normal to buy.

Variants: One telling adds that early flat-screen buyers paid seven grand for a plasma with an enormous bezel, and that non-targeted advertising is itself a costly signal that something is 'a thing'.

Sources (2)

The car dealer who rang back

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Rory rang a Lotus dealership in Ashford on a Saturday and got no answer, which he accepted. Ten or twenty minutes later the salesman rang back: he had been on his own that day, out on the forecourt with a customer, and had noticed the missed call. Businesses have had caller ID for 20 or 25 years, yet this was only the second time any business had rung Rory back after a missed call; the other was a restaurant in Ventura. A very experienced customer-service consultant gave him one heuristic for telling service-led companies from those that treat service as a cost: are the call-centre staff allowed to call out?

“It's whether the call centre staff are allowed to call out.”

The point: Trivially simple follow-up gestures are so rare that they amaze customers and reveal whether a firm truly values them.

Sources (2)

The Knowledge isn't really about the streets

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Utilitarians ask why pay a premium for a black-cab driver to memorise London when a satnav costs a few hundred pounds. Rory suggests the Knowledge was never only about knowledge. It is a sunk cost and proof of commitment: you only spend a year and a half scooting round London on a moped with a clipboard if you are serious. Having invested that much, you would be an idiot to lose your badge by ripping off an American tourist for £12. Rory happily puts his two 13-year-old daughters in a black cab with a stranger; would he if the badge could be had with a TomTom and three evening classes? Medieval guilds worked the same way.

“The fact that it's so difficult, it's a barrier to entry, is a reason to trust.”

The point: A costly qualification acts as a bond: people with a lot invested have too much to lose by cheating.

Sources (2)

The missed train on an advance ticket

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If you miss your train on an advance ticket, the rail industry makes you buy a full fare. Rory thinks the advance fare should count towards it, or better, the company should let you on the next train if it is not busy. Finance people will go crazy, but that is one of those little moments of civility that disproportionately shape how we feel about a brand. The evolutionary psychologist Nichola Raihani wrote to him that her train back from honeymoon arrived late for the Eurostar, voiding tickets booked months earlier and costing over £300 more. Legal, but bad business: it deters future travel and hits the cash-constrained hardest. John Locke noted in 1690 our particular moral aversion to profiting from another's misfortune.

“Anything which profits from another person's predicament is a really bad idea in terms of people morally hating it.”

The point: Profiting from a customer's bad luck provokes lasting moral outrage, while small discretionary leniency builds loyalty far beyond its cost.

Variants: One telling stresses that leniency requires giving staff discretion to use contextual intelligence and surrendering some control of costs.

Sources (2)

The parents of triplets who wrote to homeowners

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A couple with triplets wanted to move to Chesterfield but could not find a house. They picked a street they liked, identified houses they could afford that were not on the market, and handwrote letters to the owners explaining their circumstances. Several replied, five invited them round, three or four made offers, and they bought a house. People who thought their house was not for sale decided it was. A decision as momentous as selling your home was changed by a handwritten letter, Rory says, precisely because of the effort invested. A firm that semi-automates handwritten letters reports response rates 10 to 20 times higher than other media.

“The expenditure of time is fundamentally perceived as commensurate with the scale of a decision.”

The point: Visible effort gives a message weight, so slow, costly communication can move decisions that cheap messages never touch.

Variants: The numbers vary between tellings: 15 to 25 letters, six or eight replies, three or four offers.

Sources (2)

The Southern Water call that made the brand

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On a Sunday in Deal, Rory's wife spotted water fountaining out of the pavement and asked him to report it. He rang Southern Water's emergency line. It answered at once, and the woman, a northerner, he notes, was charming, efficient and grateful: he was the second caller, it was an emergency, and someone would be there within two hours. He knows nothing else about the company, not even its financials, but now thinks Southern Water is a brilliant company: 98 per cent of his brand perception comes from that one call. Humans overweight human experience, which is why Rory thinks a good waiter, bar person or call-centre operative should be able to earn six figures.

“98% of my brand perception of that thing has been driven by that phone call.”

The point: One excellent human interaction can define a brand more than anything else it does, so frontline staff are worth far more than they are usually paid.

Variants: One telling frames it as a 'brandquake': a single experience with disproportionate effect.

Sources (2)

The Versace wearer is happier than the Max Mara wearer

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In Succession everyone wears understated Max Mara or vicuña cardigans that only fellow billionaires recognise, and a colleague called that real luxury. Rory disagreed: you are still worrying about what somebody else thinks, just a tiny discerning group. In a way the happiest people are probably those wearing Versace, or a logo eight feet high, who just think 'I'm minted and I don't care who knows it', with no anxiety about how it comes across. Not caring about the opinions of your fellow man is a kind of wealth, like moving to a low-tax regime: you gain freedom by spending to entertain yourself rather than to impress.

“The happiest people are probably the people wearing Versace who just go: I'm minted and I don't care who knows it.”

The point: Discreet luxury is still status anxiety; freedom from caring what others think may be worth more than good taste.

Sources (2)

To seem trustworthy, lose the tie

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If you want to appear credible and trustworthy, Rory has long suggested, do not wear a tie. The shirt, tie and suit were once a proxy for probity and respectability, but they have become close to the opposite; in tech land you would never go near one. He thinks bankers interviewed on television dress for other bankers, and that anyone in finance would seem far more trustworthy on TV without the old uniform: not jeans and a hoodie, perhaps a tweed jacket. A reasonable degree of eccentricity comes across as authenticity, and we have half a million years of practice detecting people who are faking it.

“If you want to appear vaguely credible and trustworthy, don't wear a tie.”

The point: Trust signals decay and can invert, so the uniform of respectability can come to read as fakery while mild eccentricity reads as authentic.

Sources (2)

Trust grows like a coconut tree and falls like a coconut

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Rory often quotes a Caribbean proverb: trust grows at the speed of a coconut tree and falls at the speed of a coconut. It takes years to build and can be destroyed overnight. That is why private equity firms can buy a highly trusted company and within weeks erode the very trust that made it valuable, and why a few bad actors, such as subscriptions that are hard to cancel, make consumers assume the worst about a whole market. London taxis work because you can put your ten-year-olds in a stranger's cab without a thought; if even 4 per cent of drivers were dodgy, the business would collapse. Trust is hard to quantify, but that does not mean it is not valuable.

“Trust grows at the speed of a coconut tree and falls at the speed of a coconut.”

The point: Assets that are slow to build and quick to lose, like trust, need protecting even when their value cannot be measured.

Variants: In one telling the proverb backs a call for tougher rules on hard-to-cancel subscriptions, adding that if one in 20 Amazon orders failed you would quit even at 7 per cent cheaper; in another it is a warning about private equity. Rory also uses it to close the James Hoffmann story.

Sources (2)

Two Quakers doing business need no lawyers

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A tiny Quaker population gave rise to Barclays, Lloyds, Friends Provident, Cadbury, Rowntree and the Stockton and Darlington Railway; Quaker Oats merely borrowed the image for its trustworthiness. Quakers would not swear oaths, because anything they said already had the force of one. That made them spectacularly efficient: two Quakers doing business needed no lawyers or trust-grating intermediaries, so transaction costs vanished. I'd like to buy your chocolate factory. 20,000 guineas. Done. Much of British banking, now in a crisis of trust, was built by deeply religious people with a social purpose. Rory thinks the country needs a Quaker revival, though Quakers are bad at marketing.

“You don't need any lawyers when you've got two Quakers doing business.”

The point: High trust is an extraordinarily efficient form of capitalism because it strips out the cost of verification and enforcement.

Variants: One telling adds that the chocolate makers existed because teetotal Quakers wanted alternatives to alcohol; another that being barred from Oxford and Cambridge pushed them into useful work.

Sources (2)

We trust a kebab shop more than a kebab van

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We instinctively trust a kebab shop more than a kebab van. The shop has invested in a lease, premises, the rotating spit and leaflets, and depends on repeat local custom, so it must treat everyone as a potential regular. A kebab van can poison three people in a town and just move on 20 miles to start again; a festival van has no prospect of repeat business at all. That sunk investment is a good proxy for whether someone intends to be an honest player who stays in the market for a long time. Economists assume complete trust in their models, which Rory calls about the most stupid thing you can do, since much of our evolved brain concerns when to trust.

“The kebab van can poison three people in a town and just move on 20 miles to start again.”

The point: Visible, immovable investment signals that a seller plans to stay, which is what makes them trustworthy.

Variants: One telling is framed by Dan Ariely's point that consumers need a reliable sign you are on their side.

Sources (2)

Wine is the respectable dressing for alcohol

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Rory is sceptical about wine. Beneath the choice architecture, he suggests, we simply like alcohol, and wine is the acceptable middle-class dressing in which to consume it: basically alcoholics pretending to be connoisseurs. Go out to lunch and share a couple of bottles of wine and everyone thinks that is fine; you are a bon viveur and a respectable bourgeois chap. Go out to lunch and have tequila slammers all afternoon and you get reported to HR. We buy wine less for its effect on us than for the impression it makes on others.

“If you go out to lunch and have tequila slammers all afternoon you get reported to HR.”

The point: Social framing can make identical behaviour respectable or unacceptable, so many consumption choices are signals rather than preferences.

Sources (2)

A Christmas parcel instead of a sale

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A small Kent clothing company Rory's wife buys from, Lux Leopard [?], did not flog off old stock in an end-of-year sale; instead it simply sent them a package before Christmas. Empirically, Rory says, it has had a huge effect on his loyalty. That is reciprocation. Too much of business is transactional, if you do this we will give you that, which is not emotionally the same as: here's something extra.

“If you do this, we will give you that. That's not the same emotionally as here's something extra.”

The point: Unconditional gifts trigger reciprocity that conditional rewards do not.

Sources (1)

A degree is a £9,000-a-year interview suit

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Rory asked a Goldman Sachs friend with a double first in maths from Cambridge when it stopped mattering. About four to five years in, he said: after that it is about what you have done, so why rely on an artificial proxy when you have a real measure? Higher education, Rory says, is like an interview suit: you spend nine grand a year on a fancy suit and shiny shoes for your first job interview. Using it as a proxy is lazy and rejects a lot of talent.

“You're spending nine grand a year basically to get a fancy suit and shiny shoes for your first job.”

The point: Credentials are a decaying signal, replaced by evidence once real performance is visible.

Sources (1)

A happy man earns more than his wife's sister's husband

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Agreeing with a fellow speaker that status is relative, Rory quotes an American humorist: a happy man is any man who earns more than his wife's sister's husband. Our perception of wealth and happiness is relative, so the idea of absolute utility is nonsensical. Within reason, we want a car commensurate with, or slightly better than, our neighbour's.

“A happy man is any man who earns more than his wife's sister's husband.”

The point: People judge wealth and satisfaction relative to peers, not in absolute terms.

Sources (1)

A hot tub must be great, really

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As an ad man, Rory has a soft spot for toffs, the working class and the nouveau riche, because they put much less effort into status signalling and spend on things that are genuinely enjoyable. Jerry Seinfeld called swearing in comedy a Corvette; Louis CK, from a blue-collar home, said a Corvette was a fantastic car. Middle-class Britons will suffer real pain before arriving at a house with music playing through open car windows. Rory teases his wife: no journalist has a hot tub, but let's be honest, a hot tub must be great.

“Let's be honest, a hot tub must be great.”

The point: Middle-class status anxiety suppresses enjoyment that less status-conscious groups embrace.

Sources (1)

A hundred indestructible cars would wreck motoring

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Rory once posted a thought experiment on Facebook: if someone built just 50 or 100 indestructible cars, cars that suffered no damage when they hit anything, the whole basis of trust on the roads would collapse. The reason we do not answer road rage by reversing into the driver behind is that it would damage our own car too. The harm may not be proportionate or fair, but nobody can crash without suffering some cost themselves, and that shared vulnerability keeps everyone behaving.

“The reason we don't respond to road rage by reversing into the person behind is because it will damage our own car.”

The point: Mutual vulnerability, not rules, is what makes strangers cooperate; remove someone's downside and you remove the trust.

Sources (1)

A physical letter from Google means something

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Rory recently recommended that one of the big five Silicon Valley firms sell a product through direct mail. Nobody is bombarded with post any more, so a physical letter from Facebook, Google or Microsoft communicates things an email or programmatic ad would not: the specialness of the recipient and the importance of the product. Costly signalling is part of it, though not the only part. Direct mail would suit opening an exclusive club for the same reason.

The point: A rarer, costlier channel signals importance that a cheap digital one cannot.

Sources (1)

Advertise the airline's scones, not its aircraft

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Picture an airline board that has spent three hours choosing between 13 Airbus A350s and 11 Boeing 787s at $150 million each, then sees an ad that shows no aircraft but focuses on the cucumber sandwiches and scones served on board. It sounds like nonsense, but around 90 per cent of passengers have no idea what plane they are on, and infer a great deal about safety and quality from the care taken over snacks. Likewise, 'feature more ducks in our advertising' is harder to propose than 'cut the price', but could be far more profitable.

“Which would be easier to make in a board meeting? 'We should reduce the price' or 'We should feature more ducks in our advertising'.”

The point: Customers judge what they cannot assess by small visible cues, so trivial details can carry big signals.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Amazon gifts are flowers from a petrol station

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If you want to signal generosity, Rory says, Amazon has a weakness as a gift-giving platform: its low prices and convenience make it the equivalent of buying your wife flowers from a petrol station. It says 'I didn't really put much thought into this, did I? I just typed in socks and got Amazon to send them.'

“It's the equivalent of buying your wife flowers from a petrol station.”

The point: Convenience undermines a gift's signal of effort and care.

Sources (1)

Ask a guest to move their booking and they may like you more

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Rory suggests restaurants use the Benjamin Franklin effect: we like people more after doing them a favour, if they ask nicely and say thank you. Ring a guest and say, only if you're free, it would really help us if you could come at 8 rather than 7.30. You fear you've imposed, but there's a high chance they like you more, reasoning I've done these people a favour, so I must like them. Don't cancel them or move them to 11pm. Change the psychological frame and things you thought impossible become possible.

“I've done a favour for these people, so I must like them.”

The point: Small, polite requests can build loyalty, because helping someone makes us like them.

Sources (1)

Ask for a pink company car

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Rory wants to bring back the company car, partly for tax reasons but mainly because it signalled an employer's long-term commitment. Bonus systems are inherently transactional and say nothing about a continuing relationship. He always said the best way to test your employer's loyalty was to ask for a pink company car, because they would struggle to offload it on anyone else. Training works the same way: an upfront costly signal that would make no sense if they planned to get rid of you in eight months.

“If your employer got you a pink company car, you knew they really were interested in keeping you.”

The point: Costly, non-transferable investments signal long-term commitment in a way cash bonuses cannot.

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Auto-enrolment works because colleagues herd like antelope

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About 90 per cent of people accepted workplace pensions under auto-enrolment. The standard explanation is the default. Rory thinks everyone missed something bigger: nobody has ever trusted financial services, as Old Testament law and Islamic banking attest. But if a connected group, such as a company's employees, all buy the same product from the same provider, it becomes trustworthy, for the same reason antelope herd: only one needs to notice something wrong. That is why Captain Mainwaring was trusted: his customers all knew each other.

“You only need one antelope to notice something wrong.”

The point: Buying in a connected group creates reputational feedback loops that make otherwise distrusted products trustworthy.

Sources (1)

Beating protesters with an 8.30am talk

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Jordan Peterson's talks kept being disrupted by protesters, so he started speaking at about 8.30 in the morning. The protests largely stopped. Rory's reading: the protesters were keen to signal how distressed they were by his opinions, but not to the extent of setting an alarm clock. Scheduling the talk early separated the costly signal from the cheap one.

“They are very keen to signal the extent to which they are distressed by his opinions, but not to the extent of setting an alarm clock.”

The point: Adding a small cost to an action filters sincere commitment from cheap signalling.

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Beliefs held for what they say about you

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Rob Henderson, who grew up in Los Angeles orphanages, and Paul Dolan can look at the self-appointed middle-class intelligentsia as outsiders. Rory notes that some beliefs are held not because they solve a problem but because of what they say about the holder: a form of costly signalling. 'I can afford not to care about the things that threaten thin-skinned people; I am above such concerns.' Such beliefs may not survive contact with empirical reality, but that is not their point.

“Beliefs that are held not because they solve a problem but because of what they say about the person who holds them.”

The point: Opinions can function as status signals, which explains their persistence despite weak evidence.

Sources (1)

Below 97 per cent on eBay, nobody buys

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A bad toaster sullies one brand, not toasters; a bad online experience sullies the whole behaviour of buying online. We react to failure disproportionately. Economically, a seller with 98 per cent eBay approval who is 10 per cent cheaper is a good bet. But real humans will not buy from anyone below about 97 per cent at any price: trust is table stakes, not a price trade-off. Rory thinks we evolved to punish unfairness disproportionately, which works for a tribe. His fear is that the online economy grows too slowly because people are once bitten, twice shy.

“It's not a price-trust trade-off, it's kind of table stakes.”

The point: Trust works as a threshold rather than a trade-off, and bad experiences damage whole channels, not just one firm.

Sources (1)

Big consultancy fees are a commitment device

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David Ogilvy heard a client had spent thousands on a new logo and said Ogilvy would have done it for a few hundred. The client replied: I know, but we would have argued it to death. Rory thinks management consultancy works the same way: a massive commitment device, like an engagement ring. 'We've spent so much on these wankers, we really have to follow through on what they recommended', even though most of it came from the client. It's burning your boats, or Odysseus tying himself to the mast.

“We've spent so much on these wankers, we really have to follow through.”

The point: A high price can buy commitment and an end to internal argument, which is part of what clients are paying for.

Sources (1)

Brand preference is not a bias

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Rory is uneasy with the word bias in consumer behaviour, though he accepts it in institutional decisions where goals are stated. Often consumers simply do not know what they are really trying to achieve. Economists call brand preference a bias, but a brand owner has far more to lose from selling a bad product than an unknown seller with no reputation at stake, so paying a premium for a brand is a sensible variance-reduction heuristic. Like Gerd Gigerenzer, he thinks the shift from talking about heuristics to talking about biases was a mistake.

“To call that a bias is unsafe.”

The point: Many so-called biases are rational heuristics for reducing risk under uncertainty.

Sources (1)

Branding other people's vans to look big

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An internet delivery service in San Francisco, Webvan[?], which later went bust, still had a clever idea from its media agency: make it seem really big in San Francisco. Hundreds of people drive around the city in unbranded vans, so the agency paid them a few thousand dollars a month to brand their vans as if they were delivering for the start-up. The drivers were actually plumbers, carpenters, anything. Everyone in San Francisco asked, who are these guys? I see their vans everywhere.

“Who the hell are these guys? Because I see their vans everywhere.”

The point: Perceived ubiquity signals success, and can be manufactured cheaply.

Sources (1)

Bristol Cars wouldn't sell to a man without a garage

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A wealthy copywriter friend went to the eccentric Bristol Cars dealership in Kensington and said he was interested in buying. 'Do you have a garage, sir?' Not yet, he said, he was thinking of building one. 'I'm terribly sorry, if you don't have a garage we wouldn't really be prepared to sell you a car, but when you've built one perhaps you'd like to come back.' Rory calls it weirdly clever salesmanship.

“If you don't have a garage, we wouldn't really be prepared to sell you a car.”

The point: Refusing customers can raise desire and signal exclusivity.

Sources (1)

Build trust by telling people what they don't need

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For new advisers wanting to build trust, Rory recommends Cialdini's 'Influence', and underselling: 'At your stage of life I wouldn't bother with this, or this, or this. But if there's one thing I would do, it's this.' Be long-term greedy, not short-term greedy: there is transactional capitalism and relational capitalism, and advice is relational, maximising the value of a relationship over time. Add discretionary kindness, courtesy and empathy, and first eradicate any behaviours that make you untrustworthy.

“Be long-term greedy, not short-term greedy.”

The point: Visibly advising against your own short-term interest signals that your recommendations can be trusted.

Sources (1)

Bumble's 'no phones' signs

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When Bumble launched on university campuses, as Facebook had, nobody was using it, so it pretended to be much bigger than it was. It put up notices where phones were not supposed to be used: no Facebook, no Instagram, no Snapchat, no Twitter, no Bumble, each with a big cross. Students thought: I have heard of the other four and use them every day, so what is this Bumble thing? It must be big.

“What the hell's this Bumble thing? Must be big.”

The point: Placing a newcomer alongside established names borrows their social proof and implies scale.

Sources (1)

Business culture is about signalling rationality, and numbers win arguments

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Rory says most middle-class life in London is spent signalling how middle class you are: you would be happier outside Greggs with a pie, but you go on holiday to Umbria and drink rosé. Business culture works the same way, except what it signals is rationality, and the best way to look rational is to have some numbers. So anybody with any numbers, however bogus, will beat anybody who only has words. It is very hard to argue against someone who says 73.4.

“Anybody with any numbers, however bogus, will win an argument against anybody who's only got abstract nouns or words.”

The point: Data is dangerous less because it is wrong than because it hands disproportionate power in arguments to whoever holds it.

Sources (1)

Buy a female friend a set of Allen keys

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Nobody has a clue what is expensive or cheap, Rory says: we resent price rises in things we must buy and attach immense value to luxury watches, jewellery or scented candles. Being brutal, nearly all presents women buy for other women are irredeemably useless, flowers and scented candles, though emotionally valuable. If you bought a female friend a Leatherman or a set of Allen keys, she would think it thoughtless or a veiled insult. His economist friend Nicholas Gruen notes that more and more of the economy is performative expenditure: spending as communication, not as an answer to need.

“If you bought a female friend a Leatherman or a set of Allen keys, they'd be completely wrong-footed.”

The point: Much spending is signalling, and a gift may need to be useless to carry meaning.

Sources (1)

Buying a car in a supermarket car park

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A British friend who moved to Australia arranged to buy a car and the seller suggested meeting in a supermarket car park. He felt uneasy, since in Britain you go to the seller's house, but assumed it must be how Australians do things. The car was a total dog. What made him uneasy, Rory says, was that the seller was making an anonymous sale, detaching it from his reputation and where he lived. His host admitted the one car he bought in a car park had its clutch go two weeks later.

“You're trying to detach the sale of the car from you and your reputation and where you live.”

The point: Anonymity removes reputational accountability, so it should lower trust.

Sources (1)

Buying a first car from someone who drinks with your dad

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A few years after university, Rory and two friends could just afford their first crappy second-hand cars. Cars were cheaper in London, yet none bought there. Each instinctively went back to his home town and bought from someone vaguely known to his dad. Clever: the seller might sell dodgy cars, but not to the son of someone who drinks in his pub and could damage his reputation. The same logic explains brands: Philips or Sony selling 50,000 bad TVs would destroy billions in brand equity.

“He's not going to sell a dodgy car to the son of someone who drinks in the same pub.”

The point: We instinctively trust those who have reputation to lose, which is a rational basis for paying brand premiums.

Sources (1)

Buying a used car from the Archbishop of York

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To show why reputation breeds confidence, Rory points out you would feel much happier buying a second-hand car from the Archbishop of York than from someone you just met in a pub. Someone with a reputation cares not only about this deal but about your future deals, your friends' and their friends'. In a one-off transaction, by contrast, the incentive is to fleece you.

The point: Having a reputation to lose aligns a seller's interests with the buyer's long-term interests, which is why it creates trust.

Sources (1)

Car advice sounds better in a Brummie accent

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Rory says the Brummie presenter on Carwow, 'the new Top Gear', has instant car credibility, because weirdly things to do with cars have more credibility said in a Birmingham accent, home of the motor trade. He knows the presenter is trying to sell cars for Carwow and plugs it, but takes what he says at face value: he has reputational skin in the game. In a world where more information has an ulterior motive, people will seek authenticity.

“Things to do with cars have more credibility if said in a Brummie accent.”

The point: Accents and other cues borrow credibility from associations with expertise.

Sources (1)

Choose the taxi with the religious icons

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Religion is a mechanism for trust. Rory cites the atheist anthropologist Jesse Bering, who in a strange country always picks taxis with religious icons dangling from the rear-view mirror. He doesn't believe in a bloke in the sky, but likes that the driver does: if the driver thinks someone is watching, he is probably less likely to club you over the head. You don't want Richard Dawkins as a taxi driver.

“You don't want Richard Dawkins as a taxi driver.”

The point: Belief in being watched makes people more trustworthy, so visible signs of it are useful trust cues.

Sources (1)

Choosing a financial adviser for their Zoom set-up

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Rory admits he partly chose his financial adviser, ridiculous as it sounds, because they had a really good Zoom set-up: they had nerded out and bought an SLR camera to use as a webcam. He thought, that is how I want to interact with my adviser, so I want someone who has invested in doing it well. It was a general mark of professionalism that they were prepared to speculate to accumulate.

The point: Visible, voluntary investment in a small detail signals commitment and professionalism.

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Choosing by ratings, best book of the year, or really boring?

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Rory takes a dig at Scott Galloway's claim that we no longer need brands because we can simply choose using ratings. To show how well that works, he reads two Amazon reviews of John Kay's book. One: 'The best business book of the year. John Kay is an elegant writer tapping into an enormous knowledge base.' The other, one star: 'Really, really boring.' Take your pick. 'I'm sure that's helped you all decide.'

“I'm sure that's helped you all decide.”

The point: Ratings are noisy and contradictory, so brands still do work that reviews cannot.

Sources (1)

Close at five, but hover by the door

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Rory's tip for small coffee shops: close at five, but hover by the door for three or four minutes. If someone runs up desperate for coffee, make a big show of unlocking the door, let them in and serve them: a customer for life. Let someone in at two minutes to five then say sorry, we're closed, and you've lost them for ten years; he has boycotted two shops for exactly that. Emotion derives from meaning, which derives from context: as Bourdieu notes, a returned present is an insult.

“Make a big show of unlocking the door and let them in and serve them, and you've got a customer for life.”

The point: The same act can be generosity or insult depending on framing, and people remember the emotion for years.

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Cutting biscuits to signal frugality

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Firms save on office space but don't ring-fence any of it for staff entertainment, which is a rounding error anyway. Rory says finance departments cut it not because it costs money but to signal frugality; the Civil Service got rid of biscuits in meetings. Yet any meeting without tea and biscuits feels faintly unnatural, violating thousand-year-old norms: leave room for anthropology, not just economics. Nobody was ever paid for serendipity or coaching. He suggests that every fifth Friday, teams go out for lunch and don't come back.

“Any meeting without tea and biscuits is just faintly unnatural.”

The point: Trivial hospitality carries social meaning far beyond its cost, and cutting it to look frugal destroys goodwill.

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Dimitri, you shag one sheep

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Rory tells the joke of a Greek villager called Dimitri. He built the church on the hillside with his bare hands, built and donated the boats in the harbour, paid for the harbour wall. But do they call him Dimitri the church builder or Dimitri the boat builder? No. You shag one sheep. The point: reputation is not additive. One or two bad acts colour everything, which is why nobody remembers Jimmy Savile's charity work.

“Do they call me Dimitri the harbour builder? No. You shag one sheep.”

The point: Reputation follows multiplicative dynamics, so a single catastrophic act cannot be offset by many good ones.

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Distrust is a turd on a bowl of cherries

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In one of the most bizarre experiments in behavioural science, researchers found that a turd on top of a bowl of cherries renders the whole bowl disgusting, unsurprisingly. But a cherry on top of a pile of turds didn't make the turds any more attractive. Distrust is like the turd: its mere presence, regardless of the ratio, is enough to render repulsive anything it touches. Trust is massively asymmetrical in perception.

“Distrust is like a turd: its mere presence, regardless of the ratio, is enough to render repulsive anything with which it comes into contact.”

The point: A small amount of distrust contaminates everything, and good elements can't offset it.

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Driving an Audi screams I work in financial services

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Rory is a massive car lover and admired the Chris Bangle-era BMWs, but says he can't buy one. Part of his shtick is being a bit left field, and if he drove around in an Audi it would scream I work in financial services, I aspire to managerial roles. So he has always bought slightly weird cars. He teases the host, a Tesla owner whose car has been keyed three times, about getting an I bought this before Elon went mad sticker.

“If I drive around in an Audi it kind of screams I work in financial services.”

The point: Product choices signal identity, so people avoid good products whose image clashes with who they are.

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Dumped for waiting for the TGI Fridays police discount

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Small, almost trivial acts of discretionary generosity have an extraordinary effect on trust; they signal I'm not a psychopath. Suggesting splitting the bill is a famous turn-off. A colleague dated a policeman who got special offers for cops, and he told her he couldn't meet on Wednesday because the TGI Fridays offer didn't start until Thursday. She ditched him. Someone so optimised around the transaction seems incapable of the tacit reciprocity a marriage needs. He might make a fantastic procurement officer.

“They may make a fantastic procurement officer.”

The point: Visible stinginess signals untrustworthiness in relationships, personal and commercial.

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Established 2003

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Longevity is another trust signal. Rory notes that American firms will proudly say established 2003; in Britain you cannot do that, it has to be 1790 before you put it up. Yet the message is not irrational: a business that has invested time and effort building a reputation is more trustworthy than one that has just started.

“Hey, we've been going for a decade, wow, we're like traditional.”

The point: Time in business signals accumulated reputation at stake, though what counts as old is culturally relative.

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Expensive wine is bought to mark an occasion

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Wine expert Joe Fattorini told Rory the main reason people spend a lot on wine isn't to get better wine; it's to mark an occasion. Women's fashion is similar: there's an appropriate spend for your best friend's wedding versus popping to the shops. Unless your best friend is Anna Wintour you could wear something from ASOS or Zara and nobody would know, but you'd know. High spending in many categories is the anthropological urge to say: this is special, this time is different, the usual rules don't apply.

“Nobody would actually know, but you'd know.”

The point: Spending functions as a ritual signal of significance, so price itself is part of the product.

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Farage chats to the bar staff

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At most political gatherings the important people keep looking over your shoulder in case someone more important walks in. Rory has met Nigel Farage once or twice and noticed he is entirely indiscriminate with his attention: he will be chatting with the bar staff. The public's antennae pick that up. From our chimp ancestry, when deciding whether to grant someone silverback status, what matters is not what I think of them but what I think they think of me.

“It's not what I think about them, it's what I think they think about me.”

The point: People judge leaders by how those leaders seem to regard them.

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Fly with confidence, invest the same way

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Rory describes a bank advertisement at Heathrow that asks: you can fly with confidence, so why can't you invest the same way? It made him realise he genuinely feels more confident boarding an aircraft than putting money in a bank. Part of the reason, he suggests, is simply that the pilot is made to sit at the front of the plane. The person flying shares your fate, whereas the banker does not, which is why one industry earns trust and the other struggles to.

“I feel more confidence getting on an aircraft than I do putting money in a bank.”

The point: Trust follows visible skin in the game: we trust systems where the decision-maker suffers the same consequences as we do.

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Ford owns nothing it owned in 1924 except its name

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Rory notes that the Ford Motor Company does not own a single asset it owned in 1924: no factory, employee or real body of knowledge, perhaps the odd patent. The one thing it still owns is its name, meaning the consumer's expectation that it has enough reputational skin in the game not to produce a bad car. A brand is also the capacity to reinvent everything else while keeping that trust.

The point: A brand is a durable store of reputation that outlives every physical asset of the company.

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Good manners are marketing

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Economists think people only want low prices because they assume perfect trust and information. Game theory says one-off games reward defection and repeated games reward reputation. You signal you're in the game for the long term by doing things that cost up front and pay off only over time. Rory counts good manners as marketing: opening a door, standing when someone enters, every polite act takes more effort than being a rude tosser, which shows you expect to deal with people again.

“We automatically trust people who do things that have an upfront cost and a long-term payoff.”

The point: Up-front effort signals long-term intent, which is why it builds trust.

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Hoverboards and the categories that die without brands

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Rory argues that without brands, markets break down. Hoverboards were made by many manufacturers and branded only by importers; when some caught fire, people lost trust in the whole category. Had there been a Panasonic or Samsung hoverboard, he thinks people would have bought with confidence and the category would have survived. Early mobile phone shops and phone repair were a similar Wild West, which is why a chain like iSmash appears; timeshare was a brilliant idea that attracted bad actors early and was ruined. A purchase is a bet on the outcome, so expectation matters as much as service.

“In the absence of brands, you have market breakdown.”

The point: Brands with reputational skin in the game make good categories viable by protecting them from bad actors.

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If you've already got a boat, why go to Yale?

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Rory urges listening to Rob Henderson, who grew up in foster homes in a poor part of LA, joined the US Air Force and then went to Yale. Watching shows like The Fresh Prince of Bel-Air, he could not understand why rich characters were obsessed with getting into college. Where he grew up, working at Pizza Hut, what you wanted was money, so you could buy a boat. If you have already got the boat, why would you want to go to Yale? Rory admits he is more impressed by the Air Force.

“If you've already got a boat, what the hell would you want to go to Yale for?”

The point: Status goods differ by class; credentials matter mostly to those already comfortable.

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It's what people think brands think of them

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Rory quotes Mark Fox, who used to run Starbucks UK and thought marketing was mostly rubbish, but never forgot one sentence from a marketing meeting: it's not just what people think of brands, it's what people think brands think of them. We are highly sensitive to how we are treated as individuals, so marketing should be thought of as a two-way street.

“It's not just what people think of brands, it's what people think brands think of them.”

The point: Customers judge a brand by how it seems to regard them, not just by its qualities.

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Kate Moss could make a bin bag cool

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Some people are disproportionately influential taste-makers, as on coffee or watch YouTube. In fashion, Rory says, the extraordinary thing about Kate Moss was that most people were trying to be cool, whereas Kate Moss could do something and make it cool. If she had turned up at a party in a bin bag, bin bags would suddenly have become a thing.

“Most people were trying to be cool. Kate Moss could do something and make it cool.”

The point: A few highly influential adopters can create a norm single-handedly.

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LA's club for people outside the film business

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Discussing Paul Graham's idea that each city whispers what it values, Rory says Los Angeles whispers that you are as important as your role in the entertainment industry. So LA has a club only for people who don't work in entertainment, because in any other club they'd automatically be at the bottom: you can own a billion-dollar business, but go to the same club as the celebrities and you're treated as second class.

“There's a club which is only for people who don't work in the entertainment industry, because any other club they join they're automatically at the bottom.”

The point: When one status hierarchy dominates, people create separate arenas where they can rank higher.

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Luxury car owners trading down to an electric Skoda

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Skoda's marketing director told Rory that many buyers of its Enyaq electric car came from Audi, Jaguar and other premium brands. Rory himself moved from a Jaguar to a Ford Mustang Mach-E, and the Mach-E forums are full of former luxury car owners. Owning an electric car, even one less clad in leather and walnut, is now the status component; the badge matters less than the fact that it is electric.

“It's not the brand of the car, it's the fact that it's electric.”

The point: Status currencies shift, and a new technology can outrank traditional luxury badges as a signal.

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Machu Picchu selfie acceptable, Maybach selfie absurd

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Status competition is probably innate but its vehicles change. Cars have lost their status power among young urban people: Rory can talk cars with over-50s, but with 28-year-olds it is hopeless, and in London nobody knows what car you own. As evolutionary psychologist Geoffrey Miller points out, you can post a photo of yourself grinning in front of Machu Picchu and that is acceptable signalling; post one in front of your new Maybach and it looks ridiculous. Flexible working, he suggests, may become a status good.

The point: Status signals migrate to new goods, and experiences have replaced possessions for some groups.

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No, dear, you need the off-peak return

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Rory campaigned to keep staffed railway ticket offices, and thinks we will still have estate agents in 100 years because large transactions need a human. When he knows the exact ticket, a machine is fine. But elderly people want a human to say no, dear, you need the off-peak return, and unusual journeys need someone you trust to say: I'll sell you the peak single there and an off-peak return back, it's nine quid cheaper. The machine has no incentive to do that; only the decency of the human.

“There's no incentive to make them better. There's only the decency of the human being.”

The point: Trusted humans add value in exactly the situations automated systems are built to ignore.

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Nobody makes a film about buying a coffee

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Trust is best seen through its absence. Economists in the 1970s noted that lack of trust is friction, sandpaper on every transaction: you can trade without trust, but verification makes it immensely costly. Ransom movies grip us because ensuring a kidnapper returns the hostage once paid is a fiendish trust problem for both sides. Nobody makes a film about buying a cup of coffee. Worse, as in George Akerlof's market for lemons, whole markets, timeshare for instance, can vanish because information asymmetries can't be overcome.

“No one's made a movie about someone buying a cup of coffee.”

The point: Trust is invisible infrastructure: its absence makes transactions costly or impossible.

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Not our fault, but our problem

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At Disney, children queue for two hours, ignore the height sign at the start, and are measured again at the front and found half an inch too short. Disney has a phrase every customer-facing organisation could adopt: it's not our fault, but it is our problem. So the child gets a voucher to go straight to the front of the queue when they return six months later, half an inch taller. Contrast that with telling customers to email an appeals address. Rory cites Dan Davies's The Unaccountability Machine: much business activity is directed at blame evasion.

“It's not our fault, but it is our problem.”

The point: Owning customers' problems even when blameless builds trust that blame evasion destroys.

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Ogilvy's double-refund idea for American Express

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David Ogilvy always wanted American Express to send a very simple letter: take out the card, and if you do not want to keep it after the first year, we will refund you double the fee. Nobody ever had the courage to do it. Rory still thinks it would work.

“If you don't want to keep it after your first year, we'll refund you double the fee.”

The point: An extravagant guarantee signals confidence, but corporate caution rarely allows it.

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Personalisation is best done obliquely

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Rory notes that the Share a Coke name-on-the-bottle idea came from Ogilvy in Australia. But personalisation must be judicious, because it can be spooky when companies play back things they should not know or did not need to know. It is best done obliquely: in a personalised letter, rather than saying you did this, say you may be the kind of person who recently did this. Sensitivity varies by culture, with Germans far more anxious about data privacy than Americans, and marketers, high on openness, are less alert to negative readings.

The point: Signalling what you know about a customer indirectly avoids the creepiness that undermines personal touches.

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Prussian cast-iron jewellery

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Around 1813, wealthy Prussians were encouraged to hand in their jewellery to fund the war against the French, and received replica pieces made of cast iron, inscribed "Gold gab ich für Eisen" (I gave gold for iron). For 50 years afterwards, the highest-status jewellery in Prussia was not gold or diamonds but cast iron, because it said your family had made a great sacrifice. Its symbolic, badge value outweighed any intrinsic value.

“The highest status jewellery you could wear in Prussia wasn't made of gold or diamonds. It was made of cast iron.”

The point: Symbolic meaning can make a cheap material more prestigious than a precious one.

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Psychopaths fake trust from first principles

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Responding to Louis on the banality of evil, Rory suggests trust can be hacked. People who are probably psychopathic, perhaps Jimmy Savile, are often rather good at faking trustworthiness, precisely because they have to work it out from first principles: it isn't instinctive or intuitive to them. He asks Louis whether he was, on one or two occasions, hacked in this way.

“People who are probably psychopathic are quite good at faking trustworthiness, partly because they have to work it out from first principles.”

The point: Trust signals can be learned and performed by those who lack the underlying trait.

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Quakers put the price on the packet

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Quakers, such as the Cadbury family, seem to be very good at building brands; Rory jokes that a Quaker revival is long overdue. A bit of trivia: they were the first to print the price on the packaging. They did it not mainly for marketing but because they thought it honest, since shopkeepers often charged the rich more for chocolate than the poor. Consumers loved the transparency of everyone paying the same price, and it drove sales. The principle came first and the commercial benefit followed.

The point: Visible honesty about price builds trust, and genuinely principled practices can become powerful brand assets.

Sources (1)

Rap, metal and country, liked because others hate them

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Rory recalls that rap, metal and country share an unusual property: among people who dislike them, those who dislike them a lot outnumber those who dislike them a little. Rap is the opposite of the appeal-to-everybody approach, a deeply polarising niche. He wonders whether people like it precisely because others do not, echoing a theory that avant-garde art was embraced not because people loved it but because middle-class people hated it, so liking it showed distinct taste.

“People like it precisely because other people don't.”

The point: Being hated by some can make a product more valuable to others as a marker of identity.

Sources (1)

Reminding customers to claim their boiler service

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When Rory joined a home-care membership, he assumed it offered an annual boiler service hoping he'd forget. Instead they actively reminded him he was due. There's some self-interest, a chance to sell a new boiler, but not relying on inertia struck him as inherently honest and decent, a very big trust anchor. Broadly, you should spend a certain amount of money to prove you're not a corporate psychopath, that this is a value exchange and not a one-way street.

“There's a certain amount of money I think you should spend to prove that you're not a corporate psychopath.”

The point: Forgoing profitable customer inertia is a costly signal of honesty that builds trust.

Sources (1)

Rory's stingy father and his three Dysons

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Rory's father was quite stingy, yet owned three Dyson vacuum cleaners bought new, one on each floor, a four-figure sum. Quizzed, it came down to one customer service experience: a part was missing, he phoned Dyson, they answered, and the part arrived by courier the next day. From then on he would buy nothing else. Rory calls it a trust bomb, or what one American branding agency calls a brand quake: an experience so memorable and unexpected that it changes your mind about everything, which advertising very rarely achieves.

“It was like a trust bomb.”

The point: One excellent, timely service experience can create lifelong loyalty that advertising cannot buy.

Sources (1)

Second prize Bali, first prize London

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Rory's brother, in a Singapore hotel, saw a competition where second prize was a fortnight in Bali and first prize a week in London. Londoners crave Bali; Singaporeans crave London. Long-haul holidays are partly scarcity signalling. Rory, at 60, recommends wintering in the Canaries or Madeira: short flight, good weather, food and people, but no bragging rights, so people avoid it and spend three thousand pounds on a worse holiday. Ogilvy's Expedia line was travel yourself interesting, and as travel gets cheaper the journeys must get more torturous to earn status.

“As travel becomes less and less expensive, the journeys have to become more and more torturous for them to acquire any status gains.”

The point: Destinations are valued for what they say about the traveller, so the familiar is underrated everywhere.

Sources (1)

Setting a £9,000 Rolex by a £100 Seiko

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Neoliberal economics assumes stable preferences and that people know to the penny what they'll pay for utility, so how does the Swiss watch industry exist? Luxury watches and cruise lines are the Galapagos Islands of human behaviour. People set a £9,000 Rolex by looking at a £100 Seiko for a more accurate time. The industry is dominated by pilots' watches for people who can't fly and divers' watches for people who aren't qualified. Partly it's because men aren't generally allowed jewellery, and Swiss Calvinists disapproved of jewellery, so Swiss jewellers reinvented themselves as watchmakers.

“People will set a £9,000 Rolex by looking at a £100 Seiko watch for a more accurate guide to the time.”

The point: Luxury goods sell meaning and status under a pretext of function, which standard economics cannot explain.

Sources (1)

Sign at the top, like an oath before testimony

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Rory defends the finding that signing a declaration at the top of a form rather than the bottom makes people more honest, despite failed replications. Online, people can go back and tweak answers invisibly, whereas on paper a change means visible crossing out. Someone on a call confirmed it replicated for them on paper. And in US courts you swear to tell the truth before giving evidence, not at the end. In business, he adds, you do not care whether things replicate generally, only whether they work for you.

“You swear an oath to tell the truth in court before you give evidence, not at the end.”

The point: Committing to honesty before acting changes behaviour more than confirming it afterwards.

Sources (1)

Sustainable investing beats opencast mining in Darwinian terms

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Asked why sustainable investing has an image problem, Rory doubted it has one with consumers at all. It certainly has no image problem with the people in Apple advertisements, Californians with backpacks drinking Fair Trade coffee. He suspected investing in sustainable projects is far more useful to you in Darwinian terms, in being appealing to the opposite sex, than being mainly involved in opencast mining. The real problem, he argued, is definitional: which economic activities actually benefit the whole.

“Far more useful to you in Darwinian terms in being appealing to the opposite sex than if you're mainly involved in opencast mining projects.”

The point: Ethical choices work partly as social and sexual signals, so the 'image' of virtue is rarely the real problem.

Sources (1)

Tenured professors dress badly, countersignalling

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Humans, unlike animals as far as Rory knows, also countersignal: showing you need not try because you are confident in your other attributes. An academic chasing tenure wears a suit; a tenured professor with lifetime security dresses like a tramp, and Joseph Stiglitz reportedly turned up at the World Bank without shoes. Band members like Liam and Noel can be scruffy because their status makes effort unnecessary. Hipsters drinking Pabst Blue Ribbon work similarly. Rory suggests countersignalling, making it cool to own less, could be harnessed to help the environment.

“People do what they can get away with.”

The point: Deliberately not trying can signal higher status, which might make modest consumption fashionable.

Sources (1)

The airport taxi firm that wouldn't rescue his wife

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In a small town you tend to use one cab firm, so they know you are valuable and will not cheat you: you have a credible threat of defection. Spread £40 a year across six firms and none cares. Rory used one firm for airport runs once or twice a month for years. When his wife broke down and his usual firm was unreachable, he asked them to rescue her. They said no, we only do airport jobs. He never used them again. That threat of retaliation is partly how capitalism is kept honest.

“That's partly how capitalism is kept honest: it's the threat of retaliation.”

The point: Concentrated loyalty gives customers leverage, and firms that ignore it lose far more than one fare.

Sources (1)

The banker who read novels to pull

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In research for an online bookshop, a banker of about 28 talked about books and his buying habits for 20 or 30 minutes. Then, a few drinks in, he asked if he could be strictly honest: he didn't really like reading novels much, he just found that if you had read a couple of Ian McEwans you could pull a better class of girl [?]. Rory suspects McEwan is practically Tinder for a certain class. People will happily talk about literature for an hour without admitting the Darwinian ulterior motive for being well read.

“To be honest I don't really like reading novels very much.”

The point: Stated reasons for consumption often hide status or mating motives people rarely admit.

Sources (1)

The benefit of the doubt for a 28-year Amazon customer

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Rory was a customer of Bookpages.co.uk, the UK online bookshop Amazon bought in the mid-1990s, so he has bought thousands of things from Amazon. When something occasionally fails to arrive, they just send another, because they can see he has claimed non-delivery on about 0.3 per cent of orders. A brand-new customer claiming an 85-inch 8K TV never arrived would reasonably face suspicion. Part of loyalty, he says, is like being a pub regular: you want to be recognised.

The point: Long relationships earn the benefit of the doubt, which customers value as much as any reward.

Sources (1)

The best rating is whether people buy again

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When the host notes that around 95 per cent of EV drivers never go back to combustion engines, Rory says repeat behaviour is the only really reliable measure of a behaviour: whether people who tried it enough to judge then repeat it. On Amazon, the most valuable rating for some goods would not be four or five stars for 'a great USB cable', but whether people buy more of them, the most reliable skin-in-the-game indicator of a satisfactory transaction.

“The only really reliable measure of a behaviour is what you might call repeat purchase.”

The point: What people do again reveals true satisfaction better than what they say in ratings.

Sources (1)

The British Gas app that lights up the meter cupboard

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British Gas has a mobile app for reading your gas meter. The cute detail is a little light switch that turns your iPhone into a torch, because most meters sit in dark cupboards under the stairs. What is the ROI on that? Rory argues its emotional impact is all the greater because there is no self-interest in it. The customer experiences that mean most are not the ones where companies found it easy to take your money, but the ones where someone took trouble for no gain.

“What's the ROI on that?”

The point: Small gestures with no obvious business case build goodwill precisely because they look unselfish.

Sources (1)

The burden of verification

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Anything online must be secured against the world's most dishonest person, because its attack surface reaches everyone with internet access, so you end up treating all your customers as crooks. A third of Rory's weekend went on two-factor verification; his wife spent four unpaid hours moving car insurance between cars, a five-minute phone call once, while someone took credit for call-centre savings. The late Ross Anderson noted that a perfectly secure system becomes unusable by honest users. Rory suggests moving regular customers into a higher-trust zone, as BA does.

“A lot of people have claimed credit for efficiency when all they're really doing is outsourcing work to the customer.”

The point: Security and 'efficiency' often shift hidden labour onto customers and erode relationships.

Sources (1)

The camera shop assistant who down-sold

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Some elderly, fairly well-off relatives of Rory's went into a specialist camera shop intending to buy a 900-pound camera. The assistant asked them lots of questions, realised they would use perhaps 4 per cent of its capabilities, and sold them something cheaper. Why sacrifice commission? Rory says in expertise-heavy categories the staff's pride and identity are vested in giving the right advice. It may also be smart lifetime-value thinking: a satisfied customer comes back for the next camera.

The point: In high-trust categories, professional pride and honest advice build loyalty that outlasts any single maximised sale.

Sources (1)

The car dealer's cup of tea versus the logbook

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A car dealer makes you a cup of tea. It does not instil much trust: the car costs twenty grand and the teabag 2p, and he is plainly trying to sell. But if, a week after you buy, he rings to say you forgot the logbook and he will drop it at your house on his way home, you think: wow. That gesture is patently long term, since he will not sell you another car for three years. Being decent pays when people expect repeated interactions; a lot of altruism is long-term selfishness.

“A lot of altruism is basically long-term selfishness.”

The point: Generosity after the sale signals long-term intent and builds trust in a way pre-sale courtesy cannot.

Sources (1)

The encyclopaedia salesman who waited for rain

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Rory worked with a former encyclopaedia salesman whose trick seemed completely backwards. He'd narrow down to houses that obviously had children, the market for encyclopaedias, then wait for it to rain and stand bedraggled on the doorstep asking to come in. This being the 1970s, he'd cadge a cigarette and a cup of tea, and only then try to sell encyclopaedias. Nobody thinks they're being hacked when they're doing someone a favour; your guard is down, and suddenly you've bought a whole set.

“Nobody thinks they're being hacked. Your guard is completely down because you're doing this person a favour.”

The point: Letting the customer help you lowers their defences and starts a relationship.

Sources (1)

The estate agent stays behind to take the blame

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In the 19th century, a posh, respected local estate agent had huge reputational skin in the game, both commercially and socially, in a small-town prestige economy. Choosing him over someone claiming to be cheap was not irrational, even at a higher commission: it was insurance against being treated appallingly. Rory thinks part of the agent's job is to be the person who stays behind in the place where the house is sold, to suffer the reputational consequences, since a vendor moving 300 miles away is not reputationally vulnerable.

“The job of the real estate agent is to some extent to be the person who stays behind.”

The point: Intermediaries add value by putting their local reputation at stake where the parties themselves have none.

Sources (1)

The fifth presenter with the same gestures

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In the 1990s a large tech company put everyone through the same strict presentation training. The first presenter Rory saw from it was brilliant. By the fifth, presenting identically, one foot forward, a forward hand gesture whenever they mentioned something, it was completely unconvincing and artificial. He calls it a tragedy of the commons: what is rational for an individual politician is catastrophic for the political class as a whole. Hence people flock to anyone who deviates; he would cross the road to see a Corbyn rally.

“The fifth person to do that rendered it completely unconvincing and artificial.”

The point: Techniques that persuade when rare become transparent and off-putting when everyone uses them.

Sources (1)

The house he did not buy because the seller was shifty

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Rory once refused to buy a house because the seller seemed shifty: he would not knock anything off for the second-hand fridge and wanted the full replacement cost. To an economist that is a 400 pound question in a 400,000 pound purchase, a rounding error. But friends who later tried to buy it found part of the garden belonged to the railway company next door; the seller had carved parking spaces out of someone else's land. In a board meeting, though, gut distrust would never count as a reason.

“I've got embedded in me a million years of evolved experience in spotting who not to trust.”

The point: Small behavioural tells carry real information about trustworthiness that spreadsheet decision-making throws away.

Sources (1)

The It's a Wonderful Life bank manager

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Because its name is attached, Samsung cannot afford to make a terrible television. Rory says banking was trustworthy in the era of It's a Wonderful Life for a reason economics misses: the manager knew all his customers, they knew him, and crucially, they all knew each other, because he served one area. Caught cheating two fairly trivial customers, his reputation was toast throughout the town. Destroy that feedback loop for the sake of scale and trust goes with it.

“His reputation was toast throughout the town.”

The point: Trust depends on reputational feedback loops among connected customers, which scale tends to break.

Sources (1)

The luggage firm too frightened to say it never loses bags

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AirPortr collects your luggage from home and checks it in at Heathrow or Gatwick for certain airlines, so you can take public transport and go straight to departures. Rory asked if they had ever lost a bag. Never, they said. He suggested they tell people. They were too frightened: it would be tempting fate. Some claims, Rory notes, only others can make for you, like 'design classic' or 'luxury'. 'Would make a great prime minister' is brilliant marketing; 'I want to be prime minister' is terrible. 'I am funny' does not work.

“Other people can say it of you, but you can't say it of yourself.”

The point: Some qualities only persuade when verified by others, so self-assertion backfires.

Sources (1)

The macho drink in the effeminate glass

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One consumer puzzle baffles Rory: the martini is an extraordinarily macho drink, essentially neat spirit with an olive, yet it is served in a glass that, unless you are auditioning for the next James Bond film, no man can hold at a party without slight social awkwardness. He agrees costly signalling might be the only explanation: you have to be extraordinarily self-confident to do it.

“Unless you're auditioning for the next James Bond film, no guy can stand at a social event comfortably holding a martini glass.”

The point: Some awkward conventions persist because carrying them off signals confidence.

Sources (1)

The Marseille fish buyers who rejected a central auction

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Economics treats intermediaries as inefficiency, but they serve an informational purpose: an intermediary dealing with one buyer repeatedly knows square dealing serves his long-term interest. Rory cites the Marseille fish market, where reformers tried to replace dealers with a centralised auction. The dealers opposed it, unsurprisingly, but so did the buyers: restaurants wanted to keep buying from their guy in an ongoing relationship rather than buying certified skate centrally.

“Once you make everything a one-shot transaction it looks more efficient in an economic model.”

The point: Repeated relationships carry value that efficiency-driven one-shot markets destroy.

Sources (1)

The most trusted timeshare operator in the world

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One reason Ogilvy launched a behavioural science practice was that advertising looks at problems at brand level, when many, trust especially, live at category level. If you're a brand in a category nobody trusts, it doesn't matter what you do individually; you're doomed unless the problem is solved at larger scale. Being 'the most trusted timeshare operator in the world' isn't a fantastic claim. Some categories become so polluted that even honest actors are almost bound to fail.

“The most trusted timeshare operator in the world isn't a fantastic claim.”

The point: Trust problems are often category-wide and must be solved collectively, not brand by brand.

Sources (1)

The Ogilvy typing pool

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In the 1970s Ogilvy had a typing pool: you handed over a handwritten note, it was typed, there was always a mistake, and with no word processors it had to be retyped from scratch. Nobody could claim this added to productivity. Rory suspects it was signalling: a solicitor's firm or Unilever simply could not send handwritten notes and look professional. Its one benefit may have been keeping communication volume low; email, by contrast, is too cheap, shifting the burden of filtering onto the recipient.

“Was that simply because you weren't a serious business unless you sent typewritten communication?”

The point: Costly, effortful formats signal seriousness and ration attention; free channels shift the cost onto receivers.

Sources (1)

The Old Rectory, a Labrador and a wife called Polly

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One nice thing about the British class system is that you reach escape velocity fairly soon. The stereotype: you come back with money and buy the old rectory in Minchinhampton, a flat in London, a Range Rover, a Labrador, a wife called Polly, two children at private school and Soho House membership. At that point you can stop, because anything more is suspicious: own a private jet and people assume you're probably a drug dealer. A royal family whose pleasures were walking round muddy fields in wellingtons created a culture of elite modesty.

“Anything more than that is actually evidence that makes you suspicious: you're probably a drug dealer.”

The point: Status ceilings set by culture can curb conspicuous consumption by making excess look disreputable.

Sources (1)

The rope-handle bag

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Spend 200 pounds on cosmetics or fashion and you get a rope-handle bag. It is no better than a polythene bag, just more expensive: it says we are not stingy here. Five Guys adding an extra scoop of fries after you have bought, or Selfridges sending online orders in far better packaging than necessary, work the same way. Measuring the rope bag's effect would be very hard, since it might pay off months or years later, whereas the dealer's cup of tea is easy to measure. Meaning is inversely proportional to ease of measurement.

“The meaning is inversely proportionate to the ease of measurement.”

The point: Trust-building generosity is hard to measure, so metric-driven budgets risk cutting what works.

Sources (1)

Timing your exit like Keyser Söze

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Uber also has an element of status. Rory times his departure from a building to coincide exactly with the car drawing up, because it makes him feel like Keyser Söze at the end of The Usual Suspects, or Louis XIV. Standing in the rain wondering whether that's your car over there is low-status behaviour; you don't see many rappers doing that.

“Walking out of a building as a car draws up makes you feel like Louis XIV.”

The point: Services can deliver status as well as function, and status is a powerful unmeasured motive.

Sources (1)

Tip soup on him to test for psychopathy

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Rory cites Geoffrey Miller's theory that women on a first date turn up a bit late or do something mildly annoying as a psychopath detection test. A psychopath will lose his rag: I've been sitting here like an idiot for 15 minutes. A normal person says, I've only just got here myself. The perfect test might be to bribe the waiter to tip soup on him. Using personal qualities as a proxy for decisions too complicated to reduce to numbers is economically suboptimal but reduces downside variance, the barbell approach.

“The perfect test might be you bribe the waiter to tip soup on them.”

The point: Small provocations reveal character, a cheap heuristic for avoiding catastrophic downside.

Sources (1)

Two stories, one for the big donor, one for the small

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Charities are judged on how much money goes to the cause, a bad metric: you could throw money in the street and claim 100 per cent. A well-run charity should spend on evaluating its programmes. Rory's dream solution is a benefactor who funds the back office, so everyone else can be told none of their money pays salaries. He recently gave a charity 1,000 pounds that helped it raise about 6,000, and felt great. The small donor hears 'you helped save the chapel'; the big donor hears 'your thousand raised five thousand'.

“The story to the small donor is you helped save King's College Chapel.”

The point: Different donors value different things, so tell each the story that makes their gift feel most effective.

Sources (1)

Watch nerds keep luxury brands honest

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The watch industry has two customer bases: status seekers and watch nerds. The nerds keep companies honest. It would be easy to sell a £9,000 watch with a £20 movement to 90 per cent of buyers, but you can't risk it, because the nerds will call you out and you'll lose all your status. Many brands, cars included, are kept honest by the 5 to 10 per cent who really know. But sometimes you can't be enthralled to your fanatics: Jaguar and Ferrari's electric cars scandalised loyal followers, as Bob Dylan did folk fans when he went electric.

“The watch nerds will call you out and you'll lose all your status.”

The point: Expert minorities enforce quality for everyone, though over-deference to them can block necessary innovation.

Sources (1)

What has this bastard got to lose if he rips me off?

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The brain is not a very good calculator, Rory says, but it is a very good game theorist. On one theory, much of advertising works through reputational game theory. The buyer of an advertised product asks: what has this bastard got to lose if he rips me off? A firm with an expensive reputation built up over years of advertising is reputationally fragile, so you can trust it. Someone you have never heard of, with no shame or reputation at stake, earns far less trust.

“The brain is actually not a very good calculator, but it's a very good game theorist.”

The point: Advertising builds trust by putting a costly reputation at stake, which only game theory, not linear maths, captures.

Sources (1)

What you lose in manoeuvrability you gain in intimidation

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A globalised car market produces cars too big for Britain's unusually narrow roads; Rory's Lotus Eletre is a bit too big. But he has discovered that in London, what you lose in manoeuvrability you make up for in intimidation. That, he thinks, is why people drive Range Rovers: not because they are easy to drive round London, but because everybody gets out of the way.

“What you lose in manoeuvrability, you make up for in intimidation.”

The point: Products are bought for social effects that their stated function does not explain.

Sources (1)

When you had to go to Milan for a Prada bag

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Part of luxury's artificial scarcity used to be geographical: if you had not been to Milan or London you would not own a Prada bag. Now anyone can buy one on eBay, and replicas and YouTubers slicing open 20,000-pound bags to show ordinary leather undermine the mystique. Rory expects status-seekers to look for scarcity elsewhere, so status becomes an act of curation or discovery rather than expenditure, which favours quieter craftsmanship brands such as Polene.

“It will be an act of curation or discovery rather than just an act of expenditure.”

The point: When the internet removes a scarcity, status migrates to whatever remains scarce, such as taste and discovery.

Sources (1)

Why banks build marble halls

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Trust is the bedrock of economic activity, yet we barely understand it because it is an elephant process. Why do banks build marble buildings with big oak halls? We never consciously calculate it, but lending £10,000 to a random bloke in the pub risks him leaving town. Someone who has spent a fortune on an immovable asset with a high upfront cost is clearly not planning to go anywhere soon, so we trust him.

“Someone who spends a fortune on an immovable asset automatically conveys to us trust.”

The point: Costly, irreversible investment is an instinctively read signal of commitment and trustworthiness.

Sources (1)

Why Rory trusts Android buyers

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Rory uses a Samsung Galaxy and admits the latest iPhone may be slightly better. But he knows there are about 200 million people who would queue to buy the next iPhone if Tim Cook announced it was a turd on a stick. Because of that herd mentality and cultish loyalty, he cannot trust Apple's social proof. Android buyers, by contrast, are rational actors who bought despite the fashion, so the popularity of an Android phone is a reliable signal of its quality.

“If Tim Cook stood up and announced that the next iPhone was going to be a turd on a stick, they'd still rush out and queue and buy it.”

The point: Social proof is only informative when people choose against the fashion, not along with it.

Sources (1)

Why the iPhone camera keeps changing

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Rory could not see why so much effort went into phone cameras until he realised the camera is the only external cue that distinguishes an iPhone 17 from a 16 or 15. Without a visibly different camera bump, only tragic nerds measuring a bezel two millimetres thinner could tell the models apart. So Apple builds a narrative around photographic capability partly to give the outside of the phone a new look, letting buyers enjoy the signalling value of the latest model.

“If you do not innovate with the camera, there is no visible difference between an iPhone 17 and an iPhone 16.”

The point: Product innovation is often steered by the need for a visible signal, not just by utility.

Sources (1)

Why Uber drivers prefer a 4.9 to a 5

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Asked whether people prefer a 4.7 to a perfect five-star review, Rory notes Uber drivers prefer a passenger rated 4.9 or 4.8 to a 5. A five may be a brand-new customer rated by default, or someone kicked off the platform who re-registered under a fake name. A 4.9 has taken perhaps 150 trips and been slightly annoying once, which is more reliable than five perfect journeys. People are astoundingly astute at spotting such things instinctively.

The point: A slightly imperfect record backed by history is more credible than a perfect but thin one.

Sources (1)

Without brands, capitalism doesn't work

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Economics assumes perfect trust, so every transaction is a single-shot one-night stand, and it does not understand relationships. Rory insists that without loyalty and brands capitalism does not work. Brands are the units of selection by which consumers reward delivery with repeat purchase or punish failure with defection. Without branding, as the Soviet Union discovered, manufacturers race to meet official specifications as cheaply as possible and never innovate, because nobody can buy more of the better product if it has no different name.

“In the economic world every transaction is a single-shot one-night stand. They don't understand relationships at all.”

The point: Brands and repeat purchase create the feedback that makes markets reward quality.

Sources (1)

You'd trust John Cleese with your laptop

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If John Cleese walked in, you would happily leave your laptop with him; it would never occur to you he might steal it. One reason is that he is famous, so being caught would be deeply embarrassing. We understand brands the same way: something famous has so much reputational capital at stake that it has more to lose from treating us badly. If Samsung makes a batch of a thousand bad televisions, it probably scraps them; a random brand with a Scrabble-tile name on Amazon has no such reason.

“Not for a millisecond would it occur to you that John Cleese was going to nick your laptop.”

The point: Fame and reputation act as collateral, which is why people rationally pay a premium for brands.

Sources (1)

You're buying your children a peer group

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A few very honest parents with good metacognition admit that in private and elite higher education they are buying their kids a peer group, not an education. One American family put their child in an expensive British private school because the contacts were more valuable than those from an Ivy League university, and cheaper per year. Some describe American higher education as a luxury goods business: like Rolex, Harvard could mass-produce its product but keeps it scarce to maintain its value. Rory thinks that raises ethical concerns: it's sold as education but is really access.

“I'm actually buying my kids a peer group, I'm not buying them an education.”

The point: Elite education's value lies largely in scarce access and networks, sold under the pretext of learning.

Sources (1)

Your draw depends on how far you travelled

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Rory often flies to Australia and wonders why they brought him all that way when they could have asked Jason Collins, a brilliant evolutionary thinker based in Perth. It's a bit like Jesus: no man is a prophet in his home town. The audience you draw depends on the distance you have travelled.

“The amount of audience which you draw depends on the distance to which you travel.”

The point: Distance travelled is a costly signal that inflates perceived expertise.

Sources (1)

Your neighbour's Ferrari might make you happier

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Books like Miller's and Will Storr's The Status Game risk inducing depressive episodes, Rory says, not because they're wrong but because they're right: am I really that shallow? Richard Layard argues buying a better car makes your neighbours less happy by shifting their comparison. Rory isn't sure: a car obsessive whose neighbour buys a Ferrari would be delighted to chat about torque vectoring. Jay Leno's garage makes him one of the great philanthropists, turning money into a pleasure both selfish and generous. Status currencies change: once it was the first LED digital watch.

“Translating money into something which is both a selfish pleasure and a generous pleasure.”

The point: Status display can be positive-sum when others share the enjoyment, so conspicuous consumption is not simply zero-sum.

Sources (1)

Your view of Royal Mail depends on your postman

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Royal Mail's marketing director did extensive brand research and could not make sense of attitudes, which seemed random and polarised. One extra study revealed that your attitude to Royal Mail depended almost entirely on whether you liked your postman. Rory adores his, and defends Royal Mail. In 20 years nothing has gone missing. But you notice the one letter lost, not the 6,000 that arrive: the world is full of informational asymmetries, and one reason we need marketing is to redirect attention to what is not salient.

“Your attitude to Royal Mail as a brand was almost entirely predicated on whether you like your postman.”

The point: Personal contact outweighs abstract brand attributes, and good performance is often invisible.

Sources (1)

Pricing and value 159

Nespresso, the machine is practically making me money

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If Nestlé had been completely rational it would never have launched Nespresso: its data showed no evidence that anyone would pay 60 or 70 cents for a coffee made at home. By caffeine dose, Nespresso sold in a jar would cost something like £40 to £50, which looks insane next to a jar of Nescafé or Maxwell House at about £3. But it does not come in a jar. It comes in a pod, an individual dose, and nobody knows what one cup of Maxwell House costs. So the frame of reference is not Nescafé but Starbucks. You drop a 29p pod into the machine, think that would have cost £2.20 at Starbucks, and conclude the machine is practically making you money. Rory calls it psychological arbitrage: a breakthrough achieved by price comparison alone.

“This machine's practically making me money.”

The point: Changing the unit of sale changes the comparison people make, so a product that is objectively expensive can feel like a saving.

Variants: The notional jar price ranges from about £30 to £70 (or the dollar and euro equivalent) and the pod from 28p to 80 cents across tellings; the Starbucks comparison and the punchline never change.

Sources (11)

Rolls-Royce at the yacht and jet shows

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Rolls-Royce and Maserati stopped exhibiting so energetically at car shows, where a £300,000 car looks like a monstrous extravagance, and started exhibiting at yacht and aircraft shows instead. If you have spent the afternoon looking at Learjets, Gulfstreams and £8 million Sunseekers, a £300,000 car is basically an impulse buy. It is like putting the chocolate next to the till: 'I didn't buy a yacht today, so I'll have a couple of those.' Our perception of price is relative, so choosing the surroundings in which a price is seen decides whether it feels extravagant or modest. Rory adds that there is research on how long you have to be immersed in one price band before it affects your judgement in another.

“If you've been looking at Learjets all afternoon, a £300,000 car is an impulse buy.”

The point: Price perception depends on the surrounding frame, so choosing where something is sold can make the same price feel trivial.

Variants: The car's price is given as €250,000, £300,000 or $400,000, and Lamborghini is sometimes on the list. One telling pairs it with contactless payment making things feel about 15 per cent cheaper, as ways to make things seem cheaper without discounting.

Sources (7)

Amazon Prime, ten people paying once is not one person paying ten times

exampletold in 6

In maths 1 × 3 = 3 × 1; in psychology it does not. Ten people do not mind paying £3 for delivery once a month, but one person, however rich, really resents paying £3 for delivery ten times a month. To a spreadsheet the two are identical. Jeff Bezos saw the difference and forced Amazon Prime through against heavy opposition from finance: pay once, up front. Without some such mechanism you can have lots of customers but not frequent ones. Paying once also builds loyalty, because every later purchase feels like getting your money back. Few have copied it; when Selfridges introduced Selfridges Plus, online purchases per customer went from about one a year to five. Rory made the same case to airlines: a businessman paying 26 to check one bag is fine, a father of five paying 104 is not.

“One person, no matter how rich he is, really minds paying £3 for delivery ten times a month.”

The point: Frequent customers experience a per-use charge completely differently from occasional ones, so pricing built on averages loses them and a pay-once option wins them.

Variants: One telling frames it as a non-ergodic insight: solutions built for the average are blunt and crude. Another leaves the retailer unnamed and says purchases went from one a year to six.

Sources (6)

Low-cost airlines advertise what you don't get

exampletold in 6

Low-cost airlines made a lot of noise about what you would not get: no meal, a fee for checked luggage, no allocated seats, online booking only. Those things barely save money; the real savings are lower staff pensions and sweating the planes, flying until half past midnight. But the visible, symbolic economies made the low price believable. Had easyJet launched saying it was as good as British Airways at half the price, a suspicious customer would ask how: are they skipping engine servicing, are the pilots on day release from prison? Call yourself no-frills and cheapness becomes a choice, not a compromise. Sometimes the job of marketing is not to justify a higher price but to destigmatise a low one.

“Sometimes the role of marketing isn't to justify a higher price, it's to destigmatise a low one.”

The point: A low price needs a visible, credible explanation or people infer a hidden flaw, so advertise the sacrifice.

Variants: One telling is about Ryanair deliberately setting low expectations and then delivering something actually okay, with Michael O'Leary's 'no frills, no care' persona, and notes wealthy travellers put up with it to reach places like Bergerac. Another opens with a better product priced lower that nobody buys.

Sources (6)

£450, no; three payments of £150, yes

storytold in 6

An economist looks at Klarna and sees a three-month interest-free loan. But three payments of £150 feel like a completely different price from one payment of £450. Rory knows because, after years studying exactly these biases, he was buying a Dyson air purifier. At checkout it said £450 and he thought: I'm not paying that, that's crazy. Then it offered three payments of £150, and he thought: oh yes, perfectly reasonable, and bought it. It still worked on him. To economists price is a number; to consumers, and to stock-market investors, who are people too, price is a feeling. You can change perceptions of value for money not by changing what you charge but how you charge, and when businesses misprice, they nearly always price too low.

“To economists, price is a number. To consumers, price is a feeling.”

The point: How a price is structured and paid changes how it feels, so offering different ways to pay can widen a market without cutting the price.

Variants: He puts his years of study at 15 or 25. One telling frames it generically as three payments of £100 against £300. A standalone version uses the 'price is a feeling' line to close a talk, adding that price is the most neglected of the four Ps and that underpricing is far harder to fix than overpricing.

Sources (6)

50% extra free, with the price up 50% by mistake

storytold in 5

Rory always wanted to run an illegal, unethical experiment: put '50% extra free' on a pack, make it bigger, and also raise the price by 50 per cent. That would separate the arithmetic of a deal from the mere feeling of 'look, a deal', the bright red flash. He admits he never checks that M&S three-for-£8 items actually cost more than £8; he just buys three to avoid missing out. Then a marketer at a big multinational told him they already knew the answer. Running thousands of promotions a year, a few times they do exactly that by mistake, when someone forgets to rekey a price. He would not share the data. The clue: 'You wouldn't believe how much money we make.'

“You wouldn't believe how much money we make.”

The point: Much of a promotion's power comes from the feeling of a deal and its salience, not from the actual saving.

Variants: In one telling the result is stated outright: sales rise by almost as much as if the price had stayed the same.

Sources (5)

Nespresso's Vertuo and Vertuo Plus at the same price

storytold in 5

To an economist, a better product at the same or a lower price is the easiest decision in the world. Real people apply social intelligence: if it really were better, the maker would charge more, so what is wrong with it? When Nespresso launched its Vertuo machine, opened by hand, and the Vertuo Plus, which opens automatically, at the same price, Rory rang and emailed them in a panic. Nobody can buy a machine called the Plus unless it costs a bit more. In the shop, staff told him everyone asked why the two cost the same and, getting no answer, bought neither. Add a fiver to the Plus or take one off the basic, and people can decide whether the lid is worth it. If you cannot make sense of a choice, you cannot make the choice.

“If you can't make sense of a choice, you can't make the choice.”

The point: Relative prices must tell a coherent story; when people cannot build a narrative for the price differences, they lose confidence and buy nothing.

Sources (5)

Buy what other people hate, the house next to the pub

principletold in 4

Someone once told Rory they bought their house because of him. His advice: when house-hunting, don't optimise, because everyone wants that house and it is expensive. Invert, as Buffett and Munger advise: ask what other people hate that you don't mind. Next to a pub, not a rough one: most people hate the idea, but the noise of a happy pub is music to Rory. A railway line is less disturbing than a road, because trains stop at midnight. Everyone leaving London dreams of a detached house, so flats outside London are underpriced. He nearly bought a seafront house in Deal at about half its proper price because it adjoined a huge beer garden, planning to tell the landlord he would never complain, on two conditions: deliver beer on request, and no techno.

“On two conditions: you deliver beer on request and no techno.”

The point: Value lies where your preferences diverge from the crowd's, because the market prices in dislikes you do not share.

Variants: Other negatives he lists: a football ground, as in Fever Pitch, the Heathrow flight path for a plane spotter, or an unpopular school catchment for someone without children, which Rightmove gives no way to search for. The Deal house sold before he got round to it.

Sources (4)

Charitable yield management, parking spaces for the generous

exampletold in 4

Station car parks are useless after 9.30 because you can't be sure of a space, so people with job interviews miss their trains. A pure economist would price a few spaces at triple the rate for emergencies, but the operator would look like a price gouger. Rory's fix: keep ten spaces at the normal price plus £20 or £25 to charity. That uncovers who really needs the space, helps a good cause and spares the operator looking greedy. Just as there are disabled spaces, there should be spaces for the generous. The same works for queues: letting people pay to jump a passport or toll-bridge queue feels repugnant, as if the delays were created to make money, but send the premium to charity and people accept it, even warmly. Economists think money is money; where it goes matters enormously.

“Just as you have disabled spaces, you should have five or ten spaces for the generous.”

The point: Routing a scarcity premium to charity lets you allocate scarce capacity by willingness to pay without looking exploitative.

Variants: Rory applies it to station and street parking, the Athens airport passport queue, toll crossings, airport security, premium motorway lanes, and the last 200 seats at a concert sold at the standard price plus an extra 30 as a charitable donation. One telling asks whether people would complain about hospital parking if the sign said 80 per cent went to the hospital.

Sources (4)

Dishoom's dice, roll a six, eat free

storytold in 4

Dishoom was oversubscribed except before 6pm, Monday to Thursday. Rory's team at Ogilvy gave its loyal regulars a dice key ring: pay your bill in those hours, roll the die, and on a six the whole meal is free. To an economist that is a 16.6 per cent discount; to the human brain it is nothing like the same. It creates huge excitement, and people order more, because skimping and then winning would feel daft. Two years later Rory was on a call with bankers from William Blair who said that on every London trip they go to Dishoom before six, taking a colleague with a 'hot hand' for sixes. Many of them could have bought the restaurant; none would cross the street for 16.6 per cent off.

“To an economist that's identical to a 16.6 per cent discount; trust me, to the human brain it is not identical.”

The point: A chance-based reward is a completely different psychological experience from its expected-value discount, and can create cult loyalty at the same cost.

Variants: The bankers are from William Blair in one telling and Chicago private equity people in another. One telling generalises: getting your Tesco shop free one time in ten is far more exciting than 10 per cent off.

Sources (4)

KFC put the price up and sold more

storytold in 4

At a KFC conference Rory heard that a product was not selling and the plan was to cut its price, which is what any economist would do. Having just read Nassim Taleb, he suggested putting the price up first: it probably would not work, but if it did, that would be a far more valuable discovery than learning you can sell more by cutting the price. They called it ridiculous, tried it, and at the higher price demand went up. He admits it may have been a fluke, but offers a hunch: you go to KFC either for a bargain or for a treat, and something priced in the middle is neither, with no endorphin rush. Price helps people navigate a menu. An economist would never look there, because dogma says it is impossible.

“Something that's priced in the middle of those two things isn't a bargain and it isn't a treat.”

The point: Price tells people which category a product belongs to, so a middling price can fail both bargain-seekers and treat-seekers, and the opposite of the obvious move deserves a test.

Variants: One telling places it at KFC Australia, another outside Australia. One adds the Volvo XC90, which suffers in choice architecture because it is neither an SUV nor an estate car.

Sources (4)

The pool-access room

storytold in 4

Booking the InterContinental in Houston, Rory noticed rooms were no longer graded only by size, standard to suite. There were new categories: pool access and gym access. They were ordinary rooms that happened to be near the pool or the gym, which would otherwise have gone at random to someone who did not care. He happily paid $20 or $30 a night more, because he hates wandering long corridors in a towelling robe. Nobody built a wall, a lift or a minibar; they simply described the room in a different context. He reckons the idea is worth hundreds of millions of dollars a year to the hotel industry, and that whoever thought of it got no credit. It is alchemy: value created not by what something is but by how you describe it.

“It is literally a perfect case of alchemy where you're constructing value not by what something is but how you describe it.”

The point: Naming an existing attribute that some customers care about lets them pay for it, creating revenue at zero cost.

Variants: His estimate of the idea's worth to the industry ranges from $100 million a year to a billion dollars.

Sources (4)

Wine tastes better when you are told it is expensive

exampletold in 4

Perception is wonky and leaky. Rory cites research by the American Association of Wine Economists: except among perhaps the 5 or 10 per cent most knowledgeable drinkers, there is no correlation between a wine's quality and how much people enjoy it, unless you tell them how expensive it is, in which case they enjoy the dearer one more. Wine also tastes better poured from a heavier bottle, and chocolate tastes sweeter if the pieces are rounder. Buy a six-euro bottle, charge thirty for it, and because it is expensive everyone will say it tastes of blackcurrants. The idea that an object has intrinsic, objective goodness, with marketing merely sprinkling magic dust on top, is not true. His advice: drink your wine blind in future.

“Wine tastes better if you tell people it's expensive. Wine tastes better if you pour it from a heavier bottle.”

The point: Price and presentation change the experienced quality of a product, not just the expectation of it.

Sources (4)

You can't sell a house for £850,000

exampletold in 4

Estate agents say you cannot list a UK house at around £825,000 or £850,000: make it £810,000 or £890,000. Property websites search in £50,000 bands at that level, so buyers search either up from £800,000 or down from £900,000, and a house in between is far from both search points and may never be seen. When it is seen, people searching down think it suspiciously cheap and those searching up think it a bit too expensive. So instead of a price-demand curve you get a price-demand ziggurat. Rory calls the choice architecture of property websites a disaster: a filtering process that seems completely rational is deeply flawed. He would have property sites throw up random wild cards, mimicking 1978, when you found houses by driving around.

“You've ended up not with a price-demand curve but with a price-demand ziggurat.”

The point: Search filters create artificial price thresholds, hiding options that fall between bands and distorting how their price is read.

Variants: The unsellable price is £825,000 or £850,000, depending on where the telling puts the search bands. One telling links it to a ratchet that drives prices up until they soak up most discretionary income.

Sources (4)

A secret Harrods sale would sell almost nothing extra

exampletold in 3

Why do we buy more in a sale? Economists say prices go down, so demand goes up. True, but far from the whole story. Rory reckons more than half the extra sales come from the razzmatazz: crowds queuing outside as social proof, fear of missing out, and scarcity, since the sale lasts two weeks and then prices rise again. His hunch is that if Harrods cut its prices by a third for two weeks and told nobody, with no crowds and no marketing, it would barely notice any increase in sales. Conversely, stage a sale with stickers and paid actors queuing outside and demand might rise without any price cut. A jacket at £600 is very different from one marked '£600, was £900'.

“Sales are actually really a social phenomenon more than they are an economic phenomenon.”

The point: A discount's power comes largely from its theatre, scarcity and social proof rather than the arithmetic, so the obvious economic explanation may be the least important one.

Variants: One telling calls it a lollapalooza effect, several behavioural forces acting at once, and notes that we default to the first plausible rational explanation, as a defence lawyer would.

Sources (3)

British sparkling wine was rescued by a price rise

exampletold in 3

Some things need to be expensive because they are costly signals, like the peacock's tail. Champagne's real job is to show hospitality, generosity, thanks or celebration, and it cannot do that cheaply: however good the drink, if people think you bought it for £8.99 it does not say happy anniversary, or 'you've brought out the good stuff because it's my birthday'. The man who effectively rescued British sparkling wine improved quality by 10 or 20 per cent, then raised the price by about 150 per cent, to champagne levels of £25 and above. Whole vineyards have been rescued by tripling the price. You cannot research this, because nobody ever says 'I wouldn't buy this at £5.50, but I would at £9.95', yet experiments show exactly that.

“It doesn't matter how good the drink is if people think you've bought it for 8.99.”

The point: Where a product's job is to signal generosity, a low price destroys its value however good it is, and a higher price can raise demand.

Variants: One telling credits Chapel Down, perhaps, and wonders whether a champagne house selling at £7.99 would find the other houses hiring a hitman. Others call these Veblen goods and compare the potlatch.

Sources (3)

Cutting the price is bribing the customer

principletold in 3

If you believe economics, the first thing you do when a product undersells is drop the price. Rory would make it the last. It is the single most expensive intervention, bribing customers with real money rather than reframing value, and it suggests you have so little imagination that bribery is all you have left. It is a double loser: it sets a low expectation for the future and carries the whiff of desperation. It is also hard to reverse: once your hotel room has been $80 a night you will never get it back to $200, which is why hotels don't go super cheap in a recession. Try an ad campaign, free fries, value-adds, points plus money, even putting the price up. Value on generally beats money off.

“Dropping the price is a double loser. It sets a low bar of expectation for the future and it also basically contains the whiff of desperation.”

The point: Try cheap psychological and value-adding interventions before a costly, irreversible price cut.

Variants: One telling adds that people never really ask whether something is expensive, only 'compared to what?'

Sources (3)

Legal cover for 20p per vehicle per day

exampletold in 3

Backhouse Jones provides legal, and increasingly HR, services to bus, coach and haulage operators. Instead of pricing like most lawyers, free until you are in trouble and then a fortune, it charges a flat 20p, perhaps now 25p or 30p, per vehicle per day, and then handles any legal dispute for free. Notice it is not expressed annually: to someone who has just bought a £250,000 lorry or a new bus, 20p a day is a rounding error. Better still, at transport conferences Mr Jones leaves coins under every chair and tells the audience he has paid for their first day's legal cover. Whether something seems expensive is only partly a function of what it costs, so business-to-business marketing can add value by inventing new ways to charge.

“Whether something seems expensive or cheap is only partially a function of how much it costs.”

The point: Expressing a price in tiny units against a large asset makes it feel trivial, and consumer pricing tricks translate to business-to-business.

Variants: One telling contrasts it with procurement, which adds up everything spent with a supplier and asks for 10 per cent off, a framing that invites cost-cutting.

Sources (3)

Paying Ferrari to collect your own car

exampletold in 3

Buy a new Ferrari and they will deliver it free to your local dealer. Or, apparently, you can pay about £500 for a tour of the factory at Maranello, travel there at your own expense, and drive the car home. By framing it as a factory tour, Ferrari has got you to pay to collect your own bloody car, a job it would otherwise do on a truck at its own expense. Rory compares it to Tom Sawyer persuading his friends that painting the fence is a privilege. Things are not even good or bad independent of how they are perceived.

“By framing it as a tour of the factory they've got you to pay to collect your own car.”

The point: Reframing a chore or a cost as an experience can turn it into something customers pay for.

Sources (3)

Second room half price

exampletold in 3

Hotel and airline offers always cut the price of the individual room or seat. But a childless dual-income couple has two salaries paying for one room, while a family often has one salary paying for two or three. So a stay can cost a family about four times as much relative to income, and Premier Inn or Travelodge is to them what a five-star hotel is to the couple. Why not 'second room half price', or on airlines 'kids go half price', aimed at the most price-sensitive, instead of cutting every rate? Families are not business travellers, so there is little cannibalisation. Fast food learned this with KFC's bargain bucket and the Happy Meal, and Holiday Inn was founded on second room half price, yet hotels have since forgotten it.

“If you're going to discount, it makes more sense to discount to people who are cash constrained.”

The point: Discounts work best when targeted at the genuinely cash-constrained, so price by who is paying, not just by the unit.

Variants: One telling suggests refunding the second room if the hotel was not full: a £150 credit that brings the family back. Rory recalls Pizza Express for four costing £68 against under £20 at McDonald's.

Sources (3)

Selling Sky to his father at 60p a day

storytold in 3

Rory's father, born in 1930, loved factual television, documentaries about the Serengeti and Nazi megastructures, but refused multi-channel TV at £17 a month as too expensive, even when Rory offered to pay. So Rory tried a Don Draper move: it isn't £17 a month, it's 60p a day. You already spend £2 a day on newspapers, so another 60p for 150 extra channels, Smithsonian, History, National Geographic, is hardly crazy. Within a second his father saw it differently. A week later he bought Sky with his own money, and he now tours the retirees of the Wye Valley recommending documentaries. Nothing about the price changed; Rory just told a different story about it.

“I didn't change anything about the price. All I did is tell a different story about it.”

The point: Re-expressing a price in a unit that invites a favourable comparison with a familiar spend can flip a decision without changing the cost.

Variants: The channel count is 150 or 200. One telling draws the bigger moral: the premise that a pound is worth a pound 'doesn't even stand up to my dad'.

Sources (3)

The cheapest way to buy art is to buy architecture

principletold in 3

We buy property by location, price, bedrooms and garden, obsessing over what is quantifiable, then pick the nicest-looking of the final five. If we bought art that way, filtering for landscape format, five feet by three, mostly blue, three cows and a tree, Picassos would be cheap, because artistry sits too low in the choice architecture. Rory did it backwards, looking for great architecture first, and lives at the top of a Grade I listed Robert Adam house. An economist neighbour reckoned they pay nought to 2 per cent more than for an indifferent building nearby. You do not pay 2 per cent more for a Picasso than for a daub on the Bayswater Road. So the cheapest way to buy art is to buy architecture.

“The cheapest way to buy art is to buy architecture.”

The point: Qualities a market's filters ignore go unpriced, so whatever sits low in the choice architecture is a bargain for anyone who values it.

Variants: One telling adds a second bargain: nobody moves out of the city to live in a flat, so a great apartment outside the city is ridiculously cheap. Rory wants a Parker score for architecture, or a Rightmove checkbox.

Sources (3)

They come for the food; you make money on the wine

analogytold in 3

Restaurateurs know something most businesses don't: where you make money and what people are paying for are often two separate things. You attract people with the food and make your money on the wine, and you cannot put atmosphere on the bill, though people pay for it as much as for the food. Rory says the worst thing that happened to marketing services was billing by the hour, because decision-makers then assumed the value lay where the money was made. Agencies used to get clients in on creativity and make money on execution. An unwary accountant taking over a restaurant chain would see a profitable bar and food barely breaking even, and cut the food. In advertising, the creative magic that made clients choose Saatchi over Ogilvy has been starved of investment.

“An advertising agency is actually like a restaurant: you make money on the wine, but they come for the food.”

The point: Where a business earns its margin is not necessarily where it creates value, and cutting the low-margin draw destroys the high-margin business.

Sources (3)

Why every car on the autoroute is English

exampletold in 3

Drive south from Calais in summer and for the first 50 or 70 miles almost every car on the toll motorway is English; it is nicknamed the autoroute des Anglais. The English make the trip once or twice a year, so 25 to 35 euros in tolls is just part of the holiday, and cheaper than hiring a car after flying. A French local driving 20 miles a day pays five euros a day, perhaps a thousand euros a year, a completely different equation, so they stay off it. A hundred people making a journey once are far less price sensitive than one person making it a hundred times, which is why season tickets exist. Parking in Henley works the same way: Rory parks there once a year and doesn't care, while a resident feels every rise.

“I think this form of pricing, where you do it a lot and pay less, is actually welfare enhancing and also revenue enhancing.”

The point: Flat per-use pricing drives away the frequent users who would pay more in total under a pass, so frequent customers need a different way to pay.

Variants: One telling ties it to Amazon Prime and wonders why pubs don't try a £10 monthly membership.

Sources (3)

You can't sell premium economy without showing the economy price

storytold in 3

British Airways' website used to ask for destination, dates, time and class of travel up front. That suits a business traveller whose boss and travel policy have already decided. For a consumer it is insane: how can I choose a class until I know the price difference? If business is £30 more I'll probably take it; if it is £300, maybe not. Rory's team found willingness to upgrade was not a fixed sum, as an economist would assume, but relative: 20 per cent more and people pay, double and they won't. Everyone defaulted to economy and never saw when premium economy or business was a great deal. Simply showing the economy price alongside earned the airline millions a year in high-margin cabins.

“You can't sell someone a premium economy ticket unless they know what the economy ticket would have cost.”

The point: Upgrades are judged relative to the base option, so interfaces must show the comparison rather than demand fixed choices up front.

Variants: The gain is 'multiple millions' or an extra £10 million a year, and one telling leaves the airline unnamed. Another adds Eric Johnson's point that filters hide what we miss: someone five foot seven filtering Tinder for partners five inches taller eliminates George Clooney.

Sources (3)

50% extra free beats 33% off

exampletold in 2

A fascinating little fact, Rory says: if you sell shampoo, consumers value '50% extra free' on a big bottle much more than 33 per cent off the price of the same bottle, though notionally they are the same deal. He does not know why; they just do. Think about it in detail and the extra-free offer is also much less margin-eroding. So you create more perceived value and lose less margin: who would not want to do that? Similarly, a bonus and a bribe are economically indistinguishable, 'I'll give you this if you buy that' versus 'to thank you for buying that, here's this', yet humans perceive them completely differently.

“You can actually create more perceived value, lose less margin. Who wouldn't want to do that?”

The point: Mathematically equivalent offers produce different behaviour depending on their framing, and the better-perceived frame can also be the cheaper one.

Sources (2)

A mate at the BMW dealership

exampletold in 2

Rory's team once suggested to Sainsbury's that some discounts be available only to loyalty-card holders, not just to drive sign-ups but because a discount not everyone can have feels more valuable. If BMW announced 10 or 20 per cent off all its cars, you would shrug. But if a mate at a BMW dealership could get you the same discount, you would find it wildly exciting and beat a path to his door. Behavioural science calls it idiosyncratic fit: '20 per cent off for over-30s' feels more valuable to over-30s than a discount for everyone. And the worst mistake is assuming a discount needs no marketing: you have to market the lower price.

“If you've got a mate at a BMW dealership who can get you a BMW at 10% off, you find that wildly exciting.”

The point: Exclusive or relative advantages feel more valuable than identical universal ones, so the framing of a discount matters as much as its size.

Variants: The Sainsbury's suggestion is dated to the 1990s or to 'some 20 years ago'.

Sources (2)

An electric Skoda is closer to a petrol Audi

exampletold in 2

People say electric cars are expensive, and Rory asks: compared with what? An electric Skoda costs more than a petrol Skoda. But in performance, quietness and comfort it is closer to a petrol Audi than to a petrol Skoda, perhaps even to a petrol Bentley minus the leather, and it is often far cheaper to run. In a petrol car, being both a limo and a go-kart takes you into Aston Martin or Bentley territory and a massive, heavy engine; nearly all electric cars can be driven either way. So is it expensive? Maybe not. We are comparing the wrong things.

“The electric Skoda is closer to a petrol Audi than it is to a petrol Skoda.”

The point: Whether something seems expensive depends on the comparison chosen, so reframing the reference class can turn 'expensive' into 'bargain'.

Sources (2)

Cost per entertainment hour

principletold in 2

A revealing measure nobody uses consciously is cost per entertainment hour. It explains why skint 18-year-olds spend £85 or $100 on a computer game: they might play it for 100 or 200 hours, far cheaper than the cinema, especially with popcorn. Rory used to be horrified when better-off Britons got sniffy about poor families owning big televisions. If you haven't much money, television is spectacularly cheap long-term entertainment. You won't be going Porsche racing at the weekend or popping to Glyndebourne, so a really large television is a perfectly rational decision.

“Having a really large television is a perfectly rational decision.”

The point: Judged per hour of enjoyment rather than by sticker price, apparently extravagant spending is often the cheapest source of pleasure.

Sources (2)

Discounting theatre tickets reduced demand

storytold in 2

A friend of Rory's ran email marketing for a large London theatre chain and found that advertising a discount reduced demand. A night out already costs £140 to £200 with babysitting, dinner, parking and taxis, so the last thing you want is to spend that on a bad play, and a discount signals the play is not very good. When managers asked her to email 25 per cent off for unsold matinee seats, she offered to promote them without the discount. They insisted on it anyway, knowing it would sell fewer tickets at a lower price. Why? Because the boss can never shout at you for doing what economic theory says.

“If you do something that's consistent with the economic theory you never get into trouble.”

The point: A discount can signal poor quality, yet organisations often prefer a failure that obeys theory to a success that defies it.

Sources (2)

How else can a month's salary last a lifetime?

exampletold in 2

Rory calls the De Beers line 'How else can a month's salary last a lifetime?' possibly the greatest advertising line of all time. It is sheer genius because it sets an absolute anchor: it tells buyers what an engagement ring ought to cost, relative to their income. As a bloke, he says, it would never have occurred to him to spend a month's salary on a ring without that line. Maybe a fortnight. The line established its anchor long before behavioural economists wrote about anchoring, proof that advertising practitioners knew this stuff instinctively.

“How else can a month's salary last a lifetime?”

The point: A single line of copy can set the reference price people feel obliged to spend.

Sources (2)

I'm not that interested in central banking reform in Ecuador

exampletold in 2

Rory could never bring himself to subscribe to the Financial Times at £35 to £69 a month, though there are many articles he would gladly pay a pound or two to read. Working in advertising rather than finance, he gets huge value from about 10 per cent of the paper and little from the rest. He feels most of his money would fund articles on central banking reform in Ecuador that interest him not at all, and even if the articles he would read are worth £20 a month, he will not pay for the bundle. Most people don't want to subscribe to most content. Let them keep a £20 balance, say on X, and pay 50 cents an article, and quality journalism could be monetised.

“I'm not that interested in the prospects for central banking reform in Ecuador.”

The point: Bundles lose buyers who resent paying for parts they don't want, so per-item payment can unlock demand that subscriptions never reach.

Variants: One telling adds that he would forgive Elon Musk everything if X had such a content payment system.

Sources (2)

If we bought cars the way we buy houses, we'd all drive Bugattis

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For most purchases we spend in proportion to how much we care: someone indifferent to cars buys a modest one. Property is the exception. Most house-hunters work out their deposit plus how much they can borrow and start looking at that price, because property is the one big tax-free, leveraged bet in life and the one shot at a lottery-style win. If we bought cars that way, scraping together a huge deposit and starving for 15 years, we would all drive Bugatti Veyrons. So when interest rates fall nobody gets richer: buyers just raise their target price, sellers raise theirs, and you get an absurd spiral.

“We'd all be driving a Bugatti Veyron if we bought cars the way we buy houses.”

The point: The heuristic people use to set a price, borrowing the maximum, rather than the market's fundamentals, drives the property spiral.

Variants: One telling adds that browsing business leases for a Rolls-Royce Spectre, he found extras priced monthly, so a fancy umbrella trim felt like a Netflix subscription.

Sources (2)

Just tell people it's the least crowded flight

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The whole airline pricing model assumes that to move someone from the noon flight to the 3pm one you must drop the price. Rory put a simpler idea to the airlines: have you tried just telling people it is the emptier flight? Label it 'the least crowded flight of the day' and perhaps 20 per cent would switch anyway. In many ways the best airline is the one that isn't crowded, and a 70 per cent full flight is nicer than a full one, especially if your screen is broken. Yield management uses price as if there were no other motivation, which is an expensive way to change behaviour. There are lots of ways to change what people do before you resort to bribing them.

“Have you tried just telling people this is the emptier flight? They'll go on it anyway.”

The point: Information and non-price motivators can redistribute demand as well as a discount, at no cost.

Variants: One telling adds that loyalty tier points could do the same job, since many members would crawl over broken glass for five extra tier points.

Sources (2)

Keynes gave it all to the theatre

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As bursar of King's College, Cambridge, John Maynard Keynes had about a million pounds to allocate between the world-famous King's College Chapel and the Cambridge Arts Theatre. Asked for a ratio, he gave 100 per cent to the theatre and nothing to the chapel. Raising money for the chapel was easy: Americans would fund it. Nobody outside Cambridge cares about the theatre, and no American millionaire will send it $50,000. Rory loves it as a clever form of hypothecation, and uses it to argue that the share of a donation going straight to the cause is a bad metric for charities.

“Give it to the things that can't raise money, at the expense of things that can.”

The point: Put your own money where nobody else will, and let the easy-to-fund cause attract outside donors.

Variants: One telling frames it within Dan Ariely's view that people would pay tax more happily if it were hypothecated, an idea the Treasury hates.

Sources (2)

Learn the Latin plant names and get the house £200,000 cheaper

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Economists treat buying a house as purely transactional, but it is full of emotion that should be irrelevant, which is why estate agents keep buyers and sellers apart. Someone who has spent years on a house cares what the buyer will do to it. Rory's parents-in-law are fanatical gardeners. Anyone wanting their house should mug up on gardening for six months, quote Gertrude Jekyll and Sissinghurst, and name the plants by their Latin names, and they would get it £200,000 cheaper. Say 'brilliant, we can knock down that tree and put in a helipad', or a go-karting track, and they would not sell to you at any price, because the garden is part of their life's legacy.

“Name the plants with their Latin names, you'll get it at 200,000 off.”

The point: Sellers care who inherits what they built, so shared values can be worth more than money in a transaction.

Sources (2)

Louis XIV would ask why you live in such a crap house

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A corporate lawyer or banker pays well over a million pounds for a terraced house in Fulham, and for 20 years spends half their discretionary income owning something a postman, a poor person, owned in 1917. That is not progress; nobody aspires to a car from 1917. If Louis XIV visited, he would marvel at the flat-screen television, the broadband, the dental care and the painkillers, then ask why someone of unimaginable wealth lives in such a crap house. Land and permission are perhaps 90 per cent of the value. It is like owning a 1970s Ford Cortina and paying £60,000 a year for its parking space. Buy a jet ski, Rory says: something that would make Louis XIV say 'I want one of those'.

“The sum total of your ambition is to own something that a poor person owned in 1917.”

The point: Housing absorbs wealth for no gain in quality, diverting spending from things that genuinely improve into land rights.

Variants: The price is £950,000 for half a house or £1.4 to £1.6 million for a three-bed. One telling contrasts a friend's genuinely amazing Barbican flat.

Sources (2)

Most things are priced for people poorer than you

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The benefits of wealth are not linear. A first house deposit, or £5,000 you can call on in a crisis, changes what people can do; Rory was glad he never visited America broke, a terrible country not to have $10,000 to hand. But once you earn a bit above the median, life gets pleasant, because most things are priced for people poorer than you. A Bang & Olufsen television is priced for him; a Samsung 55-inch 4K set is priced for people poorer than him, and would sell at £5,000 if aimed only at the rich, so his consumer surplus is huge. Above a certain level, imagination about how to spend money converts it into happiness better than earning more.

“Most things are priced for people poorer than you.”

The point: Mass-market goods are priced for the median buyer, so extra income above that point buys little, while small sums at the thresholds below it change lives.

Variants: One telling puts the threshold at the top decile of wealth, another at a bit above median income.

Sources (2)

Odeon's super-premium daybeds

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Odeon had standard and premium seats. To sell more premium seats, Rory's team suggested adding super-premium seats, so that premium becomes the middle option, which the Goldilocks effect makes disproportionately popular: perception is relative. The only place for super-premium turned out to be big cabana-style daybeds right at the front, previously dead real estate, so they were pure profit. Premium bookings rose and a new revenue stream appeared. Later, changing the context in which food pre-booking was offered multiplied take-up 27-fold, from a low base. Polly Jones, Odeon's marketing director, took the ideas to her board; after three or four such wins, the whole board wanted to talk to her.

The point: Adding a top tier lifts the middle tier, and unused space can become the most premium product.

Sources (2)

P&G launched a nappy brand to make Pampers look cheap

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Before Pampers, disposable nappies were seen as really expensive. Procter & Gamble launched and advertised a premium range of disposable nappies at a very high price, with no intention of building that brand; it always meant to kill it. The range existed so that when Pampers arrived at about half the price, it looked good value by comparison. Rory calls it genius, a total framing game, and notes that people given three options default to the middle one. Suggest cutting a price and nobody asks for a test; suggest raising one, or launching a dearer decoy, and you meet resistance.

“It was there so that when Pampers arrived they looked good value by comparison. It was a total framing game.”

The point: Price is judged against a reference set you can design, so a deliberately expensive anchor makes the real product look affordable.

Sources (2)

Paul Dolan's Rolex is a bargain

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Rory, a gross rationalist who wears a £130 Casio G-Shock cheap enough to wear in the shower, was surprised that the LSE happiness expert Paul Dolan, who has worked with Kahneman, wore a Rolex. Dolan said it was a bargain. It is not jewel-encrusted; it gives him a small pleasure every time he looks at it, ten times a day for twenty years, and then he will give it to his son. Hence Patek Philippe's line that you never actually own one, you merely look after it for the next generation. Measured in cost per entertainment hour, and as a repository of meaning, apparent extravagance can be excellent value. Watches and bags can justify high prices partly because, unlike clothes, they can be worn every day.

“It gives me a small amount of pleasure every time I look at it, ten times a day for the next 20 years.”

The point: Judged by how often and how long something gives pleasure, and as an heirloom, durable luxury can be cheaper than it looks.

Variants: One telling places it among three kinds of luxury, alongside bling and early-stage extravagance.

Sources (2)

Pick-your-own strawberries are not cheap strawberries

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People like trade-offs. Offer simply cheap strawberries and people get suspicious: if they were good, why not charge full price? Pick-your-own strawberries are cheap too, but with a story attached: you are saving money because you did the harvesting. Making the source of the saving visible stops people reading the low price as a sign of poor quality. Rory links it to the IKEA effect: Ingvar Kamprad believed that assembling furniture yourself adds to its perceived value because you invest something of yourself, and the effort destigmatises the low price. If IKEA sold ready-assembled furniture in a posh emporium, we would suspect something iffy.

“Pick your own strawberries is not the same as cheap strawberries.”

The point: A low price needs a visible reason, and asking the customer for effort can supply one while adding perceived value.

Sources (2)

Save the last pumpkin for your best customer

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During lockdown Richard Thaler convened a Zoom call, with Daniel Kahneman and other Nobel laureates on it, to answer a former student who ran a farmers' market stall: what should she do with the last pumpkin of the day that never sells? Two of the economists said cut the price. Kahneman said farmers' markets are street theatre; if anything, put it up. But scarcity does not help here, because the last one looks like the mangy one nobody wanted. Rory's answer: hide it in the van, and when one of your best regular customers comes along, bring it out and say, 'I've been saving this for you, have it as a present.' The relationship is worth more than a pumpkin. Kahneman, he says modestly, thought it the best answer.

“I've been saving this up specially for you.”

The point: In a relational setting, investing an unsellable item in the customer relationship returns more than discounting it.

Variants: The stallholder is in Austin in one telling and a Chicago economics graduate in another, and the item is a pumpkin or a cauliflower.

Sources (2)

Sell tiny sizes at huge prices where the Airbnbs are

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One of Rory's favourite pricing ideas, which he has put to P&G and Unilever: wherever there are lots of Airbnbs and tourists, sell very small quantities at insanely high prices. Staying in an Airbnb, you go round the local Pingo Doce or Monoprix hunting for the smallest of everything, dishwasher tablets, shampoo, loo roll, because otherwise you will have to leave it behind. You would happily pay twice as much for four loo rolls as for nine, and you could probably sell seven dishwasher tablets for a fortune. It is commercial innovation in Roger Martin's sense: changing how a product is sold, packed or priced rather than the product itself. When he told a room of Reckitt people, they said they already do sizes for this.

“I want the smallest of everything because otherwise I'll have to leave it behind.”

The point: Context changes what customers value: for tourists a small quantity is itself the benefit, and it can carry a premium.

Sources (2)

Spend nothing on bedding, or a lot

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There is a thrill in a bargain at Aldi or TK Maxx and a thrill in extravagance at Mulberry or Fortnum and Mason, but the middle of the market gives no endorphin rush. Rory learned this shopping for bedding with his wife. He told her there were two amounts he was happy to spend: nothing or a lot. Spend nothing and he would not notice the difference, and could buy a drone instead. Spend £500 and he could get nerdily excited about thread counts, tog values, Egyptian cotton and Oxford pillowcases with their inexplicably superior three-inch border. Spend £200 and you just get the same bedding again.

“There are two amounts of money I'm happy to spend in here: nothing and a lot.”

The point: Value perception is non-linear, so the middle of a market can be the least satisfying place to buy or to sell.

Sources (2)

Thaler's beer on the beach

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Rory calls transaction utility Richard Thaler's most interesting idea, and thinks everyone in advertising should know this experiment. You lie parched on a hot beach while a friend offers to fetch a bottle of ice-cold Heineken, if the price is below your maximum. In one version it comes from a boutique hotel, in the other from a beach shack. You drink it on the beach either way, so the venue is irrelevant, yet people will pay about twice as much if it comes from the hotel. The utility of the beer is identical; what differs is how the transaction feels. We have an innate sense of fairness, and accept that the hotel has higher overheads.

“A bottle of chilled Heineken is a bottle of chilled Heineken.”

The point: Willingness to pay depends on whether the transaction feels fair, not only on the value of the thing bought.

Sources (2)

The London streets Rightmove can't see

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Someone who analyses property told Rory that some patches of London do not belong to any predefined area: they are neither Brixton nor Stockwell, neither Kensington nor Notting Hill. Because you cannot search for them on Rightmove, property in these little islands of undefined location is disproportionately cheap, about 10 per cent lower. Similarly, a house that is neither in Paddock Wood nor in Tunbridge Wells will be cheaper than either. A game-theoretic house-hunter would look for exactly those spots.

“You can find disproportionately cheap property because Rightmove is blind to its existence.”

The point: When a market's search tool defines what is visible, value pools in its blind spots.

Sources (2)

The partner who spent the Boots points on loo roll

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The long-time head of the Boots Advantage Card told Rory a common story. A woman saves up her points all year and sends her partner to Boots for household basics, loo roll and nappies or paracetamol and Strepsils, adding 'take my card for the points'. At the till he is told there are enough points to pay for everything. 'Result,' he thinks, and comes home to a livid partner. To an economist this is irrational: a point is worth a penny, less really, since you can only spend it at Boots, so fungible cash must be better. But points cannot pay the gas bill, so they license guilt-free extravagance, a bottle of Chanel No 19. Spending them on necessities wastes that.

“Points are often more valuable than money, actually.”

The point: Money is not fungible in the mind: earmarked rewards carry a licence to indulge that the equivalent cash lacks.

Variants: One telling adds that this matters most in a recession.

Sources (2)

The £800 tap sold over Zoom

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Rory bought a Quooker boiling-water tap and calls it a miracle, though his wife, who used to work in procurement, asked why spend £800 on a tap when a kettle costs £50. The company offered the family a demonstration at its Manchester showroom; when he declined, they gave a 20 to 30 minute sales pitch over Zoom instead. That is an expensive way to sell a tap, but he would not have bought one otherwise: that is how long such a sale takes, like a test drive for a car. Meanwhile advertisers increasingly define their audience as people willing to engage at high speed in cheap media, then wonder why the economy isn't growing. The effort put into persuasion is itself persuasive, so the drive to efficiency defeats itself.

“When it comes to selling some things, you've got to sell slow.”

The point: High-value purchases need slow, costly persuasion, and cutting it in the name of media efficiency loses the sale.

Sources (2)

Why Rory won't buy a rail season ticket

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A rail company told Rory that even commuting three days a week, a season ticket saves money. He replied that may be true in economics but not in psychology. Travelling two or three days, he might still save, but it annoys him that he gets proportionately worse value than five-day commuters paying the same, and that feeling stops him buying. We hate paying when others get more value. The season ticket only exists because 19th-century railways had paper tickets; a commuter was originally someone who commuted their fare into a multiple ticket. Now an app could charge less per journey the more you travel, and offer a free upgrade on your 100th trip.

“That may be true in economics, it isn't true in psychology.”

The point: Pricing that makes some customers feel they get worse value than others breeds resentment that blocks even good-value purchases.

Variants: One telling widens it to subscriptions: the same feeling stops him subscribing to publications he would pay £10 a month for as pay-as-you-go, and people have reached peak subscription.

Sources (2)

Wine has no price anchor, so you can mark it up

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Restaurants want you to drink wine because it has no price anchor. You cannot charge £25 for a Gordon's and tonic or £30 for a glass of Johnnie Walker Red, because everyone knows what they cost in the shops. But you can buy a bottle of 2005 château wine for six euros and charge thirty, and nobody can tell what it should cost. By normal consumer rules wine is an atrocious product: no pub could survive if one pint in three tasted foul, yet pub wine has barely better than even odds of being drinkable and people still pay £4.50 a glass. Part of the reason is that there is nothing to compare it with.

“You can't charge 25 quid for a Gordon's and tonic because we know what Gordon's costs.”

The point: Products without a familiar reference price can carry far bigger margins than those people can compare.

Sources (2)

£15 is not the same price as £15

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Regression models built on big data drop a price from £20 to £15 and record the new behaviour, as if people see an objective £15. They do not. £15 is not the same price as £15 'reduced from £29.99'. Pay by contactless and things feel about 15 per cent cheaper than paying by chip and PIN, while paying cash makes them feel more expensive. So Rory's advice to businesses is: don't drop your prices, just accept different modes of payment. The idea that an objective price maps straight onto behaviour, without some translating context, is false.

“Don't drop your prices, just accept different modes of payment.”

The point: Perceived price depends on framing and payment method, so it can be cut without touching the actual price.

Variants: One telling adds that with a cab, paper changing hands makes it feel like a service rather than a transaction.

Sources (2)

$6,000 to fill an empty seat tonight

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On a 24-hour Houston layover flying back to London, Rory asked whether there was space on that evening's flight. Loads, they said. Brilliant, how much? Six thousand dollars. He enjoyed Houston, with some of the best meals of his life, but the seats were patently going to fly empty. Why not meet him halfway: pay $300 and go now? Letting people take an earlier train or flight is good yield management. And a missed train ticket instantly falling to zero feels like an injustice and breeds anxiety.

“Why wouldn't you at least meet me halfway?”

The point: Rigid pricing leaves perishable capacity unsold and creates anxiety that flexible pricing would relieve.

Sources (1)

A necessary level of fuss for every level of spend

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In any capitalist exchange, Rory says, there is a necessary level of fuss, or as he puts it more bluntly, bullshit, for any level of expenditure. Buying a car online is perfectly rational but feels wrong: spending a five-figure sum, he wants someone to show him the glove compartment. Estate agents are posh because if you are spending six figures you want someone a bit posh to make a fuss of you, at a level commensurate with what you are spending.

“There's a necessary level of bullshit for any level of expenditure.”

The point: Big purchases need ceremony proportionate to their cost; stripping it out makes them feel wrong.

Sources (1)

A prisoner of my own direct debits

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The subscription model has run out of road: Rory won't subscribe to anything else, or he becomes a prisoner of his own direct debits, salary in, salary out. Publishers should get micropayments working, paying for content a page at a time, and only the cowardice of subscription-minded finance people stops it. Another option is the Nespresso model, where you pay in and it builds up as a credit balance you draw on. Rory uses it, and defends pods: at 7am he has no time for tamping.

“Otherwise I'd just become basically a prisoner of my own direct debits.”

The point: Subscription fatigue opens room for alternatives such as micropayments and prepaid credit.

Sources (1)

A season ticket on the Isle of Wight he never uses

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Rory holds an annual season ticket between two stations on the Isle of Wight, which he has never visited. The point is that any annual season ticket confers a Network Gold Card, an old Network SouthEast perk grandfathered in, giving big discounts on off-peak travel across the South East, and that one costs about 160 pounds. YouTube has whole episodes on these freakish tickets. He wishes Britain had Germany's BahnCard 25, 50 and 100, giving 25, 50 or 100 percent off any rail journey for a yearly fee.

“I've got one of those annual season tickets. I've never been to the Isle of Wight in my life.”

The point: Frequent users are the most price-sensitive, so up-front pass pricing suits them, and convoluted fares create odd hacks.

Sources (1)

A spirit with no booze in it

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Rory points to a product that defies logic: a non-alcoholic spirit that costs the same as a bottle of spirits but has no alcohol in it. Because there is no booze, there is no duty to pay, which makes its margin utterly insane.

“It costs the same as a bottle of spirits but it's got no booze in it.”

The point: Price follows the category frame, not the cost of ingredients, which can create huge margins.

Sources (1)

Add one adjective, charge 15% more

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Sometimes it's a single word. Rory says experiments show that describing them as succulent carrots or Pembrokeshire carrots, simply adding an adjective, lets you put the price up by about 15 per cent. Tiny butterfly effects on a menu can make you a fortune.

“You can add a single word to the menu, and you can charge more for things.”

The point: Descriptive language changes perceived value enough to support higher prices.

Sources (1)

After Eight, the pleasure of finding the full envelope

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No economist would get the logic of the Cadbury's Creme Egg's limited season. Rory recalls talking to Jeremy Bullmore about After Eight mints. Every finance person would have wanted them called 'All Day Mints', since 'After Eight' restricts their use. But the idea was you handed them round after dinner, found a lot of empty envelopes from which mints had already been taken, and eventually found one with a mint in it, a pleasant surprise. Restricting occasions prevents habituation.

The point: Constraint, scarcity and small surprises protect enjoyment from habituation in ways economic logic misses.

Sources (1)

An electric blanket that went to university

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Rory is intrigued by Eight Sleep, a mattress cover that monitors sleep, raises you if you snore and cools or warms you. He describes it as an electric blanket that went to university. At a few thousand pounds it looks wildly expensive, but he reasons it is cheaper than bedroom air conditioning and might pay for itself by letting you heat the bed rather than the room, as Germans sleep in cold rooms. Owners become evangelical, as air fryer owners were five years ago, and he says the same of his Quooker tap, made by a family-owned company.

“It's an electric blanket that went to university, basically.”

The point: Reframing a pricey product against the right alternative can make it look cheap, and evangelism marks a one-way door.

Sources (1)

Any idiot can sell things by dropping the price

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At every digital conference someone presents a sophisticated beacon that detects a past customer within a hundred yards of the shop, and the payoff is always that you can serve them a 20 per cent off offer. Rory does not need a PhD to sell things by dropping the price: go to a car boot sale for that. Any idiot can do it. The art of marketing is surely to charge more for the same thing by making it seem better.

“The art of marketing is surely to charge more for the same thing by making it seem better.”

The point: Discounting is the laziest lever; marketing should create perceived value instead.

Sources (1)

Apple is bullied into a cheap model, and it fails

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When Ben Francis describes shareholder pressure to expand product ranges for a bigger addressable market, Rory adds that every few years Apple is bullied into producing a lower-cost product, and every few years it fails. The logic of broadening the market looks sound on paper but undermines what makes the brand valuable.

“Every few years Apple is bullied into producing a lower cost product, and every few years it fails.”

The point: Chasing a larger market with cheaper variants can dilute the brand that created the demand.

Sources (1)

Ask for three pounds a month

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Working in charity fundraising around 1990, Rory asked why they accepted a 1 per cent response rate, and suggested asking lots of people for a small recurring amount rather than a few for 50 or 100. It was regarded as weird and nobody tested it. Asked for 50 euros, it is easy to say you don't care that much; asked for three pounds, you think 'what kind of person doesn't give three pounds?' Postage costs once made it uneconomic, but direct debits changed the maths, and the idea was eventually discovered almost by accident: average gifts fell, donors and lifetime value rose.

“What kind of person doesn't give three pounds to help somebody out?”

The point: A tiny ask removes the excuse to refuse, and recurring small gifts can beat large one-off donations.

Sources (1)

Booking the 7am flight to save £5

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Airline comparison sites let you choose only on price, so even rich people pick the cheapest flight. Rory booked a 7am flight because it was £5 per person cheaper than noon, then realised he could not get the children up at 4am, and stayed in a hotel the night before, wiping out five times the saving. Airlines do not even tell you a flight is on a brand-new 787 or the least crowded of the day. We would never book the cheapest hotel in Barcelona; we would end up somewhere rat-infested.

“When all you can choose on is price, you choose the lowest price.”

The point: When information is stripped down to price alone, competition collapses to discounting; other information changes behaviour more cheaply.

Sources (1)

Bragging about expensive wine

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Rory is amused by economists bragging about expensive bottles. A 30-pound wine is probably appreciably better than a 15 or 5-pound one, certainly if you know it cost 30 pounds. But you soon hit diminishing returns, so boasting about how much extra you paid for a relatively nugatory difference in the actual drink is more likely an example of what Freud called the narcissism of small differences than anything to do with value for money.

“It's certainly appreciably better if you know it costs 30 pounds.”

The point: Beyond a point, paying more for wine buys status distinctions rather than taste.

Sources (1)

Buy a £5 umbrella or a £200 one, never a £50 one

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Rory's daughters kept laddering the black tights their school required. A friend of his wife said expensive tights at £20 a pair actually work: they last five times as long, and because they're expensive the girls take better care of them. It's like the psychology of umbrellas: buy a £5 one you don't care about losing, or a £200 one you're so nervous about that you never lose it. Don't buy a £50 umbrella. The opposite of a good idea is another good idea.

“You either buy a £5 umbrella or a £200 umbrella. Don't buy a £50 umbrella.”

The point: Price changes how carefully we treat things, so the cheap and the expensive option can both beat the middle.

Sources (1)

Buying a new car is an act of philanthropy

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Spending has externalities. Going to the pub buys you a pint and helps keep a pub alive for others. Buying a car new, Rory argues, is extraordinary philanthropy: you take the depreciation hit so someone poorer can drive a six-year-old Jaguar at half price. We should have statues to people who buy new cars. His academic brother buys exactly what Rory buys three years later; a second-hand iPhone gives someone the phone the richest person in the world owned three years earlier. Even buying hot tubs makes hot tubs cheaper.

“We should have a statue to anybody who buys a car from new.”

The point: Early adopters subsidise everyone else, so consumption can be generous rather than selfish.

Sources (1)

Charge retired people more to shop at weekends

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Admitting it is malicious, Rory says he would favour a yield-management scheme charging retired people a premium for shopping on Saturdays and Sundays. You turn up at the weekend and think: you have had all week, what are you doing here? He also suggests a charitable premium for getting the empty seat next to you in economy.

“You've had all week, what are you doing here?”

The point: Peak pricing could spread demand, but only if framed in a way people accept.

Sources (1)

Charging a penny tripled broadband upgrades

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In a UK experiment, customers who had ignored six previous offers of a free broadband upgrade were instead charged one penny to upgrade. Of those remaining, 47 percent upgraded: adding a penny effectively tripled the communication's success. Rory doesn't quite know why, but the lesson is clear: if your product isn't selling, don't just test dropping the price, test putting it up.

“Adding one penny onto the price effectively tripled the successfulness of the communication.”

The point: A token price can make an offer credible where free fails.

Sources (1)

Cheap fixes get ignored because you cannot charge for them

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Tiny interventions like the call-centre phrases get little attention in business, and from agencies, precisely because they are not expensive and so are hard to charge for. Rory notes the great advantage of being an estate agent: the fee is a total rip-off, but next to the rip-off price of the house it seems modest. So the advertising business likes to attach itself to extraordinarily expensive projects, where its own hours look like a modest part of the endeavour.

“One of the great advantages of being an estate agent is it's a total rip-off, but compared to the price of the house it seems modest.”

The point: Fee structures bias suppliers towards big, costly solutions and away from cheap ones that work.

Sources (1)

Cities that can grow in four directions

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In the 2008 crash, Las Vegas, Phoenix and Austin saw dramatic property falls. Rory's explanation: they are not on a lake or a coast, so they can expand in all four directions, unlike San Francisco on its peninsula. Because area grows with the square of distance, going a mile further out yields far more land, so there is little scarcity. Designed for the car, they also allow tricks like Phoenix's synchronised traffic lights, letting you ride the green wave at night.

“Area expands at the square of distance.”

The point: Geography sets scarcity, and scarcity, not desirability alone, drives property prices.

Sources (1)

Coach travel, frozen food and the curse of efficiency

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Rory notes a cruel twist of capitalism: when something becomes cheap to make, because it is efficient, sustainable, uses no rare materials or little labour, its price falls and so does the esteem people hold it in. Coach travel and frozen food are environmentally excellent ways to move people and preserve food, yet because brands like National Express and Iceland became mass market they were seen as downmarket, inferior goods. Televisions, once priceless, now cost a few hundred pounds and earn little regard. Restoring that lost value is a vital job for advertising: coaches are cool enough when rock stars tour in them, so surely something can be done.

The point: Price and perceived value cause each other, so the better capitalism gets at lowering costs, the less people appreciate what it delivers.

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Coca-Cola's temperature-priced vending machine

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Coca-Cola tried a yield-management vending machine where the price of a Coke rose with the temperature. Public objection forced them to back down. Rory notes it was quite logical in economic terms but in psychological terms it does not work.

The point: Economically rational dynamic pricing can fail because it feels exploitative.

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Do not make it cheaper, make it seem cheaper

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Rory tells clients to stop trying to make their products cheaper and to find ways to make them seem cheaper instead. He adds that we lack a concept of emotional efficiency: how much resource, time and cost it takes to create a unit of endorphin rush, or whatever the ultimate human end is. Without it, firms cut real cost when perceived cost was the lever.

“Stop trying to make your products cheaper. Go and find a way to make them seem cheaper.”

The point: Perceived price is often cheaper to change than real price, and emotional efficiency is the metric businesses ignore.

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Don't make locker delivery cheaper

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Getting people to collect parcels from lockers would transform UK road congestion, and lockers at a petrol station can be filled at 3am, unlike a residential street, shifting deliveries overnight. A major shareholder in a big UK online retailer has got 40 percent of customers choosing lockers; it costs a pound, a pound to return, and after four uses it becomes habitual. The key tip: don't make it cheaper than home delivery, or people frame it as the worse alternative.

“If you make it cheaper than delivery to the door, people just frame it as being a worse alternative.”

The point: A discount can signal inferiority, so a desirable behaviour should not be priced as second best.

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Drinking yoghurt in the milk aisle or the yoghurt aisle

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Danone debated whether a drinking yoghurt belonged in the supermarket's milk section or yoghurt section. The milk aisle gets far more footfall. The problem is that people's price frame is much lower in the milk aisle than in the yoghurt aisle, so although you got more footfall there, you couldn't charge very much for the drinking yoghurt. Price framing works even at the level of the aisle.

“It even works at the aisle level.”

The point: Neighbouring products set the reference price, so placement trades traffic against what you can charge.

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EasyJet pricing is a redistribution of wealth

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Rory points out that everyone talks about redistributing wealth through taxation, but good yield management does it too. With EasyJet, if you are a student or retired and can fly on a Wednesday in March, you fly very cheaply; if you want Friday in August, it costs a fortune. Data-driven pricing lets those with time but little money travel, funded by those with money but no flexibility, a form of collaborative consumption nobody counts.

“A really good yield management product like EasyJet is actually a form of redistribution of wealth.”

The point: Data used for flexible pricing can make experiences more democratic, not just more profitable.

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EasyJet's premium sandwiches, bargain or treat

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EasyJet quickly discovered what is almost barbell pricing, Rory says: it sells quite premium coffee, sandwiches and food. Some passengers are very price sensitive and will order nothing. Others think 'I've saved 100 quid flying EasyJet, let's go large'. So there is no point aiming at the middle. McDonald's and KFC practise it too. Something is either a bargain or a treat; there is no word for anything in between, and the middle is slightly disappointing because it is neither one thing nor the other.

“Something's either a bargain or a treat. There's no word for something that's in between.”

The point: Pricing for the extremes beats pricing for the middle, because customers think in bargains and treats.

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Econs do exist, and you don't want them as customers

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The standard line is that Econs don't exist, since a purely self-interested person would have no friends. Rory argues differently: every category has de facto Econs, and you don't want them. Would you rather have Ocado's customers or those who chase Cheez Whiz on special? Attracting Econs can make you think you're doing well, but they're totally disloyal, give no benefit of the doubt, can't reciprocate, and are painful to serve because they're motivated only by transaction. There is always a valid cost-leadership strategy, as with Ryanair, but price-driven customers carry little value.

“There are Econs in categories, and you can actually deceive yourself because by attracting Econs you think you're doing really well.”

The point: Price-only customers inflate volume but deliver no loyalty, so winning them can be a false success.

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Eight minutes in Sunglass Hut makes £80 seem reasonable

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What research tells you is true in one context may not be in another. In some shops a £200 bag is expensive; in others it is cheap. Rory says anyone who has spent time in Sunglass Hut knows the effect: spend about eight minutes in the one at Heathrow Terminal 5 and suddenly an £80 pair of glasses seems really reasonable.

“Suddenly an 80 pound pair of spectacles seems really reasonable.”

The point: Price perception is set by the surrounding anchors, so the same price can be dear or cheap.

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Electric shocks before your pension rebate

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Working on a pensions problem, Rory had a weird theory. Money that involved some pain in the earning is valued more highly than money given for nothing. So the government pension rebate would have a higher perceived value if, instead of paying it automatically, the government made people report to an office every year and be subjected to electric shocks for half an hour before the rebate was paid. You would get more bang for the government's buck.

“The perceived value of the government money would be higher.”

The point: Effort or pain attached to receiving money raises its perceived value, so frictionless payments may be undervalued.

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Finish Quantum makes the rest look cheap

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Reckitt Benckiser launched Finish Quantum, a super-expensive dishwasher tablet, straight after the 2008 financial crisis. Some people, usually men who are slightly pervy about their dishwashers, will buy it and it probably makes money. But its real job is to make the rest of the dishwasher range seem a lot cheaper by comparison.

The point: A premium tier can exist mainly to reframe the price of the core range.

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Five Guys, expensive where it matters, generous elsewhere

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KFC people are huge admirers of Five Guys. It started food first, price later, then hit on a cunning formula: two signature items, the burger and the shake, are really expensive, while everything else is comparatively generous: the extra scoop of fries, free peanuts, unlimited drinks and free toppings, which everyone else charges for. So you feel you are paying where it makes a difference and not where it does not, in a setting little fancier than McDonald's, with piles of potato sacks sending their own signal.

“You feel you're paying for where it makes a difference and not paying for the things where it doesn't.”

The point: Concentrating price on signature items and being generous elsewhere makes a premium feel fair.

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Flexible work is worth more than a pay rise, and untaxed

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An employer offering flexible work, Rory argues, can make more difference to someone's disposable income than a pay rise, particularly if they can move out of London, never mind the reduction in commuting costs. The difference to perceived and enjoyed wealth is vast. And you can't tax it: if people reduce their costs, they keep all the money, whereas from a salary increase they keep perhaps 60 per cent, if they are lucky.

“An employer offering flexible work can make more difference to my disposable income than a pay rise.”

The point: Non-monetary benefits that cut costs can be worth more than taxed pay, giving employers a cheaper lever.

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Fourteen pounds of petrol for 180 miles, the same to carry trunks upstairs

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Rory's mathematician brother drove them 180 miles to university in about 1987, through the Cotswolds, loaded with heavy trunks. Unloading in the college car park, his brother noted that the petrol for the whole journey cost about 14.50, roughly what you would pay someone just to carry the trunks 250 yards up three flights of stairs to their room. Economics assumes every expenditure is optimised for utility, but we get upset about some costs and happily pay others, with no well-calibrated utilometer at all.

“Every single case, our conception of value is basically based on some arbitrary anchoring point.”

The point: Our sense of whether something is expensive rests on arbitrary anchors, not utility.

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Free petrol made him buy a gas guzzler

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Because Ogilvy pays for his petrol, Rory faced a perverse economic incentive when buying a car. Second-hand cars with bad fuel consumption are very cheap because everyone is terrified of fuel prices, so he went to the dealer and asked for a cheap gas guzzler.

“Give me a cheap gas guzzler.”

The point: Incentives that remove a cost from one party flip which choice looks rational to them.

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Gary, go and buy some shoes

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Rory's first, frivolous point about Gary Stevenson: if you want to help redistribute wealth, go out and spend some money. Reading his book, Rory noticed he was earning £2 or £3 million a year with one pair of shoes while his school friends worked in JD Sports. Just go to JD Sports and buy a few pairs, help out your mates, get a hot tub. Rory suspects banking breeds this: when fun is covered by an entertainment budget, spending your own money becomes disproportionately painful.

“If you want to redistribute wealth, it does help if rich people occasionally go out and buy something.”

The point: Spending, not just taxation, circulates wealth, and expense-account cultures make people pathologically stingy.

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Give the finance director a rebate, not a discount

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Rory is horrified when B2B companies cut prices. Offer a rebate instead, as ASOS might give five pounds back to prompt another purchase. A finance director prefers an annual rebate, conditional on something, to a cost reduction, because it is money he can put wherever he likes, topping up a pot that is behind. That, Rory teases, is what finance people do: they do not create value, they move money around to make it look more impressive. The same money has a different value depending on how you pay it.

“The same money has a different value depending on how you pay it.”

The point: The form in which value is delivered changes its perceived worth, even when the sum is identical.

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Gordon's sloe gin in the gin bottle

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Someone from Diageo told Rory the one fat-tailed brilliant thing they did in five years: putting Gordon's sloe gin in the same bottle as ordinary Gordon's and placing it next to it on the shelf. Previously sloe gin sat in the weird-drinks section with triple sec and Fernet-Branca. Sloe gin is 20% alcohol, not 40%, so pays far less duty, but side by side it sells at the same price because it is purple and cool, and makes a lot of money. It is also a better summer drink: you won't fall asleep in the afternoon.

“It was a context reframing. Just change the context.”

The point: Moving a product into a new comparison set can transform its sales and margin.

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He'd make a million in America and spend it at Whole Foods

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Rick Rubin asked Rory why he never moved to the United States. One reason: he'd probably make a million dollars, then start shopping at Whole Foods and be back where he started, an individual Malthusian trap. An LA creative visiting Britain was in raptures about Waitrose's quality and reasonable prices, having grown up on Whole Foods. American grocery is bipolar, like having a choice between first class and standing room only; German grocery is about price, British about brand.

“I'd probably make a million dollars but then I'd start shopping at Whole Foods and I'd be back to where I started.”

The point: Higher earnings are often absorbed by higher local costs, leaving real welfare unchanged.

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His father never put up a good tenant's rent

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Rory's father was a landlord for many years, and if he had a good tenant he didn't really put the rent up. His reasoning was twofold. Raise the rent and lose a good tenant, and the house sits empty for months, which takes a long time to recoup. And if the good tenant is replaced by a bad one, there is no amount of rent that makes that worthwhile.

“If your good tenant is replaced with a bad tenant, there's no amount of rent that makes that worthwhile.”

The point: Optimising price per period ignores the much larger value of a reliable relationship and the cost of variance.

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Hotel Tonight and the dud inventory

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Hotel Tonight is an app where you must book a hotel the same day. Tourists and business people will not use it, but if you are drunk and missed the last train, it is perfect, and the hotel sells a room it would not otherwise have sold. Hotels need perhaps 15 to 20 pounds a room to break even on turning it over. Rory says such value-exchange innovations are rare because marketing no longer controls pricing or the four Ps; it has been devolved into a marcoms ghetto, so these ideas fall between stools.

“Marketing no longer has responsibility properly for pricing.”

The point: Finding a niche to absorb unsold inventory is valuable, but marketing has lost the remit to do it.

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Imagine having to buy Ford shares to own a Mondeo

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Rebuilding a grand London house might cost 250,000; it is worth 2.5 million, because the value is in the land. So to buy somewhere to live you must spend nine times as much on rights to land. Imagine buying a Ford Mondeo and being told you must also buy 200,000 pounds of Ford shares. I just want a car, not an investment, yet with houses we have conflated the two. The Irish traveller community, US trailer parks and Caribbean chattel houses all solved it by owning the home but not the land.

“I just want a car, I don't want an investment.”

The point: Bundling a consumption good with a speculative asset inflates its cost and distorts choices.

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Indian food is underpriced in Britain

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Rory has always thought Indian food massively underpriced in the UK. People who would happily spend £120 on a French meal get really annoyed paying £40 for an Indian meal, though, he says provocatively, it's obviously better food. Within a category, people just get anchor points, and judge price against those rather than against quality.

“People who'd happily spend 120 pounds on a French meal would get really pissy if they had to pay 40 pounds for an Indian meal.”

The point: Category anchors set what people will pay, independent of quality.

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Insist I drive an Aston Martin

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When Rory started in advertising, expensive company cars were a brilliant perk because they gave you a car you would feel too guilty to buy with your own money. Economists say offer the cash alternative instead. Don't, says Rory, it ruins it. He wants his company to give him an Aston Martin and insist he drives it, because his wife would be angry if he bought one himself. The acquisition value is huge but the pain of buying is too great.

“The benefits of free will are grossly overrated in my opinion.”

The point: Removing the choice can increase pleasure by removing the guilt of choosing.

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It pays to cultivate eccentric taste

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It pays to cultivate eccentric taste. If you have mainstream tastes imposed on you by other people, it is like going on holiday in August: Rory cannot understand why people without children do it, when everything is more expensive and more crowded, and the weather in London is finally nice, exactly when you want to be in the UK.

“It pays to cultivate eccentric taste.”

The point: Avoiding what everyone else wants lets you buy more value for less.

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Joe's Stone Crab keeps the cheap chicken

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Joe's Stone Crab in Miami, reportedly among the most profitable restaurants per square metre, closes for months out of crab season, rather as Chick-fil-A closes on Sundays. It has always offered a much cheaper chicken dish as an entry-level product. Consultants keep telling it to drop the low-margin item. The owners refuse: the restaurant depends on having police officers at the tables alongside couples on anniversaries, and without the cheap option the mix of clientele and the whole vibe would change.

“If we take away the low-cost items, we're no longer the same place.”

The point: A low-margin entry product can sustain the mixed clientele that gives a venue its character and value.

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Leather seats versus making cloth seats cool

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Rory relays a thought experiment from the philosopher Jamie Whyte[?]. You sell a car for ten thousand pounds and want eleven. You could spend five hundred pounds per car fitting leather seats and charge a thousand more. Or you could spend the same five hundred per car on advertising that convinces people cloth seats are cooler than leather. If value is subjective, the two create exactly equal value. Rory goes further: the second is clearly better, at least from a cow's point of view.

The point: If value is subjective, changing perception creates value as genuinely as changing the product, often with less material cost.

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Luxury price rises stop working when inflation arrives

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Rory distinguishes the luxury goods market, epitomised by Hermes, from the luxury brands market, which is mostly signalling. One theory for the latter's slump: brands raised prices six or seven per cent a year, which worked when inflation was low and nobody noticed. Add four or five per cent inflation and the compounded jump becomes visible, so a customer walking in for their next pair of Church's shoes recoils. He thinks the brands got greedy and risk jumping the shark.

“If you wanted to put your prices up by five, six, seven per cent above inflation every year, it helped to have really low inflation.”

The point: A pricing strategy that relies on customers not noticing breaks when external conditions make the change noticeable.

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M&S Dine In and three for seven pounds

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Marks and Spencer cannot beat Lidl or Tesco on price, so its Dine In for two for ten pounds frames the price against a restaurant meal rather than against grocery rivals. Its three-for-seven-pounds dips work similarly: Rory admits he never adds up the three individual prices to check they exceed seven pounds; he just grabs three because there is a deal and he hates missing out. Once you accept psychological asymmetries, the game goes from draughts to chess.

“You frame your price against a restaurant meal, not against your grocery competitors.”

The point: Choosing the comparison set reframes value, and bundle deals work on fear of missing out more than arithmetic.

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Make the last two chargers more expensive

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Rory offers a throwaway idea for psychological pricing in public charging. If a site has six chargers, the fifth and sixth should cost more than the other four, or rather become more expensive once four are occupied. That way they stay free for people who are desperate, and those who do use them charge only as long as necessary rather than plugging in and going off for a three-course meal.

“The fifth and sixth charges should be more expensive than the other four, so that they're free for people who are desperate.”

The point: Dynamic pricing of the last units of capacity can guarantee availability for those who need it most.

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McDonald's Wrap of the Day

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Rory's example of clever price discrimination, apparently very successful, is McDonald's Wrap of the Day. Wraps rotate by day of the week. If you want your preferred flavour, four days out of five you pay a pound extra; if you would rather save a pound, you sacrifice choice and take the day's wrap, which they probably pre-make in larger numbers. People who care about flavour pay for it; people who care about price save. He notes the economist Robert H. Frank, fairly left-wing, favours price discrimination because it delivers most value to most people.

The point: Good price discrimination lets each customer trade what they care less about for what they care more about.

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MCI Friends and Family beat a price cut

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MCI's Friends and Family let you list 10 or 15 people you called most and, if they were MCI customers, gave around 20% off those calls. Objectively it was rubbish, but consumers loved it. Comedians joked about it and people discussed their circle in the pub for about eight years. Had MCI cut prices 10%, people would have forgotten in three months. Likewise if Boots cut prices 4% instead of the Advantage Card, 95% would not notice. Gamified, the same nugatory discount becomes insanely exciting.

“The very same level of discounting, which is nugatory in economic terms, suddenly becomes insanely exciting.”

The point: Framing a discount as a game or relationship creates far more engagement than a price cut.

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Michelin-quality curry in a sachet is too good to be true

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Some Indian-Americans in Berkeley used NASA-derived preservation technology to make Michelin-quality Indian food in sachets with a shelf life of months. Rory did not believe it until he and his wife blind-tasted the biryani and haleem and were astounded. Their real marketing problem, he told them, is that it is too good to be true; people always ask 'where's the catch?' One solution is to make it insanely expensive, creating a trade-off. Another, from Dan Ariely, is to build in a downside, such as harder preparation. Rory adds that if women chatted up men, the men would suspect a honey trap.

“Fundamentally we're always asking where's the catch.”

The point: A product with no apparent trade-off is distrusted, so adding one, even a high price, can help it sell.

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Mick Jagger offered double, and he sold

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Under Rory's always-for-sale scheme, people who don't want to sell would simply quote an insanely high price. Occasionally someone would pay it, and that's fine. He cites an advertising man who bought a house in Richmond; afterwards Mick Jagger came round and offered to pay double, and he did sell.

“There'd be people who don't want to sell who put in an insanely high price, and someone's willing to pay that.”

The point: Almost anything is for sale at the right price, so a standing asking price reveals latent supply.

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Miss your train and pay twice

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Rory uses David Rock's SCARF model (status, certainty, autonomy, relatedness, fairness) as a checklist: violate one and you make a big business mistake, often unknowingly. He has long campaigned with rail companies over advance tickets. Miss your train and you must buy a full-fare ticket, with no credit for the unused one. Economically logical in yield management, but nearly every customer perceives it as 'you've made me pay twice'. It is very bad marketing, because it leaves people feeling ripped off.

“Not only have you made me pay full fare, you've made me pay twice.”

The point: Policies that feel unfair do lasting damage, whatever their economic logic.

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Mobile phones reached everyone through pay-as-you-go

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Rory says consumers never liked subscriptions much. The mobile phone industry only reached 100 per cent penetration because it introduced pay-as-you-go: as anyone in a relationship knows, some people are commitment-phobes. Many pay-as-you-go customers actually spend more than they would on a contract. They pay a premium for flexibility, liking the feeling that if they are skint one month they could lock the phone in a cupboard, though they never do.

“They're actually paying a premium for flexibility.”

The point: Offering a no-commitment option reaches people a subscription never will, often at higher margins.

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Money with an expiry date, as marketers already invented

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Rory admires an idea from an economist he calls an Italian socialist: money with an expiry date, so people spend it rather than hoard it, raising its velocity. Marketers had already invented this: the Sainsbury's voucher giving five pounds off a 60 pound shop that expires in two weeks. Airline loyalty schemes are what Hayek described as multiple currencies, each with its own rules. Rory says he is not really a capitalist but a consumerist, and suggests quantitative easing should have handed people money they had to spend fast.

“I'm not really a capitalist, I'm a consumerist.”

The point: Expiry dates and private currencies change spending behaviour, and policy could borrow from marketing.

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Nobody asks what Leonardo's paint cost

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Rory recommends a YouTube conversation between Mark Carney and Damien Hirst. Hirst observed that when he produced his diamond-encrusted skull, everyone wanted to know what the diamonds cost. Yet people will pay $150 million for a Leonardo knowing it's worthless canvas and paint, and nobody asks. With art the value is accepted as entirely separate from raw materials, except when the materials are themselves valuable. The curse of advertising, he adds, is being paid on labour, on what something costs to make, not the value of what you did.

The point: Visible costly inputs anchor valuation on cost, while invisible inputs let value float free of it.

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Nobody says it wasn't expensive enough

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You can talk to customers too much, because much behaviour is unconscious: felt, not thought or spoken. There is abundant evidence that raising a price sometimes increases sales. But almost nobody will tell a researcher 'I would have bought it, but it wasn't expensive enough': it makes you sound weird, and in a focus group everyone would think you a box of frogs. Whereas 'it's too expensive' is the easiest excuse on the shelf for not buying.

“The number of people who actually say to you 'I would have bought that thing, but it wasn't expensive enough' is minuscule.”

The point: Research captures socially acceptable reasons, not real motives, so it systematically misreads price.

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Now you blame yourself, not the airline

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Yield management needed technology, because comparing fares by phone would be unbearably tedious, but it also needed psychological progress. Thirty or forty years ago, if you discovered the person next to you on a plane had paid 40 less than you, you blamed the airline. Now you blame yourself for not booking earlier. Someone introduced a new rule of thumb, the earlier you book the less you pay, and people accepted price variation they once thought unfair.

“Now you blame yourself: I should have booked earlier.”

The point: Giving people a new heuristic can make a once-unacceptable practice feel fair; this is psychological progress.

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Oasis tickets, the gap between 'oh no' and 'what the hell'

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Rory is broadly in favour of price discrimination, but thinks the Oasis ticket fiasco violated fairness by jumping from about 135 to 315 pounds. He finds it odd there was no intermediate step around 200-something, because that is the difference between 'oh shit' and 'what the f***'. A rise to around 240 people grumble about; 315, when you had planned to go and now cannot, feels like an outrage.

“That's the difference between an 'oh shit' and 'what the f***'.”

The point: The size of a price jump, not just the final price, determines whether customers feel cheated.

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Off-peak first class sells elbow room

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A first-class ticket sells different things at different times. At peak it sells the right to a seat; off peak it sells elbow room. Rory buys an off-peak first-class return when travelling at 10am not for the leg room, since he is stumpy and will get a seat anyway, but for a table with nobody beside him so he can work. So an enlarged first class could sell its off-peak seats for a small premium to people who want to work.

“What you're actually selling at off-peak hours is elbow room.”

The point: The same product delivers different value at different times, so price and pitch it accordingly.

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Paying $60,000 to avoid $40,000 of tax

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Rory met an American who said, in absolute seriousness, that he would happily pay $60,000 to a tax adviser to avoid paying $40,000 in tax. The resentment of tax dollars was so strong that he would rather lose more money than give any to the government.

“They would happily pay $60,000 to a tax adviser to avoid paying $40,000 in tax.”

The point: Where money goes matters emotionally as much as how much is spent; aversion to tax can override self-interest.

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People pay according to specificity

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Rory recommends Alex Hormozi's $100M Offers, about the neglected area of the proposition. Hormozi made the point that general business management software might fetch 50 pounds, gym management software 5,000 pounds, and software for small gyms even more, because people pay according to specificity. Procter and Gamble called this kind of thing commercial innovation: not changing the product but how it is sold, priced and packaged.

“People pay according to specificity.”

The point: Tailoring a proposition to a narrow audience raises its perceived value and price.

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Points to get below the guilt threshold

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Rory is a late convert to Marriott Bonvoy and wants Avios and Marriott to push points plus cash. He dislikes burning 90,000 points at once because it feels like loss. Instead he uses points to take a hotel price below the guilt threshold: a London hotel before an early start is 200 pounds of his own money, which feels too much; chuck in a few points and it is 120, which he is fine with. He is not really reducing the price but the emotional pain of the transaction, which is why psychology is the fifth P.

“What I often use the points to do is to take the price of the hotel below the guilt threshold.”

The point: Mixed payment methods can ease the felt pain of paying without changing the economics much.

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Posh sugar lumps stuck in the baking aisle

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Where things sit on a supermarket shelf seems to reflect how categories were defined around 1930, rather like London bus routes, which barely changed since Edwardian times. It drives Rory mad that posh sugar lumps are shelved with flour and baking goods, because sugar is classed as a baking ingredient. They should be next to the posh tea and coffee. Why not sell those crystalline brown things at a big markup next to the blinged-up coffee pods?

The point: Inherited category structures leave obvious premium cross-selling opportunities unexploited.

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Property as a sump that soaks up growth

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There is no point growing the economy if future gains simply get parlayed into property, a massive sump. Rory jokes to Indian friends that there's no point growing India's economy because the surplus will just be spent on weddings (one replied he'd married three months ago, so not funny). His father believed 1970s property was cheap because cars, TVs, washing machines and foreign holidays were really expensive, leaving little for housing. Now the creative economy makes a 65-inch TV cost £650, so housing absorbs the difference.

“There's no point in growing the economy if all future gains simply get parlayed into the property market.”

The point: When consumer goods get cheap, scarce assets like land absorb the freed-up income.

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Quakers invented the printed retail price

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Before the Quakers, if you looked a bit rich the shopkeeper simply quoted you a higher price for chocolate. The Quakers thought that unfair, so they printed what they considered a fair price on the chocolate bar, the first business to do so. A by-product of this ethical behaviour was that consumers loved it, felt they weren't being gouged, and bought much more of that chocolate. People care not just about the sale but about the seller and whether the seller can be trusted.

“There is something about the human being which doesn't just care about the sale, it cares about the seller.”

The point: Visible fairness builds trust that translates directly into sales.

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Rhino horn and the rare-means-valuable bias

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Unless you are a Marxist who believes value comes from labour, Rory says, you must accept that value is subjective and shaped by millions of years of evolution, which makes it lopsided. He offers a contentious defence of advertising: sometimes our sense of value is so distorted that tampering with it is healthy. People prize rhinoceros horn, tiger claws and rare hardwood furniture simply because they are scarce and costly, assuming they must be packed with goodness. Equally we undervalue whatever is cheap. Both biases need correcting.

The point: Because perceived value tracks rarity and price rather than usefulness, advertising can legitimately re-steer valuation towards better goods.

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Round, 99p or fluid pricing, always test

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Rory asked real pricing experts when to use round pricing (£1, £5), charm pricing (£2.99) or fluid pricing (£3.17), which tends to mark down-market retailers and signals 'we are not rounding up here, we are really tight'. Their only answer was that it is always worth testing because it makes a huge difference, but they had never found a generalisable law for which to use. The only law was: you need to test.

“The only generalisable law we can actually derive is you need to test this.”

The point: Price presentation has big but context-specific effects, so test rather than theorise.

Sources (1)

Saga should sell holidays to the over-49s

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Saga, which sells holidays and cruises to the over-50s, has in effect stolen from Reagan with its new strapline 'Experience is everything', rebranding age as an asset: a holiday company for people who know what they like. Rory has told them, without success, that they should make it 'over 49', because there is a massive psychological difference between holidays for people over 49 and over 50, much like 99p pricing.

“There's a massive psychological difference between holidays for people over 49 and holidays for people over 50.”

The point: Round-number thresholds carry psychological weight, and a one-unit shift can change how a category feels.

Sources (1)

Samsung's halo phone turned out to be a profit engine

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There is a surprisingly large group of people who simply buy the best in categories they care about. Samsung always produced a top-of-the-range Galaxy phone as a halo product, intended as an anchoring device to make the rest of the range look better. To Samsung's surprise, the top-of-the-range phone turned out to be one of the most profitable things it sells.

The point: Products created to anchor a range can find a real market among people who always buy the best.

Sources (1)

Sell the room first, then the suite

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Rory cannot understand why hotels do not text guests at 8pm saying seven suites are free and unlikely to sell at full price: that is good economics enabled by technology. The psychology is that it is far easier to get someone to pay a large sum in two stages. Selling a suite up front is hard; selling a room and then, weeks later, an upgrade to a suite is much easier. He calls this chunking.

The point: Splitting a big purchase into a smaller commitment followed by an upgrade lowers resistance.

Sources (1)

Servants who refused salmon more than three times a week

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Luxury depends on scarcity. In parts of Scotland, and possibly near the Wye in Wales, a servant in a country house might have it written into their contract that they would not be expected to eat salmon more than three times a week, because it was simply being pulled out of the river with no wider market. Lobster was similarly served to the poor in parts of the United States, and New York was partly built on hugely abundant oyster beds.

The point: What counts as a luxury food is set by scarcity and market reach, not intrinsic quality.

Sources (1)

Show them the worse, dearer house first

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Rory says estate agents apparently have a trick. Before showing a buyer the house you want to sell them, show them a less appropriate one, ideally slightly more expensive. Then when they see your house, the choice is clear-cut: it's a bit cheaper than the other one and it's got a conservatory. It's a decoy effect, like the famous Economist subscription experiment. He wonders what interface AI will use to help us choose, and whether it will forget this.

“Ooh, it's a bit cheaper than the other one and it's got a conservatory.”

The point: A deliberately inferior comparison makes the target option feel obviously right.

Sources (1)

Spotify should sell 150 tracks, not infinite music

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Rory argued with Spotify that offering infinite music for 9.99 a month might be a mistake, and that limiting people to 150 tracks a month could be more popular and valuable. The problem with infinite music is that nobody knows what it is worth; it is like being asked to buy a unicorn, with nothing to compare it to. Say 200 tracks a month and people think: that is about 20 CDs costing 140, so 9.99 is a good deal. Estate agents use the same trick, since we value houses only against similar houses.

“It's like me saying to you, would you like to buy my unicorn?”

The point: People need a comparison to judge value; an unanchored offer, however generous, is hard to price.

Sources (1)

Starbucks card, cost is a feeling, not a number

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About a billion dollars sits on Starbucks stored-value cards at any one time. When you have $30 on the card and spend $20 on coffee, it feels like $10, because you have already committed the money and are just converting it to coffee a bit early. Rory draws a rule: if you can get people to pay twice, always do so. Hotels and airlines should sell upgrades to people who prepaid months ago, since the original cost is mentally written off.

“Cost is a feeling, it's not a number.”

The point: Splitting payment over time changes how much each part hurts.

Sources (1)

Still or sparkling?

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It is very easy to be given a choice and believe you have freedom of choice, Rory warns. A very profitable sentence in the restaurant industry is simply 'still or sparkling?' Restaurants love it because it makes it really difficult to say 'tap'. Every time they use that sentence, there goes two pounds eighteen.

“Every time they use that sentence, there goes two pounds eighteen.”

The point: How a question is framed can silently remove the cheapest option from the menu.

Sources (1)

Texas, that's why the land is cheap

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Texas, stereotyped as the most conservative state, has quite heavy property taxes, around 2.5% a year, which keeps property cheaper and stops it being used as an extractive store of wealth. Californians reportedly move there, delighted at how cheap the land is, and buy loads of it. Six months later a massive tax bill arrives. 'We bought this land because it's cheap,' they protest. The Texans reply: 'That's why it's cheap.'

“That's why it's cheap. You pay 2.5% tax on it.”

The point: Land taxes lower land prices and discourage hoarding property as a speculative asset.

Sources (1)

The 9,000 pound limit became the price

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Rory cites Luca Dellanna and a colleague on fence theory: a rule set as a limit tends to become a target. The 9,000 pound cap on British university fees was meant as a maximum, with naive economists expecting a spread of prices and cheap one-year courses at 4,000 pounds. Instead everyone charged 9,000, because charging less would officially admit you were not as good as the others. Prices are not just an obstacle: they signal seller confidence.

“Rules you set as a limit tend to become a target.”

The point: Price caps become price floors when a lower price would signal lower quality.

Sources (1)

The bag that resells for more than it costs

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The host's children asked why anyone would pay 20,000 or 30,000 euros for a Louis Vuitton bag. Rory notes that some such bags can be resold for more than their purchase price: Hermès won't sell you a Kelly bag until you've been a reliable customer for some time, so its eBay price exceeds the store price. They are Veblen goods: a large proportion of their value depends on being perceived to be expensive.

“A large proportion of goods depend for their value on being perceived to be expensive.”

The point: Scarcity and gatekeeping can make price itself the product.

Sources (1)

The bread machine nobody bought sold the one in the middle

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In a famous case (Rory thinks at Williams-Sonoma), a cheap and a pricier bread machine sold barely at all, and the retailer was about to abandon the category. Then it stocked a massively expensive bread machine. Nobody bought that one, but everybody started buying the one in the middle. When unsure, humans choose the middle option, the Goldilocks effect, and the super-expensive model made the others look reasonable. Reckitt does the same with Finish, though it is running out of adjectives for the top of the range.

“You're running out of adjectives for the top of the range product.”

The point: A premium decoy reframes the rest of the range and lifts sales of the middle option.

Sources (1)

The Buenos Aires orange juice price trick

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Rory shows a street vendor's sign in Buenos Aires advertising jugo de naranja, orange juice, with a price that is in pesos rather than dollars. The clever vendors use the ambiguity to practise price discrimination against passing gringo tourists. As an advertising man he admires it, and uses it to make the point that all value is relative and perceived.

“All value is actually relative. All value is perceived value.”

The point: Value is subjective, and framing a price changes what people will pay.

Sources (1)

The cheaper, bigger Bluetooth speaker at the airport

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Airports turn people's brains to mush, Rory says: you already have four Bluetooth speakers but somehow need a fifth, so his advice is never buy anything in an airport. Suppose there are two speakers and the bigger one with more woofers is cheaper. An economist says higher utility, lower price, buy it. The human brain applies social intelligence: if that were really the better speaker they would charge more, so its cheapness signals low seller confidence or a hidden flaw. You may well buy the dearer one with fewer features.

“If that were really the better Bluetooth speaker, surely they'd charge more for it.”

The point: People read price as a signal of the seller's confidence, so underpricing a better product backfires.

Sources (1)

The coach driver's worst week of the season

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A coach driver told Rory the worst job was the last week of the holiday season, full of people who couldn't really afford a holiday but felt they needed one and bought the cheapest. Driving them to Tintern Abbey in the 1970s, half got off and were back on the coach three minutes later because it cost 50p to go in, and they'd steal toast from the hotel breakfast to make lunchtime sandwiches. The peak-season tourists, probably no richer, just slightly more extravagant, were delightful. When everything is a cash-flow decision, the experience suffers for everyone.

The point: Customers with no discretionary margin make every transaction fraught, which is why price-led segments are hard to serve well.

Sources (1)

The Danish crown's self-declared cargo toll

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People centuries ago were very clever, perhaps because they spent less time staring at smartphones. The Danish crown charged customs on cargoes passing through the Øresund strait. Sending officials aboard to value each cargo was a bother, so instead they said: you tell us what your cargo is worth and we will charge you 10 per cent of that. And every now and then, we will randomly buy your cargo at the price you quoted. Rory notes you could do property valuation the same way: declare your house's value, and we have the right to buy it at that price.

“Every now and then we'll randomly buy your cargo at the price you quoted.”

The point: A simple, credible threat can make people self-report honestly without costly inspection.

Sources (1)

The Economist's decoy subscription

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The Economist offered paper only, paper plus digital, and digital only, with paper only and paper plus digital at the same price. Seeing that, you felt the digital came free with paper. Vanishingly few people chose paper only. But remove it, and far fewer chose paper plus digital: the presence of the useless middle option increased paper-plus-digital subscriptions by around two or three hundred per cent, shifting the ratio. Rory suspects that was valuable, since paper circulation is probably worth more in advertising revenue than digital.

The point: An option nobody chooses can still steer choices by changing the comparison.

Sources (1)

The Hoover man who visited after the sale

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Rory's father, at school in Cheltenham in wartime, ordered a fountain pen from Cavendish House; weeks later a postcard arrived saying it was in stock. Around 1955 he bought a Hoover in Abergavenny and drove home a few miles away, where a Hoover representative was waiting to ask if he needed help setting it up. Labour was cheap and manufactured goods expensive, the vacuum costing several weeks' wages. Even his father thought it a bit much. Imagine a Dyson consultant turning up today.

“There was a representative from Hoover asking him if he needed any help setting up the machine.”

The point: The relative cost of goods and labour shapes what service is possible and expected.

Sources (1)

The joyless consumer surplus on a flat-screen TV

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Many people would gladly pay three thousand pounds for a flat-screen television if they had to. They can buy one for eight hundred. Yet nobody feels as though they paid full price and then received a two-thousand-pound rebate. Economists call that gap the consumer surplus, and Rory points out that it produces no pleasure or gratitude at all. So much of capitalism's efficiency never converts into happiness. He suggests that advertising's role may be less about adding value than about retrieving the value people already get but fail to feel.

The point: Savings people never notice create no satisfaction, so a job of marketing is to help people appreciate value they already receive.

Sources (1)

The Oxford Street shop that's always closing down

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A mainstream economist sees a sale simply as lower prices raising demand, and that is partly true: hold a sale without cutting prices and people would be annoyed. But much else is going on: scarcity, the fear others will buy what you want; social proof, in the queues outside; and time limits, since most sales are finite. There is a shop on Oxford Street that has held a closing-down sale uninterruptedly for about five years, but it caters to tourists who are not around to notice the inconsistency.

The point: Even the most 'economic' tactic works through a blend of price and psychology, and the best solution uses both.

Sources (1)

The same dress sells better at £39.95 than at £34

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The one truth of neoclassical economics is supposed to be that the demand curve moves in one direction. Rory says experiments consistently show this is untrue: put an identical dress in a mail-order catalogue sent out at random, and you will sell more at £29.95 and at £39.95 than at £34. Human behaviour is non-linear, and its curve does not even bend one way.

“The curve doesn't even curve one way.”

The point: Price and demand are psychological and non-monotonic, so models that assume a tidy demand curve mislead.

Sources (1)

The £16 billion 3G licence and the unmetered frame

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The mobile operators paid £16 billion for 3G licences even though the frame of reference for broadband had become unmetered. Since people now expected internet access without paying per unit, the operators were never going to get their money back by charging for mobile data by the megabyte. Rory's verdict: billions of pounds poured away because nobody asked how consumers would frame the price.

The point: Consumers' existing reference frame for pricing can make a numerically sound business case unworkable.

Sources (1)

Tightwads outnumber spendthrifts

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Turning money into a good life is a skill, and people fail at it in both directions. Economics acknowledges spendthrifts who get into debt, but George Loewenstein pointed out that there must also be tightwads, for whom the act of parting with money is so painful that they spend far too little. In his survey roughly 40 to 50% of people get it about right, and tightwads outnumber spendthrifts. Loewenstein is a big believer in buying experiences rather than stuff.

“Skinflints actually outnumber spendthrifts.”

The point: The pain of paying causes chronic underspending, a failure economics largely ignores.

Sources (1)

Treat price like a marketer, not an accountant

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Rory praises Octopus Energy for treating price like a marketer rather than an accountant. One of the greatest ways to transform behaviour is to experiment with different forms of payment: not making people pay less, just pay differently. Most organisations set price by cost-plus, a simple backwards approach, and because they price to everyone in the same monotonous way they never learn anything. Octopus's tariff gave 20 per cent off when nearby wind turbine blades were turning and 50 per cent off at full speed.

“It doesn't mean people pay less. It simply means they pay differently.”

The point: Varying how people pay is an under-explored lever for changing behaviour and learning about customers.

Sources (1)

Two single espressos instead of a double

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Rory loves a story from Gary Stevenson's book. An Italian on the trading desk bought a single espresso for 80p early in the morning, and another single three hours later, when a double cost £1.30. It drove his very rich colleagues nearly insane: he was failing to exploit an arbitrage and leaving money on the table. His answer: the second half of the double would be terrible three hours later.

“But the second half of the espresso will be terrible three hours later.”

The point: Price-per-unit logic ignores the value of freshness and timing that people rightly pay for.

Sources (1)

ULEZ needed an Amazon Prime

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London's ULEZ charged older diesel vehicles a daily fee. Rory, living just outside in Sevenoaks, enters perhaps six or eight times a year and could swallow it. But a hundred people paying once barely care, while one person paying a hundred times is nearly bankrupted, such as a nurse on shift work with an old diesel because she cannot afford a newer car. There was no equivalent of Amazon Prime, pay once for the year. Optimising for the average cannot distinguish the two cases.

“A hundred people paying the ULEZ charge once don't really care, whereas one person paying it a hundred times is practically bankrupted.”

The point: Pricing designed around averages falls brutally on frequent users; caps or passes fix the inequity.

Sources (1)

Use tier points, not price cuts, for yield management

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People value points far above their cash equivalent. With airline tier points, something like 45% of people admit they have contrived a completely gratuitous business trip to avoid dropping a tier: Barry in Spitsbergen suddenly needs a visit before October, when status renews. So why not use points in yield management? Instead of cutting the fare by £50, offer 10 bonus tier points or 3,000 Avios. Why use money, the language of economists, when points change behaviour more effectively and create FOMO?

“Why are we using money, the language of economists, to change behaviour when points do it far more effectively?”

The point: Non-cash rewards can move behaviour more cheaply than price.

Sources (1)

Walmart ships shovels to the snowstorm instead of raising prices

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Uber thought it perfectly economically logical to multiply its prices during the Sydney hostage siege. Had they read John Locke's paper Venditio they'd know we have a strong evolved sense of a fair price, and gouging on someone's misfortune is a powerful ethical no-no. Walmart does not raise the price of shovels in a snowstorm or building materials in a hurricane. Instead its disaster prediction centre in Arkansas ships huge quantities to where disaster is about to strike. As Richard Thaler says of ski resorts: gouge them at Christmas and they don't come back at Easter.

“Decency and fairness are good business. It's not just a question of ethics.”

The point: Fairness is an evolved expectation, so exploiting a temporary advantage costs more in trust than it earns.

Sources (1)

Watermelonade

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People stop Rory in the street to say his books made them money, usually without explaining how. One cafe owner could never sell watermelon juice. After reading Alchemy they added a few herbs, put the price up and called it 'watermelonade', a near-pun on lemonade, and suddenly sold tons of it. Effectively the same product, presented differently, had a completely different appeal.

“It's the same thing but presented differently, and it has a completely different appeal.”

The point: A name, a small addition and a higher price can transform how a product sells.

Sources (1)

What if your place is all about coffee?

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Nearly every really successful business, Rory argues, defies conventional economic thinking. The general assumption was that you could not charge three pounds for a coffee. Starbucks and its precursors asked a different question: if your place is all about coffee, what can you charge for coffee? Everyone else sold coffee as an also-ran on the menu. Rory calls it a jack-of-all-trades heuristic: if you only do one thing, people judge you differently from if you offer lots of things.

“If you only do one thing, people judge you in a different way.”

The point: Specialising signals expertise and changes what people will pay, beyond the product's objective quality.

Sources (1)

Why can't I buy British Airways vouchers?

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Rory berates a British Airways marketer in the audience: in WH Smith you can buy Amazon, Netflix and Apple vouchers, but you cannot buy British Airways vouchers to give as a present. He calls it insane. The leakage from unredeemed vouchers would make a fortune, many people would use them to upgrade, and a few hundred pounds of BA vouchers would make an obvious wedding present.

“Why don't you have a gift currency?”

The point: Turning a service into a giftable currency creates new demand plus profitable breakage.

Sources (1)

Why don't French motorway tolls vary by time?

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Before the interview, Rory tweeted asking French people why their motorways charge a flat fee between, say, Calais and Lille, whether you travel at 2am or at peak time. It seems an extraordinarily missed opportunity to borrow yield management from the competitive airline industry. There may be a cultural reason, but they may simply not have thought of it. Sometimes there really are $20 bills lying on the pavement.

“It could just be they haven't thought of it.”

The point: Less competitive industries leave obvious ideas from other sectors unused.

Sources (1)

Why the Bond film costs the same as the art-house film

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All cinema tickets cost roughly the same, which economists find puzzling. Rory explains that if the Bond film cost 20 pounds and the art-house film 3.50, the price would signal which promises a good evening. Also, the ticket is a small part of the cost: you have eaten out, paid to park, bought overpriced popcorn and perhaps hired a babysitter. Having spent all that, you do not want the evening to be a write-off, so a cheap ticket for a bad film saves almost nothing.

“Prices contain signals. They're not just an obstacle. They're also a signal of seller confidence.”

The point: When incidental costs dominate, buyers shun cheaper options because the risk is a wasted occasion, not a wasted ticket.

Sources (1)

Why we buy presents people feel guilty buying for themselves

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Thaler's insight is that every purchase has acquisition value, the worth of owning the thing, and transaction utility, how buying it feels. Once you see they differ, much marketing makes sense. You own sale shoes you never wear because buying them felt great. Conversely, expensive perfume or an iPad is lovely to own but feels guilty to buy, which is why such things dominate Christmas lists and free gifts. Some great products fail not because of their value but because people cannot find a way to feel okay buying them.

“They haven't found a way to feel okay about buying it.”

The point: Marketing can create value by fixing how a purchase feels, separately from what is purchased.

Sources (1)

Worried about the weekly shop in a 1.7 million pound house

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Rory recalls a caller genuinely worried that his weekly shop had risen by 12 or 15 pounds, while living in a mortgage-free house worth 1.7 million. You can choose to be cash poor in a huge house, or sell and be cash rich in a slightly smaller one. By exempting homes from capital gains and giving inheritance perks, Britain has encouraged people to put a disproportionate share of wealth into an illiquid asset to which they are inordinately sentimentally attached. It is not a great form of saving.

“We've encouraged people to put their money into an illiquid asset to which they are inordinately attached sentimentally.”

The point: Tax privileges for housing lock wealth into an asset people will not use, creating asset-rich, cash-poor households.

Sources (1)

Yeti raised prices to slow sales, and demand soared

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Rory tells a story he says needs verifying. Yeti's founders, outdoor enthusiasts, wanted coolers tough enough to stand on and found a Chinese manufacturer making superb ones. When that manufacturer was forced out of business, they faced six months without supply and a warehouse of stock. To stop it selling out, they raised prices, and demand rose sharply. Plenty of people did not want a 20-pound water bottle but did want a 45-pound one. Underpricing is doubly catastrophic: you sell less and earn less margin on what you sell.

“There are a load of people who don't want to pay 20 quid for a water bottle, but they do want to pay 45.”

The point: Price signals quality, so raising it can increase demand and underpricing can hurt twice.

Sources (1)

Waiting, time and travel 80

The Uber map

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Uber is not a disruptive technology, Rory says: you could phone for a taxi from about 1903, and the ride is much the same as any cab. What Uber transformed, intentionally or because some software people thought it cute, was booking, waiting and paying. Before, you had no idea when the cab would come and spent 15 minutes in limbo on the pavement, wondering whether they had forgotten you and waving at any likely car. Engineers would respond with faster dispatch algorithms, but what stresses us is uncertainty, not duration. With the map you relax: he is stuck at the lights, you have eight minutes, so you have another pint. The quantity of waiting is unchanged; its quality is transformed. Rory believes better psychology, not lower prices, tripled the taxi market.

“Oh look, it's over there. I've got eight minutes. I'll have another pint.”

The point: Removing uncertainty can transform an experience more cheaply than reducing the wait itself: change the quality of time, not the quantity.

Variants: Some tellings say, possibly apocryphally, that a founder was inspired by the scrolling map in Bond's Aston Martin in Goldfinger. Others add the peak-end rule (Uber changed the start and the end, where you just walk away, not the ride) or the relief of knowing whether this car is yours or an escaped serial killer.

Sources (32)

Give the HS2 brief to Disney, not engineers

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HS2's brief went to engineering firms, who defined the London to Manchester journey by speed, time, distance and capacity, because those are numbers. Rory asks what would have happened had it gone to Disney. They would say it was the wrong question and ask instead: how do we make the journey so enjoyable that people feel stupid going by car? The answers would be many: free drinks, wifi, fine wines and Belgian chocolates, a family carriage with a ball pit. Such open questions have no single right answer and need subjective judgement, which bureaucrats fear, so they pretend the problem is a school maths question. Meanwhile cutting a pleasant hour and ten to 50 minutes costs a fortune, forces straight track through national parks and saves time passengers barely notice.

“How do we make the train journey between London and Manchester so enjoyable that people feel stupid going by car?”

The point: Framing a problem as a single-answer optimisation hides better, more human solutions; reframe the brief around experience before engineering for speed.

Variants: Often paired with the jibe about spending £120 billion on speed but not £30,000 on tables. Other tellings note that few people need central London to central Manchester fast, since many board at Stockport, or that millions of Brits pay to visit Orlando in August, basically a swamp, so Disney can clearly do it.

Sources (23)

Supermodels serving Château Pétrus on the Eurostar

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Britain spent about £6 billion on new track to cut roughly 35 minutes off the London to Paris Eurostar. Yet people were already deserting planes for the slower train: you plant yourself at a big table for three hours of reading or work and arrive in central Paris, without the hour of faff at each end of a flight. Planes will always be faster, so the train should compete on quality of time, not quantity. For a tiny fraction of the cost you could have put in wifi. Or, more outrageously, spend a billion hiring the world's top supermodels to walk the train serving free Château Pétrus, keep five billion in change, and people would ask for the trains to be slowed down. Engineers define problems in terms engineering can solve.

“People would ask for the trains to be slowed down.”

The point: Define the real goal before optimising the obvious metric: making time better can beat making it shorter, at a fraction of the cost.

Variants: First told at TED Global around 2009. Later versions transplant it to HS2 (£1bn on supermodels instead of £60bn on speed, saving 59 billion), and Rory notes that wifi, which he costed at about £50 million, took another ten years. He sometimes adds that nobody boasts about how fast their cruise ship is.

Sources (18)

Tube dot-matrix boards beat faster trains

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The single thing London Transport did that most improved passenger satisfaction per pound spent was not faster or more frequent trains but dot-matrix displays on the platform saying when the next train comes. We are happier waiting nine minutes knowing it will be nine minutes than waiting four or five in a state of not knowing. If the board says the train is 15 minutes away we are not that bothered; if it just says 'delayed' we go frantic. Rory calls the departure board perhaps the biggest psychological hack: there are far quicker big wins in changing people's psychological state than in engineering investment, and it is cheap compared with fixing an engine.

“We'd rather wait nine minutes knowing it's nine minutes than wait five minutes in a state of uncertainty.”

The point: Cheap information that removes uncertainty can deliver more satisfaction than costly engineering that shortens the wait.

Variants: Some tellings fold in Disney's 'five minutes to go' queue signs and the other psychological factors in queuing that are not duration, the worst being a faster queue alongside yours. One notes that trains have also got better at announcing why they have stopped in the middle of nowhere.

Sources (14)

The paceometer, minutes per ten miles

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We show speed as distance per time, which is arbitrary. Behavioural scientist Eyal Peer proposed a 'paceometer' showing the minutes it takes to cover ten miles instead. Nassim Taleb called it 'mathematically trivial, but completely non-intuitive'. Over ten miles, going from 10 to 20 mph saves half an hour, 20 to 30 saves ten minutes more, 30 to 40 about five, and 70 to 80 roughly a minute. So the late driver who pushes dangerously hard for eight minutes finds the satnav arrival time has improved by one, while braking distance, fuel use and fatality risk rise steeply. Going quite fast is sensible; going really fast is an idiot's game. Rory shows it in every talk because he thinks it could save a life, and says that if anyone had seen a paceometer, nobody would have made HS2 go that fast.

“Going fast is quite a good idea. Going very fast is an idiot's game.”

The point: Re-expressing the same data in the units people actually care about, time saved rather than speed, exposes diminishing returns the usual framing hides and can change behaviour.

Variants: The inventor is given as Eyal Peer of the Hebrew University, 'two Israeli behavioural scientists' or 'two Cambridge behavioural scientists', and the scale sometimes appears as an inner ring on the speedometer. Some tellings end with the bicycle (walking to cycling saves more time than cycling to driving) or with miles per gallon misleading in the same way.

Sources (11)

Never just write 'delayed' on the departure board

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Rory calls it perhaps the most valuable advice he has given in 30 years of marketing. He told British Airways that when a flight is delayed, the first thing to do, before repairing the plane, is put an estimate of the delay on the departure board. 'Delayed 80 minutes' is a minor annoyance: you phone ahead, find a lounge, a restaurant or wifi, go shopping or get the laptop out; at Geneva he got a haircut. The bare word 'delayed' drives people insane, because it gives bad news with no worst case and not enough information to react sensibly. If you do not know how long, make up a number, even a slightly pessimistic one, but never show 'delayed' on its own. It is the same insight as the Uber map: knowing lets you plan, not knowing drives you mad.

“The single word 'delayed', you might as well just replace it with 'be miserable'.”

The point: Uncertainty, not duration, is what makes waiting unbearable, so a bounded estimate, even a pessimistic one, is worth more than a faster fix.

Variants: The figure on the board varies (47, 60, 67, 80, 90 or 120 minutes). One telling links it to David Rock's SCARF model, another to the control heuristic and the Ellsberg paradox.

Sources (7)

Car hire should meet you at arrivals

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Book a £60 taxi from Gatwick and the driver meets you at arrivals with your name on a sign and pushes your trolley. Rent a car for £600 a week and you queue at a desk while someone types War and Peace, then drag your luggage to bay 307 across a baking, unnavigable car park, and there is not even a laminated sheet explaining the fuel cap or handbrake, so 300 miles later you are at a Spanish petrol station watching YouTube. Once you are driving, every rental is the same; it is the first bit, which nobody measures, that is terrible. Rory would happily pay £50 to £100 to be met with the keys, walked to the car and shown how it works. Reverse-benchmark against the taxi and you find the bit everyone else has neglected.

“Your taxi driver for 50 quid meets you at arrivals and carries your bag. For an 800 pound car rental, you have to find the car yourself.”

The point: Reverse-benchmark a service against a cheaper one that handles the neglected moment well; the unmeasured first minutes often decide the whole experience.

Variants: Prices shift between tellings (taxi £50 to $100, rental £300 to £800). He blames investors who cannot imagine a business that employs humans to do something useful, and his workaround is to take a taxi to the hotel and rent downtown next day. One telling frames it through TRIZ, another through Steve Jobs asking how a computer feels to use.

Sources (6)

Make standing on trains a choice, not a compromise

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Rory asked a question so stupid nobody in rail had asked it in 50 years: why do people dislike standing on trains? Perhaps not tiredness. A seat is a lottery win: table, cup holder, plug, window, somewhere for your bag. Standing, you lose a hand to a pole, fear for your bag, cannot use your phone and spend your effort not falling over. So redesign carriages: seats facing inward down the middle, and along the windows leaning posts or bum rests with a small laptop ledge, USB chargers, a bag hook and a view. On a 25 to 40 minute commute, after sitting at a desk all day, many might choose to stand. Once people can tell themselves it was a choice, not a compromise, they stop being angry.

“If you get a seat you get everything. If you're standing in the middle of a train you get precisely four-fifths of bugger all.”

The point: Give the worse option its own upsides so people can frame it as a choice rather than a loss, and ask the childish question that reveals why they really mind.

Variants: Sometimes told as a 'five whys' lesson (nobody asks for fear of looking like a tosser, which is exactly why you must), sometimes as adaptive preference formation or Aesop's fox and the grapes. In other tellings he admits he has no answer yet: the point is that nobody has asked.

Sources (6)

Commuting is not commutative, seats for season-ticket holders

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Rail models of overcrowding treat a hundred people standing one journey in ten as the same problem as ten people standing every day. Psychologically they are not. Standing occasionally is a bit of a bummer, easily shrugged off; the annual season-ticket holder who stands every day is livid and rightly feels robbed. A train company trying to cut overcrowding on average never will, short of insane surplus capacity. But once you accept that commuting is not commutative, the fix is cheap: run two extra peak trains reserved for season-ticket holders, let them sit in first class when there is no seat, or give them twenty first-class upgrades a year. Solve it for the worst affected and you have basically solved the problem, without spending billions on longer trains, platforms and signalling.

“Ninety percent of the psychological problem can be solved at five percent of the cost.”

The point: Disaggregate a problem to individual experience: targeting the few who suffer repeatedly removes most of the misery at a fraction of the cost of improving the average.

Variants: Rory sometimes frames it as non-ergodic thinking (minimise annoyance, not standing) and contrasts restaurants, which give regulars better seats, with railways, which look only at aggregates because the person with the spreadsheet always wins the argument.

Sources (5)

Every airport became a mall, so London City won

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As a boy, Rory heard rich schoolmates rave about Schiphol's shops and restaurants, then Changi with its waterfall, then Dubai. Everyone optimised for turning airports into shopping centres, until every airport in the world was a mall with some planes attached. Then people started saying: 'Have you been to London City Airport? It's brilliant. There's hardly anything there.' A handful of shops, and you are on the plane in five or ten minutes; you do not have to walk through Bluewater to reach a plane. When companies benchmark against each other and copy the same thing, they create an opening for the opposite. For a short hop, Rory will fly via London City and drive at the other end rather than navigate a giant airport.

“Have you been to London City Airport? It's brilliant. There's hardly anything there.”

The point: When a whole category converges on the same winning move, doing the opposite becomes the differentiator: every trend creates a counter-trend.

Variants: He sometimes caps it with James Goldsmith's line that when a man marries his mistress he creates an immediate job vacancy, or frames it as being individually right but collectively wrong. One telling adds a Frankfurt sex shop run by a 'Dr Müller'.

Sources (5)

The Heathrow pod, 'But I wanted to ride'

storytold in 5

At Heathrow Terminal 5 you can park about a mile away and ride a small driverless electric pod along its own track to the terminal. The pod car park charges 80 to 90 per cent of short-stay prices, where a bus-linked one would charge a third, because people love the pod. When an Ogilvy creative director in his sixties was told the pod park was full and he had been upgraded free to short stay, he looked childishly downcast: 'But I wanted to ride.' Procurement would compare pods with a shuttle bus on capacity and speed and reject them, because enjoyment is in no transport planner's matrix. Yet pods could let car parks sit miles from stations, freeing city-centre land. Nobody accepts park-and-ride buses, but with a pod all bets are off.

“Nobody would accept a park and ride bus service, but when it's a pod, all bets are off.”

The point: Delight is real, monetisable value that like-for-like procurement metrics leave out, so willingness to pay for enjoyment should count when judging infrastructure.

Variants: In one telling Rory simply advises anyone landing at T5 with half an hour to spare to ride the free pod to the car park and back. Another adds that the first iPhone's battery was awful too, yet people found workarounds.

Sources (5)

London buses only tell you where they end

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Rory loves London buses but cannot understand them. The front shows a route number, meaningless unless you are Rain Man, and the final destination, usually an outer-London depot such as Clapton Pond, which he has never visited and cannot imagine needing to unless disposing of a corpse. What he wants to know is whether it goes via Charing Cross, Victoria, Blackfriars or London Bridge, any station that gets him home to Kent. On that, the bus is resolutely silent, showing only what a bus person thinks important. Add 'via' and he would use buses five times as often. Finance measures only the business already being done, never the revenue lost to badly presented information, so buses serve commuters who memorise routes and are nearly useless for ad hoc trips.

“Never been to Clapton Pond, can't envisage needing to go there unless I want to dispose of a corpse.”

The point: Information designed from the operator's viewpoint suppresses demand invisibly, because the customers it loses never show up in the data.

Variants: The depot is Clapton Pond, Clapham Pond or Honor Oak Park. One telling claims better signposting and messaging like this could add 2% to GDP.

Sources (4)

Change at Lille, not Paris

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Travel websites rank train routes by speed alone. Going from London to Bordeaux or the south of France, almost every algorithm sends you via Paris, which means a taxi across the city between stations with all your luggage. Rory recommends changing at Lille instead. It takes 40 to 45 minutes longer, with a wait and a slightly slower train, but only a 50 to 100-yard walk, and you can cross to a bar opposite the station with 27 northern French and Belgian beers on tap and a Welsh rarebit topped with an egg and served with chips. It is more or less impossible to get a railway website to offer it, because it arrives about 30 minutes later. Seat 61, a site run by a railway enthusiast, gives the human advice instead.

“The algorithm assumes that time minimisation is the only thing you care about.”

The point: Systems optimised for a single metric like speed hide the options people would actually prefer, such as ease, comfort and pleasure.

Variants: One telling widens it: forcing everyone through the same algorithmic questions in the same order makes markets stupider, so he suggests randomising the Tube map every couple of years.

Sources (3)

Disney's queue markers, what makes a queue annoying

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A measurebator obsesses over how long people queue at a check-in desk. Duration is not irrelevant, but, as David Maister's article shows, most of what makes a queue bearable or maddening is something else. A queue that keeps moving is less frustrating than one that stalls. If the end is out of sight, people are far more stressed, which is why a tunnel-like JFK terminal is such a pain. And to make a queue truly infuriating, put a faster-moving one alongside it. Disney understands this and puts markers along its queues: 'five minutes to go, four minutes to go'. These things are cheaper to change than queuing time, yet ignored because they have no number.

“If you really want to annoy people queuing, you have another queue alongside theirs which is moving faster.”

The point: Movement, visibility of the end, fairness and markers of progress shape the experience of waiting more cheaply than cutting its duration.

Variants: One telling ends with Rory wondering whether paying actors to stand in a stationary queue might ease airport check-in.

Sources (3)

Late because a pensioner has no hot water

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Working on British Gas, Rory found customers furious when engineers rang to say they would be three hours late. Often the reason was an emergency call-out to an elderly person or a family with a young baby without heating or hot water, but the engineers just said they were late. A home care provider had the same problem with carers. Rory told them simply to give the reason. One person in a hundred will not care, but say 'we're two hours late because an elderly lady two miles away has no hot water and we must prioritise her', and most customers worth having will say fair enough; they would not want it otherwise. Train companies learned the same: explaining why you are stationary in a field helps, even if it is just a red light.

“Simply by presenting exactly the same objective reality in a different way you can achieve a kind of magic.”

The point: A good reason turns an irritating delay into something customers accept and even approve of, without changing the delay at all.

Variants: One telling widens it to trains in general: once they are reasonably punctual, what bothers passengers is not lateness but being left uninformed, as Uber's map showed.

Sources (3)

Live chat is slower and customers love it

exampletold in 3

One of the great mysteries of customer service: dealing with a company like Vodafone through live chat objectively takes two, three or even four times longer than a phone call, partly because the agent is handling three or four people at once and leaning on cut and paste. Measured on objective terms it looks a terrible way to handle complaints. Yet customers love it: satisfaction and warmth towards the brand go through the roof. Rory spent an hour sorting out his daughter's mobile phone by chat and at no point got irritated. He does not fully understand why, but it shows how to play the psychology game with time: it is not the quantity of time, it is the quality.

“It's not the quantity of time it's the quality.”

The point: Objective efficiency metrics miss what customers value: a slower channel can feel better if the time spent in it feels different.

Variants: The slowdown is put at twice, three times or four times a phone call.

Sources (3)

Pizza in an hour, not thirty minutes

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Everyone in pizza delivery assumed customers want it as fast as possible. Rory asked whether people are really that impatient or are made to feel weird if they are not: the app defaults to ASAP, the website to 30 minutes, and phone staff never ask when you would like it. That is context, not preference. His team tested defaulting to 45 minutes or an hour, and asking for a time of day rather than a duration: 8:15, 8:20, 8:30? Many people then think: actually I'd like it in an hour, I could have a shower first. Pushing the default out had no downward effect on sales, let one bike carry two or three deliveries, and customer satisfaction rose by 50 per cent, for reasons nobody really knows.

“Don't ask me to explain this: customer satisfaction went up 50%.”

The point: Defaults and the units of a question create the preferences they appear to measure; changing them can cut costs and even raise satisfaction.

Variants: One telling adds that a later norm would also cut carbon emissions, if that is what you care about.

Sources (3)

The A&E second waiting room

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Rory's cousin, an A&E consultant in Lancashire, found something odd. A triage nurse sees a patient quickly and says they need a specialist and will wait two and a half hours. If the patient is then shown into a different waiting room, they sit there happily. Send them back to the original room and they get furious, often within half an hour. The wait is identical. The brain does not come with a stopwatch: moving rooms reads as progress and an upgrade, returning reads as a rebuff. You can shorten a wait or reduce its frustration, and the second is easier, cheaper and more effective than hiring more doctors. The NHS, obsessed with waiting times, measures the less important thing.

“The human brain doesn't come equipped with a stopwatch.”

The point: A visible sign of progress changes how a wait feels far more than its length, so reduce frustration rather than duration.

Variants: One telling adds KPMG: after a marble reception full of couriers, visitors move to a mezzanine with espresso, sofas and wifi, and Rory was kept half an hour without caring. Another links it to bus-stop countdown signs.

Sources (3)

The cheap, slow Waterloo trains the website hides

exampletold in 3

Rail algorithms assume every traveller wants to save time. So Rory's tip: going to Exeter, Plymouth or Cornwall, search from Waterloo rather than Paddington and add 'via Salisbury'. The South Western trains to Exeter St Davids take about an hour longer, so they never feature on the website, but they are absurdly cheap and highly scenic. When his daughter's group came back from the Boardmasters festival on rammed trains, he got her and four friends home first class from Exeter for about 35 each. Going to Bath, he found direct Waterloo trains where first class cost about a quarter of second class from Paddington, invisible because the algorithm assumed you cared about 20 minutes. It is an alignment problem.

“The algorithm doesn't really know what you're trying to do.”

The point: Algorithms that treat speed as the only neutral goal hide options that are cheaper, more comfortable or more pleasant, which many people would prefer.

Variants: The destination is Exeter in two tellings and Bath in one. One adds that Google Maps reportedly refuses to offer scenic routes because they might be biased, as if the shortest time were objective even when it routes you somewhere dangerous.

Sources (3)

Call customers back instead of keeping them on hold

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Rory urges anyone with a call centre to test this: never make people wait more than a couple of minutes; offer a call-back and ring them within a couple of hours. The content of the call may be identical, but a caller left waiting feels like a supplicant, while one who is called back feels valued and flattered, because 'they called me'. He suspects cross-selling, upselling and retention would be several times higher, but admits he has no proof; nobody tests it because call centres are run by cost-saving procurement people focused on throughput. When he suggested it in Israel the audience tuned out: there it is already law that after 20 seconds on hold you must offer a call-back within two hours or be fined.

“If you make people wait, they feel like a supplicant. If you call people back, they feel like a valued customer.”

The point: Who waits for whom changes the customer's status and mood, so the same conversation can feel like begging or like being valued.

Sources (2)

Concorde, all engineers, no marketers

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Making a Radio 4 programme on Concorde, Rory noted it was all engineers and no marketers, and they missed a human problem. Westbound it was brilliant: leave London at 9am and land in New York at about 8am, before breakfast, faster than the Earth rotates. The return was a crock. The best way to fly east is asleep, overnight from JFK, arriving next morning. Instead you stayed an extra night in a New York hotel, flew at 9am, spent a whole working day in the air and landed at 6pm. Nor did anyone fly London to New York often enough for it to change their life: the heaviest user saved, by Rory's reckoning, about five minutes a day over his working life. He could have just moved a bit closer to the office.

“Unless you have a marketer in the room, you're at risk of doing things which are seriously dumb.”

The point: Engineering metrics like speed are worthless when they ignore how people actually experience time, and rare time savings are worth little.

Variants: In one telling it is psychologists, not marketers, who would have closed Concorde.

Sources (2)

Don't offer one-hour slots, send a text

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Everyone says they want one-hour slots for the broadband engineer or a home visit, which is hard and costly to provide because engineers do not know how long earlier jobs will take. Customers complain about taking a whole day off work, but people love a day off work. What they hate is uncertainty: a morning slot is house arrest, unable to shower or fetch milk because the engineer will arrive the moment you do. So offer a morning slot and text customers 45 minutes or an hour before you arrive. People are just as happy, at a fraction of the cost.

“You'll achieve 90% of the emotional gains at 1% of the cost.”

The point: The stated complaint often masks the real one; removing uncertainty is far cheaper than meeting the literal demand.

Sources (2)

Eurostar should be less like an aeroplane

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The point of Eurostar is not to be fast but to compete with airlines at what they are terrible at. If you want to get to Paris really fast, we have already invented that: it is called the aeroplane. Yet Eurostar seems keen to import the most annoying parts of air travel. You are not allowed to board early and settle at your table; you are corralled into lounges and through X-rays and let on only in the last few minutes. At Euston, boards say the train is being prepared and withhold the platform, as if it were a cake. What people care about and what operators measure barely align. The way to compete is to make the train less and less like an aeroplane.

“If you want to get to Paris really, really fast, we've already invented that. It's called the aeroplane.”

The point: Compete where the rival is weak rather than imitating it, and do not throw away your natural advantages by copying a competitor's worst habits.

Sources (2)

Faster transport does not save time

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For decades UK transport models assumed people want faster transport to save time, treating anyone in transit as economically inert. David Metz, chief scientific adviser at the Department for Transport, spent a lifetime studying what people actually did with faster transport. Since roughly Roman times, most people have been happy to spend about an hour to 70 minutes a day travelling, whether on foot, by mule, bicycle or car. Give them faster transport and they do not save time; they travel further, widening where they can work and live. So the value of transport investment lies not in time saved but in journeys that now happen that otherwise would not, and the new exchanges they enable. The time-saving assumption also starved slow but comfortable, dependable transport of investment.

“The stupid model is getting people who are already going somewhere to get there faster.”

The point: A wrong 'why' misdirects billions: people spend a roughly fixed time travelling, so faster transport buys reach, not saved time, and seeing that opens different solutions.

Variants: One telling has Rory and Pete Dyson citing Metz's book on travelling smarter rather than faster, and dismissing as fatuous the claim that new roads just encourage traffic.

Sources (2)

London creates non-drivers

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If you rarely drive, driving is stressful, not enjoyable. Rory is on tenterhooks for the first few hours in an unfamiliar hire car, yet driving his own car daily is joyous: it becomes System 1, a flow state. In London driving is horrible, so people rarely drive, so when they do, in an unfamiliar hire car through appalling central London traffic, the first 40 minutes are miserable and they disparage cars unfairly: a feedback loop that creates non-drivers. That is why Gen Z Londoners hate cars: they cannot drive. In Devon you will not find 18-year-olds who hate cars, because their whole social and sexual life depends on wheels. Yet driving a familiar car through London between 1am and 3am is one of the greatest experiences you can have.

“Young people hate cars because they can't drive.”

The point: Familiarity turns a stressful activity into a pleasure, so how often people do something shapes whether they like it, and a stated dislike may only reflect inexperience.

Sources (2)

Pay £5 to catch the earlier train

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Rory books cheap advance tickets to Manchester but is so terrified of missing his train, and paying a fortune for a new one, that he reaches Euston 45 minutes early, sits in Burger King and watches two earlier Manchester trains leave without him. An app that let him say 'I'm at the station' and offered seat 30 in Coach G on the next train for £5 would cut his journey by 40 minutes and add capacity, because seats are perishable and the later one can be resold, as easyJet does with earlier flights. He told the Department for Transport he could deliver HS2's time saving in six weeks for £200,000. Nobody believes small things can have big effects.

“You don't need to spend 40 billion.”

The point: Looking at a problem from the customer's side can deliver megaproject-scale time and capacity gains through cheap yield management.

Variants: The price of the fix is £200,000 in one telling and £50,000 in the other, where it answers the claim that HS2 was really about capacity.

Sources (2)

Rather keep moving than sit in stop-go traffic

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Rory's satnav refuses to take the A13 and the Queen Elizabeth Bridge to Kent, preferring the Blackwall Tunnel, partly from an aversion to the bridge toll. But he would rather keep moving for 45 minutes than sit in stop-go traffic for 35, and the satnav does not understand that concept. It weighs speed, distance and efficiency, not steady motion, scenery or a KFC on the way. So he treats it as a test case for AI: sometimes creative, but not to be followed blindly, and he often checks the next two or three routes. It optimises for the fastest journey, not the most enjoyable one.

“I would rather keep moving for 45 minutes than be in stop-go traffic for 35 minutes.”

The point: The quality of a journey matters as well as its duration, and optimisers that ignore it give the wrong answer.

Variants: One version puts it as driving at a constant 30 mph for seven minutes longer, and adds a friend whose wrong prompt sent him to Cambridge, Gloucestershire.

Sources (2)

The bicycle saved more time than Concorde

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Looking at the other end of the paceometer, Rory realised the bicycle may be the most important transport invention of the last 200 years. A round trip to town took about four and a half hours on foot and little more than an hour by bike, saving over three hours. In 1979, upgrading from a 747 to Concorde between London and New York saved about three and a half hours: less than your great-grandfather saved in the first 20 miles he cycled instead of walking. Some evolutionary biologists even think the bicycle changed the human gene pool, because for the first time people could be bothered to court someone who lived ten miles away.

“20 miles of riding a bike versus walking saves more time than Concorde to New York versus a 747.”

The point: Speed gains are worth most at the slow end, so the biggest value often lies in improving the slowest option, not the fastest.

Variants: The round trip is given as 10 or 20 miles, and the bike time as an hour ten or an hour twenty.

Sources (2)

The most important rail technology is the table

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Rory asked a large railway company what the most important rail technology of the last 20 years was. They talked about buffers and signalling. He said that was rubbish: it was the laptop and the tablet, which let you be productive and entertained on a train in a way that was impossible before. The second most important is the table. Rail is the only form of transport where you can sit with a laptop, a coffee, a newspaper and a pen and work as well as in the office, better even, since nobody comes to ask you dumb questions. Yet punctuality is pursued with linear obsession because it yields neat statistics, so money goes on making trains arrive two minutes earlier while someone else rips out the tables.

“The whole point of rail travel is that there's a table.”

The point: Making travel time useful can matter more than making it shorter, and metrics that count only the measurable destroy what passengers actually value.

Sources (2)

The research that said people enjoy commuting

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A psychologist Rory worked with at Transport for London produced robust research showing many people quite enjoy their commute, especially the journey home, men slightly more than women. Rory explains that men have a standby mode like a Sky box, which is why the sport with the biggest gender gap is coarse fishing, basically staring with equipment. Economists also note people live slightly further from work than is optimal, to create a decompression buffer. When the finding was presented, the transport modellers said it must never be revealed. Every model justifying investment assumes time in transit is a disutility, and evidence that it might be pleasurable would mess up the maths. Decisions get taken for the tractability of the model, not for human benefit.

“If you introduce evidence that suggests that time spent in transit may be pleasurable it will mess up our maths.”

The point: Institutions suppress inconvenient human evidence to protect models that make decisions look objective, and psychology is the first thing stripped out for certainty.

Variants: One telling cites Dan Davies's The Unaccountability Machine: models let people avoid blame.

Sources (2)

The stress of a queue is the people behind you

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The objective measure of a queue is the time spent in it, but much of its stress, which nobody knows consciously, comes from the people behind you watching and judging. McDonald's and KFC found that the longer the queue, the more customers fluffed their orders, though after six or eight minutes to rehearse the menu they should be word perfect: a kind of stage fright. Rory discovered it by accident boarding the Eurostar at Ebbsfleet. Being last through security was completely unstressful; what makes it stressful is feeling that others are thinking 'he's forgotten to take his belt off'.

“Nobody would consciously ever say that what I hate about a queue is the people behind me.”

The point: Hidden social pressure, not the wait itself, can be the real source of discomfort and error, and nobody will name it when asked.

Variants: One telling lists it alongside other queue factors: moving queues upset people less than stalled ones, and a faster queue alongside or an end out of sight makes things worse.

Sources (2)

'Last time the nuts weren't very nice'

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Rory told the British Airways board that if he didn't work in advertising he'd work for an airline. Why? Because he loves the mix of hardcore logistics, getting a replacement fan blade from Dubai to Kuala Lumpur by 3am, with utterly irrational passengers who, despite the genius of putting them in a pressurised metal tube at 35,000 feet, say 'I don't think I'll fly with that airline, last time the nuts weren't very nice.' The board replied: 'Really? That's what we hate about it. That's the thing that drives us crazy.'

“I don't think I'll fly with that airline, last time I went the nuts weren't very nice.”

The point: Customers judge complex services by trivial cues, which delights psychologists and infuriates engineers.

Sources (1)

Adaptive cruise control, outsource your driving to a sane stranger

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Adaptive cruise control, available on nearly all electric cars though unrelated to them, delivers psychologically about 70 per cent of the benefit of fully autonomous driving on long motorway trips, Rory argues. You find someone sane ahead, not a tailgater or a nutter, set a reasonable distance and, in a slightly stalkerish way, follow them 50 yards behind for the next 30 miles. In effect you outsource your driving to them.

“You find someone sane and you outsource your driving to them.”

The point: A modest technology can capture most of the psychological benefit of an ambitious one.

Sources (1)

An airline that owns no planes

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Uber owns no cars and Airbnb no houses, so Rory imagines an airline that owns no planes. Buy a country house near Stansted. You park there and check your luggage, and it's total opulence, like the party in The Wolf of Wall Street. When ready, you're driven to the plane in a blacked-out S-Class, Dr Evil's natural conveyance, and walk onto a £37 Ryanair flight, having paid £250 for the lounge. The flight is only an hour, so don't compete on the plane: there's a limit to what's legal at 30,000 feet. Make the airport experience amazing.

“The bit on the plane is only an hour, it doesn't really matter if it's Ryanair.”

The point: Compete on the part of the experience you can transform, and commoditise the part you can't.

Sources (1)

Buying a flat in Deal because Londoners hate driving the wrong way

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Rory bought a flat in Deal on behavioural science principles. Dan Ariely observed that people disproportionately hate travelling against the direction of their ultimate destination: driving west to Heathrow to fly to Paris feels worse than heading east. Since nearly all roads out of London run north, west or south-west, prosperous Londoners drift down the A3 to Dorset and Devon. Reaching the east Kent coast needs a dog-leg on the M25 against innate instinct, so the area is under-exploited. Sure enough, east Kent is the only place in southern England where average property prices are under five times average earnings.

“It was the obvious place to exploit behavioural biases by actually buying undervalued property.”

The point: A small psychological aversion in how people travel can leave a whole region systematically undervalued, which is an opportunity for anyone who notices it.

Sources (1)

Car or train, the decision made from the driver's seat

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Most rail journeys begin with a drive, so people usually choose between car and train while already sitting in the car. Rory asks you to imagine the reverse: living beside a station with parking three stops away. Once aboard the train, nobody gets off to fetch the car. The decision is lopsided. In the car the radio is on and it is warm; the train means parking worries, rain, ticket machines, barriers and timetables, and with children and luggage already loaded it is settled. If booking and pricing tools moved the choice a day earlier, perhaps with a reserved parking space, people would weigh the options far more fairly.

The point: Where and when a decision is made shapes its outcome, so moving the moment of choice can change behaviour more than improving the product.

Sources (1)

Changi Airport says 'retimed', not 'delayed'

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Someone at Singapore's Changi Airport saw a flight leaving 30 minutes late listed as 'retimed' rather than 'delayed'. One reading is marketing nonsense dodging blame. Rory offers a more benign one: perhaps 20 per cent of passengers are scared of flying. 'Retimed' sounds logistical, slots and schedules, a conscious decision. 'Delayed' makes a nervous flyer imagine a missing aileron or an engine about to catch fire and spiral into worst-case thinking. So 'retimed' may be a genuinely kind choice of word.

“Retimed might be a really nice thing to say.”

The point: Word choice in operational messages can calm or inflame the anxious minority.

Sources (1)

Countdown traffic lights, red good, green bad

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In Korea, red traffic lights show a countdown, and experiments show it reduces the accident rate, because road rage and impatience fall when drivers can see how long they must wait. In China, not quite grasping the principle, they applied countdowns to green lights too, which is not a great idea: 200 yards away you see five seconds left and floor it. The Koreans assiduously tested both. Accidents fall with countdowns on red lights and rise with them on green.

“The accident rate goes down when you apply this to red traffic lights; it goes up when you apply it to green traffic lights.”

The point: Psychological interventions work through a specific mechanism, so they must be understood and tested, not copied blindly.

Sources (1)

Crossrail as New Orleans paddle steamers

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Offering a tongue-in-cheek plan to any interested Conservative government, Rory proposes scrapping Crossrail and running New Orleans-style paddle boats along the waterways instead. When objectors say that would be far slower, he replies that nineteenth-century Louisiana already solved that: provide nudity and gambling on board and nobody minds how long the trip takes.

The point: Making travel time enjoyable removes the demand for speed.

Sources (1)

Deliberately not learning the train times

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Rory raises the philosophical question of when it is best not to know something. From Otford, with one train every 30 minutes, he has to know the timetable. From Sevenoaks he makes an active effort not to memorise it, so he just drives to the station and catches whatever train turns up. If he knows a train leaves at 9:34 and it is 9:28, he gets stressed.

“If I know there's a train leaving at 9:34 and it's 9:28, I get stressy.”

The point: Where service is frequent, ignorance of precise times removes needless anxiety.

Sources (1)

Did FedEx customers want speed or certainty?

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Rory asks whether FedEx customers really wanted their parcel to arrive overnight, or just wanted to know where it was. Did they need it for a deadline, or did they want it fast to shorten the period of anxiety and uncertainty? The same question applies to the Uber map: do people want the car sooner because they are in a hurry, or because they hate waiting for a car whose location, and even existence, is uncertain? Whole billion-dollar businesses rest on intuitive discoveries of such unspoken dispositions.

“Did people really want the parcel to get there overnight, or did they just want to know where it was?”

The point: Demand for speed is often really demand for certainty, which is cheaper to supply.

Sources (1)

Dishoom serves chai to the queue

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If you have to queue for Dishoom, staff come out and serve chai to the people waiting. Rory calls it ingenious: the act of generosity triggers reciprocity, so you are much less likely to give up and leave the queue.

“That act of generosity inspires reciprocation, so you're much less likely to quit the queue.”

The point: A small gift during a wait creates obligation and goodwill that keep customers waiting.

Sources (1)

Driverless cars come from the place with the worst traffic

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Happiness research measuring well-being minute by minute shows how much people enjoy driving, which Rory thinks the driverless car movement has not fully clocked: we like a feeling of control. And where is that movement centred? Silicon Valley, which has some of the worst traffic in the world. If you live on the west coast of Scotland or drive the A9, where empty roads are a sheer delight, the benefit of a driverless car is not quite the same.

“We like a feeling of control.”

The point: Innovators generalise from their own context and miss what others value.

Sources (1)

Engineers pretending they're not in entertainment

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Rory jokes that the sad but inescapable truth about transportation is that it is a business of engineers desperately trying to pretend they are not in the entertainment industry. All the mental energy goes into the quantifiable logistics, but passengers judge the experience emotionally.

“Transportation is effectively a business of engineers who are desperately trying to pretend they're not in the entertainment industry.”

The point: Transport is experienced as entertainment or misery, not as engineering, so experience design matters as much as logistics.

Sources (1)

Fictitious progress bars and the chimp at the termite mound

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The hosts suspect early Uber cars on the map, and pizza "in the oven" updates, were not strictly real. Rory says he would probably defend in court Domino's creating somewhat fictitious delivery stages, because it simply makes people feel better. McDonald's order screens only say "in preparation" then "ready"; they could show forward movement, such as "on the tray". It is about dopamine and effort and reward: a chimp hacking at a termite mound keeps going contentedly if it finds the odd termite, whereas long effort with no visible reward feels very different.

“I probably would defend in court the practice of Domino's creating somewhat fictitious delivery cycles.”

The point: Visible signs of progress make waiting tolerable, even when they are approximate.

Sources (1)

Fix Eurostar crowding with a tenner off at Ebbsfleet

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Eurostar says its hideous, overcrowded St Pancras waiting area is an obstacle to running more services, implying costly building work. Rory proposes a £20,000 fix: a deal with HS1 offering leisure travellers £10 off to board at Ebbsfleet or Ashford, which have huge waiting areas and a cushy lounge. Kent, Essex, Surrey and South East London hold millions who would rather park at Ebbsfleet than travel the wrong way to St Pancras and be held in a pen. Or just let people board earlier.

“There are lots and lots of ways you could solve that problem of overcrowding without making the space bigger.”

The point: Behavioural fixes are cheaper than engineering, though less predictable, which is why they are neglected.

Sources (1)

Free travel when you move, or on your birthday

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The host recalls an idea from Rory's book Transport for Humans: people who move house rarely start using the bus, so new arrivals should get a month of free bus travel to get over the initial hurdles. Rory adds a related example he loves: in Denmark you get free rail travel on your birthday. Both give people a no-risk reason to try a mode of transport they would not otherwise consider.

The point: Free trials timed to moments of change can break habits and add new options to people's repertoire.

Sources (1)

Gail's makes you queue on purpose

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Rory, obsessed with the efficiency of flow systems (he pushes airport X-ray trays to the far end so more people can unpack in parallel), told someone senior at Gail's that their queuing system was broken: they ask what coffee you want at the end, not the beginning. It turns out to be entirely intentional. A queue makes passers-by think 'I must go in there', and it makes you stare at the bread for longer, so you're more likely to buy some.

The point: An apparently inefficient queue can be a deliberate tool for social proof and impulse sales.

Sources (1)

Give Jony Ive the train, like Cunard's cruise pivot

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You can still rescue HS2: give Jony Ive and Marc Newson, who designed the Qantas business seat, perhaps the best airline seat ever, an open brief for the interiors, catering and connectivity: make the journey so amazing people take the train for the train's sake. That was Cunard's brief once jets made the Blue Riband for fastest Atlantic crossing academic. Cunard stopped treating ships as transport and made them destinations in themselves, helping invent cruising. On a cruise you go round in a circle and come back; the ship is as much the destination as the destination.

“Make this journey so amazing that people want to go on the train for the sake of the train, not for the sake of the journey.”

The point: When you can't win on speed, make the journey itself the product.

Sources (1)

Go slower to arrive sooner

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Rory is in a tiny minority who support smart motorways. Their fundamental psychological problem is that it is unbelievably hard to get people to understand that by going slower you can arrive sooner. If slowing down a bit prevents a build-up of dense traffic four miles ahead, you avoid gridlock and, bizarrely, arrive earlier. He does not blame people for struggling with it, since even some traffic-flow experts find it hard to grasp.

“It is unbelievably hard to get people to understand that by going slower you can arrive sooner.”

The point: Counterintuitive system effects need careful explanation, because intuition reliably points the wrong way.

Sources (1)

Hiding the boarding point to stop early queues

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Courtney Moore, head of behavioural science at Dallas Fort Worth airport, noticed that the eight people who queue too early ruin boarding for everyone. Once a queue forms, everyone else joins for fear of missing out, so the last 25 minutes are spent standing like fools rather than sitting with a coffee and a book. DFW's plan is to make it ambiguous where the plane actually boards, so no queue can form in advance and people spend the time doing something enjoyable, presumably going to Chick-fil-A.

“It's not changing the duration, it's changing the quality of time.”

The point: Removing the cue that triggers anxious queuing improves everyone's waiting experience.

Sources (1)

Journeys can be too short as well as too long

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Rory concedes that cutting an eight-hour journey to three is an improvement, but we do not enjoy things linearly. On short-haul flights, after all the grief of getting on the plane, the time spent sitting down is annoyingly short by comparison. Nobody asks such fundamental questions; they pursue the simple linear metric that faster equals better.

“Journeys can be too short as well as too long.”

The point: Human enjoyment is non-linear, so a single metric like speed can mislead you about what improves an experience.

Sources (1)

Label the Circle line 'air-conditioned'

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When Transport for London has a problem, its knee-jerk reaction is to change the infrastructure. Rory says you may only need to change the informational presentation. If too many people use the Central line and too few the Circle line in summer, simply add 'Circle line (air-conditioned)' on signs wherever the two lines intersect, and you will get 10 per cent of people to change their journey.

The point: A small piece of salient information can redistribute demand more cheaply than new capacity.

Sources (1)

Let me pay before you make the coffee

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Coffee shops often do not charge you until the coffee is ready. Rory knows why, people supposedly dislike paying before they receive, but as a result he stands around holding his phone like an idiot while the coffee is made. What he wants is to pay, scan the loyalty card, put his phone away and wait. He suspects the policy made sense with cash but works differently now people pay by phone.

The point: A service convention can outlive the conditions that justified it and become an irritant.

Sources (1)

Met unneeds, trains fined for being two minutes late

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Marketers talk about unmet needs; Rory says it's also worth talking about 'met unneeds'. Train companies obsess about whether a train is two minutes late and get fined on that basis, yet not a single passenger cares if their train is three minutes late: you can't lead your life with that level of anal precision. Whenever a problem involves humans or perception, set aside two or three days to ask: is there a psychological solution, and are we optimising something customers don't care about?

“Not a single passenger on the train gives a damn if their train's three minutes late.”

The point: Businesses waste effort perfecting metrics customers do not value; look for 'met unneeds' to cut.

Sources (1)

Mirrors instead of faster lifts

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A company in the Midwest had complaints that its lifts were too slow. Otis offered to replace the cabling, winding gear, motors and cars for a few million dollars. Just before they spent it, someone suggested putting floor-to-ceiling mirrors between the lift doors on every floor. What people meant by 'the lifts are too slow' was 'I get bored waiting'. Once there were mirrors, the time was filled with grooming or mild voyeurism, and all the complaints stopped.

“Psychological insight is just as valuable as technological advance.”

The point: Change what is in the head rather than physical reality: an innovation can be purely perceptual.

Sources (1)

MySkyStatus, tweeting your flight

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Rory describes an Ogilvy idea for Lufthansa that worked whichever airline you flew. Travellers registered their trip on MySkyStatus, which then posted to Twitter or Facebook as they took off and while they were in the air, and showed a live globe of other tweeting passengers aloft around the world. It was a small complementary good that made flying more enjoyable.

The point: Adding a small, delightful complement to an experience can improve it more than changing the core service.

Sources (1)

NHS waiting times are now judged against pizza delivery

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Our tolerance of uncertainty has been recalibrated. Before the internet we wrote to a company and happily waited four days; now we cannot bear 24 hours without a reply to a complaint email. In the Caribbean you must recalibrate to island time and order every drink an hour before you want it, which works well. Rory thinks we have lost something as well as gained: one problem the NHS faces is that people's expectations of waiting times are now calibrated by pizza delivery.

“People have waiting times now calibrated by pizza delivery.”

The point: Expectations set in one domain change how waits feel in every other.

Sources (1)

Ninety minutes at the airport is useful; 25 minutes is pointless

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Rory leaves for the airport unnecessarily early. His brother argues that if you have never missed a plane, you have spent too much of your life at airports. Rory has two counters. Any time spent uncertain whether you will make the flight is unpleasant and spoils the journey. And while in 1993 all you could do at an airport was read the paper, now an hour and a half in a lounge is useful time to do what you would have done at home, whereas 25 minutes is spent entirely rushing and panicking.

“An hour and a half in an airport lounge is useful. 25 minutes in an airport lounge is pointless.”

The point: Time is only wasted if it cannot be used; buffers that remove anxiety and allow work are worth it.

Sources (1)

No aircraft is as fast as a sleeper train

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If you want to make a train journey ten times shorter and are happy to use human psychology, the solution already exists: it is called a sleeper train. The journey may take nine hours, but you are asleep for eight of them, so in many respects no aircraft is as fast.

“There is no aircraft that's as fast as a sleeper train in many respects.”

The point: Subjective journey time can be cut without touching physical duration.

Sources (1)

Non-metallic braces for frequent flyers

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Rory tried to persuade British Airways to give its best customers airport-friendly braces with no metal parts, like the ones he was wearing on stage. For anyone weary of removing a belt or braces at every security scanner, he argues, such a trivial gift would do more for their enjoyment of travel than almost anything else.

The point: Removing a small recurring irritation can matter more to customers than big investments in the core product.

Sources (1)

Order first, then wait

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Time spent waiting for your meal to be prepared is more enjoyable than time spent waiting to say what you want. In a fast food queue, before ordering, standing there wanting a bargain bucket is purely negative. Once you've ordered, you reframe the rest of the wait as time devoted to the quality preparation of your bargain bucket. So ordering screens don't change the duration of the wait; they change its experience.

“You reframe the remaining time as time devoted to the quality preparation of my bargain bucket.”

The point: Moving the commitment point earlier turns dead waiting into anticipation.

Sources (1)

Persil's cheap rail tickets as sampling

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Commercial innovation changes how you sell, not what you sell. A brilliant old promotion let Persil buyers get cheap family off-peak rail tickets, which had high perceived value but cost the railway little. Rory says it was really a sampling exercise: many people never travel by train because they never travel by train, so it feels unfamiliar and intimidating. Get them to travel three times and they will at least weigh train against car fairly. Great British Railways people were discussing an Amazon Prime for trains: retired people paying 500 pounds a year for unlimited travel on any train not fully booked 24 hours ahead.

“A lot of people never travel by train because they don't travel by train.”

The point: Discounted access can work as sampling that breaks the habit barrier to a new behaviour.

Sources (1)

Promise 14 days, pay in ten

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An insurer's customers complained claims cheques took too long, and the company planned a costly IT overhaul and a cash-flow hit to speed them up. A board member pointed out that the brain has no fast or slow, only faster or slower than expected. Payment took about ten days, so he proposed telling customers to expect their cheque in 14 days and still sending it in ten. Every complaint vanished, replaced by a few calls from nice customers thanking them for paying so quickly. Reality had not changed, only the expectation.

“In the human brain there's no such thing as fast and slow, there's faster than you expect and slower than you expect.”

The point: Managing expectations can solve a service problem that engineering would solve expensively.

Sources (1)

Public transport and Swiss Tony

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Rory tweeted, borrowing from Swiss Tony, a character in the 1990s British comedy The Fast Show, that travelling on public transport is like making love to a beautiful woman: you just have to do it at a different time to everybody else. Americans unfamiliar with the reference reported him to Ogilvy for gratuitous sexism. The underlying point stands: travelling off-peak transforms the experience.

“Travelling on public transport is like making love to a beautiful woman: you just have to do it at a different time to everybody else.”

The point: Shifting when people travel can fix crowding without new capacity.

Sources (1)

Pull the airport trays to the end

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Rory asks the audience who, at airport security, pushes their trays as far along the belt as possible. Those are the good people, the systems thinkers. If everyone grabs their luggage as soon as it emerges from the X-ray machine, only one person at a time can put their belt and shoes back on. Haul the trays to the end and people can do it in parallel rather than in series. Many intelligent people never think this way because it requires a different framing.

“People optimise at the individual level without looking at the overall system.”

The point: Bottlenecks often come from individually sensible behaviour, and small changes in how people act can unblock a whole system.

Sources (1)

Put speedometers in Tube carriages

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We can't judge speed across modes of transport: 120mph in a car is white-knuckle, but unremarkable in a train; 30mph in a speedboat is thrilling, 15mph on a jet ski exciting. Underground you get no cues at all. On the Central line you are travelling beneath Oxford Street at 70mph. Rory has campaigned for Transport for London to install speedometers in Tube carriages, and wants a film of a car driving through London at Tube speed to make salient how fast the Tube is.

“On the Central line you're driving down Oxford Street at 70 mph.”

The point: Making a hidden advantage salient changes how people value a service.

Sources (1)

Reframe the NHS waiting list as preparation

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Rory thinks the NHS could greatly improve patient satisfaction with techniques valued for their meaning rather than medical effect. A six-week wait for an operation could be reframed as preparation: you have six weeks to lose so much weight, and here is how, so the time improves the odds. Borrowing from Uber, it could send regular reminders of the date and milestones, because part of the dread is fearing the date will slip again. Waiting for a parcel you can track feels very different from one you cannot.

“You could reframe waiting time for an operation in some cases as preparation for the operation.”

The point: Giving waiting time a purpose and visible progress turns passive anxiety into productive time.

Sources (1)

Ten-mile-an-hour pods and the gap between email and meetings

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Public transport has a huge gap between mass transit at £1.50 and a taxi at £23 if you want to use your phone. Rory imagines driverless electric pods at only ten miles an hour, where the duration of the journey is part of the benefit, for £4. Business has a similar gap between Slack, email and phone on one side and meeting face to face on the other. Video's low sunk cost fills it, letting you meet people you never would have: he discovered a tech cluster in Gloucester that he'd never have travelled to see.

“The duration of the journey is part of the benefit.”

The point: Filling the gap between cheap and premium options creates new value, and serendipity, cheaply.

Sources (1)

The A40 dual carriageway and the empty High Speed 1

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When the A40 between Raglan and Abergavenny was dualled, everyone switched immediately: same journey, done faster, little behaviour change needed. High Speed 1 was different. Rory, a train nerd living in Sevenoaks, drives to Ebbsfleet to use it, and for the first five or six years he often had a carriage to himself. Now the trains are rammed, because it took that long for people to learn new behaviours, like living in Margate and working in London. Quick-paying improvements matter less; HS1 is the truly valuable one.

“It takes six or seven years for people to learn a new behaviour.”

The point: Genuinely new options pay off slowly as behaviour adapts, so judging innovations by early uptake undervalues the best ones.

Sources (1)

The answer to long journeys is better drugs

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Rory has often argued the solution to long-distance travel is not better jets or trains but better drugs: if you could knock yourself out for the duration, you would not care how long it took. A banker friend, subject to random urine tests, only smoked pot the day before a holiday. When told his flight was cancelled and he would be put on a coach to Luton, he was entirely relaxed: fine, coach to Luton, cool. Under any other circumstances he would have been livid.

“The solution to long-distance travel isn't actually better jet aircraft or better trains, it's actually better drugs.”

The point: The pain of a journey is in the traveller's state of mind, which can be changed more cheaply than the journey.

Sources (1)

The car is the best or second-best for almost every journey

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Rory gets cross with environmentalists who want to abolish cars: the smug bus user still eats food delivered in a van. Plot journey distance on a log scale and mark the best mode: walking for 200 yards (though a Houston hotel once offered him a car for that), then bikes if it's flat and dry, trains for city commutes and intercity, planes for continents. Right across, from half a mile to a thousand, sits the car, optimal or close second regardless of time, rain, luggage or passengers.

“You've outsourced the driving to van drivers, you haven't actually escaped from the car.”

The point: The car's value lies in its versatility across contexts, which single-metric comparisons miss.

Sources (1)

The Donner Party were faster

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Rory is not saying speed never matters, only that it matters non-linearly. In Austin, wanting to go to San Antonio, he found one train a day, taking over three hours for 85 miles: the Donner Party were faster for chunks of their trip. Linking city pairs like that, the 11th and 7th largest US cities, with a reasonably fast rail service doing it in an hour would be transformative. Shaving minutes off an already decent journey is a different matter.

“The Donner Party were faster than that.”

The point: Speed improvements matter hugely when they cross a usability threshold and little after it.

Sources (1)

The passport office designed around psychology

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Why do airline check-ins make you stand in a line when, like a cheese counter, they could give you number 47, point you to the coffee and text you ten minutes before you're needed? Rory got an emergency passport at the Victoria office expecting a 'Falling Down' rage. Instead he took numbers, sat down, moved from room to room, and was told to come back in three hours rather than hang around like a dog. With his family, he never got even mildly irritated.

“Someone's looked at the emergency passport system and designed it around psychology, not around McNamara metrics.”

The point: Seating, numbers and a sense of progress can make a bureaucratic wait painless.

Sources (1)

The rail season ticket is 19th-century technology

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We often get stuck in a mental model whose only justification is that in 1890 the technology allowed nothing else. The rail season ticket is a product of 19th-century ticketing technology and no longer makes sense. Rory suggests the industry investigate something like an Amazon Prime system, where you still make a commitment but to some degree pay as you go.

“The rail season ticket is a product really of 19th century ticketing technology; it doesn't make any sense anymore.”

The point: Many conventions persist from old technological constraints and can be redesigned once those constraints vanish.

Sources (1)

The third bedroom and the longer commute

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People move further from work because they fantasise about a third or fourth bedroom or a bigger garden. After six months or so the pleasure of the extra room dissipates and happiness returns to its norm, but the pain of the longer commute is with them, unavoidable, every single day. Rory distinguishes annoyances and pleasures that normalise over time from those that never go away.

“After six months the pleasure of the third bedroom starts to dissipate, yet the pain of the longer commute is with you every single day.”

The point: We adapt to some gains but never to some pains, and decisions should weigh the ones that persist.

Sources (1)

Trains should learn from pubs, let people lean

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A pub's varied seating lets you choose by mood: a laptop on your own, a romantic corner, a sofa with friends. You also don't mind a crowded place if there is somewhere to lean. Train designers could learn from this. Trains grow ever more like buses and aircraft, but on Stockholm's Arlanda Express part of the seating is stools facing the window with a shelf for a laptop, and it is a joy; you take up less space and are happier. People don't hate standing as such, but feeling off balance, fearing for their bag, being watched from all sides.

“You don't mind a place being crowded if there's somewhere you can lean.”

The point: Varied, mood-appropriate seating and leaning spots can raise both capacity and comfort.

Sources (1)

Twenty-four hours of Ryanair dread

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Rory's actual experiences of Ryanair have been excellent, except a Friday afternoon flight to Prague where he was the only sober passenger. The reason he avoids it is the 24 hours beforehand, when he is terrified that something will be found wrong, that his carry-on is one millimetre oversized and they will put him in a room and have Serbian mercenaries pistol-whip him. Ryanair manages expectations so low that the flight itself is fine, but the anticipation is awful.

“The reason I don't fly Ryanair is for the 24 hours before I fly Ryanair, I'm terrified.”

The point: Anxiety in anticipation can deter customers even when the actual experience is good.

Sources (1)

Watching the plane take off from Gatwick

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Years ago Rory was stuck in Milan at 1am with a massively delayed flight. One of the passengers was a pilot and an early adopter of Flightradar24. Before the incoming plane took off, everyone feared cancellation, a night in the airport, cancelled meetings. Once they saw the plane depart Gatwick for Milan on his screen, all their anxieties dispersed, because they now knew something was going to happen. The delay was unchanged; only the information was new.

“Once we saw the plane take off from Gatwick heading for Milan all our anxieties completely dispersed.”

The point: Visible evidence of progress relieves anxiety even when the wait itself stays the same.

Sources (1)

Why improve the one part of the journey that isn't crap?

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Think about your last train journey, Rory says. Everything was annoying: getting to the station, parking, buying a ticket, finding the right platform, getting your luggage on board. Everything except the train journey itself, which was actually quite enjoyable. So why are we spending all the money improving the one component of the journey that is not bad?

“Why are we spending all the money improving the one component of a journey which isn't crap?”

The point: Investment often targets the measurable part of an experience rather than the part that actually causes pain.

Sources (1)

Advertising, brands and marketing 292

Avis, we're number two, so we try harder

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In 1960s America, being number two in car rental was really an advertisement for Hertz: more cars, more airports, lower prices. Critics said Bill Bernbach was mad to emphasise a negative. Avis added four words, so we try harder, and shifted the dimension of comparison from the company's size to its staff's attitude, so second place suddenly meant not resting on your laurels. Rory calls it perhaps the greatest campaign of all time, and pairs it with Guinness's 'good things come to those who wait', far better than admitting it is slow to pour, and Stella Artois's 'reassuringly expensive'. In each case people asked why on earth you would point out your biggest downside, yet that candour is what made the claim credible.

“That capacity to take a weakness and turn it into a strength is pure alchemy.”

The point: Admit the weakness and redirect attention to a dimension where it becomes a virtue, and the candour itself makes the claim believable.

Variants: Some tellings add Smucker's ('with a name like Smucker's it has to be good') and 'naughty but nice'; others tie it to Cialdini's principle of admitting a negative close to the point of purchase. One frames it as physics versus psychology: you cannot rewrite the laws of physics, but you can mess with the laws of psychology any way you like.

Sources (10)

Sell how you think, not what you do

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Rory's tip, discovered by accident: if you are a marketer, do not sell what you do, sell how you think. Raising money for an Ogilvy lab, he spoke at compliance and procurement conferences where nobody would ever make an ad, so he talked about how marketers think: looking at a business through the eyes of the people who experience it, Mark Ritson's 180-degree flip. That market proved a hundred times bigger. Marketers who justify themselves by their outputs become a support function; marketing became a department and lost its mind. A friend running marketing at Direct Line was sent an actuary on secondment, who said he had no idea why they had put him in marketing, because he was rubbish at drawing.

“Marketing isn't a department. It's a way of looking at the world.”

The point: A discipline's transferable value is its way of seeing problems, which is worth far more, to far more people, than the outputs it is known for.

Variants: Tellings add that comms is perhaps 10 per cent of marketing's value, and that marketing lost responsibility for price and product and kept only promotion, the one P that is a cost. A hardcore coder reviewing Alchemy said he could now solve problems like a psychologist as well as an engineer.

Sources (8)

James Watt invents the horsepower

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Boulton and Watt had built a far more efficient steam engine than the Newcomen engine, but engineers talking about boiler capacity, cylinder bore and piston stroke could not sell it to mine owners, who drained their mines with horses walking in circles. Watt asked what a mine owner really wants to know: how many horses can I get rid of? So he invented the horsepower. A 25-horsepower engine runs round the clock, replacing 75 horses working in shifts. That is why, unlike units named after Newton or Volta, it is not named after a scientist: it is a marketing unit, still used for jet engines. As Rory adds, there is yet to be a Watt of the electric car.

“The reason it's not named after a famous physicist is because it's a marketing unit.”

The point: Translate a product's features into the unit of value the buyer already thinks in, and adoption follows where specifications failed.

Variants: The arithmetic shifts between tellings (25 horsepower replacing 75 horses, or 20 replacing 60). Some tellings fold in Boulton and Watt's coal-savings pricing as a second act.

Sources (7)

Marketing is fat-tailed

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Nassim Taleb told Rory that marketing is fat-tailed. Height is thin-tailed: if the tallest person in the world walked in, the room's average height would barely move. Wealth is fat-tailed: if Elon Musk walked in, everyone would on average be a billionaire. Marketing, like film, pharma, publishing and venture capital, is fat-tailed: 5 to 10 per cent of what you do delivers 120 per cent of the value, but you cannot know in advance which part. Real life is like that: miss a bus and you have different children; a chauffeur's wrong turn in Sarajevo started the First World War. Yet finance books every failed experiment as a cost and credits a success for a quarter at most, using thin-tailed maths.

“Five to 10% of what you do delivers 120% of the value.”

The point: In fat-tailed activities rare outliers dominate the returns, so judging each spend against an average or proportionate return systematically kills the big wins.

Variants: The share of value cited moves between 80 and 140 per cent. Other tellings add that Ogilvy said he had only five big ideas, that three insights mattered most in Rory's 15 years on American Express, that Keith Richards nearly caught a later train from Dartford, and that Lehman Brothers collapsed on thin-tailed maths.

Sources (7)

Admen ran randomised trials before doctors

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Rory claims direct marketing invented the randomised controlled trial 60 to 80 years before medicine caught on, with a nod to the 18th-century scurvy trial with lemons and limes. In the early 20th century, big newspapers in the US and UK were printed on two or four presses in parallel, and the copies were interleaved like a shuffled pack of cards. Run ad A on one press and ad B on the other, with coded coupons, and every newsagent got equal numbers of each: two people buying consecutive papers in the same shop saw different ads. Advertisers tested headlines, creative, propositions and media this way, and Claude Hopkins's Scientific Advertising of 1923 is largely built on such tests. The one thing newspapers would never let you test was price.

“Direct marketing invented the randomised control trial something like 70 years before medicine cottoned on.”

The point: Cheap, randomised testing of creative ideas lets you take bold bets safely, and it was practised in marketing long before it became respectable elsewhere.

Variants: One telling explains the price ban as owners thinking it unfair to quote readers different prices, and jokes that advertising's Hippocratic oath is 'don't get found out'. Another says the 1920s and 30s mail-order men learned through these tests much of what later won Nobel prizes as behavioural science.

Sources (6)

AO's teddy bears in the back of the van

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AO, the appliance retailer, delivers its own washing machines and dishwashers, and every van carries a box of AO-branded teddy bears for any children in the household (once, when Rory rode along, for a dog). Founder John Roberts told Rory he could never prove its value, nor that of the million-pound cheque he had just written for a new consignment, which made AO the largest buyer of small cuddly bears in the UK. But he keeps doing it. It costs a few pence, a rounding error. Competitors who use couriers cannot copy it. Nobody throws away a young child's bear, so it is a free ad in the house for years, and every Trustpilot reviewer who mentioned the bear left five stars.

“It's a few pence. It's a rounding error. It's impossible to calculate the value of that. But nobody else gives you a bear.”

The point: Small, unmeasurable gestures that rivals cannot copy are a durable source of differentiation, and need founder-level judgement rather than a cost-benefit case.

Variants: The cheque is a million pounds in some tellings and a million dollars in others. One adds that missed opportunities never register: nobody calls a firm an idiot for not giving the children a bear.

Sources (6)

Defending Jaguar's 'Copy Nothing' rebrand

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Rory, who has owned six Jaguars, is more sympathetic than most to its controversial relaunch. 'Copy Nothing' was founder Sir William Lyons's own maxim, and the XK120 and E-Type were freakishly innovative: the E-Type was not a nostalgic car when it was launched. Ritson and Sharp are right about brands in stable markets, but electrification is an iPod moment that scrambles the hierarchy, with people trading a petrol Audi for an electric Skoda. Jaguar's real mistake was years of benchmarking against BMW, Mercedes and Audi. Its heritage is like the red telephone box: everybody loves them, nobody uses them. When Dylan went electric someone shouted 'Judas', but Dylan had seen the writing on the wall.

“Sometimes you've got to piss off your existing customers and find new customers somewhere else.”

The point: When a technology shift collapses a category's hierarchy, a heritage brand that people love but do not buy may need a bold pivot rather than careful maintenance.

Variants: Tellings add that the much-mocked film ran with almost no media budget, that Jaguar sold only about 7,000 cars a year in the US and openly expects to lose all but 15 per cent of its customers, and Rick Rubin's split between reinventors like Bowie and furrow-ploughers like Johnny Cash. Rory loves red phone boxes too, but does not think one should be BT's logo.

Sources (6)

Big ideas need more marketing, not less

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For 30 years Rory assumed the bigger the idea, the less advertising it needed: you need lots to choose between two shampoos, but a big idea will just be adopted. He now thinks the reverse. Humans default to doing what they did before and what everyone else does, so a really big idea demands a lot of behaviour change and creates a lot of psychological friction. He naively assumed Jenner noticed dairymaids escaped smallpox and everyone was vaccinated; in fact it took 50 or 60 years against religious and vested interests. When Rory used a mobile phone on Oxford Street in 1989, two people shouted abuse from taxis. Similar hostility met air fryers and electric cars.

“Really big ideas require a lot of marketing because they require a lot of people to change their minds.”

The point: The more novel and valuable an innovation, the more persuasion it needs, because it asks people to abandon habit and conformity.

Variants: Tellings add Top Gear driving electric cars until the battery died, a test never applied to a Ferrari, and Stewart Butterfield's line that innovation's only real measure is behaviour change. Same-sex marriage is his counter-example of rapid change; drink-driving norms took about 50 years.

Sources (5)

Dyson's real genius was the see-through bin

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James Dyson believes people buy his vacuum cleaners for superior suction and having no bag, and that is not untrue. But Rory thinks much of the appeal is monkey-brained: vacuuming is more satisfying when you can see the dirt coming out of the carpet, a rapid feedback that probably taps a foraging instinct. Dyson insisted on transparency against the argument that nobody wants to see the dirt. Put the same cyclone technology in an opaque beige casing, Rory argues, and nobody would have paid £500 for what is normally a distress purchase, certainly not at those prices. Dyson thinks it is engineering; it is more psychology than engineering.

“If you'd made Dyson opaque rather than transparent, I don't think they would have sold, certainly not at those prices.”

The point: Visible feedback that makes effort feel effective can matter more than the technical advantage the maker believes it is selling.

Sources (5)

Fame is a luck multiplier

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Rory borrows a line from the head of the New York agency Mischief: fame is a luck multiplier. The more people know about you, the more surface area you have for positive upside, as Taleb would put it. When you are famous your customers find you; when you are obscure you must find every customer yourself, and you are often wrong about who they are. If you are indiscriminately famous, you discover who your audience really is rather than whom your algorithm says it is. After his book, Rory was approached by firms he had never heard of. Guinness may not have invented the 'split the G' craze, but there was never going to be one for the M on a pint of Murphy's.

“When you're famous your customers find you; if you're not famous you've got to find all your customers.”

The point: Broad fame buys exposure to opportunities and customers you could never have predicted or targeted, a real return that attribution cannot see.

Variants: One telling cites a high-end organic food seller that checked customers' houses on Street View and found them impossible to stereotype; another reckons 50 per cent of advertising is simply being famous.

Sources (5)

Without the pink octopus, 20,000 customers

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Rory admires Octopus Energy as brilliant and mould-breaking, and teases its founder Greg Jackson whenever they meet: had he kept the original name, something like Green Tech Energy, and not had a pink cuddly octopus as a logo, he would still have 20,000 customers. The name was imposed by its investor, Octopus, which made it a condition that the company be named after a sea creature. A century of advertising shows animals work: the AO bear, the Dulux dog, the Andrex puppy. The fun of the brand also means that when Octopus launches something odd, people think 'that's cute' rather than 'what the hell are they doing now?' Engineers hate this, because it means they live amid insanity rather than a deterministic world.

“If they hadn't had a pink cuddly octopus as a logo, they'd still have 20,000 customers.”

The point: A distinctive, likeable brand symbol can be decisive even for a genuinely superior product, and it buys goodwill for future innovations.

Variants: The teasing number moves between 17, 20,000, 30,000 and 50,000 customers. One telling adds that Octopus spends most of its advertising on its customer service, because the biggest bottleneck to switching is fear of a lost weekend playing phone tag.

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Bottomless brunch is breakfast for alcoholics

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Rory rates bottomless brunch as one of the great repackaging ideas of the last 20 years. What it actually is is breakfast for alcoholics: turn up in the morning, eat breakfast food and get completely drunk before lunchtime. Put up a café sign saying 'Breakfast for alcoholics', or a blackboard saying 'Get pissed at breakfast', and you attract the wrong clientele while righteous people are horrified. Call it a bottomless brunch, add some Prosecco, and suddenly it is completely acceptable to be a morning alcoholic. Nobody wrote a brief asking how to destigmatise drinking at breakfast; it was discovered bottom up. What is the economic value of those two words? Almost unimaginable.

“Call it bottomless brunch, add in a bit of Prosecco, suddenly it's completely acceptable to be a morning alcoholic.”

The point: A reframing name can make a disreputable behaviour respectable and so create a whole market.

Variants: In one telling Rory argues the worldwide Prosecco industry should pay a one-off $10 million to whoever coined the phrase, and urges marketers to study such accidental successes as Darwin studied the Galápagos.

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Defining your audience as whoever is cheap to reach

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Digital and performance marketing assume demand is pre-existing and the job is to serve it efficiently. At worst, brands define their target audience not as people they could have a profitable lifetime relationship with but as people willing to interact in low-cost channels. American Express loved take-one application forms in curry houses and hotels, but also used pricier direct mail, which profitably reached people take-ones never would. Had Amex defined its audience as people who spontaneously pick up a form, it would have been efficient for a few years, then ceased to exist. Imagine McDonald's serving only screen-orderers: it would lose the occasional customers big brands grow through.

“It is not fair to conflate customer value with cheapness of acquisition.”

The point: Optimising for low acquisition cost silently shrinks your market to the people cheapest to reach, who are rarely the most valuable.

Variants: One telling aims it at programmatic advertising, where your value as a customer becomes your readiness to act on impulse in cheap channels: the easiest people to sell to are probably not your most valuable.

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Every electric car ad talked about range

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Most electric car marketing money sits with individual brands competing against other EV makers, so every ad boasts that its range is a few miles longer than a rival's. Individually rational, collectively stupid: the net effect is that the whole market focuses consumers on range, arguably the only real negative of an electric car, rather than on quietness, performance, efficiency and very low running costs. People come to see range as a bigger problem than it is, and makers fit bigger batteries, making cars heavier and dearer than they need to be. Rory wants someone to pool manufacturers' money, organisationally nightmarish as that is, for a category campaign listing fifteen reasons electric cars beat petrol ones.

“Something that's individually rational can be collectively stupid.”

The point: When every brand competes on a category's weakness, their combined advertising amplifies the fear that holds the whole category back.

Variants: One telling notes that range anxiety matters more in the US than in the UK, and frames the problem as brand budgets being spent on what is really a category problem.

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Marketing language is like astrology

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Rory's copywriter colleague Alistair Graham observed that the language of marketing is like the language of astrology: talking to fellow believers it is fine, but to anyone else you sound batshit crazy. Two believers can agree someone is playing up because he is a Sagittarius; a listener finds it borderline deranged. It resonates because Rory's brother is an astronomer, and the worst thing at a party is hearing 'I'm a Sagittarius'. Try saying 'brand iconography' to a CFO: it is like telling the head of thoracic surgery to trust the healing power of the crystal. Behavioural science, especially when it calls itself behavioural economics, reframes the same work in a vocabulary finance has to respect.

“If you're talking to fellow believers it's absolutely fine, but if you're talking to anybody else you sound batshit crazy.”

The point: Specialist jargon persuades only inside its own bubble, so translate your case into the vocabulary of the people who hold the budget.

Variants: The hospital is St Mary's Paddington in one telling and St Thomas' in another.

Sources (4)

Nobody wants an air fryer until they have one

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Rory calls it the air fryer phenomenon: nobody wanted one, but everybody who bought one became a swivel-eyed evangelist. Experience goods can only be appreciated by using them. Australians and Britons insisted they would never drive an automatic, yet almost nobody who got one went back; the same goes for duvets over tucked-in blankets, mattress toppers and £800 boiling-water taps, which are very hard to buy the first time (I'm paying 800 pounds for a kettle?) and impossible to give up. As the old Vauxhall line had it: once driven, forever smitten. So the hard part is the first purchase, and the metric that matters is not adoption speed but repeat purchase.

“Nobody wants one until they have one.”

The point: For products whose virtues are felt rather than thought, the job is to engineer first trial, and repeat rate is the true measure of success.

Variants: Tellings apply it to electric cars (one-pedal driving, adaptive cruise) and credit TikTok's endless air fryer recipes with finally taking the air fryer mainstream; Rory half-jokes the same algorithm might sell Georgism.

Sources (4)

Technoplasmosis

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Toxoplasmosis is a cat parasite that needs a mouse as an intermediate host. It hacks the mouse's brain so it loses its fear of cats and even finds cat urine attractive. With a marketing writer friend, Rory coined 'technoplasmosis' for what big tech has done to marketing. Tech firms, and the consultants now inside finance departments, have supplied the metrics marketers chase, and those metrics serve the platforms: short-term, bottom-of-funnel click-throughs, shovelling money to Meta and Alphabet a bit more efficiently. There is no banner-ad measure of the quality of surrounding content, because platforms want to sell expensive ads against a rubbish backdrop. A better metric: how far you can promote yourself without the gains going to the gatekeepers.

“It's all about how can you shovel money to Meta in a slightly more efficient way.”

The point: Metrics supplied by whoever sells the media are designed for the seller's benefit, so choose measures that value bypassing the gatekeeper.

Variants: One telling calls the metrics a mind virus planted by tech firms and their 'running-dog lackeys' in management consultancy; another holds up influencer marketing and word of mouth as ways to bypass the gatekeepers rather than bribe them more efficiently.

Sources (4)

You can ask for a Coke anywhere

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Coca-Cola, Rory says, is a genuine miracle: apart from water, the only cold non-alcoholic drink you can ask for anywhere, from a drinks shack in Zambia to a Michelin-starred restaurant, without any awkwardness. If they do not have it, it is their fault, not yours; they basically have to bring it or explain why they do not stock it. Ask for a Dr Pepper Cherry Zero and you must explain and justify yourself, and if they do not have it you feel a fool for asking. A large part of marketing is simply making things not seem weird, shifting the social risk of a choice from the customer onto the seller.

“If you asked for it and they don't have it, it's their fault, not yours.”

The point: The ultimate brand achievement is becoming the socially safe default, so that the burden of embarrassment falls on whoever fails to offer it.

Variants: In Texas, Rory notes, there is scarcely any Pepsi and the rivalry is Coke against Dr Pepper. One telling extends the idea to brown sauce with bacon, and to how the pandemic made video calls and QR codes stop feeling weird.

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'Indian street food and cafe'

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Rory and Mark McCulloch, now Pret's marketing director, were on a Zoom call with the young founders of Chaiwala, which sells chai, coffee and Indian street food. Worried that people would assume it only sold chai, the founders planned to put 'Indian Street Food Cafe' on the outside. Without pausing, McCulloch said: put 'Indian street food and cafe'. Now you attract people who like Indian street food and people who want a café, rather than demanding that people want both, and you put off nobody who dislikes Indian street food. One monosyllable, multiplied across a hundred locations. Rory calls it an 'I am not worthy' moment he would not have thought of in a hundred years.

“Put Indian street food and cafe, cause then people who don't like Indian street food can still use you as a cafe.”

The point: One word can turn an intersection of audiences into a union, doubling the jobs a business can be hired for.

Variants: In one telling the founders' first plan was simply 'Indian Street Food'.

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100,000 rational decisions in search of one emotional decision

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Rory quotes Kumar Galhotra, head of Ford North America: car making is 100,000 rational decisions in search of one emotional decision. Engineers spend hours on the powertrain, suspension, floor pan and safety rating, neat problems with single right answers. But if the result is not a car people emotionally want to buy, all that rational activity is wasted. Businesses dominated by finance or engineering culture are woefully short of that complementary emotional view. The same holds for charities, whose best idea fails without emotional affinity, and for restaurants: you can build a flawless one, but without some singular standout, a push-for-champagne button, a little mental burr, you may be missing the thing that matters.

“Car making is 100,000 rational decisions in search of one emotional decision.”

The point: Rational optimisation of the parts is worthless unless the whole passes the single emotional test of whether people want it.

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A great brand lets you play capitalism on easy mode

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Rory quotes neuroscientist Matt Johnson: having a great brand means you get to play the game of capitalism on easy mode, and adds that behavioural science supplies the cheat codes. Fame lubricates everything: when your CEO rings, 99 per cent call back; people work for you for less, stay longer, and apply for jobs you did not know existed. Customers forgive mistakes: Apple shipped iPhones that dropped calls if held the wrong way, a flaw that might have sunk a lesser brand. People are less price-sensitive. None of this shows up as attributable sales, because there is no counterfactual. Rory prefers to define a brand by what it does: anything that gives you an enduring, justifiable advantage in future dealings.

“Having a great brand means you get to play the game of capitalism on easy mode.”

The point: Judge a brand by the broad, compounding advantages it confers, such as forgiveness, pricing power and opportunity, rather than by attributable sales.

Variants: One telling adds an ad man's description of a brand as the last legal unfair advantage in business, and Rory's distrust of the word 'brand' as a blank Scrabble tile that can mean anything you like.

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Brands are insurance against disappointment

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You pay £200 more for a Samsung TV than for one from a maker you have never heard of, not because you think it is better but because it is bound to be somewhere between okay and pretty good, whereas the unknown one could be anything from brilliant value to a crock. A friend of Rory's had an unknown TV that became unusable if you lost the remote. A firm with a reputation has more to lose from a bad product. Insuring your house does not make it a better house; it reduces the chance your life is ruined. Herd behaviour and habit, which Rory calls social copying in the dimension of time, work the same way: they minimise variance.

“When you insure your house it doesn't make it a better house.”

The point: A brand premium buys a narrower spread of outcomes, not a better average, which is a rational thing to pay for.

Variants: One telling credits David Ogilvy with the insight around 1960: people pay a premium not because they think brand B is better than brand A, but because they are more certain it is good.

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Do you make these common mistakes in English?

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Direct response copywriters tested headlines cheaply in tiny classified ads before running the winner in full pages. A company selling a correspondence course in grammar ran an ad headlined 'Do you make mistakes in English?' It was not very successful. Someone added 'these', which made readers curious whether they made those particular mistakes. Then someone added 'common': 'Do you make these common mistakes in English?' That destigmatised it: if lots of people make the mistake, I am not an idiot, and I can now avoid it. The ad ran for decades and made a fortune. The laws of psychology differ from physics: tiny interventions can have monumental effects.

“Long before there was behavioural economics, there was direct response advertising.”

The point: Tiny wording changes that spark curiosity and remove stigma can transform response, and only testing reveals which ones.

Variants: In one telling a single added word multiplied response about sevenfold and the headline ran for about 30 years; in another it made a few million dollars a year for about 20 years.

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Make desirable things, or make things desirable

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Because we do not perceive or value things objectively, there are two ways to make something more valuable: change the thing itself or change its context. Equally, there are two ways to make money. Innovation finds out what people really, really want, to quote the Spice Girls, and works out a clever way to make it. Marketing works out what you can make and finds a clever way to make people want it. The value created is exactly the same whichever direction you travel. There is not much you can do about the laws of physics, whereas the laws of psychology are magnificently malleable. Yet large businesses come to focus on what they do rather than what it means.

“There's not much you can do about the laws of physics. Whereas the laws of psychology are magnificently malleable.”

The point: Creating perceived value is as legitimate and profitable as improving the physical product, and often far cheaper.

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Marketers love novelty; their customers don't

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Whoever discovered water, it sure as hell wasn't a fish. Marketing is homogeneous not so much in gender or ethnicity as in personality. Citing planner Kevin Chesters, Rory describes research for a large TV company into its staff's Big Five traits: nearly everyone in marketing and media scored very high on openness, while its viewers were relatively low, wanting familiarity, soap operas and repetition. Chesters also notes two human motivations, the urge to stand out and the urge to fit in; advertising people understand the first brilliantly and the second badly. A large slice of the population thinks: I'm fairly content, please leave things alone. To a young marketer that is almost incomprehensible.

“Whoever discovered water, it sure as hell wasn't a fish.”

The point: Practitioners project their own appetite for novelty onto customers who mostly want familiarity, so check whose psychology a plan really serves.

Variants: Rory admits he is high on openness himself, as was his otherwise archetypal Telegraph-reading father; one telling adds that this matters less for prestige brands aimed at people like the marketers themselves.

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Marketers with Stockholm syndrome

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Rory's big criticism of marketing over the last 30 years: beaten up by procurement and finance, marketers developed a kind of Stockholm syndrome, taking on the characteristics of their own abusers. When digital data arrived they went to finance saying: look, we can be as quantifiable as logistics, we can measure the efficacy of every pound we spend. No, you cannot. If every unit of cost must be matched to a unit of incremental revenue, marketing is doomed. Rory welcomes rigour where it belongs, and does not want creative types checking British Airways' wheel nuts anticlockwise for laughs, but perhaps 20 or 30 per cent of the time marketing should fight back and claim a licence to explore.

“Marketing acts in a kind of Stockholm syndrome relationship with finance, where you start to take on the characteristics of your own abusers.”

The point: A function that adopts its overseer's metrics wholesale loses the very capability that made it valuable.

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Nuclear power, the worst branding in history

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Asked for the worst-marketed good idea of all time, Rory nominates nuclear power. You have an extraordinary green, efficient form of energy, and you name it after a kind of bomb. Using the word 'nuclear' for power generation was, he says, one of the most catastrophic unintentional cases of bad branding imaginable, with genuinely harmful consequences. Had they consulted the worst copywriter on the planet, he would have suggested 'kitten power' or something, and they would have been in with a chance. A great product badly marketed is the saddest thing in the world, because falling at the last hurdle is the worst thing you can do.

“Can we call it kitten power or something, because then you'd be in with a chance.”

The point: A name carries associations that can doom a good technology or policy regardless of its merits, so failures blamed on the product may really be failures of naming.

Variants: One telling pairs it with the 'dementia tax', a journalist's label that sank a not altogether unintelligent attempt to fix social care.

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Royalties on the first five days of sales

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Rory knows UX ideas, one or two his own, that cost £25,000 to £50,000 and have delivered around £10 million a year of high-margin revenue in perpetuity. After year one, none of it is credited to marketing, which is held responsible for every unit of cost but credited with a sliver of the value. Imagine publishing if authors were paid royalties only on the first five days of sales: nobody would write a serious book, only clickbait that sells massively once and is never bought again. That kind of writing exists, but it is called tabloid journalism, not publishing, and Rory sees the same trend in 'tabloid advertising', whose only rationale is what it does within its three-day half-life.

“Imagine what publishing would be like if you were only given royalties on the first five days of book sales.”

The point: Short attribution windows push effort towards quick-hit tactics and starve ideas whose value compounds for years.

Variants: One version stretches the window to six months and adds that the first Harry Potter print run was only 500 hardbacks; another likens it to letting pharmaceutical R&D claim only a drug's first-quarter sales.

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San Pellegrino's foil, an access-all-areas pass

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San Pellegrino cans used to carry a little foil lid, since removed, Rory suspects, by procurement or finance, to his annoyance. Its vestigial rational justification is hygiene. But Rory and his colleagues called it an access-all-areas pass for the drink: because of that silver foil, you could put out a bowl of cans at a wedding or a board meeting, whereas nobody serves Tango at a wedding. It said this is a posh drink, like Tango went to college. The lid changes the contexts in which the drink can be displayed and consumed, and the price it can command. Nobody measures that; they only measure the cost of the foil.

“The foil lid really acts as an access-all-areas pass for the drink.”

The point: A small, strictly unnecessary cue can widen the occasions and price at which a product is acceptable, value that cost accounting cannot see.

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Sourdough just means posh bread

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In a meeting with a huge multinational wanting a name, Rory said, as only a 60-year-old could, never underestimate completely gratuitous BS. Nobody but bakers knows what sourdough is; it just means posh bread. Nobody knew what organic meant either, it just meant posh food, or artisan. Invent a name, brandish it everywhere, and people assume it is important: a word takes on meaning almost bereft of its literal meaning. In the 1950s a company introducing cheaper packaging would not say cheaper packaging; it would call it Freshermatic. Bothering to coin a term imbues a change with significance that is missing when you do not. Nobody says this in business because they want to pretend the world is serious.

“Don't completely underestimate the importance of completely gratuitous BS.”

The point: Coining and repeating a name gives a product or change perceived significance, whatever the word literally means.

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Start with the coupon and work backwards

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When Rory started writing direct-response ads, veterans such as Drayton Bird told him to design the coupon first, writing the tick boxes before the rest of the ad. It was right twice over. How a choice is framed has an enormous effect on what people pick. And if the last hundred yards of a purchase is half as good as it could be, everything before it is half as effective: if Amazon had a bad checkout, the rest of the store would barely matter. So start at the point of sale, or with repeat purchase, and optimise backwards. If everyone buys once and never again, a great ad campaign just creates more disappointed customers at speed.

“Get the end right and then work on the beginning.”

The point: Fix the moment of conversion and the repeat experience first, because they multiply or divide the value of everything upstream.

Variants: One telling blames agencies, unpaid on commission since about 1992, for still starting with bought media; another warns that otherwise your data reflects your choice architecture, not who actually wants your product.

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'I never read The Economist.' Management trainee, aged 42

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The famous Economist poster read: 'I never read The Economist.' Management trainee, aged 42. What it actually says is that reading The Economist will make you successful in business, or that people who do not read it fail in their careers. Said straight, that is a rather wanky, slightly odious message that Economist readers would have hated. Said obliquely, through humour, it works. Rory links it to benign violation theory: humour lets you say things you could not say in a non-humorous context, and acts as a portal into our brains for new ideas and new frames.

“If you say it obliquely, it works.”

The point: Humour lets a brand make a claim its audience would reject as arrogant if it were stated plainly.

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A bonus is not a bribe

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The late Jeremy Bullmore of J. Walter Thompson and WPP said that in economics there is no difference between a bribe and a bonus, but in the human brain there is. Rory's pet hate is the email that says 'Here's £10 for you', which turns out to be £10 off if you spend £200. A genuine £10 credit would make him feel reciprocity and spend more; the conditional version is merely transactional. Come home and tell your wife, 'Here are some flowers, which you can have if you sleep with me', and the flowers will not have the intended long-term effect. A former Next marketer confirmed that 'thank you' rewards beat 'do this, get that' offers by about two to one.

“In economics, there's no difference between a bribe and a bonus, but in the human brain, there is.”

The point: Unconditional rewards feel like gratitude and build reciprocity, while conditional ones feel like transactions, even when the economics are identical.

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A general hospital with a cosmetic surgery sign

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When governments or businesses have a problem they call McKinsey, economists, engineers or scientists, and try psychology only once everything else has failed. People bring problems to an ad agency only when they have a media budget, yet for every one of those, Rory argues, there are a hundred people with a psychological problem that insight and creativity could solve, who never come. Agencies have not been paid on media commission for 25 years but still treat any solution without bought media as invalid. Being a marketer is like running a general hospital with a sign outside saying 'cosmetic surgery': people assume you sprinkle magic dust on important work done elsewhere, and you see only 5 per cent of the patients you should.

“It's a bit like running a general hospital but you've got a sign outside that says cosmetic surgery.”

The point: How a discipline labels itself decides which problems are brought to it, so a narrow sign wastes most of its capability.

Sources (2)

A mock-Tudor nuclear power station

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Asked for great marketing failures, Rory says nuclear power made two terrible decisions. The first was the word 'nuclear'. The second, more in Britain than in France, was the design and siting of the power stations. The French simply put one on the outskirts of town. Britain put them on remote, fog-shrouded, spooky coastal sites and made them look like the headquarters of a James Bond villain or Dr Evil. Put them in fairly mainstream places, Rory says, build a mock-Tudor nuclear power station, and our entire reaction to nuclear power would have been different: no one would have minded.

“If you'd had a mock-Tudor nuclear power station in Britain, no one would have minded.”

The point: The look and setting of a technology shape public acceptance as much as its name or its safety record.

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Americans made Coca-Cola, the French made Louis Vuitton

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Psychology contradicts itself: Cialdini lists both social proof, everybody has one, and scarcity, few people can have one. Rory sees two schools of branding. The French are masters of scarcity: unsold handbags go to landfill rather than be discounted. The American school says it is so good that everybody should have it. With a vast market and an egalitarian instinct, Americans were historically bad at luxury: they produced Coca-Cola, the French produced Louis Vuitton. Cadillac in the 1930s was on a par with Rolls-Royce until it was tempted into cheaper models for volume. Now, following Scott Galloway, the Ivy League is effectively Louis Vuitton for the upper middle class.

“There are two ways you can sell things: this is so good that very few people can have it, and this is so good that everybody has it.”

The point: Scarcity and ubiquity are opposite but equally valid strategies, and mixing them can destroy a luxury brand.

Variants: One telling adds Citizen, whose egalitarian founding kept its innovative watches from ever becoming a luxury brand; in another Rory admits 'only one left' made him buy something that morning.

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Behavioural economics is rebranded psychology

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Rory admits behavioural science is really a branch of psychology. Daniel Kahneman never called himself a behavioural economist; Richard Thaler and others in economics faculties coined the term. It was a gift and a great marketing ploy, because once you put 'economics' in the title, finance people and other left-brain types have to take it seriously, overcoming what Rory calls 'fluffy aversion', the reluctance to engage with anything that sounds soft. As someone pointed out, the US president can have a Council of Economic Advisers, but a Council of Psychological Advisers would sound weirdly sinister.

“Behavioural economics was a great marketing ploy to get left-brain people to take psychology seriously.”

The point: Renaming an idea in the vocabulary its sceptics already respect can win it a legitimacy its substance alone could not.

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Boulton and Watt charged a third of the coal saved

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Boulton and Watt sold steam engines as hardware as a service, the 18th-century equivalent of software as a service. If a mine owner already had an old, inefficient Newcomen engine, they would install a Watt engine at their own expense, provided the owner did the housing and basics, and the owner paid them a third of the money saved on coal each year. It aligned incentives: most early Watt engines went to Cornwall, far from the coalfields, where coal was dearest, so Boulton and Watt earned most exactly where mine owners saved most. Owners with no engine paid a flat £5 per horsepower per year, a model Rolls-Royce later adopted for jet engines, charging by hours in operation.

“What you paid them was a third of the money you saved on coal.”

The point: Pricing on the customer's measurable gain rather than on the hardware removes the risk of switching and aligns both sides' incentives.

Variants: One telling likens it to Colonel Sanders licensing his recipe at a cent per item; in others it appears as the coda to the horsepower story.

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Diamond Shreddies

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Hunter Somerville, a young intern at Ogilvy Canada who did improv in Toronto, was asked to relaunch Shreddies, a square wholegrain cereal. His idea: rotate it 45 degrees and launch 'New Diamond Shreddies', the same squares in a delicious diamond shape. Market research showed people preferring one shape over the other, sales rose substantially, and a debate raged among traditionally minded Canadians who missed their old square ones, a minor New Coke moment, until in true Canadian style a compromise combo pack appeared. Rory calls it perhaps the purest example of creating value through perception while doing nothing to the product. If it made people see plain Shreddies in a new light, what harm was done?

“All it requires is photons, neurons, and a great idea to create this thing.”

The point: You can create real perceived value by changing how a product is seen without changing the product at all.

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Direct marketing teaches that feelings, not arguments, make people act

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Rory started in direct marketing, the measured part of advertising, and calls it a crash course in behavioural science. Because you get quantifiable results for your messages, you learn faster than anyone that what seems persuasive as an argument may barely change behaviour, while something surprisingly oblique can have an enormous emotional effect and change behaviour a great deal. What motivates people to act is generally not reason: fundamentally, what makes people act is a feeling, and you generate a feeling in a completely different way from a thought. It teaches the difference between winning an argument and solving a problem.

“What makes people act is a feeling, and how you generate a feeling is fundamentally different from the way you generate a thought.”

The point: Measured response shows that logical persuasiveness and behavioural effectiveness are different things, so test what changes behaviour rather than what wins the argument.

Variants: One telling adds that in advertising a conventional, logical solution gets you fired for being boring: wilful perversity is rewarded.

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Dove carried brand purpose, Gillette insulted its buyers

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Brand purpose made advertising weirdly ideological, though some brands can carry it off. Dove's Campaign for Real Beauty was a cosmetics brand talking about beauty without artifice, entirely consistent with what Dove does. Gillette, moving on from 'The best a man can get', ran an ad that needlessly insulted its overwhelmingly male customers, conflating MeToo with barbecuing and boys play-fighting: almost an act of deliberate effrontery to its core target audience, which Rory found extraordinarily weird. He contrasts it with Bud Light, which faced confected outrage over a small influencer campaign most staff did not know about. Insulting your own buyers destroys value; outrage confected by a few deserves disparagement.

“It was almost a kind of act of deliberate effrontery to your core target audience.”

The point: Purpose works when it fits what the brand already does and backfires when it lectures the brand's own customers.

Variants: One telling recalls Coke's 'Hilltop' ad and the old Coke-Democrat, Pepsi-Republican split; another suggests American Eagle may have been ingenious in pressing the hot buttons of 1 per cent of people so they spread its message free.

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He bought a Galaxy Fold because he can't see

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Samsung markets its folding Galaxy phone on productivity and cool. Rory, at 60, loves his because he can finally see what he is doing: open it up and everything is nice and big, with a proper keyboard. A small smartphone, he says, is like decorating your hall through the letterbox. But Samsung cannot say the obvious, that the Fold is the salvation of people whose eyesight is going, because a folding phone has to be sold as cool. The answer is fame: you cannot market it to old people, but if lots of old people have heard of it, they will think, that's just what I've been looking for.

“Now you can't market it to old people, but if lots of old people have heard about it, they'll go, that's just what I've been looking for.”

The point: A product's most valuable audience may be one its positioning cannot address openly, and broad fame lets that audience find it anyway.

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Hendrick's gin served with cucumber

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Hendrick's suggested serving its gin with cucumber rather than lemon. Being British, Rory initially missed the genius: to a Brit a cucumber is just something you put in sandwiches, but to Americans cucumber sandwiches are comically British, so the serve positioned the gin as sophisticatedly British in the US. More importantly, once you walk away from the bar almost every gin is invisible; a distinctive cucumber serve means everyone can see you are drinking Hendrick's, creating social proof, so even if 5 per cent drink it, it looks as if everyone does. Guinness is visible because it is black, and serving cider over ice made cider obvious.

“To a Brit, of course, a cucumber is not seen as being particularly British, it is just something we make sandwiches with.”

The point: A distinctive, visible way of consuming a product can carry cultural meaning and turn every drinker into an advertisement.

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It's hard to order what nobody else is drinking

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Rory has heard, anecdotally, that the almost accidental decision to serve cider over ice drove the cider revival, perhaps because bottles were too big for fridges. One theory is that it made cider visible: a straw-coloured drink was assumed to be lager, but ice made it salient, and it is very hard to order something nobody else in the pub is drinking. Guinness call it the lighthouse effect: have someone stand at a pub entrance visibly drinking Guinness and the share of people ordering Guinness rises by double-digit percentages. Order the first Bloody Mary and someone will follow, which is why landlords keep a jug of it by the till.

“It's very difficult to order something in a pub which somebody isn't already drinking.”

The point: Visible consumption is contagious, so making a product conspicuous, or seeding it where people can see it, drives uptake.

Variants: One telling frames it with contagion maths, citing Nicholas Christakis's finding that once one house on a street has solar panels, the rest are likelier to follow.

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It's not Mad Men, it's The Sopranos

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When Rory started, advertising said: give us some money and we will make you more famous. That is Mad Men advertising. With the dominance of certain platforms in online retail and search, a newer kind says: unless you give us a lot of money, we will make you disappear. That is not Mad Men, it is The Sopranos, a protection racket. At one level they are the same transaction, but for obvious evolutionary reasons we distinguish between a service and a protection racket. One reason Rory urges clients into influencer marketing is resilience: no single player dominates it, and you cannot let your business depend on an algorithm someone might change on a whim.

“It's not Mad Men, it's The Sopranos. It's a protection racket.”

The point: When a platform charges you to avoid being made invisible rather than to be made famous, treat it as a dependency risk and diversify.

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Marketing as reprographics with a degree

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When Rory joined advertising in the late 1980s, packaged goods made up over two thirds of ad spend, and in those firms marketing was a board-level discipline. Now it is around 22 per cent, and the slack has been taken up by comparison sites, broadband and mobile networks with engineering or finance cultures. There marketing is trapped in the 'marcomms' ghetto: seen as the communications function, a cost rather than a source of value, forever justifying its existence. It becomes reprographics with a degree. Meanwhile marketing misses its really big story: that human perception is very, very strange.

“It just becomes reprographics with a degree.”

The point: Reducing a strategic discipline to its output function strips it of influence and of its most valuable insight.

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Not 'this is for you' but 'this is for me'

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Google and Meta have sold the idea that targeting happens in an algorithm. Rory says the most effective targeting happens in the consumer's mind, when people recognise themselves in the ad: not the advertiser saying this is for you, but the consumer saying this is for me. A specialist podcast or behavioural science festival audience may be small, but it is self-selecting, so the content itself is the targeting. A message the audience recognises itself in does double work: it gets the attention of the people who matter and creates a bond, an empathic leap that says 'you understand where I'm coming from', not just 'you were on my screen'.

“Creative targeting is the best targeting of all.”

The point: Content that an audience recognises itself in selects its own audience and builds connection better than algorithmic targeting.

Variants: One telling adds that focusing on one core audience means few competitors, whereas going general means competing with absolutely everybody.

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Not right, but interestingly less wrong

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Education and business cherish fake determinism, pretending things are quantifiable and predictable. We have evolved mental styles for winning arguments, not solving problems: winning means pretending to be right about everything, while solving might mean 'it could be one of three things, let's find out'. Roger Martin says the mark of a good CEO is acknowledging that business is probabilistic. Rationality is dangerous because a rational argument implies not only that you are right but that everybody else is wrong. In marketing you can rarely say this is the right answer; you can say this is worth trying. Being right is too high a bar: aim to be interestingly less wrong, meaning different from competitors, noticeable and intriguing.

“In marketing you're not trying to be right, you're trying to be interestingly less wrong.”

The point: In uncertain domains, aim for options that are worth trying and different rather than for a single defensible right answer.

Variants: One telling adds Rory's dislike of multiple-choice tests, since real intelligence handles questions whose answer is 'it depends'.

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Nurofen for period pain, banned in Australia

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In Australia, Nurofen sold variants such as 'for period pain' and 'for colds and flu' that were chemically identical to standard Nurofen, in fancier packaging, at a higher price. The Australian Competition and Consumer Commission took them to court and stopped it. To a chemist, fair enough. But if you believe in placebo, paying more for a pill that says 'for period pain' really will make it work better on period pain: the price made it a better placebo and the specific claim made it more effective. The regulator called it cheating because the products were chemically identical, though they were psychologically different. Rory says Nurofen did not go far enough: there should be Nurofen for people whose neighbours like reggae.

“If you can reduce pain with words rather than with chemicals, who's to say that's an invalid thing to do?”

The point: Framing and price can genuinely change how well a product works, value that a purely chemical or physical view counts as deception.

Variants: Rory's other proposed variant is 'I've lost my car keys Nurofen'.

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Ogilvy's trick, the odd long word

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The one thing everyone can learn from David Ogilvy is writing. He was a copywriter first and an author second, so his books are very readable: plain and conversational, like Conan Doyle's prose. But every 57th word or so he throws in something slightly more complicated or highfalutin, just to remind the reader that the writer is not an idiot. Rory has stolen the trick: write extremely plainly, then add the odd sesquipedalian word, which flatters the reader, by signalling you know they are not idiots, as much as the writer. Generally, write far more conversationally than people think they should.

“Throw in the odd sesquipedalian long word just to remind the reader that you're not an idiot.”

The point: Plain, conversational writing persuades best, and an occasional flourish signals respect and credibility without losing the reader.

Variants: One telling exempts Ogilvy's autobiography, Blood, Brains and Beer, which Rory calls terrible: everyone is allowed one bad book.

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Partnerships dilute your brand like friends dilute your personality

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Rory, echoing Mark Ritson, calls brand partnerships among the most underrated tools in marketing, neglected because they are cheap: the more expensive something is, the more people police it. Agencies disliked them because they lost control and earned little commission, and on the client side they fall between stools, so Rory was taught to say partnerships dilute your brand. That sounds reasonable but is nonsense, as stupid as saying having friends dilutes my personality. They work best between a big established brand and a small cool one, such as a gifting app and Marks and Spencer: the big brand earns cool points, the small one gains scale and credibility. Cool and rich are often symbiotic, as rich people tend not to be cool.

“That's as stupid as saying my having friends dilutes my personality.”

The point: Pairing a big, credible brand with a small, cool one trades scale for cool to mutual benefit, an option ignored because nobody earns much from recommending it.

Variants: One telling contrasts a multinational's media day, which drew hundreds of staff to discuss a billion-dollar media budget, with the same firm's partnership that brought in perhaps a billion dollars.

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Paying $60 for a $14 Canadian visa

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Stuck in a hotel room, Rory needed a Canadian eTA visa waiver and clicked Google's top result, a 'government-approved' service. He paid 60 Canadian dollars; the Canadian government charges 14. He still got the document, and the firm was legitimate, but its margins let it outbid the government for his attention. Search for a hotel and you get competitors and travel agents. Without some ethics in the system, in any field the dodgier actors, or simply the highest-margin ones, will have more cash to play with than those playing straight. Being top of Google, he says, is becoming a heuristic for whom to avoid, so he now pays for the Kagi search engine.

“The dishonest actor in a market will have more funds to play with than the honest actor.”

The point: Auction-based attention markets reward margin rather than merit, so intermediaries can crowd out the honest source and erode trust in the platform.

Variants: He was laid up with Covid in one telling and stuck in a French hotel room in the other; one adds that Kagi returned the hotel's own phone number first.

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Rail ads that only train passengers see

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Because rail companies get cheap advertising space at stations, about 99 per cent of railway advertising appears on stations and trains, to people who are by definition already using the train. Posters shout 'go by train' at someone already on a train. Financially efficient, from a marketing point of view complete insanity: if you never take the train, you never see any of it, unless you are some weird pervert who hangs around stations without going anywhere. The real prize is getting someone who never takes the train to take it three times, so next time they at least consider it rather than driving without thinking. Rory's advice: do door drops to people who never use the train.

“There are loads of ads going 'hey, go by train'. I'm already on a train.”

The point: The most valuable marketing moves non-users from zero to one, so do not let cheap, convenient media confine you to existing customers.

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Remove the negatives before adding positives

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Marketers spend far too much time emphasising positives and far too little looking for negatives they could remove. Serve a magnificent meal with one fork prong out of alignment and you cannot enjoy it; a landlord calls this a 'silent irritant'. Negatives are felt but not spoken, so market research never captures them: nobody says 'I was going to eat there but the table was wobbly' or 'the light was too bright', or complains about menus too small to read without a phone torch. Marketers are often the only people looking at the customer's experience rather than the institution's, so they are best placed to spot sludge. Remove bottlenecks first, then add positives.

“We spend far too much time emphasising positives and far too little time looking for negatives we could remove.”

The point: Removing small, unspoken frictions often improves an experience more than adding new benefits, and research rarely surfaces them.

Variants: One telling's example is the 'linguistic sludge' of solar panels: unless you are a qualified electrical engineer, you are baffled within twenty minutes.

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Targeted at the person, hopeless at the moment

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Direct mail is read at a time of your choosing, press ads while you are reading, TV ads while you sit on the sofa in the right mindset. Much brilliantly targeted digital advertising is wonderfully targeted at the individual and hopelessly targeted at the moment: you see it while paying a parking fine or checking your bank balance. Rory likes a company whose banner ads say 'save to wallet' rather than 'click here, buy now'. You will not interrupt paying a parking fine to go shopping, but you might save the discount to look at later. Everyone measures impressions; nobody measures the timescale over which people can act on them.

“Wonderfully targeted at the level of the individual, hopelessly targeted at the level of the moment.”

The point: Reaching the right person at the wrong moment wastes the contact, so design for when and how people can act, not just who they are.

Variants: One telling adds that direct mail is kept about seven days and looked at for over two minutes, and that to Rory's children a physical letter is now an event.

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Teenagers go out because they might get lucky

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Rory's teenage children insist on going out, and he ends up collecting them from a scuzzy bar at 2am. Ask why, and they say they might get lucky: a romance, a better party, a career opportunity, a holiday invitation, a new friend, none of which happens if you stay at home. They understand fame instinctively, without a strategy or a cost-benefit analysis. It works the same for a company: your chief executive's calls get returned, people bring you ideas and partnerships, and staff work for less to have your name on their CV. None of it can be predicted or attributed. Trade fairs used to work the same way.

“If you stay home on Saturday night, there's no positive upside to be had.”

The point: Being visible pays probabilistically through opportunities nobody can forecast, so demanding attribution for each outing undervalues it.

Variants: One telling adds that flowers do not justify their petals bee journey by bee journey: something that works in general still works.

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Telling Philips the air fryer was a gold mine

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About 14 years ago, when Philips was essentially the only air fryer maker, Rory and his boss told them: you are sitting on a gold mine with this air fryer thing, just do some ads and tell people what it is. Philips looked at them as if they were insane. Rory had bought one and become an evangelist, then bought one for his cynical 83-year-old father, who became the valley's leading air fryer evangelist; shortly before he died, an old gent in the pub tapped him on the shoulder, said 'air fryer' and gave a thumbs up. Rory calls Philips brilliant but spectacularly talented at shooting itself in the foot, and its failure to advertise his greatest life disappointment.

“You're sitting on a gold mine here. Just do some ads, just tell people what they are.”

The point: When a product turns its users into evangelists, the job is simply to make it known, and companies often cannot see their own gold mine.

Variants: In one telling he uses the story to encourage people to approach companies spontaneously with a useful idea, even unasked.

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The air fryer, wrong name, wrong shelf

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Rory's proof that a brilliant product can be sabotaged by its marketing is the Philips Airfryer, one of the best things Philips ever made. Its whole point is that it uses no fat, or just enough to fool your brain into thinking the food was fried. Yet they called it a fryer, so the health-conscious people who would love it think 'people like us don't eat fried food'. Worse, shops put it next to the deep-fat fryers, where nobody trying to improve their health will ever look. They reached people with the wrong phraseology and put it in the wrong place. Give it a French name, Rory says, and people would have queued round the block.

“You've just reached people with the wrong phraseology and you've put it in the wrong place.”

The point: A name and a shelf position place a product in a mental category, and the wrong category repels exactly the buyers it suits.

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The East Berlin hotel that only shows The Big Lebowski

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One of the five best hotels Rory has ever stayed in is in former East Berlin, in what had been a police station or prison, its rooms converted from cells. They are spartan: one wall hanging, a bed on a platform about three feet below the ceiling above the shower, and a black-and-white television showing The Big Lebowski on a continuous loop. But its coffee shop serves one of the best flat whites he has ever had. Arrive expecting a Marriott and it is the worst experience of your life; arrive expecting a cool East Berlin experience and it could be the best hotel of your life. The angry reviews come from guests who expected the Marriott.

“If you do one thing brilliantly, actually people are prepared to satisfice with everything else.”

The point: Experience is judged against expectation, so do one thing brilliantly, set expectations honestly, and people will happily accept basics elsewhere.

Variants: Rory offers it as a candidate for a guide to the world's most polarising products.

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The hotel lift that lets you choose the music

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In the Lydmar Hotel in Stockholm, the lift has a row of buttons labelled not by floor but by genre: funk, rhythm and blues, country, rock and roll. Guests choose the lift's soundtrack. Rory guesses it cost 500 to 1,000 pounds at most, yet it does more to brand and differentiate the hotel than the big chains boasting of enormous refurbishments, which serve only to make your room resemble every other hotel room you have ever stayed in. It is more memorable than all of them.

“Renovated at a cost of 500,000 dollars, in order to make it resemble every other hotel room you've ever stayed in.”

The point: A cheap, distinctive detail can differentiate a brand more than a huge investment that merely meets the category norm.

Variants: In one telling the genre buttons replace the floor numbers (garage, funk, rhythm and blues); in the other they sit in a second row beside them. The boasted refurbishment ranges from $500,000 to $25 million.

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The Magic Castle Hotel's popsicle hotline

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The Magic Castle Hotel in Los Angeles is a 1940s apartment block with undistinguished architecture, nothing special or fancy, yet it ranks near the top of TripAdvisor's LA hotels. The staff are apparently brilliant, but its main trick is the Popsicle Hotline: a red telephone by the pool. Children pick it up, ask for popsicles, and someone immediately comes out with a tray of free ice lollies to choose from. It is gratuitous, but if you have young kids they love it, and it is what you talk about ten years later. Creating such a feature, Rory says, means being prepared to be a bit silly and to ignore your finance director.

“You've got to be prepared to ignore your finance director who will say it is not in our service level agreement to provide free ice cream.”

The point: A playful, gratuitous signature feature can lift an ordinary business far above better-resourced rivals.

Variants: Its TripAdvisor ranking is around eighth in one telling and always in the top 20 in the other.

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Use old media, your competitors won't copy you

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At a pub lunch, the marketing director of a big pub company told Rory they spend £6 million a year on leafleting. Finance goes crazy, saying it should all be digital, but long-term measurement shows it works: it is an effectiveness measure, not an efficiency one. Rory's advice to entrepreneurs is to use physical direct mail or the telephone, because even when you succeed your competitors will not copy you: they are a bunch of geeks asking why anyone would use 19th-century technology. The unfashionability of the channel protects the advantage it gives you. A lot of marketing is game theory: what is nobody else doing? Do that.

“A lot of marketing is game theory. It's just what's nobody else doing? I'll do that.”

The point: Effective but unfashionable methods give a durable advantage, because rivals' ideology stops them imitating you.

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Vegan leather, what we used to call plastic

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Rory points to a piece of alchemy in Tesla: its seats are covered in vegan leather. In his 1970s childhood that would have been called plastic seats, as in a Vauxhall Viva. He grants the modern material is surely better for breathability and cleaning, but calling it vegan leather signals you are doing it for the planet, turning a compromise into an aspirational choice, one of the cleverest reframings you can do. Priority boarding works the same way: it only means sitting on the plane longer, though you do get the overhead locker, yet it feels like a privilege because it is marketed as one.

“What you're doing there is making it a choice, not a compromise.”

The point: Renaming a cheaper attribute as a virtuous or exclusive choice converts a perceived downgrade into an upgrade.

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Virgin Atlantic's 'stolen' cruet set

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Virgin Atlantic Upper Class served salt and pepper in little aeroplane-shaped cruets. They are cute enough that everyone has the same mischievous thought: I reckon I can pocket these. But turn one over and engraved underneath are the words 'Stolen from Virgin Atlantic Airways Upper Class'. The airline anticipated your move. Years after you have forgotten whether you flew on a 777 or an Airbus, you remember those words and that experience, which cost the airline almost nothing.

“Stolen from Virgin Atlantic Airways upper class.”

The point: A witty detail costing almost nothing creates more delight and memory than expensive features, especially when it anticipates what the customer is thinking.

Variants: In one telling the base says the set was 'pinched' rather than 'stolen'.

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When a man marries his mistress

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Rory borrows, with apologies for its political incorrectness, Sir James Goldsmith's line that when a man marries his mistress, he creates an immediate job vacancy. Likewise, when everyone over-commits to one course of action, it creates a vacancy in the opposite direction. When a whole market heads towards artifice and one idea of beauty, brands benchmarking against each other leave a vacant space, which Dove arguably occupied and then held with a consistency that now marks a brand out. Politicians are all media-trained to say the same five things and never admit uncertainty, rational alone but identical together, so anyone who sounds different gets noticed. Being different is spectacularly cheap, but it needs courage.

“When a man marries his mistress, he creates an immediate job vacancy.”

The point: When everyone converges on one course, the opposite position becomes cheap to occupy for whoever has the nerve.

Variants: One telling applies it to Dove, which Rory was peripherally involved with at the start; the other to politicians, naming Trump, Farage, Boris Johnson and Jeremy Corbyn as those who got noticed.

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When Amex advertised on TV, direct mail worked better

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Working on American Express shaped Rory: it was both a great emotional brand and a direct marketing powerhouse. He spent 20 years in direct marketing, which resented brand advertising's bigger budgets, but learned that nothing is harder than direct-marketing a product nobody has heard of. Whenever Amex advertised heavily on TV, direct mail sent at the same time had a massive multiplier effect on response. Les Binet's Cravendale data showed the same: TV and mail together doubled the sum of their separate effects. Since about 97 per cent of potential customers are not in market at any one time, brand and activation are a barbell of long and short, not rival camps.

“There's nothing harder than direct marketing a product that nobody's ever heard of.”

The point: Brand fame and response activity multiply rather than add, so measuring or funding them separately misleads.

Variants: One telling cites Binet and Field's rough split of 60 per cent brand to 40 per cent activation.

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When jets killed the Blue Riband, Cunard sold the voyage

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Transatlantic liners used to compete for the Blue Riband, awarded for the fastest crossing. Then Boeing and the jet engine made speed irrelevant overnight: planes did it in a day. Cunard decided it could no longer sell on speed and had to find another comparative strength, and to some extent invented the cruise industry by getting people to focus on why the journey itself was enjoyable. A campaign saying the Queen Mary is 5 per cent faster would be ridiculous: you are paying for the journey as much as the destination, so faster means worse value. The same move works for Eurostar, still slower than flying: focus on the quality of time, not its duration, and Eurostar wins.

“Get people to focus on the quality of time, not the duration, and the Eurostar wins.”

The point: When you cannot win on the obvious metric, shift the comparison to a dimension where you are strong, such as the quality of time rather than its length.

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You do direct marketing to learn, not to make money

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Rory grew up in direct marketing, which is why he loves experimental platforms. He recalls Drayton Bird, the doyen of British direct marketing and a famously hard-headed businessman, saying something that surprised him: you don't do direct marketing to make money, you do it to learn. The valuable output of creative testing is the discovery, which you can then replicate at scale. The short-term return on any single test matters far less than finding something that works.

“You don't do direct marketing to make money. You do it to learn.”

The point: The main payoff of cheap, testable channels is the knowledge they generate, so judge experiments by what they reveal, not their immediate return.

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'As seen on TV' means it's now a thing

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Rory suggests a lot of advertising works by creating a social norm: 'they've put this on telly, so it's a thing'. That is why people used to print 'As seen on TV' on product packaging. On its face it was a completely irrelevant sentence, but it said that the product had been mentioned on TV and so had reached a level of adoption where it was now a thing.

“If this is mentioned on TV, it has reached the level of adoption where it's now a thing.”

The point: Mass advertising signals that a behaviour is already normal, which drives adoption.

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'If you can't find the words, find the gift'

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John Lewis's Christmas ad about a dad who has long left the dance floor did not quite land for Rory, whose idea of fun is not standing in a field shouting 'woo'. But the line 'if you can't find the words, find the gift' is copywriting for the ages. He hopes it runs next year and the year after. Christmas advertising has become a series of Super Bowl ads lacking ritual. A line that good can launch a thousand executions; with 27 radio ads, five will really chime.

“If you can't find the words, find the gift is like one for the ages.”

The point: A great line deserves to become a repeated ritual rather than a one-off spectacle.

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'If you want to get ahead, get a hat', the lost art of category advertising

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Dave Trott says challengers advertise the brand, leaders the category. In the 1930s hatmakers' trade bodies levied a percentage on members' sales to fund 'If you want to get ahead, get a hat': hats in general. 'Got Milk' did the same. Electric cars need this. Instead every EV ad says our range beats theirs, making range, the category's only negative, the point of comparison, like tea brands advertising 'our tea tastes less bad'. A petrol car has hundreds of moving parts, a Heath Robinson marvel; an electric motor just turns a shaft. As carmakers say, the best part is no part.

“It's a bit like if tea drinkers wanted more people to drink tea and every ad said our tea tastes a bit less bad than their tea.”

The point: When the real choice is between categories, brands competing on the category's weakness hurt the whole category.

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'Kamala is for they/them. President Trump is for you'

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Asked for clever low-budget work, Rory cites a Trump campaign ad from a very small agency, while stressing he does not support the cause: 'Kamala Harris is for they/them. President Trump is for you.' He argues we should separate the quality of persuasion from the cause behind it, ethically dubious as that gets. After all, two of the greatest campaigns of all time were for diamonds and Marlboro cigarettes. In one sentence, an unknown copywriter did something bloody clever.

“Two of the greatest campaigns of all time were for diamonds and Marlboro cigarettes.”

The point: Judge persuasive craft separately from the cause, or you will fail to learn from effective work.

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'Let's get pizza' and the Hawaiian problem

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Asked for the best Tinder opener, Rory passes on a colleague's: simply 'let's get pizza'. It works because pizza is almost universally popular, a presumptive close that pulls in lots of cold prospects. The catch came at the close of the sale: when she revealed her favourite was Hawaiian, with pineapple, about half of them backed out. His supplementary advice: whatever you do, don't admit you like Hawaiian pizza.

“Do not admit that you like Hawaiian pizza, because it's a massive turn-off to a significant body of people.”

The point: A broad, low-commitment offer wins responses, but one polarising detail can lose half the pipeline.

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'The Gentleman Farmer', a genius piece of rebranding

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A 1776-era book read and reread by both George III and George Washington was The Gentleman Farmer, about improving agriculture on scientific, rational principles. It seems unexciting now, but George III was ridiculed as 'Farmer George', and the idea that a peasant activity should interest people of high stature was radical. Rory considers the very name 'the gentleman farmer' a genius piece of rebranding.

The point: Attaching status to a low-status activity through a name can change who is willing to pursue it.

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1-800-OPERATER

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In the days of lucrative reverse-charge calls in the US, AT&T advertised 1-800-OPERATOR heavily. An American genius figured that 20 per cent of Americans cannot spell operator, so he bought 1-800-OPERATER, spelt E-R. Every time AT&T ran a multi-million-dollar campaign promoting its number, he picked up about 20 per cent of the calls for free.

“He picked up for free 20% of the calls.”

The point: Anticipating predictable human error can let you free-ride on a rival's marketing spend.

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A brand is not the heated steering wheel

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You have a personal brand whether you like it or not, because people will form an impression of you and your worth from all manner of inferences and heuristics. That is why marketing is not the heated steering wheel of business, a nice optional extra; it is essential, because the worst thing is to build a great product and fail to present it convincingly. Strategy is partly the art of sacrifice: Rory's own brand includes knowing he would be a poor CEO, bad at administration and hard decisions, but useful for oblique suggestions, reframing problems and connecting people.

“The brand is not the heated steering wheel of the marketing world.”

The point: Perception forms regardless, so shaping it is essential rather than optional, for companies and individuals.

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A free pair of socks with anything you buy

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One of the most underexplored tools in marketing is generosity. Rather than 'free if you spend £9 or more', say 'a free pair of socks with anything you buy'. Being disproportionately generous changes the nature of the customer's relationship with the brand. It is not tested nearly enough, not because it does not work but because it is slow to prove. Encouraging customers to be generous to their friends is equally underexplored.

“Generosity is one of the most underexplored tools in marketing.”

The point: Unconditional generosity builds relationships that conditional offers cannot, but its slow payoff deters testing.

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A great beer that happens to have no alcohol

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The explosion of decent alcohol-free drinks in pubs is something government would have fantasised about for public health and road safety, yet it happened spontaneously. The founders of Lucky Saint told Rory that everyone before them sold alcohol-free beer as 'it's alcohol-free, and it's beer'. They said 'this is a great beer, and by the way it's got no alcohol', and believe that framing was decisive. Rory adds that Guinness Zero may deliver some of the conviviality of drinking by association, like the 'dry drunk' effect, without the incapacity.

“This is a great beer. And by the way, it's got no alcohol.”

The point: Lead with the benefit and present the virtuous attribute as a bonus, not the headline.

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A great brand should be incomparable

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Dave Trott shared an image of a Tetris block vanishing into a perfect hole: 'when you fit in, you disappear'. Roger Martin wrote 'Benchmarking is for losers'. Worse, digital marketers benchmark against metrics supplied by Google and Meta; Rory likens it to toxoplasmosis, an infection that makes the brain pursue someone else's interests. Meta's auction needs seven or eight brands bidding for the same customer until their margin is sucked up. So add a freedom to choose your own metrics. A great brand should be incomparably good on some facet tangential to what the market pursues.

“When you fit in, you disappear.”

The point: Shared metrics and benchmarking drive convergence and platform dependence; distinctiveness requires your own measures.

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A more efficient ad may be a worse ad

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A digital client called direct mail 'annoyingly effective'. Digital businesses believe their job is to dematerialise and automate everything, because marketing's focus has shifted from effectiveness to efficiency, on the assumption that more efficient means more effective. That holds in some engineering: a more efficient electric motor is probably a better motor. But an ad that reaches the same people with the same message at lower cost may be a worse ad, partly just because it is less expensive.

“An ad that is more efficient may be less effective.”

The point: Cost per contact is not the same as persuasive power; cheapness can weaken the message.

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A podcast audience of 50,000 is a stadium

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Rory did many podcasts in lockdown because there was nothing else to do, and because even an audience of a hundred has a network effect. We grew so used to broadcast TV numbers that we dismiss 20,000 listeners, but a podcast audience of 50,000 is a stadium; 80,000 is the Melbourne Cricket Ground, Taylor Swift numbers. The biggest physical audience he has addressed is 2,000. His odd street fame, with strangers demanding selfies, proves that 100,000 people is a lot.

“A podcast audience of 50,000, that's a goddamn stadium.”

The point: Mass-media benchmarks make us undervalue audiences that are huge in human terms.

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Ad agencies are like pandas, they only eat one thing

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Ad agencies, Rory says, are like bloody pandas: they only eat one thing, which is a brand communications budget. That annoys him massively, because not every problem is a brand problem. There's scope for creativity across all the Ps: in pricing, in product, and in channel, which doesn't even begin with a P. Some decisions are brand decisions, like Persil or Ariel at the shelf; but tea versus coffee, or electric versus petrol, are category decisions.

“Ad agencies basically are like bloody pandas. They only eat one thing, which is a brand comms budget.”

The point: Defining every problem as a communications problem ignores creative solutions in pricing, product and channel.

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Advertising archaeology, comic strips as manga

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Rory urges entrepreneurs to do advertising archaeology. Ad creatives, like engineers, want to impress each other with the new, so the industry discards things that never stopped working: long-copy press ads, direct mail, jingles (now called sonic branding). Until the 1960s many ads were cartoon strips with speech bubbles; Ogilvy said it was the most readable form of print, since people read comic strips first. Nobody does it now, yet kids love manga, so reviving it might be the coolest thing you could do. As Ogilvy said, you advertise not to a standing army but to a moving parade.

“You're not advertising to a standing army, you're advertising to a moving parade.”

The point: Old techniques abandoned for fashion rather than failure are an untapped source of innovation.

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Advertising as the bun, fries and lettuce

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Rory borrows a definition from economists Gary Becker and Kevin Murphy, who declined to see advertising as mere persuasion and instead called it the creation of complementary goods. A raw burger patty fetches little; cooked, a bit more; served with a bun, fries and lettuce it commands a good price. Advertising, through entertainment, media or other means, is the bun and the fries around the core product, helping it be enjoyed and priced higher. Free peanuts in a bar, or popcorn with a film, work the same way. Rather than asking how to bludgeon buyers with arguments, ask what your product's ketchup is.

The point: Treating advertising as adding complements that raise enjoyment of a product generates better ideas than treating it as persuasion.

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Advertising directs attention to what you're good at

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Conjoint analysis tells you what is currently important to customers, but advertising and communication can change how much attention one attribute gets. Quite often advertising is the act of directing people's attention to something you're good at, to distract them from something you're not so good at. By garnering attention you make the thing attended to feel more important. So always ask: this is how it stands, but where could we move it? Is there an underappreciated comparative strength we could highlight?

“Advertising is the act of directing people's attention to something you're good at to distract them from something you're not so good at.”

The point: Attribute importance is not fixed; communication can make your strengths matter more.

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Advertising has lost the plot by obsessing over targeting

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Rory thinks the whole advertising industry has totally lost the plot: it has become obsessed with the part of advertising that is a media and targeting optimisation process. And if a business assumes its only job is to be the best at something, and defines itself by its competitors, it will do even worse, because it is trying to be better at something many people are already good at.

“The whole advertising industry has totally lost the plot.”

The point: Optimising delivery and benchmarking against rivals crowds out the creative work of being different.

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Advertising is 20 per cent of the waterfront

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Even off commission, agencies have a muscle memory that says if an engagement does not produce communication, it has failed. Rory worries marketing is too identified with marcoms. It is the deployment of psychological insight and creativity to solve business problems, sometimes involving media and sometimes not: package design, ingenious pricing, framing, even HR. He founded the behavioural science practice partly to have conversations reaching the CEO or COO. Nothing makes him happier than a great Ogilvy ad, but that is 20 per cent of the waterfront.

“Nothing makes me happier than to see Ogilvy produce a really good ad, but it's 20% of the waterfront.”

The point: Marketing's biggest opportunities lie beyond advertising in pricing, design and operations.

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Advertising lets you make outrageous assertions

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Introducing an example he admits he has no evidence for, Rory jokes that the great advantage of working in advertising rather than academia is that you can make outrageous assertions, and in his trade this is considered something of an accomplishment.

“The great advantage of working in advertising, not in academia, is you can make outrageous assertions and it's considered something of an accomplishment.”

The point: Advertising's freedom to speculate is a licence to generate hypotheses that academia would not dare voice.

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Advertising trains to drivers stuck in traffic

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Digital media lets you communicate in context. Rory cites Google's insight that the real target is often a moment rather than an audience. His example is a roadside digital poster for Virgin trains shown to drivers sitting in a Friday traffic jam, offering a cheap fare home to mum's Sunday roast. The message changed with traffic conditions, time of week and season, giving a different reason to take the train depending on the situation the driver was in.

The point: Reaching people at the moment a decision is felt most acutely can matter more than reaching the right demographic.

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AIDA becomes AIDVA, add verification

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With so much on screen now fakeable, Rory joked that the classic AIDA model, attention, interest, desire, action, will become attention, interest, desire, verification, action. Before acting on anything material, people will have to check that Tom Cruise really is a massive fan of Domino's Pizza rather than it being an AI-generated image, made not necessarily by the advertiser. Scam ads already promote products for clients who never requested or endorsed them.

“The new model in an AI age is going to be attention, interest, desire, verification, action.”

The point: As fakes proliferate, trust signals and verification become a necessary stage in persuasion.

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All the world's music in the car, and we listen to talk

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Had someone told Rory in 1994 that by 2025 his car would hold the whole of the world's music, he would have found it surreal: it would take a truck full of vinyl. Had they added that he would spend most journeys listening to people talking, he would have told them where to go. He drove in on an audiobook and will drive home on a podcast. His only conclusion: TV lost interest in conversation long before the public did, though conversation is perhaps half a million years old.

“You'll have a car with the whole of world music in it, but most of your journeys you'll spend listening to people talking.”

The point: Media makers can abandon formats people still deeply want, leaving room for newcomers.

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An agency called Diabolically Obvious

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Someone, Rory says, should start an ad agency called Diabolically F***ing Obvious, or DFO. Its whole approach would be: this product is very good, nobody knows about it, we are going to tell people about it in a nice way, end of. Agencies need to be clever because some problems demand extraordinary creativity, but he wonders whether the industry has a fear of the obvious, partly because it must look clever to justify its existence.

“This product is very good, nobody knows about it, we're going to tell people about it in a nice way, end of.”

The point: Agencies' need to look clever can blind them to simple, obvious solutions.

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An electric car runs on anything

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A point Rory thinks nobody gets across: a petrol car runs only on petrol, but an electric car can run on any energy source, coal in China, sunshine from your roof, or home-grown energy; he guesses his is about 23 per cent nuclear-powered, charging at night. Nineteenth-century American trains heading west burned abundant eastern coal, then switched to timber halfway across. That flexibility is an advantage regardless of climate views, and could reach the climate-sceptic audience who would love EVs for performance but are terrified of looking woke.

“The electric car can run on any energy source you like.”

The point: Reframing a green product around flexibility and performance can reach people repelled by environmental messaging.

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An extra string to our bow

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Agreeing with Tom Goodwin that digital tools were useful, Rory says digital added an extra string to marketing's bow. But people became so fascinated with the new string that they almost threw away the bow, and the pre-existing string with it. He admits it is a terrible analogy.

“People got fascinated with the string until the point where they almost threw away the bow.”

The point: New tools should supplement proven methods, not replace the foundations that made them useful.

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Angostura's label is too big by mistake

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Rory learned from John Evans of Uncensored CMO the truth about Angostura bitters' famously oversized label. The story that it is big to catch drips is a post-rationalisation. In fact the label designer and the person who commissioned the bottle were not talking to each other, so the labels ordered were too big for the bottle, and they thought 'sod it'. Now it is the single differentiating feature of the brand: a pink gin is not proper without a bottle whose label is too big.

The point: Accidental quirks can become a brand's most valued feature, with rational explanations invented later.

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Ask for advice, not opinions

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Rory notes that no market research company he knows does this, but if instead of saying we want your opinion you say we'd like your advice, it completely changes the nature of a research question. These contextual variations are the absolute frustration of behavioural scientists, but meat and drink to marketers.

“If instead of saying we want your opinion you say we'd like your advice, it completely changes the nature of a research question.”

The point: Framing the respondent's role changes what they tell you.

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Ask what the old thing could do that the new can't

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Physical direct mail is very effective, all the more because competitors won't copy it for fear of looking old-fashioned. Digital transformation is partly a herd effect among marketers desperate to look contemporary. When something new arrives we stress what it can do that the old thing couldn't, and forget to ask what the old thing could do that the new can't. Digital's obsession with micro-targeting and minimising wastage ignores delayed effects: easy for ASOS to measure, impossible for Unilever. The comparison was biased, helped by Google and Meta making money from micro-targeting but not from fame or trust.

“We forget to ask the question what could the old thing do that the new thing couldn't.”

The point: New media are overrated because comparisons ignore what old media uniquely did well.

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Ask what's stopping them

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The most important thing marketers can do, Rory says, is ask why someone would do something, and also the opposite question: what is stopping them? There are already a lot of people who would buy your product if there were not some bottleneck or psychological obstacle in the way. Is the obstacle that nobody has heard of it, or that people think it is weird? Starting from the negative you need to remove is really useful, including when writing a brief.

“What's stopping them?”

The point: Removing the barrier to an existing desire often beats creating new desire.

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Attention spans aren't dwindling, they're polarising

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Rory does not think attention spans are dwindling; they are polarising. There are no trends, only vectors, so there is always a counter-trend: TikTok and info-snacking, but also people paying extraordinary attention for long periods to things that interest them, like collective ADHD, which also brings intense concentration. The anomaly was TV from 1955 to 2005, when every programme was roughly the same length. Short forms always existed: a joke was effectively the TikTok of the 1980s, and symphony lovers derided pop songs as absurdly short.

“I don't think attention spans are actually dwindling. I think they're polarising.”

The point: Expect growth at both extremes of a behaviour rather than a single direction.

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Avoiding M&S because of the other customers

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Some brands suffer not from the product but from user imagery. Marks and Spencer told Rory that about 10 percent of the population don't go in, not because they dislike the food but because they don't like the people in there. Non-owners assume electric car drivers are smugly sneering at 'dinosaur juice', which may have been true of Prius buyers, but owners of high-performance EVs are often car people who'd happily burn tyres for extra performance: there may even be an inverse correlation with caring about the environment.

“About 10 percent of the population don't go into Marks and Spencer, not because they don't like the food but because they don't like the people in there.”

The point: Who a brand seems to be for can repel customers regardless of the product.

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Barclaycard's bumbling agent became Johnny English

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Paul Feldwick's honest account of BMP's Barclaycard campaign shows it was a series of lucky accidents. The team kept trying to write funny scripts; someone in a research group said: you sometimes succeed and sometimes fail, just get Rowan Atkinson, he's funny in everything. With Atkinson came John Lloyd, and the bumbling secret agent with his sidekick Bough was born, later the Johnny English film franchise; Ted Lasso also started as an ad. Because BMP ran its own research, it could iterate on the fly. Case studies usually rewrite such stories to look logical.

The point: Great campaigns emerge from iteration and serendipity, which tidy post-hoc case studies conceal.

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Be amygdala-centric, not just customer-centric

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Rory argues the last great untapped source of enduring competitive advantage is understanding the real why behind what people do. That means being not just customer-centric but amygdala-centric: focusing not only on the parts of the customer's brain that do the talking and post-rationalising, but equally on the parts that cannot talk, are opaque to introspection, and influence behaviour without touching our reasoning.

“It means not just being customer-centric, it means being amygdala-centric.”

The point: Real advantage comes from serving the unconscious drivers of behaviour, not just what customers say.

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Be number one in a smaller category

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Rory still rates Ries and Trout's Positioning among the best marketing books. Winner-takes-all effects mean there is little point being number three, four or five in a category; better to differentiate and create a category of your own, since being number one in a small category beats being fifth in a big one. Nassim Taleb argues globalisation intensifies this. Authors' average inflation-adjusted earnings are about what they were in 1955, but take out Dan Brown and J.K. Rowling and the rest are about 30 per cent worse off.

“It's better to be number one in a smaller category than number five in a big one.”

The point: In winner-takes-all markets, differentiation into a new category beats competing for a minor place.

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Better product copy lifts conversion by 40 per cent

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Quality of writing is massively underrated online. Amazon, Rory says, is a copywriting disaster: pages list specifications (though he admits that anything with USB-C makes him buy it, and he dreads USB-D). In one online retailer, simply improving the body copy describing products, writing a nice emotional description rather than "205 mm by so-and-so", raised the conversion rate by about 40 per cent. AI now lets you start with something pretty good and have a human make it much better.

“Quality copywriting is totally underrated in the digital space.”

The point: Emotional, well-written descriptions sell far better than bare specifications.

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Beyond Meat, more meaty than meat

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Nearly every vegetarian product used the language of self-denial and of what it does not contain. Beyond Meat, a company worth over a billion dollars, chose a name implying it is somehow meatier than meat itself. Rory calls this, accidentally or deliberately, a piece of marketing genius: offer a story about the good choice that includes a personal benefit, rather than a hair shirt.

The point: Framing a virtuous product as a gain rather than a sacrifice broadens its appeal.

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Brand bounce, Caterpillar boots

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A brand extension stays within its tramlines, like launching a light variant. A brand bounce jumps to a completely different category, using the brand as instant credentials. Caterpillar's cheapest machine cost perhaps half a million dollars, yet it went into workwear and boots, as did JCB: a maker of 20-million-dollar earth-movers patently knows about workwear, so it has more credibility from day one than a newcomer. Procter and Gamble saw that Vidal Sassoon's fame exceeded his hairdressing business and licensed his name for premium shampoo. Rory thinks Ogilvy should bounce into e-learning, and wonders why nobody built a James Bond theme park.

“A brand bounce is where you go into a completely different category and use your brand as instant credentials.”

The point: Brand fame can be a licence to enter unrelated categories with borrowed credibility.

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Brand is the blank tile in Scrabble

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Rory thinks the word brand is hugely important but fundamentally unhelpful. It is like the blank tile in Scrabble: you can use it to mean anything you want in any given sentence. And finance people either find the word scary or assume it is not their responsibility. Talking about behavioural change instead gets conversations to take root, partly because you can predict the value of a change in behaviour.

“It's a bit like the blank tile in Scrabble: you can use it to mean anything you want it to mean.”

The point: Vague marketing vocabulary alienates the rest of the business; behaviour is a shared, valuable language.

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Brands need both predictability and pleasant surprise

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Asked how a brand can be antifragile, Rory returns to his line that the opposite of a good idea can be another good idea. Some parts of a brand experience should be optimised for predictability: 'same as it ever was', like the glorious familiarity of the Amazon website. Others should be optimised for pleasant surprise, making people say 'wow, I never expected that'. It is a version of Taleb's barbell approach: two extremes rather than the middle.

“There are occasions with a brand where you optimise for predictability, and there are occasions where you optimise for pleasant surprise.”

The point: Combine reliable familiarity with deliberate moments of surprise.

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Brian in the onion van

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Ocado customers get a bizarre text saying their delivery will be made by, say, Brian in the onion van, because each van is named after a fruit or vegetable. Because it's idiosyncratic and weird, we notice it, and any other Ocado shopper knows those texts. It works like a quirk of personality, the kind of thing finance people would strip out as extraneous.

The point: Small idiosyncrasies give a brand a personality people remember and share.

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Bring back hotel luggage stickers

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With pubs and restaurants you leave with nothing tangible, unlike buying jeans or groceries. Rory has always thought hotels should bring back the luggage stickers that once covered old suitcases, 'Shepheard's Hotel, Cairo' and so on, giving guests a small, tangible proof of the experience at almost no cost. The landlord says that is why people constantly take his beer mats, and he loses 900 Guinness glasses a month. Rory concludes that little symbolic keepsakes are probably quite useful.

“Oddly, little symbolic keepsakes are actually probably quite useful.”

The point: Experiences gain value and spread when customers can take away a cheap physical token.

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Bring back the factory tour

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Discussing how advertising people used to immerse themselves in a client's business, attending supplier meetings and retailer conventions, Rory cites his Ogilvy colleague Jules Chalkley, a creative director, whose plea is: bring back the factory tour. The factory tour delivered the kind of insights that desk research and data never do.

“Bring back the factory tour.”

The point: First-hand exposure to how a product is made yields insights unavailable from briefs and dashboards.

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Britain's strange prejudice against frozen food

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Asked by Butternut Box, a frozen dog food brand facing 'fresh' rivals, Rory points to Britain's ridiculous vilification of frozen food. In France, Picard sells high-end frozen meals. His theory: Marks and Spencer pioneered ready meals as chilled, so people inferred fresh was better; frozen, being cheaper to distribute, was cheaper, so people inferred it was worse. Yet most 'fresh' fish has been frozen and thawed. Ad budgets are brand budgets, but this is a category problem: frozen food makers could jointly run PR saying the best way to preserve food is not chemicals but freezing.

“All budgets are brand budgets. But a lot of problems are category problems.”

The point: Some perceptions can only be shifted collectively by a category, not by one brand.

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Brown paper bags and American grocery

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British grocery retail is arguably the best in the world because it is so differentiated: American grocery is all about price, British about brand. Rory wonders whether US grocery history would differ had Americans carried shopping home in branded bags, not brown paper ones. He assumed TV's brown bags were a convention, like 555 phone numbers, to avoid showing brands, until he shopped in the US and found himself carrying one. The consequence, as the conversation notes, is that your neighbours cannot see where you shop, so the social signal of the bag is lost.

“Would the entire history of American grocery retail be completely different if they took their shopping home in branded containers?”

The point: Visible branding in everyday life creates social signalling that supports differentiation beyond price.

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Brunch, where dogs are always welcome

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Rory admires a Westerham restaurant called Brunch. What food does it do? Self-evident: you know you'll get eggs Benedict. Its sign says Brunch, where dogs are always welcome. Rory thinks it's absolutely perfect because it answers the only two questions anyone might ask of a restaurant: what sort of food can I get, and can I bring my dog? Sometimes a single sentence has a transformative effect.

“It answers the two questions anybody might ask of a restaurant.”

The point: The best positioning answers the customer's real questions in the fewest words.

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BT Kent, make it local

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Rory once advocated, unsuccessfully, that BT should call itself something like BT Kent when upgrading people's broadband: make the communication local and you get ten times the attention. You do not need daft personalisation that looks obviously silly, like 'great news for everybody in the Sutherland household'. But if a direct mail envelope looks locally relevant, everybody wants to know.

“If you actually make it look locally relevant, everybody wants to know.”

The point: Local relevance earns attention that crude personalisation does not.

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Buc-ee's and the retailer Sam Walton wouldn't fight

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Back from Texas, Rory kept finding brands everyone loved that turned out to be family-owned. Buc-ee's, a chain of enormous, magnificent petrol stations, is sometimes called the Texas Disneyland. H-E-B is that American rarity, a genuinely good mid-market retailer, where usually you either buy Cheez Whiz at 30 cents off or go to Whole Foods and mortgage your house. It is so good that, he heard, Sam Walton decided not to bother competing against it.

“You either sell everything on price or you go to Whole Foods and you basically mortgage your house.”

The point: Family ownership lets businesses build distinctive, beloved formats that quarterly-driven rivals avoid.

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Bud Light's personalised can was not an ad

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Rory tries to be even-handed about Bud Light and Dylan Mulvaney. As he understands it, a young marketer ran an influencer campaign sending personalised cans to lots of people with social followings, a perfectly reasonable thing to do. The press, for its own convenience, treated it as if Mulvaney had become the new face of Bud Light. When The Telegraph rang him, neither he nor the journalist could find anything to get angry about; they found Mulvaney pretty amusing. Much of the scandal was synthesised by the right.

“Neither the Telegraph journalist nor I could see anything to get angry about.”

The point: Brand controversies are often amplified versions of minor tactics, shaped by media convenience.

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Call Ron, I do the small jobs the builders don't want

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When Rory moved to Westerham, a local handyman ran a postage-stamp-sized ad in the parish magazine every month: Call Ron, a phone number, and I do the small jobs the builders don't want. Rory told Ron it was a perfect ad: who he is, how to reach him and what he does, and everyone immediately thinks of five jobs, shelves, a repair, a trip to the dump, that they can't ask a builder to do. Ron said it had worked really well for nine years and never stopped working.

“I do the small jobs the builders don't want.”

The point: Defining yourself by the gap others leave makes your offer instantly memorable and actionable.

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Cars give blokes something to talk about

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Exploring electric cars, Rory has decided a large function of the car is to give men something to talk about with each other that does not involve emotions. Tesla is doing a great job here, adding gizmos like fart mode and dog mode, so people can say 'what you really need is the new Supercharger they've just opened on the B-road', a comfortable range of male conversation that touches nothing deep or human.

“A large function of the car is to give blokes something to talk about which doesn't involve emotions.”

The point: Products often serve social functions, such as safe conversation, that are invisible in their specifications.

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Cartier and Jaeger-LeCoultre sell to both sexes

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Rory has tragically got into watches. Two of the most successful luxury watchmakers, larger than their prominence in most people's minds would suggest, are Jaeger-LeCoultre and Cartier, because both men and women buy them. Women wear Rolexes far less than men do, and he has never seen a woman wearing an enormous IWC pilot's watch. These two brands found another market by removing a bottleneck.

The point: Brands that remove a barrier for a second audience can outgrow more famous rivals.

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Christianity as Judaism's diffusion brand

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Rory jokes that his marketing career and his wife's role as an Anglican curate do not always mix well. In particular, she does not like it when he describes Christianity as Judaism's diffusion brand: the DKNY to the more exclusive Donna Karan.

“She doesn't like it when I refer to Christianity as Judaism's diffusion brand.”

The point: Brand architecture concepts can illuminate even religion, to his wife's dismay.

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Churchill didn't need a skeleton suit

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Rory cites John O'Farrell's book Things Can Only Get Better. At CND demonstrations someone would dress in a clown or skeleton suit and act out being felled by a nuclear missile as performance art. O'Farrell observed that when Winston Churchill warned that a Nazi triumph would mean the end of Western civilisation, it was not necessary for him also to dress up in a skeleton suit and fall to the ground at the end of the speech.

“It was not necessary for him to also dress up in a skeleton suit and fall to the ground.”

The point: Theatrical excess undermines a serious message rather than reinforcing it.

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Cinemas should pool money to sell cinema-going

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Marketers, as Dave Trott says, always think 'the answer's brand, now what's the question?' Brand primacy depends on where brand sits in the decision. With cinema, the sequence is: I want to go to the cinema, what's on, which of two nearby cinemas do I prefer. Geography, past experience and price all play a part (though his father once drove from London to Cambridge to see The Wild One). Rather than fight rival brands, cinema chains should pool money for a category campaign to make more people think of going. Theatres too.

“The answer's brand. Now what's the question?”

The point: Where the category decision comes first, growing the category beats fighting rival brands.

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Colonel Sanders founded KFC at 65

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Responding to the host's story of a lingerie brand that never told its craftsmanship story, Rory says every time he meets KFC he urges them to tell people that Colonel Sanders effectively founded the company at 65, after a convoluted career and about eight years perfecting his chicken recipe. A multinational created by someone at retirement age is an extraordinary story. He cannot entirely explain why, but knowing the founding story makes him think of the product differently.

The point: A brand's origin story changes how its product is perceived, and many brands leave theirs untold.

Sources (1)

Company cars beat the cash alternative

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Rory argues company cars were much better than the cash alternative because they let you drive a car far blingier than your wife would allow you to buy with your own money. You could say: 'I didn't want the heated steering wheel. They gave it to me.'

“I didn't want the heated steering wheel. They gave it to me.”

The point: Benefits in kind permit indulgence without the guilt of choosing it.

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Comparing yourself to rivals makes you identical

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On Ries and Trout's Positioning, Rory says everybody in business instinctively compares themselves with competitors, and a by-product is that you become more and more similar to them, so competition gets harsher and becomes a race to the bottom. Whether the answer is differentiation or mere distinctiveness matters little psychologically: you can make the product meaningfully different or make your brand's personality meaningfully different, and either way it works much the same.

“Everybody in business instinctively is comparing themselves with their competitors. And a by-product of that is you become more and more similar to them.”

The point: Benchmarking against rivals breeds convergence; difference in product or personality is what escapes the race to the bottom.

Sources (1)

Consumerism as the Galapagos of human weirdness

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Rory says he works in advertising not really to make money or build brands but because he is nosy. Modern consumerism is the best-funded social science experiment in the world, the Galapagos Islands of human weirdness. Ad agencies are among the last safe spaces in business for weird or eccentric people, where you can ask stupid questions and still get promoted. That freedom matters, because reaching intelligent answers often requires asking really dumb questions.

“Modern consumerism is the best-funded social science experiment in the world, the Galapagos Islands of human weirdness.”

The point: Marketing is a vast natural laboratory of behaviour, and its tolerance of dumb questions is a hidden asset.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Convert Jeremy Clarkson, not six yoghurt-makers

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The electric car and environmental lobby hated Jeremy Clarkson. Rory's argument was that if you could turn Jeremy Clarkson into an electric car convert, that would be a much more important story than getting six people who make their own yoghurt to adopt one. Legitimacy comes from adopters who represent the mainstream, or the sceptics, not the already converted.

“That's a much more important story than getting six people who make their own yogurt.”

The point: Converting an unlikely, mainstream figure creates more legitimacy than many natural fans.

Sources (1)

Courtier, court jester, courtesan, the content that spreads

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Rory has always said three kinds of content are particularly appealing: courtier (be useful), court jester (be funny) and courtesan (be sexy). His friend Geoffrey Miller [?] added a fourth: content that is massively uplifting, almost sublime or religious in feeling, a kind of mental enrichment that fits none of the other three. Content that goes viral, gets shared or is watched repeatedly will generally have at least one of these elements.

“Courtier is be useful, court jester is be funny, and courtesan is be sexy.”

The point: Shareable content is useful, funny, sexy or uplifting; aim for at least one.

Sources (1)

Creative, targeting and the rest multiply, not add

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Direct marketing had a rule of three: creative, targeting and other stuff were roughly equally important, because their effect was multiplicative, not additive. With rubbish creative you could perfectly target an envelope that said piss off and get no responses, other than people posting dog mess back. Rubbish targeting likewise gets nothing. The third factor, framing, is what he later learned to call behavioural science: offer two products, one dearer, without explaining why, and you sell neither, as with Nespresso's two Vertuo machines.

“You could perfectly target an envelope that said piss off and you wouldn't get any responses.”

The point: When factors multiply, a zero in any one of them wipes out the rest.

Sources (1)

Cromwell Road posters for the visiting CEO

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Piccadilly Circus charges a premium partly because it may feature in TV coverage and films whenever Americans want a shot of London. More oddly, poster sites on the Cromwell Road were disproportionately expensive because a Japanese company's chief executive would fly into Heathrow and take a taxi into London. The real target audience of some of those ads was the CEO being driven in, so the local marketing director knew he had seen a couple of the brand's ads and would think the team was doing a good job.

“The principal target audience of some of those ads on the Cromwell Road was the chief executive driving in.”

The point: Media choices are often driven by hidden internal audiences and signalling, not just consumer reach.

Sources (1)

Cummings needed a professional storyteller

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Rory defends Dominic Cummings's drive to Durham as sound decision science, but not the Barnard Castle trip, which was a jolly. If you want to make up a story, he says, you need a professional like him, not an amateur. Cummings had a Land Rover. Anyone who owns a Jaguar Land Rover knows that if you don't drive it for ten days the battery goes flat. Had he said he needed a short drive to recharge the battery, every JLR owner in the country would have nodded.

“If you want to make up a story, you need a professional like me, not an amateur.”

The point: An explanation lands when it draws on a truth the audience already recognises.

Sources (1)

Cybernetics, brilliant idea, branding disaster

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Rory recommends Dan Davies's The Unaccountability Machine, which draws on cybernetics, the study of how information flows through organisations and where it gets blocked, as opposed to looking at businesses through the flow of money. Cybernetics, he says, was a brilliant idea and a branding disaster: a few years after it was invented, Doctor Who introduced the Cybermen, which broadly ruined the discipline's chances through an unpredictable lexicographical misfortune. One of its great phrases, from Stafford Beer: the purpose of a system is what it does.

“Cybernetics by the way, brilliant idea, branding disaster.”

The point: A name can sink a good idea; and systems should be judged by outcomes, not intentions.

Sources (1)

Das Kapital sold as a self-help book

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When Kahneman insists his book is not self-help, Rory tells a story: when Das Kapital was published in the United States, the publisher marketed it as a self-help book on how to accumulate capital, and it became a bestseller. Obviously nobody read it, he adds, but then nobody reads self-help books anyway: they just buy them.

“Nobody read it, but then nobody reads self-help books anyway. They just buy them.”

The point: Framing and category placement can sell almost anything, and purchase is not the same as use.

Sources (1)

David Ogilvy, the Colonel Sanders of advertising

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David Ogilvy was a university dropout, former chef and failed tobacco farmer who worked for British intelligence in Washington during the war, a bit of an Ian Fleming character. He started late, like Colonel Sanders founding KFC at 65, and lived long. He had the advantage of aspirational clients, Guinness, Rolls-Royce, Schweppes, the British tourist board, in a time of American Anglophilia. His famous Rolls-Royce ad, 'At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock', ran only twice, in the Wall Street Journal.

“It's never too late. Colonel Sanders was 65 when he founded Kentucky Fried Chicken.”

The point: Late, unconventional careers can produce outsized success; we need more such stories.

Sources (1)

Develop a couple of eccentricities

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Rory's advice to small companies: just develop a couple of eccentricities that your finance director won't like. Whether it's NASCAR tickets or something else, adopt a few behaviours that are distinctive or unexpected. It's not differentiation in the pure sense, but it is distinctiveness, which is absolutely worthwhile in itself.

“Just develop a couple of eccentricities that your finance director won't like.”

The point: Distinctiveness, even through quirky gestures, has value in itself for being remembered and chosen.

Sources (1)

Diesel is better because you can put it in a Citroën

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Rory recalls Jeremy Clarkson trying to make an ad for a new diesel Citroën. The agency creative told him he had it the wrong way round: it is not that Citroëns are better because you can put diesel in them, it is that diesel is better because you can now put it in a Citroën. That kind of inversion drives ordinary rational people practically insane.

“It's not that Citroëns are better because you can put diesel in them. Diesel is better because you can now put it in the Citroën.”

The point: Inverting the subject and object of a claim can transform its persuasive force.

Sources (1)

Different is often better than better

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Among the things marketers are right about and the rest of business is wrong about: quite often, different is better than better. With such an insane profusion of AI, automation and self-service coming, there is genuinely a business opportunity to do the opposite, and to keep humans where everyone else removes them, because in any service business an experience with a real human being trumps almost anything else.

“Quite often different is better than better.”

The point: When a whole market converges on automation, deliberately human service becomes a differentiator.

Sources (1)

Digital advertising is a shelf wobbler without a shelf

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Rory is proud Ogilvy has about the largest influencer business in the UK, which he sees as the future of much digital advertising because it is contextualised: a person delivers a recommendation, or simply shows they use something. By contrast, most digital advertising is a shelf wobbler without a shelf: an appeal to transact that appears with no context, at an irrelevant moment, when you are not in the right mindset. It is efficient at delivering messages but bad at adding value. It is all targeting and no persuasion.

“Most digital advertising is a shelf wobbler without a shelf.”

The point: Messages without context persuade poorly; recommendation through people adds meaning that targeting cannot.

Sources (1)

Direct mail gets stronger as it gets rarer

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Rory thinks there is a bias towards too much digital marketing, already 60 per cent of ad spend and heading for 70. Old-fashioned, apparently inefficient direct mail does something few digital media do: it puts you in the frame and creates a crunch point where you must decide yes or no, whereas digital is too easy to ignore. As volumes of direct mail have fallen, its impact has risen. Oddly, his children find receiving post really exciting.

“Sometimes the problem with digital marketing is it's too easy to ignore.”

The point: A medium's power depends on its scarcity, so abandoned channels can regain effectiveness.

Sources (1)

Direct mail is annoyingly effective

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Rory says whenever he talks to a tech company, his fallback advice is to use physical direct mail, because it works incredibly well. One client described their direct mail as annoyingly effective: annoying because a digital company gets grief internally for sending physical post even though it works. He blames cultural stereotyping of media, noting that around 30 to 40 per cent of the Mad Masters intake comes via TikTok despite it being largely a B2B product.

“One of our clients described their direct mail as annoyingly effective.”

The point: Stereotypes about which media suit which audiences make firms ignore channels that demonstrably work.

Sources (1)

Dishoom gives every branch a backstory

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Scale can kill magic; Rory worries Five Guys could go from treat to staple and become a victim of its ubiquity. Dishoom handles scaling well: it agonises before each opening and gives every restaurant its own backstory, so each one is distinctive and true to its building while the authentic core theme stays constant, like variations on a theme. Apparently every Wetherspoons has a different carpet, but Dishoom takes the idea much further.

“The basic authentic theme remains constant but each restaurant is distinctive enough.”

The point: Chains can keep their magic by varying each outlet around a constant theme.

Sources (1)

Don't start an airline to sell your toilet

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HomeServe grew by direct mail and brand partnerships, two of Rory's passions. When a letter arrived from Staffordshire Water, nobody thought it was a scam. The small firm brings zeal and innovation, the large one scale and instant reputability; both gain, as with watch collabs like Swatch and AP (watches are 'the Galápagos Islands of brand weirdness'). WPP's partnerships unit Mando Connect is his secret weapon, yet has only ten people, because partnerships are cheap and nobody has an incentive to promote them. His joke: someone invents a great airline toilet and, instead of partnering with Boeing, starts an airline and builds a plane.

“Instead of partnering with Boeing, they decide to start their own airline and make their own plane.”

The point: Partnering lets a small innovator borrow trust and scale, an underused route because it is cheap and nobody profits from recommending it.

Sources (1)

Dragons' Den and the eBay Pez myth

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Watching Dragons' Den pains Rory: Americans, raised on show and tell, generally present well, but British contestants with good ideas often tell their story from the wrong end of the telescope. He half-jokingly suggests, admitting it is slightly unethical, inventing a better origin story. The tale that eBay began because a founder's girlfriend wanted to trade Pez dispensers was reportedly never true; they felt they needed a foundation myth. He wonders whether some brilliant inventors died in obscurity simply for lack of communication skills, and thinks schools should teach this.

The point: The ability to tell a compelling story about an idea can matter as much as the idea itself.

Sources (1)

Electric cars were once dismissed as girly

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Edison and Henry Ford both tried to build electric cars. Jay Leno claims one reason they were vilified in the Edwardian era is that, being clean, quiet, short-range and needing no hand crank, they were disproportionately popular with women, and in a macho age got stereotyped as girly cars, so men chose the smoky, noisy alternative. Rory cites a marketing rule: you can sell female things to women and male things to both sexes, but never a female thing to men. Position a cigarette as a female cigarette and men will never buy it.

“You can never sell a female thing to males.”

The point: Gendered associations can doom a product with half its market regardless of its merits.

Sources (1)

Everyone loves Baileys, nobody drinks it

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Diageo is mystified that, given how much people enjoy Baileys, they drink surprisingly little of it. Almost nobody dislikes it, and there is hardly an occasion that wouldn't be improved by a glass. Rory suspects we are embarrassed that it is so tasty, which is a monkey reason, not a rational one.

The point: Social embarrassment can suppress consumption of something people genuinely like.

Sources (1)

Fame compounds like a pension

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Short-term, bottom-of-the-funnel measurement of brand investment is fallacious, with far too high a burden of proof and unrealistic demands for precise attribution. Investment in fame is like a pension: for the first few years you feel you are putting money in every month and nothing is happening. Then at about 55 you wonder where all this money came from. That is the miracle of compound interest, and fame works the same way.

“By the time you get to about 55, you go: where did all this money come from?”

The point: Brand investment pays off through slow compounding that short-term measurement cannot see.

Sources (1)

Fifteen per cent commission gave agencies independence of mind

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National television forced regional American brands into winner-takes-all battles for national dominance, driving huge ad spends. Agencies had copied the press commission model, so when numbers multiplied they became insanely rich. Crucially, clients didn't write cheques to the agency: they paid the media owner and the agency took its 15 per cent. Clients could withdraw business, but because agencies weren't constantly haggling over the blended hourly rate, the arrangement probably gave them independence of mind.

“You weren't always there haggling about what the blended hourly rate was.”

The point: How an adviser is paid shapes how freely they think; hourly billing erodes independence.

Sources (1)

For Sale signs create a market rather than serve one

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In 1980s and early 1990s London, the city was a forest of estate agents' For Sale signs. They have largely vanished because everyone assumes buyers already search on Rightmove, and physical things are the first to be cut. Rory doubts that model. Most London buyers move only a few miles, and plenty of people see a house they have always liked with a sign outside and think they might have a look. Like shoppers who decide at the shelf rather than from a list, many buyers never conceived the need until they saw the sign.

“It creates a market rather than serves a market.”

The point: Assuming demand is finite and pre-existing ignores the purchases that are triggered by chance encounters.

Sources (1)

Ford electrifies the Mustang and F-150

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Ford North America planned a separate electric division with brand-new names, keeping its existing brands for petrol: neat from the top, like German forestry. Roger Martin argued, and eventually won, that from the customer's perspective Ford's strengths were Mustang, Bronco, Explorer, F-150 and Transit, so electrify those. An electric F-150 is not sold on green credentials but because if your power is cut, you can run your house off your truck: music to a doomsday prepper. Rory bought the electric Mustang himself: an electric car is cool, but he wanted a bit of Detroit in it.

“If I buy an electric car I'm cool, but I want a bit of Detroit in it somewhere.”

The point: Thinking up from the customer rather than down from the org chart reuses brand strengths.

Sources (1)

From Fabergé to Wedgwood, agencies that make first and sell after

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Before industrialisation, goods were made like Fabergé eggs: a rich client briefed, craftsmen made it, the client approved. Then Wedgwood could make dinner services in vast identical quantities, so instead of waiting for requests it made them and went to find customers, inventing modern marketing. If AI makes good content cheap, Rory suggests agencies may work backwards: produce content unasked and find a buyer, as some social media stars already pitch finished work to brands like KFC. Cannes would then become a trade fair, 'we've got this, do you want to buy it?', like the TV festival.

“Cannes becomes not a retrospective, it becomes a trade fair.”

The point: When production costs collapse, the business model can flip from making to order to making speculatively and selling.

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Gen Z doesn't like Nespresso because they don't own one

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People told Rory the Nespresso brand does not chime with Gen Z, perhaps because the George Clooney imagery is a middle-aged idea of indulgence. He suggested the reverse might be true: young people do not like the brand because they do not buy the machines. A promotional mechanic such as a student programme, where a shared house splits £10 a month for a machine instead of one person paying, might fix the attitude by changing the behaviour first.

“Attitudinal change precedes behavioural change? Well, yes, but also behavioural change occasions attitudinal change.”

The point: Changing behaviour can create the brand attitude, not just the other way round.

Sources (1)

Get electric cars to 10 per cent

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Social contagion is supralinear: behaviour follows the Bass diffusion curve, slow, quick, slow, with a threshold where something stops feeling weird. Colleagues at Wavemaker, in WPP, pushed electric cars first as fleet and company-car benefits because the goal was to get them to 10 per cent, the fastest way there. At 10 per cent you are an outlier, not a weirdo; 15 years ago a Nissan Leaf owner stranded in Dorset was laughed at. Concentrate advertising where behaviour is about to tip, and it does triple duty.

“You have to get this stuff to 10%.”

The point: Adoption accelerates past a normality threshold, so effort is best concentrated where a behaviour is about to tip.

Sources (1)

Google Glass and the user imagery problem

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Rory thinks Google should have persevered with Glass: augmented reality that subtitles your environment, 'turn right', 'meeting in ten minutes', 'it's going to rain', is a good and necessary idea. But they sold it first, at about 1,200 pounds, only to developers, who with the best will in the world are not generally supermodels. The user imagery was damaged. Apple Vision Pro faces the same problem: the only people wearing steampunk goggles in public will be weirdos.

“The developer community, who with the best will in the world probably aren't supermodels.”

The point: Who is seen using a product early on defines what it means to everyone else.

Sources (1)

Great inventors were great marketers

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When people succeed hugely, Steve Jobs, Thomas Edison, Colonel Sanders, Henry Ford, even St Paul, we call them brilliant businessmen or inventors. Rory argues they were not necessarily brilliant inventors; they were brilliant at marketing. The first iPhone had no App Store. It was a phone with a touchscreen, a web browser, some music storage, the weather and a calculator. It did not do very much, but what it did, it did delightfully.

“It didn't do very much, but what it did, it did delightfully.”

The point: Success attributed to invention often owes more to presentation and delight than to capability.

Sources (1)

Greenland, marketing goes back a thousand years

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Marketing's value to an organisation isn't necessarily in what it does; you can have no media budget and no advertising. It lies in how it thinks: looking at the business through the eyes of the customer. And marketing goes back thousands of years. Greenland is called Greenland because, Rory believes, Erik the Red or whoever it was wanted settlers to go there, so he thought it would be a good idea to give it an attractive name.

“Greenland is called Greenland because probably Eric the Red wanted settlers to go there.”

The point: Naming and framing have shaped behaviour for centuries; marketing is a way of thinking, not just a set of activities.

Sources (1)

Hand a 50 per cent voucher to the queue outside your restaurant

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Attribution flatters the wrong tactics. As someone said, the most cost-effective marketing is to wait until there's a queue outside your restaurant and hand everyone a 50 per cent off voucher: you'll get a 100 per cent redemption rate. Likewise, if Marriott's ad converts someone who would have stayed in another Marriott anyway, it's counted as equal to winning someone from Airbnb, though in short and long term the two are not remotely equivalent.

“You get a 100 per cent redemption rate.”

The point: Measuring conversions without netting out people who would have bought anyway rewards the least valuable marketing.

Sources (1)

Hiding fully booked flights throws away scarcity

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Flying to Sweden, Rory noticed that BA's website does not show flights that are fully booked. Being fully booked is a great way to create scarcity value: if the 8.20 and 9.20 are full, you had better book the 10.20 right away. But because they do not appear, you assume BA's first flight from Heathrow to Stockholm is at 10.30 and decide they are idiots who think nobody wants to arrive before 2pm, so you search elsewhere. He calls such small changes with big effects butterfly effects.

“There are butterfly effects, those things where very very small changes can make very big differences.”

The point: Showing sold-out options signals popularity and urgency; hiding them destroys both.

Sources (1)

Hitler was an art director, Churchill a copywriter

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Mischievously, Rory says that in advertising terms Hitler was an art director and Churchill a copywriter. Hitler was a failed artist obsessed with architecture and design; you can find Nazi design manuals on the exact proportions of swastikas and flag colours. It was a visual brand, horribly good at visual consistency. Churchill persuaded through words. Rory has read that Hitler's only paid job was two weeks in an ad agency on a deodorant brief. Mein Kampf reportedly discusses what makes a good poster.

“Hitler was an art director and Churchill was a copywriter.”

The point: Persuasion works through visual identity as well as words, for good or ill.

Sources (1)

How many people know Wahaca is Mexican?

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Wahaca briefed Rory's team that nobody can remember the difference between a chimichanga, a burrito, a quesadilla and a fajita; even a fluent Spanish-speaking friend couldn't. Mid-debate, they realised a more basic problem: how many random people even know Wahaca is a Mexican restaurant? There isn't even a W in Spanish; it's spelt phonetically, while the real place name uses an X.

“How many random people even know that Wahaca is a Mexican restaurant?”

The point: Businesses overestimate how much passers-by understand about them, so fix the basics before the subtleties.

Sources (1)

Howard Gossage, every ad asks for an action

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Howard Luck Gossage, an adman who switched to good causes and probably named Friends of the Earth, made every ad get someone to do something: write to their senator, sign a form, put a sticker in the window, buy a T-shirt. He tried to create a behaviour that would promote the attitude. Rory paraphrases his line: don't try to pat elephants to death; one spear to the heart is what you do. Even a token act, such as a pledge, can shift attitudes.

“Don't try and pat elephants to death; one spear to the heart is what you do.”

The point: Asking for a small concrete action is a stronger route to changing minds than arguing for the attitude.

Sources (1)

Humour lets you say things you can't say seriously

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After Fawlty Towers, John Cleese built a lucrative business making sales and client service training videos. Rory thinks it was brilliantly clever, because humour does two things: it makes the material entertaining so people want to watch, and it lets you say things you cannot say seriously. Taleb argues humour signals intelligence without nerdiness, but it also lets you say things which, said straight, would cause a counter-reaction. Boris Johnson, he notes, is perhaps allowed to overuse it.

“You can communicate things humorously that you can't say seriously.”

The point: Humour disarms resistance, carrying messages that would provoke pushback if stated plainly.

Sources (1)

I'm hungry, and it's spring

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Rory tells a story about Charles Saatchi that he admits is almost certainly apocryphal. A beggar sat outside Saatchi and Saatchi with a board saying 'I'm hungry'. Saatchi added a few words so it read 'I'm hungry and it's spring', and the donations doubled or so. True or not, it makes his point: tweak something to a tiny degree and you can transform how people react emotionally.

“I'm hungry and it's spring.”

The point: A few words of emotional framing can multiply a message's effect.

Sources (1)

I've got my own plane, but I eat the same food you do

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Acknowledging his audience may dislike the man, Rory shows a picture of Trump [?] on his own plane eating fast food with a knife and fork. Its message, to an American guy, is: I've got my own plane, but I eat the same food you do. Rory says no algorithm would ever produce something as lucid and potent. You don't have to like it, but you have to recognise it.

“I don't know any algorithm which will ever produce that.”

The point: The most powerful signals of identity come from intuitive judgement about context, not from data.

Sources (1)

If we can't judge ourselves, how can we judge others?

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Summing up Laurie Santos's talk on how our minds lie to us about what makes us happy, Rory calls it a vital lesson for advertising. Marketers assume they can judge what will make other people happy. But if we cannot even judge what makes ourselves happy, what hope have we of making assumptions about what makes other people happy?

“If we can't even judge ourselves, what hope have we got of making assumptions about what makes other people happy?”

The point: Marketers should distrust their intuitions about what consumers value and test instead.

Sources (1)

If you are not special to the customer, you will not exist

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When Rory was 25 and running his first business, a Wolff Olins brand consultant who became a lifelong friend gave him the line that became his mantra for his whole branded life: if you are not special to the customer, you will not exist. What special means depends entirely on the category and the consumer, which is why some brands serve a no-surprises need and others serve a need to stand out.

“If you are not special to the customer, you will not exist.”

The point: A brand must matter to the customer in some way, and the right way depends on the category.

Sources (1)

Influencer marketing is the first proper digital advertising

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Citing recent IPA data, Rory argues influencer marketing works partly because it is the first digital form of proper advertising, as opposed to performance marketing, which is valuable but does not do many things advertising does. Meta and Alphabet's genius was convincing marketers that what they sell matters most, shrinking memorability and creativity to zero. Influencer content works at TV-like levels initially, with astonishing long-term effects, because the material stays there for ever, unlike a banner ad that vanishes instantly.

“Influencer marketing is partly powerful because it's the first digital form of proper advertising.”

The point: Enduring, creative content builds long-term effects that fleeting performance ads cannot.

Sources (1)

Intangible value as a substitute for material goods

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Rory argues that the perceived, badge or subjective value advertising creates gets an unfairly bad rap. If the future must contain fewer material goods, there are only two options: a poorer world, which nobody wants, or a world where intangible value makes up a larger share of total value. Intangible value, he says, is a very fine substitute for using up labour or scarce resources. If you learn to value what you previously discounted as merely intangible, you realise you are much wealthier than you thought.

“Intangible value, in many ways, is a very, very fine substitute for using up labour or limited resources in the creation of things.”

The point: Creating perceived value can deliver satisfaction without consuming more material resources.

Sources (1)

It's what people think brands think about them

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A former managing director of Starbucks UK told Rory that most marketing meetings were a waste of time, but he picked up one great thing: it is not just what people think about brands, it is what they think brands think about them. Think of an overly pretentious restaurant. Rory recalls someone observing that French hotels are odd: the cheaper they are, the better they are, because paying more just buys a higher level of patronisation, and at very swanky places you feel slightly disdained.

“It's not just about what people think about brands, it's what they think brands think about them.”

The point: Customers respond to the respect a brand seems to show them.

Sources (1)

Jack Wills hires a bouncer for its Eton shop

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Jack Wills appealed to people who wanted to look like Old Etonians. When it opened a shop on Eton High Street, it was so convinced demand would be insane that it hired a bouncer for opening day. Nobody showed up. Rory likens it to Henry James's story The Real Thing, or the oddness of the British buying Ralph Lauren: having your own culture sold back to you.

The point: Aspirational brands appeal to outsiders and can leave the real thing cold.

Sources (1)

Jane Austen is too clever, but art direction is not

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As a copywriter Rory got annoyed at Cannes. If you wrote an ad that required knowing the opening sentences of Jane Austen, everyone called it ridiculously intellectual. Yet the degree of visual literacy expected of audiences was extraordinary. Wandering round the art-directed parts of Cannes, he would pretend to understand, twiddling an imaginary Dalí moustache, without a clue what was going on.

“I pretended I understood, sort of twiddled my imaginary Dalí moustache.”

The point: The industry polices verbal obscurity but indulges visual obscurity, losing ordinary audiences either way.

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Jesse's Diet and the power of repetition

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The best humour bears repetition. The first ad in Heineken's classic 1970s campaign was not very funny, but it established the format, and every later ad was a riff on it. Likewise in The Fast Show, Jesse first walks out of his shed and says "This week I've mostly been eating pimentos", a baffling, nonsensical line. By the 47th time, and when it flips to Jesse's Fashion ("This week I shall be mostly wearing..."), you have imbued it with something fabulous that you own. Rory regrets that advertising has lost such long-running variations on a theme.

“By the time you've done it 47 times, you've imbued it with something fabulous and it's something you own.”

The point: A repeatable format becomes a distinctive asset that builds value with every variation.

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Joe Rogan beats CNN, people trump brands

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Rory got famous on social media by luck: someone clipped him during lockdown, and he found out when school kids mobbed him and his children asked what he was doing on TikTok. He sees a real trend towards wanting a personal face for businesses, not just a corporate video. He cites a post on Scott Galloway's Prof G blog: personalities in some ways trump brands, so Joe Rogan beats CNN, because one is a logo and the other a fully formed human being. He wonders whether Trusted Trader should add 60 seconds of video.

“Joe Rogan beats CNN, because one of them is a logo and a brand and the other one's actually a fully formed human being.”

The point: People increasingly trust a human face over an institutional brand.

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Lilt tastes better because it's totally tropical

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You can make a drink taste better by advertising it well. Lilt would not taste so good had you not been reminded that it was 'totally tropical', even though grapefruit is arguably not tropical and the ads were loose about the Caribbean. The advertising alters the enjoyment of the thing itself. To a finance director who sees advertising as an inefficiency, raising enjoyment through association rather than changing the product or price looks like cheating.

“We can create value arguably in the mind just as much as we can in the factory.”

The point: Advertising can change the experienced product, not just awareness of it.

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Logos on lipstick dilute the cachet

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Luxury status works like the peacock's tail or the elk's antlers: a costly signal. The trap is that brands extend into lipsticks and perfume, which are pricey but affordable to many, and maximise sales by making the branding very overt. Over time the cachet is diluted and the wrong user imagery appears. Catwalk fashion is a tiny market run for its halo on ready-to-wear and cosmetics. Gifts also need to look visibly expensive, so many of these are Veblen goods whose price is the point.

The point: Stretching a status brand to mass-affordable items with loud branding erodes the scarcity that made it valuable.

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Long copy is a lost skill

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Advertising has terribly lost the skill of long copy, Rory says. The long-copy press ad, or its digital equivalent, is still for many products and categories, such as cars and especially electric cars, where people need an argument and more information than a headline gives. The skill has atrophied, which is worrying, because sometimes it is the only thing that works.

“Sometimes it's the only thing that works.”

The point: Some purchases need a reasoned argument, and short-form habits have eroded the ability to write one.

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Make new things familiar and familiar things new

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Rory borrows the line that poetry is when you make new things familiar and familiar things new, and says it is not a bad definition of the advertiser's job: helping people appreciate the unfamiliar, and placing a far higher value on what already exists. Social networking may help by giving badge value to trivial everyday activities, reducing the need to spend money on display. We need to spend more time appreciating what already exists and less agonising over what else to make.

“We need to spend more time appreciating what already exists, and less time agonising over what else we can do.”

The point: Re-valuing what already exists is a cheaper and greener source of satisfaction than making more.

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Make the bank card coral

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One of the most valuable attributes of a brand is simply distinctiveness. Ogilvy was pitching to an online bank with a very good interest rate and everything else in order. Rory told them, 'You're going to hate me telling you this, but you need to make the card coral, or do something slightly weird that's talkable, memorable and out of the ordinary.'

“You need to make the card coral.”

The point: Being good is not enough; a brand needs a distinctive, talkable oddity to be noticed and remembered.

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Make them famous and put an animal in it

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Rory says one advantage of being 60 is that you worry less about looking like an idiot. The two most idiotic but true sentences you can utter in an advertising agency are: we're going to make you famous, because it is good to be famous and bad to be obscure; and wherever you can, put an animal in it. Both, he says, are empirically true from long observation.

“The two most idiotic but true sentences: we're going to make you famous, and wherever you can, put an animal in it.”

The point: Some of advertising's most reliable rules sound too simple to say in a boardroom.

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Making a promise increases the chance it comes true

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In his first corporate message after Ogilvy's rebrand into one entity, Rory made a promise, not because he was sure Ogilvy could deliver it, but because making the promise increases the likelihood that it comes true. That, he says, is how advertising works, and probably how marriage works to a degree.

“By making the promise I increase the likelihood that the promise comes true.”

The point: Public commitments change the behaviour of the one who makes them, which is part of how advertising creates value.

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Making the Honey Monster massive

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The Honey Monster was first conceived as a small, mischievous creature, and mums hated it as a badly behaved brat. Most researchers would have reported that it wasn't working. Instead a planner at BMP asked: what if we made the Honey Monster massive, a bumbling adult rather than a naughty child? When they did, everyone loved it. Tiny executional tweaks can totally change the emotional response to an ad and mean the difference between failure and success.

“What if we made the Honey Monster massive?”

The point: Small executional changes can flip how an idea is felt, so research should suggest fixes, not just verdicts.

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Mandeville caused a scandal; Smith made the same ideas palatable

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Smith captured some of Bernard de Mandeville's early ideas: Mandeville perhaps had the division of labour first, and his poem The Fable of the Bees grasped something like the paradox of thrift. But Mandeville created an absolute scandal, and Smith, remarkably, didn't. He knew how to convey scandalous ideas in a way people found surprisingly palatable, which Rory calls a genuine marketing skill.

“That's a genuine marketing skill.”

The point: How an idea is framed determines whether it is accepted or condemned, even when the substance is the same.

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Marketers see the customer's eye view, not the average

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B2B spends less on communications, so marketing is conflated with marcoms, marketers are rarely on boards and decision-makers have often never worked in marketing. Most of business, logistics for instance, sees its job as an optimisation problem viewed through aggregate averages, like a system controller. What makes the marketer's viewpoint uniquely valuable is that it looks at an individual customer's experience of the world over time, not at how a product moves total sales.

“A marketer instinctively tends to look at the world through a customer's eye view.”

The point: Aggregate data hides individual experience, where many commercial opportunities lie.

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Marketing doesn't add value, it is the value

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Saying marketing 'adds value' makes it sound optional, as though value is inherent in the product and marketing sprinkles a little fairy dust on top. Rory argues value is intrinsic to the whole: present the right thing in the wrong way and you have a worthless product. Once people abandon the economic view that only the objective product and its price matter, and accept that presentation is the main determinant of how something is perceived and valued, 90% of marketing's other problems go away.

“If you present the right thing in the wrong way, you've got a worthless product.”

The point: Presentation is a principal determinant of value, not a decorative extra.

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Marketing finds what people want but can't ask for

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The most valuable role of marketing, Rory says, is not discovering what consumers say they want but what they really, really want and do not know how to ask for. That may be why free-market capitalism beats command economies: a communist planner could never make the case for the irrational things revealed preference shows people love. Nobody would ask for an expensive drink in a small can that tastes disgusting; Red Bull is pure revealed preference.

“The really valuable role of marketing is discovering those things which consumers really, really want but don't know how to ask for.”

The point: Markets and marketing uncover desires that planning and surveys cannot.

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Marketing is a casino with the odds in your favour

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Marketers made a mistake claiming everything they did was as quantifiable as operations, Newtonian physics. Only a small share of activity, usually bottom-of-funnel in fast-feedback businesses, works like that; in B2B, forget it. By claiming quantifiability they painted themselves into a corner where only quantifiable marketing was allowed. They should have said: it's a casino. Blackjack, not roulette: skill matters, though you can't count cards. And weirdly the odds are stacked in your favour; as Jeremy Bullmore said, campaigns with catastrophic effects are rare. Just don't promise to the penny what you'll walk out with.

“It's a casino, but it's a casino with really good odds.”

The point: Marketing should be justified as a favourable probabilistic bet, not as a precisely measurable machine.

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Marketing is not yet a science because it makes no progress

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Rory believes marketing can be a science, but says it clearly is not one yet, because a science is something that makes progress. Advertising produces plenty of successful case studies but little discernible advance. If we stopped thinking of science as the school kind, where you get a tick for the surface area of a cone, and accepted sciences like anthropology and behavioural economics that do not claim exactitude, there would be a middle ground between pretending advertising is maths and storming off saying it is art.

“Pretty much a definition of a science is something that makes progress.”

The point: Marketing should model itself on the softer sciences that accept ambiguity, not on physics or on pure art.

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Marketing is the weather

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Much of what is really marketing is not produced by the marketing function. James Dyson's widely ridiculed decision to make vacuum cleaners transparent was a founder's design decision, yet it was undoubtedly based on subjective value in the consumer's mind. Marketing is a state of mind and a parallel set of forces alongside the economic ones. We can talk a lot about how you steer a ship and fuel its engines, but ultimately marketing is the weather, and only some of it lies within your control.

“We can talk a lot about how you steer a ship and how you fuel the engines, but ultimately marketing is the weather.”

The point: Marketing is a pervasive force shaping value everywhere in a business, not a department.

Sources (1)

Marketing is TK Maxx, not Sainsbury's

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Rory distinguishes thin-tailed from fat-tailed activities. Grocery shopping at Sainsbury's or Asda is thin-tailed: you know what you need and you procure it efficiently. TK Maxx is fat-tailed: often a waste of time, but now and then you find something astonishing. Aldi is thin-tailed except the middle aisle, where you went in for milk and came out with a wetsuit. Most of marketing's value is fat-tailed, but consultants, tech people and procurement have turned it into an Asda-style incremental game, mining ore rather than looking for treasure. He thinks it should be roughly half and half.

“We are no longer looking for treasure, we are just mining ore.”

The point: Marketing's real value lies in rare breakthroughs, so managing it only for incremental efficiency misses the point.

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McDonald's is fascist food; KFC is libertarian

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Rory vastly prefers KFC to McDonald's, to his foodie audience's horror. McDonald's, he says, is like fascist food: you must eat it the prescribed way. KFC is libertarian: you can pimp it, dip fries in gravy, tip gravy over things, mess about. So he thought KFC's campaign focusing everyone on its gravy was ingenious: take a peculiarity of yours and double down on it.

“McDonald's is like fascist food in that you've got to eat it in the prescribed way.”

The point: Amplifying a distinctive quirk can become a brand's discriminator.

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MRI scanners deserve a higher purpose than ad testing

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Rory admits that, in a rare bout of ethical dilemma for the advertising industry, he has always been uncomfortable about using MRI machines for marketing research. Someone somewhere should probably be scanned for a higher purpose than merely finding out what they're planning to buy this weekend. The conversation then turns to wearable EEG bands as a cheaper alternative.

“Someone somewhere should probably be scanned for a higher purpose than merely finding out what they're planning to buy this weekend.”

The point: Research tools carry an opportunity cost, and scarce medical resources are poorly spent on marketing.

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Negativity sells single copies, not subscriptions

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A very bright FT marketer argues that what sells papers at a newsstand, the training ground for journalists, is undoubtedly Daily Mail stuff: the country's gone to the dogs. But most publishing is now subscription, and what people like to read is not what makes them buy a copy. Once you subscribe, as with a friend, you don't want a constant doom-monger; The Spectator and The Week balance optimism and pessimism. Old Pathé newsreels were insanely upbeat. Rory jokes that a 2025 Ogilvy would write 'The 10 noisiest things in the new Rolls-Royce: number seven will astound you.'

“What people like to read is not the same as what makes people buy a publication.”

The point: Acquisition and retention reward different content, so negativity bias may be a relic of newsstand economics.

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Night Nurse, the side effect became the selling point

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One of Rory's favourite marketing stories. Long before Day Nurse existed, a company developed a very effective flu treatment, but it sent you to sleep, so you couldn't drive or operate heavy machinery. It looked like a failure. Then, as Rory has always heard it, a little guy from the marketing department said: position it as a night-time flu remedy and the fact that it sends you to sleep is a bonus, not a problem. Night Nurse was born by reframing.

“If you position it as a night-time flu remedy, the fact that it sends you to sleep is a bonus.”

The point: Reframing the use context can turn a product's flaw into its main benefit.

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Nike's direct-to-consumer push and the death of jingles

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Rory doesn't think jingles, long-copy press ads, physical direct mail or the witty 1970s BMP press ad ever stopped working; they went out of fashion, with no empirical evidence. The evidence points the opposite way, as when Nike tried to optimise for efficiency by selling direct to consumers, a decision only someone who had never bought their own shoes could take: you want to try shoes on, and independent retailers were part of the ecosystem. It would be like Coca-Cola trying to get rid of its bottlers.

“A decision which could only be taken by someone who had literally never bought a pair of their own shoes in their life.”

The point: Efficiency drives that ignore how customers actually buy can dismantle the ecosystem that sustains a brand.

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Nobody would have heard of Jesus without St Paul

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Rory's wife is a vicar in the Church of England. When she gives him a hard time about working in marketing, he replies that nobody would have heard of Jesus if it were not for St Paul. Most really successful things, he argues, succeed because someone, deliberately or by accident, worked out how to promote them; brilliant ideas often fail not for want of technology or price but because nobody found the right presentation, context, mood or story.

“Nobody would have heard of Jesus if it wasn't for St Paul.”

The point: Even the greatest ideas need a promoter; promotion is part of why anything succeeds.

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Not 'reduce immigration' but 'build a wall'

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A core finding of charity fundraising is that people pay for concrete things far more readily than abstract ones. Rory notes that Donald Trump did not say he would reduce immigration; he said he would build a wall. Clever, cunning, evil if you like, Trump is a very good marketer in that he always makes something concrete.

“He didn't say we'll reduce immigration. He said we'll build a wall.”

The point: Concrete, tangible promises mobilise people far more than abstract goals.

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One message that answers six questions at once

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Asked whether one message can work for everyone, Rory thinks it might be possible creatively to resonate with more than one segment. If you cannot tell which of several behavioural biases is at work in a setting, you can only theorise; but a message or action that answers about six of those possible explanations in one go sidesteps the problem. After segmenting, we tend to write one message per segment, when the best use of segmentation might be to inform a single mass message.

The point: A well-crafted message can address several possible motives at once instead of fragmenting by segment.

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Online-only selling and the supermodel next door

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Rory is fascinated that HelloFresh sells door to door. Don't try to sell everything online by the cheapest possible means: some people will only buy through slightly more expensive channels, and that is simply the price of acquiring a customer. If you want to grow, suck it up and stop over-optimising. The obsession with digital channels, he says, is like going online to find a girlfriend when there is a supermodel who really fancies you living next door.

“That's a bit like someone going online to try and find a girlfriend when there's a supermodel who really fancies them living next door.”

The point: Fixating on cheap digital channels overlooks better opportunities that cost a little more.

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Orange's prospectus gave its brand one paragraph

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Nearly every successful new business succeeds largely because of how it markets itself, yet analysts barely notice. Orange's 'The future's bright, the future's orange' was an extraordinary brand in mobile phones, but its initial stock offering gave brand and advertising about one paragraph. Marketing is more elevated in the US than the UK, where it sits way downstream of finance, but even in the Fortune 500 only about 14 companies have a marketer on the board, so boards fetishise shareholders over customers.

“Their brand and their advertising received, I think, one paragraph in the entire document.”

The point: Investors and boards ignore the marketing that often drives a company's success.

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People don't think what they feel

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Rory quotes a line often attributed to David Ogilvy, though he never actually said it: the trouble with market research is that people don't think what they feel, don't say what they think, and don't do what they say. The parts of the brain that do the feeling are not really connected to the parts that do the talking. Much business activity assumes mental access to unconscious motives that are in truth opaque to introspection, so don't rely on people to tell you what they want.

“People don't think what they feel, they don't say what they think and they don't do what they say.”

The point: Stated preferences are unreliable because real motivations are inaccessible to introspection.

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Pepsi's strategic bra straps were showing

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On the Pepsi advert with Kendall Jenner [?] that was mocked across social media, Rory says the problem was that the strategy was too visible: the strategic bra straps were showing and it did not get away with it. Issue-based or mission-based advertising walks a fine line, and if thousands of people misunderstand your ad, wilfully or not, you have a problem.

“Some strategic bra straps were showing and it didn't get away with it.”

The point: Purpose-led advertising fails when the audience can see the brand's calculation behind the message.

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Performance marketing as a backside-covering charter

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As Tom Goodwin describes big companies copying the performance-marketing playbook of start-ups, Rory calls it an arse-coverer's charter, because it lets people justify their own existence inside an organisation. One effect, he says, was to distort the relative power of media agencies over creative agencies, dragging the conversation into a nerdy arena of quantification and self-justification. Yet even Google admits that occasional breakthrough creative is what really makes the difference.

“Arse-coverer's charter, wasn't it?”

The point: Measurable tactics win internal arguments even when breakthrough creative drives more value.

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Persil box tops for family train trips

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Rory says one problem with marketing people is that they are too young to remember. In the 1970s British Rail launched the family railcard through a partnership with Unilever: send off four Persil box tops and you got the railcard, and with it a free return trip somewhere in the UK for your family. He thinks it did more than Jimmy Savile's adverts to revive train travel, because it got people to adopt the behaviour. He was the only person in the room who remembered it.

The point: Clever brand partnerships that prompt trial can change behaviour more than advertising alone.

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PG Tips lost the lead to round tea bags

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PG Tips sat comfortably as brand leader in UK tea bags and ignored would-be innovators. Then someone came along with an idea so laughable they never considered it a threat, and they lost their number one position. The idea: making tea bags round. Rory says that after 30 years in advertising he has reached a Zen-like point where he has stopped trying to make things make sense.

“What was the idea? Making tea bags round.”

The point: Seemingly trivial, illogical changes can overturn dominant market positions.

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Platforms sell defensive decision-making

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Cost-cutting is fast and discovery slow, and advertising suffers a massive bottom-of-the-funnel bias because advertising close to purchase returns data quickly. Rory argues that what platforms often sell isn't customers or brand value but defensive decision-making: lots of data that lets you keep your job. Citing a LinkedIn piece, he says most marketing metrics serve two parties: the marketers' job security and the big digital platforms they enrich. Softer measures are excluded, because it's of no interest to Google or Meta to promote them. What they sell isn't value, it's measurability.

“What we're selling you is not really value. It's measurability.”

The point: Marketing metrics are shaped by career safety and platform interests rather than by what builds value.

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Please don't mess with Texas

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Responding to Les Binet's story of a client wanting to soften Marmite's love it or hate it line, Rory recalls Don't Mess with Texas, which began as an anti-littering campaign. One of the clients asked whether they could make it Please Don't Mess with Texas, which is about the most un-Texan thing you could imagine.

“Could we just make it please don't mess?”

The point: Clients often try to sand off the very edge that makes a line work.

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Private schools risk becoming the Rolls-Royce

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Instead of broadening their customer base, private schools went hell for leather for overseas pupils. Rory compares it to the Rolls-Royce, which no longer even pretends to appeal to the British aristocracy: it is an enormous thing better suited to Miami or Dubai than London or Bourton-on-the-Water. Lose even the pretence of producing a generation of indigenous gentlefolk and the brand gets tarnished, and charitable status is hard to claim when the head is partly chosen for speaking Mandarin. Nor did schools offer a cheaper "John Lewis option".

“It's an enormous thing which is better suited to Miami or Dubai than it is to London.”

The point: Chasing a lucrative new market can erode the brand meaning that made you valuable at home.

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Quakerism generates the most brand value per head

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As an advertising man, Rory observes that Quakerism is undoubtedly the most successful religion per head at generating brand value. Ironically the Quaker Oats company was not founded by Quakers at all: its founders simply found that the image of a Quaker conveyed wholesome trustworthiness better than anything else possibly could.

“Quakerism undoubtedly is the most successful religion per head at generating brand value.”

The point: A reputation for trustworthiness is so valuable that others will borrow its imagery.

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Range anxiety in a country where you hit the sea

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Rory calls range anxiety for electric cars a self-inflicted branding disaster. In America, fair enough. But in the UK, if you drive 200 miles in a straight line you end up in the sea. The phrase itself framed electric cars around a fear that barely applies, and stuck.

“In the UK, if you drive 200 miles in a straight line, you end up in the sea.”

The point: A badly chosen phrase can define a product around an exaggerated weakness.

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Range Rover's four-day test drive

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Rory sees a contradiction in digital marketing: target people precisely, then reach them as cheaply as possible. A car dealer gives a browser little time but takes a serious prospect weighing Audi against Mercedes on a test drive, though it costs money. About 15 years ago Range Rover identified around 20,000 hot prospects and offered each a four-day weekend test drive with their family; around 5 per cent bought. Direct mail was targeted because it was expensive, and paid off because it was high impact: an Amex mailing might convert 7 per cent, then 3.5 more on a repeat.

“If people are special, make them feel special.”

The point: Once you know exactly who your prospects are, spend more per person on high-impact contact rather than less.

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Rare-breed eggs packed in a ring

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Eggs from rare breeds of hen, which Rory thinks we should support for biodiversity, come in different colours. In a square egg box they look terrible: brown, brown, blue, white, brown, blue. The producer resolved it beautifully by putting six eggs in a ring, so the different colours look like a decorative feature rather than a failing. It is alchemy: turning lead into gold by telling a new story and changing the context of perception without changing the product.

“By representing something differently you can turn a weakness into a strength.”

The point: Repackaging can turn a product's apparent flaw into its selling point.

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Reader's Digest's yes and no stickers

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Reader's Digest prize draws were legally free to enter. But to enter while subscribing you stuck a big, colourful 'Yes' sticker on the envelope; to enter without subscribing, a dismal black-and-white 'No' sticker. Part of it was people assuming 'Yes' entries were likelier to win, though Rory believes the draw was legitimate. But a large part of that billion-dollar business rested on the fact that people really like sticking stickers on things. Markets, like weather systems, have butterfly effects.

“That was a billion-dollar business partly based on the fact that people really like sticking stickers on things.”

The point: Apparently trivial details of an interaction can have billion-dollar effects.

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Republicans buy sneakers too

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Responding to irritation at Ben and Jerry's lecturing on Palestine while owned by Unilever, Rory agrees it is generally not a good idea to align a brand along political lines, for the obvious reason that you alienate half your audience. He cites Michael Jordan, who declined to endorse a Democratic candidate in his home state because 'Republicans buy sneakers too'. It doesn't seem to have hurt Taylor Swift, but it has probably hurt Elon Musk, judging by Tesla's European sales, because your car is a very visible part of yourself.

“Republicans buy sneakers too.”

The point: Political alignment costs brands roughly half their market, especially for visible, identity-laden products.

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Rory would have told Dyson to keep the day job

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After 30 years in advertising, had Dyson asked Rory about a premium vacuum cleaner at around 450 pounds, he'd have said don't give up the day job. The vacuum cleaner was a distress purchase: you bought one when the old one broke or you moved out of rented accommodation, spending as little as possible on an acceptable brand. Anyone who could spend 500 probably has a cleaner. Yet his tightwad father owns two Dysons, and 400 pounds for a hairdryer now sounds about right.

“If ever there was a distress purchase, it was the vacuum cleaner.”

The point: Some of the biggest successes defy expert logic, so predictions about what people will pay for are unreliable.

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Roy Brooks, the rude estate agent

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Roy Brooks, an estate agent in the 1960s and 1970s, advertised only in the Sunday Times and the Observer, and his trademark was being outrageously rude about the properties he sold, essentially listing their negatives, one described as a former brothel in Pimlico. Rather than putting buyers off, it became a badge of honour to own a Roy Brooks property, and collections of his ads are still sold as books. Rory notes that today you cannot even search Rightmove for a fixer-upper.

The point: Candour about flaws can build trust and distinctiveness, making the negatives part of the appeal.

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Sainsbury's billion pounds is one extra item

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When AMV BBDO repitched for Sainsbury's, the target was an extra billion pounds of revenue, and everyone gasped. A planner whose name Rory never learned broke it down: it means everybody who visits Sainsbury's puts one extra item worth about 1.50 in their basket. The resulting campaign, Try Something New Today, with Jamie Oliver encouraging adventurous cooking, meant shoppers picking up tarragon they otherwise would not have bought.

“Everybody who visits Sainsbury's over the next few years puts one extra thing in their basket.”

The point: Disaggregating a daunting aggregate target into individual behaviour reveals simple, actionable solutions.

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Selfridges' yellow box, where a product becomes a brand

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Order from Selfridges and the inside of the box is yellow with the Selfridges logo on a shiny backdrop, with tissue paper, so you are never short-changed on the unboxing. Rory says there is a little costly signalling involved, and it creates a halo effect on the perceived value of the product. However much people dislike packaging, it is where a product first becomes a brand, taking on a personality, an identity and an implied target audience.

“Packaging is where a product first becomes a brand.”

The point: Presentation at delivery carries costly signals that raise perceived value.

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Selling advertising on efficiency is like selling Coke on its ingredients

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After 30 years Rory has concluded advertising is in many ways the stupidest industry in the world, because it fails to take its own advice. It sells itself as if it could be reduced to a narrow Newtonian science. Selling advertising on its efficiency is like selling Coca-Cola on its ingredients: not completely irrelevant, but it misses the magic created when the ingredients come together. The better science for advertising is alchemy, not engineering or economics.

“Selling advertising on its efficiency is a bit like trying to sell Coca-Cola on its ingredients.”

The point: Advertising's value lies in the whole being greater than its parts, which efficiency metrics cannot capture.

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Sensible individually, ridiculous collectively

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Asked why ads have become political, Rory says it is not all bad: advertising should reflect the population. But it is one of those things that makes perfect sense individually and fails collectively. If every advertiser simultaneously decides a commercial can't feature white people, it becomes ridiculous. The ethnic mix in British ads also tends to reflect London, which is unusual in having a black population roughly equal to its Indian one, rather than the UK as a whole.

“It's one of those things that makes perfect sense on an individual level but fails collectively.”

The point: Decisions that are reasonable for one brand can produce absurd results when every brand makes them at once.

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Shakespeare liked his audience

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Watching Channel 4's Gogglebox or ITV, you sense the makers have an affection for their audience; the BBC, somehow less so. The person who really liked his audience was Shakespeare: fat, drunk, ridiculous characters, yet you feel he loved humanity in all its variety. Rory feels the Democrats have lost that. Phrases like 'trash' or 'deplorables' [?] give the feeling they do not like the public, a feeling carried by body language and presentation more than words. Trump, by contrast, would probably chat with you in a pub.

“The person who you really felt liked his audience was Shakespeare.”

The point: Audiences detect whether you like them, and that feeling outweighs what you say.

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Shell County Guides as a complement to petrol

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Rory calls the early Shell County Guides to Britain, written partly by John Betjeman, about as close as advertising has come to art. Shell published them because motorists who knew what there was to see would enjoy driving more and therefore drive, and buy petrol, a bit more. Today we would label that branded content, but under the complementary-goods definition it is advertising in its purest form. Parcel tracking is similar: an information layer that adds great perceived value to delivery.

The point: Content that makes using a product more rewarding can be the purest form of advertising.

Sources (1)

Slippers only on request, then embroidered

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Talking about reverse benchmarking with a very upmarket hotel chain, Rory heard them realise that every hotel puts a cheap pair of slippers by the bed, which nobody notices. Their idea was to turn it round: slippers only on request. When someone does ask, perhaps one guest in ten or fifteen unless they are Japanese, they receive proper embroidered slippers with their initials to keep. He won't name the hotel, or everyone will ask for three pairs.

The point: Making a standard amenity rare and personal turns an ignored freebie into a memorable gesture.

Sources (1)

Soap was sold on status, not on preventing cholera

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Rory agrees that a tree-hugging narrative will fail to get anyone beyond five to seven per cent of obsessives to adopt greener behaviour. He points to public hygiene: companies such as Unilever and P&G contributed enormously to human longevity by raising cleanliness, but their ads did not say 'use Pears soap and prevent a cholera epidemic'. They sold it on status and sexual attraction. Overt altruism and self-sacrifice will not become mass behaviour.

“You can use Darwinian psychology to reach non-Darwinian ends.”

The point: To spread a socially good behaviour, appeal to self-interested motives like status rather than altruism.

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Sometimes one extra line solves the puzzle

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Sometimes marketing just needs to tell people a fact. Rory wonders whether Covid vaccine hesitancy differed by whether people knew vaccination dates back to smallpox in the 18th century, a 250-year-old practice, versus thinking it a newfangled thing. He compares Presh Talwalkar's YouTube geometry puzzles, which look impossible until you draw one extra line and the solution becomes obvious. It isn't always persuasion; it can be simply putting people in a state of knowledge that this thing can make a difference to their lives.

“Sometimes in marketing all you've got to do is tell people a fact.”

The point: A single reframing fact can dissolve resistance that argument cannot.

Sources (1)

Splitting media and creative made a Mongolian buffet

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Rory calls the separation of media and creative agencies totally moronic. It turned what used to be a full-service restaurant into a Mongolian buffet, where you turn up, pick raw food and have to cook it all yourself. The decision had nothing to do with value creation and everything to do with how to make money out of intangibles.

“It turned what used to be a full-service restaurant into a Mongolian buffet.”

The point: Industry structures built around billing rather than value leave clients assembling the work themselves.

Sources (1)

Start with psychology, not the media

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Rory says marketers should stop building solutions around media. Instead they should go back to basics: understand human psychology, motivation and what causes people to think, act and decide as they do. Only once that is understood should they choose which, if any, of the new media are appropriate for solving the problem.

“Stop trying to actually create solutions around media.”

The point: Channels are a means; understanding the behaviour you want to change should come first.

Sources (1)

Statistics as a lamppost, overinvesting in the measurable

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A/B testing is the best kind there is, but you cannot always test. Advertising tends to overinvest where testing is quick and mathematically easy, like digital, and underinvest in things that are highly effective but harder to quantify, like television. People use statistics as a drunk uses a lamppost, for support rather than illumination. Those worried about their careers will always focus on what they can quantify and justify, because it is safer for their job, even when it is not better for the brand.

“People are using statistics as a lamppost, for support rather than illumination.”

The point: Measurability bias, driven by career safety, skews investment away from effective but hard-to-measure activity.

Sources (1)

Superdry took off after a Beckham photo

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Superdry, Rory points out, is not Japanese: it started with a market trader in Cheltenham. It only really got going because David Beckham was, by chance, photographed wearing a piece of Superdry clothing. That single image changed the whole context of the brand.

“It suddenly just changed the whole context of the thing.”

The point: One influential, visible adopter can reframe a brand overnight.

Sources (1)

Targeting is a convenient lie

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Rory calls it a convenient lie, spread with the connivance of media agencies, Facebook and Google, that modern advertising is all about targeting. It is still mostly about the creative: the biggest effects come from presenting something in a different way, like the bus to passport control. Targeting gains become incrementalism. Most online ads are not even written by a copywriter, which is partly why people hate them: nobody who cares about them produced them.

“Modern advertising is still mostly about the creative.”

The point: Creative reframing offers far larger gains than incremental targeting improvements.

Sources (1)

Taylor Swift and the winner-takes-all herd

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Habit and social copying are the defaults of human behaviour, and in a globally connected world that creates too much winner-takes-all. Rory isn't saying Taylor Swift is bad, just that she may not deserve to be that much more famous than the next five best performers. René Girard called it mimetics: we can't help admiring what others admire. In experiments, people rate music tracks independently, but show star ratings and they like the popular ones more. Rory owns an Android phone as a rebalancing act.

“The thing that's most popular is generally speaking a bit too popular.”

The point: Social copying amplifies small leads into outsized dominance for category leaders.

Sources (1)

Tech that old people never hear about

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Marketing badly serves older people because it always wants to show products in young hands. The average new VW Golf buyer is probably about 59, but the ads show 28-year-olds. Bone-conduction headphones are marketed to joggers and swimmers, yet they are a godsend for hearing loss because they bypass the parts of the ear that deteriorate with age; no old people know. Samsung's folding phone has a secondary market among the over-60s, because standard handsets are too small once your eyesight goes; Rory has had a cataract operation.

“There's a whole lot of tech out there which is brilliant for older people, but they just aren't told about it.”

The point: Products often have valuable unmarketed audiences that youth-focused advertising ignores.

Sources (1)

The AA's 'fourth emergency service' and Rory's biggest regret

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Asked on stage with Scott Galloway what he most regretted, Rory named a campaign by another agency for the AA, whose line 'To our members, we're the fourth emergency service' had brought extraordinary growth. A new marketing director wanted to get rid of it. Rory's regret is that Ogilvy didn't refuse to pitch and call it an act of brand vandalism. For the first week the creatives just sat there saying: this is really dumb, why would you do this? Consistency through successive marketing directors is the rarest quality of all.

“We could have just refused to pitch and just said this is an act of brand vandalism.”

The point: Abandoning a working brand idea for novelty destroys value; consistency is rare and therefore valuable.

Sources (1)

The ad industry is the Meghan and Harry of business

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Separating media from creative was an act of total self-harm by the advertising industry, with media agencies taking the money that properly belonged to creative ones. The industry, Rory says, is like Meghan and Harry: every time it has a choice, it makes the wrong decision. They had the chance to be the royal family's diffusion brand, Polo to Ralph Lauren's Purple Label, and threw it away getting angry about random things, like not being able to buy avocados in the UK.

“Every time they have a choice, they make the wrong decision.”

The point: Splitting media from creative fractured the industry's value, a self-inflicted structural error.

Sources (1)

The Belgian problem

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There was an old British joke that there were no famous Belgians. In fact there were many, but great artists got called Flemish and anyone who became famous was assumed to be French, like Jacques Brel or Hergé. Rory says marketing has the same problem: when it succeeds, nobody calls it marketing any more. People never say they were persuaded; they reverse-engineer a thought process ending in 'I decided to'. Product designers, logistics people and shareholders all prefer to credit anything but something as fluffy as marketing.

“When marketing succeeds, nobody calls it marketing anymore.”

The point: Successful persuasion becomes invisible, so the role of psychology in behaviour is systematically underestimated.

Sources (1)

The car dealer that gives you a hug

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Rory's micro advice: find one thing you do that competitors don't which creates disproportionate delight. It can be surprisingly cheesy and gratuitous. Someone sent him a case study of probably the most successful car dealer in Quebec, whose dealerships are full of cuddly toys; the strapline is 'the car dealer that gives you a hug', and every buyer gets a cuddly toy. Imagine presenting that to a board. Psychological solutions often cost remarkably little and capture what's really valuable about a customer, which may be their attention rather than their wallet.

“Imagine trying to present that idea to a board.”

The point: Charming, cheap distinctiveness can outperform rational differentiation per pound spent.

Sources (1)

The caravan Steve Jobs would have built

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Interviewed inside a wooden, Airstream-inspired caravan, Rory calls it the embodiment of reverse benchmarking. Everyone secretly wants a caravan, just as all men secretly want a shed or a canal boat. Storage aside, the obstacle is mostly image. This is what Steve Jobs would have built had he become a caravanner, leaning into design and above all wood. Rory lives in the grounds of a Grade I Robert Adam house: turn up with a bright white caravan and the neighbours would be appalled; put one of these in the wood and they would be delighted.

“This is what Steve Jobs would have had if he decided to become a caravanner.”

The point: Removing an image barrier can unlock latent demand for a whole category.

Sources (1)

The disadvantage of being Calvin Klein's daughter

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Talking of designer underpants, Rory shares his favourite strange problem of the rich. Calvin Klein's daughter once complained about a downside of her parentage that would never occur to anyone else: at a high point of romantic excitement with a man, she is confronted with her father's name in large letters on his waistband. The rest of us, Rory observes, have never had to put up with that.

The point: Branding placed in intimate contexts reaches people in ways its owners never anticipated.

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The first solar panel on the street is the hardest sale

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Rory saw video conferencing as a proxy for other adoption problems, like electric cars and solar panels. Financial incentives and legislation still have a role, but the most difficult sale of all is the first solar panel on the street. Once there is one, the second sale is easier and the third, fourth and fifth almost a breeze. That has important implications for advertising: it may be most effective precisely when, in cost-per-sale terms, it appears most costly.

“The most difficult sale of all is the first solar panel on the street.”

The point: Social proof compounds, so early, expensive-looking adoption can be the most valuable spending.

Sources (1)

The glass-sided toaster on page six

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Looking for a toaster on Amazon, Rory persevered to about page six and discovered glass-sided toasters exist. If you only toast one kind of bread it hardly matters, but Britain is good at morning goods, scones, muffins, crumpets and pikelets, all needing different toasting, so seeing inside is a godsend. A retailer would put it on prominent display so anyone willing to pay 40 or 50 pounds more would not miss it. Amazon's algorithm instead threw him toasters so cheap he would not trust them not to catch fire.

“Toasters so cheap I wouldn't trust them not to catch fire.”

The point: Algorithms optimised for volume bury the premium products that willing buyers are looking for.

Sources (1)

The hotel that talks about cocktails, not food

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A London hotelier told Rory they lacked room for a really good kitchen, so their food was fine but unexciting. Their solution was to raise no expectations about the food at all. Instead they hired one of London's best mixologists and talked about the drinks. While guests focus on the incredible cocktails they order chicken wings, which are perfectly good, and nobody complains. You must hit a basic threshold everywhere, Rory adds, but you can do one thing amazingly and keep the rest basic.

“We don't talk about the food, we don't raise any expectation about the food.”

The point: Directing attention to a strength and managing expectations elsewhere prevents disappointment.

Sources (1)

The King's doctor and Andrews Liver Salts

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David Ogilvy, in Ogilvy on Advertising, refers to a story of a man doubled over with indigestion when a man in a Rolls-Royce drives up and tells him he needs Andrews Liver Salts. The man turns out to be the King's doctor. The story went round, and Rory thinks it was almost certainly a deliberately instigated word-of-mouth campaign, an early form of social media marketing.

“It was almost certainly a kind of social media instigating word-of-mouth campaign.”

The point: Word-of-mouth stories with a credible messenger have long been engineered by marketers.

Sources (1)

The M&S app that lets you walk out like a shoplifter

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On the Marks and Spencer app you can walk round the shop, scan everything into your bag, hit pay with Google Pay and walk out like a shoplifter. Neither host had heard of it. Rory asks why anyone develops something like that and does not tell anybody. He blames an engineering or financial mentality that sees money spent on communication as a cost to be minimised, not an opportunity to be maximised.

“Money spent on communication is seen as a cost to be minimised, not as an opportunity to be maximised.”

The point: Underfunding communication wastes the investment already made in a product.

Sources (1)

The mail pack that worked because of rabbits

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A client brought Rory a mail pack that was three times as successful as any other, with the same offer, proposition and audience, and had asked all around the agency why. Rory told them: it is because there are rabbits on the envelope. About the only thing advertising has learned robustly in 40 years is that ads with animals tend to work better than ads without. We evolved to notice things with faces, particularly cute things, or things we might eat.

“I really hate to tell you this. It's because there are rabbits on the envelope.”

The point: Evolved attention biases can outweigh the rational content of a message.

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The most profitable brand does not measure its ads

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Rory says marketing submitting to narrow accountability measures such as ROI is flawed from the outset, because psychology's laws are more malleable than physics' and full of feedback loops. His extreme counter-example is the most profitable brand in the world, whether Rolex or LVMH: they do not measure their advertising effectiveness at all. They simply decide to sponsor Wimbledon and do it for 15 years.

“They simply decide that they're going to sponsor Wimbledon and they do it for 15 years.”

The point: The most valuable brand-building can come from consistent commitment rather than measured optimisation.

Sources (1)

The Pan-American whistle the South set its watches by

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The Pan-American, the train in the Hank Williams song, left Cincinnati daily for New Orleans and was famous for punctuality. Every time it passed the Nashville tower of WSM, the Grand Ole Opry station, it whistled, and the station broadcast the whistle, so the American South set its watches by it. WSM was itself branded: it was sponsored by an insurer and stood for 'We Shield Millions'. Rory offers it as a perfect long-running branded ritual, the kind of thing marketers neglect while obsessing about breadth and reach.

“Most good songs frankly are about trains.”

The point: Repeated, long-lived rituals can carry a brand promise like reliability better than any reach-driven campaign.

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The penguin nightlight that beat free energy

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Perhaps advertising's greatest finding is that ads with cute animals work better. A client's prize draw for a year's free energy, worth over £1,000, got 67,000 entries; a draw for a £15 cute penguin nightlight got over 360,000. One customer turned down a £200 refund, saying 'No, I'd rather have a penguin.' Rory admits he would still struggle to recommend lemurs to a board. Evolution may explain it: we notice living things, and a gift for one's child may feel more rewarding than cash for oneself.

“No, I'd rather have a penguin.”

The point: Apparently nonsensical preferences are often non-sense: they make sense once you judge motives correctly.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

The person who coined 'loaded fries' created huge value

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Rory reckons some of the greatest economic value of recent years was created by whoever came up with the phrase 'loaded fries'. Everybody loves chips with tasty stuff on top (Canadians call it poutine and eat little else apart from maple syrup), but until it had a name you couldn't sell it. A menu can't say 'chips with stuff on top of them'. You have to name a thing before people can want it.

“Until you had a name for loaded fries, you couldn't sell them.”

The point: Naming a category makes it legible and desirable; language can create a market.

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The pet rock is rather a wonderful thing

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The pet rock is usually derided as one of the worst crimes of marketing excess. Rory defends it: it takes something of which there is a great abundance, random bits of rock, and attaches emotional value to it. Intangible value needs no atoms and no scarce resources to create. If we could do more of that, he argues, we would lead richer lives with less stuff, which is why he sincerely sees advertising as part of the solution to environmental problems.

“If we could actually do more of that, strangely we would lead richer lives with actually less stuff.”

The point: Intangible, emotional value is not a scarce resource, so creating it can raise wellbeing without consuming the planet.

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The petrol-powered toothbrush

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A petrol engine is a cathedral, a magnificent achievement, but all its moving, rattling, filtering parts exist only to rotate a shaft. An electric motor does that directly, which is why, apart from perhaps the lawnmower, every rotating thing in your house is electric. Rory recalls an ad, he thinks for Renault's first electric car, in which a man's toothbrush is driven by a little petrol engine and fumes come out of his razor. Nearly everything else in life had gone electric; the car was only a matter of time.

“All of those things exist for only one reason, which is to rotate a shaft.”

The point: Showing the absurdity of the old technology in a familiar context makes the new one feel inevitable.

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The priest paid in whiskey to praise electricity

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Influencer campaigns are not new, Rory says, just amplified. He met someone whose grandfather worked for Ireland's Electricity Supply Board in the 1920s and 30s, encouraging people to electrify their homes. His 'social media influencer campaign' was brilliant: every month he gave the local priest a bottle of whiskey on condition that, in his sermons, the priest would occasionally mention how much he enjoyed having electricity at home.

“Every month he gave the local priest a bottle of whiskey on condition that in his sermons the priest would mention how much he enjoyed having electricity.”

The point: Trusted local voices have always been the most powerful media.

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The pumpkin spice latte came near the bottom of the research

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When Starbucks researched possible autumn drinks, the pumpkin spice latte, which Rory has never tried because it sounds disgusting, appeared very low on the list. They ignored the research, went with gut feel, and it has made them about half a billion dollars. Did the marketing team get a bigger budget? Basically no: they kept their jobs for another year. If a bold idea fails you get all the blame; if it succeeds, the annual report credits economies of scale or supply chain management.

“You never read in an annual report, 'we had a great marketing idea and, boy, did it make us a lot of money'.”

The point: The risk and reward of bold marketing is so asymmetric that organisations under-invest in fat-tailed bets.

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The real world is a medium too

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Rory notes Gymshark's lucky feature: its brand is very visible on the clothing, and that is completely normal, so you get unspoken word of mouth as people see who is wearing it and copy them. One of his mantras is that the real world is a medium too. Advertising gets fixated on what appears on a screen and forgets people spend most of their lives in the real world, seeing things and drawing inferences from them.

“One of my mantras is the real world is a medium too.”

The point: Visible use in everyday life is a powerful, underrated advertising channel.

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The retailer that sent Christmas presents

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An online retailer in Kent that Rory's wife buys from, Luxe Leopard, simply sent them a box of presents at Christmas. Cynically, they were probably things that would have gone on sale anyway. But Rory is sure the relational value, in frequency, loyalty and basket size, easily paid for itself. He is not saying everyone must do it; it is just weird how few people test it.

“At Christmas they just sent us a load of presents.”

The point: Unexpected gifts build loyalty that outweighs their small cost.

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The selfish reasons to be green are never sold

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Rory asks whether the tone of much environmental protest has a natural revulsion to consumerism, making it hair-shirted. There is an optimistic message available: a future, for our children or our older selves, of abundant clean energy. But that upside has never been sold because campaigners are too busy condemning any form of energy consumption. He has always thought there are selfish reasons to be green that are never communicated.

“There are actually selfish reasons to be green, which are never communicated.”

The point: Behaviour change sells better as an upgrade with personal benefits than as moral sacrifice.

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The Shawshank Redemption bombed because of its title

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The Shawshank Redemption, now one of the world's favourite films, bombed on release. Its launch clashed with a blockbuster, but why call it that? Morgan Freeman was livid: Stephen King's story was called Rita Hayworth and Shawshank Redemption, and he asked why you would choose Shawshank over Rita Hayworth. We remember the title now only because the film became famous. Rory adds that many marketing failures are simply a lack of patience with significant new ideas.

“Why the hell would you go with Shawshank, not Rita Hayworth?”

The point: A poor name can sink a great product; hindsight hides how bad it was.

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The shoplifters were cooler than the customers

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On the subject of people nicking branded glasses, Rory shares a rumour he stresses is purely anecdotal and not to be taken as gospel: Tommy Hilfiger supposedly tolerated a moderate degree of shoplifting, because the people who stole the clothes were cooler than the people who bought them.

“The people who stole the clothes were cooler than the people who bought them.”

The point: Who is seen using a brand can matter more to its image than the revenue from each item.

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The Slate truck's explicit minimalism

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The Slate truck is a minimalist 25,000-dollar electric pickup with knobs instead of screens and wind-up windows, customisable with add-ons. It is explicit about its trade-off, like Avis's "We're number two, so we try harder". Consumers are happy with trade-offs that are explicit; the problem with much corporate cost-cutting is that it is imposed rather than chosen. Rory predicts Slate will discover something valuable: he would share a Slate truck with anybody, since if they are sick in it you hose it down, whereas he will not even let his wife drive his own car.

“The consumer's very happy making trade-offs so long as they're explicit.”

The point: Chosen, explicit minimalism attracts customers, while hidden cost-cutting alienates them.

Sources (1)

The teaching hospital of advertising

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David Ogilvy hated people calling Ogilvy 'the university of advertising', because it made it sound theoretical and academic. He preferred 'the teaching hospital of advertising': a place that both practises and conducts research, each complementing the other. Rory thinks that is the natural home for behavioural science too, noting how many behavioural scientists have migrated to business schools.

“He preferred to think of it as the teaching hospital of advertising.”

The point: Practice and research improve each other when they happen in the same place.

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The USP was cleverer than we thought

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It became fashionable to disparage the unique selling proposition, but Rory says behavioural science suggests it was cleverer than realised. Focusing on the one thing only your product has makes it important, because attention confers importance, which gives people a reason to feel comfortable buying. It also exploits loss aversion: it makes a very big deal of the one thing you will not get if you buy from somebody else.

“The USP works through loss aversion: it makes a very big deal of the one thing you won't get if you buy the product from somebody else.”

The point: A single amplified differentiator both justifies the choice and frames rivals as a loss.

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The Wolford paradox, why online ads skew to luxury

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After buying expensive Wolford tights direct, Rory saw ads for nothing else for months, yet he never sees ads for Unilever or P&G brands, though he does the household shopping (including Finish Quantum 'Uber Pro', because he's a sucker for marketing). Dishwasher tablets are low margin, frequent purchase, low attribution and not impulse buys, so ads are hard to justify. Direct Wolford sales are high margin, high attribution, impulse-ish. In the analogue era, ads roughly matched where he spent money; online there is a complete disconnect between where value lies in the economy and where attention is directed.

“There's a complete disconnect between where value lies in the economy and where attention is directed.”

The point: Measurement-driven ad markets over-serve high-margin, trackable goods and starve mainstream categories of attention.

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They're old because they're good at marketing

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Some old companies also build great brands, and Rory realised the causation runs the other way from what he assumed. He quotes John Kay's 'The Corporation in the Twenty-First Century': the firms that resisted the demands of shareholder value included Procter & Gamble, Colgate-Palmolive, Coca-Cola, Unilever and Nestlé, 'pretty much our client list', whose cultures were dominated by marketing people preoccupied with responding to customers. That responsiveness is the key to their durability.

“They're not good at marketing because they're old. They're old because they're good at marketing.”

The point: Customer-focused marketing culture is a cause of corporate longevity, not a luxury of it.

Sources (1)

Timotei, a shampoo men could buy

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Many successful businesses have stumbled on the solution to a psychological problem that removed an obstacle to purchase. Timotei shampoo did disproportionately well, the theory goes, because its plain green and white packaging made men happy to buy it, whereas other shampoos aimed at women, with marbling, pink or female imagery, were somewhat repellent to men. Its advertising, a blonde woman washing her hair in a mountain stream for no apparent reason, probably appealed to men too.

The point: Removing a subtle social friction can open a product to an overlooked audience.

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To an ad agency, every problem looks like a brand problem

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Because agencies historically earned their money on commission from brand communications budgets, they are in perpetual danger of being the man with a hammer: defining every problem as a brand and communications problem so they can solve it that way. Dave Trott says some people who call themselves creative are merely stylists. A healthy, solution-neutral approach admits that sometimes the change is not a comms problem, and occasionally, though a good marketer would try it last, the honest advice is to make the product a bit cheaper.

“To a man with a hammer, everything looks like a nail.”

The point: Define problems neutrally, not in terms of the solution you sell.

Sources (1)

Treason doth never prosper

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Sir John Harington, a 16th-century poet who also invented the flush toilet (and, Rory adds, an ancestor of Game of Thrones actor Kit Harington), wrote that treason never prospers, because when it does, none dare call it treason. A successful act of treason is called a revolution, and its makers become the government and define what things are called. Rory sees the same asymmetry of perception in marketing: whenever it succeeds, the success is attributed to everything except marketing.

“Treason doth never prosper, and here's the reason: when it doth, none dare call it treason.”

The point: Winners rename their methods, so the true cause of success is often hidden by its own success.

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Unmet needs and met unneeds

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Odeon's tests found that telling people your points are waiting for you, claim them now, tripled sign-ups, while exclusive preview screenings, which people in research say they love, were not much of a motivator. Rory says marketing is about two things: unmet needs, and met unneeds, where market research leads you to invest heavily in something consumers claim to care about but their behaviour shows does not matter. What people say is what sounds rationally plausible, not what is true, so only experiments reveal it.

“Marketing's about two things. It's about unmet needs, but it's also about met unneeds.”

The point: Stated preferences mislead investment; only behavioural experiments reveal what actually motivates people.

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Unpaid robot door-to-door salesmen

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Imagine a parallel universe with unpaid robot door-to-door salesmen: life would become intolerable. If firms can generate limitless content at no cost and thrust it at people, it cannot work. All media that are not expensive get killed; email is still effective, but being free damages it. Cost forces intelligent targeting: an extra pound per direct-mail recipient makes you think. Rory suggests reversing the polarity of advertising, with consumers employing informational agents optimised for them, not the advertiser. Otherwise we get hyper-competition, like getting into Harvard, where the price exceeds the prize.

“All media that aren't expensive get killed.”

The point: When communication costs nothing, attention is swamped, so control may need to shift to consumers.

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Use behavioural science to talk marketing to the board

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The real problem for agencies is not that marketing directors dislike them but that boards do not respect marketing directors. When Rory started, about 70% of ad spend came from packaged goods firms like Unilever and P&G, where CEOs had done stints in marketing and it sat on the board. That share is now about 20%, and marketers are treated as suppliers justifying their existence. Say 'brand' to a board and they switch off as too fluffy. Say 'we have a theory people behave this way, and we'd like to test it' and you get a real conversation.

“If they hear the word brand they go, too fluffy for me, switch off.”

The point: Framing marketing as testable behavioural hypotheses earns boardroom attention.

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User-generated content is called agriculture in food

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Rory maps the old and new media worlds onto food. His childhood media was a monopoly supplier, Rupert Murdoch or the BBC, feeding a dependent public pathetically grateful for anything. Now the user is involved. What digital people call user-generated content is called agriculture in the world of food. A mash-up, taking someone else's content and making something new, is called cooking. Food made to share is food 2.0, and portable British food like fish and chips or the pasty is mobile food.

“Although it's called agriculture in the world of food.”

The point: The participatory media ecosystem is a fairer, more varied way of creating value than monopoly broadcast.

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Volkswagen's Night Driving and the joy of London at 2am

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One of Rory's favourite ads of all time is Volkswagen's 'Night Driving', based on the insight that for small cars often bought by city dwellers, there is a moment when everyone understands why they own a car: rumbling over Shooters Hill at 2am. Before speed cameras you could hit 80 on the elevated Westway, and you used to be able to drive right through Paddington station and out onto Praed Street.

“There is this extraordinary moment where everybody understands why they have a car.”

The point: Great ads find the specific moment when a product's value becomes obvious.

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Waitrose is posh because of what it doesn't sell

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What you don't do is also communication. Rory admires whimsical restrictions like Thrasher's fries in Ocean City, which offer no ketchup, only salt and vinegar. Objectively, what makes Waitrose posher than Tesco is less what it sells than what it doesn't, or what is not prominent. Pork scratchings, delicious but unfashionable, are always on the bottom shelf, and there are not three yards of Pop-Tarts. Much of Waitrose's curation is the hiding or absence of naff foods rather than the presence of posh ones.

“What you don't do is also a form of communication.”

The point: Brand positioning is created by deliberate absences as much as by what is offered.

Sources (1)

Walkers' extra flavours bought shelf space

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Brands launch endless variants partly for shelf facings: shoppers think the brand with more space is more popular. As more crisps were bought in supermarket multipacks, Walkers added many new flavours. About 90 percent of Britons buy salt and vinegar, ready salted or cheese and onion, prawn cocktail about 8 percent, the rest niche, but the range made Walkers look far bigger than rivals. The risk: 'light' and 'super-light' variants can push the main brand out of the sweet spot in the middle.

The point: Range extensions can work as a popularity signal on the shelf, but can also wreck the choice architecture.

Sources (1)

Walmart let RV owners park for free

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Rory speculates that Starlink and electric vehicles could let part of the younger population go nomadic in electric motorhomes. He cites one of the cleverest marketing ideas in the US: Walmart was very friendly to the RV community, letting them stop in its car parks and providing water and facilities. A Walmart is easy to find, feels safe, and has a 24-hour shop next door, so unsurprisingly these people shop at Walmart. A very clever symbiotic arrangement.

“A very clever symbiotic arrangement.”

The point: Generosity to a niche group can buy loyalty more cheaply than advertising to it.

Sources (1)

Was Mad Men accurate? It depends who you ask

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Rory had dinner with Joel Raphaelson and his wife, both Ogilvy copywriters in the 1950s and 60s, and asked how accurate Mad Men was. Joel said it was nothing like that: the philandering and drunkenness were monstrously overblown. His wife said: 'Joel, it was exactly like that.' The answer depended on the male or female perspective. Rory adds that many US agencies then wouldn't even handle alcohol ads, and visiting American directors' wives reported with horror that there was quite a lot of dancing at the JWT London Christmas party.

“Joel, it was exactly like that.”

The point: The same reality looks entirely different depending on where you stand in it.

Sources (1)

We've cracked solar technology but not how to sell it

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Someone needs to do for solar panels what the Overground did for railways. The technology is cracked; nobody has cracked how to sell it. No one wants to spend 25,000 pounds on an experiment that might go badly wrong. If someone could make them modular, so people could install them bit by bit, we might be off to the races.

“The future is already here, we just don't know how to sell it yet.”

The point: Adoption of good technology is often blocked by perceived risk, a marketing problem rather than an engineering one.

Sources (1)

WeTransfer, the only online ads with stature

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The one online exception Rory finds to cheap, transactional display advertising is WeTransfer. Its ads are huge, the equivalent of the back page of Vogue: 'look at me, this is important', rather than 'buy this at 20% off'. Rory, who browses on a 55-inch 4K TV because his eyesight is going, recently learned on a Zoom call that WeTransfer was founded by an ad man.

“You get an ad that's the equivalent of the back page of Vogue.”

The point: Online media can carry brand stature if it offers scale and prominence rather than efficiency.

Sources (1)

When sausage rolls talk about the migrant crisis

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Rory thinks brand purpose made too many brands too serious. He does not want a world where everything is trying to save the world: that will take huge cooperation and perhaps legislation, not one brand at a time. Occupying the highest moral ground was cute when the first ten brands did it, and for Dove, a brand about beauty without artifice, it was entirely appropriate. But if your sausage rolls end up talking about the migrant crisis, things have gone too far. Humour, by contrast, simply adds value to communication.

“If it ends up with your sausage rolls talking about the migrant crisis, things have gone too far.”

The point: Purpose suits some brands, but forcing moral seriousness on every product crowds out humour and charm.

Sources (1)

Where can you go from Newport station?

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Rory's father taught him that a salesman must know everything about the product and also put himself in the mind of someone who knows nothing. Railway people love railways and assume everyone else knows what they know. Ask a random person in South Wales where you can go from Newport station and they say London, maybe Cardiff and Swansea, then freeze. In fact you can reach Newcastle, Portsmouth, Bristol, Cheltenham and many more. Often the simple answer to why people are not doing something is that they do not know. A lot of advertising works just by telling people things they did not know.

“A hell of a lot of advertising just works because you're telling people stuff they didn't know.”

The point: Experts forget how little customers know, so plain information is often the most effective message.

Sources (1)

Whether you like it or not, a marketer is a broadcaster

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If you are a marketer today, Rory says, you are a broadcaster. When you must attract attention rather than buy it, as in conventional advertising, the normal rules loosen: content that generates its own audience follows different rules, needs to be more oblique, and raises questions of brand personality. Great ads have long used the pratfall effect, admitting failings, but the level of honesty and candour now required is different. Context really matters, and communication differs violently between contexts.

“Whether you like it or not, if you're a marketer, you're a broadcaster.”

The point: Earning attention requires different, more candid and oblique rules than buying it.

Sources (1)

Why airports sell giant Toblerones

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Rory asked Toblerone what it is about flying that makes people suddenly need a two-foot Toblerone the size of a baby's arm, or a giant Chupa Chups, since the two aren't naturally connected. Their answer was a snowball effect: they happened to be in airports early, gained an unusual dominance of airport retail, and it has simply been self-perpetuating ever since.

The point: Early accidental footholds can become self-reinforcing category dominance.

Sources (1)

Why the meerkat is Russian

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In marketing it's the silly cherry on the cake that makes all the difference. Why does the Compare the Market meerkat have a Russian accent? There's nothing Russian about meerkats and none in Russia. Why the smoking jacket? Such wacko touches, like the DoubleTree cookie, are the first thing finance people try to kill, but precisely because they're unnecessary they're salient, memorable and distinctive. Rory thinks the idea itself came from a creative from Barcelona, since 'mercat' is Catalan for market: no process gets you there.

“There's nothing Russian about meerkats. There are no meerkats in Russia.”

The point: Arbitrary, unnecessary details make campaigns distinctive and can't be produced by process.

Sources (1)

Why Tide should be cautious, and dress-down Fridays

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If you run Tide, with around 70% of the US detergent market, you should be very cautious: the downside of a bold experiment is far bigger than the upside, and there is a limit to how often people wash clothes. Rory would concentrate on category growth instead. He cites a rumour, which he personally doubts, that Unilever or P&G introduced dress-down Fridays in the UK, because chinos and jeans get laundered while suits get dry-cleaned.

“You dry-clean suits and you launder chinos or jeans.”

The point: Dominant brands should avoid high-variance bets and instead look for ways to grow the whole category.

Sources (1)

Why Wales has no nation brand

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Ireland and Scotland export potent national identities; why hasn't Wales? One Welsh commentator argues Welsh emigrants rapidly lose their Welshness. You hear 'Irish American' and 'Scottish American', never 'Welsh American', though Rory claims Welsh ancestry for Thomas Jefferson, arguably Elvis, Tammy Wynette (real surname Pugh) and half of Hillary Clinton. A sixteenth-Irish American wears green; Welsh Americans barely know where Wales is. The greatest Welsh American may be Murray 'the Camel' Humphreys, Al Capone's number two, 'the nicest man in the mob', who would kill people but disapproved of swearing.

“Killer, but not a swearer.”

The point: Diaspora identity is a brand asset that some nations cultivate and others let dissolve.

Sources (1)

Why, and why now

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Marketers focus on why you should buy something, but Rory thinks people ask a second question, especially with more discretionary spending: why now? He offers a crude model for Binet and Field's 'long and the short of it': the long answers why (you have heard of it, lots of people have it, so it is safe), while the short answers why now (20% off, a free hat). Many people desired an American Express Gold Card but never applied until a letter arrived and they thought 'this is my chance'.

“It's not just about why, it's about why now.”

The point: Brand building creates desire; activation needs a reason to act at this moment.

Sources (1)

Wi-Fi calling that nobody was told about

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Mobile networks introduced Wi-Fi calling, and almost every handset under six years old supports it, but it is off by default and nobody goes into their phone settings. Rory told a mobile network client it transformed his satisfaction, because 90 per cent of his lost signal was indoors, in basements or steel-framed buildings with Wi-Fi. No signal in a Scottish field he can walk out of; no signal indoors in the rain, with Wi-Fi right there, is a real pain. Yet the networks never told anyone.

The point: Businesses spend heavily on useful features and then fail to tell customers they exist.

Sources (1)

Wine marketing turns inconsistency into a virtue

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In an aside about fancy restaurants pampering wine drinkers with talk of terroir, Rory says wine marketing is basically a way of turning inconsistency into a virtue. The pitch amounts to: we have a fantastically inconsistent product, every year it's different, isn't that brilliant? His view: get it right the first time.

“Wine marketing is basically a way of turning inconsistency into a virtue.”

The point: Clever framing can convert a product's flaw into its most celebrated feature.

Sources (1)

Woodrow Wilson took a PR man to Paris

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Rory notes that persuasion was taken so seriously in that era that President Woodrow Wilson took Edward Bernays, a relation of Freud and often considered the godfather of mass persuasion and PR, across the Atlantic with him to the Paris Peace Conference. Bernays was hugely influential, mostly for commercial purposes in US advertising.

“The president of the United States took a PR guy, an expert in persuasion and public opinion, across the Atlantic with him.”

The point: Leaders once treated persuasion as central to statecraft.

Sources (1)

You can't fragment the letterbox

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Asked how brands cope with consumers buying across many channels, Rory points out that addressable media resists fragmentation. In his old direct-marketing days he always said you cannot fragment the letterbox: everybody only has one. The same applies electronically. Channels will multiply further with AI, and generally the more channels you sell through, the more you sell, unless your brand is built on scarcity.

“You can't fragment the letterbox. Everybody only has one.”

The point: Addressable channels reach a person directly however fragmented media becomes.

Sources (1)

You never have to turn back a page in Sherlock Holmes

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Rory and Rick Rubin both grew up on Sherlock Holmes, which Kingsley Amis thought among the greatest prose in English. Much writing from 1880 sends you back to page 27 to work out who someone is; at no point reading a Holmes story has Rory had to go back a page. For persuasion, he favours verbs of movement, verbs over adjectives and adjectives over adverbs, Anglo-Saxon words over Romance ones without being silly about it, and turning features into benefits.

“At no point in reading a Sherlock Holmes short story have I ever had to go back a page.”

The point: Clarity that never makes the reader backtrack is the foundation of persuasive writing.

Sources (1)

YouTube went from TK Maxx to Wikipedia

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Jimmy Carr said YouTube became the biggest TV channel in the world and nobody noticed. Rory adds that YouTube and TikTok reached such a scale that they became searchable. In the early days you browsed YouTube like TK Maxx: no specific purchase in mind, just a shufti for anything worth having. Now young people search TikTok all the time, which never occurred to Rory, and YouTube is effectively Wikipedia for video. That shift in how content is consumed has passed many people by.

“YouTube is effectively Wikipedia for video. That wasn't the case 10 years ago.”

The point: At sufficient scale a browsing medium becomes a search medium, changing how content must work.

Sources (1)

Against narrow logic and economics 137

The average is the enemy of the marketer

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US scientists designed the perfect fighter-plane seat around the average pilot: average forearm, thigh, backside and so on. Virtually nobody found it comfortable. Plenty of people have an average forearm, but almost nobody is average in all eight dimensions. Averaging one variable, like door-handle height, works; averaging many designs for a customer who does not exist. The answer was adjustable seats. As Mark Ritson says, the average is the enemy of the marketer: every time you create an average you lose information. Most data is collected to report totals upwards to finance, but marketers should do a 90-degree flip and look at what makes people different. The open-plan office is the classic attempt to solve for the average; a proper office would be half library, half pub.

“We actually don't want to know the averages. We want to know the exceptions, the anomalies, the paradoxes, the weird things.”

The point: Designing for the average across many variables serves nobody, so look for the variance and build in variety or adjustability.

Variants: Rory credits Nassim Taleb's point that we optimise for the average when we should optimise for the right level of variance. Other tellings apply it to mid-market retail ('nobody gets an endorphin rush'), to single-representative-agent economic models, and to changes that make something 4 per cent better on average while making it a royal pain at the decisive moment.

Sources (15)

Assume perfect information and trust, and marketing need not exist

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To make the maths tractable, standard economics assumes every purchase is a standalone, utility-maximising transaction made with perfect information and perfect trust: people know what they want, what it is worth, and trust the seller completely. Your finance director, trained on Economics 101 and an MBA, unconsciously believes this model. But if you assume perfect information and perfect trust, you have imagined a world where marketing needn't and shouldn't exist: things would simply sell themselves, efficiency and effectiveness become the same thing, and the only job left is cutting cost. That is why finance sees marketing as a cost rather than an advantage. Those conditions exist on Earth 'somewhere between very rarely and never, and it's closer to never', and our brains evolved to make quick, non-disastrous decisions with perhaps 10 per cent of the information.

“If you assume perfect information and perfect trust, you've just assumed a world where marketing needn't and shouldn't exist.”

The point: Marketing creates value in exactly the gaps of information and trust that economic models assume away, so anyone reasoning from those models will see it as pure cost.

Variants: One telling illustrates it with a supermarket: perfect information implies instantly picking the utility-maximising 400 items from 40,000, a calculation that would take a supercomputer something like half the age of the galaxy. Elsewhere Rory concedes that if consumers did have perfect information and trust, he would be out of a job.

Sources (8)

Economics is a Tube map, look at what it leaves out

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Harry Beck's Tube map, drawn by an electrical engineer from wiring diagrams, is a schematic, not a map, yet people use it as a map of London. A useful mental aid becomes a mental prison. Tourists ride from Leicester Square to Covent Garden, a tennis ball's throw. South London barely appears because it runs on overground rail, so friends moving from Fulham to Herne Hill feared the outer darkness and found their commute halved. Economics is the same: it makes things navigable at a huge price in distortion, and there are 'South London problems' where it is a hopeless guide. Rory's property tip: since everybody uses the Tube map, get a rail map and buy where a Tube-map reader never would, near a fast overground station.

“There are South London problems, as I call them, where economics is an absolutely hopeless and misleading guide.”

The point: When everyone navigates by the same model, its blind spots become mispricings, and the advantage lies in what the shared map leaves out.

Variants: A gentler version: you can memorise the Tube map, but the more valuable knowledge is knowing when to take a cab, meaning recognising problems that have nothing to do with economics. Another states the general rule: the more people use a model, the more the gains lie in what it omits.

Sources (7)

Finance people are bad at maths, they use the wrong maths

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What marketers have never dared say, Rory argues, is that finance people are bad at maths: not innumerate, but using the maths of certitude and determinism rather than probability. Marketing is fat-tailed, as Taleb would say: perhaps 3 per cent of what you do delivers 50 per cent of the value, and a good experiment, once it works, works in perpetuity. Yet revenue from ideas had years ago appears as ordinary revenue, buying marketing no future latitude. Even the choice of a year or a quarter as the accounting unit is arbitrary. Banks treated a fat-tailed risk as thin-tailed and caused the 2008 crisis; demanding short-term attribution now damages innovation the same way.

“It is ludicrously dangerous to use thin-tailed deterministic maths in a probabilistic fat-tailed activity.”

The point: Activities with rare, huge payoffs must be judged with probabilistic, portfolio maths, because spreadsheet averages and short accounting periods systematically starve them.

Variants: Rory frames it as a 'Ukrainian' strategy: rather than subordinating marketing to finance or pleading creativity (a dirty word to finance, where creative accounting means Enron), take the fight onto finance's own turf and say their maths is inadequate. One telling extends it to paying agencies by the hour, which rewards execution time rather than rare ideation.

Sources (5)

Max Planck, economics is too difficult

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Max Planck, founder of quantum theory and perhaps the most brilliant mathematician of his century, had an economist friend who suggested he switch careers: more money, conferences, advising governments. Planck thought for a moment and declined: he couldn't be an economist, the maths was too difficult. The economist was baffled, since Planck could have mastered the maths economics actually uses 'in an afternoon drunk and playing the piano'. What he meant was the maths you would need to model human behaviour properly, with its interdependencies, feedback loops and non-linear effects, in which people influence one another. Or, as Rory puts it, imagine how difficult physics would be if atoms could think.

“Imagine how difficult physics would be if atoms could think.”

The point: Systems whose parts react to each other and to being modelled are harder than physics, not easier, so neat economic maths is convenient but dangerously inaccurate.

Variants: In one telling the 'atoms could think' line is credited to the Nobel physicist Murray Gell-Mann rather than Planck, with the addition that in markets forces like word of mouth go unmeasured, so we pretend they are zero.

Sources (5)

Most people are trying to win an argument, not solve a problem

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Rory sees a fundamental problem in business and politics: most people are trying to win an argument rather than solve a problem, and the mental processes are quite different. In a large organisation you can only act once you have won an argument, so you start from a reasonable assumption, make three or four logical deductions, cherry-pick supporting data and claim the single right answer, usually best practice. To win an argument you narrow the solution set to one point; to solve a problem you want it large. A consumer buying trousers need not present a nine-page deck to the family about seven competing quotes, but a business must, so it pretends the problem is simpler than it is. Education rewards this, and we hire and promote for it.

“Most people are trying to win an argument rather than solving a problem.”

The point: Institutions reward defensible logic over effective problem-solving, so the need to justify a decision shrinks the range of solutions considered.

Variants: In politics, crediting Jimmy Carr, he says we are optimised for debate rather than deliberation, which seeks an accommodation instead of a single right answer. He cites John Ralston Saul's Voltaire's Bastards on rationality being seated too far above intuition, creativity and humour, and notes that marketing's strength, finding seven ways to solve a problem, makes it unpopular.

Sources (5)

Two broken binoculars, economics and market research

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Nearly all business assumptions about people, Rory says, come through two lenses on a particularly dodgy pair of binoculars. One is neoclassical economics, which assumes perfect information, perfect trust and utility maximisers: cut the price and more people buy. The other is market research, which assumes that if you ask people what they want or why they did something, they will tell you accurately. Both are useful at times, but even combined they are incomplete and sometimes 180 degrees wrong, because the real reasons people buy sit in parts of the brain opaque to introspection, or are simply embarrassing to admit. Outside their field of view lie framing, loss aversion, satisficing, signalling and trust. Nobody will ever say 'I would buy that if it were more expensive', yet it happens.

“Most of what we feel isn't even thought, let alone spoken.”

The point: Economic logic and stated preference share the same blind spots, so the biggest opportunities lie in a third way of seeing: observing and testing what people actually do.

Variants: Other images for the same argument: letting go of two handholds at once, or two crutches that need what a Buddhist might call a third eye. In one telling he quotes Keynes: better to be vaguely right than precisely wrong.

Sources (5)

All big data comes from the past, Nokia and the iceberg

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An anthropologist, Tricia Wang, working in a poor part of China, told Nokia that once a smartphone, even an iPhone knock-off, became available, people would sacrifice half their disposable income to own one. Nokia replied that she had about 150 data points and they had 500,000, plus McKinsey work on what people would pay for a phone, so smartphones could wait. But all their data concerned feature phones, and all big data comes from the same place: the past. There is no data about the future, so when the context changes, the rules change. The Titanic had plenty of data saying no icebergs were expected that far south in April; then one anecdotal report trumped all of it. Iceberg dead ahead is only one data point.

“Iceberg dead ahead is only one data point. It just happens to be a really important one.”

The point: Data describes the past context, so its volume is no guide to its importance, and a single fresh anecdote can matter more than a mountain of historical averages.

Variants: One telling widens it into a list of data's biases: status quo bias, since there is lots of data about what is and little about what could be; quantification bias, since emotions come without numbers; and using data 'the way a drunk uses a lamppost: for support rather than illumination'. Another uses the Titanic to rehabilitate 'anecdotal' as acceptable information.

Sources (4)

Homo economicus exists, and he's your worst customer

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Behavioural economists say homo economicus, the utility maximiser of economic models, does not exist in the wild. Rory disagrees: about 15 to 20 per cent of people in many markets are a bit like that, and they are your worst customers. They care nothing for relationship, brand or reputation, only features and price; they have no give and take, will sue you, and defect within seconds to someone 3p cheaper. Holiday coach drivers told him the last week of the season, filled with people who booked the cheapest possible trip, is the worst week of the year: pass round a cap for tips and you might collect 5.47 pounds. Yet finance functions model and optimise businesses around exactly the customers they least want.

“Homo economicus does exist, and he's your worst customer.”

The point: Designing a business around the purely price-driven customer optimises for the least loyal and least valuable segment and degrades the experience for everyone else.

Variants: In one telling he borrows John Kay's joke that economics describes his cat very well: self-interested, short-term, zero empathy, broadly psychopathic though charming. In another he notes he paid 70 more for Admiral insurance, helped by its Welsh call centre.

Sources (4)

Karl Popper's clouds and clocks

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Karl Popper said most things sit on a spectrum between clocks and clouds. Clocks, like planetary motion in Newtonian physics, obey simple, codifiable rules and suit numerical expression. Clouds, like meteorology and human behaviour, are complex systems that behave non-linearly and react in counterintuitive ways. Popper's further claim, which Rory endorses, is that the worst mistakes are made by treating clouds as if they were clocks: modelling something complex, interdependent and non-linear as if it were a simple lever or cog. People who obsess about clocks assume proportionate inputs are needed for a given change, and miss the disproportionate effects human behaviour allows.

“The greatest mistakes are made by people trying to treat clouds as if they're clocks.”

The point: Before applying a precise model, ask whether the system is a clock or a cloud, because clockwork methods applied to complex systems produce the worst errors.

Variants: Rory links it to 'measurebation' and to Hayek's Nobel speech, which made the same point about economics aping physics.

Sources (4)

No such thing as a free lunch? Psychology allows magic

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Mainstream economics modelled itself on Newtonian physics, and Milton Friedman's 'there's no such thing as a free lunch' is its version of the conservation of energy: value cannot be created from nothing, only from labour or materials. Engineering, physics and economics share a terrible feature: they don't allow for magic. Rory says the line is rubbish: we have all had loads of free lunches, and they are better than the kind you pay for. More to the point, it doesn't matter whether the lunch is free, only whether it feels free. In psychology there is magic all over the place: change the context and you change the meaning, and you can make something rubbish amazing by telling a story about it.

“It doesn't really matter if the lunch is free; what matters is that it feels free.”

The point: Value can be created by changing perception and context, which models built on conservation laws rule out by assumption.

Variants: In one telling he adds that this physics-style view, plus perfect information and trust, explains why your finance department hates marketing. In another he illustrates context with an ambiguous letter shape that reads as H in one word and A in another.

Sources (4)

SCARF, five things economics has no room for

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Rory often recommends the SCARF model from David Rock, a New Zealand neuroscientist based in New York: status, certainty, autonomy, relatedness and fairness. These are five things humans care about deeply that economic models make no room for and that have no metrics. Economics has no conception of fairness, misunderstands status, which comes from relative rather than absolute wealth, and undervalues certainty. All five crop up in travel: certainty in train countdowns, relatedness in loyalty schemes, fairness in refunds and pricing, autonomy in deciding at the last minute. They rarely surface in market research, yet they are nearly always present, and innovation often works by boosting one of them. To show how innate fairness is, he plays the clip of a capuchin monkey paid in cucumber throwing it back when its neighbour gets grapes.

“Five things that humans really prize and care about that economics doesn't make room for at all.”

The point: Status, certainty, autonomy, relatedness and fairness make a checklist for value that price-based models cannot see, and products often win by raising one of them.

Variants: Rory thinks the list is incomplete and would add reciprocation. He warns that any business optimising short-term economic value at the expense of these five should be very careful.

Sources (4)

The cracked washbasin nobody fixes

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Rory's washbasin cracked and leaked if filled above an inch or two. If he could have waved a contactless card over it, paid 200 or 300 pounds and had it replaced instantly, he would have done it the day it broke. Instead it stayed broken for months: three, then six, then nine, depending on the telling. Cost was not the obstacle. The obstacle was coordination: finding a day when he was home and a plumber was free, choosing a new sink, and getting his wife to agree on the taps. It has nothing to do with economics, benefits or costs. When a decision involves multiple conflicting variables, it messes with people's heads.

“It's not because of the cost of replacing it; it's a coordination problem.”

The point: Many failures to act are caused by friction and coordination rather than price, so economic levers miss them and removing hassle can unlock action.

Variants: Rory uses it to argue that the same coordination obstacles block environmental action, and that AI might help because it can weigh many variables in parallel.

Sources (4)

With A-level maths you're practically John von Neumann

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Rory grew up thinking he was bad at maths, because his brother, now an astrophysicist, was in Britain's Maths Olympiad team around 1980, one of four nerds sent to Hungary to solve problems. Only recently did he realise that in marketing and business, and among many powerful people, having A-level maths makes you practically John von Neumann. Almost everyone he has met in 36 years of advertising who thinks differently studied maths, physics, statistics or biology, because scientists see how crashingly innumerate business is. And mathematical problems resemble creative ones: the trick is often to change the question. School maths hands you exactly the data for one provably right answer, but in real business there is no single answer, and rewriting the question is not cheating.

“If you've got A-level maths you're practically John von Neumann.”

The point: Mathematical training is valuable less for numeracy than for the habit of reframing the question, which is the core of creative problem-solving.

Variants: In one telling the punchline turns to statistics: lawyers in the Lucy Letby trial seemed unaware of basic statistical pitfalls. In another, Uber is the example of answering a better question, making waiting less irritating rather than shorter. He backs maths to 18 if it is paired with creative problem-solving.

Sources (4)

Business is a discovery mechanism, not an efficiency mechanism

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Peter Drucker said the purpose of a business is to find and keep a customer, so only marketing and innovation add value. That sounds outrageous today because one school of economics won. The Chicago school assumes people know what they want, so business exists only to supply it cheaply: operational efficiency and cost reduction. Because that fits a spreadsheet, it predominates. The Austrian school holds that value is subjective, so marketing creates value as much as manufacturing; Mises saw no useful distinction between the restaurant cook and the person who sweeps the floor. For Hayek and the Austrians, a business is a discovery mechanism, exploring new adjacent forms of value. Over time, Rory argues, a business run on Austrian lines generates far more value.

“It is a discovery mechanism, it is not an optimisation mechanism.”

The point: Treat a firm or market as an explorer of new value rather than a cost minimiser, because the theory that fits a spreadsheet is not the one that explains how value is created.

Variants: In one telling the argument runs through unconscious motives and status: because needs are unspoken and status currencies shift (an expensive e-bike outranks a car in London but not elsewhere), markets must discover needs by trial, what Deirdre McCloskey calls innovism.

Sources (3)

Christian Aid envelopes, the rational message lost

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Ogilvy tested changes to the door-drop envelopes a charity's volunteers deliver to millions of homes, on around 50,000 envelopes per variant. The behavioural ideas were ones no donor would ever cite as a reason to give: saying the envelope was delivered by hand, to trigger reciprocation; using heavier, higher-quality paper as a costly signal; and putting the flap on the narrow edge so it felt like a pay packet. These raised donations by about 14 per cent, and the better paper sharply increased gifts over 100 pounds. The one rational change, mentioning that Gift Aid adds 25p per pound, which anyone would have approved untested, reduced donations by over 30 per cent.

“It's very difficult to rationally argue that cheaper paper leads to lower donations but actually it does.”

The point: Test the sensible assumptions as well as the odd ones: trivial-seeming cues can beat rational incentives, and the logical message can backfire.

Variants: Some tellings name Christian Aid and the Haiti earthquake, noting donors would credit the cause while for perhaps 20 to 25 per cent the deciding factor was unconscious. One counts six tested changes rather than four, and suggests that putting 50 pounds in cash into a cheap envelope feels incongruous.

Sources (3)

Georgism, land is not capital

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Adam Smith saw three sources of wealth: land, capital and labour. Later economists treated land and capital as the same thing because three factors made the maths too complicated. They are not the same: capital can be created without limit, whereas land is an artificial bottleneck, a rent-seeking device. When you buy a car you pay humans for something that would not exist without their effort; when you pay a landlord, you rent something that would exist anyway. In a tulip boom Rory can switch to gladioli, but if his job is in a city where commutable land is scarce, there is no substitute. Rory is a Georgist, following Henry George: free markets for the fruits of labour, socialism for land.

“The people who get rich out of airport retail are not retailers, they're airports.”

The point: Simplifications made for mathematical convenience can hide the distinction between earned value and location rent, which is where taxes and opportunities should be aimed.

Variants: The examples vary: airport retail, where brands must be present but the airports get rich; buying property as buying the right to tax the younger generation; and Singapore as a property developer with a side gig in governance. He lists fellow Georgists from Milton Friedman and Churchill to Vivienne Westwood, and notes Monopoly was designed to teach the idea.

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Goodhart's law, the train that can't be late

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Charles Goodhart gave his name to the law that any metric which becomes a target loses its value as a metric. Rory's examples: hospitals judged on how fast A&E patients are seen leave people waiting in ambulances in the car park, because the clock starts only when you leave the ambulance. GPs tell you to ring back at 8am, because refusing advance bookings meets the see-within-a-day target automatically. To cut time on trolleys, hospitals bought very expensive trolleys and redefined them as beds. Airlines measure punctuality from push-back, so your plane pushes back and then drives round the airport for 25 minutes. And railway companies cancel trains, because a train that doesn't exist can't be late.

“A train that doesn't exist can't actually be late.”

The point: Once a number is pursued as a target, people game it, so the number improves while the thing it was meant to measure gets worse.

Variants: One telling, via John Kay, applies it to profit: highly revealing while a business pursues some interesting enterprise, degraded as information once management maximises it alone.

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Human behaviour is closer to meteorology than bridge building

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Business, government and economics suffer from physics envy, helped by the spreadsheet: they want a mechanistic world where input and change are proportionate and spending maps to success. Economics borrows the clothes and language of Newtonian physics. But the right comparison for the science of people is not bridge building or track laying but weather forecasting, or climatology. Effects are rarely linear and are sometimes the reverse of what you expect: as with the butterfly flapping its wings, trivial details can transform behaviour, while enormous interventions, like huge mergers, achieve nothing or backfire. That does not put behaviour outside science; it calls for a different kind of science, still rigorous, but not the mechanical version poor scientists imagine.

“Human behaviour is far, far closer to meteorology than it is to bridge building.”

The point: Because human systems are non-linear and feedback-driven, small interventions can have outsized effects and big ones none, so proportional, physics-style planning misleads.

Variants: One telling adds that assuming people decide individually is like assuming there is no fashion in clothing.

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Just because it makes sense doesn't mean it's true

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Rory's friend Chris Graves, who moved from journalism into PR, adopted the mantra: just because it makes sense doesn't mean it's true. Quite often we hear an explanation, think 'yes, that makes sense', and stop asking questions, when a plausible story is exactly what someone uses to mislead you. Humans are not a rational species but a rationalising one: we decide instinctively and then reverse-engineer a rational-sounding explanation, perhaps because, as a social species with language, we evolved reason to justify ourselves to others. Rory calls himself a behavioural science impresario rather than a scientist, enjoying the gadfly's role: maybe, maybe not, maybe the opposite is true.

“Just because it makes sense doesn't mean it's true.”

The point: Plausibility should be where inquiry starts, not where it ends, because we are built to accept the first sensible story and stop looking.

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Marketing is the science of knowing what economists are wrong about

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Business is run by finance people and government by lawyers and economists, and mainstream economics inherently devalues marketing: it assumes value is inherent in the product and that buyers act with perfect information and trust, unaffected by context. So finance treats marketing as a necessary evil to be done as cheaply as possible. Rory's counter is a new definition: marketing is the science of knowing what economists are wrong about, which he concedes is quite a wide field, and also of knowing what conventional market research cannot tell you. His target is not good economists but the narrow version that has become a proxy for understanding behaviour, so that products end up designed for Homo economicus rather than Homo sapiens.

“My new definition of marketing: it's just the science of knowing what economists are wrong about.”

The point: Marketing earns its keep in exactly the places where economic theory and stated preferences fail, so its job is to find and exploit those gaps.

Variants: One version says 'the science of doing what economists are wrong about'. In another he adds that when anything is consistent with economic theory, everyone says it makes sense and moves on.

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One times seven is not seven times one, HS1 versus HS2

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In maths 1 x 7 equals 7 x 1, but in human terms it often does not. High Speed 1 changed East Kent: a commuter from Canterbury or Folkestone saves about an hour a day, roughly 200 hours a year, a fortnight of waking time. That is life-changing: you can move house. Nobody commutes from Manchester to London 200 times a year, so HS2 instead saves 200 people one hour, once: a mild convenience. Transport models, which leave out psychology, count only aggregate time saved and treat the two as identical, though anyone who thinks for a second knows they are completely different. Rory has never not gone to Manchester because it takes too long.

“One times seven doesn't equal seven times one, not in marketing.”

The point: Aggregate figures hide whether a benefit is concentrated enough to change lives or spread too thin to change anything, so look at how gains are distributed.

Variants: One telling has Canterbury to London falling from 90 minutes to about 58. Another opens with really good mathematicians questioning even that one times seven equals seven times one.

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Quality of reasoning is not quality of decision

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Business adopts frameworks that make perfect sense, and because they make sense nobody questions them. We start using quality of reasoning and logic as a proxy for quality of decision. In mathematics or some engineering that proxy works. In anything involving human behaviour the link is far weaker than an intellectual caste wants to believe. Risk-averse bureaucracies judge people on the rigour of the logic behind their actions, not on what happens. Business at least has a feedback mechanism, profit: the best idea in the world that does not sell takes you out of the gene pool, while an utterly stupid idea like Red Bull can succeed if the public picks it up. Nobody gets fired for a logical solution.

“If somehow the public picks up on it, the quality of your reasoning is irrelevant to your ultimate success.”

The point: Judge decisions by outcomes and tests rather than by how well argued they are, since persuasive logic is weak evidence in complex human systems.

Variants: One telling targets an intellectual class Rory calls 'James O'Brien Jesuits', who frame an argument so that sequential reasoning reaches an inescapable conclusion.

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The Austrians who refused to use maths

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Ludwig von Mises and the Austrian School are disdained by other economists because, on principle, they refuse to use mathematics; you cannot get a job teaching Austrian economics, Rory jokes, because they do not do maths. Their argument is that human preference is ordinal, not cardinal: you prefer A to B, but saying you like one thing 1.1 times more than another is nonsense. Since economics is all about preference, it should use thought experiments instead. Their only definition of cost is opportunity cost: buying this costs only what it stops you buying. Business metrics invert this: costs are immediate and quantifiable, while opportunity costs are nebulous, deferred and require judgement.

“Their only definition of cost is opportunity cost.”

The point: Preferences can be ranked but not measured, so forcing them into numbers misrepresents value and lets visible costs crowd out larger, unseen opportunity costs.

Variants: One telling pairs it with Hayek's Nobel speech, which warned that economists imitating the physical sciences treat the measurable as the important. Rory offers the Austrians as a respectable tradition for marketers who want to question numerology in business.

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Use science only where things cannot be otherwise

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Aristotle said that where things cannot be other than they are, you use science; where they can be otherwise, as in business, politics or sociology, you need a different set of skills. Gravity will be the same tomorrow, so rocketry suits the scientific method. Human behaviour is not stable in the same way: in 2001 there were no smartphones, and that changed everything. Roger L. Martin argues that 'evidence-based' is a ridiculous barrier because there is no evidence about the future; Covid was novel, so past coronaviruses might not apply. Adam Smith caveated his own ideas in this spirit; the trouble began when economics tried to turn itself into a branch of physics.

“There's no evidence about the future.”

The point: Demanding scientific proof is misplaced in domains where the future can differ from the past; those call for judgement, experiment and different skills.

Variants: One telling turns it into a critique of how economics gains political influence: by cutting the variables to a handful, building a model and declaring the optimum the right answer, so that we teach people to win arguments rather than solve problems.

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A quite good statistician is catastrophically dangerous

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Some skills scale smoothly and some do not. A pretty good plumber is still quite useful compared with a brilliant one, but a quite good statistician is catastrophically dangerous relative to a really good one. Good statisticians are cautious and much more hesitant to generalise or extrapolate; the dangerous people are bad mathematicians, who think the numbers are the truth. Rory, who did A-level and S-level maths, says maths taught him two things he uses daily: treat statistics with extreme caution (is the sample representative, is it self-fulfilling?), and treat maths as creative problem-solving. He cites the Lucy Letby trial as an interesting example.

“A pretty good plumber is still quite useful. A quite good statistician is catastrophically dangerous.”

The point: In statistics, partial expertise breeds overconfident conclusions, so trust the hesitant expert over the confident amateur.

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A red button for impulse saving

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Rory's answer to the savings crisis: marketing and retail have built endless mechanisms for impulse buying, from clothes shops to shoe shops, but nobody has created an opportunity for impulse saving. Suppose you had a large red button on the wall at home, and every time you pressed it, fifty pounds went into your pension. You would save a great deal more. The point is that the interface through which people make decisions changes the very nature of the decisions they make, so redesigning the interface can achieve more than any appeal to rational self-interest.

“The interface fundamentally determines the behaviour.”

The point: Changing the interface through which a decision is made can change behaviour more than incentives or appeals to reason.

Variants: In one telling the button deposits fifty dollars, and Rory adds that as an advertising man he hopes nobody uses it, since saving is just consumerism needlessly postponed.

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Amazon, eight people buying one thing

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Whenever you add or multiply numbers you lose information: one times seven equals seven times one only in maths. Amazon is a very good way for eight people to buy one thing and a poor way for one person to buy eight things, and much retailing is the latter. In aggregate sales figures the two look identical. Amazon Prime exists because seven people buying one thing a month don't mind a delivery charge, but one person buying seven things won't buy the fifth, sixth and seventh after paying 12 pounds in delivery. Rory suggests the congestion charge should do the opposite of Prime: make the first three journeys free, then charge more.

“Amazon is a very good way for eight people to buy one thing.”

The point: Aggregates hide how behaviour and costs are distributed across individuals, which is where decisions are actually made.

Variants: In one telling he uses it to suggest Amazon is overvalued against Walmart, which is also more efficient partly because shoppers carry goods home at their own cost.

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Capitalism solves the same problem 18 different ways

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Economists like free markets because they are notionally efficient, driving down costs. Rory likes them because they are inventive. Competition looks deeply wasteful over a short horizon, but what is magical about markets is that they solve problems through trial and error, and solve the same problem in 18 different ways for different people. The most absurd example is luxury watches: a basic 18-pound Casio F-91W is essentially a flawless timekeeper, yet there are watches for people who want to pretend to be pilots or divers, dress watches and gold watches. Because firms position against each other, they explore a far wider solution space than a physics-minded search for one solution that works for the average.

“The really good thing about capitalism is it solves the same problem in 18 different ways.”

The point: Competition's real value is the diversity of solutions it generates, not cost reduction, so judging markets on efficiency misses the point.

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Coffee shops close early because they get the mop out

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British coffee and tea shops close stupidly early, around four, though Britons naturally take tea at five. Their sales data surely shows takings tailing off in the last half hour, so 95 per cent of people would conclude there is no demand later. Rory suspects the cause runs the other way. People dislike drinking in a place that is about to close, and staff, wanting to clean up and go home, start 'getting the mop out', which deters newcomers and nudges sitters to leave. Put one chair upside down on a table by the window and nobody enters: more effective than a sign saying 'F off', which might attract the curious. Having the what without the why leads to confident, wrong inferences: perhaps you should stay open later.

“It's very, very dangerous to have the what without the why.”

The point: Behavioural data can record an effect your own behaviour created and mislead you into reading it as customer demand, so ask why before acting on what.

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Double the price and paint it pink

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As a non-executive director, Rory has sat in board meetings where everyone agrees a product isn't selling and the answer is to cut the price. He wants to say: why don't you double the price and paint it pink? Or, have you thought of making it purple? He knows it would be embarrassing and inappropriate, because the board proceeds on the pretence that business is deterministic rather than probabilistic. Psychological solutions carry a built-in unpopularity: expanding the solution space creates ambiguity. Institutional decision-makers love economics because its narrowness yields an unambiguous recommendation, exactly what you want if you wish to keep your job and look rational.

“You want to say why don't you double the price and paint it pink.”

The point: Organisations default to the narrow, defensible lever, such as a price cut, because lateral options add ambiguity and personal risk, not because they work worse.

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Economics short-circuits the ladder of sciences

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Physics sits on maths, chemistry on physics, biology on chemistry, psychology on biology, and economics should sit on psychology. Instead, Rory says, it short-circuits the chain and pretends to sit next to maths, modelling a highly complex system with the certainty of physics and creating a false sense of certainty. He blames school maths: two buses leave town at a constant 47 km/h, when will they be 16 km apart? There is one right answer. Real questions are more like: some buses leave around now, when should I pick my friend up? Economists assume constant-speed buses. Behavioural science will never produce a law like thermodynamics; its value is expanding the solution space and suggesting what to test.

“I don't see my job as ever coming up with something equivalent to the second law of thermodynamics.”

The point: Economics should be built on psychology rather than borrowing the neatness of maths, and the study of behaviour is a discovery process, not a source of laws.

Variants: In one telling he calls economics a dishonest profession for this reason.

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Farmers' markets make no economic sense

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A farmers' market is, in economic terms, the stupidest conception in the world. You might get rained on, you pay six times to buy nine things, and although you cut out the middleman and buy direct from the producer, you pay a premium for it. Tesco Extra, with everything under one roof, self-checkout and low prices, is totally rational. Rory offers two reasons people go anyway. One is a delusion: six purchases of nine pounds do not register the way one 54-pound supermarket bill does. The other is genuine: we enjoy the theatre, attention and human exchange that we evolved to crave, and that technology has stripped out of modern shopping.

“In no economic frame of reference does the farmers' market make any sense at all.”

The point: People will pay a premium for human contact and theatre, and for spending broken into painless chunks, which efficiency-driven models strip out.

Variants: In one telling he cites a Chinese proverb: if you find it difficult to smile, do not open a shop.

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Medicine tries to minimise the placebo

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The most powerful single thing in medicine, with the possible exception of antibiotics, may be the placebo effect, yet most scientists spend their time trying to minimise it rather than use it. Medicine subtracts the placebo effect from a treatment's efficacy and calls what remains the science, when you would think it should maximise it. Making someone better through psychological means is seen as cheating: 'No, you have to poison them. That's how medicine works.' Rory's explanation is Harry Truman's line that anything is possible so long as you don't care who gets the credit: a drugs company cannot claim credit for the placebo. Drug times placebo beats either alone.

“Anything is possible just so long as you don't care who gets the credit.”

The point: Disciplines discard psychological or combined solutions because they cannot claim the credit, even when the combination works best.

Variants: During Covid Rory joked that vaccines should also be tested against nothing at all, in case self-suggestion alone protected people.

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One-way indicators, bad at chess does not mean stupid

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Rory cites Nassim Taleb on IQ: the correlation with life outcomes exists mathematically but sits almost entirely at the left-hand side. IQ tests were designed to spot people who would struggle in mainstream schooling, so below about 75 you are unlikely to be in well-paid work, but above 95 the link with wealth breaks down. Society uses such one-way indicators as if they were two-way. Someone very good at chess is probably intelligent, but someone bad at chess is not necessarily stupid; Nobel laureates can be hopeless at it. Demanding a 2:1 degree, when David Ogilvy was a university dropout, is performative objectivity that rejects many able people.

“We've used these one-way indicators as if they're two-way indicators.”

The point: A signal that confirms ability when present does not prove its absence when missing, so screening on it rejects capable people.

Variants: One telling adds a distant great-aunt, an anthropologist at Princeton who worked with the man who devised the SAT. She found some groups excelled at memorising poetry, a skill the tests never measured because testers measured what academics were good at.

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Physics envy

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Rory says economists and engineers share a slightly unfortunate disease he calls physics envy: a desperation to find neat mathematical models for everything, from climate to human behaviour, partly because publishing neat models is how you get promoted. Institutions catch it worse than individuals, because every committee must justify its actions in rational terms, with reasons rather than feelings, which pushes the organisation towards the obvious, direct, first-order fix. Most management consultants come from engineering-type backgrounds, where raising one input reliably raises an output in roughly fixed proportion. That mental model works for machinery but not for people.

“They both suffer from a slightly unfortunate disease which you could call physics envy.”

The point: The demand for neat, defensible, proportional models pushes organisations to treat people like machines, and so to misread how they respond.

Variants: One telling adds that trained economists playing certain games aim for a Nash equilibrium while everyone else is motivated by fairness, so economists behave more selfishly than anybody else.

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Rationality alone is golf with one club

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Rationality has its uses, but every neat model of the world leaves out things that may matter more than what it includes, and bakes in narrow assumptions about how people decide. Define a problem in economic terms and the solution boils down to fining people or bribing them. Incentives do work, but they are one golf club among many. Rule nine of Rory's Rules of Alchemy compares solving every problem with rationality to playing a round of golf with a single club: logic is a fine tool for some shots, but you need a full bag. Reductionist logic works so well in physics that we wrongly assume it applies everywhere, including the messier world of human behaviour.

“Solving problems using only rationality is like playing golf using only one club.”

The point: How you frame a problem fixes the size of the solution set, and a purely economic framing leaves only one or two tools in the bag.

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Relational versus transactional capitalism

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Rory distinguishes two kinds of capitalism. Transactional capitalism maximises the value of each exchange regardless of the relationship, and the money captures the whole value. Relational capitalism maximises the relationship over time, and much of it is barter and unspoken exchange that cannot be quantified. Economics does not understand the distinction, but humans are always asking whether an exchange is transactional or relational, and react badly when the norms are violated. Farmers' markets suggest we crave intimacy and human contact at some points in the week: Adam Smith's propensity to truck and barter is not the same as beeping at a machine that announces an 'unidentified item in the bagging area'.

“People don't mind transactional capitalism at a McDonald's, they really don't want it at a farmers' market.”

The point: Match the kind of exchange to the setting: applying transactional logic where people expect a relationship destroys value.

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Saving is just consumerism needlessly postponed

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Rory regularly undercuts economic orthodoxy's reverence for thrift with a mischievous line: saving is just consumerism needlessly postponed. Having proposed a red button that drops fifty dollars into your pension with each press, he adds that, as an advertising man, he does not actually want anyone to use it. Elsewhere he suspects economists fetishise saving because they are stingy by temperament: why is saving better than spending? Pushing the joke further, he says that having a lot of wealth means you either don't need the money or lack the imagination to spend it, so taxing wealth seems healthier than taxing income, and notes that Adam Smith favoured high inheritance taxes and taxes on ground rent.

“I tend to regard saving as just consumerism needlessly postponed.”

The point: Preferences that orthodoxy treats as plain virtue, like saving, may reflect the temperament of the people who built the theory rather than the evidence.

Variants: Told once as a disclaimer to the impulse-saving button, once as a dig at economists' temperament and an argument for taxing wealth over income.

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Swedish sunbed addicts lived longer

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Rory stresses he is not a doctor and sunburn is very bad. But a dermatologist friend in Edinburgh told him that studies of sunbathing were led by dermatologists who measured only skin cancer. Sun exposure also seems to produce a chemical under the skin that helps cardiovascular health, and in a Swedish longevity study, sunbed addicts had more skin cancer but, unexpectedly, the longest life expectancy. Because only a narrow area of interest was measured, the overall conclusion was wrong. Evolution made sunbathing enjoyable, so maybe it is not all bad. We often measure the narrow effect of a behaviour but not its broader effect.

“We measure the narrow effect of a behaviour but not the broader effect.”

The point: Specialists optimise for the risk they measure, and a narrow metric can invert the right overall conclusion.

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The Benjamin Franklin effect

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Some ways of building trust are counterintuitive. Get people to do you a favour and, strangely, they like you more, perhaps through a form of consistency bias. Benjamin Franklin, needing help from a political opponent, deliberately asked to borrow a rare book the man owned, then returned it with a kind note of thanks: the opposite of opening with reciprocation. Rory once suggested an airline client apply it by simply asking passengers: it would really help us out if you went on the 12 noon flight rather than the 10.30. Those who obliged would like the airline more for having helped. He never got any traction, because it seemed so ridiculous.

“If you actually get people to do a favour for you, strangely they like you more.”

The point: Asking for a favour can build affection and trust faster than offering one, because being in an exchange relationship matters more than which way the first favour flows.

Variants: The airline suggestion came up alongside Laurie Santos's work on gratitude: a thank-you letter feels like a cost to the writer, yet both sides end up better off.

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The favour bank, most value is non-transactional

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Probably the majority of economic value, Rory argues, involves no monetary transaction and so goes unmeasured. It is disproportionately true at the bottom and the top of society. At the bottom, much is created by barter because nobody has money: I look after your children on Wednesday, you look after mine on Friday, and none of it appears in GDP. At the top, people trade favours where attaching a price would be socially unacceptable: if he introduces someone to a person they have always wanted to meet, he creates value but cannot say 'that'll be five grand', except perhaps in arms dealing. A very senior investment banker told him that very little of what he does at his level is transactional; it is a favour bank.

“At the top you're often trading favours where it's socially unacceptable to attach a price to it.”

The point: Much value is created through reciprocal, unpriced exchange, so money-only models and statistics miss it and policies built on them can destroy it.

Variants: In one telling Rory frames it as a dropped belief: twenty years ago he thought Chicago-school economics had real predictive value, and he no longer does.

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The lumen, the only unit that cares about humans

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Scientific units such as grams, metres and seconds are deliberately objective. The one exception is the lumen, which counts only light in the visible spectrum, weighted towards the part that helps you read or thread a needle. Without it, a manufacturer could claim a spectacularly efficient light bulb whose output was all ultraviolet or infrared. Procurement would buy them in huge quantities, and everybody would be bumping into the furniture after dark. Rory uses it to argue that measures should be weighted by how humans experience them. Weather forecasting has made the same move with 'feels like' temperatures: 85 degrees can be pleasant or intolerable depending on humidity and breeze.

“Procurement would buy them in huge quantities, and everybody would be bumping into the furniture after dark.”

The point: Objective measures should be weighted to human perception, or efficiency gains can be technically real and practically useless.

Variants: In one telling he adds that he is happy at 100 degrees in dry Scottsdale and immobile in humid London.

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The McNamara fallacy, the Vietnam body count

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Government and business are obsessed with objective measures that fit on a spreadsheet: time, speed, SI units. Scientists and engineers reach problems first, define them in those units and solve for them, so psychologists are never allowed near. Rory calls this the McNamara fallacy, or quantitative bias. McNamara ran the Vietnam War on the body count. In the First World War that might have been an acceptable measure, but in a guerrilla war every killing brings in perhaps one and a half new volunteers, and an unjust one, which the count incentivises, brings in about four. Eventually the war had to become a discussion of hearts and minds. Likewise we measure NHS waiting times rather than NHS waiting irritation, because time is easy to measure.

“We're measuring NHS waiting times rather than NHS waiting irritation.”

The point: Optimising for whatever is easy to measure can make the real goal worse, so ask what the metric leaves out before pursuing it.

Variants: The numbers vary: one telling says every unjust killing may create three volunteers.

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To optimise the whole, sub-optimise the parts

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Rory often quotes W. Edwards Deming: to optimise the whole, you have to sub-optimise the parts. Most businesses optimise every component, each person optimising their job description on the assumption that this improves the whole. It does not, and at the level of the whole it may be not just wasted but destructive effort. A woman who left Google to study why big companies stop innovating concluded the answer was 'slack': everyone is optimised for the part, not the whole, and without slack nothing lucky happens. That, Rory jokes, is why we have a central nervous system; otherwise we'd be an enormous pair of testicles. Behavioural science, he says, is a gateway drug to complexity theory.

“To optimise the whole, you have to sub-optimise the parts.”

The point: Local optimisation by each function strips out the slack a system needs, so the efficiency of the parts can damage the whole.

Variants: One telling pairs it with Blair Enns's one-word answer to why big firms stop innovating, 'inefficiency', and with Rory's preference for hiring people for their talent and finding them a job afterwards.

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We have the brains of lawyers, not scientists

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Drawing on Dan Sperber's argumentative hypothesis, Rory suggests human reason did not evolve to help us make decisions but to defend and justify them. We have not inherited the brains of scientists but of lawyers: it is not Stephen Hawking in your prefrontal cortex, it is a top barrister, George Carman QC. In negotiation training he was taught that if you have one good reason to say no, you give it and shut up; with a conclusive alibi you stop, because any weaker supplementary reason will be picked apart. So once we have one plausible explanation for something, we defend it and stop looking for others. Just because something is reasonable does not make it right.

“We've evolved a faculty of reason to argue, not to reason.”

The point: Reasoning is built to win a case with one good reason, not to find all the causes, so a convincing justification is weak evidence of a good decision.

Variants: The good news for the illogical, he adds, is that just because something is unreasonable does not make it wrong.

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We need SI units for regret

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Most businesses are in the grip of quantification bias: they attend to anything expressible in numbers, yet the human emotions that really drive behaviour have no units. Rory argues we need human-centred units alongside the SI units and money: units of trustworthiness, irritation, annoyance, fairness, uncertainty and regret. He once joked about a unit of regret called the Best, after Pete Best, who narrowly missed being in the Beatles: quite a large unit. Narrowly missing a train might be a nano-Best or a femto-Best. With such units, product design, marketing and tax systems would make progress; instead we use physical units and money as an appalling proxy for quality of life.

“If we had an SI unit of regret, we'd start to make progress.”

The point: What gets measured gets optimised, so the absence of units for human experience biases decisions towards the physically measurable.

Variants: One telling poses it as a thought experiment: how differently would we do business if we could quantify the emotions our actions generate, rather than using delayed purchase behaviour as a proxy for everything?

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You don't need a seven-kilowatt charger

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Rory wanted a home charging point for an electric car. An electrician came round and said the cable run from his garden was too long to deliver 7 kilowatts, so Rory gave up on the whole idea. Then he rang his brother, an astrophysicist, who said he did not need seven: throttle it down to four, which covers 90 to 95 per cent of occasions, and given how little Rory drives there was hardly any circumstance in which that would be a problem. If you are out very late and must drive somewhere early the next morning, use public charging. Policy driven by engineers obsessed with the most efficient solution kills good-enough ones.

The point: Specifications set for the extreme case deter adoption, when a good-enough solution would serve almost every real need.

Variants: One telling says three kilowatts would be fine.

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A detective who may only use evidence

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Hume said reason is and should only be the slave of the passions, and David Bessis argues in Mathematica that mathematicians use maths to sense-check their dreaming. In business, a decision's defensibility matters more to your career than its outcome. Banning intuition is like telling a detective to use only evidential information: no gossip, anecdote, hunch or sense of smell. Yet "did anyone notice anything unusual last night?" yields "a weird man in a white van", which proves nothing but tells you where to look. Use only data stepping-stones and you reach five of 25 places, all occupied by competitors.

“You can only get to about five of the possible 25 places where a solution might be found.”

The point: Intuition directs attention to where evidence can be found; banning it shrinks the solution space.

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A good cop is not a DNA fundamentalist

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All models are wrong, some are useful, as George Box said. The problem in business and government is that everyone uses the same model, which is administratively convenient but kills imagination, intuition and creativity: success means conforming to the model. A good cop uses DNA, fingerprints, door-to-door inquiries and informants. DNA is incredibly useful, but you would never become a DNA fundamentalist. Yet we give lawyers, economists and finance a monopoly on sanctioning activity, which is far too narrow for modern complexity.

“You're not allowed as a cop to become like a DNA fundamentalist.”

The point: Use many complementary methods rather than one dominant model.

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A worm is more complex than the sun

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At the Santa Fe Institute, Rory heard Murray Gell-Mann, the Nobel-winning physicist, say that the mathematical notation of physics is wholly inadequate for complex things like societies, economies, climates and languages. His illustration: a single-celled worm is vastly more complex than the sun. The sun is mathematically simple to describe; a small worm, full of feedback and correction mechanisms, is not. Using physics to describe psychology or mass behaviour is therefore dangerous.

“A single-celled worm is vastly more complex than the sun.”

The point: Anything with feedback loops defeats the maths that works for physical phenomena.

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Adam Smith's chess pieces with wills of their own

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Rory says the political right was wrong to become infected by neoliberal economics which, like most economics apart from the Austrians, he calls nonsense: an attempt to predict humans as though they were inert atoms. Adam Smith warned against exactly this. The man of system imagines arranging people like chess pieces, but each piece has its own will and principles of motion. The right rightly read that as a warning against central planning, but it is equally a warning to economics.

“It would be as if you were trying to organise chess pieces when each chess piece had its own individual will.”

The point: Models that treat people as passive pieces fail because people respond and adapt.

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Agatha Christie had three servants but no car

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William Baumol's cost disease explains much of the world since about 1920: manufactured goods, whose production time can be compressed, have become far cheaper, while time-dependent services have grown ever more expensive. That is why a television is almost an impulse buy while people agonise over childcare. In 1920 it was the other way round: Agatha Christie had three servants in her early life but could not have dreamed of affording a car.

“A television is almost an impulse buy, but you agonise about getting childcare.”

The point: Productivity gains in goods but not in services invert what is cheap and what is expensive.

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Airplane!, that's exactly what they'll be expecting

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In the film Airplane!, air traffic control must talk a passenger down, but the man in charge is a military type. Asked 'shouldn't we turn on the runway lights?', he replies 'No, that's exactly what they'll be expecting us to do.' Behind the joke, Rory says, is a serious point: air traffic control should be logical, but military strategy cannot be, because a predictable opponent is a sucker. There may be an evolutionary reason humans are not perfectly consistent. Marketing, R&D and HR, like strategy, should stop pretending to be as logical as finance. He closes the talk on the same line.

“No, that's exactly what they'll be expecting us to do.”

The point: In competitive fields, being logical makes you predictable, and predictability is a weakness.

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Averaging makes noise invisible but leaves bias showing

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Responding to Kahneman's data that two randomly chosen judges would differ by almost four years on the same case, against an average sentence of seven years, Rory observed that averaging hides noise. Once you start looking at aggregate information, noise becomes completely invisible, while bias does not. That is why it is so easy to overlook.

“Once you start looking at aggregate information, noise becomes completely invisible. Bias doesn't.”

The point: Aggregate statistics conceal inconsistency between individual decisions, so organisations rarely notice how noisy they are.

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Byron Sharp's own data proves marketing is a complex system

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The Ehrenberg-Bass findings Byron Sharp promotes show that the number one brand has a disproportionate advantage over number two, and the Bass diffusion curve shows adoption follows a sigmoid, not a straight line. Rory argues Sharp missed the fundamental lesson: the Dirichlet distribution of brand success and the sigmoid pattern of adoption are themselves proof that marketing is a complex system. So optimising the whole by optimising the parts with spreadsheet maths will not work: it is the wrong maths. Marketers need network and complexity science.

“You've proved this is a complex system. You're using the wrong maths, so stop it.”

The point: Non-linear patterns in brand data show that linear, component-by-component optimisation is the wrong tool.

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Call centres chasing fewer rings

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For years call centres competed on how many rings it took to answer, assuming three rings was twice as good as six, and paid staff accordingly. In fact customers thought two rings was pretty good, anything up to ten was fine, and only beyond ten did they get angry. There was no gain at all in spending thousands of pounds getting the average down from eight rings to three. Numbers tempt the statistically unwary into assuming linear relationships where human psychology has none.

“There was no gain whatsoever in getting the average down from eight rings to three.”

The point: Metrics invite an assumption of linearity, but human satisfaction usually runs on thresholds.

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Capitalism is bonkers, and that is its glory

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Most effort in business goes into pretending it is deterministic and boring, when really it is probabilistic and exciting. The great thing about capitalism, Rory tells economists, is that it produces whitewall tyres, fins on cars, Red Bull and frozen parathas; he plugs a frozen paratha brand that, fried from frozen in three minutes, rivals a Michelin-style Indian restaurant. The Soviet Union was wrong-footed by the popularity of denim. What is magnificent is that it is bonkers, yet accountants pretend it conforms to narrow neoliberal theory.

“Business is probabilistic and exciting.”

The point: Markets thrive on unpredictable, illogical preferences that no planner or model would anticipate.

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Chess is not played rationally

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People think chess is the high point of rationality, but Rory points out that calculating the best move probabilistically would take the world's greatest supercomputer longer than the age of the universe. Good chess computers, like good players, use pattern recognition built from thousands of hours of play. Chess is mostly about knowing how to ignore huge amounts of information. To play it truly rationally you would also need to know the workings of your opponent's brain, which is impossible.

“What chess is about is partly knowing how to ignore huge amounts of information.”

The point: Even the supposed model of rational thought runs on pattern recognition and selective ignorance, not calculation.

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Choosing 3.1 over 2.8 makes you immune to criticism

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Rory says business and especially civil service decision-makers love mathematical models because letting the model decide offloads responsibility for their judgement. It is a clever arse-covering exercise: my decision cannot be faulted because I chose the option that scored 3.1 rather than 2.8. Creative people rightly submit their work to rational appraisal, but rational, number-based decisions are never exposed to imaginative people. They go unpoliced. Anthony Tasgal calls the people who seize power through spreadsheets the arithmocracy.

“It wasn't me. I chose the one which came out at 3.1, whereas the alternative only came out at 2.8.”

The point: Models are valued as much for deflecting blame as for accuracy, which shields bad rational decisions from challenge.

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Clarkson, slower, worse, dearer, but I prefer it

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Rory recommends watching Top Gear. Whatever you think of Jeremy Clarkson, almost every review makes a valuable point for marketers: the car's numbers say one thing and his emotional reaction says another. 'This car is slower, worse at accelerating, worse at cornering and more expensive than that car, but I prefer it', or the reverse: cheaper and faster, but he cannot stand it. Much of what humans value, like handling or a beautiful jug, has no metric.

“There isn't a metric for a beautiful jug.”

The point: Preference often diverges from every measurable specification, so specs alone cannot predict what people choose.

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Companies have outsourced their work to customers

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One reason for low economic growth, Rory suspects, is that companies have outsourced work to their customers. Getting a partial loan for his car took a day of uploading documents, photographing his driving licence and proving his identity. Buying a car is now two days of work; moving house might need a week or two of holiday. Calibrating everything for very low trust creates heavy bureaucracy, with the curse that it falls on you: prove you are not Pablo Escobar to open a bank account. It may even explain lower labour mobility.

“Everything is calibrated for a very low level of trust, which leads to a very high level of bureaucracy.”

The point: Shifting admin onto customers is a hidden tax that may suppress economic activity.

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Das Schiphol problem, efficiency beyond the point of use

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Echoing 'Das Adam Smith problem', Rory proposes 'Das Schiphol problem'. Smith seemed to assume scale efficiencies would stop once they stopped benefiting consumers; instead they've become a religion. Schiphol was already too big, then expanded as one giant terminal instead of two or three walkable ones; leave from gate 107D for London City and you're practically in Belgium. Tesco Extra is the Schiphol of supermarkets: efficient, but a royal pain if you want a sandwich. Things stop being rational when everybody does them, and consumers fall out of love with efficiency.

“Something stops being rational when everybody does it.”

The point: Scale efficiency pursued past the customer's interest makes the consumer pay for the business's savings.

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Data are things given, not things sought

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Data obsessives believe that once you have enough data you know everything, but you can have huge amounts and still be ignorant of the questions you need answered, like why people are doing this. A Google data analyst whose Twitter handle is 'quaesita' makes the classicist's point that data are things you are given, while quaesita are things you seek. Assuming the data you happen to be given will answer your questions is not safe. Rory criticises science and business alike for modelling from available data rather than first asking what they need to know.

“Data are things you are given; quaesita are things that you seek.”

The point: Start from the questions you need answered, not from whatever data happens to exist.

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Designing for a species that has never existed in the wild

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The problem with being hyper-rational like economists, and treating customers as simple utility maximisers rather than the product of millions of years of evolved psychology, is that customers won't like you very much. Treat your customers as homo economicus and you are designing your business for a species of animal that has never existed in the wild, and which we would probably beat up if we ever met one.

“You're designing your business for a species of animal that has never existed in the wild, and we'd probably beat them up if we ever met them.”

The point: Businesses built for perfectly rational customers alienate the real, evolved humans they serve.

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Driven mad by the remorselessness of your own logic

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Rory likes Jordan Peterson in small doses but thinks him overcommitted to a dogma, recalling a phrase used of Enoch Powell: driven mad by the remorselessness of his own logic. On the left he calls it 'James O'Brien Jesuitism': so obsessed with the rightness of your cause that you build an argument from a dubious assumption and conclude, QED, your position is incontestable. The argument seems wonderfully convincing; what's less visible is that the starting axiom isn't that great. Nobody should see the world solely in black and white, left or right.

“You're driven mad by the remorselessness of your own logic.”

The point: Rigorous logic from a weak premise produces confident error; check the axiom, not just the chain.

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Driverless cars but manned spaceflight, the wrong way round

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Taking the comedian's Darwinian eye for absurdity, Rory finds Elon Musk's greatest one: he favours driverless cars but manned space travel. Surely cars, which benefit from human drivers, should be driven by people, and spacecraft, where humans contribute almost nothing, should be autonomous? Rory's brother, an astrophysicist, says astronomers regard manned spaceflight as a terrible way to learn about the universe per dollar; one colleague described it as spending $300 million to find out how mice masturbate in zero gravity.

“Shouldn't cars be driven by people and spacecraft be autonomous?”

The point: Looking at small absurdities with a comedian's eye can expose inverted priorities.

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Economists oppose monopolies except their own

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Rory recounts Richard Thaler's remark that economists oppose monopolies yet are comfortable with the one they enjoy over business and government decision-making. Economics won that monopoly by positing an oversimplified model: rational individuals maximising utility, perfect information, no regret or mistrust, no habit or contagion. Those assumptions allow elegant equations that look scientific, what Hayek called scientism. Every business and government has a chief economist, Rory observes, but none has a chief anthropologist or chief game theorist.

“No business I know of has a chief anthropologist. No business I know of has a chief game theorist.”

The point: Economics dominates decisions not because it is right about people but because its simplifications look scientific.

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Economists' advice always boils down to bribing people

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As a copywriter of 30 years, Rory finds economics creatively limiting. He quotes a former director general of CERN who became an expert on British energy policy and wanted to change how people consumed energy. His despairing observation at the Santa Fe Institute: when he asked economists for advice, it always boiled down to bribing people. Changing reality or price, Rory says, is often the expensive alternative to the psychological solution, and pulls only one of perhaps fifteen levers.

“When I ask economists for advice, it always boils down to bribing people.”

The point: Price incentives are one lever among many, and often the costliest.

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Einstein's sign, not everything that counts can be counted

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Einstein supposedly had a sign above his desk at Princeton saying that not everything that counts can be counted, and not everything that can be counted counts. Rory jokes that a dissenting group claim the sign actually said 'you don't have to be mad to work here but it helps'. His serious point: are we obsessing about some things simply because they present themselves easily in numerical form, when to the human being they are not very important at all?

“Not everything that counts can be counted, and not everything that can be counted counts.”

The point: Businesses over-weight whatever is easy to measure, regardless of whether people care about it.

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Eurostar's Kent statistic and the Lucy Letby problem

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Eurostar justified dropping Kent stops by saying only 4 to 5 per cent of passengers boarded or alighted there. Rory points out that only two trains a day stopped at Ashford and a minority at Ebbsfleet, so on trains where you could get off in Kent the share was more like 15 to 20 per cent, with millions living in Kent, Essex, Sussex and Surrey. With lots of data you can cherry-pick the confirming bits and ignore the rest, which he links to the Lucy Letby case.

“When you give people a lot of data, you can cherry-pick the data to provide a lot of data which is confirmatory and ignore the stuff that is contradictory.”

The point: Statistics can be framed to justify a decision already made, so check the denominator.

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Every spreadsheet is an act of pretence

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Most business is probabilistic, but everybody wants to pretend it is deterministic. Every spreadsheet is in some ways an act of pretence: past information treated as if it had wonderful predictive value, like Laplace's demon, when weird things happen out of nowhere all the time. People are promoted for solving reductionist problems, and in a company you capture few of the gains from a bold decision but all of the blame if it fails, so people with long-shot ideas leave and become entrepreneurs.

“Every spreadsheet is in some ways an act of pretence.”

The point: Deterministic tools and asymmetric blame push organisations away from the bold, probabilistic bets that create growth.

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Finance fetishises cost-saving; service jobs are the future

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Finance people love cost-cutting and automation because the savings look like they drop straight to the bottom line, but nobody holds them accountable for the customers who quietly leave because they wanted personal service. Rory argues that as more boring work is automated, front-line service jobs become more important to the economy, because human problem-solving and sheer charm are what people end up paying for. As AI handles more interactions, the rarer human ones become more precious and more decisive.

“Finance people fetishise cost-saving and automation.”

The point: Internal metrics are misaligned with what customers value, so automation savings can hide larger losses of goodwill.

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Free markets, money as a truth drug

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Asked what belief he has dropped, Rory says that once you understand evolutionary psychology, you realise everybody has two reasons for what they do: a good reason and the real reason. The reasons we give are inaccurate, not because we lie but because it may be in our evolutionary interest not to know. So the only way to find out what people really want is experimentation. Free markets, for all their faults, are an extraordinarily well-funded social science experiment in which money acts as a truth drug: make people pay, not necessarily in money.

“Everybody has two reasons for doing what they do: a good reason and the real reason.”

The point: Since people cannot report their true motives, only costly choices reveal what they actually value.

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GDP growth added nothing to happiness

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Rory cites a statistic that 15 years of UK GDP growth added practically nothing to reported happiness, and that the first result of the 2008 credit crunch in the United States was actually a rise in happiness. His explanation, drawing on Robert Frank's The Darwin Economy, is that a huge share of recorded economic activity is rivalrous competition between individuals, which may contribute little to overall wellbeing.

“A huge amount of economic activity as recorded by GDP figures is effectively individual rivalrous competition between people.”

The point: Measured economic output and human wellbeing can come apart, because much spending is positional rivalry.

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Half the time you do in order to know

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People in business do not want a good decision; they want a defensible one they can explain so they will not get into trouble whatever happens. So they lean on sequential logic, existing data and research. But in real life you sometimes know first and do second, and half the time you do in order to know, which that approach forbids. People take radical uncertainty, as John Kay and Mervyn King call it, turn the mess into a puzzle, solve the puzzle and are praised for a single right answer to an artificial small-world problem.

“Sometimes you know first and do second, but half the time you do in order to know.”

The point: Insisting on knowing before acting confines you to existing data and artificial problems.

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How people think they think

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Asked to define behavioural science, Rory says it is understanding the difference between how people think they think and how they really feel. We hold all sorts of post-rationalised beliefs about why we do things, but behaviour is driven by parts of the brain opaque to introspection. Behavioural science studies that invisible hardware in the brain for fun and profit.

“It's understanding the difference between how people think they think and how they really feel.”

The point: Behaviour is driven by processes people cannot report, so self-explanation is a poor guide.

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I have been a customer of yours for X years

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Economists treat capitalism as a series of anonymous one-shot utility-maximising exchanges, but Rory says its instinctive human practice is relational. When you repeatedly deal with the same party, you expect more trust and punish disappointment more viciously. That is why most letters complaining to utilities begin: I have been a customer of yours for X years. Imagine my horror when. People do not wipe the slate clean every year.

“Most letters complaining to utilities start with a sentence: I have been a customer of yours for X years.”

The point: Long relationships raise expectations of reciprocity, so treating loyal customers transactionally is costly.

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If everyone bought cars by formula, cars would become terrible

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Imagine a market where everyone bought cars by one formula: fuel economy divided by acceleration, times number of seats and cup holders. For a few years it might be useful. Over time, manufacturers would game the system, and cars would increasingly reflect the formula rather than the myriad preferences of owners, from aesthetics to comfort. Cars would become terrible. Rory links it to the McNamara fallacy: obsessing over what is measurable, like Vietnam body counts, and designing counterproductive targets.

“Cars would increasingly reflect the algorithm or formula that was used to decide.”

The point: Any fixed decision formula gets gamed, so products converge on the metric and away from what people want.

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If you cannot measure it, you cannot do it

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Rory still calls himself a direct marketer and loves measurement and randomised trials. But tech firms, with marketers playing along, sold a vision of complete quantification in which every penny is justified. The healthy idea that digital lets us test more things flipped into its weird reversal: unless you can measure it, you cannot do it at all. That was always the curse of direct marketing: a good idea that was not directly measurable was never allowed.

“A weird kind of reversal of that, which is unless you can measure it you can't do it at all.”

The point: Measurement as a tool is healthy; measurability as a precondition for action filters out many of the best ideas.

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Imagine assuming balsa wood is as strong as concrete

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If Rory models himself on science, it is Darwin, or Alfred Russel Wallace, born in his home village, not Newton: look at things and infer, rather than theorise and seek applications. Economists have a get-out-of-jail-free card in assuming perfect information and perfect trust. No engineer would be allowed such an absurd assumption: let's imagine balsa wood is as strong as concrete and proceed from there. By setting all the psychology to zero, economists get rid of everything interesting, as if he were born knowing he wanted a mattress topper.

“We'll imagine that balsa wood is just as strong as concrete and then we'll proceed from there.”

The point: Economics' foundational assumptions would be unacceptable in any engineering discipline.

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Incentives work, but don't pay your spouse for sex

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Social context changes everything. Giving gifts is good in most societies, yet returning a present to its giver is one of the rudest things you can do. Paying people when they do something you like is perfectly sound economics and is called an incentive, but that does not mean you should pay your spouse for sex. In a footnote Rory adds that he tried it once, and about three months later was offered some sex: the economic approach, if it works at all, works rather slowly.

“So the economic approach, if it works at all, works rather slowly.”

The point: Economic incentives ignore the social context that determines whether an exchange is a kindness or an insult.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

It took Maxwell to do the maths of a steam governor

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The centrifugal governor on a steam engine, two spinning balls that fly outwards and cut the steam when the engine runs too fast, is about the simplest cybernetic device there is. Yet the maths explaining it was first worked out by James Clerk Maxwell, one of the great geniuses of the 19th century, and was too complex to compute until 30 or 40 years later. If one feedback loop is that hard, modelling human behaviour, where everyone affects everyone else, as a simple device is absurd.

“Sometimes we should just say this is just too complicated.”

The point: Even trivial feedback systems resist calculation, so human systems cannot be modelled like simple machines.

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It's cheaper to test things than to argue about them

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Iain McGilchrist suggested to Rory that left-brain dominance stems from the institutional need to win arguments. What Rory hates about rationality is that a rational case implies anyone who disagrees is wrong: you build a logical path to the conclusion you wanted, then call everyone else an idiot. Bezos's two-way doors show many things are cheaper to test than argue about. Everyone but Bezos hated Amazon Prime. Why don't banks copy Amazon's 'call me back' button? 'We couldn't do the cost-benefit analysis.' Amazon already proved it; why must you prove everything? There's no proof about the future.

“There are many things that it's cheaper to test than it is to argue about.”

The point: Demanding proof for reversible, already-proven ideas wastes more than simply trying them.

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It's the outliers that tell the story

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The higher you are promoted, the less you know what is really happening, so you live on a diet of averages and aggregations. A Canadian autism specialist told Roger Martin that it is the outliers that tell the story: he rings the clustered points on a scatter plot and investigates the ones far out. Never criticise something for being anecdotal. Jeff Bezos says when the data and the anecdotes conflict, it is usually the data that are wrong. Anecdotes are useless for winning arguments but very useful for solving problems.

“When I find a conflict between the data and the anecdotes, I normally find it's the data that are wrong.”

The point: Anomalies and anecdotes carry the most information for solving problems.

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Knowing R nought only helps at national level

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Rory has grown more impressed by business than academia as a problem-solving technology. Universities reward over-generalisation: aggregate enough data and you can find a statistically significant rule that is useless locally, where context is what matters. In the pandemic, knowing R nought only lets you act nationally; what you really need is how it varies from person to person and place to place. Much of science, he says, should be acknowledging what you do not know and therefore what you need to test.

“The quest for generalisation is actually a misapplication of science.”

The point: Average findings can be true yet useless, because effective intervention depends on local variation.

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Look at economics as a naturalist, not an engineer

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Crediting Robert Frank's The Economic Naturalist, Rory argues that viewing human economic behaviour through an engineer's eyes is dangerous; a naturalist's frame is far more useful. Universal, context-free laws suit aircraft design, where success doesn't depend on perception. But when London prices soar, some sell and move out while others stay for fear of never returning: one stimulus, opposite behaviours. Meteorologists would revise their models if the Gulf Stream shifted; economics must likewise adapt to context. It may be modelling itself on the wrong science entirely.

“Economics is trying to model itself on the wrong kind of science entirely.”

The point: When the same stimulus produces opposite behaviours, physics-style laws fail and observation must replace deduction.

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Loyalty points as Hayek's competing currencies

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In the 1970s, long before Bitcoin, Hayek argued in The Denationalisation of Money for multiple competing currencies, with people using whichever they trusted most or whose conditions suited them. Rory tells loyalty marketers they were doing this all along, creating parallel currencies, an extraordinarily interesting experiment in human behaviour. A loyalty programme is a positive-sum value exchange: by understanding customers better over time you deepen trust, they get a better time, you make a bit more money.

“Now, you were doing this before there was Bitcoin, creating parallel currencies.”

The point: Points behave as a separate currency with their own psychology, and can be positive-sum.

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Measurebation

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Rory borrows 'measurebation' from Matt Watkinson's book on customer experience. It comes from digital photography: enthusiasts who obsess over sensor size, megapixels and lens specifications, buy every new camera with a slightly better metric, and take terrible photographs, because they understand the numbers but not the other side of photography. Economics is particularly guilty, ignoring everything human to build neat models. It shows up in the financialisation of everything and the rule that a decision needs a spreadsheet and a pie chart, so people with numbers outrank people with abstract nouns.

“They understand all the numerical stuff but not the other side of photography.”

The point: Obsessing over measurable attributes crowds out the unmeasurable qualities that actually matter.

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Micro-efficient, macro-inefficient

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Evolution teaches that we are optimised for multiple conflicting things: babies want to be big and born late, which is bad for the mother; attractiveness trades off against fitness. Optimising for one thing alone, such as efficiency, under-optimises for others, such as resilience. Rory borrows a phrase from the economist Paul Samuelson: many things are micro-efficient but macro-inefficient, so optimising the part fails the whole. He recommends an essay, 'When slower is faster', on processes where slowing one stage speeds the whole.

“There are many things which are micro-efficient but macro-inefficient.”

The point: Optimising one part or one metric can damage the whole system.

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Mr Logic and the milk jug

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Viz's character Mr Logic was based on the brother of one of the comic's creators. The brother got annoyed that their father poured milk into a jug for the table, insisting it was illogical to use an unnecessary receptacle between the bottle and the cornflakes. The father simply said a milk jug on the table is nicer than a bottle. Rory uses it to show why he is uncomfortable calling consumer behaviour biased: we rarely know the full context or what someone is really trying to achieve.

“You're using an unnecessary receptacle between the original milk receptacle and the cornflakes.”

The point: Behaviour that looks irrational against a narrow logic often serves purposes the critic has not considered.

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Not assumptions but barefaced lies

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Neoclassical economics assumes we are utility-maximising actors making standalone transactions with perfect information and perfect trust, mainly so the maths is tractable and economics looks like a science. Rory accepts that models need assumptions, but says these are not assumptions, they are barefaced lies. Perfect information and trust almost never exist, and our brains evolved to decide with incomplete information, little time and uncertain trust. Even if you built a world ideal for Homo economicus, Homo sapiens would find it deeply strange.

“I would argue these aren't actually assumptions. They are barefaced lies.”

The point: Economic models built on perfect information and trust describe a world our evolved brains were never designed for.

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Not everything that makes sense works

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Rory defines the alchemy of his title as the science of knowing what economists are wrong about. The trick is not understanding universal laws but spotting the many places where they do not apply, and knowing when to abandon narrow logic. He sums it up in a two-by-two: not everything that makes sense works, and not everything that works makes sense. Pure science occupies the corner where both hold; everywhere else, wonky human perception is integral to any workable solution.

“Not everything that makes sense works, and not everything that works makes sense.”

The point: Making sense and working are separate tests, and many effective solutions pass only the second.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Numbers are the Norman French of modern business

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In the Anglo-Saxon world of the 21st century, Rory says, numbers have become like Norman French in 11th or 12th century Britain. You could survive without speaking it, but you would not get into the church or any position of power or influence. Speaking numbers is now the price of entry, which lends unwarranted strength to arguments and unwarranted confidence to analysts. He notes that Adam Smith's The Wealth of Nations, the founding economics book, contains no maths at all.

“You can survive if you don't speak it, but you won't get very far.”

The point: Numeracy has become a class marker of authority, not just a tool, so numerical arguments win out of proportion to their merit.

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Our actions come before our reasons

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Asked the most interesting thing he has learned about human behaviour, Rory says it is the extent to which our actions precede our reasons. A large part of consciousness seems to delude us into believing we think and reason and then act, but the way we are convinced we decide bears little relation to the real cognitive process.

“The extent to which our actions precede our reasons.”

The point: Stated reasons are often post-rationalisations, so asking people why they act is a poor guide to behaviour.

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Our deepest motives are hidden from us

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Rory says we are not aware of our deep-set motivations because it pays us, in evolutionary terms, to have certain motivations that are opaque to introspection. We also do not perceive the world remotely objectively, again for evolutionary reasons. Asking people why they do things therefore gives a misleading picture of what actually drives them.

“It pays us in evolutionary terms to have certain motivations that are opaque to introspection.”

The point: Self-reported reasons are an unreliable guide to behaviour because evolution benefits from hiding true motives.

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People are not as predictable as carbon fibre

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For fifty years people at work have tried to look intelligent by looking like scientists, giving plausible-sounding explanations that may not be the real ones. But the tools that work brilliantly for designing a Boeing 787 do not work for designing a customer experience or a tax programme, because people are not as pliable or predictable as carbon fibre or metal alloys. Cultivating an air of scientific certainty leads people to treat a psychological problem as a physics problem.

“To avoid stupid mistakes, learn to be slightly silly.”

The point: Engineering-style certainty misrepresents human problems, which need a looser, more exploratory approach.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Perfect information and perfect trust, good luck with that

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Neoliberal economics assumes people have known, stable, transitive preferences, a fully known utility function to the last decimal place, and operate with perfect information and perfect trust. Good luck with that: Rory calls it deranged. In reality nobody bothers to measure trust, and any activity that deepens trust will almost certainly be seen by finance as an unnecessary cost, because it neither produces the primary product nor reduces its price. In economics, trust is simply set to one.

“In economics, trust is just set to one.”

The point: Because models assume trust, investments in building it are misclassified as waste.

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Physicists can't blame atoms for being in a bad mood

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Economics has little predictive value, yet economists enjoy a luxury physicists don't: when people behave inconsistently with economic theory, economists call the people irrational. A physicist can't say 'my experiment completely failed, but that's because the atoms were in a bad mood'. An economist is allowed to blame the failure of the theory on the public's failure to adhere to it.

“My experiment completely failed, but that's cos the atoms were in a bad mood.”

The point: Labelling behaviour 'irrational' protects a failed theory instead of correcting it.

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Praising capitalism for efficiency is like praising Dylan's voice

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Capitalism, Rory says, has nothing to do with efficiency. Praising it because it is efficient is like praising Bob Dylan for his beautiful singing voice: Dylan's great, but that's not why. Competition is massively inefficient, full of duplication and people doing the same thing differently. Its magic is that it is a discovery mechanism, chiefly for new forms of value exchange between vendor, employee, employer and shareholder. Flexible work is one: you might hire someone you couldn't otherwise afford by offering lifestyle instead of salary.

“Praising capitalism because it's efficient is like praising Bob Dylan because he's got a beautiful singing voice.”

The point: Markets matter for discovering new kinds of value exchange, not for efficiency.

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Psycho-logic

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Rory coins 'psycho-logic' for the way people actually decide, as distinct from the artificial concepts of logic and rationality taught in maths or Economics 101. It evolved to be useful, not optimal. Logic makes a successful engineer; psycho-logic made us a successful breed of monkey. He picks a neutral word on purpose: the usual label, 'emotion', makes it sound like logic's evil twin, and 'you're being emotional' is code for 'you're being an idiot'. Like gravity, it is a force nobody noticed until someone named it.

“Logic is what makes a successful engineer or mathematician, but psycho-logic is what has made us a successful breed of monkey.”

The point: Human decision-making follows its own evolved logic, which should be studied on its own terms rather than dismissed as irrational.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Psychology was only taken seriously once rebranded as economics

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Rory notes that Adam Smith was a behavioural economist long before the term existed. Daniel Kahneman, a psychologist who won the Nobel prize for economics, observed that nobody in business or government took psychology seriously until it was rebranded as a branch of economics. For the first time it became intellectually respectable to discuss problems from a human, psychological perspective rather than leaping to a reductionist mathematical model. Much of what is wrong with the world, Rory says, comes from looking at the wrong things.

“Quite a lot of what's wrong with the world is caused by the fact that we're just looking at the wrong things.”

The point: Even ideas need the right framing and status to be taken seriously.

Sources (1)

Raise taxes and some people work harder

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To free-market types it's axiomatic that raising tax makes people work less. On average maybe: a surgeon facing a 97 per cent marginal rate won't do overtime. But many people can't control their earnings anyway. Others, like Rory, think: they've raised tax, so to maintain my lifestyle, set at roughly a failing rock star on a difficult second album, I'll have to work harder. Others postpone retirement. The same stimulus produces opposite reactions depending on context and temperament, which is why Gary Stevenson rightly attacks single representative agent models. As Max Planck said, imagine physics if atoms could think.

“Imagine how difficult physics would be if atoms could think.”

The point: Averages hide divergent responses, so models built on a representative agent mispredict behaviour.

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Reordering the Amex application form doubled responses

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In the late 1980s Rory noticed something strange working on American Express direct mail. Doing something very small, such as changing the order of questions on the application form, would sometimes double response rates or lift them by 50 per cent. It defied all economic logic. He knew there was a whole science waiting there, but practitioners typically move on to the next job instead of stopping to ask what the effect means.

“It defied all economic logic. I knew there was something there.”

The point: Trivial changes in presentation can produce enormous effects that economic models cannot predict, and they deserve study rather than shrugging.

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Rewarding children for painting makes them stop

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Rory cites research suggesting that paying people to do creative tasks recasts the activity as work and dampens their enthusiasm for it. Children given rewards for painting pictures give up painting sooner than children who paint simply because they enjoy it. The logical incentive backfires.

The point: Extrinsic rewards can crowd out intrinsic motivation, so a sensible-looking incentive may reduce the very behaviour it targets.

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Seeing Like a State, the Domesday Book and Prussian forestry

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Data is valuable, but compressing it into tractable charts leaves things out. Rory recommends James C. Scott's Seeing Like a State: the state's need to comprehend what it governs forces statistical compromises. The Domesday Book of about 1080 lists cattle, land, trees and buildings, but not people. Eighteenth-century Prussian forestry measured timber per acre but ignored undergrowth and brushwood, which prevent fires and maintain soil, plus wildlife, including the bears that keep sapling-eating herbivores down. Data is also too often cherry-picked to support decisions rather than illuminate them.

The point: What is easy to measure crowds out what matters, leaving the official view blind to lived reality.

Sources (1)

Smith as the first prophet of alchemy

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One of Smith's great insights was an alchemy insight: you can get something for nothing, because life is not a zero-sum game. His enemy was mercantilism, backed by the strong human heuristic of a fixed cake where your loss is my gain: export as much as possible, import as little as possible, hoard reserves. Smith said that was a mug's game. The division of labour creates more wealth without more labour; you simply organise the labour differently. Rory's closing line: rather than trying to change the world, change how people see it, because then they behave differently.

“You can do the same thing in a different way and create inordinately more value for virtually no more effort.”

The point: Value can be created by reorganising or reframing, not only by adding resources.

Sources (1)

Sourdough has taken over

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Markets innovate well, but they also create winner-takes-all effects, grotesque distortions where everything gets devoted to one thing. Rory's excuse for a rant is cornbread, versus sourdough. Sourdough is a valuable addition to his baking repertoire but far too dominant. Soda bread, big in Wales and Ireland, is utterly fantastic and almost impossible to find; cornbread is magnificent. Why has everybody bet the farm on one form? He suspects sourdough has just become shorthand for posh bread, the way 'organic' became shorthand for posh food without anyone checking what it meant.

“Sourdough's just become a shorthand for posh bread.”

The point: Markets can converge on one status signal and crowd out equally good variety.

Sources (1)

The American tourist looking for Oxford University

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Rory explains a category error with the philosophers' example: an American tourist arrives in Oxford and asks to see the university, expecting a big building with Oxford University written on it. There is no such building; the university is an assemblage of colleges and faculties, so the tourist leaves disappointed. Applying the maths used to calculate the surface area of a cone to human behaviour, meteorology or psychology is the same kind of mistake: the wrong kind of science for the thing.

“It isn't that kind of entity.”

The point: Treating human behaviour with the tools of Newtonian physics is a category error, not just an imprecision.

Sources (1)

The Big Short and the stripper with eight mortgages

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Rory calls The Big Short one of the best films of the last 20 years. Lots of people in New York banks had aggregate data telling them everything was fine. The heroes went and found the data they needed: they went to Florida and spoke to a stripper with eight mortgages. Rory doubts it would pass a corporate travel policy, but they asked the right people on the ground and saw that what looked neat from New York was a total mess in reality.

“They didn't ask what data have we got, but what data do we need.”

The point: Ground-level anecdote can expose what aggregate data conceals.

Sources (1)

The bludgeon, any data can be given a plausible story

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As a response to Occam's razor, Rory offers a bludgeon [?] (the name is mangled in the captions): there is no set of data, however contradictory or absurd, from which the human brain cannot conjure up a plausible narrative. That creates a big danger that we believe data because our brains automatically wrap a convincing story around it, even when the data is rubbish.

“There is no set of data, however contradictory or absurd, from which the human brain cannot conjure up a plausible narrative.”

The point: Story-making instincts make bad data persuasive, so plausibility is no test of truth.

Sources (1)

The economist who was angry about price rises

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When Rory told an economist that you can often increase a product's sales by increasing its price, the reaction was not curiosity but anger, as if he had insulted the man's dog or football team. For highly educated people, logic is part of their identity, which makes them resistant to being wrong. Imagine if you could only get a well-paid job or political office by supporting the New York Yankees or Chelsea: we would call it absurd, yet devoted fans of logic control the levers of power everywhere.

“It was as though I had insulted his dog or his favourite football team.”

The point: Logic functions as a tribal identity for elites, which makes them defend it against inconvenient evidence.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

The French squirrel-tail bounty

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Responding to a bonus scheme tied to page views, Rory warns about perverse incentives with a historical tale. In roughly eighteenth-century France, overrun by squirrels, the authorities offered a few sous for every squirrel tail handed in, expecting the pest to vanish within a few years. Instead the annual payout kept rising while the squirrel problem stayed the same or grew. Eventually they found out why: people had begun breeding squirrels on an industrial scale purely to cash in the tails.

The point: An incentive that looks perfectly logical to a planner can produce the exact opposite of what was intended.

Sources (1)

The psychopath's weather question

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Nearly all big data comes from the same place: the past. Weather forecasting has improved for three to five days, but beyond seven to ten days it is genuinely unknowable, so you should stop pretending data will predict it. Rory's thought experiment: a psychopath traps you in a basement and will release you only if you tell him what the weather is like outside. The single best answer is "the same as yesterday". People hooked on accuracy become comfortable with that kind of short-termist extrapolation, but resilient businesses must place some intuitive bets.

“Apparently the answer is: the same as yesterday.”

The point: Extrapolating the past is the most accurate short-term guess but useless for preparing for change.

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The puzzle Einstein got wrong for 15 seconds

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Rory poses the puzzle: someone drives a mile at 15 mph; how fast must they drive the second mile to average 30 mph over two miles? Most people say 45. Einstein reportedly made the same mistake for about 15 seconds. In fact it is impossible: averaging 30 mph over two miles takes four minutes, which the first mile has already used up, so you would need to go infinitely fast. Rory shows it in every talk because it illustrates how our intuitions about speed mislead us.

“In fact, you've got to go infinitely fast. It's actually totally impossible.”

The point: Intuitions about speed and time are systematically wrong because of how speed is expressed.

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The rich friend who gave your loan to Africa

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You fall into debt and ask a rich friend for a £5,000 loan. He patiently explains that a village in Africa is a far more deserving case, and he will donate the money there instead. Your friend is behaving perfectly rationally. Unfortunately he is no longer your friend. Human relations only work if some obligations outrank others. Rory notes that Jeremy Bentham, father of utilitarianism, once declined to meet his young nieces in case he disliked them or was sad to see them go: perfectly reasonable, but weird as hell.

“Your friend is behaving perfectly rationally. Unfortunately he is no longer your friend.”

The point: Universal logical rules like utilitarianism clash with how humans evolved to cooperate, so context and partiality matter.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

The silent graveyard of failed restaurants

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As Taleb puts it, the graveyard of failed restaurants is a very silent place. Looking at restaurants, it is easy to think the business is a doddle because they all seem to be doing well, but you only see the survivors; often six restaurants failed on the site of one successful one. It is like admiring how well 18th-century Americans built houses: the bad ones fell down, rotted or were demolished, and only the good ones remain.

“The graveyard of failed restaurants is a very silent place.”

The point: Survivorship bias makes risky ventures look safer than they are.

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The viceroy test

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Alongside the Turing test, Rory proposes the viceroy test: to what extent does this technology let you live better than the Viceroy of India, someone with extraordinary domestic service? Washing machines and dishwashers are servant substitutes; a Waymo is just a chauffeur. Entertainment devices are a genuine improvement, but much technology merely compensates for living in a high labour-cost economy. That is the unspoken appeal of places with cheap domestic service, and he notes that his father, Nassim Taleb and John Gray all gave the same answer to what they would do with ten million dollars: get a chauffeur.

“A Waymo is just a chauffeur, and a dishwasher is just a housemaid.”

The point: Much technological progress recreates services the rich always had, compensating for high labour costs.

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The world is Darwin, but we pretend it's Newton

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Most of the world behaves like Darwinian evolution, where things change and adapt, but we pretend it is Newtonian physics with immutable, consistent laws. Rory quotes his distant cousin Woodrow Wilson, who warned that we have given science too great a preponderance of method in every other branch of study: when we cannot do science, we pretend we can. That assumption is fine in engineering, where gravity will be the same tomorrow. You cannot do that with a market or human psychology, where you can rewrite the rules yourself.

“Most of our world is Darwin but we're pretending it's Newton.”

The point: Applying physics-style certainty to human behaviour misses that its rules are changeable.

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Three interest-free payments make it a different product

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Joining the RSA for about £200 a year, Rory could pay monthly, quarterly or annually with no interest, so the total was the same. He had a massive, inexplicable preference for quarterly. He argues a Dyson fan at £580 and one at three payments of a smaller sum are different products, not just different ways of paying. An economist assumes Klarna users rationally park the money in a high-interest account for three months. Rory hates saving: 'it's just consumerism needlessly postponed.' Experimenting with ways to pay is fundamental.

“Saving is just consumerism needlessly postponed.”

The point: How a price is structured changes how a product feels, even when the total cost is identical.

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To finance, priceless means zero

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The value of fame is almost incalculable. In normal conversation, calling the Mona Lisa priceless means it is unimaginably valuable. To someone with a finance mindset, the fact that it is not calculable means it effectively cannot count. If something does not fit on a spreadsheet or balance sheet, we treat it as if it is zero.

“If it doesn't fit on a spreadsheet or a balance sheet, we treat it as if it's zero.”

The point: Unquantifiable value is systematically treated as worthless by finance-led organisations.

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Trying the same thing again may be complexity, not insanity

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The laws of physics are written somewhere upstairs and never change, so past data is enough to tell you what is impossible. The laws of human behaviour are highly context-dependent, changing with fashion, whim, storytelling and mood. So insisting that anything you try must make sense in terms of past data is a massive constraint on innovation. In psychology and complex systems, trying the same thing again and again in the hope it works one time is not necessarily the definition of insanity. It might be the definition of complexity.

“It's not necessarily a definition of insanity, it might be a definition of complexity.”

The point: In human systems, past failure does not prove future failure, so data-driven vetoes stifle experimentation.

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Twice as many paid 600 pounds, and it was ignored

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The Behavioural Insights Team, which Rory respects, tested a sound hypothesis: people do not insulate their lofts because they are full of junk. A door drop offered either plain insulation for about 300 pounds, or a 600-pound service that cleared the loft, insulated it, returned what you wanted and took away the rest. Door drops get tiny response rates, so the results were not statistically significant and the idea was largely shelved. Yet twice as many people paid 600 as paid 300. Any businessman would say we are off to the races; after 30 years in advertising, Rory says a good counterintuitive anecdote can justify a major investment.

“You've got twice as many people paying 600 pounds as you have paying 300 pounds, and you're saying that's not significant?”

The point: Academic significance thresholds can blind practitioners to commercially decisive signals.

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We trust a silicon black box but not a carbon one

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One optimistic reading of large language models is that they rebalance business discussion from the numerical to the verbal. Because numbers were easier to compute than words, business has suffered massive quantification bias, deeming important only what fits on a spreadsheet. And it's strange that we happily take advice from a black box when it's a machine, while the human brain's own black box, intuition and instinct, is banned in business: you never win an argument by saying your instinct is it will work. If the instinctive response comes from silicon rather than carbon, we treat it with extraordinary deference.

“If the instinctive response is generated by silicon rather than carbon, we're all treating it with extraordinary deference.”

The point: Organisations accept opaque judgement from machines while dismissing equally opaque human intuition.

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We wrote off physical retail and direct mail too soon

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When something new arrives, we compare what is good about it with the old thing and forget what the old thing did that the new does not. Physical retail converts at around 10 per cent versus about 1 per cent online, with a tenth of the returns, so it is less efficient but in many ways more effective. Likewise we abandoned direct mail because email is cheaper, yet a physical letter can get a 6 per cent response against a tiny fraction of a per cent for email. Efficiency and effectiveness are not the same thing.

“Efficiency and effectiveness aren't the same thing.”

The point: Judging innovations only on their advantages hides the valuable things the old way did better.

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Wealth is the number of rewarding choices you can make

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Rory argues that no sensible definition of wealth is purely financial. Being wealthy means being able to make many well-informed, rewarding choices. A rich person living in an impoverished area has money to look at in the bank but no restaurants, bars or anything worth doing outside the house. Neoclassical economics assumes the only way to make people richer is to make more stuff. If wealth is choice, you can create it far more cheaply and greenly by designing choices better, without using any more resources.

“By improving choice architecture, we can increase human wealth without increasing human consumption.”

The point: Better-designed choices create real wealth without new production, so choice design is an economic discipline.

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What if doubling holidays cost nothing?

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About 68 per cent of Americans would take a 4 per cent pay cut to double their two weeks' holiday. But what if more leave cost nothing, because rested people work better, spend on leisure and retire later? The French are astonishingly productive when not on holiday and Germany thrives with six weeks of leave. Yet no American model allows this to be trialled, because the technocratic mind treats the economy as a machine whose output must fall if left idle. The economy is a complex system, and complex systems allow for magic.

“Engineering doesn't allow for magic. Psychology does.”

The point: Treating complex human systems as machines rules out cheap solutions that might be positive-sum.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

What you don't measure can kill you

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Rory closes on the space shuttle Challenger's O-rings. The launch wasn't aborted not because engineers were relaxed about the O-rings at 32 degrees Fahrenheit, but because there was no data on their performance at that temperature. The manufacturers said they were out of their data range and very uncomfortable, but without data the decision-makers were incapable of acting. The same is true of trust: you're not measuring it, but somewhere it might be out to get you.

“What you don't measure can kill you.”

The point: Absence of data is not evidence of safety, and unmeasured factors like trust still bite.

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When you paint the lines on the bridge you're in psychology

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Science is excellent where success can be defined objectively. A good bridge is one that bears a given weight at a given frequency in given weather, so you hire engineers. But as soon as you paint the lines on the bridge, you are in a different field where human psychology matters. Rory shows an Icelandic road crossing painted in trompe l'oeil style so motorists think it is raised and slow down.

“As soon as you paint the lines on the bridge you're in a different field.”

The point: Engineering logic works for objective problems but not once human perception is involved.

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Who would volunteer for an implant to test adverts?

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Discussing brain-computer interfaces and the move to non-invasive neural measurement, Rory notes why that matters for research. The number of people who would agree to have an implant fitted just to measure their response to advertising is probably not representative of the population as a whole.

“The number of people who'd agree to have an implant to measure their response to advertising is probably not representative.”

The point: Research methods select their own samples, so intrusive measurement produces unrepresentative data.

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Why did it take a year and a half to see Covid was airborne?

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Rory thinks over-reliance on the scientific method in inappropriate fields is a mistake. Why did many of the brightest minds in the world, over-reliant on robust evidence and under-reliant on anecdote and experimentation, take a year and a half to spot that Covid was airborne? There were official World Health Organization statements that it was not, while people washed their hands. They were looking at evidence from other pandemics, but this was a novel coronavirus, about which there was little evidence.

“Novel coronavirus: that means something about which there isn't much evidence.”

The point: With genuinely new problems, insisting on established evidence delays obvious conclusions.

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Why drive an electric car? Physics

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Rory says he is very respectful of the laws of physics, because he constantly argues with people hostile to electric cars. When they ask why he wants them to drive one, he simply replies: physics. An electric motor translates energy into forward motion around five times more efficiently than internal combustion, he says.

“They say, why do you want me to drive an electric car? And I simply reply: physics.”

The point: Some arguments are best settled by pointing to fundamental efficiency rather than preference.

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Why Ogilvy could afford Sea Containers House

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When Rory's boss proposed moving Ogilvy to Sea Containers House on the South Bank, overlooking the Thames, Rory said they could never afford it. They could, because London property classification treats south of the river as not prime central London. Being right on the riverbank is obviously prime, and by the same logic Windsor Castle would not count as prime property. The binary label creates a mispricing, and that is what entrepreneurs and developers hunt for.

“Every entrepreneur is not trying to be right, they are trying to find out where everybody else is wrong.”

The point: Arbitrary categorical rules misprice assets, and the opportunity lies in what competitors are wrong about.

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Why so many terrorists have engineering degrees

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Rory plays 'spot the terrorist' across university faculties: engineering comes top by a statistically peculiar margin, with Islamic Studies a distant second. Researchers asked whether bomb-making skills explained it, but many were in management roles, and the Baader-Meinhof gang were arts graduates to a man. Their conclusion was that engineering breeds a mindset that disdains ambiguity and compromise, a mechanistic view uncomfortable with fudge, which draws people to absolutist views. Rory suspects the boards of many British companies share the same hatred of ambiguity.

“There's a peculiar mindset among engineers that disdains ambiguity and compromise.”

The point: A mechanistic, ambiguity-hating mindset, common in engineering and finance, misreads a messy human world.

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Why the English are bad at languages, network effects

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Brits blame their poor language skills on laziness or smugness. Rory, drawing on Paul Ormerod's Positive Linking, reframes it as network effects. A Dutchman gains perhaps a hundred times more from English than an Englishman from Dutch, has absorbed thousands of hours of subtitled English TV, and finds friends who will learn with him. An Englishman faces a muddled choice of language, no social support, and gains nothing until his Dutch beats the average Dutchman's English. One learns incrementally; the other only at a distant tipping point.

“An Englishman only gains from learning Dutch once he reaches some vital tipping point of extraordinary fluency.”

The point: Behaviour blamed on individual failings is often the product of network effects.

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Why the West ignores the Japanese toilet

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Rory calls a Japanese-style washing toilet the best thing you can buy. Some 71 percent of toilets in Japan wash you, yet the West, with its 'filthy' reliance on dry paper, has largely failed to adopt this obvious technology, and only a sliver of the maker's sales are in Western Europe. It has nothing to do with economics, since Western Europe is not poorer; it is purely cultural.

“Nothing to do with economics, to do with culture.”

The point: Adoption barriers are often cultural, which economic models ignore.

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Your maths career peaks at calculus and ends in Excel

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Rory shows a mathematician's joke chart of maths skill against stage of life: counting, arithmetic, geometry, algebra, trigonometry, complex numbers, calculus, advanced calculus at university, and then your first job: Excel. Business is run by people uninterested in anything that does not fit a spreadsheet, which massively shrinks the solution space. Driven by fear of variance, people would rather have a definite 4% than a highly probable 15%.

“People would rather have a definite 4% than a highly probable 15%.”

The point: Spreadsheet thinking and fear of variance make businesses reject good probabilistic bets.

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Risk, satisficing and choice 130

McDonald's is very good at not being terrible

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Rory claims McDonald's is in a sense the best restaurant in the world, which scandalises people who think the best is some Danish foraging place. There is no town where McDonald's is the best restaurant, but it is incredibly good at not being bad. In a foreign country, in a hurry, you know the food will be fine, you won't be ripped off, the kids will eat it and you won't get ill. None of that is guaranteed at a Michelin-starred restaurant: anyone in advertising over 35 knows that about one time in eight a starred meal gives you the runs. It is no good for a date, that is what Nando's is for, but as a low-variance restaurant it is fantastic.

“McDonald's is the most successful restaurant in the world not because it's really really good but because it's incredibly good at not being bad.”

The point: The absence of negatives is valued differently from the presence of positives, so reducing downside risk can win more custom than adding quality.

Variants: Rory often extends it to brands in general, which people pay a little extra for in exchange for lower variance, such as a Samsung television. Some tellings add Usain Bolt eating Chicken McNuggets before an Olympic final, or Ray Kroc's line that people want a burger just like the last one.

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Men won't order a cocktail without seeing the glass

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Working for Diageo, Rory's team found you will never sell a man a cocktail in a bar unless the menu shows a picture or drawing of the glass it comes in. Men do like cocktails, but if the male brain thinks there is even a tiny chance it will arrive in a hollowed-out pineapple or coconut, looking absurdly frilly, followed by 20 minutes of ridicule from his friends, he orders a pint of Stella instead. The remote possibility of humiliation dominates any pleasure he might have had. The fix is to remove the uncertainty: show the glass, or say all our cocktails come in mason jars, and men will happily drink them all evening.

“If the male brain thinks there's a 0.01% chance it turns up in a pineapple, he'll order a beer.”

The point: A small chance of embarrassment can kill a purchase, and removing that uncertainty often unlocks more demand than adding benefits.

Variants: The imagined probability ranges from 0.01 to 1 per cent. Some tellings pair it with why nobody switches bank account: a 1 per cent chance of a living hell outweighs a likely small gain.

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Eight division heads refuse a good bet

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Richard Thaler asked the heads of the eight biggest divisions of a large company, possibly GE, whether they would take a decision with a 50 per cent chance of raising profits by 50 per cent and a 30 per cent chance of cutting them, never into loss. Any blackjack player would double down on those odds, yet six of the eight said no: 30 per cent of the time they would lose their job. The chief executive was aghast. He wanted all of them to take it, because in aggregate the company would almost certainly have its best year. Push accountability down into ever narrower silos and every layer amplifies risk aversion, until you have an organisation that is operationally paranoid, where nobody can afford to fail however good the odds.

“When you push risk down an organisation into smaller and smaller parts, you're creating an organisation which is now operationally paranoid.”

The point: Bets that are good for the whole are refused by individuals who alone bear the downside, so dividing accountability into small units multiplies risk aversion.

Variants: Usually credited to Richard Thaler, once to Kahneman's Thinking, Fast and Slow. The numbers drift between tellings: the downside is a 20 or 30 per cent chance of profits falling 20 or 30 per cent.

Sources (6)

Nobody ever got fired for buying IBM

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Rory suggests the main activity of business is arse-covering, with value creation a small secondary sideline. Consumers try to minimise the risk of regret; business buyers try to minimise the risk of blame. Make a boring, logical decision and if it goes wrong you were unlucky; make an eccentric one, however good, and it is your fault. 'Nobody ever got fired for buying IBM' is probably the most insightful B2B sentence ever written. It is why there are only four big accounting firms, and why British Airways' brilliant all-business-class London City to JFK flight had no waiting list: the PAs who book business travel ask what won't get them shouted at, and recommending the eccentric option makes any delay their fault.

“The main activity of business is arse-covering, with value creation as a small secondary sideline.”

The point: Organisational buyers purchase protection from blame, so safe, defensible choices beat better ones unless the better option also comes with cover.

Variants: In one telling Rory turns it on his own field: economics is the new IBM, because no one ever gets fired for using it. He recommends Gerd Gigerenzer's Risk Savvy on defensive decision-making.

Sources (6)

The coin toss that makes the average rich and you poor

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Following the physicist Ole Peters, Rory offers a bet: heads your wealth rises 50 per cent, tails it falls 40 per cent. Across many people betting at once, average wealth rises 5 per cent a toss, so it looks great. But follow individuals over time. Four people start with £100: after two tosses one has £225 while the other three are worse off, and the one who threw two tails needs three heads in a row just to get back. Play long enough and a few get insanely rich while nearly everyone else is skinned. Economics assumes life is ergodic, that the group average equals one person's outcome over time. It isn't. Nobody would accept any sum to play Russian roulette a thousand times in a row.

“In evolutionary terms it's win some, win some, lose some, lose some, lose some, die.”

The point: What is rational on average for a population can be ruinous for an individual over time, so caution that looks like bias, such as loss aversion, is often correct maths.

Variants: Some tellings add the multiplication point: two times two, repeated, beats alternating ones and threes, though the sums are equal, so under compounding low variance wins. One uses it to explain insurance.

Sources (6)

Asking your class before you know the price

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Airline booking sites ask where, when and what class: perfect for business travellers, useless for consumers. Asking people what class they want before they know the price difference is utterly insane: if premium economy is £20 more, Rory is in; if it is £2,000 more, he is not. Yet nobody objects that they lack the information. They just put economy, move on and only ever see economy prices. Perceived value is relative: £1,300 against £1,500 and you think sod it; £200 against £500, probably not. Ogilvy argued for showing the fares side by side. The change, a UX job costing about £25,000, made over £10 million a year in high-margin revenue for 15 years.

“Asking consumers what class of travel they want before they know the price difference is utterly insane.”

The point: People answer badly sequenced questions rather than ask for the information they need, so the order of a choice must be designed.

Variants: One telling frames it as a loss: an airline Ogilvy worked with was losing about £15 million a year this way. Another adds that asking for a destination first suits business trips, when leisure travellers might take any bargain on fixed dates.

Sources (5)

Most people choose B

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A call centre selling newspaper subscriptions offered callers three options, A, B and C, and many could not decide or said they would come back later. Two Ogilvy Change graduates, average age 24, took the train to the call centre near Manchester, listened in all morning and suggested a few behavioural phrases at lunch. One was simply: 'Most people choose B, but if you like you can have A, which is this, or C, which is more like that.' It was true, and it turned three equal options into a default plus two alternatives, with social proof attached. Conversion more than doubled. A species that ignored why the antelope were all running would not reach adolescence.

“We would not be an intelligent species if we didn't factor in the behaviour of others in making our decisions.”

The point: Under uncertainty, telling people what most others choose supplies a safe default and resolves indecision, because copying is a sensible way to avoid a bad outcome.

Variants: The uplift is 'more than doubled' in most tellings and two and a half to three times in one. Another telling draws the lesson for pensions: they lack the heuristics we use to buy a car, so people decide badly or not at all.

Sources (5)

We buy brands because they are less likely to be shite

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Childish maths: two times two times two times two beats one times three times one times three, though both rows average two. Add them and variance doesn't matter; multiply them and it does. In a non-ergodic world, which is fancy for real life, reducing variance is a rational strategy, and once you accept that people are trying to avoid bad results rather than achieve optimal ones, ten times more behaviour counts as rational. That explains brands. Buying a Samsung television, we don't think it's the best TV in the world; we pay a premium over the Amazon brand whose name looks like a row of Scrabble tiles because we are nearly certain it won't be terrible.

“We don't buy brands because we think they're better, we pay a premium because we think they're less likely to be shite.”

The point: Paying a premium for a known brand is rational insurance against a bad outcome, not a bias, because under compounding avoiding disaster matters more than seeking the optimum.

Variants: The premium is about 50 dollars in one telling and 100 pounds in another. One telling also uses the maths to rehabilitate habit, social copying, loss aversion and sunk-cost bias as variance reduction.

Sources (5)

American Express, they were afraid of being turned down

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In the late 1980s American Express mailings gave pages of rational reasons why the expensive Gold Card was worth it. A fairly junior client realised that people already wanted the card; they were not applying because they were frightened of being turned down. It was a dating problem, not a cost-benefit one. So the mailing changed: to receive your card, not apply for it, just sign your name. Creative director Steve Harrison wrote that the form was so short because 'we want you as a card member': you are virtually pre-approved. Instead of you chatting up American Express, American Express chatted you up. Applications rose roughly fivefold, an insight probably worth half a billion dollars to Amex globally.

“It was effectively like rather than having to chat somebody up, it was having American Express chat you up.”

The point: When demand is stuck, look for the emotional bottleneck, such as fear of rejection, and remove it rather than piling on reasons.

Variants: Dated to the late 1980s or the 1990s. One telling compares it to Yale writing to say it wants you; another adds that the client who had the insight never got rich from it.

Sources (4)

Better to fail conventionally, no lemming is ever blamed

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Reputational paranoia drives an enormous amount of institutional decision-making, and copying everyone else is the safest form of blame avoidance. Rory pairs two lines. Keynes, writing about investment: worldly wisdom teaches that it is better for the reputation to fail conventionally than to succeed unconventionally. And Warren Buffett: although the collective behaviour of lemmings is utterly stupid, there is no recorded instance of an individual lemming being singled out for blame. It is far easier on your reputation to go down with everybody in the 2008 crisis than to be the contrarian investor told month after month that you are wrong. The result is benchmarking, copying and commoditised categories, and outsized power for anyone who simply does not care what others think.

“It is better for reputation to fail conventionally than to succeed unconventionally.”

The point: Blame falls on deviation rather than on error, so herds converge on defensible sameness and people indifferent to reputation gain an edge.

Variants: The lemming line is credited to Warren Buffett in some tellings and Charlie Munger in another. The indifferent outsider is Terry Smith ('buy good companies, don't overpay, do nothing') in one telling; another suggests AI, free of reputational concerns, might help debias decisions.

Sources (4)

Life is darts, not archery

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Economic models treat decisions like archery: there is only one strategy, aim for the bullseye, because a near miss on the 10 still scores 9. That is why archery would be the worst thing in the world to commentate on: 'I think he's going to aim for the 10.' Most real decisions are more like darts. The best spot, treble 20, sits between the 1 and the 5, so aiming for it risks a terrible score. If you are not very good, aim for the south-western quadrant around the 19: nearly as good, and a miss still scores 16, so your average ends up higher. Real decisions have two dimensions, the average and the variance. There is no point climbing another hundred feet up a tree for a few extra cherries if there is a 1 per cent chance of death.

“We avoid disaster more assiduously than we seek perfection.”

The point: When misses are costly, aim for the option with the safest neighbourhood rather than the highest peak, weighing variance as well as the average.

Variants: The tree-climbing risk ranges from ten to a hundred feet and from a 1 to a 3 per cent chance of death. One telling adds that the French, superb at culture, are atrocious at darts.

Sources (4)

Nobody who gets an automatic goes back

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Nearly every Briton once had a story about why they disliked automatic gearboxes: you lose the feeling of control. In the 1960s and 70s automatics were genuinely poor, but people kept the story long after they improved, and everybody argued about it for 15 years. Yet no one who got an automatic ever went back to a manual. Electric cars look the same: the debate rages, but only about 7 or 8 per cent of buyers return to petrol. Rory calls these Japanese toilet cases, products people resist but never abandon once tried, like air fryers and mattress toppers. The useful evidence is the rate at which people reverse a decision, and the way to sell such products is to lower the risk of trying, for example with a two-week test drive.

“Everybody argues about it for 15 years, but no one who gets an automatic car ever goes back.”

The point: For products that win on experience, retention among adopters is better evidence than debate among non-users, and the job is to make trying low-risk.

Variants: One telling adds that people who go freelance rarely miss the nine-to-five; they wish they'd done it sooner. Another allows exceptions: living by the A9 in the north of Scotland, Rory might go back to a manual.

Sources (4)

Why footballers don't shoot down the middle

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Goalkeepers dive left or right about 90 per cent of the time, so in a penalty shoot-out many players would score more often by kicking straight down the middle. Very few do, even in World Cup shoot-outs. Shoot to one side and the keeper guesses right, and you look unlucky. Shoot down the middle and he saves it, and you look like a total fool, as if you did not even try. People ask not only what the average outcome will be but how bad they could look if it goes wrong, and Rory says that drives nearly all business decision-making. The fix is cover: the manager tells two named players to go down the middle, so the blame is his.

“Kick the ball straight down the middle and if he saves it you look really crap.”

The point: People avoid statistically better options that look foolish when they fail, unless someone with authority takes the blame for them.

Variants: One telling links it to doctors referring patients for unnecessary tests to avoid being sued; another to a boss asking for three or four options, one of them weird, to license unconventional ideas.

Sources (4)

You find entrepreneurs in casinos, not chess clubs

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You don't find entrepreneurs in chess clubs, Rory says; you find them in casinos, playing poker, backgammon, bridge or blackjack, games that are like real life because success depends on how you respond to chance. Chess demands extraordinary intelligence, but play the game of your life and you still get one point. Play the best poker hand of your life and you retire. As Jeff Bezos noted, in baseball you can score at most four runs from a hit; in business you can score hundreds. Business is dominated by people who think it is chess when it is poker, where four or five hands decide your evening. Marketing and R&D are fat-tailed exploration: if all your marketing works, you're probably not doing it right.

“Nobody who's interested in entrepreneurialism is going to play a game where you get one point for being a total genius.”

The point: In fat-tailed domains the skill is handling chance and uncapped upside, not deterministic optimisation, so expect many small losses and a few huge wins.

Variants: Bezos's business score is 500 in one telling and a thousand in another. One telling ties it to Annie Duke's Thinking in Bets and adds a precondition: first avoid bankruptcy, because with a cushion you can afford to be much riskier elsewhere.

Sources (4)

Buyers never buy the house they asked for

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Property websites, like dating sites, assume people know what they want at the start. Rightmove makes you choose house or flat, buy or rent, location, then price, in that order: elimination by aspects. But any estate agent will tell you that buyers arrive with a list of criteria and buy a house that meets few or none of them, because searching is how you refine your preferences. When David Ogilvy retired, he crossed the Atlantic by ship to buy a house in Paris, which sold in the meantime. The agent took him deep into the countryside and sold him a 14th-century château with dozens of bedrooms, asking not just what this man wanted but what he could sell him that nobody else would buy.

“You use the process of searching to refine your preferences.”

The point: Preferences form during search, so choice systems that demand fixed criteria up front filter out what people would have chosen.

Variants: One telling adds that a really good flat beats a house, which a fixed search order never lets you discover.

Sources (3)

Good rationale, bad outcome, you are safe

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Institutions judge decisions by the quality of the reasoning, not the outcome. Do something with a bad outcome but a good rationale and your career risk is very low; the failure gets blamed on something else. Do something with a good outcome but a poor rationale and you get little credit, unless you are an entrepreneur, in which case you keep the money. Poor rationale and bad outcome and you are toast. So you can make a brilliantly rational case for something boring and pointless and keep your job, while an imaginative move that goes slightly wrong leaves you exposed. That is fundamentally un-Darwinian: evolution does not care why a mutation occurred, only what it does. Fear of blame is a more potent force than fear of regret.

“If you do something that has a bad outcome but a good rationale, your career risk is very, very low.”

The point: Rewarding defensible reasoning over results steers organisations towards what can be explained and quantified and away from intuitive ideas that would work.

Variants: One telling contrasts institutions with consumers, who try to avoid regret and can use second-order cues like brand, while employees optimise their justification.

Sources (3)

I want a slow AI

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Rory's worry about AI is not that it is bad but that it is too fast. Tech assumes everything must be instantaneous, yet decisions about holidays, houses and partners are made sequentially and iteratively: we think we know what we want, but we discover it by exploring. A photo and a few lines on a dating app can help eliminate but not select. So he asks whether we need slow AI, slow Tinder and slow Rightmove. Planning a holiday, he would tell an AI he is vaguely interested in Greece in 2026 and have it send him something interesting every couple of days for months. He treats AI like a satnav: sometimes clever, sometimes stupid, with a human needed to tell which.

“My problem with AI is not actually the fact that it is bad, it is that it is too fast.”

The point: Where preferences are discovered through exploration, a slow, drip-fed search can produce better choices than an instant filtered answer.

Sources (3)

Ignoring the satnav on the way to the airport

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Rory follows his satnav on the way home but ignores it on the way to the airport. The satnav gives the fastest route on average; it does not understand variance. The motorway has the better average but a far more extreme variance: if a lorry jackknifes at Clacket Lane or the M25 locks up, he is stuck all morning and misses his plane. So he takes A-roads that are always about 20 minutes slower but never an hour slower. They also give him optionality: he can turn off and try other routes. When the cost of failure is catastrophic, you must care about the variance as well as the average. Variance reduction is a strategy, just as speed is.

“Variance reduction is a strategy just as speed is a strategy.”

The point: When failure is catastrophic, choose the option with lower variance and more escape routes over the one with the best average.

Variants: One telling widens it to ergodicity: in a non-ergodic world much behaviour economists call irrational is a heuristic for minimising downside, which also explains food sharing, where a steady supply mattered more for survival than more food on average.

Sources (3)

Marketing is a casino with good odds

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After 35 years in the business, Rory describes marketing honestly as a casino, but an unusual one: by and large you come out richer than you went in, and not many people leave the marketing casino worse off. Finance dislikes it because nobody can say what you will win on any single hand. Citing Nassim Taleb, he says marketing is fat-tailed: part of what you are doing is trying to get very lucky. People from tech have tried to make it deterministic, the mistake physics made with Laplace's demon and abandoned long ago. The right question is whether, in aggregate, doing more of it leaves you better off. A business that only does yesterday's work more efficiently has no way of getting lucky.

“If you want to get lucky, at some point you've got to walk into a casino. You've just got to choose the right one.”

The point: Judge probabilistic activities in aggregate rather than demanding proof for every bet, or you eliminate the upside.

Sources (3)

Phone only, post only or both, the BT response test

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Around 1991, Ogilvy wrote to BT customers offering network services such as call waiting for a few pounds a month, with replies by free post or phone. A client asked why a phone company was letting people reply by post, and wanted to drop it. Ogilvy insisted on a test: three randomised cells of 50,000. Phone only got about 2 per cent response. Post only got about 5 per cent. A choice of both got about 7 per cent, nearly the sum. To an economist a two-minute ordering step should not change demand, yet the main determinant of buying was not the product or the price but how you could respond. One unremoved psychological hurdle can doom a brilliant business.

“The primary determinant of whether you bought this product or not wasn't what the product was or how much it cost, it was how you could respond.”

The point: The means of responding can matter more than the product or price, so every channel you remove loses people and every one you add gains some.

Variants: One telling puts post only at 4 per cent and both at 6; Rory then suggested adding fax for another half to one per cent, and says catalogues should print the order number on every page.

Sources (3)

The can of beans on the jogger's head

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Rory dismissed drone delivery as technology in search of an application until he met Bobby Healy, who runs Manna in Dublin. Manna takes a few parking spaces on a suburban shopping-centre roof; shops downstairs load orders, and drones fly about two miles in a couple of minutes and lower parcels into customers' gardens, often onto the trampoline. Each delivery costs about 10p. Every drone takes moped journeys off the road, so moped accidents that would have happened don't, but nobody reports accidents that didn't happen. Healy is paranoid for good reason: the second a can of beans lands on a jogger, or a falling tin mildly hurts someone's dog, he is on the front page of the Irish Times.

“We don't see the accidents that don't happen.”

The point: The harms a new technology prevents are invisible non-events while its rare novel harms are vivid news, so judgements of risk are skewed against innovation.

Variants: The cost is 8p or 10p and the offending tin varies: baked beans on a dog, beans on a jogger, Whiskas on a pug. One telling cites about 14 moped accidents avoided in 100,000 deliveries.

Sources (3)

Why teenagers go to parties

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When his daughters were teenagers Rory had to collect them from Saturday parties, and he came to see what they were doing: FOMO is opportunity maximisation. Teenagers don't have a party strategy or do a cost-benefit analysis for each party. They simply know that if you never go, you'll never get lucky, whether romantically, with a better invitation, or by meeting someone whose dad works where you want to work. In Taleb's terms, you increase your surface area of exposure to positive optionality. That is why finance people are wrong to cancel staff and client entertainment after a bad month: social activity is exactly the fat-tailed stuff where you meet someone who changes things.

“If you don't go to parties, you'll never get lucky.”

The point: Where payoffs are large and unpredictable, exposure to chance is a strategy in itself, so cutting unmeasurable activity removes the chance of big wins.

Variants: One telling draws the parallel with random bees that widen a hive's exposure to upside, and links it to exploration in marketing.

Sources (3)

AI should show you five toasters, not the perfect one

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AI enthusiasts imagine you will ask for a toaster or a skiing holiday and get the perfect one. People don't decide like that. Estate agents know you never show people one house: we can't choose without a frame of reference, because we can only like something if we choose it in preference to something else. Rory would want at least three to five options: four toasters with different strengths and weaknesses and a fifth wild card, perhaps an air fryer. Google's I'm Feeling Lucky button is a clue: almost nobody ever clicks it, yet removing it slightly reduced Google's appeal.

“Estate agents know you never show people one house.”

The point: Choice needs comparison, so tools that return a single optimal answer misunderstand how people decide; show several options and a wild card.

Sources (2)

Allow 28 days for delivery

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David Ogilvy said aspiring copywriters should start in direct response, because you learn what works and what not to leave out. If an off-the-page ad for a clock radio in 1984 did not say somewhere, usually in the coupon, that the product would arrive within 28 days, you would probably halve the orders, because you had introduced uncertainty around the order. Mainstream advertising misses this. Persuasion can change minds, but very close to the point of purchase something else happens mentally: to make people act, you need far more certainty and rational reassurance than a poster or TV ad can give.

“You'd probably halve the number of people ordering because you've now created uncertainty.”

The point: At the moment of action, removing a small uncertainty matters more than emotional appeal.

Variants: One telling frames it within Les Binet's finding that rational messaging wins only for short-term direct response.

Sources (2)

Ask your customers a favour

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Strangely, we like people more not only when they do us favours but when we do favours for them. Rory calls asking customers a favour one of the most underused tricks in business. He told an airline: if one flight is overbooked and the next is half empty, ring a few passengers and say there is no obligation, you are already booked, but it would help us if you switched. The ones who oblige will like the airline more as a consequence. An economist would insist on a bribery mechanism. The same idea might help the police: sometimes ask a miscreant 'can you do me a favour?' instead of telling him off.

“Weirdly, we like people more when we've done a favour for them.”

The point: Asking for help, rather than paying for it, can change behaviour cheaply and build attachment rather than spending goodwill.

Sources (2)

Chains don't raise the ceiling, they raise the floor

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Rory is an unfashionable, passionate defender of chains such as Starbucks, Costa, easyJet, Travelodge, Premier Inn and Holiday Inn Express, what he calls satisficer brands: pretty good quality, very good value. Starbucks won't give you the best coffee of your life, but it killed off the terrible end of the market. Try staying in a British hotel in the 1970s: perhaps 30 per cent were simply appalling, and booking one was a gamble. Now you can't survive being bad, and any rival has to beat Starbucks. He recently had a coffee at B&Q in Tunbridge Wells better than he'd have got at the Ritz in 1984. They don't raise the ceiling; they massively raise the floor, and the good independents survive.

“They don't necessarily raise the ceiling but they massively raise the floor.”

The point: Eliminating terrible outcomes across a category is often worth more to people than raising the best possible one.

Variants: One telling extends it to AI in medicine: even a checklist or a good list of questions could stop idiotic errors and lift doctors to at least a pretty good average.

Sources (2)

Doctors over-treat because doing nothing gets you sued

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Defensive decision-making is not confined to business. Doctors are much happier referring someone to a consultant for tests or exploratory surgery than leaving them to get better on their own, even when the statistics say no intervention is probably the best bet. They instinctively know they can be sued for doing nothing, but nobody sues them for doing something, so they are biased towards over-intervention in case you are the one-in-a-hundred patient whose 'nothing' turns out to be serious. Rory cites a figure that around 35 per cent of people in French hospitals are there mainly because of over-medication, adding that it helps that the French are a nation of hypochondriacs.

“You can get sued for doing nothing, but it won't be you who gets sued if you do something.”

The point: When blame attaches to inaction but not to action, professionals choose visible activity over the best outcome.

Sources (2)

If you've never missed a flight

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Rory quotes the old phrase: if you have never missed a flight, you have spent too much of your life at airports. Likewise, if you have never made a mistake, you have almost certainly been far too cautious in what you do. If you are experimenting properly, you will fail occasionally; mistakes are the price of an appropriate level of risk. Yet business has created such a risk-averse idea of success that occasional failure, the necessary cost of experimentation, is treated as unacceptable. A record without any failures is a sign of excessive caution, not of good judgement.

“If you've never missed a flight, you've spent too much of your life at airports.”

The point: A zero failure rate means you are paying too much for safety; some visible failure is the price of the right level of risk.

Sources (2)

Never open a fish restaurant away from the sea

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Rory would never open a fish restaurant unless it was by the sea, because in any party of six there is always one person who doesn't feel like fish, and they veto the whole group. Pizza succeeds not only because people love it but because very few people hate it. Almost nothing on McDonald's menu is polarising, whereas KFC, with chicken on the bone, is more authentic fast food but harder to get a large party to agree on. Dave Trott argued Budweiser is America's top beer because it is everybody's second favourite: host a boxing night and you buy your own favourite, plus a case of Bud for everyone else, because nobody hates it.

“One of the reasons for the success of pizza isn't necessarily that everybody loves it, it's that very few people hate it.”

The point: Group choices are decided by vetoes, so being nobody's least favourite can beat being some people's favourite.

Sources (2)

Nobody walks into World of Jam overwhelmed

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The famous jam study behind the paradox of choice, in which more people bought from a choice of seven jams than of 27, is often cited in the replication crisis. Rory says you would not expect it to replicate. In the original, shoppers were in a supermarket, ambushed by a jam salesman, and had not intended to buy jam at all. If you have driven 15 miles to a shop called World of Jam, you will not walk in and say there is just too much choice. At IKEA you have mentally prepared for it. He doesn't mind the failures to replicate: all he needs to know is that choice design affects whether people choose at all.

“If you've driven 15 miles to visit a shop called World of Jam, you're not going to say there's just too much choice.”

The point: Whether more choice helps or hurts depends on context and intent, so the design of a choice must fit the situation people are in.

Variants: The drive is 15 miles in one telling and 27 miles round the North Circular in another.

Sources (2)

Range anxiety is an American import

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Rory changed his mind about electric cars. Americans express range anxiety perfectly rationally, but the UK is not the US. Britain has about 8,500 petrol stations for some 60 million people. The US, with several times the population, has not five times as many stations but well over 100,000, because American stations must serve a geography, not a population. Apart from the north of Scotland and sparse rural areas, British stations serve people, so the UK needs comparatively few chargers to replicate its refuelling network. We imported the worry, like some culture-war politics, because we share a language and media with a huge, partly empty country.

“You need them to serve a geography, not a population.”

The point: A fear that is rational in one context may be irrelevant in another, so check whether the underlying constraint applies locally before importing it.

Variants: The US figure is given as 116,000 stations in one telling and 165,000 in another. One telling adds that the Netherlands is even easier.

Sources (2)

Sell solar panels one at a time

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Solar panel engineers deserve huge credit for gains in efficiency, cost and weight, but they missed a psychological variable: they put it on the roof. Domestic solar is still sold as one big, irreversible job covering the roof, costing $30,000 or 25,000 euros, with a small chance of disaster: the energy company won't credit you, the roof sags, or some hideous problem appears. People hate irreversible upfront decisions like that, especially on houses half of them plan to sell within five years. Rory's fix is to let people buy one panel for about 2,000 euros, see it working, then add another, or put a panel in the garden or on a caravan, much as Cialdini's foot-in-the-door experiment would suggest.

“Going from naught to 12 panels or 20 panels all in one go is just something we psychologically absolutely hate to do.”

The point: Breaking a large, irreversible commitment into small reversible steps unlocks adoption that one big ask blocks.

Sources (2)

Skeleton gloves that make workers feel vulnerable

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Protective equipment tends to trigger an equal and opposite psychological reaction: boxers fight more dangerously in headgear, and wearing seat belts makes people drive slightly more dangerously. So for factory safety in sawmills, Rory's colleagues redesigned the protective gear, printing it with skeletons and brains so that workers felt vulnerable while still being protected. The effect was small with circular saws, but with hand saws feelings of vulnerability rose by about 20 per cent, and with a Stanley knife by about 40 per cent. No media budget was required. Design has to manage what people are conscious of at the moment they act.

“Wearing seat belts makes you drive slightly more dangerously.”

The point: Protection invites risk compensation, so safety design should keep the danger salient rather than only reduce it.

Variants: One telling uses it to argue that agencies, still behaving as if paid on media commission, ignore the great majority of problems where insight plus creativity could help.

Sources (2)

Starbucks has 85,000 drinks, stage the choice

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Starbucks has something like 80,000 to 85,000 possible drinks. Presented as a numbered Chinese-restaurant menu, it would be a sheet eight inches thick and you would come back three days later asking for number 23,473. Instead the choice happens in stages: hot or cold, milky or not, big or small, eliminating by attribute until you reach something tolerably close. Rory's lesson: don't reduce choice, redesign it. With British Airways he found that listing all 29 destinations in a winter sale fails, because getting you and your partner to agree on one of 29 cities is never going to happen; the next test partitions the sale into skiing, city breaks and so on.

“Don't reduce choice, redesign the choice.”

The point: Breaking a big choice into stages makes it manageable without removing options.

Variants: In another telling Rory recommends the flat white to someone baffled by Starbucks: a good fallback default because there are no follow-up questions, not even size.

Sources (2)

Sully landed on the Hudson by looking out of the window

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Offered a landing at Teterboro, Captain Chesley Sullenberger replied within seconds: I can't make it, you'll find us in the Hudson. The rational method would be to take altitude, speed, distance and rate of descent and solve a series of equations, impossible in the time available. Instead, as an amateur glider pilot, he used a simple heuristic: put the plane in its lowest rate of descent and look out of the window. Every point on the ground that is moving down in your field of vision you can reach; every point moving up you cannot. One piece of proxy data stood in for eight bits of actual data. He chose the river, and raised the nose at the end as glider pilots do.

“He uses one piece of proxy data to stand in for eight bits of actual data.”

The point: Under time pressure, a simple perceptual heuristic drawn from real expertise can beat the notionally rational calculation.

Variants: The time he had is about 15 seconds in one telling and about four in another.

Sources (2)

The eBay seller with 95 per cent approval

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If we were logical, an eBay seller with a 95 per cent approval rating would sell for about 5 per cent less than one with 100 per cent. In fact a seller at 90 or 95 per cent sells for about a third of the price, or cannot sell at all; below about 98 per cent people won't buy. One dodgy detail, bad grammar in the listing or two recent complaints, is enough. A seller with 10,000 sales at 100 per cent will not throw away five years of reputation to sell you a fake. That, Rory argues, is what brands are: not proof a product is better, but a reliable mark of low downside risk, because someone with a reputation has more to lose.

“People pay a premium for brands not because they think brands are better but because they think they're less likely to be shite.”

The point: Reputation works as collateral, so small signs of risk carry a disproportionate penalty and a known name earns a premium for being less likely to be bad.

Variants: One telling ends at the till: 'I'm paying $200 more for the Samsung.'

Sources (2)

The First World War and the chauffeur's wrong turn

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Rory recommends Brian Klaas's book Fluke. The would-be assassin of Archduke Franz Ferdinand had failed and was sitting outside a café having a coffee when the Archduke's chauffeur took a wrong turn into a one-way street and got stuck right in front of him, in a car that was very difficult to get into reverse. Really trivial events have extraordinary knock-on effects; history is far more random than we realise, partly because we are over-optimised for pattern recognition. Rory says that if he hadn't got ill at one point in the 1990s, nobody would know who he was. The hopeful corollary: if small things have large effects, our power to influence events may be greater than we think.

“Really, really trivial events have extraordinary knock-on effects.”

The point: Chance shapes outcomes far more than we admit, which also means small, cheap actions can have outsized effects.

Variants: One telling arises from Omaze's use of true randomness, noting that genuine randomness often looks less random to us than fake randomness.

Sources (2)

The Japanese trolley in the middle

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Supermarkets used to offer two options: a basket, which was inadequate, and a huge trolley with the capacity of a Mack truck. Many shoppers thought, I'm not shopping for a family of eight, and took a basket, so they bought less. Then stores introduced the small, shallow 'Japanese' trolley as a third option. Faced with three choices, people have a very strong System 1 instinct to pick the one in the middle, the Goldilocks effect, so a trolley became the default and behaviour shifted without a single argument being made. Rory, citing a history of retail in 100 objects, says changes like this, or on-screen ordering in fast-food restaurants, are not incremental: they are 10x moonshots.

“If we're faced with three choices, we tend to default to the one in the middle.”

The point: Adding a middle option moves the default, which can change behaviour more than any persuasion.

Sources (2)

The Letby verdict and knowing what kind of maths to use

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Good mathematicians say what matters most is not being good at maths but knowing what kind of maths to use. Rory's example is the Lucy Letby trial. He is not saying she is innocent, but he does not think the conviction safe: expert medical opinion was not diverse enough, one witness did most of the lifting, nobody with decent statistical chops was involved, and every senior lawyer he has spoken to is uncomfortable. The jury made the right decision on what it was shown, but it was not shown everything. It is Kahneman's 'what you see is all there is': deaths when she was absent were not deemed suspicious precisely because she was absent.

“What makes you a good mathematician isn't being good at maths. It's knowing what kind of maths to use.”

The point: Confident conclusions can rest on the wrong analytical frame and on data nobody thought to ask for, so ask what is missing before trusting a model.

Sources (2)

A business that would rather be certain than get lucky

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Psychology lacks a sense of proportion, Rory says, like poker, where a tell is a tiny thing the signaller is unaware of but the opponent spots. Entrepreneurs wait for big companies to get trapped by their own metrics, leaving market space open. If we demand the ludicrous burden of proof that you may only try something once you can prove it works, a business has effectively decided that it would rather be certain than get lucky.

“Whatever I want to be in the future, I'd rather be certain than get lucky.”

The point: Demanding proof before experimenting forfeits the upside of fortunate discoveries.

Sources (1)

A café offers more optionality than a restaurant

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Rory and his wife have absorbed Nassim Taleb's philosophy of optionality into daily decisions: when two choices are about equal, pick the one with more options. Take the back road to the airport: slower, but if something goes wrong there are alternatives, whereas if the M25 gridlocks you are dead. Even choosing where to eat: in a café you sit down, order a coffee and then decide whether to eat; in a restaurant, once seated, you are committed.

“Option B gives us more optionality.”

The point: When choices look equal, prefer the one that keeps future options open.

Sources (1)

A financial adviser is a personal trainer

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Almost all investment advice is sold by comparison with someone else's. Rory tells financial advisers their real value is like a personal trainer's: not what they do, but the fact that they make you do it. You are better off saving and investing suboptimally but consistently and non-catastrophically than obsessing over optimisation and doing less. As he puts it: there's good sex and bad sex, but getting some is about 90% of the value.

“Your real value is rather like a personal trainer. It's not what you do, it's the fact that you make me do it.”

The point: Consistency beats optimisation, so the value of advice lies in behaviour change, not superior returns.

Sources (1)

A house is the right-sized jackpot

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Rory thinks US lotteries are slightly insane because the jackpots are so disproportionate: winning 200 million dollars when you've been living in a trailer park is almost problematic. Winning a house seems about right in terms of changing someone's life permanently, one hopes for the better. He also suspects the model suits smaller countries, Ireland or Denmark, where a house prize feels relevant to everyone, more than a vast country where a New Yorker would win a house in Arizona.

“Winning a house seems to be about right in terms of changing someone's life.”

The point: Prizes are most meaningful when scaled to transform a life rather than overwhelm it.

Sources (1)

A Tube strike that improved commutes

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A strike that closed several Tube lines for about five days forced commuters to try new routes. Afterwards about 5 percent kept travelling the way the strike had forced them to try. Researchers concluded you could make the network more efficient by closing parts of it at random every now and then to force wider experimentation. Similarly, in 2018 suggesting a video call instead of flying to Frankfurt made you look a weirdo; Covid normalised it. If you revert after a shock, do it one thing at a time.

“If you discover things you like about a new equilibrium, don't throw them away and revert to the status quo.”

The point: Habit and social equilibria trap people in suboptimal routines that only forced experiments break.

Sources (1)

A view of the canyon or the car park?

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Rory argues online retailers should let customers choose their courier: people hate some couriers, if they choose and it goes wrong they blame the courier rather than you, and people living alone may prefer Royal Mail to strangers in vans learning where they live. People are simply happier with anything they get to choose. Asked whether you want the window or the wall, you are happier at the window than if seated there unasked. At a cafe overlooking the Grand Canyon, he asked for a window seat and was asked, without irony, whether he wanted a view of the canyon or the car park; the waitress was sick of the canyon.

“People are just happier with anything they get to choose.”

The point: Offering a choice raises satisfaction and shifts blame, even when the outcome is the same.

Sources (1)

Adaptive preference formation and the fox and the grapes

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Like Aesop's fox deciding the grapes were sour, when we are forced into B over A we build a narrative in which we preferred B anyway, to minimise regret. Design choices so each option has upsides and downsides and nearly everyone can be happy with what they got. Make B plainly worse with no countervailing story and half the people are angry. You can create net utility out of nowhere: you can despise that as a cheap trick, or think it rather wonderful and use it more.

“You're constructing value out of absolutely nothing.”

The point: Multivariate choices let people reframe compromises as preferences, minimising regret at no cost.

Sources (1)

Airlines killing themselves through choice architecture

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Flight search makes price the only salient attribute. An airline offering more legroom for 10 per cent more would drop off page one and go bankrupt, though many would prefer that trade-off. Kahneman's point: nothing is as important as you think it is while you are thinking about it. Rory told British Airways that the noon flight had a new 150-million-pound 787 Dreamliner, yet you only discover it after several clicks; Wi-Fi is not visible either. He suggests multi-dimensional choices: two kids for one on one flight, free Wi-Fi on another, a premium economy upgrade on a third.

“Nothing is as important as you think it is while you're thinking about it.”

The point: Whatever is made salient becomes the basis of choice, so showing only price drives a race to the bottom.

Sources (1)

Always invert, Norfolk or Acton?

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Two teachers, friends of a friend, both about 58, had pooled their flats into a house in Acton. He, from Norfolk, wanted to sell for seven figures, buy a lovely Norfolk house for about £450,000, teach part-time and travel. She could not face leaving London. Rory borrowed Warren Buffett's advice: always invert. Imagine a Norfolk couple in a half-million-pound house who win a million on the lottery and say 'brilliant, we can move to a smaller house in Acton and work five more years'. Nobody would. If the inverse is ridiculous, that helps decide.

“If the inverse of what you're doing is ridiculous, that might help you make the decision.”

The point: Testing the reverse of a choice exposes status-quo bias that direct deliberation hides.

Sources (1)

Barbell budgets and separate metrics

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Rory likens the bee split to Nassim Taleb's barbell strategy: put most of your resources into very low-risk activity so you never go bust, ignore the middle, and put a small share into bets with a finite, knowable downside and a potentially huge upside. Spend 10 to 20 per cent of marketing time and budget this way. Losses on the risky side should be met with equanimity, like backing several shows knowing one in six may be a Hamilton. Uniform efficiency metrics and bonuses turn people into cowards.

“Having efficiency metrics across the board turns people into cowards.”

The point: Exploit asymmetric bets by ring-fencing a small budget judged by different rules.

Sources (1)

Big data assumes the group average is the individual's average

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Another way big data misleads is by assuming ergodicity. Taking snapshots and averaging them, we assume the collective, simultaneous average of a group's behaviour represents what each person does on average over time. That isn't a true assumption, and conclusions built on it can be completely wrong.

The point: Ensemble averages and time averages differ, so snapshot data can misdescribe individual behaviour.

Sources (1)

BlaBlaCar and the Hitcher problem

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BlaBlaCar, the car-sharing service, came to Ogilvy. Rory's diagnosis: most people think it is a brilliant idea, with someone sharing your petrol costs and a journey cheaper than train or bus. Everything about it is brilliant except for the 2 per cent of 'what's the worst that can happen?', which anyone who has seen the film The Hitcher is aware of. That small tail risk, not the average benefit, is the obstacle to solve.

The point: Adoption is often blocked by a vivid worst case, so marketing should address the tail risk, not the average benefit.

Sources (1)

Bob Dylan, people do what is convenient, then repent

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Rory doubts that persuasion is very persuasive. He cites a character in Bob Dylan's song Brownsville Girl who observes that people do not act on their stated beliefs; they take the convenient option and feel sorry afterwards. So instead of starting from how to persuade people, an advertiser should ask what would make the product easier or more pleasant to buy.

The point: Behaviour follows convenience more than conviction, so reducing friction often beats arguing.

Sources (1)

Buy the house other people hate

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You don't want a house, or a spouse, that appeals to everybody. The shrewd question isn't 'what's my perfect house?' but 'what do other people hate that I don't mind?' For Rory: next to a railway (he loves trains, they stop at midnight, he never sleeps before then); a bad school catchment, since his kids have left school; next to a pub, which his in-laws foolishly rejected, though it's the best garden in the world, a beer garden. If you're deaf, buy under the Heathrow flight path. Estate agents should have to list downsides.

“The shrewd way to choose a house is not to say what's my perfect house, it's to say what do other people hate that I don't mind.”

The point: Value lies in features the crowd overprices as negatives but that do not bother you.

Sources (1)

Buy the right toothpaste without a 17-page deck

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When someone claimed B2B marketing is rational rather than emotional, someone else, not Rory though he wishes it had been, made the fair point that B2B is massively emotional. In consumer marketing, if you buy the wrong brand of toothpaste you do not lose your job. In B2B you can buy the right brand of toothpaste, but if you have not got a 17-page PowerPoint deck explaining why, you can still lose your job. Businesses optimise for defensive decision-making and justification of process, not quality of outcome.

“If you haven't got a 17-page PowerPoint deck explaining why you bought that toothpaste, you can still lose your job.”

The point: Business buying is driven by fear of blame, so justification matters more than outcome.

Sources (1)

Buying a car in Jamaica

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Variance reduction explains why people copy each other. If you had to move to Jamaica tomorrow and buy a car without knowing anything, the single best question to ask is probably 'what's the best-selling car in Jamaica?'. It may not be exactly the car you want, but it will be a pretty good car to have in Jamaica: not necessarily the best, but not awful. The same instinct explains herding and habit.

“The best-selling car in Jamaica is going to be a pretty good car to have in Jamaica.”

The point: Copying the majority is a rational way to avoid disaster when you lack information.

Sources (1)

Certainty premium and the branded television

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Rory poses two choices: a 50% chance of $500,000 or a 51% chance of $470,000, where nobody gives up $30,000 for an extra 1%; and a 99% chance of $500,000 or a certain $470,000, where nearly everyone takes the certainty. A classical economist says both should be answered the same way. He asks whether brand premiums work like this: a Chinese television at $299 with, say, a 4% chance of being bad versus an otherwise identical Philips with a 0.1% chance. Logically you would accept a 4% discount; in practice people pay far more for near-certainty.

“You pay a very, very high and disproportionate premium for certainty.”

The point: Brands command premiums because people overpay to remove uncertainty, not in proportion to the actual risk.

Sources (1)

Check the complainer's feed

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Rory's personal heuristic when someone rants at him on Twitter: look at what else they post. If the feed is varied, a kitten falling off a skateboard, a holiday in Tenerife, the odd gripe, this is a normal person and the complaint deserves to be taken seriously. If every post is about one narrow issue, he ignores them. He cites the eminent philosopher A.C. Grayling, who seemed to spend three years tweeting nothing but opposition to Brexit, which compiled end to end would look mad.

The point: Judge a complaint by the complainer's base rate of complaining.

Sources (1)

Choosing a partner who won't set fire to your clothes

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Avoiding catastrophe is probably true in marriage too, Rory says, but we never admit it. Nobody says they chose their wife because she is not totally bonkers; we have to pretend our decisions are optimising ones. Married 36 years and insisting the point is not unromantic, he notes that one important characteristic of a life partner is that they are unlikely to set fire to your clothes. We never mention it, because we always accentuate the positive.

“One important characteristic of a life partner should be they're unlikely to set fire to your clothes.”

The point: People make satisficing, risk-avoiding choices but describe them as optimising ones.

Sources (1)

Dishwasher knives and marble bathroom floors

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At a health and safety conference, a man told Rory the UK had 138 workplace fatalities last year but 25,000 accidental deaths outside work; health and safety had become a way to avoid being sued, not to avoid death. Rory asked about two things he never understood: marble bathroom floors in five-star hotels, and dishwashers where people put knives pointing upwards, so tripping over the open door, as Rory has, impales you. The man checked: eight dishwasher-related deaths last year, nearly 5 per cent of all workplace fatalities.

“It's become a way for companies to avoid being sued, not to actually avoid death.”

The point: Safety effort follows liability and attention, not where people actually die.

Sources (1)

Drinks parties beat dinner parties on optionality

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Taleb taught Rory the difference between an option and an obligation. It's the difference between a dinner party and a drinks party. Drinks parties are rubbish compared with dinner parties, with one exception: if you don't feel like it and don't turn up, nobody asks where the hell you were. His wife gets furious when he says let's leave this car here and mine there, 'because now we've got more optionality'. Optimising for optionality rather than optimality requires a different approach.

“Optimising for optionality rather than optimality just requires a different approach.”

The point: Keeping options open has value that optimisers ignore, especially under uncertainty.

Sources (1)

Driverless cars may need to be irrational

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Some scientists think driverless cars will not work unless they learn to be irrational. If they reliably stop whenever a pedestrian steps out, crossings become pointless and jaywalkers can stride into the road, forcing sudden stops that discomfort the passengers. To prevent this, the cars may have to learn to be 'angry' and occasionally, maliciously, fail to stop in time and clip the pedestrian on the shins.

“If you are wholly predictable, people learn to hack you.”

The point: Perfectly predictable behaviour invites exploitation, so a little irrationality can be protective.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Enjoy being tennis player number 3,420

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Rory distinguishes activities people intrinsically enjoy from careers in them. There is room for about a hundred rich tennis players in the world and statistically you won't be one. But if you love tennis and enjoy getting to number 3,420, that is fantastic; same with playing an instrument. What worries him is people fixated on a commonly held end goal where the cost of entry outweighs the prize and the odds of success are appalling.

“There's room for a hundred rich tennis players in the world. You're not going to be one of them statistically.”

The point: Pursue crowded winner-takes-all goals only if the activity itself is rewarding.

Sources (1)

Freedom to fail small

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Rory endorses the freedom to fail, with a caveat: it must be freedom to fail small. The damage from a small failure is mostly reputational, not financial: 'Dave's not really a safe pair of hands', even when the cost was negligible. If you manage Tide in the US, with a huge market share, any large-scale failure should be viewed with terror and paranoia is justified. But Jeff Bezos's two-way door experiments, where you poke through the door and walk back if early results disappoint, never imperil the wider brand. That freedom is fundamental.

“Freedom to fail small is a really important freedom.”

The point: Make experiments small and reversible so failure costs reputation, not the business, and then protect people from that reputational cost.

Sources (1)

Gosset at Guinness, certainty should depend on the stakes

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William Sealy Gosset, who devised Student's t-distribution, worked at Guinness and had to produce beer, not citations. When R. A. Fisher declared p below 0.05 good enough, Gosset objected that the certainty you need depends on circumstances: betting the farm demands more, while deciding whether something merits an experiment demands far less. Rory applies this to masks: uncertainties remain, but a mask seems far likelier to reduce transmission than increase it, acts as a reminder to distance, and marks non-wearers as norm-breakers to avoid. With a trivial downside, give it the benefit of the doubt.

“The upside and downside consequences should affect the degree of certainty you require.”

The point: Evidence thresholds should scale with the cost of being wrong, not follow a single arbitrary cut-off.

Sources (1)

Graduate jobs, houses and dating share one bad filter

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Graduate recruitment, property and dating share a flaw. Each uses a crude first filter: a 2:1 from a Russell Group university, a price ceiling, a still photo with some text. These are necessary-but-not-sufficient proxies; Rory's astrophysicist brother is bad at chess. Some actresses couldn't be models because their appeal is in movement and wit. Pre-internet choice was messy, meeting someone drunk at a rugby club or seeing a sign down a lane. Now everyone filters the same way in the same order, so demand piles onto whoever passes, and everyone else goes to waste.

“If everybody chooses according to the same criteria it's a much less efficient market clearing mechanism than if everybody's a bit messy.”

The point: Uniform filtering by poor proxies creates hyper-competition for a few and wastes everyone else.

Sources (1)

Hacking robotaxis with a traffic cone

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Rory is proud that five years earlier he predicted people would hack self-driving cars, for instance with a pattern of weighted balloons on the road. Sure enough, in San Francisco people discovered that putting a cone on the bonnet of an autonomous taxi left it immobilised in complete confusion. His new car can set cruise control relative to the speed limit by reading road signs, which suggests residents will put up fake 7mph signs so cars crawl down their street.

“People will hack self-driving cars.”

The point: Rule-following machines are predictable, and predictable systems invite people to game them.

Sources (1)

Half my advertising is wasted is a thin-tailed idea

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Rory quotes Mark Ritson: the average is the enemy of the marketer, because averaging loses what is significant. The old line that half the money spent on advertising is wasted, but I do not know which half, is a thin-tailed expression of the problem. The reality is that about 10 per cent of creative work delivers roughly 95 per cent of the value, and you cannot know in advance which. Nassim Taleb told him over dinner in Amsterdam that marketing is fat-tailed.

“10% of what you do in creative advertising delivers about 95% of the value.”

The point: Marketing's job is hunting for rare outlier successes, not optimising averages by a few per cent.

Sources (1)

His brother would starve choosing a sofa at IKEA

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Rory says good mathematicians often have broad interests, but are prone to paranoia, the over-energised form of pattern recognition that sees patterns where none exist. And mathematical ability can be disabling: his family always said that if you took his brother into IKEA and said he could not leave until he had chosen a sofa, he would starve to death, because there is no definitive answer and no algorithm to settle it. Most normal people think: it's IKEA, so it won't be rubbish, and I like that one.

“If you took him into a branch of IKEA and said you can't leave until you've chosen a sofa, he'd starve to death.”

The point: Optimising minds can be paralysed where satisficing heuristics let ordinary people decide easily.

Sources (1)

Holidays with a hire car are better

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Rory admits his wife gets annoyed when he applies Taleb logic to family decisions. Over 36 years, he argues, holidays where they rented a car have been better than ones where they didn't, because a car gives you optionality. If the hotel is a bit meh or in a poor area, you can simply drive off and find a beach somewhere else every day.

“You have more optionality.”

The point: Paying for options limits the downside of a bad outcome and opens chances of a better one.

Sources (1)

I'd rather my daughters smoked than cycled in London

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Rory enjoys testing policy positions that are easy to justify but which everyone finds repugnant, since some areas treat any utilitarian approach with visceral horror. He says he would prefer his daughters took up smoking than took up cycling in London, and everyone vomits a little in their mouth. His argument: if they die at 68 it is a bummer, but if they die at 23 it is a complete tragedy.

“If they die at 68 it's a bummer, but if they die at 23 it's a complete tragedy.”

The point: When a risk strikes matters as much as how big it is, yet health debate rarely weighs the timing.

Sources (1)

If the doctor obeys the AI, nobody can blame him

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What worries Rory about AI is the institutional setting. Humans are good at saying 'I see what the AI is trying to do, but this case is different.' But picture a doctor whose AI says operate when he thinks not. Now there's an asymmetry: obey the recommendation and he can't be sued or blamed; deviate and he's exposed to blame and litigation. The left hemisphere optimises for a narrow context, the right weighs the wider one, and an institution that punishes deviation silences the right.

“If I obey what the AI recommends I can't be sued and I can't be blamed.”

The point: When following the machine protects the decision-maker, institutions lose the human judgement that catches special cases.

Sources (1)

If we bought cars like houses, we would all drive Bugattis

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Rory says property created a collective insanity. People framed rent as throwing money away and a mortgage as saving, though for 15 years you mostly pay interest. For 25 years, buyers added their maximum deposit to their maximum borrowing and searched Rightmove at the top of their affordability. Nobody buys anything else that way; if we bought cars like that, we would all drive Bugatti Veyrons. Normally we think: if I buy that, I can't do this. Fear of missing out ignored opportunity cost, the same psychology as 2008.

“If we all bought cars like that, you'd all be driving around in a Bugatti Veyron.”

The point: Treating one asset class as sacred suspends normal opportunity-cost reasoning and inflates a bubble.

Sources (1)

If you are wealthy and conventional, what's the point?

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Having described how restaurants herd everyone into the conventional choice, Rory suggests that to be genuinely wealthy a degree of eccentricity is essential. If you are wealthy and conventional, what is the point? You can be conventionally poor; it is not that different. He then warns that artificial intelligence will bring more systems that make decisions for you while assuming they know what you want.

“If you're wealthy and conventional, what's the point?”

The point: Wealth only creates value if you use it to make choices others do not, so resisting default choices matters.

Sources (1)

In a pandemic every question becomes behavioural

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Looking back on 2020, Rory says the pandemic revealed that most businesses, organisations and governments predict future behaviour by taking past behaviour and extrapolating in a straight line. Suddenly that was no longer possible, because optimising on the past became dangerous. More and more questions turned into what on earth people are going to do, rather than assuming they would do a slightly extended version of what they did last time.

“Suddenly during a pandemic every question becomes a behavioural question.”

The point: Straight-line extrapolation from past data fails when context shifts, forcing a return to understanding behaviour.

Sources (1)

Increase your surface area for luck, take the odd Zoom call

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Be careful about planning, Rory says: he never planned to become big on TikTok. Nassim Taleb would say don't pursue a very narrow goal; increase your surface area of exposure to positive optionality. A British entrepreneur's book argues serendipity does not happen by chance: you can act to raise your odds of getting lucky. Take that Zoom call from someone you have never heard of. If you are narrowly focused on what you want to become, that is all you can become, and you will probably fail anyway because many others want it too.

“Take that Zoom call from someone you've never heard of every now and then.”

The point: Broad exposure to chance opportunities beats narrow goal pursuit under uncertainty.

Sources (1)

Is it worth £300 not to be frightened for nine hours?

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Rory knew rationally that flying Malaysia Airlines was as safe as any other airline to the seventh decimal place. Is it irrational to avoid them? He decided it is complicated: even knowing the statistics, on a Malaysia Airlines plane he would be three times as frightened as on British Airways. Is it worth £300 to avoid feeling really frightened for nine hours? Probably yes. You have no control over how the elephant feels.

“Is it worth 300 quid to avoid feeling really frightened for nine hours? Well, probably yes.”

The point: Paying to avoid an irrational feeling can be perfectly rational, because the feeling is real.

Sources (1)

Let me order KFC by Scoville level

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Rory complains that ad agencies confine their creativity to a narrow range of activities. McDonald's or KFC could make a fortune continually experimenting with their on-screen ordering terminals. He goes to KFC because McDonald's is a bit bland, so he wants something hardcore and would like to rank the menu by degree of spiciness, by Scoville level. How choices are highlighted and ordered, not just how many there are, can deliver enormous value.

“I want to be able to rank it by degree of spiciness.”

The point: Choice architecture on ordering screens is a high-value creative opportunity agencies ignore.

Sources (1)

Let people run an EV alongside their old car

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One painful thing about electric cars is that you take delivery on the day you wave goodbye to your petrol car. Rory suggests parallel running or two-week test drives instead of subsidies. Greg Jackson says the worst thing is lending someone an EV for three days, because they hit all the problems without getting over the hump into the benefits. Comfort, quietness and performance once meant Bentley or Aston Martin; now they come at Skoda prices. One-pedal driving is glorious: as Vauxhall used to say, once driven, forever smitten.

“Once driven, forever smitten.”

The point: Trials long enough to get past the learning curve convert people where short trials and subsidies fail.

Sources (1)

Let them pause, not cancel

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Rory's tip: allow people to pause subscriptions. At the moment the choice is binary, keep subscribing or cancel. Psychologically, people who cancel never come back, because they have put your brand into the category of things they no longer have a relationship with, like an ex. Frame it as a pause, and you can win them back.

“If you make them cancel, they've somehow put your brand in that category of things I'm no longer going to have a relationship with. It's like an ex.”

The point: A pause option keeps the relationship alive where cancellation ends it for good.

Sources (1)

Letting your phone drop to 7 per cent is insane

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Studying complexity theory makes you a bit neurotic, Rory says, because you know one small thing going wrong can cascade: for want of a nail, the shoe was lost. Plane crashes and oil rig disasters rarely have one cause; two or three bad things combine unusually and feed back into catastrophe. So when his wife lets her phone battery fall to 7 per cent, he regards it as insane; he gets twitchy at 37 per cent. Many people are like him, and he thinks they are right.

“For want of a nail a shoe was lost.”

The point: In complex systems, small buffers prevent cascading failures, so cheap precautions are rational.

Sources (1)

Life on automatic mode

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Another model of the brain is the digital camera. When you first get one you fiddle with manual override, but soon you realise automatic mode may not be perfect but is always pretty good, and you only switch to manual for fireworks or heavy backlight. Most of the time, for good evolutionary reasons, we seek solutions that are pretty good and definitely not terrible. Maths leads us to define good as the best a thing can be, but the brain's decision algebra also weighs how bad it might be in the worst case.

“It's not perfect, but it's always pretty good.”

The point: People satisfice, optimising against the worst case as much as for the best outcome.

Sources (1)

Like stairlifts, people wish they'd downsized five years earlier

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Most people who get a stairlift wish they had done it five years earlier, Rory says, and most people who downsize wish they had done it five years earlier too. His father was forced to downsize when his property business crashed; a year later he said it was the best thing that had happened, because otherwise he would have been an 87-year-old struggling to maintain a huge house. Rory hopes at 80 not to have all his wealth tied up in where he lives.

“Most people who downsize wish they'd done it five years earlier.”

The point: Fear of change makes people delay moves they later judge to be clearly beneficial.

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Lost in the fog, you follow the path

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Without perfect information, copying everyone else is not a bad policy: if everybody does something, it may not be very good but is unlikely to be terrible. Rory's image: lost in fog on a Brecon Beacons hillside with three feet of visibility, you stumble on a path and follow it. Lots of people walked this way in better light, and it is unlikely 35 people all walked off a cliff. The same instinct makes you feel awful when lured into an empty restaurant in Seville as its only customer.

“It's unlikely that 35 people have all walked straight over a cliff.”

The point: Herd instinct is an intelligent response to uncertainty, not mere irrationality.

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McKinsey's seven per cent versus a butterfly effect

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Rory admits he can be frustrating in meetings because he talks about things others see as irrelevant. Behavioural science intervenes in a complex system without engineering's certainty, but the upside is butterfly effects: tweaking something tiny can produce spectacular results. It is more appealing to hire McKinsey to promise a 7 per cent saving from reorganising the supply chain than someone like Rory, who says you might get nowhere, but if lucky you could spend 20,000 pounds and make 10 million a year more, which his team has done. Love of certainty pushes people towards assuming reward must be proportionate to effort.

“Love of certainty often drives people into the assumption that reward has to be proportionate to expense or effort.”

The point: Preferring predictable modest gains over uncertain large ones leaves the biggest opportunities untried.

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Move to a low-rent jurisdiction, not a low-tax one

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We talk about the rich moving to low-tax jurisdictions, but the best financial move most people could make is to a low-rent, low-property-price jurisdiction. You then put less money into the property market, which is hopelessly illiquid and increasingly dangerous for capital accumulation. If technology lets you live somewhere cheaper, that is more tax-efficient than a pay rise. No need to overcompensate and move to the Outer Hebrides: there is desirable, cheaper property within 60 or 70 miles of London. Silicon Valley grew in California partly because property was cheap.

“Probably the best financial move you might make in life is to move to a low-rent jurisdiction.”

The point: Cutting housing costs is often worth more than higher pay and frees capital for productive uses.

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No group of friends contains a Nando's hater

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Rory enjoys 'anthropological detective work' such as explaining Nando's success. The rational answers, good value and people like chicken, are half true. But perhaps the magic is that there is very little to dislike: in a party of six, the spicy people get spicy food and the bland people get bland, so nobody objects. He also relishes the reported practice of men on dates ordering mild chicken but asking for the extra-hot flag to be put in, to look like a real man.

“Maybe part of it is that no group of people has a Nando's hater in it.”

The point: For group choices, the winning option is the one nobody vetoes, not the one anybody loves most.

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Old Spice needed kill or cure

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Old Spice was a famous brand that was dying. The worst thing to do was an incremental 3% improvement, which would keep it alive below the level worth supporting and merely prolong its demise by seven years. It needed a high-variance, kill-or-cure move. Doctors understand this: with a patient who may die anyway, try anything. But for a tendon operation on Lewis Hamilton or Max Verstappen, that is not the time for experimental surgery.

“With Old Spice you want to do a high-variance thing: kill or cure.”

The point: How much to experiment depends on the asymmetry of upside and downside in your situation.

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On a screen, men order two burgers

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McDonald's found that ordering on a screen changes behaviour. There are certain things people are happy to do as long as they're doing it anonymously. Rory's example: men ordering on a screen will order two burgers, because it isn't embarrassing when you're not doing it face to face.

“It's not embarrassing when you're not doing it face to face.”

The point: Removing social observation unlocks purchases that embarrassment suppresses.

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One variable beat a ten-variable model

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Rory describes Gerd Gigerenzer's take-the-best approach: follow the single variable that correlates best with what you want. With mail-order advertisers, the best predictor of buying was simply how recently someone had last bought, so they mailed recent buyers more. A competing group used an elaborate regression across about ten customer behaviours, and it predicted worse than the simple rule. Adding variables worsens the signal-to-noise ratio, producing rubbish correlations and overfitting.

“The more complex thing was less reliable as a predictor than the simple one.”

The point: Simple heuristics often outpredict complex models because extra variables add noise and overfit.

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Page two of the toaster results

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Rory notes that Amazon and eBay already practise choice reduction by making page two of search results hard to reach. Choosing between 18 or 24 toasters is a tolerable effort; you can decide on colour and a few variables. By page three, having seen 75, you reach paralysis. People like decisions that minimise the risk of regret, and the more options they see, the less confident they are that they will not later regret their choice. The same probably applies to Tinder.

“Your confidence that you've made a decision you're not going to subsequently regret diminishes with profusion of choice.”

The point: Beyond a modest number of options, more choice raises fear of regret and stops people choosing at all.

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Paying for Club Penguin while the kids work in the City

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Subscriptions were pushed by investors and analysts, not consumers. Firms want credit cards rather than direct debits precisely because direct debits are easy to cancel. Now consumers see three-quarters of their salary walk out on payday and are reluctant to take on more. Everyone has been once bitten, twice shy, having discovered they were still paying for Club Penguin while their children were working as stock-market analysts. New entrants such as a third streaming service face a wall.

“They are paying for Club Penguin while their children are working as stock market analysts.”

The point: Subscription fatigue makes new commitments painful, disadvantaging subscription-only entrants.

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People act to minimise fear of regret

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If you want to sum up human behaviour in one simple sentence, Rory says, people act to minimise fear of regret. Make a meal easy to choose and people feel they've made a confident choice, and they're pretty happy; spend the meal wishing you'd ordered something else and it's totally different. He has long told KFC its menu's choice architecture is a mess, whereas McDonald's is structured: a burger, fries, a drink, maybe a side.

“People act to minimise fear of regret.”

The point: Clear choice architecture produces confident choices, and confidence drives satisfaction.

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People want a burger just like the last one

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Rory finds Ray Kroc's remark fascinating: people don't want the best burger in the world, they want one just like the one they had last time. A Darwinian psychologist would agree: we evolved a strong preference for food identical to food we have eaten before, because if we are alive to eat it again, it was probably fine. No market research group would ever ask for really consistent food; everyone says make it better. Hence McDonald's rules like toasting the bun for exactly 72 seconds.

“People don't want the best burger in the world, they want a burger that's just like the one they had last time.”

The point: Consistency is a deeply valued, evolved preference that market research will never surface.

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Phoebus Apollo caught his footing

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Rory thinks religion helped decision-making because it acknowledged that much in life lies beyond our control. In the Iliad, a warrior about to fall catches his footing, and Homer does not say he got lucky; he says Phoebus Apollo pushed him back upright. Attributing luck to the gods meant at least nobody pretended everything was within their control. We were probably more intelligent when we were lazier and admitted how much we did not know.

“At least you weren't pretending that everything that happened was entirely within your control.”

The point: Acknowledging luck guards against the illusion of control that modern management encourages.

Sources (1)

Put the Christmas party budget on red

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Games of chance can be rational: X wouldn't change your life, but 5X would. Around 1994 Rory's team's Christmas party budget was halved to 15,000 pounds, too little for a good party. His proposal, never approved, was to take it to a casino with his friend Tal Adams, a semi-professional poker player, and put it all on red. Win and they'd have the party as planned; lose and they'd pay for the pub themselves but could tell friends forever about losing 15 grand on one spin.

“We can also tell our friends for the rest of our lives about the time we lost 15 grand on a single spin of a roulette wheel.”

The point: When a sum is too small to matter but doubled would, gambling it can be rational, and even losing yields a story.

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Red or white, two drinks you don't like, in a choice of colours

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Wine, by accident, comes in two colours, so a host who buys six bottles of red and six of white is deemed to have offered guests a choice. Serving spirits would mean five bottles, several mixers and three kinds of fruit. Rory cites Kingsley Amis on the three worst words in English, 'red or white', and notes the same trick works for tea or coffee and still or sparkling. Two options tick the box marked 'have offered a choice'.

“You've given them two drinks they don't like very much, but they get to choose the colour.”

The point: A binary option creates the feeling of choice cheaply, which is often all social convention requires.

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Reverse the questions, reverse the decision

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Rory's closing advice for governments, organisations and individuals is to experiment with the frame and narrative through which you view things, try more than one, and question choice architecture. You can arrive at what seems a perfect decision simply because you asked a series of questions in one order; reverse the order and you will arrive at a completely different decision.

“If you reverse the order of those questions you will arrive at a completely different decision.”

The point: Decisions are path-dependent on how the choice is structured, so test alternative structures before trusting the outcome.

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Saab drivers could not explain their range

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Rory once asked a Saab driver the difference between the Saab 901 and the Saab 95. They did not know, though the range was not large. BMW was the opposite: anyone with the most passing knowledge understood the engine-size range perfectly. A clear naming system lets people place each product and choose with confidence.

The point: Legible naming and numbering systems make choice easy; opaque ones undermine sales even for loyal customers.

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Ten mums versus ten engineers buying used cars

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Rory's mother, raised on a farm, knew little about cars but a great deal about people; she could spot an affair at 500 paces. He would love an experiment: give ten people like her 5,000 dollars for a car and ten engineers the same. His mother would judge the seller, using their reputational fragility as a proxy for the car's quality. The engineers would ignore that and inspect the car. He bets the mums would buy fewer terrible cars. He bought his own Lotus from a dealer ten miles away, so he could retaliate reputationally.

“I'm going to optimise for trust.”

The point: Social heuristics about the seller can beat technical analysis of the product at avoiding disasters.

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The actuary father and the tennis academy

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Rory's niece's best friend, a very talented tennis player, was invited to an elite academy. Her father, an actuary, said no: the odds of winning Wimbledon were about 1 in 25,000, while the odds of giving up her youth and getting injured or going nowhere were 50 to 60 per cent. The world's hundredth-best player lives out of a car; only the top ten earn real money. It is worse than before: John McEnroe kept fit by playing tennis, and the 1970s Brazil team smoked at half time. Only golf is rich enough to pay the merely good.

“If you're the world's hundredth best tennis player, you're living out of your car.”

The point: In winner-takes-all fields, the expected cost of trying can outweigh the slim chance of the prize.

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The barbell approach to property

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After Taleb explains the barbell strategy, combining something very safe with something very risky rather than settling for the middle, Rory offers a domestic example. Paul Craven has adopted the barbell for property: instead of a medium-sized house in a medium location, he plans one tiny flat in the centre of London and a house miles away on the coast. Extremes on both ends beat a compromise in the middle.

The point: The barbell works outside finance: two extremes can deliver more than one sensible compromise.

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The barbell household

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For a couple, Rory argues the perfect household may be one where one person has a paid job and the other a variable income. That is what Nassim Taleb would call a barbell strategy: one income keeps the wolf from the door and pays the mortgage, so the other can afford to be speculative and offers potentially limitless upside. Working for a single employer caps what you can earn; with many clients, nobody cares what you make from anyone else.

“One income keeps the wolf from the door.”

The point: Pair a safe base with an exposed, speculative bet to get security and upside together.

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The best cherry picker in the forest exits the gene pool

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From Nassim Taleb, Rory explains that likelihood is not the same as what you should do. A poker player sometimes makes a bet with low odds but a huge payoff. The opposite, 'picking up pennies in front of a steamroller', means taking many small gains at the price of a monumental hidden risk. If you climb tall trees for extra cherries but one time in 150 you fall and die, you can congratulate yourself on days 100 to 149 as the best cherry picker in the forest. On day 150 you exit the gene pool.

“On day 150 you exit the gene pool.”

The point: Steady small gains can mask catastrophic risk; avoid strategies with ruin in the tail.

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The brain is calibrated like a smoke detector

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Rory says we are mostly not trying to maximise anything; we are trying to avoid catastrophe. As an evolutionary biologist told him, there are far more ways of dying than of surviving. So the brain is set like a smoke detector: it wants something pretty good, but it definitely does not want anything terrible. Under uncertainty it is not just the average outcome that matters but the variance.

“There are far more ways of dying than there are of surviving.”

The point: Humans evolved to minimise the chance of disaster rather than maximise the average, so variance matters as much as the mean.

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The colour-coded menus at the Portuguese clown school

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At a restaurant in Portugal that doubled as a clown school, Rory found a menu he thinks every restaurant should copy: five colour-coded set menus, each of which you can modify by substituting any dish. It gives exactly the freedom of à la carte, makes deciding easier in two stages, and adds a layer of information about what the chef thinks works together. We would not ask a concert to play one movement of Schubert and another of Mendelssohn, he says, yet in restaurants we ignore the chef entirely.

“Mendelssohn probably knows his shit about music, so we'll allow him to actually set the agenda here.”

The point: Good defaults with free substitution add expert information without reducing freedom, which is welfare enhancing.

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The ER that accepts being sued

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Rory recommends HBO's The Pitt, an ER drama set in Pittsburgh, as a study in decision-making. In an ER you are time-constrained, so a decision 15 per cent better but 100 per cent slower is not desirable; you accept a risk-reward trade-off without all the tests you would like. Beyond the ER, medicine becomes far more risk-averse. In season two the ER staff say they accept being sued every few years, because if you are never sued you are probably not doing the job right.

“If you're not getting sued by somebody, you're probably not doing the job right.”

The point: Under time pressure, accepting occasional mistakes is the price of making good decisions fast.

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The fired studio head's successor gets the hits

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All fat-tailed businesses share the short-termism problem, Rory says: venture capital, music, Hollywood. Football managers are fired after three defeats, which is all noise and no signal. In Hollywood a studio head is fired after two loss-making years, and his successor makes a fortune from films green-lit by the man who was fired. Finance fantasises that business can be mechanistic and Newtonian, but real life is fat-tailed: there are three days in our lives that changed everything.

“The other guy comes in, they make a fortune entirely off films that were green-lit by the previous guy who was fired.”

The point: In fat-tailed domains, judging people on short-term results rewards luck and punishes good long-term bets.

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The Kent coast, a resort for satisficers

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Welcoming the audience to Nudgestock on the Kent coast, Rory jokingly calls it the 'UKIP Riviera' and a resort for satisficers: a perfectly good coast about an hour from London, as opposed to a slightly better coast that is a three-hour drive away. He invites people to think about that next time they plan a UK holiday.

“Perfectly good coast about an hour from London, as opposed to a slightly better coast which is a three-hour drive away.”

The point: Good enough and close often beats best and far once the full cost of the choice is counted.

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The Los Angeles doorman who recognised him

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Rory says fame's value is impossible to quantify: if you are a famous company, every time your chief executive rings someone, they call back. Les Binet's share-of-search data shows Rory jumping to Gary Vaynerchuk levels since TikTok. Rory realised it when a doorman at a Studio City hotel exclaimed: wow, it's Rory Sutherland. He finds it disproportionate; as networks grow, winner-takes-all effects become more extreme and arbitrary, and he is enough of a mathematician to be uncomfortable with it.

“If you're a famous company, every time your chief executive rings someone, they call back.”

The point: Fame compounds through networks, creating outsized, somewhat arbitrary returns that resist measurement.

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The low-carb diet works because rules beat restraint

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Rory, visibly thinner, adopted a heuristic diet: no carbohydrates, especially no sugar, not even fruit. Instructions saying you can eat this but not that are far easier to follow than calorie limits, which demand constant vigilance. Like Jewish dietary law, it is sensibly binary: exercise self-control when shopping and there are no carbs in the house. He adds Gary Taubes's argument that dieting assumes the body obeys simple thermodynamics, energy in minus energy out, when it is a complex system that may treat sugar differently.

“Instructions that say you can do this but you can't do that are much easier to follow.”

The point: Binary rules are psychologically easier than calibrated moderation, and simple physics models fail on complex bodies.

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The Moxy hits the sweet spot

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Rory stays at the Moxy in the hills above Cannes every year because everything else is a scam. There is no laundry or room service, but good coffee is available 24 hours a day downstairs, and that will do. It is always pretty good. Ogilvy planner Beth Barry said consumer logic is usually simply you get what you pay for: find your place on the line from cheap to expensive. For one to three nights, the Moxy is the sweet spot; quite often the real question is whether something is worth another 17 pounds.

“Quite often it's: is it worth another 17 quid for that?”

The point: Consumers mostly choose a reliable point on a simple price-quality line rather than weighing complex attributes.

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The National Lottery and your numbers

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Les Binet explains that scratch cards need constant new versions because people become immune after losing a few times. Rory contrasts the National Lottery: because people have their own numbers, it creates massive fear of missing out. Imagine if your numbers came up in the week you had not bothered to buy a ticket. That makes it far harder to stop playing.

“Imagine if my numbers came up in the week I hadn't bothered to buy tickets.”

The point: Personalising a gamble creates anticipated regret that locks people into repeat behaviour.

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The Olympics should be banned

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Rory's controversial view: the Olympics should be banned. We see the few winners, with American-style backstories of overcoming adversity, but not the thousands who gave up their youth to training and then got injured or never made it. Roughly 50,000 try and three succeed, yet survivorship bias makes it look great. Instead, invent a sport of your own, like padel, and get good at it. Don't benchmark yourself against others; create a new benchmark. He doubts he will be asked to commentate.

“Don't benchmark yourself against other people. Go and create a new benchmark of your own.”

The point: Winner-takes-all contests are a bad bet; creating your own game beats competing in crowded ones.

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The satnav that sent him the wrong way round the M25

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An early satnav owner, Rory had a meeting with easyJet when a traffic disaster struck. Agonising over how to avoid the south-west M25, he'd never have thought of the satnav's solution: go the wrong way round, via Dartford. Sometimes satnavs show genius. But sometimes you ignore them because of the alignment problem: it doesn't know your goal. You may want the scenic route, or when catching a plane you want low variance, not the best average. At night in the rain you say 'nice try, mate' and take the motorway. AI as adviser or stimulus is great; the human must still judge context.

“Nice try, mate, but actually it's dark, it's raining. There's no way I'm going to save three minutes by driving down back roads.”

The point: Optimisers miss the decision-maker's wider goals, such as reducing variance, so their advice needs human contextual judgement.

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The speed awareness course tree

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Rory recounts a story from speed awareness courses. Two cars side by side on a motorway, one at 70mph, one at 100mph, round a corner and see a tree across the road. Both brake at the same moment. The car at 70 stops half an inch from the tree. What speed is the other doing when it hits? Nearly everyone says 30. The answer is 70, because you cover more distance while reacting and braking distance grows exponentially. People think risk rises linearly with speed; it does not.

“Nearly everybody goes, well, it'll be 30 miles an hour. No, the actual answer is 70 mph.”

The point: A single vivid fact can correct an intuitive but dangerous misunderstanding of risk.

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The supermarket cocktail pod lifted spirits sales 8%

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Wine wins in supermarkets partly through path dependency: it sits at the end of the store, so you grab red and white. Buying spirits means doubling back for mixers and, for Pimm's, returning to the start for fruit against the flow of traffic. Retailers and spirits makers trialled a 'cocktail pod' at the end of the store with ice, mixers and baskets of lemons and limes, placed at the 'what shall we drink tonight' moment. Spirits sales in those stores rose by about 8%.

“It's an extraordinary effect, simply the product of path dependency.”

The point: Where a choice sits in the customer's path can matter more than preference.

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The ten-pound-cheaper 6am flight

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A family of four books easyJet from Gatwick and sees one flight ten pounds cheaper than the others: forty quid saved. Two days before travelling they realise it is the 6am flight, and there is no way to get the family up at 3.30. So they book a hotel the night before and a meal at Pizza Express, about 200 pounds, wiping out the saving. Rory admits he has done it himself. At the moment of choosing, price was the only salient factor.

The point: When price is the only visible attribute, people make choices that cost them more overall.

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To get uphill you must go downhill first

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Politicians who never mess up, Rory suggests, may not be taking enough risks. If your company were heading down the tubes, you might be more optimistic hearing Trump had been made CEO than Kamala Harris, because desperate times need someone likely to do something eccentric rather than managerial. He cites Paul Bloom on rational reasons for apparently irrational acts: in slow decline you may be trapped in a local maximum, and the only way uphill is to go downhill first. An uncertain imaginative leap beats a rational spiral of decline.

“The only way to actually get uphill is to go downhill first.”

The point: When incremental optimisation leads to slow decline, a bold, seemingly irrational move can be the rational choice.

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Track sprinters who win by standing still

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Rory shows a world championship track cycling sprint final and claims he could cycle faster than the riders for most of it. The reason is game theory. If you go fast and lead, your opponent drafts in your slipstream and spends far less effort. So the first two-thirds of the race is about not going fast and not leading; some riders have mastered standing still on the bike. Far more of life is game-theoretic like this than is a race against a single numerical measure.

“The first two-thirds of that race is a business of not going fast and not leading.”

The point: When outcomes depend on others' moves, optimising a single metric can be the losing strategy.

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Uber is valuable even when you don't use it

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Rory wrote in The Spectator that Transport for London is silly to be hostile to Uber, because it is valuable even when unused. He used to drive into London not for transport but as a fallback, in case he got stranded at one in the morning. Knowing Uber exists, he takes the train more. Last year he made 40 fewer car journeys into London, yet used Uber to get home only once. It was knowing it was there that made the difference.

“It was knowing it was there that made the difference.”

The point: A reliable plan B changes behaviour by removing worst-case anxiety, which models miss.

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Usain Bolt's Chicken McNuggets

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Usain Bolt ate Chicken McNuggets for weeks before competing in an Olympic final. You would expect 'my body is a temple' and a personal quinoa chef. Instead, Rory says, Bolt explained that only two things really mattered: he got loads of protein and he did not get ill. For someone whose priority is avoiding a catastrophic downside, the predictable option is the rational one.

“I get loads of protein and I don't get ill. That's all that really matters.”

The point: When the cost of a bad outcome is huge, people rightly choose the reliable option over the optimal one.

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Watching Deal or No Deal with a Goldman Sachs banker

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Rory watched Deal or No Deal with a friend from Goldman Sachs who was certain the right play was to refuse any bank offer below the expected value, and that real contestants were irrational. Rory disagrees on two counts. First, regret: if you have one chance in your life, turn down £20,000 and walk away with a fiver, you feel terrible for 30 years, and it is worth some loss to insure against that. Second, £20,000 is not twice as good as £10,000: a £20,000 caravan is not twice as good as a £10,000 one. Contestants' near-logarithmic play fits human happiness better than the banker's linear maths.

“A £20,000 caravan is not twice as good as a £10,000 caravan.”

The point: Apparently irrational choices often reflect regret aversion and diminishing marginal utility, which linear expected-value logic ignores.

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We let AI decide without reasons but not humans

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Rory does not want to be wholly negative about AI: a caller to LBC said it helped save his daughter's life by listing leukaemia among her possible conditions, prompting an earlier test. As a checklist it is very useful. But he finds a strange double standard: businesses will not let experienced people make subjective decisions they cannot justify, yet they seem willing to accept a computer's answer without demanding its workings, granting AI a decision-making magic denied to humans.

“We are according AI a kind of decision-making magic which we wouldn't accord even to a really experienced human being.”

The point: Organisations distrust human intuition yet accept opaque machine judgement, an inconsistent standard.

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We've never had two idiots in a row

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Francis Fulford's family have held the same Devon estate by direct descent since around 1240. Asked how, he pointed at the ancestral portraits and, in rather saltier language, said they had had idiots, drunken idiots, gambling idiots, philandering idiots, idiots imprisoned for treason, but never two in a row. Rory's point: in a multiplicative, non-ergodic world, two or three bad outcomes in a row are far worse than spaced misfortune, so worrying about downsides that compound is not irrational.

“We've never had two in a row.”

The point: Avoiding consecutive misfortune is what preserves wealth over time, which makes apparent risk aversion rational.

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What weighting for crime rate versus the Tube?

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After Les Binet describes building a weeks-long spreadsheet of London postcodes only to arrive at the area his wife had already suggested, Rory notes that attempts to formalise decision-making to replace intuition are complicated. For all its weaknesses, intuition somehow processes a huge number of incommensurable variables. What weighting do you give crime rate versus proximity to the Tube? Any formula has to invent an answer.

“What weighting do you put to crime rate versus proximity to Tube?”

The point: Intuition integrates incomparable factors that formal scoring can only handle by arbitrary weights.

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Where did this pension money come from?

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Rory tells a pensions campaigner that people still do not realise how good a pension is, because you have to be about 55 before you see the compounding effect. A pension is very boring early in life, and then at around 55 or 60 you suddenly ask: where did this money come from?

“Suddenly when you're about 55, 60 you go: where did this money come from?”

The point: The benefits of long-term saving are invisible until late, which is why the young undervalue it.

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Why nobody moves their current account

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Fear of the downside explains why almost nobody moves their current account. You might gain an extra 1.5 per cent interest, but moving comes with perhaps a 5 per cent chance of your life becoming total hell. So nobody takes the deal.

“Moving your current account comes with a 5% chance of your life becoming total hell.”

The point: Small chances of disaster outweigh reliable small gains, so switching offers fail.

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Would you chat up a film star, or respond if they chatted you up?

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To explain why far more people would sell than list their homes, Rory compares it to romance. Meet your fantasy Hollywood film star: would you chat them up? Possibly not. Would you respond if they chatted you up? If single, almost certainly. There is a fundamental asymmetry between making the first approach and responding, and a deadlock in the middle where two people can fancy each other and nothing ever happens, which he thinks is what Much Ado About Nothing is partly about.

“There's a fundamental asymmetry between who makes the first approach.”

The point: Markets stall when nobody wants to make the first move, so designs that invite approaches unlock hidden supply.

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You want an air fryer girlfriend, not a Corvette girlfriend

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What makes someone attractive at first glance and what makes a relationship endure are different criteria. If you marry a supermodel, she'll run off with your tennis coach and take your house. You want someone disproportionately attractive to you, whose value you only discover through long familiarity: an air fryer girlfriend or a Japanese toilet girlfriend, not a Corvette girlfriend. Economists call these experience goods, things whose value only becomes apparent with use. First-glimpse criteria are unreliable for houses, employees and partners alike.

“What you want is an air fryer girlfriend or a Japanese toilet girlfriend, not a Corvette girlfriend.”

The point: For long-term choices, value is revealed through use, so first-impression filters select the wrong things.

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Your life is fat-tailed, Darwin's marriage list

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Marketing is fat-tailed because the real world is. The things that matter most in your life, your partner, your house, how you got your first job, were probably freak occurrences that could easily not have happened, not the product of long-term plans or cost-benefit analysis, and were rarely decided on numbers. Charles Darwin did draw up a list of the pros and cons of marrying, but his decision was entirely emotional. Going through the motions is healthy; letting the process exclude everything that cannot be reduced to a number is a terrible way to decide.

“I assume you didn't choose your partner on a spreadsheet.”

The point: Life's most important outcomes are chance-driven and emotional, so purely numerical decision processes misfit them.

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Evolution and nature 70

The bees that ignore the waggle dance

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Bees returning from a good source perform a waggle dance telling the hive the direction, distance and quality of the nectar. Most follow it: efficient, measurable double-entry bookkeeping that accountants love. But scientists were surprised to find that about 20 per cent ignore it and fly off at random. Evolution detests waste, so why, after millions of years, haven't bee compliance officers evolved to demand full adherence and bring nectar collection in line with the quarter-three forecast? Modelled as a complex system, the answer is that without the random bees the hive gets trapped in a local maximum and starves. It cannot adapt when cows trample the favourite field, cannot grow beyond what it already knows and, most important, cannot get lucky. Most scout trips find nothing, but the odd one brings back something more valuable than pollen: information. And it only works if the hive listens to the scouts.

“If you had a hive which only obeyed the waggle dance, it gets trapped in a local maximum, it starves to death.”

The point: Some protected, apparently wasteful exploration is essential: a system run purely on exploiting what it already knows gets trapped in a local maximum, cannot adapt or grow, and never gets lucky.

Variants: The scouts' hit rate is given as one trip in 150, one in 200, or 99 in 100 wasted with a 20,000-to-one payoff on the hundredth, and the lesson varies: fund exploration under different metrics, ring-fence 10 to 20 per cent for it, treat marketing as the hive's R&D, or do some daft things every now and then. Rory often insists explore and exploit are complementary, yin and yang, not a trade-off (a friend calls the Western view 'monotheorism'), and one scientist told him human neurodiversity may serve the same purpose as the scouts.

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Evolution cares about fitness, not accuracy

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Rory grounds behavioural science in evolutionary psychology. Citing Donald Hoffman's The Case Against Reality and Robert Trivers, he says that if evolution can gain one or two per cent in fitness at the cost of a ten per cent loss of accuracy, it will make that trade every time. So we see faces in clouds, because reading whether a face will mate with you or kill you matters far more than naming a Pantone colour. We notice movement more than stillness and contrast more than absolute values. Two squares look blue and green but are the same green; two greys look different until you cover the join. It isn't worth evolution planting a Pantone catalogue in our heads. Hoffman likens perception to a computer desktop: an interface showing what matters for survival, not the circuitry.

“Evolution doesn't give a damn about accuracy. It only cares about fitness.”

The point: Perception is tuned for survival rather than truth, so design for how people perceive, not for objective qualities.

Variants: The trade is put as 1 per cent fitness for a 4 per cent loss of accuracy, or 1 to 2 per cent for 10 per cent. In one telling the colour illusion leads to the point that we perceive price relatively in exactly the same way; in another, via Kurzban and Trivers, that we lack full introspective access to our motives because self-deception helps us deceive others.

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Evolution's loose fitness function

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The mathematician Stephen Wolfram told Rory that evolution produces such inventive life because its fitness function is loose: find any niche where you survive long enough to reproduce and you stay in the game, whether you are moss, a bacterium, a shark or a bonobo. That looseness is why evolution produces spectacular biodiversity. Rory likens it to an average-speed camera: drive at whatever speed suits the traffic as long as you average under the limit. A fixed camera is tight and gets gamed, with everyone barrelling along then braking at the same spot. Business does the opposite of evolution. Investors and finance impose the same narrow metrics on every company, short-term return and every cost matched to known revenue, so firms converge into a sparse monoculture: Soviet-style capitalism that defines success in advance.

“When you make your fitness function too tight, you just end up with a lot of moss, but you never get a shark.”

The point: Loose goals with freedom of method generate diversity, discovery and luck; tight, uniform metrics produce gaming, conformity and a monoculture.

Variants: In one telling the application is customer service: Octopus Energy and Shopify set clear satisfaction goals and let staff use initiative, so they occasionally discover a disproportionately effective phrase, whereas a scripted call centre discovers nothing. Elsewhere he pairs it with the look-alike vultures to argue every brand needs some success metrics of its own, or quotes Martin Sorrell: we don't let our strategy interfere with our tactics.

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Chillies aren't actually hot

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Nature, Rory says, worked out perceptual innovation long before humans did. The chilli wants to be eaten by birds, which spread its seeds further, and not by mammals. Birds are not sensitive to capsaicin; we are. Yet nothing about a chilli is actually hot, and it does you no harm however much your lips burn. Producing a genuinely hot fruit would be very difficult: a Google-style 10x approach would have the plant maintaining an insane temperature. Instead capsaicin tinkers with the receptors in the mouth and skin, triggering the sensors normally fired by real heat. Nature did not need an objectively hot fruit, just a fruit that feels hot. It changes how something is perceived rather than changing reality, which is why the chilli should be the official plant of advertising and marketing.

“I don't need to produce an objectively hot fruit, I just need to produce a fruit that feels hot.”

The point: Changing perception is often far cheaper than changing reality, and achieves the same behavioural effect.

Variants: One telling names parrots as the intended eaters and rodents as the unwanted ones, says capsaicin fires sensors normally triggered above about 109 degrees, and pairs chilli with menthol, which is not actually cool. Another simply presumes the aim is to deter the wrong animals.

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Consumer capitalism is the Galápagos Islands of human behaviour

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Rory calls himself a commercial naturalist. He treats consumer capitalism, especially retail, catering and quick-service restaurants, as the Galápagos Islands for understanding human behaviour: an enormous social science experiment in which all the weird anomalies, freak successes like round tea bags and Red Bull, are concentrated in one place, waiting to be observed. Darwin was a bright guy, but he also had the luck of a free trip to the world's weirdest ecosystems. Had you seen a Victorian naturalist measuring finches' beaks, you might have dismissed him as a bit of an idiot, yet those trivial observations bore on enormous questions. Likewise the tiny quirks in a good loyalty programme's data may illuminate much bigger questions about human psychology, if you bring both a psychologist's and a data scientist's mind.

“I try to treat consumer capitalism as the Galápagos Islands of human behaviour.”

The point: Markets are a natural laboratory: observing their odd successes and failures with an open, Darwinian mind reveals truths that reductionist analysis misses.

Variants: One telling adds that business is closer to biology than mechanics, an experiment where n equals 6.5 billion, which reveals more colour than the Harvard Business Review's black and white. Another notes that Alfred Russel Wallace was born in the same tiny Welsh village as Rory.

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Eat the purple berries everyone else eats

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Humans evolved two powerful, barely conscious defaults: do what I did before, and do what everybody else does. Evolution shaped our brains not to make perfect decisions but to avoid catastrophic ones; all our ancestors reproduced before being killed. If I've eaten lots of purple berries and never got ill, but never tried a yellow one, I should stick with the purple unless I'm starving. If I'm somewhere unfamiliar and everyone eats the purple berries but nobody touches the yellow, I should eat the purple: they probably know something I don't. It isn't perfect, but it is unlikely to be a disaster, and a human without a herd instinct would have been selected out. That ecologically rational logic is why habit and social copying are so powerful, and why new behaviours spread more slowly than businesses expect.

“If you do what everybody else does it might not be perfect but it's unlikely to be a disaster.”

The point: Habit and imitation are rational safety heuristics under imperfect information, so new behaviours must overcome a sensible reluctance and tend to spread through social proof.

Variants: One telling uses it to explain the S-shaped adoption curve. Another, without the berries, defends herd behaviour against 'if Rory jumped off a cliff, would you?', because it is much cheaper to learn from other people's mistakes than from your own.

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Nobody on Tinder talks about their pension

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Advising government in Cabinet Office and Number 10 meetings on getting young people to save into pensions, Rory sometimes drops what he calls a Darwin bomb. He accepts the economics of starting early and offers behavioural fixes such as a drawdown facility, since to a 22-year-old something paying out at 55 is almost a promise from another planet. But no intervention will reach the levels an economic model projects, because for most people in their twenties the most valuable thing to do is find a good, attractive, non-insane partner. On Tinder people talk about their cars and holidays, not their pension provision. If a nice flat, car or wardrobe is a better route to a mate, spending is not irrational. If rationality mattered that much in evolution, accountants would be really sexy.

“If rationality were that important in evolutionary terms, accountants would be really sexy.”

The point: Behaviour that looks suboptimal to economists often serves evolved priorities, such as finding a mate, that narrow models ignore, so policy must work with them rather than against them.

Variants: The punchline varies: putting a Ford Mustang V8 on Tinder beats talking about pensions; male strippers dress as firemen, not actuaries; or invest a little less and buy a Microlino bubble car, which he calls Darwinian investment, because people want to show they have resources to spare. One telling adds that a young person with no savings has good reason to avoid commitments that could prove disastrous.

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The cat and the cucumber

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Rory shows the viral video, which you can try at home: put a cucumber just behind your cat, outside its field of view, and wait for it to notice. The cat leaps away in fright. It does not really think the cucumber is a snake, but it reasons: there's not much chance it's a snake, but why take the risk? It is green, pointed and low to the ground. A false positive costs embarrassment; a false negative costs death. There were probably cats a million years ago who admired the lovely cucumber that turned out to be a snake, and they didn't leave many descendants. Most cats are descended from paranoid cats, just as we are disproportionately descended from people who avoided really bad choices, at least until they had reproduced.

“Most cats are descended from paranoid cats.”

The point: Evolution favours avoiding catastrophic errors over maximising average outcomes, so overreaction to possible disaster is built into every creature.

Variants: In one talk he pairs it with the smoke detector, which thinks you are probably just making toast but asks why risk it.

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Feathers evolved for display before flight

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Early technology, Rory argues, is often driven by status-seeking rather than utility. Early cars and computers were unreliable, expensive hobbyist status devices for long periods, bought for novelty or showing off. A Goldman Sachs friend paid about £5,000 for a plasma TV that now looks rubbish and tiny; Rory's grandparents were the fourth family in Wales to own a dishwasher, paying about the price of a small car in the 1950s. Such purchases are early-stage funding for new technology, which later becomes affordable for everyone. Nature may do the same. One theory says feathered dinosaurs evolved plumage and wings for sexual display, like a peacock's tail on the sides, as proof of health, and only later, when the wings grew big enough, parlayed them into a means of flight.

“Early technology is probably driven by status-seeking rather than utility.”

The point: Status-driven extravagance by early adopters subsidises new technologies until they become cheap and genuinely useful to all.

Variants: One telling invokes Fisherian runaway and frames this as a third kind of luxury that it is partly the job of rich people to fund; another uses the Apple Vision Pro as today's example.

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The brain is a paranoid smoke detector

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We can't help seeing faces in rocks, the moon and even a church that looks like a chicken, because spotting a face, predator, prey, an angry human or one who wants to sleep with us, is so valuable. The brain is calibrated like a smoke detector. Going off when you make toast is annoying but cheap; you never want a chilled-out detector that gives a burning smell the benefit of the doubt and lets you die in your sleep. You want it slightly paranoid. Facial recognition software ends up with exactly the same bias: calibrate it never to see a face where there isn't one and it misses many real faces, so the optimum is to accept some false positives. Fear works the same way: there are no snakes in Ireland, yet Irish people still fear them.

“Smoke detectors, when in doubt, beep like hell. Our brain, when it might be a face, says face.”

The point: When errors are asymmetric, a good detector should be biased towards cheap false positives, so apparent perceptual errors are often an optimal calibration.

Variants: The Irish snakes telling adds that if evolution can gain 2 per cent fitness for a 10 per cent loss of accuracy it will always take the trade. The face-recognition-software point also appears on its own as proof that computer software is no different from the human brain.

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Why we grow conservative with age

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Our urge to experiment diminishes as we age, which parents of teenagers find maddening, but Rory says it makes perfect evolutionary sense. When you are young you have less experience to draw on and a long future in which to profit from any discovery, so experimentation pays. When you are old you have more experience and fewer years left to benefit. Explore when young, exploit when old. Young, Rory went somewhere new every holiday; at 59 he returns to the same place, because he knows what he likes and is unlikely to discover a passion for kite surfing. Having teenagers at 50 is maddening: as you want Madeira for the fourth time, they want the Rio Carnival. Conservatism among the ageing is a sensible adaptation, not mere stubbornness.

“It pays you to be experimental in youth and slightly conservative with old age.”

The point: The value of exploration depends on how long you have left to profit from what you learn, so preferences rationally shift from novelty to familiarity with age.

Variants: One telling adds that marketing people score disproportionately high on openness to experience and tend to be young.

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Bet that evolutionary findings replicate

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On the replication crisis, Rory has made a bet: behavioural findings that make sense in the light of evolutionary psychology will replicate, and those that do not will fail. He never bought priming, the idea that hearing words like geriatric and Zimmer frame makes you walk out slowly. But context effects will always replicate: he would not leave cash on the table at a dinner party, and does not pay his wife for sex, because we behave more or less economically depending on context. He gives Robert Cialdini a big shout-out for the same reason: Cialdini came before Kahneman and Thaler, his findings replicate, and reciprocation, social proof, scarcity and habit all make complete sense as heuristics for a social species surviving on imperfect information.

“Evolution doesn't stop above the neck.”

The point: Evolutionary plausibility is a useful filter for which behavioural science results to trust and build on.

Variants: The Cialdini telling adds a tension between a reproductive urge to stand out and a survival urge to fit in, which is why in dating you emphasise your unusual qualities.

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Neurodiversity is a feature, not a bug

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Rory endorses Helen Taylor of King's College London, who argues that human neurodiversity is a feature, not a bug. In a group of around 150 in our evolutionary environment, it paid for not everyone to think or see things the same way. You can bet whoever invented the flint axe or the wheel was not neurotypical. Newton was famously odd, Adam Smith lived with his mother, and Rory wonders about James Watt and Faraday. The contribution of non-neurotypical people to society has been disproportionately high, and some have compensatory strengths. We risk medicalising a perfectly normal evolutionary response to a group's need for people who look at things differently.

“You can bet that the people who invented the flint axe weren't neurotypical.”

The point: Cognitive variety within a group is an evolved advantage for discovery, so treat difference as an asset rather than a disorder to manage.

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Old World and New World vultures

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Old World and New World vultures look almost identical: bald necks for plunging into carrion and highly acidic stomachs for rotting meat. Yet they are unrelated. One descends from hawks and the other, remarkably, from cranes; they are only both birds. They look the same because both were optimised for the same narrow job. Rory, who found the analogy with the help of AI, says business does this to itself. Investors are diverse, but intermediaries who must justify themselves monthly need comparison, so they apply the same metrics, quarterly reporting and EBITDA, to every firm. Firms converge into corporate isomorphism: everyone looks like their competitors, the capacity to differentiate is eradicated, competition collapses into head-to-head price, the category loses value and consumers lose choice. Everybody loses.

“They look more or less the same because they've been optimised for the same thing.”

The point: Apply the same narrow incentives to different organisations and they converge, destroying differentiation and value for everyone.

Variants: One telling invokes Goodhart's law; another pairs the vultures with Stephen Wolfram's loose fitness function and concludes that every brand needs some success metrics uniquely its own.

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Teach evolution even if it weren't true

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Rory often says Darwinian evolution should be taught extensively at school, and when people object that it may not be true, he says that hardly matters, though he thinks it is. Teaching it gives people a fundamentally different way to think: less instrumental and less intentional, seeing that not everything that happens is the product of conscious design, and that complex systems run on feedback loops and exponential and butterfly effects. Business, by contrast, pretends the world is linear and Newtonian, builds a model for that pretence and solves for the model, and a bad model can be worse than none. He noticed that people who studied biology or genetics made very good account planners, because they understand complex systems.

“Whether it's true or not doesn't matter to whether you teach it, because by teaching it you give people a different way to think.”

The point: Evolutionary thinking is valuable as a habit of seeing outcomes as emergent rather than designed, which fits markets and behaviour better than linear models.

Variants: One telling ties it to behavioural science, which likewise shows that behaviour can come from institutional design or contextual framing rather than intent; another to the pandemic as a crash course in complexity thinking.

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The bullet train with a kingfisher's beak

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The long nose of the Japanese bullet train exists not mainly for aerodynamics but to stop a hideous boom whenever a train enters or leaves a tunnel. The inspiration came from a kingfisher: an engineer who was a keen birdwatcher noticed that kingfishers dive into water leaving barely a ripple, and wondered what it was about the beak that made that possible. Rory uses it to illustrate biomimicry, which his colleague Sam Tatam wrote about, and TRIZ, the problem-solving method of the Soviet scientist Altshuller, whose suggestions about Stalin-era issues earned him 25 years in the gulag. Its insight, which Rory's business calls lateral category analysis, is that most problems have already been solved somewhere else, but nobody has transferred the solution.

“The problems have mostly been solved somewhere else, but no one's transferred them from one domain to another.”

The point: Many problems have already been solved in another domain, nature included, so look for a solution to transfer before inventing one.

Variants: In one telling the engineer was out fishing when he saw the kingfisher dive.

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Think like Darwin, not Newton

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If you want to solve human problems, Rory says, stop trying to think like Newton and come up with universally applicable, context-free laws: that's been done, it's called physics. Newton's laws describe how things eternally are; Darwin's theory describes how things change from one state to another. The blandest description of evolution, 'things are the way they are because they got that way', is also deeply insightful, because it makes you ask how they got that way and where you could go next. Darwinian thinking is a gateway to complex systems changing over time. It taught Rory that a large part of progress is variation and selection, not intent, and, with his direct marketing background, made him a devotee of experimentation.

“Stop trying to think like Newton and come up with universally applicable context-free laws. That's been done. It's called physics.”

The point: Human and market problems need context-sensitive, evolutionary thinking, in which progress comes from variation and selection rather than from universal laws and intent.

Variants: One telling adds that colleagues who studied biology or genetics make very good advertising people; another notes that evolutionary thinking fascinates comedians like Ricky Gervais.

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Two tribes, fight with axes or share the meat

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Rory cites Geoffrey Miller's picture of two neighbouring tribes in which men compete for female attention. In the first they signal their desirability by fighting each other with axes: a massive negative-sum game, and the tribe ends up dead or injured and depopulates. In the second they compete obliquely by showing off their hunting prowess. Since you cannot eat a whole elephant before it rots, you demonstrate your skill by being generous with the leftover meat, keeping the best bit for yourself. Self-interest produces a positive externality, and those obliquely competing groups prospered. Status-seeking is innate and immutable; whether it helps or harms depends on which currency of status a society chooses to reward.

“That's a negative-sum game. That's a positive-sum game.”

The point: Status-seeking is inevitable, so channel it into oblique, positive-sum currencies that spill benefits onto others rather than trying to suppress it.

Variants: One telling adds that status-seeking drives ambition and progress, and that without shame people would go shopping naked.

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Why a fly can never evolve a lens

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From his late colleague Sam Tatam's book Evolutionary Ideas: insects have convex compound eyes of light-detecting cells, which work fine at a fly's size, but there is no easy evolutionary path from a convex eye to a lens. A concave eye, as lizards evolved, an 'innie' rather than an 'outie', can grow a protective covering that becomes a pinhole, giving a pinhole camera with real resolution, then a transparent cover that grows into a lens. For a fly to see like a human it would need an eye about three feet across. Rory applies it to cars: the internal combustion engine is the convex eye, an evolutionary cul-de-sac, while electrification is the path to the lens. The reason to pursue a path is optionality, not optimality.

“The reason to pursue the path is optionality.”

The point: Some designs are good now but cannot develop further, so prefer paths that keep future improvements reachable even if they are not the best today.

Variants: One telling extends the argument to flexible working and to micro-cars for the station run, noting that we are wrongly forced to defend such choices on grounds of optimality.

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40 per cent of ants do nothing, and that's the point

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Once scientists could spray tiny QR codes on ants to track individuals, they found that in the colonies studied 40 per cent of ants do bugger all; they just wander around. The theory is they're a reserve army for disasters or attacks. Removing the hard-working ants confirmed it: the lazy ones stepped up. Nature optimises for long-term resilience, not short-term efficiency. Modern business fetishises short-term optimisation, and it's much easier to quantify a cost than an opportunity cost: no finance person is sacked for killing something, because the counterfactual doesn't exist.

“Nature is optimised not just for short-term efficiency but for long-term resilience and survival.”

The point: Apparent slack is often a resilience reserve, and efficiency drives that remove it create fragility.

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Aspirin worked before anyone knew why

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Science has two separate activities: discovering what works and explaining why, and they can happen in either order. Aspirin was used as a painkiller for decades before anyone understood its mechanism; Bakelite, penicillin, the microwave, X-rays, radar and radio were all found 'backwards'. Imagine forbidding penicillin because its discovery was not predicted. Yet policy and business insist on reason first, discovery later. Evolution, by contrast, does not care a damn about reasons: if it works it survives.

“It doesn't need to know why it works, it just needs to work.”

The point: Requiring a plausible 'why' before trying a 'what' throws away many discoveries that only make sense afterwards.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Banter and drinking as friendship stress tests

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Armies have long been encouraged to get drunk together before a battle, partly because you are a better lie detector when drunk. Rory finds an anthropological theory behind a lager campaign about knowing who your mates are: young men get drunk and do stupid things to find out who their friends are, since the one who bolts at the first police siren is not your mate. Rude banter works the same way: if we weren't really good friends I couldn't say this to you.

“Rude banter is a kind of stress test of a friendship.”

The point: Seemingly pointless risky or rude behaviour can be a costly test of loyalty.

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Caviar, frankly, tastes awful

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Rory names scarcity bias as one of the worst evolved biases: we intrinsically treat rare things as especially valuable, with rhinoceros horn as the extreme case. Caviar, to be honest, tastes terrible, and if it were not rare and expensive no one would have the slightest interest in it. The more we can challenge that bias, the better. He also notes our preference for owning a second home over renting other people's homes far more cheaply.

“If the stuff weren't rare and expensive no one would have the slightest interest in it.”

The point: Scarcity inflates perceived value regardless of intrinsic quality, an evolved bias worth challenging.

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Crises as annealing

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Rory sees value in occasional disruption. In a crisis businesses become less risk-averse, since necessity is the mother of invention, and consumers gain a narrative for doing things differently, as the pandemic showed with recipe boxes. The 1930s, right after the Great Depression, were arguably the most innovative decade for human welfare, from cars to aircraft. He compares it to annealing a samurai sword, hammered while it cools: some variance and instability in economies may be healthy in the long run.

“Some degree of variance and instability in economies is possibly long-term healthy.”

The point: Disruption loosens habits and risk aversion, creating conditions for innovation.

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Darwin's lizard that kept climbing back

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Darwin repeatedly picked up a large lizard on an island and threw it into the sea. Every time, it climbed straight back onto land. He inferred that it had evolved on an island with no land predators but with predators such as sharks in the sea, so its rule was: when in doubt, get back on land. Even though the island now contained a bearded bloke who kept lobbing it into the ocean, the preference had become innate.

The point: Evolved preferences persist after the environment changes, so odd behaviour may reflect old conditions.

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Do not say bias until you know its origin

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Rory accepts that some instincts acquired on the Serengeti are not optimal in a modern setting, so he is not one of those who say the word bias should never be used. But he argues you should not call something a bias until you have investigated the evolutionary origins of the instinct and how it might translate to the modern world. Often the instinct is doing a sensible job the model has missed.

“I don't think you should say bias until you've actually investigated the evolutionary origins of an instinct.”

The point: Labelling behaviour as error before understanding its adaptive function leads to bad interventions.

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Emotions can be inherited, reasons have to be taught

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When evolution gave us emotional reactions such as fear of snakes, it did not need to supply an explanation to go with them. And evolution finds emotional reactions more reliable than rational ones, because emotions can be inherited whereas reasons have to be taught. It is safer to make us hate snakes than to rely on every generation teaching its children to avoid green slithery things. That is why people often do not know why they feel as they do.

“Emotions can be inherited whereas reasons have to be taught.”

The point: Emotional instincts are evolution's dependable shortcut, which is why feelings arrive before, and without, reasons.

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Evolution doesn't care about truth, it cares about fitness

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We do not perceive the world objectively, Rory says; evolution does not care about truth, it cares about fitness, and waiting for perfect information is no advantage. So the senses take bets. In the McGurk effect you hear ba, but seeing lips say fa, you hear fa: the brain bets it misheard rather than misseen. Look away and you keep hearing the last sound. Shaded circles look convex or concave because the brain bets light comes from above. Calling these illusions is dubious: it is the brain being clever.

“Evolution doesn't give a damn about truth, it cares about fitness.”

The point: Perception is a set of smart bets on limited data, so context legitimately changes what we experience.

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Evolution is a brilliant uneducated craftsman

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Rory separates nonsense from 'non-sense': behaviour that only looks foolish because we misjudge its aim, or because evolution is simply smarter than we are. He likens evolution to a brilliant but uneducated craftsman, short on theory yet rich in accumulated experience. Its solutions may lack a tidy rationale, but they have survived real-world testing, which is why we should be wary of dismissing evolved behaviour as irrational.

“Evolution is like a brilliant uneducated craftsman: what it lacks in intellect it makes up for in experience.”

The point: Evolved behaviours encode tested wisdom even when nobody can articulate the reason.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Evolutionary psychologists are the Ramones of social science

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Rory noticed that economists did not understand marketing at all, but evolutionary biologists understood it brilliantly and instinctively; they just call it signalling. They are also more fun. Evolutionary psychologists, he says, do for the social sciences what the Ramones did for music: a dissident, mischievous gang at the back of the bus, mooning coach drivers and flicking snot at the other social scientists sitting at the front.

“They do for the social sciences what the Ramones did for music.”

The point: Evolutionary biology, through signalling theory, explains marketing better than economics does.

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Flowers invented the IKEA effect

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Flowers, Rory says, invented the IKEA effect. Some make it deliberately hard for a bee to get in to the pollen. Having mastered the effort, the bee is disproportionately keen to do it again, which suits the flower because it wants bees to stick to one species. IKEA works the same way: after navigating that extraordinary maze, going home empty-handed is intolerable, the retail equivalent of coitus interruptus.

“Flowers have also invented the IKEA effect, by the way.”

The point: Adding effort can increase commitment and repeat behaviour, in nature as in retail.

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Food halls as the Galapagos Islands of food

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As a fan of evolutionary biology, Rory sees Boxpark and Arcade food halls as the Galapagos Islands of new food concepts. Opening a standalone restaurant tells you little, because you cannot separate the effect of location, food, branding, service and price, much as New Zealand's flightless birds thrived only because there were no predators there. In a food hall, 15 vendors sit side by side and customers choose between them, a near randomised controlled trial with selection, replication and elimination. He jokes that the UK, having no overbearing food culture of its own and stealing from everywhere, has become a Cinnamon Valley of food innovation.

“Boxpark and Arcade are actually the Galapagos Islands of developing new food concepts and food brands.”

The point: Innovation thrives where many variants compete under like-for-like conditions so selection can work.

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Gold became currency to pay for prostitution

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One of Rory's mischievous dissident theories is that gold arose as currency as a means of paying for prostitution. Early humans hacking at rocks found a metal useless for tools or weapons because it was soft, but perfect for jewellery to attract the opposite sex. He calls it an anti-theory: however true, nobody will accept it because it is too discomforting. Some evidence: when bonobos are taught to use currency, prostitution rackets start within days.

“However true it might be, no one will ever accept it because it's just too discomforting.”

The point: Some plausible explanations are rejected because they are uncomfortable, not because they are wrong.

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Habit and copying explain the brand laws

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Rory says the Ehrenberg-Bass school finds power laws, Dirichlet distributions and the Bass diffusion curve everywhere, with the brand leader typically twice the share of number two. First rule: simple additive maths does not work; an ad that earns 10 pounds in week one will not necessarily earn 10 in week two. But they do not ask why enough. His theory: habit and social copying. With those forces, you would expect sigmoid adoption and winner-takes-all effects. The Bass curve also suggests many businesses give up on good ideas too early.

“Two very powerful instinctive forces in human psychology are habit and social copying.”

The point: Market regularities have psychological causes, and understanding them suggests when to persist with an idea.

Sources (1)

Home advantage and the running track

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Home advantage is perhaps the best-attested statistic in sport. Rory notes that grounds with an athletics track round the pitch, which pushes the crowd further away, seem to show a weaker effect, and that Covid games without crowds will provide test data. Travel matters too. He adds a provocative, unmeasured question: whether removing pit girls from Formula One affected drivers, since attractive people around the pit lane might raise testosterone and bravery. He suspects crowd noise and support, and hostility to the away team, matter most.

The point: Social presence measurably changes performance, and natural experiments can reveal how much.

Sources (1)

Ideas evolve on the fringes, like Australian fauna

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Rory, being Welsh, believes more interesting ideas tend to emerge on the fringes. Australia has weird flora and fauna because it was a long way from anywhere for a very long time and things evolved in isolation. The same is true of intellectual and cultural life: being right in the middle of things is sometimes an advantage and sometimes the opposite, because you get swept along by whatever mainstream nonsense is prevalent.

The point: Distance from the mainstream allows distinctive ideas to develop, as isolation does for species.

Sources (1)

Leaving Hollywood at home to chat in the pub

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The popularity of podcasts suggests mainstream media long neglected human conversation, which, like storytelling, dance and music, is ancient and probably an evolved pleasure. Think about it: you leave a home with Netflix, Amazon Prime and Disney, the best Hollywood can offer, car chases and great actors, and voluntarily go to a pub to chat with six friends, several times a week. Long-form conversation was always more popular than entertainment makers realised. Podcasts also serve as conversational fodder.

“You've got the best that Hollywood has to offer at home, and you go: no, I want to go and meet six people and have a chat.”

The point: Evolved pleasures like conversation can outcompete polished products, and are undervalued by industries that ignore them.

Sources (1)

More tears for Diana than for the tsunami

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Rory cites Paul Bloom's Against Empathy: empathy evolved for an age with no media, towards people we could actually help, not people thousands of miles away. The identifiable victim effect should disturb us: vastly more grief and tears were shed over the death of the Princess of Wales than over the roughly 250,000 victims of the Boxing Day tsunami. Rory admits he was relatively callous at the time, sorry it had happened but feeling as if everyone else had gone mad. We are not evolved for our media environment, and it is driving us insane.

“There are clearly cases where we're not evolved for our current media environment.”

The point: Empathy responds to identifiable individuals, not scale, which distorts public priorities.

Sources (1)

Naive trust is a quick trip to the cemetery

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Citing Robert Frank's work on the strategic value of the emotions, Rory argues we wrongly treat emotion as a falling-off from cold rational decision-making. An organism incapable of acting emotionally would suffer all kinds of survival and reproductive disadvantages. Equally, the economist's ideal agent with perfect trust and perfect information could never have evolved, because in any competitive setting completely naive trust would be fatal.

“Completely naive trust would be a pretty quick trip to the cemetery.”

The point: Emotions and suspicion are adaptive strategies, not defects, and the rational agent of economics is biologically implausible.

Sources (1)

Nappies and lager late at night

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Rory cites a famous, very weird finding from 7-Eleven consumer data: a huge correlation, late at night, between men buying nappies and buying lager. The theory is that a man sent out by his wife, who has a young baby, to buy nappies reasserts his masculinity by also buying a six-pack. He offers it while arguing that pubs could sell everyday items people need late at night.

The point: Purchases carry identity meanings, so people balance a dutiful errand with a symbolic indulgence.

Sources (1)

Nobody will wear goggles in a public place

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The same psychology of feeling watched and vulnerable from all sides, Rory says, explains why Apple Vision Pro will never succeed. Would you ever sit in a public space wearing goggles? He would be convinced someone was going to stab him.

“Would you ever sit in a public space wearing goggles? I'd be convinced someone was going to stab me.”

The point: Technologies that leave people feeling vulnerable in public run against deep evolved instincts.

Sources (1)

Nobody would campaign for a deterrent we did not have

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Rory illustrates status quo bias: if Britain had no nuclear deterrent, he doubts many would campaign for one, but since it has Trident submarines, people would feel great unease at losing them. Status quo bias is not irrational in evolutionary terms. 'Do what you've done before' and 'do what everybody else does' are sensible heuristics for avoiding catastrophe: I did it before and I'm still alive, and if everybody does it, it's probably okay. Any organism without those defaults would be at a disadvantage.

“I've done it before. I'm still alive. Therefore, it's safe to do it again.”

The point: Preferring the familiar is an evolved safety heuristic, so new behaviours must overcome a rational reluctance.

Sources (1)

On the site of every successful restaurant, four have failed

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Rory and his late colleague Sam Tatam, author of Evolutionary Ideas, were obsessed with Darwinian experimentation. The restaurant business is pure variation and selection. It is easy to look at successful restaurants and think it is simple, but on the site of nearly every successful restaurant, four have failed previously. Feedback is rapid, and every now and then someone stumbles, deliberately or by accident, on a new formula that meets an unmet, unvoiced human need.

“On the site of every successful restaurant four restaurants have failed previously.”

The point: Innovation emerges from many cheap experiments with fast feedback, not from planning.

Sources (1)

Once you're rational you're predictable, and you can be hacked

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Discussing his book's point that ambiguity can be effective, Rory suggests Trump was a deterrent partly because nobody knew what he would do; he doubts Ukraine would have been invaded had Trump still been president. In game theory, some irrationality is intelligent. Perfectly rational people are predictable and therefore exploitable. That may be why temper and anger evolved: someone who would never lash out, even at risk to themselves, could be pushed around endlessly. Totally docile, rational people probably had few descendants.

“Once you're rational you're predictable, and once you're predictable you can be hacked.”

The point: Unpredictability and emotional retaliation are strategic assets that pure rationality lacks.

Sources (1)

Only humans and dolphins can watch television

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Rory argued in The Spectator that the ability to enjoy things virtually is a mark of high intelligence. As far as he knows, only humans and dolphins can watch TV without training; other animals don't grasp that it represents reality, and go round the back or smash it. (A reader said her mother's dik-dik antelope watched television.) Yet instead of valuing this unique gift we disparage people with terms like 'couch potato'.

“This is a unique human gift, a mark of superior intelligence, to be able to enjoy things virtually.”

The point: Virtual experience is a valuable human capacity, not an inferior substitute.

Sources (1)

Only the primatologists predicted Trump

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An academic friend told Rory that in 2016 every single person in academia thought Hillary Clinton would win, except the primatologists. Those who study apes, gorillas and chimpanzees all knew Trump was going to win. It came down, Rory suggests, to things like body language, which they are trained to read.

“Every single person in academia thought that Hillary Clinton would win, except the primatologists.”

The point: Status and body language cues can predict outcomes that rational analysis misses.

Sources (1)

Only two things are really old, conversation and dogs

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People talking, Rory notes, is an art form perhaps a quarter or half a million years old in evolutionary terms, whereas writing is five or six thousand years old at most, and everything else is younger still. The only two things that are really, really old are conversation and dogs. That may explain the appeal of podcasting.

“The only two things that are really really old: conversation and dogs.”

The point: Formats that tap deep evolutionary habits, like conversation, have an inbuilt advantage.

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Optimise for variance, not consistency

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Taleb argues the Mediterranean diet partly reflects Greek Orthodox fasting: vegan some days, vegetarian others, feasting one day a week. To optimise a complex system there is sometimes an optimal amount of variation. A Newtonian mindset sets a ventilator at a fixed level five; Taleb would vary it, three, then five, then seven, then three, because human health is antifragile and thrives on the variance found in nature.

“You should optimise for variance, not optimise for consistency.”

The point: Living systems often benefit from variation that efficiency-minded design removes.

Sources (1)

Ovulation and the rockstar

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When Taleb compares the barbell to monogamous birds whose females mate mostly with the reliable partner and occasionally with a 'rockstar', Rory adds a human parallel: women are disproportionately attracted to rockstar males around the time of ovulation. Taleb agrees that this is the barbell strategy in action, keeping a safe base while taking a small, high-upside gamble.

The point: Evolution appears to favour barbell strategies: a safe default plus occasional high-variance bets.

Sources (1)

Physicists still can't fully explain the bicycle

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Humans learn to ride bicycles easily, yet physicists still cannot fully explain how bicycles work. Seriously. The bicycle evolved through trial and error more than intentional design. Rory uses it as a reminder that something can work perfectly well long before, or without, anyone being able to say why, so demanding a theory before trying something would have prevented the bicycle.

“Physicists still cannot fully understand how bicycles work. Seriously.”

The point: Trial and error can produce things that work without anyone understanding why.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Pickup artists and the village of 150

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Hardcore rationalists argue our instincts evolved for the Serengeti and misfire today. Rory's example is pickup artists, whose strategy is to proposition every woman you like: rejected eleven times, successful on the twelfth. Most men cannot bear the humiliation. The pickup artists tell themselves we evolved in communities of about 150, where that behaviour would get you clubbed or ostracised, but in London, why not? Rory thinks such people are right some of the time, but that habit and copying others are mostly pretty good and inescapable anyway.

“Most of the time our instinctive judgements, once you understand satisficing, are actually pretty good.”

The point: Evolved instincts may be mismatched to modern life, but they are usually sensible and hard to override.

Sources (1)

Positive psychology as a vote for religious practice

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After Laurie Santos's evidence-based tips for happiness, Rory observes that the findings amount to a kind of vote of approval for religion. Saying grace before a meal is a conscious act of gratitude, and meditation arises from prayer, which is itself a kind of meditation. Santos agrees that religious traditions seem to have arrived at behavioural science through their own long selection.

“This is a kind of vote of approval for religion, isn't it?”

The point: Long-surviving rituals often encode psychological wisdom that science only later confirms.

Sources (1)

Rats that turn right one time in ten

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In a T-shaped maze where food is on the left nine times in ten, rats learn to turn left 90 per cent of the time and right 10 per cent. Scientists call this irrational, since always turning left pays more. But Rory points out that other rats exist, so if everyone turned left the right-hand food would go uneaten. Conditions might change, so it pays to keep testing the alternative. And total predictability is the fastest way to get eaten.

“A hundred per cent predictability is the fastest way to get predated on.”

The point: Apparent irrationality often comes from the experimenter's assumption of a fixed, solitary environment rather than from the animal.

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The appendix and the Spanish royal family

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The appendix was long dismissed as a useless vestige; remove it and nothing obvious happens. In 2007 Duke University researchers proposed it is a haven for useful gut bacteria, like the sourdough starter Gold Rush miners kept in a pouch round their necks, and later research found people without one were four times likelier to get C. difficile colitis. Rory likens it to the Spanish royal family: pointless or annoying most of the time, invaluable occasionally, as in Spain's transition to democracy after Franco.

“Rather like the Spanish royal family, most of the time it's pointless or annoying, but sometimes it's invaluable.”

The point: Something can be valuable without being valuable all the time, so be careful before calling it nonsense.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

The bee that dances for half an hour

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Humans instinctively attend to messages that involve something costly, whether money, media spend, craftsmanship, humour, poetry or music. Bees understand this too. When scouting a nesting site, the energy a bee puts into dancing for it is proportional to its enthusiasm. If a bee just gestured vaguely over there, nobody would care. If it jumps about for half an hour burning scarce energy, the others had better pay attention.

“The very fact that it's excitable about it and is burning scarce resources means we better pay the bee some attention.”

The point: Expenditure of scarce resources is how creatures signal sincerity and earn attention.

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The bicycle changed the gene pool

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Discussing how the bicycle changed Irish village life, letting people court someone from the next village, Rory notes that the geneticist Steve Jones made a similar point about the bicycle everywhere. We think of a bike as a slow car, but compared with walking or riding a horse at normal speed it was insanely fast, which hugely widened your sphere of operations, including whom you might meet and marry.

“We think of a bicycle as a slow car, but compared to walking the bike was insanely fast.”

The point: Judge an innovation against what it replaced, not against what came after.

Sources (1)

The body's inner finance director

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Rory shares the psychologist Nicholas Humphrey's theory, flagged as a theory: in our scarce evolutionary past, overinvesting in the immune system was dangerous, since you might freeze to death in the night. So an inner finance director allocates resources, running immunity at full tilt when it feels safe and in first gear when it doesn't. That would explain more illness in winter, and hamsters fooled into a fake summer get ill less. White coats, pills and chicken soup may be signals that free up the immune budget.

“How you treat people matters as much as how you treat people.”

The point: Placebos may work by signalling safety to a body that rations its own healing.

Sources (1)

The Chicken Church

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To show how readily we see faces, Rory shows a perfectly serious church designed by a serious architect who was thinking only of lovely roundel windows and a nice corner detail. He failed to notice that the building looks exactly like a chicken. It is not known for its windows. It is known as the Chicken Church.

“It's not known as the lovely church for the roundel windows. It's known as the Chicken Church.”

The point: Human perception imposes faces and meaning that designers working rationally fail to anticipate.

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The Dunbar number pub test

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Robin Dunbar's number, around 150, is a theoretical maximum for a fully functioning human group, where everyone knows everyone and understands how they all get on; it recurs in things like military unit sizes. Rory offers a definition of who is in your Dunbar group: someone you could walk up to in a pub while they are talking to a stranger and join the conversation without it seeming needy, weird or unnatural.

“If you were talking to someone else in a pub, I could come up and join the conversation without it seeming weird.”

The point: Group cohesion has natural size limits that organisations should respect.

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The Economist's marketing correspondent hated marketing

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For many years The Economist had a marketing correspondent who hated marketing. The only person Rory used to talk to there was the science correspondent, an evolutionary biologist. Because of costly signalling theory, evolutionary biologists really understand marketing: they know that animals and plants need to advertise themselves.

“The Economist in fact for many years had a marketing correspondent who hated marketing.”

The point: Evolutionary biology grasps marketing better than business journalism does.

Sources (1)

The email Sabbath

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Picking up a point from a primate psychologist earlier in the day, Rory notes that it seems to do primates good to take breaks from things. Religious practices of abstinence, fasting periods and festivals where people behave differently may encode that wisdom. On that basis he has long proposed an email Sabbath, a regular day off from email, though he admits he has had no success getting it off the ground.

“I've long proposed an email Sabbath but I've had no success in getting this off the ground.”

The point: Religious rituals of abstinence may carry real behavioural wisdom that modern working habits could borrow.

Sources (1)

The herd instinct is in hardware, not software

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Rory cites a book called The Primate Myth, whose author argues that although we share an ancestor with chimps and bonobos, our psychology is not chimp psychology. In behaviours such as burying the dead we are closer to elephants, horses, dolphins and dogs, because we evolved as a herd species. Because that instinct is millions of years old, it sits in hardware, not software. Consequently, we do not talk about it; we feel it.

“Because it's millions of years old, it sits in hardware, not in software. And consequently, we don't talk about it, we feel it.”

The point: Ancient instincts drive behaviour without being articulated, so research misses them.

Sources (1)

The Meeting Owl and a million years of sitting in circles

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Rory bought the first Meeting Owl in the UK, a video conferencing device that sits in the middle of the table with a 360-degree camera, zooming on whoever speaks and creating a split screen when several people talk. Why it matters: for a million years every human meeting has involved sitting in a circle around something, a fire or a boardroom table. Old video conferencing, with everyone facing the same way as if on a bus, just feels weird.

“The old video conferencing mode where you all sit as if you're on a bus facing the same way just feels weird.”

The point: Technology that fits evolved social instincts is adopted more readily than technology that fights them.

Sources (1)

The self-aware hare got eaten

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Rory cites Robert Trivers on self-deception. When chased by a dog, a hare enters a random mode, zigzagging left, right, straight, doubling back, without itself knowing its next move. If it had foreknowledge of its next jump it would give away tells, and dogs would evolve to read them like poker players. So the self-aware hare got eaten. Likewise the real why of human behaviour is hidden even from ourselves, which is why Porsche buyers cite its load-bearing capacity.

“The self-aware hare basically got eaten.”

The point: Not knowing our own motives can be adaptive, so people's stated reasons are unreliable evidence.

Sources (1)

The Soviet bread shop, brands are the unit of selection

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Soviet Marxism found brands ideologically unsatisfying, so you went into a shop called Bread Shop of the People Number 107,964 and the shelves just said bread. But branding is the unit of selection, the equivalent of the gene in evolution. If consumers cannot reward brands they like and punish those they don't, you lose the feedback that tells you whether you are creating value. Instead a bureaucrat in the ministry of food decides what counts as bread by ingredient percentages, and taste gets left out.

“Branding to some extent is the unit of selection. It's the equivalent of the gene in evolution.”

The point: Without brands there is no feedback loop to drive innovation towards what people actually value.

Sources (1)

We've built a gatherer culture

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In hunter-gatherer societies, gathering fruit and berries covers the base, while hunting has a low chance of success but massive gains. A lone hunter would starve, but in a group where some gather, hunting makes sense, so hunter-gatherer groups outgrow gatherer-only ones. It's a barbell: ensure survival with sensible things, then pursue bets with a survivable downside and limitless upside. Instead, modern companies have created a gatherer culture: 'I spent six hours today and look at all the berries.'

“I spent six hours today and look at all the berries.”

The point: Shared safety nets make high-risk, high-reward bets rational, and companies that stop 'hunting' stop growing.

Sources (1)

When the antelope run, run

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If you are an antelope and see loads of antelope running towards you at high speed, the logical reaction is to run too: you don't know what they're fleeing, but it's probably nasty for them and so for you. An economist would say factor in your search costs and go and investigate the source of the anxiety. Habit and social copying are two very powerful forces, and contrary to the perfect-information hypothesis, we would be extremely wasteful if we did not use other people's behaviour to inform our decisions.

“I don't know what the hell they're running from but it's probably nasty for them so it's probably nasty for me.”

The point: Copying others is an efficient, evolved decision shortcut, not an irrational bias.

Sources (1)

Why nobody tested variolation for Covid

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Rory thought ventilation worth exploring early, after someone in India mentioned outdoor hospitals in the 1918 flu. He also wondered why nobody tested variolation: deliberate infection with a small dose not via the lungs. His evolutionary argument: airborne viruses are recent, because cities are recent, while we have a million years of skin infection from scratches and bites, so the skin's immune system may be better. It worked for smallpox for centuries, after Lady Mary Wortley Montagu brought it from Turkey to the royal family. He stresses he is not recommending it.

“I merely said that it struck me as strange given the scale of the problem that nobody was trying this.”

The point: Evolutionary reasoning can suggest neglected options worth at least testing.

Sources (1)

Why water tastes of nothing

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Rory offers a fascinating fact about how senses reserve bandwidth for surprises. Water tastes of nothing because it is vital for survival that we detect anything polluting it. Our taste buds are calibrated not to notice water, so anything that shouldn't be there stands out. If water tasted like Cherry Dr Pepper, we wouldn't have the same heightened sensitivity to contamination.

“If water tasted like Cherry Dr Pepper, we wouldn't have the same level of heightened awareness.”

The point: Perception zeroes out the expected so that deviations become salient.

Sources (1)

Business, organisations and innovation 413

Family firms won four of five IPA effectiveness golds

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At the rigorously judged 2024 IPA Effectiveness Awards, four of the five gold winners were family-owned: McCain, Yorkshire Tea, Laithwaite's and Specsavers. The fifth, Guinness, is run rather like a family firm, and Diageo knows brands take time. So Rory asks not how to build a brand, but who can. Family firms work to several time horizons at once, next week and 15 years ahead, rather than the next quarter. The owner is on the premises with their name above the door. Without shareholders they pay proportionate attention to customers. A PLC optimises one metric, quarterly EBITDA, which nobody would accept as the measure of a successful life. He would give family firms a kite mark.

“Because they don't have shareholders, they pay proportionate attention to their customers.”

The point: Ownership with long horizons and personal reputation at stake supports the brand-building and customer focus that quarterly-driven companies neglect.

Variants: One telling lists Waitrose among the winners. Rory extends the point to founder-led firms such as Dyson, Octopus and JCB, and to anyone who visibly carries a firm's reputation; asked how a founder can scale without losing soul, he says don't sell to private equity.

Sources (14)

Reverse benchmarking, Eleven Madison Park's coffee and beer sommeliers

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When Will Guidara's Eleven Madison Park ranked 50th of the world's 50 best restaurants, he took his team to dinner at number one. Everyone took notes on what to copy. Guidara said he was not interested: they could not afford it, and the other place already did it, so nobody would notice. What was a bit disappointing? The coffee was meh, and beer drinkers, often the chefs themselves, were treated shabbily next to the wine drinkers. Back home he made a coffee-obsessed waiter the coffee sommelier and a craft-beer nut from the kitchen the beer sommelier, with a beer list and food pairings. A beer drinker expecting Sam Adams got citrus IPAs with tasting notes. Within a few years it was number one. Rory calls this reverse benchmarking.

“Doing something brilliantly which everybody else has neglected is the cheapest way to make people think you're brilliant.”

The point: Instead of copying a leader's strengths, find what the whole category neglects and do one or two of those things spectacularly well.

Variants: In one telling the rival is Per Se or the French Laundry and the problem is a cup of filter coffee at the end of a fantastic meal, explained by the peak-end rule. Rory often adds Roger Martin's 'Benchmarking is for losers' and Goodhart's law, and applies the idea to Apple competing on how a computer feels rather than on RAM.

Sources (13)

Dare to be trivial

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Ogilvy's behavioural science practice has a mantra: dare to be trivial. Economics, being Newtonian, assumes the size of an effect is proportionate to the size of the intervention, so organisations focus on the variables that are most expensive to change. But in complex systems tiny things have monumental effects. On one checkout page, automatically adding a space as you typed your mobile number brought in £3 million a year; another site added one checkout option and made $300 million more; four trivial words in a call-centre script doubled conversion. Buckminster Fuller called such a lever the trim tab. Testing small things is a great bet: fail three times in four and you still end up quids in.

“Looking for a business that's one butterfly away from being brilliant is a really interesting approach.”

The point: Look for the cheapest variable with the biggest effect, usually a perceptual one, because small interventions at leverage points often beat grand ones.

Variants: Rory adds that Darwin went to funny little places and looked at finches' beaks, and that such butterfly hunting is hard to fund because a business case has to look logical.

Sources (10)

Hire in groups and diversity takes care of itself

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Rory got his job at Ogilvy only because there were four graduate vacancies. Years later he learned the panel's thinking: three very good candidates, and for the fourth, let's take a punt on the weirdo. Hire one person at a time and you hire for conformity, because a dud is 100 per cent failure and the more boringly like us they look, the less you are blamed. Hire ten at once and you look for complementarity, so cognitive, ethnic and gender diversity arrive as a by-product of the choice process. Cars show the same thing: one-car households all owned a saloon, the compromise car. Give someone £80,000 to buy four cars and you don't know what they'll buy, but it won't be four saloons.

“Just by changing the way that choices are made you can completely transform the decisions that people make.”

The point: Changing how choices are batched changes what gets chosen: deciding several things together raises variety and lowers risk aversion, without quotas.

Variants: Rory sometimes uses houses instead of cars (one house is a conventional suburban one; two are a crash pad near work and a place on the beach) and contrasts a consulting firm's diverse group-hired graduate intake with its one-at-a-time partners.

Sources (10)

The doorman fallacy

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An old IT and consulting trick: ask a hotel what it pays its doorman, define his role as opening the door, replace him with an automatic door, claim the savings and walk away. In reality a doorman hails taxis, recognises regulars, provides security, swaps notes with other doormen about dodgy people and adds status; opening the door is perhaps 20 per cent of his value. Under gain-share agreements consultants take a cut of the savings and are never responsible for what follows: five years later the rack rate has fallen off a cliff, vagrants sleep in the entrance and the best regulars have gone. To automate a job, people first narrow its definition until a machine can do it.

“The doorman wasn't just about opening the door.”

The point: Defining a role by its most measurable function lets you automate it, claim the saving and never answer for the value destroyed.

Variants: Rory widens it to consultants and finance making the person the servant of the algorithm, and to procurement as an asymmetric function without skin in the game.

Sources (10)

Marketing and innovation are two sides of one coin

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Peter Drucker said a business has only two functions that create value, marketing and innovation; everything else is a cost. Rory goes further: they are the same thing. There are two ways to create new value. Find out what people want and work out a clever way to make it, or find out what you can make and work out a clever way to make people want it. The money is indistinguishable either way. So marketing deserves to be budgeted and judged like R&D, since both are fat-tailed. Yet business schools assumed people know what they want and value lives in the product, so all you can do is make it cheaper, and firms now treat HR and finance as valuable and marketing and innovation as costs.

“Marketing and innovation are basically the same thing.”

The point: Changing how people perceive and want something creates as much value as inventing it, so marketing belongs with R&D, not with costs.

Variants: Rory adds that Jobs, Edison and James Watt were predominantly marketers, and cites John Kay: the firms that survive 150 years, like Unilever, Nestlé and P&G, are marketing-led explorers, while finance-led efficiency buys short-term predictability at the price of fragility.

Sources (8)

Rational people have the veto; creative people only suggest

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Tell a board Product X isn't selling so we'll cut the price, the most expensive way to sell, and it is approved in about three minutes because it fits economic theory. Propose putting the price up, renaming it or advertising with an animated goat, which might work better, and you will be argued with for three years. Creative ideas must always pass cost-benefit analysis by rational people, which is probably fair. What is weird is that it never happens the other way round. No accountant says: I think the answer's 3.75, but before I present it, let me show it to some wacky people to see if they have something better. Rational people have the power of veto; creative people only the power of suggestion.

“The rational people have the power of veto, whereas the creative people only have the power of suggestion.”

The point: Organisations audit unconventional ideas for rigour but never audit logical ones for imagination, so the opportunity cost of logic is never measured.

Variants: The goat is sometimes a dancing dog. Rory says rational people go unpoliced while creative people are kept under house arrest, that the creative industry has Stockholm syndrome, and that an ad agency is about the only culture where you can be promoted for an irrational suggestion.

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Logic takes you to the same place as your competitors

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If there were a logical solution to a problem, Rory says, someone would already have found it. There is no shortage of reason, with McKinsey probably crawling over your company right now, so it pays least to be logical when everyone else is. Decisions built on the pretence that people are logical will never get you fired, but they have two problems: you might be wrong, and your logic takes you to the same place as everyone else's, the most crowded and bloody part of the market. Markets are like biology, with room for Lidl and for Waitrose. Every great idea contains something that doesn't quite make sense: alchemy that makes second-order sense rather than first-order sense.

“Your logic tends to take you to the same place as other people's logic.”

The point: Logic is a commodity, so distinctive value comes from ideas that do not obviously make sense to competitors.

Variants: Rory adds that finance, operations and air traffic control should use conventional logic while HR, R&D and marketing should not, and that analysts imposing the same metrics on every firm make them converge.

Sources (7)

Share a Coke earned the agency A$350,000

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Ogilvy Australia, working with Coca-Cola's Australian team, came up with Share a Coke: putting people's names on cans. It has run nearly every year for a decade or more in well over 100 markets (Rory has seen cans saying Share a Coke with Thor or Sigrid in Norway) and has easily made Coca-Cola over a billion dollars, partly because you buy a Coke for your friend Barry. Rory's colleague Philip Heimann worked out what Ogilvy Australia made from it: about A$350,000, not enough to buy a really bad flat in a disappointing part of Sydney. Marketers are held responsible for every penny of cost but can claim only a sliver of a breakthrough's upside; ten years on, the credit goes to sales or to supply chain.

“Not enough to buy a really bad flat in a disappointing part of Sydney.”

The point: Fat-tailed creative work is paid and judged by its costs, so the rare idea that pays for everything earns its creators almost nothing.

Variants: The number of markets varies from about 100 to 180. In some tellings the client is an unnamed American consumer-goods firm, and in one the idea is unnamed and the agency's take is about US$200,000.

Sources (7)

Abused for using a mobile phone on Oxford Street in 1989

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In 1989 Ogilvy had about five shared brick-sized phones, kept charging in a box; you signed one out and told colleagues that day's number. Walking down Oxford Street, Rory got a call and had to answer. Two people shouted abuse at him from passing cars, one a cabbie who wound down his window to yell 'wanker'. Most of his friends could not see why anyone would want a mobile phone. Try shouting that at everyone on a phone in Oxford Street now. We concertina history into 'mobiles were invented and people bought them', forgetting the 15 years when owners were resented, because a new behaviour has to break both habit and social proof at once.

“Two people shouted abuse at me from passing cars.”

The point: New behaviours carry a double penalty of habit and social disapproval, so adoption is slow and the marketing task is to speed it up, not to assume the idea sells itself.

Variants: Rory draws different lessons: the slow Bass diffusion S-curve, early adopters (as with AI) feeling lonely, people later saying 'I decided to buy one' rather than 'I was finally persuaded', and that the idea that a big idea needs no marketing is the opposite of the truth.

Sources (6)

Buc-ee's, a business built around its restrooms

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Texas chain Buc-ee's asked what would make people drive past two gas stations to reach theirs. Its answer: the person who decides where to stop is often the passenger, often female, and her issue is the restrooms. So Buc-ee's women's loos are palaces, like the Hall of Mirrors at Versailles, and billboards say 'Next Buc-ee's only 76 miles. You can hold on.' Cleaning around the clock needs huge scale, so the rest was reverse-engineered: 200 pumps, barbecue, vast retail, deer corn, the Disneyland of gas stations. It even banned trucks to keep forecourts family-friendly. The restrooms make no money themselves, but their effect on everything else is magical.

“Take the thing that everybody else is terrible at, make it brilliant.”

The point: Excel extravagantly at what everyone else does badly and it becomes the reason customers choose you, even if that part makes no money on its own.

Variants: The extra distance people will hold on varies from 10 to 60 miles. Rory sometimes credits the family owner's freedom from boring finance people, and compares Rush hairdressers, whose loos are marble where you expect a mop cupboard.

Sources (6)

Every business overspends on acquisition and underspends on retention

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Rory thinks it fair to say all businesses overinvest in acquiring customers and underinvest in experience and retention. Not because retention matters less, but because acquisition is easy and fast to measure, while retention is hard and slow, perhaps five years to prove. It is a double quantification bias: we favour numerical metrics over soft ones, and fast metrics over slow ones, which is also why salespeople out-earn customer service staff. Nobody is told off for neglecting retention, so it becomes the important email you can always snooze for one more day. When the FT asked how customer service got so bad, his answer was that business is run as a competition for cost efficiencies, not for customers.

“People favour numerical metrics over softer metrics, but they also favour fast metrics over slow metrics.”

The point: Spending follows how quickly something can be measured rather than how much it matters.

Variants: Rory would tell two-thirds of clients to cancel a few ads and hire more call-centre staff; Ocado, which can measure such things, found that giving customers a tea towel had an insane effect on future sales.

Sources (6)

Growing up in a shop is a free MBA

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Rory's father was a serial entrepreneur, converting country houses into flats and running canal boat trips, and almost all his ancestors were self-employed. If your parents run a shop, café or restaurant, he says, it is a free MBA: you see the whole business in the round, from supply chains to marketing to finance, and learn that you get people in on the food and make money on the wine. You understand business as a system, not a formula, whereas Harvard teaches marketing and accounting as separate courses. Arriving at a big organisation, he floundered for three years, baffled that one person did marketing and another finance. Hospitality jobs teach the same, so it is absurd that we deride them.

“You get to understand the business as a system, not the business as a formula.”

The point: Seeing every function of a small business at once teaches the trade-offs and interconnections that siloed training misses.

Variants: Rory suggests it may explain the success of shopkeeping families and of Americans who work through college in hospitality, and calls restaurants the Galápagos Islands of marketing because they are fast-feedback. From his family firm he also learned that marketing always worked when they did it, but it was the fire they could leave till tomorrow.

Sources (6)

Self-checkouts, supermarkets selling more carrots than they buy

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Self-checkout is fine as an option: in a hurry with five items, you scan them yourself. Then finance notices it is cheaper to make customers do the work, and the option becomes an obligation. Consultants and procurement claim credit for saving till staff. Months later comes a rash of shoplifting: some supermarkets, like Jesus at the feeding of the 5,000, were selling more carrots or onions than they bought, because people scanned avocados as carrots; you don't feel bad cheating a machine. Nobody noticed you can't do a big family shop on one, and the weekly shop is a superstore's whole raison d'être. Self-scanning would work brilliantly if only humans had three hands.

“Self-scanning would work really brilliantly if only humans had three hands.”

The point: Removing people to cut costs changes honesty, goodwill and basket size in ways the saving never counts, and nobody is blamed for the losses.

Variants: Rory confesses that once, after wiping the screen and failing with nobody to help, he simply took a 75p bag of carrots as payment for his unpaid work; in another telling a wealthy neighbour over 70 refuses to use the local Waitrose for lack of conveyor belts.

Sources (6)

The best call-centre staff should earn six figures

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Why can salespeople earn six figures but call-centre operatives never do? Not because they are more valuable, Rory says, but because salespeople can point to every penny they generate, immediately. The best call-centre staff, experienced and unusually talented, can turn an angry customer about to defect into an evangelist in one conversation, what one American agency calls a brand quake, and a customer whose problem is handled well can end up more loyal than one who never had a problem. Saving a few hundred of American Express's best card members a year would justify the pay. As automation takes the banal enquiries, the rest need someone who can break the rules, so keep fewer staff and pay them a lot.

“In a just world your very best call centre people would earn a six-figure salary.”

The point: Value that is slow or hard to attribute gets underpaid, so the people who rescue customers are starved while those who acquire them are rewarded.

Variants: Rory wants a way to tip call-centre agents (he would have pressed 1 to give a fiver like a shot) and plans an RSPCA for call centres, the most abused medium; he also calls them free feedback, where you find the problems the website can't solve.

Sources (6)

Agencies still act as if they were paid on commission

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In the late Mad Men era, agencies bought big TV campaigns and took 15 per cent commission, so they focused on what made money rather than what added value. They haven't been paid on commission since about 1992, Rory says, yet still have the muscle memory that they add value only where there is a big media budget, and every holding group tries to make agencies more efficient at what they already do instead of widening the problems they solve. His one useful discovery, he says, is that the agency mix of creativity, psychological insight and testing is valuable to far more institutions than anyone realised: Ogilvy now works on food waste, factory accidents and Thames Valley Police. Who needs a large media budget when you can arrest people?

“Who needs a large media budget when you can arrest people?”

The point: When the revenue model diverges from where value is created, firms neglect their real value and miss bigger markets.

Variants: Rory also argues agencies must tackle category problems, such as getting people to switch transport mode or go electric, not just brand problems, and counts it a success when the money comes from a department that is not marketing.

Sources (5)

Bezos's one-way and two-way doors

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Jeff Bezos distinguishes one-way doors, irreversible commitments like a vast warehouse outside Nashville that deserve rigorous diligence, from two-way doors you can walk back through if you dislike what is on the other side. Rory's point is that companies demand the same business cases and proof for both. AWS emerged when its business case was weak and being argued to death; Bezos said Amazon had to build the server capacity anyway, so if they could sell it, great, and if not, what was the downside? It is now Amazon's most profitable part. Everybody but Bezos hated Amazon Prime too. Try it, and stop if it loses money: the trial often costs less than arguing about it would have.

“The trial possibly cost less than we would have spent just arguing about it.”

The point: Match the burden of proof to reversibility: cheap, reversible experiments should be tried, not argued over, because there is never evidence for anything new.

Variants: Rory adds that we are more blame-averse than loss-averse, that marriage is a one-way door and dinner a two-way one, that a plumber can test an idea for three weeks rather than a year, and that it is easy to make arse-covering look like rigour.

Sources (5)

If procurement had planned D-Day

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In some domains, like air traffic control, you want logic and predictability: Rory does not want controllers at Arlanda reversing the runway for laughs, or mechanics tightening wheel nuts anticlockwise for the lols. In others, being logical is fatal, because a predictable general is a dead one. In Airplane!, the ex-military controller refuses to turn on the searchlights because 'that's just what they'll be expecting': the right man in the wrong job. Had procurement organised the D-Day landings, they would have insisted on crossing from Dover to Calais to minimise fuel costs, exactly where the enemy expected. The whole point of Normandy was that the crossing was longer. Marketers need a military mindset inside an air traffic control culture.

“If procurement had been in charge of the D-Day landings, they would have insisted they took place between Dover and Calais to minimise fuel costs.”

The point: Where there is an opponent, the efficient, predictable move is the one that gets trapped, so effectiveness may require deliberate inefficiency.

Sources (5)

The AO bear, interesting businesses are family-owned

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Whenever Rory sees a business doing something interesting, cute or different, it nearly always turns out to be family-owned or founder-led: Buc-ee's and H-E-B in Texas, Tebay services, Octopus Energy, Dyson, JCB. AO, under its founder John Roberts, delivers its own appliances, so the drivers keep a box of teddy bears in the van and give one when there are children or a dog in the house. Try that in a PLC in thrall to quarterly reporting and the CFO: they would demand a business case for the ROI on giving a bear to a child, a framework for surprise, and proof that a bear beats a sloth or a stuffed aardvark. Public companies cannot be eccentric, which makes them easy to compete with.

“How can you prove the bear is better than a stuffed aardvark?”

The point: Delight comes from arbitrary, subjective decisions that only owners free of formal justification can make.

Variants: In two tellings the stress is on comparison: we never compare family firms like for like with PLCs because they do not publish the same reports, and a PLC's need for constant shareholder validation is a narrow fitness function.

Sources (5)

Almost anyone will give you an hour on Zoom for $1,000

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Normalised video calling has created a spot market in human talent. Nearly everyone in the world, not Obama or Beckham but even a Nobel-winning economist, will give you an hour on Zoom for about a thousand dollars. A face-to-face meeting costs half a day, or two or three days overseas, takes months to organise, might cost £15,000 in travel and would be vetoed by finance. For a Zoom call you just come in from the beach and have the decency to put a shirt on; Rory has done it on holiday. People say it isn't as good as meeting in person, but someone in Chile and someone in New Zealand would never have met at all. Rory himself is valuable for half an hour, not a week.

“Nearly everybody in the world will give you an hour of their time on Zoom for round about a thousand bucks.”

The point: Judge a new medium against what it actually replaces, often nothing; cheap, short access to expertise is an underrated economic shift.

Variants: In one telling Rory suggests that if home workers are 3 per cent less productive, they could be offered an extra hour a day in return, and nearly all would accept.

Sources (4)

Ass-covering disguised as rigour

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A huge amount of business activity, Rory says, is ass-covering disguised as rigour. The longer the process and the more people involved, the less likely the blame falls on you. Gerd Gigerenzer calls it defensive decision-making: in medicine as in business, people make not the best decision but the one easiest to defend, or disperse blame by deciding in committee, which is why so many meetings are called. You cannot admit a decision was intuitive, so you build a framework to make it look rational, and use research as a drunk uses a lamp post, for support rather than illumination. Asked what would happen without defensive decision-making, Gigerenzer said you could all go home on Wednesday afternoon.

“A huge amount of the activity that goes on within businesses is ass-covering disguised as rigour.”

The point: Much organisational process exists to spread or avoid blame rather than to improve decisions, and it crowds out judgement.

Variants: Rory estimates that 70 per cent of corporate work is now arse-covering, which drives people to go it alone; in another telling he reveals advertising's secret, that there are checklists but no real process: you talk until you get lucky.

Sources (4)

Disrupt by changing where the decision happens, Argos and easyJet

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Many businesses of Rory's early career won not by offering something economically different but by changing where the purchase decision happened. Everyone chose toasters in a shop; then Argos came along and you chose your toaster at home, possibly on the toilet, browsing the catalogue. Direct Line let you phone instead of visiting a broker. For the first 25 years of his life, flying meant a travel agent; easyJet, before the internet, painted its phone number on the side of the plane, so you picked up the phone instead. Change the context, medium or channel of a decision and the usual brand hierarchies and winner-takes-all effects can disappear.

“Argos comes along, you choose your toaster on the toilet.”

The point: Going head to head with a leader is slow and costly; moving the point of decision can reset the category hierarchy.

Variants: Rory applies it to AI and voice: if the default interface shifts from screen to voice, it could threaten Google, which is why high-street banks spend hundreds of millions on apps just to stay within customers' threshold of tolerance.

Sources (4)

Easier to be fired for being irrational than unimaginative

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It is much easier to be fired for being irrational than for being unimaginative. Make a rational decision and, whatever the consequences, you keep your job. Make a weird decision that goes well and others claim the credit; if it goes badly, you are out. So in large companies the question becomes not 'can I make a good decision?' but 'if things go wrong, how well can I defend it?' A soft drinks executive who proposes a drink that tastes nicer than Coke, costs less and comes in a bigger can is in no trouble even if it fails. A logical answer is not a good answer, just one that is easy to defend: logic mostly serves as an alibi. We have plenty of logical people; what we lack is imaginative ones.

“It's much easier to get fired for being irrational than it is for being unimaginative.”

The point: Institutions punish illogical failure but never unimaginative failure, so people choose defensible ideas over good ones.

Sources (4)

It's very hard to compete with crap and free

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Rory worries less about AI's superpowers than about its economics. After a trillion dollars of investment, the bill will come due, and with most revenue so far coming from consumers, vendors will turn to businesses. The easiest pitch is cost savings: immediate and quantifiable, while value creation is deferred and uncertain, and finance almost always prefers the former. For quarterly-obsessed PLCs, cost savings are like crack, and once that narrative takes hold it becomes self-fulfilling. In customer service you can argue for good and expensive over cheap and pretty good, but crap and free is formidable catnip for anyone desperate to hit a forecast, so he foresees acts of barbarity enacted on consumers by cost-driven imperatives.

“You can compete with cheap and crap by being good and expensive, but crap and free is a formidable kind of catnip.”

The point: When a technology must pay back fast, it gets sold on certain savings rather than uncertain value, and free low-quality automation drives out better service.

Variants: Rory predicts that family-owned and founder-led firms, with longer horizons, will instead ask how to use AI to do something amazing, even if it takes three years.

Sources (4)

James Dyson, a customer's call is an honour

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Someone who worked with James Dyson for 12 years told Rory about presenting call-centre efficiency statistics to him: average wait times, average handling costs. Dyson stopped the presentation halfway. He was not interested in any of it: if one of our customers chooses to telephone us, we should treat it as an honour and respond accordingly. Rory's late father, a frugal half-Scot, owned three or four Dysons, one per floor, despite the price. His first had a missing or faulty part; he rang, the problem was solved, and the part arrived free the next day. From then on he never considered another brand. Rory calls such moments brand quakes, and says the call centre might be your best advertising.

“If one of our customers chooses to telephone us, we should treat it as an honour and respond accordingly.”

The point: Treat customer contact as a chance to create loyalty, not a cost to minimise.

Sources (4)

Let customers choose who delivers

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Rory is convinced online retailers should let customers choose the delivery company, charging a premium for, say, overnight UPS if needed. Many consumers have a strong aversion to one carrier, or a relationship with their postman or local driver; someone living alone in the country may hate random strangers turning up at a house full of antiques. If there is a 10 per cent chance an unwanted firm delivers, some will not order at all. And if a chosen courier fails, customers blame themselves or the courier, not you. Yet the decision is taken not by marketing but by procurement, which wants the biggest rebate from routing everything through one operator and gets no credit for the sales lost.

“If something goes wrong with the delivery, they'll blame themselves, they won't blame you.”

The point: A small choice shifts blame and lifts sales, but cost-focused functions never offer it because they are not credited with the revenue.

Sources (4)

The bacon sandwich café, builder's tea or champagne

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Rory's free business idea is a café called Bacon Sandwich that sells only bacon sandwiches: roll or baguette, crispy or soft, perfected by research. If you only do one thing, people assume you must be damn good at it; nobody visits a tool-hire shop and oyster bar. The only drinks are builder's tea and champagne. And one gratuitous perversity: brown sauce, but no ketchup, designed to polarise. It defies economic logic, except that passionate people have rules, and a narrow offer is a costly signal of sincerity: if you serve only four things and are still in business, they must be good. He stresses it is a thought experiment, but hospitality is full of such reverse psychology.

“Everybody assumes because you only do that one thing, you've got to be really damn good at it.”

The point: Extreme focus and deliberate refusals signal expertise and commitment, and can support a premium price.

Variants: In one telling Rory cites Alex Hormozi's argument that specialisation enables premiumisation.

Sources (4)

The perfect office is half library, half pub

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The open-plan office does what many rational processes do: it optimises for the average, so it is neither a library nor a pub. You can't chat freely without disturbing people, and you can't find silence and solitude; people email each other across the table, and it is too noisy for video calls. Rory's perfect office is half library, half pub. One half is hyper-social, for meetings, recognition and serendipity, serving people with quiet home lives who need to commune. The other is a withdrawal space where you don't talk, for people with noisy home lives who need to escape. David Ogilvy said he never wrote anything in the office, too many distractions; his books and ads were written at home.

“What you actually need in an office is half library, half pub.”

The point: Designing for the average serves nobody; serve opposite needs separately rather than compromising between them.

Variants: Rory links it to neurodiversity and the explore-exploit trade-off, and notes that some unsignposted lavatories in his building have a suspiciously high occupancy rate, probably used as escape pods.

Sources (4)

A marketing comment in a board meeting is like farting

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Rory has occasionally sat on boards as a non-executive. Ten people say the product isn't selling, so drop the price; amid talk of 3.75 being down on last year, he sits at the back wanting to ask, 'Have you thought about making it pink?' He knows the second he says it, it will be like passing wind: a social embarrassment that wipes out his status. Mention soft toys in a board meeting and you look like a total idiot. So putting one marketer on the board doesn't fix things; they feel lonely and stay quiet, and only about 3 per cent of board time goes on marketing. His answer is a separate customer board, and perhaps an employee board, running in parallel with the main one.

“If you make a marketing comment in a board meeting, it's a bit like farting.”

The point: Lateral ideas need their own forum with its own status, or financial talk will always crowd them out.

Variants: Aviva's marketing director holds a customer day for the whole board; Rory notes that family businesses do this automatically.

Sources (3)

Ask how many electric car owners go back

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Everyone discusses electric cars through adoption statistics, legislation and incentives. Rory thinks the interesting fact is that hardly anyone goes back: J.D. Power records around 98 per cent satisfaction, and only about 5 per cent revert to petrol. Polling a room, he typically finds just one EV owner thinking of returning. Adoption of anything significant follows a slow sigmoid curve, so the speed of uptake tells you little; the stickiness of conversion tells you whether it will win. Many technologies are ratchets: nobody who switches to an automatic car goes back, and nobody really wants an air fryer, but nobody who gets one gets rid of it.

“The stickiness of the new behaviour is more important than the speed at which the behaviour gets adopted in the first place.”

The point: Low reversion predicts eventual dominance better than early adoption speed.

Variants: Rory recalls being laughed at in 1997 for buying groceries online, when a Punch cover joked that using the internet was as sad a hobby as trainspotting.

Sources (3)

Bletchley Park hired the person, then found the role

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Hiring to fill a defined role is considered standard. But Rory cites a history of British intelligence by a former head of GCHQ: from Bletchley Park onwards, they often hired someone mentally unusual and then found a role for them. They used skill at the Daily Telegraph cryptic crossword as a heuristic, partly because solvers learn the setter's foibles, a tacit pattern recognition that upfront rationality can't replicate. Vince Lombardi's maxim was similar: hire the best athletes, not a position. By defining what we want in advance we create an artificial bottleneck that massively limits the talent pool, and a varied CV is treated as a problem only because hiring is built around slots.

“By defining what we want in advance we're massively limiting the talent pool from which we can draw.”

The point: Role-first hiring screens out unusual, versatile people whose value appears only once a role is shaped around them.

Sources (3)

Bond the team by stranding it

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Offices are poor places for bonding; you bond people by taking them somewhere unfamiliar. Rory's joke: to build team spirit, take everyone to Paris on the Eurostar and accidentally on purpose fail to buy return tickets, or take them to Heathrow on the promise of Paris and announce the flight is cancelled. Four hours together, at the Gare du Nord Five Guys, united in disdain for your incompetence, and they are bonded. As Bob Dylan sings in Brownsville Girl, people who have suffered together have more in common than those who are most content. There is a real precedent: Coca-Cola's 'I'd Like to Teach the World to Sing' was, he thinks, conceived when stranded passengers bonded around the Coke machine during an overnight delay at an Irish airport.

“Isn't it strange how people who've suffered together have more in common than those who are most content.”

The point: Shared unfamiliar experiences, even mildly uncomfortable ones, build bonds that routine office life cannot.

Variants: Rory suggests ring-fencing some office-rent savings for staff trips, such as office space by the sea in Margate or Brighton, and notes that Carry On films are built around the factory outing.

Sources (3)

Companies that last a century are customer-led

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John Kay, author of Obliquity and a tireless critic of the shareholder value movement, notes that the companies that last a hundred years in the FTSE or Fortune 500 tend to be consumer goods firms with big marketing functions: Nestlé, Procter & Gamble, Unilever, Reckitt, Coca-Cola. Pursuing a single metric like shareholder value is less creative and more likely to destroy value, even for shareholders, than triangulating customers, staff, owners and society. Rory shared this with Dan Davies, who added a simple point: customers actually live in the real world. Focus on the customer and you are anchored to reality; focus on shareholders and you chase arbitrary metrics. Kay expects firms like Google to look less impressive in 20 years.

“Customers actually live in the real world.”

The point: Customer focus anchors a company to reality and sustains it, while internal financial targets let it drift.

Sources (3)

Count how often the passengers laugh

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If you use the same metrics as everybody else, you end up the same as everybody else, so a brand needs some metrics exclusively its own. In San Antonio, Rory met a company running quirky six-seat electric vehicles that waddle around town, free to ride, funded by ads and by bars paying for a stop outside. Measured on the same metrics as its competitors, it asked for one of its own. Since the vehicles are slightly comical, Rory suggested measuring how often passengers laugh during a journey: give the driver a clicker. Not right for British Airways business class, but it is what makes them different from a bus, and it will only succeed by being fun.

“It's not just what makes us good, it's what makes us us.”

The point: Bespoke metrics that capture what makes you different stop standard ones pulling you into sameness.

Variants: Rory extends it to people: a would-be sculptor whose parents want a lawyer needs self-defined measures of success too.

Sources (3)

Decca's real mistake, you could only sign one band

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On 1 January 1962 the Beatles auditioned for Decca, and Mike Smith signed Brian Poole and the Tremeloes instead, a decision studied as one of the worst in business history. Partly it was cost: the Tremeloes lived near London and could come in on a travelcard, while the Beatles needed four returns from Liverpool Lime Street. Rory absolves Smith. The Tremeloes were a reliably good band who had number ones and lasted 15 to 20 years; the Beatles were the wild card. The real error was by whoever said he could sign only one band. Allowed only one, people always take the safe bet, because eccentricity draws more blame than boredom. He should have signed both.

“When we're only allowed to do one, we'll always do the safe bet.”

The point: Forcing a single choice guarantees the conservative option; allowing a portfolio lets the wild card in.

Variants: In one telling the lesson differs: on what was known (mostly covers and an unremarkable Love Me Do) rejecting the Beatles was reasonable, but Brian Epstein agreed they were pretty crap and said he could make them into something, because real decisions depend on potential, not extrapolation.

Sources (3)

McDonald's, no choice, but really fast

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The American diner was obsessed with choice: eggs over easy, sunny side up, hundreds of phrases for customising a meal and swapping one sausage for another. McDonald's applied the Detroit car-plant model to burgers and changed the metric completely: you can't have any choice, but you get the food really fast. It cut the menu to a handful of items prepared with no delay. Surprise, surprise: humans are spectacularly impatient and love instant gratification. In every business, Rory says, the measure by which people compare is subject to rapid and unpredictable change, and pig-headed founders often win by ignoring what the category assumes matters.

“You can't have any choice, but you get the food really fast.”

The point: Redefining which dimension of value matters, rather than beating rivals on theirs, can create a category.

Variants: In one telling Rory pairs it with Uber, which ignored taxi metrics and sold certainty while waiting and no hassle when leaving.

Sources (3)

Measure the team, not the individual

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Spreadsheets made it possible to measure individuals, so we did, and teams became silos. Rory argues productivity should be measured at team level, because a team left alone divides work intelligently by strengths. Octopus Energy and Shopify run customer service in teams of about ten, sports-team size, measured on customers looked after and how happy they are, not call times. At Shopify it looked inefficient beside one supervisor managing 150 by proxy metrics, but it had the company's highest staff satisfaction and retention: teams know regular customers ('Dave's on again about his meter') and cover for each other. The PA has almost vanished because each person is seen as a cost, yet within a team a PA is a huge productivity gain.

“You should only measure productivity really at the level of a team, not at the level of an individual.”

The point: Individual metrics miss how people complement each other, so reward the group's outcome and let it organise itself.

Variants: Rory notes that Shackleton hired one man for his Antarctic voyage because he was funny, and that in a small team, faking illness means lying to friends rather than to remote management.

Sources (3)

Obliquity, profit is best pursued indirectly

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Drawing on John Kay's Obliquity, which he calls one of the greatest books he has read, Rory argues that problems involving people are seldom solved by the most direct route. The best way to be happy is not to try, but to find an absorbing purpose. You are more likely to have children by pursuing romance than by pursuing procreation. Likewise the most profitable businesses are not those chasing profit hardest, but those pursuing a motivating end for which profit is a vital measure. Jobs, Knight, Kellogg, Ford, Hewlett and Packard never set out mainly to get rich, and their firms made more as a result. Business is a complex system: as Taleb says, a cat is not a washing machine.

“Profitability is best pursued obliquely.”

The point: In complex human systems goals are often best reached indirectly, so single-minded pursuit of profit can undermine it.

Variants: Rory argues the shareholder value movement is the direct approach, and sets the motives of customers, staff and owners against each other.

Sources (3)

Ocado's green van

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Ocado wanted customers in the same area to book deliveries at the same time. An economist would have cut the delivery price whenever a neighbour had already booked, a scheme that could even be gamed. Ocado did not change the price at all. It simply marked those slots with a little green van and a note that a van is already delivering in your area then, so choosing it saves fuel. Rory is not sure whether it works through altruism, choice reduction or something else. When he asked how effective it was, they said the figures were confidential, but added: 'Let me just say this: you wouldn't believe it.'

“They just kept the prices the same and they made the van green.”

The point: A cheap signal that makes the decent choice easy can shift behaviour that economists would try to buy with price cuts.

Variants: Rory draws the lesson that business should assume consumers are basically well-intentioned, or business becomes less pleasant.

Sources (3)

Procurement claims every saving, never the value destroyed

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Procurement, and finance more generally, are in Rory's view fundamentally dubious disciplines, because they can claim the credit for every penny they save within their own domain without ever being held responsible for the value they destroy outside it. Bonus someone on cost reduction and you reward any cut, whatever follows. Marketing faces the mirror image: held responsible for every penny it spends, judged by finance with Excel and thin-tailed maths, and unable to claim the upside of outliers like Share a Coke or 'Member since' on the Amex card. The Sevenoaks trolley coin is the pattern: a rule that is rational inside one narrow domain, with the cost borne by the wider business.

“They can claim the credit for value created within their own domain without ever being held responsible for value destroyed outside it.”

The point: A function rewarded for visible savings but never blamed for hidden losses will keep imposing costs on the rest of the system.

Variants: In one telling Rory adds that procurement fetishises like-for-like comparison: suppliers offering the same rate for half the hours were told to quote the old hours so they could be compared.

Sources (3)

Steve Jobs asked what it feels like

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In 1970s Silicon Valley everyone asked the same question: what can a computer do? How much memory, how fast a processor? Steve Jobs asked a different one: yes, but what does it feel like while you're doing it? He asked aesthetic and emotional questions in an industry obsessed with technical ones. Rory sees this as an almost unfailing trick for innovation and brand-building: spot that everyone is preoccupied with a metric past its sell-by date, and invent one of your own, often an emotional one rather than time, cost or distance. What is easy to measure always gets overweighted. If you want to be a brand, some of what you measure and pursue must be yours alone.

“Everybody was asking what can a computer do, and Steve Jobs asked what does it feel like while you're doing it.”

The point: Competing on a dimension rivals neglect, often an emotional one, escapes the race to the bottom on shared metrics.

Variants: Rory compares brands with people: to be an individual, some of your success metrics must be your own, not inherited from your parents.

Sources (3)

Thank Zoom it's Friday, or a small pandemic

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Rory was long fascinated by why video conferencing was adopted so slowly, which he called the Fermat's Last Theorem of behavioural science. In August 2019 he met Zoom's marketing director. Citing Deming, that to optimise the system you must sub-optimise the parts, he suggested solving the coordination problem with shared rules, such as making Friday the video day, and a campaign called Thank Zoom It's Friday. As she left he quipped that what she really needed was a major transport strike or a small pandemic, a line he now winces to recall. To him it proves there is no innovation without marketing: an invention that changes no behaviour is of theoretical interest only.

“Of course what you really need is a major transport strike or a small pandemic.”

The point: Technologies like video calling need coordinated norms, not just individually rational use, and a shock can supply what marketing could not.

Sources (3)

The entrepreneur sees arbitrage where the bureaucrat sees a threat

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Tell someone in a big business a counterintuitive insight about behaviour and they get angry: it messes with their neat, deterministic model of the world, the 'Ricardian vice' of forcing the territory to fit the map. That is why mainstream economists shunned the first behavioural economists. Tell an entrepreneur 'isn't it weird that people do this instead of that?' and they are all over it, however anecdotal: if I know this and nobody else does, that's a market opportunity. An entrepreneur doesn't want to know how to be right like everybody else, but what competitors are wrong about. Everyone assumed people wanted cabs to arrive faster; with a little map they don't mind. Kaching: unexplored space.

“The entrepreneurial mindset sees any unusual behaviour as an arbitrage opportunity.”

The point: Anomalies are opportunities to people trying to exploit the world and threats to people protecting a model of it, so bureaucracies miss them.

Variants: Rory found this when he started pitching beyond marketing directors, and links it to growing up in his father's business, a free MBA in noticing things.

Sources (3)

The oven chip saved the home insurers

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What was the biggest thing ever to make UK home contents insurance more lucrative? Not actuarial tables or smoke detectors, says Rory, but McCain's oven chip. Through his childhood people cooked chips daily in pans of fat, and chip-pan fires were the bane of insurers: besides the fire damage, practically the whole ground floor needed repainting and refurnishing because everything was coated in burnt fat. The oven chip, with a nod to the air fryer, was a glorious day for Britain's home insurers. The answer to your problem may come from somewhere completely left field, so you need to notice it, and be curious enough to raise your odds of getting lucky.

“The biggest thing to happen in home contents insurance in 30 years was the invention of the oven chip.”

The point: Solutions often arrive from unrelated industries, so curiosity and noticing beat narrow expertise.

Variants: In one telling Rory adds that since the oven chip the biggest home claims are escape of water, so insurers, not homeowners, should pay for leak detectors.

Sources (3)

The penny post lost money because nobody knew anyone in Glasgow

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In 1840 Rowland Hill, with Charles Babbage's mathematical help, showed that once letters were consolidated on trunk routes the cost per mile was tiny: almost all the cost lay in collection, sorting and last-mile delivery. Distance was nearly irrelevant, so London's local penny post could become a flat national rate, and later an imperial one. Yet like many network goods it lost money for its first few years, because nobody knew anybody in Glasgow: people had never written to anyone 300 miles away, assuming it cost a guinea, rather like owning the first fax machine. Behaviour change is sigmoid, slow before critical mass, so it had to be subsidised.

“It lost money for the first three years because nobody knew anybody in Glasgow.”

The point: Network innovations need patient support until the behaviours that give them value have formed.

Variants: Rory applies it to EV charging, and notes that by 1910 Ramanujan could write to G. H. Hardy in Cambridge for a penny.

Sources (3)

The £25,000 idea worth £10 million a year

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About the third client of Ogilvy's new behavioural science practice was told something was wrong with its website design. The team redesigned the choice architecture for £25,000, and that year and every year since it has earned the client around £10 million of incremental, high-margin revenue. Rory thought they had it made. The client never came back; he genuinely suspects someone decided they did not want to make too much money in one year, because then what would they do next year? It is just as bad for the client team: they had to account for the £25,000, but after the first year got no credit for the idea's compounding value. Nothing you did 13 months ago comes back into your credit balance.

“We don't want to make too much money in one year, because then what will we do next year?”

The point: Annual accounting books an idea's cost but forgets its compounding returns, so it starves the ideas that create most value.

Variants: One telling names the client as an airline, frames the point as judging marketing like pharmaceutical R&D (nobody fires a lab for not inventing a blockbuster this month), and has Rory telling the airline its UX people should be the best paid in the building. The revenue is given as £10 to £12 million a year.

Sources (3)

When it was novel it was crap

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Why did video calling take so long, when it gave Rory two hours a day back? His theory: when it was novel it was crap, and by the time it stopped being crap it was no longer novel. The two never overlapped, so there was never a wow moment until Zoom and a mass enforced experiment. While video was 5 per cent of what we did, its downside was noticeable and its upside wasn't. First impressions stick: his last coach trip was around 1983, three hours with no toilet, and his view of coaches is stuck there. YouTube was similar, pixelated phone footage when new; now, with Premium, it is the one part of the internet with no annoying qualities.

“When it was novel it was crap, and by the time it stopped being crap it was no longer novel.”

The point: A technology needs a moment of being both new and good; first impressions of an immature version persist, so mature products may need relaunching.

Variants: Rory admits he visited the Cambridge coffee-pot webcam 30 times for sheer novelty.

Sources (3)

Without a way to sell it, it is only an invention

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In startups the marketing person is typically the last to be appointed, which Rory calls a fundamental mistake: until you have an idea about how to sell something, you haven't got an innovation, only an invention. Stewart Butterfield, of Slack and Flickr, said the best measure of innovation is change in human behaviour. Big ideas need big behaviour change, and while small behaviours respond to advertising, big behaviours require it. Rory's image is a missile bunker where two people must turn keys at once: one opens the technological door, real benefits; the other the marketing door, people appreciating them and feeling comfortable changing. He teases Octopus's Greg Jackson that without the big pink octopus he would still have 20,000 customers.

“Until you've got an idea about how to sell something you haven't got an innovation, you've just got an invention.”

The point: Getting people to adopt a new behaviour is half of innovation, so marketing belongs at the start, not bolted on at the end.

Sources (3)

You can't cut a Sudoku into nine squares

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Large businesses assume that optimising each part will optimise the whole, but optimise the parts of a complex system and the whole is, by definition, sub-optimal. Rory's image: you cannot cut a Sudoku into nine squares, hand them to nine different people and ask each to solve their bit. It is only solvable by someone who sees the whole grid; like a crossword, if you can't solve three across, you try two down. He calls the separation of media and creative agencies, done for financial reasons with no argument that the work would improve, the most ridiculous decision imaginable: now media people have never met a copywriter. Most people in organisations have been handed a quarter of the Sudoku.

“You can't cut a Sudoku into nine squares, hand them out to nine different people and say can you solve your bit.”

The point: Interdependent problems need someone who sees the whole system; dividing them up destroys the solution.

Sources (3)

A post-rationalising species

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A fundamental finding of psychology, Rory says, is that we don't know what we want or why we do what we do. Emotions drive behaviour, and we don't know what in our minds gives rise to them, so we act instinctively and write a rational-sounding story afterwards. As an anthropologist put it, humans are not a rational species but a post-rationalising one: we have evolved the brain of a lawyer, building a backstory to defend our actions. As a line often misattributed to David Ogilvy puts it, people don't think what they feel, don't say what they think and don't do what they say. So asking people why they did something will mislead you, and taking them literally is enormously expensive.

“Humans are not a rational species, they're a post-rationalising species.”

The point: Stated reasons are reconstructions after the fact, so research that relies on them misdirects effort; watch what people do instead.

Variants: Rory also uses it as a defence of capitalism: the only way to find out what people want is to make lots of different things and see what they do.

Sources (2)

Alexa, cheaper to send everyone an alarm clock

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Amazon spent billions developing Alexa, perhaps as a defensive moat in case people started dealing with companies by voice rather than point and click, and in the hope it would become a channel for ordering without a screen. In the event, 90 per cent of the questions are what time is it, set an alarm for 7:30 and what's the weather today. If that is all it became, Rory says, it would have been cheaper to send everybody in the world a thermometer and an alarm clock, or an egg timer and a barometer. The real question about AI is not which model is better, but which interface is optimal for which task.

“It would have been cheaper for Amazon to send everybody in the world a thermometer and an alarm clock than to develop Alexa.”

The point: People use a technology for what suits its interface, not for what its makers planned, so the interface matters more than raw capability.

Sources (2)

America's best car salesman sold the next car

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Rory's first boss, the direct marketing guru Drayton Bird, told of America's most successful car salesman. Asked his secret, the man said every other salesman asks how to sell this person a car and stop them walking out without one. He asked a different question: what can I do now that makes it absolutely certain they come to me when they need their next car? One way was short-term bad: downselling. 'Honestly, you don't need this; I'd buy the slightly cheaper one, it's nearly as good.' That builds enormous trust and mutuality. Rory suspects that, judged on short-term attributable metrics, he looked mildly unsuccessful for his first three years.

“What can I do now that makes it absolutely certain that they'll come to me when they need to buy their next car?”

The point: Optimising for the next sale rather than this one sacrifices short-term transactions for trust and long-term loyalty.

Sources (2)

Be good at two interconnected things

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When young people ask Rory what they should do, he says it doesn't much matter, but try to be reasonably good at more than one thing, perhaps two that are interconnected. Try to be truly great at just one thing and there will always be 15 people in the world who are better than you. Combine two slightly eccentric skills, or real depth in one field with breadth across related ones, and you might be better than anybody else at that combination. It is simple statistics, and he calls it his greatest life lesson.

“If you combine two slightly eccentric things you might actually be better than anybody else.”

The point: An uncommon combination of skills creates a niche with little competition, while single-track excellence faces many rivals.

Sources (2)

Being chatted up versus chatting up

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Rory asks audiences two questions: how many have a house on the market, and how many would sell if an attractive offer came out of the blue? Everywhere, from Ireland to Canada, the ratio is about four to one. Experiments show the same: send personal letters to people whose homes aren't for sale, expressing interest, and two or three in ten get in touch. Perhaps they hate estate agents or commission, but he thinks it is psychological: there is a difference between chatting someone up and being chatted up. You wouldn't approach George Clooney, but if he approached you, you might rethink. Startups such as Ostrich, which let owners be open to offers without listing, tap this hidden supply.

“There's a difference between chatting someone up and being chatted up.”

The point: Who initiates a transaction changes willingness to trade, so removing the fear and hassle of going first can reveal a much larger market.

Variants: Rory imagines the result as a sort of estate-agent Ashley Madison.

Sources (2)

Better to be Range Rover than seventh in someone else's category

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Marketers do God's work, Rory says, because marketing believes in differentiation: better to own a distinct mental category and dominate it than to be number seven in someone else's; better to be Range Rover than the seventh maker of the same thing. Crediting Roger Martin, he says economists' fantasy of firms competing head-on, cutting prices to supply the same thing, rests on the false premise that people know what they want. When nobody differentiates, everybody suffers: investors get a smaller category, firms enter a death spiral of head-to-head competition, and consumers get less choice. In regulated telecoms or insurance, where all compete on one dimension, you get red-ocean competition and nobody wins.

“When you don't create differentiation, everybody suffers.”

The point: Differentiation enlarges value for investors, firms and consumers alike, while rational convergence produces a race to the bottom.

Sources (2)

Choose the winner, then backfill the scorecard

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In agency pitches, procurement hands out a balanced scorecard: chemistry, strategy, creative flair, operations, price, each weighted, and the highest total wins. Ask anyone after a few drinks whether they really added up the scores and they admit they chose who they wanted and backfilled the numbers. The weighting is daft anyway: if chemistry is ten marks out of 100 but you loathe the people, you will produce nothing good and the other 90 are irrelevant. Rory's lesson, from the book Noise: build the shortlist rigorously, then openly leave the final choice to people's emotional judgement. They will happily exercise that autonomy instead of corrupting the process before it.

“I chose who I wanted to win and I backfilled the numbers.”

The point: Additive scoring misrepresents non-linear judgement; use rigour to shortlist and let people choose honestly at the end, or they will game the system.

Sources (2)

Cost reduction and regulatory paranoia

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Make every decision granular, approved by finance, compliance and HR, and only a few motives for activity survive: cost reduction, not investment; regulatory paranoia, don't get sued or fall foul of the regulator; and reputational paranoia, don't create a scandal. HR began as the employee's friend and became a blame- and litigation-avoidance exercise. Only marketing, innovation and R&D run against these modes, and over-controlled companies can no longer do either well, because marketing is a casino with good odds but unpredictable payouts. Rory's pessimism about AI follows: after insane spending the bill is coming due, and the easiest way to sell anything to businesses stuck in these modes is cost reduction.

“Most businesses only have two principal modes, one of which is cost reduction and the other one is effectively regulatory paranoia.”

The point: Over-controlled organisations default to defensive motives and lose the capacity to invest, build brands or innovate.

Sources (2)

Electrification paid off only with many small motors

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Factories once ran everything off one huge steam engine through rotating shafts, with reinforced floors and frequent accidents because the machinery ran constantly. When the electric motor arrived, they replaced the big steam engine with a big electric motor, and the gains were trivial. Only when they rethought production did they see that small electric motors, unlike small steam engines, are excellent: each machine got its own motor, could be switched off when idle and placed anywhere. Then, in the 1920s and 1930s, came the huge gains. The technology only delivered when the process was reinvented around it. Network technologies are similar: the world's only telephone is of no use to you.

“It was only when they reinvented the process around the technology that the technology really delivered its benefits.”

The point: New technology bolted onto old processes yields little; the gains come from redesigning the system and behaviour around it.

Variants: Rory asks the same question of cheap AI-made content; in another telling, citing Noah Smith, he says the pandemic did this for video calling perhaps seven years early.

Sources (2)

Email puts the burden of importance on the reader

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One of the worst mistakes we ever made, Rory says, was making email instantaneous. Because something important and time-sensitive might have arrived, everyone checks constantly, when most messages are 'the window cleaners are in on Wednesday'. The burden of deciding what matters falls on every recipient rather than on the one sender. Email technically solved this with a high-importance flag, but nobody uses it except slightly nutty people and spammers. It should have had a two-hour delay unless flagged urgent. Ten ten-minute chunks of time are not one 100-minute block, as Paul Graham's essay on the maker's schedule argues, so setting your server to fetch mail every two or three hours is a great productivity gain.

“The burden of determining what's important falls on the recipient, not on the sender.”

The point: Systems that make receivers triage everything impose constant vigilance costs; a small built-in delay can make the whole system more productive.

Variants: Rory's own partial fix is a second phone.

Sources (2)

Explore and exploit are a Möbius strip, not a trade-off

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AI people understand what finance does not, Rory says: the explore-exploit trade-off. Except it isn't a trade-off. It is a Möbius strip, or yin and yang: exploitation funds the exploration, and exploration informs what you exploit and keeps it current. The two run on different maths. Exploit work is a short-term efficiency game you can judge by simple cost-benefit, energy in versus energy out. Explore work, like scout bees or pharmaceutical research where one project in a hundred pays off, must accept wasted journeys. So innovation and marketing need different accounting, and in them the average is a dangerous distraction, because averaging removes the outliers where insight lives.

“Exploitation funds the exploration, but the exploration informs the exploitation.”

The point: Discovery and efficiency depend on each other, so judging exploratory work by exploitation metrics destroys it.

Sources (2)

Five solar panels on one street beat ten spread ten miles apart

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Rory was enthused to work with the network scientist Tom Ridges of Herdify because of one sentence: he would rather sell five solar panels to five people on the same street than ten to ten people who live ten miles apart. The visible behaviour of people like us nearby is a massive force on behaviour that we are unaware of, that market research misses and metrics ignore. Clustering creates social proof: a 'super-spreader event' around 16 Ambleside Avenue, after which panels stop looking weird and everybody in the district gets them. A finance director prefers ten sales; explaining that fewer sales to connected people is better will be hard, but it is completely right.

“I would rather sell five solar panels to five people who lived on the same street than sell 10 solar panels to 10 people who all live 10 miles apart.”

The point: Clustered adoption creates social proof that scattered sales never do, so concentrate rather than spread.

Sources (2)

Fix the traffic lights before widening the road

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Rory cites Eli Goldratt's The Goal and the theory of constraints: to increase flow through a system, intervene first at the narrowest point, because nothing else has much effect until that constraint opens. If a road narrows from two lanes to one, your instinct is to widen it. But if a few hundred yards on there is a badly phased set of traffic lights, widening the road just moves the jam. Fix the cheap bottleneck, the lights, then find out whether you still need to widen the road. In marketing the constraint might be physical distribution, something near the point of sale, or mental: nobody has heard of you.

“There's no point in widening a road if there's a badly phased set of traffic lights 200 yards down the road.”

The point: Find and fix the single binding constraint cheaply before investing heavily anywhere else.

Sources (2)

Goodhart's law, and Rory's two corollaries

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Goodhart's law says any metric that becomes a target loses its value as a metric. Rory adds two laws of his own. First, a prior one: every metric tends to become a target whether we like it or not. Second: any metric that becomes a target almost certainly ends up sub-optimising something somewhere else. Business develops targets that pretend we must pursue one number as if nothing else were going on, choosing measures that seem safe to optimise without counting the hidden cost. And the relationship has inverted: business people once used judgement and finance kept score at year end; now finance decides what success is by what it finds convenient to measure, as under communism.

“Any metric that becomes a target almost certainly ends up sub-optimising something that happens somewhere else.”

The point: Targets hide trade-offs by pushing their costs into unmeasured areas, and every metric drifts towards becoming a target.

Sources (2)

Google Glass gave up too early

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Rory thinks really big ideas like Google Glass were abandoned too soon. It made two mistakes. It seeded the product with the wrong user imagery, geeks, so wearers were called 'glassholes'. And it wasn't patient: Google expected linear adoption, when adoption is a sigmoid curve. Had it kept going another two years, he guarantees a friend would have got one and said it was good, and he would have got drunk at an airport and bought one. Someone should have said it was a ten-year investment. Judged on short-term return, firms advertise most when the curve is steepest and social proof is already doing the work, when they should advertise disproportionately early.

“They gave up too early because they were expecting linear adoption, when of course it's actually a sigmoid curve.”

The point: Behaviour-changing products need patience and early support through the awkward phase; quitting early kills good categories.

Variants: Rory thinks Zuckerberg's bet with Ray-Ban on smart glasses may be the best current tech bet, provided they stick it out for ten years.

Sources (2)

IBM's PC in Boca Raton and Nespresso's lies

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Two great big-company innovations survived by keeping their distance. When IBM created its PC division, Thomas Watson deliberately built an entrepreneurial unit: he put it under a wildcard who wore cowboy boots, practically punk at 1970s IBM, based it in Boca Raton, Florida, far from headquarters, and had him report only to Watson. The reasoning: if we put you in the mainstream, you'll never do anything. Nespresso, which Rory calls the Swiss Apple, sat in a separate office in Lausanne, away from Nestlé in Vevey, fought off being branded Nescafé, which would have blocked premiumisation, and survived partly because it lied about its figures for two years. 'Brilliant in my opinion,' says Rory.

“If we put you in the mainstream, you'll never do anything.”

The point: New ventures inside big companies need physical and political distance from the parent's metrics and immune system.

Sources (2)

Innovation in big companies is corporate disobedience

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When Ogilvy looked back on the best work it had ever done, it made a slightly awkward discovery: in every case where it produced something truly remarkable, someone had broken the rules. Researchers visiting the agency found the same, that nearly every fat-tail success came from someone deviating from normal process. Rory generalises: nearly all innovation in large companies emerges as an act of corporate disobedience. McDonald's punished both its breakfast and the drive-through window when they first appeared, because they deviated from the standard model. In which case, he says, maybe it is the rules that are the problem, and companies must decide which activities to exempt from them.

“Nearly all innovation in large companies emerges as an act of corporate disobedience.”

The point: If great outcomes consistently require rule-breaking, protect space where the normal rules don't apply.

Sources (2)

Kelly the dolphin hides the rubbish

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A dolphin called Kelly was trained to fetch rubbish from the bottom of her pool, earning a fish for each piece. She quickly gamed the system. Whenever she found a big piece of rubbish, she hid it under a rock, and whenever she wanted a fish she tore off a small bit and brought it up. Rory says much of business works the same way. Companies test media rather than creative, and digital advertisers practise slow, small-scale incrementalism, because a steady 3 to 5 per cent improvement every year keeps your job, while the order-of-magnitude gains from psychology and creativity are thrown away.

“If you want to keep your job, I can't recommend anything more highly than improving everything by about 5% every year.”

The point: Incentives that reward each increment encourage people to ration big gains into small, safe ones.

Sources (2)

Marketers get J.K. Rowling's first-edition royalties

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In the 1960s someone at Ogilvy suggested putting 'Member since' on the American Express card. Rory, who worked on Amex for 15 years, reckons it is worth over a billion dollars, because nobody wants to cancel and start again as 'member since 2025'; Ogilvy was probably paid $500. Yet marketers are accountable for every penny they spend and credited only with the last few months' revenue. A four-line change to a call-centre script made one client £2 million a year, every year, and was never credited after the first. It is like telling J.K. Rowling she can have royalties, but only on the first edition. Imagine firing a drug lab because it invented its blockbuster five years ago.

“It's a bit like saying to J K Rowling: you can only have royalties on the first edition of the book.”

The point: Short attribution windows credit an idea only in the period it appears, so ideas that pay for years are systematically undervalued.

Sources (2)

McDonald's screens, an option, not an obligation

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On-screen ordering made McDonald's a fortune, Rory says, because it was an option, not an obligation: people who prefer screens use them, and the more channels and moments at which you sell, the more you sell. Then someone notices screens are marginally cheaper than a person at a till and drives everyone to them; McDonald's opened branches where you can only order on a screen. Rory thinks they will sell less. Brands grow, in Byron Sharp's terms, by being present in every buying situation. The cost-cutters claim credit for needing fewer staff and are never held responsible for the drop in sales, because costs are quantifiable and opportunity costs are not.

“On-screen ordering has made a fortune for McDonald's because it's an option, not an obligation.”

The point: Adding a cheap channel grows sales; forcing everyone into it loses the customers who preferred the alternative.

Sources (2)

Met unneeds, the porter who grabs your luggage

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As well as unmet needs, Rory talks about 'met unneeds': things businesses spend money on that customers don't care about. His example: arriving at a five-star hotel, staff insist on taking your luggage before you even know your room. You have spent eight or nine hours thinking 'don't lose my suitcase' and guarding your laptop, and then a total stranger offers to take it into some dark, unspecified part of the hotel with a 50 per cent chance you will ever see it again. It is well intentioned, a mark of status or a bid for a tip, but he is not Elton John with Louis Vuitton steamer trunks; he can wheel a suitcase into a lift.

“That's not an actual added value service.”

The point: Effort spent on things customers don't value is wasted, and can even be a negative improvement.

Sources (2)

Monty Python broke America through Dallas

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John Cleese told Rory the Pythons thought their comedy peculiarly British: they experimented with places like Denmark and assumed they had no chance in the US. Their break came because a man running a PBS station in, of all places, 1970s Dallas loved Python and kept airing it. Stereotype Texans and Dallas is the last place you would launch Monty Python, well below weird bits of Connecticut or California. But it became cultish there, other PBS stations desperate for content followed, and if you can break Dallas, San Francisco shouldn't be much of a challenge.

“If you can actually break Dallas, San Francisco shouldn't be that much of a challenge.”

The point: Success often starts in places logic would never predict, and concentrated local adoption can seed wider spread.

Variants: Rory uses it to argue for launching in an outlier city or one region at a time, as Warburtons did from Yorkshire, since people copy their neighbours.

Sources (2)

Nerds compete, then a cute interface makes all the money

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Rory's prediction for AI follows what usually happens in tech: nerdy people trying to impress other nerdy people compete for years on technical metrics, and then someone comes along with a cute user interface and makes all the money. That was Facebook; and Yahoo, before Google, delivered an important function in the wrong packaging. Truly successful technologies win because someone designed the interface around human perception and emotion rather than for Richard Thaler's Econs, a species found only in economic models. He finds it strange that billions go into making AI a bit better at what it already does rather than making it really useful, and notes that nobody has yet been the Steve Jobs of AI.

“Loads of nerdy people compete for years and years, then someone comes along with a cute user interface and makes all the money.”

The point: Value in technology is often captured by whoever solves the human interface, not whoever wins on capability.

Sources (2)

Nestlé makes Starbucks in a bottle

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Les Binet argues most advertising pays back two or three to one, and he would take that certainty. Rory agrees for bought media, but says some marketing ideas return a thousand to one. His example is the brand partnership behind Starbucks ready-to-drink coffee: the drinks are made by Nestlé. Nestlé knew how to manufacture and distribute ready-to-drink coffee but lacked a brand for that kind of coffee; Starbucks had the brand but not the manufacturing or distribution. Put them together and both win. That idea has probably made someone a billion dollars and cost almost nothing.

“That idea has probably made someone a billion dollars and cost almost nothing.”

The point: Combining one firm's capability with another's brand can create returns far beyond any paid media.

Sources (2)

Netflix's magic was the price, not the post

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Everyone mocks Blockbuster for refusing to buy Netflix for $50 million, but Rory says it was right: DVDs by post was easy to copy, had rivals like LoveFilm, and nobody knows on Wednesday what film they want on Saturday. In desperation, looking at a warehouse full of DVDs, the founders realised the discs should be stored in customers' homes. The breakthrough was the offer: three DVDs at a time, swap as often as you like, no late fees ever, $19.95 a month, about the price of buying one DVD. It was risky, since heavy users would cost a fortune in postage, but it banked on inertia: six or eight films in month one, two or three in month two, as with gym memberships.

“It wasn't DVDs by post, it was turning this into a subscription business.”

The point: A pricing structure built on real behaviour, such as inertia, can be the innovation itself.

Sources (2)

Nobody gets up to enrich the Wisconsin DMV pension fund

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Unless they have been bought off with stock options as senior managers, most people don't get out of bed to enrich shareholders. Rory doesn't know who his company's big shareholder is, probably something like the Wisconsin DMV pension fund; he wishes them no ill but doesn't lie awake worrying about their pensions. Serving customers and colleagues, by contrast, is a natural human motive. Leaders rewarded on shareholder metrics distrust staff who don't share their motive, and impose command and control. Instead of a volunteer army you get mercenaries and conscripts, and work becomes depressing; cardiac surgeons quit because they are sick of being bossed by finance departments.

“No one gets out of bed to enrich the state of Wisconsin DMV pension fund.”

The point: Shareholder value is a weak motivator, so organising around it demoralises the people who do the work.

Sources (2)

Nobody has copied Amazon's call-me-back button

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If an Amazon parcel hasn't arrived, you press 'Call me back' and three seconds later your phone rings: 'Hello Mr Sutherland, I understand your hat hasn't arrived.' We don't phone companies because we expect a 90-second wait, an IVR maze and security questions. Yet, fascinatingly, nobody has copied the button. Firms told Rory they couldn't make the business case work. His reply: here's your business case, Amazon does it. Amazon tests everything and is a fast-feedback business, so it wouldn't have the button without a case. A bank might need nine years to prove a customer-experience investment improves retention. If slow businesses won't copy fast ones without their own proof, service stays astoundingly bad.

“If Amazon does it, at the very least test copying it.”

The point: Slow-feedback businesses should borrow ideas proven by fast-feedback ones rather than demand their own proof.

Sources (2)

On a typical board, nobody represents the customer

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Rory endorses Mark Ritson's description of marketing as a 180-degree flip: looking at the business through the customer's eyes rather than the organisation's. Reduce marketing to a communications service and that perspective vanishes, so you literally end up with a board of directors on which the customer's interest is represented by nobody at all. John Kay notes that the doctrine that a company's first duty is to its shareholders isn't even legally true; it is a Milton Friedman convenience. The result is boards with no marketing person and no innovation person, Drucker's two sources of value, while HR doesn't really represent employees either. The people at the shelf, where money changes hands, are absent from the room.

“Your customers and your employees are totally unrepresented on the typical board of directors.”

The point: Governance built around shareholders and finance leaves the true sources of value without a voice.

Sources (2)

Online grocery, hell the first time, easy by the fifth

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Marketers are the only people in a business who ask what something is like for an individual over time: what makes me do this the first, second, third time? With Ocado or Sainsbury's delivery, the first three times it is easier to crawl to the supermarket over broken glass; by the fifth it is easy, with all your favourites saved. The trick with Ocado is to get people to order three times, and they become converts. Repetition moves a task from effortful System 2 to automatic System 1, like learning to drive until you can't remember the last ten miles. Rory thinks parcel lockers will be the same: nobody wants them at first, but they become a habit.

“The trick with Ocado is you get people to do it three times and they become a convert.”

The point: Adoption depends on the experience across repeated use, so the goal is to secure the first few repetitions.

Sources (2)

P&G's brand managers are CEOs of their brands

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At Procter & Gamble the brand manager is effectively chief executive of their brand: pricing, promotions, advertising, packaging, distribution and the P&L. Rather like running a restaurant, you see a business in its entirety instead of one part. Rory thinks P&G has done more than any business school; a remarkable number of UK wealth creators are its graduates, Octopus's Greg Jackson among them, and David Ogilvy advised spending your first six years there. Everyone admires and poaches P&G people, yet nobody copies the structure that has worked for 130 years; business schools prefer organising around specialisms. P&G also tolerates failure rather than amplifying risk aversion down the layers.

“You get to see a business in its entirety rather than just one part of it.”

The point: Giving one person whole-business responsibility trains builders and keeps risk-taking alive in big firms.

Sources (2)

Performative rationality

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Most business questions are open-ended, yet most business effort goes into pretending they are high-school maths problems with a few metrics and a single right answer. In business you are rewarded not for solving a problem but for winning an argument, and the easiest way is to pretend there are only three possible answers, closing down creativity, then show one is clearly superior. Signed off. If it goes wrong you won't be blamed, because you followed the rational, scientific approach. Rory calls it performative rationality, or scientism: the appearance of science used for blame avoidance. Some fields suit scientific methods, like his astrophysicist brother's, but in business the creative opportunity cost is immense.

“What you really get rewarded for is not solving a problem, it's winning an argument.”

The point: Pseudo-rigour narrows options to protect decision-makers rather than to find the best answer.

Variants: Rory links it to the idea of 'unaccountability machines', and says mainstream economics does it to a hideous degree.

Sources (2)

Procurement can't compare the incomparable

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Procurement asks agencies how much six press ads and two TV ads will cost. You say: actually, you could put a sticker on this hat and solve the problem at a tenth of the cost. They aren't interested: quote for the expensive solution so we can compare it with everyone else's. Rory recalls someone who could ease NHS A&E pressure with large trucks parked in the hospital car park, ready next Thursday, but the tender was written for a building project, so he couldn't be compared with seven builders. Procurement needs identical bidders, yet anyone genuinely innovative is one of a kind, worse on some measured dimension and much better on an overlooked one.

“As soon as you are incomparable, they cannot compare you.”

The point: Like-for-like comparison is structurally hostile to novel solutions, so comparison-driven buying filters out the most valuable ideas.

Sources (2)

Rory, the John the Baptist of air fryers

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Rory calls himself the John the Baptist of air fryers. He preached them for years with little traction, and told Philips, then the only maker, that it was sitting on a goldmine and should advertise. It didn't, and Ninja took over, helped, he thinks, by TikTok. The lesson: behaviour change is not linear but a sigmoid curve. Habit and social copying, the two big gravitational forces of behaviour, take a long time to shift, and then uptake is rapid. So don't judge a product by its growth rate: Meta's Threads had exponential sign-ups because joining was easy, and it is a wasteland. The reassuring data is repeat purchase and conversion to evangelism, and many good ideas are abandoned too soon.

“The data you need to look at is the repeat purchase rate or the subsequent conversion to evangelism.”

The point: Early growth rate says little; repeat use and advocacy reveal whether a slow-starting product will win.

Sources (2)

Run by engineers it makes no money; run by finance it makes nothing

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Rory shares a phrase he finds really useful and thinks worth knowing: if a company is run by engineers it never makes any money, and if it is run by finance people it never makes anything at all. He uses it in both directions. HS2's brief went to engineers, who wanted only speed. But optimise a business around efficiency and your first instinct is to get rid of the scout bees, stop investing in discovery and pour everything into exploitation, until there is nothing new left to exploit.

“If you have a company run by engineers it never makes any money, and if you have a company run by finance it never makes anything at all.”

The point: Single-discipline leadership skews a company: making things and making money need balancing, and finance-led efficiency starves discovery.

Sources (2)

Shopify could be the alternative Amazon

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Rory has always wondered why Shopify never added a consumer-facing search engine across its merchants. He was told there is an ethical dilemma about choosing between its own customers; his reply was that people would rather be discriminated between and make lots of money than be treated fairly and go bust. Given how much e-commerce runs on Shopify, such a search would effectively make it the alternative Amazon. He praises NearSt for doing something similar for physical shops: they upload their inventory so Google can show that three shops in East Grinstead stock a 25-year-old Glenfarclas, ready to reserve. He suspects Google likes it because it hurts Amazon.

“People would rather be discriminated between and make lots of money than be treated fairly and go bust.”

The point: A platform's latent consumer-facing asset can be worth more than its stated role, and making local stock searchable can rescue physical retail.

Sources (2)

Six cost lines to one revenue line

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Rory quotes Jules Goddard of London Business School: a balance sheet has six cost lines and one revenue line, and board meetings proceed in exactly that ratio. Operational efficiency and cost reduction get six-sevenths of the attention, revenue is treated as a given, efficiency becomes a proxy for effectiveness, and then companies say: this is strange, we're not growing. Being the marketer on such a board, he says, is terrifying. The pandemic showed what happens when demand can no longer be taken for granted: the question stops being how to run the most efficient flights and becomes how to get people onto planes at all, and psychology and resilience matter far more.

“In a board meeting the discussion proceeds in exactly that ratio.”

The point: Attention follows the structure of the accounts, so boards over-manage costs and neglect the demand everything depends on.

Sources (2)

Sourdough, the grey squirrel of bread

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Rory is glad sourdough exists, but it has become a phrase meaning 'posh bread' and crowded out soda bread, cornbread and the black treacle soda bread M&S sells only on alternate Wednesdays depending on the lunar cycle. It is the grey squirrel of the bread world: a useful addition to the gene pool that becomes a pest, like Japanese knotweed, eliminating the indigenous alternatives. IPA did the same to craft beer, and salted caramel to desserts. In a globalised economy these winner-takes-all effects are runaway feedback loops, best understood through evolutionary biology.

“It's like the grey squirrel of the bread world.”

The point: Runaway popularity can turn a healthy novelty into a monoculture that crowds out variety.

Sources (2)

Soviet chandeliers made by weight

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The Soviet Union had famous problems with metrics. Branding was resisted as un-Marxist, so factories were targeted on quantity alone, and rivet factories made as many low-quality rivets as possible. There is a probably apocryphal story of a nail factory, rewarded on weight, that spent a month making one nail weighing a ton and a half. But it is true, Rory says, that there was a spate of chandelier collapses, which Stalin himself complained about, because lighting factories were rewarded on weight of output and made insanely heavy lights that ceilings could not support. Commodities work the same way: once beef is merely certified, nobody has an incentive to make better beef.

“Once something has certified beef, what incentive do I have to produce better beef?”

The point: When an objective metric replaces reputation, people game the metric and quality stagnates.

Sources (2)

Terminal 5 syndrome

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Big, expensive things get big, intelligent attention; small things get none. Heathrow's Terminal 5 is a magnificent building until you reach the user interface: the signage. Walking towards the Heathrow Express, you follow a big yellow sign saying 'Trains' straight ahead and walk a hundred yards expecting another, but the turning you need is marked by a blue sign off to the left saying 'Heathrow Express'. Rory estimates a third of travellers end up staring at a blank wall at the end of a corridor about as long as Coventry Cathedral. To its credit, the airport operator asked for his suggestions and is acting on five of them.

“But the small stuff, what you might call the user interface, is done spectacularly badly.”

The point: Organisations lavish care on costly projects and neglect the cheap details people actually experience.

Sources (2)

The broken contract between employer and employee

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For 150 years, and for the first 20 of Rory's working life, there was an implicit, unwritten understanding that if a business did well, its employees did well too: you kept your job, redundancies in good times were weird, and growth meant more staff. That contract has broken. Now if the company does well, the shareholders do well and the employees get to keep their jobs. His younger staff don't realise it was ever different. The AI narrative splits the two further, suggesting a business does well by getting rid of people, which could collapse motivation. He read that 20 per cent of young people sabotage their employers' AI efforts, which he notes is not necessarily irrational.

“If the company does well, the shareholders do well and the employees get to keep their jobs.”

The point: Decoupling company success from staff welfare undermines the motivation businesses depend on.

Variants: In one telling Rory adds that the monthly paycheque still appeals, because our instinct for variance reduction makes going it alone scary even when the statistics favour it.

Sources (2)

The buyer who saved too much

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A friend of Rory's in procurement was told to negotiate suppliers down by 3 per cent a year. One day he came back proudly having secured 9 or 10 per cent from one supplier, expecting praise. His boss was dismayed: 'You total idiot. What are we going to do next year?' Within a narrow sphere, it is perfectly rational to salami-slice suppliers and keep yourself employable. Rory sees a whole incentive in what he calls white-collar welfare to do slow, boring, predictable things, or things with a plausible narrative such as economies of scale, rather than deliver a big gain that resets everyone's expectations.

“What are we going to do next year?”

The point: Incremental targets make large improvements unwelcome, so people deliberately under-deliver to protect their future performance.

Sources (2)

The Dragons who passed on Hungry House

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Watching a YouTube compilation of Dragons' Den's worst decisions, Rory saw the Dragons reject Hungry House, later bought by Just Eat for about £220 million. Online food ordering was not yet accepted, some pizza places had failed at it, and the Dragons doubted anyone would order takeaway online rather than ring the local curry house. Rewatching, he realised neither the Dragons nor the founders asked the only relevant question: of the people who do this, how many do it again? A product people keep using after two or three tries is fundamentally different from one tried once and abandoned. Finance does not distinguish five people buying once from one person buying five times; for marketing the difference is decisive.

“Of the people who do this, how many of them do it again?”

The point: Repeat use, not initial uptake, reveals whether a slow-starting innovation will win.

Sources (2)

The first iPhone would have failed a procurement scorecard

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We have forgotten that the first iPhone had abominable battery life; you had to take a charger to work. Any procurement scorecard would have demanded 20-odd hours of battery, as Nokia and BlackBerry offered, and the iPhone would have failed at the first hurdle. But people loved its usability and looks so much that they found workarounds: bulbous battery cases, charging bricks, plugging in at the desk. Consumers, as in dating or house-buying, will trade a couple of negatives for one massive positive. B2B buying metrics are set by the incumbent, while innovation usually discovers value in an under-quantified area while being worse on a dimension people currently measure.

“The iPhone would never have made it as a B2B product.”

The point: Specification-driven buying locks in incumbents, because innovations trade a measured weakness for an unmeasured strength.

Variants: Rory notes that electric cars likewise have one big negative, charging.

Sources (2)

The four horsemen of the bureaucratic apocalypse

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In a financially controlled organisation, Rory says, the four horsemen of the bureaucratic apocalypse are finance, procurement, compliance and HR, with some adding IT as a fifth: people paid to say no. Their jobs reward upside very little but punish downside massively, so they demand ridiculous levels of proof before you can try anything. Procurement in particular claims credit for every saving but is never held responsible for the opportunities destroyed. Calibrated like that, a business will use new technology defensively and miss its opportunities, and cannot do long-term marketing or real innovation, both of which need short-term pain for long-term gain. Owning your own business means you can make mistakes: you won't fire yourself.

“The four horsemen of the bureaucratic apocalypse are finance, procurement, compliance and HR.”

The point: Functions rewarded only for avoiding loss will systematically veto experiments and destroy unmeasured value.

Sources (2)

The genie and the account man

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An old advertising joke that David Ogilvy used to tell. A copywriter, an art director and an account man are on their way to present to a client when a genie emerges from the overhead locker and grants each of them one wish. The art director wishes for the life of Picasso and vanishes. The copywriter wishes for the life and prose of Hemingway and vanishes. The account man says: 'I want those two guys back. I've got an important meeting in two and a half hours.' Rory uses it for how the urgent crowds out the important, from quarterly reporting to short-term performance advertising, and how the short-termist can ruin things for everyone else.

“I want those two guys back, I've got an important meeting in two and a half hours.”

The point: Short-term urgency crowds out long-term value, and spoils it for others too.

Sources (2)

The hotels.com agent who came back three days later

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Rory's father-in-law fell ill before a holiday; Rory changed his flights but forgot to cancel a Canary Islands hotel with a 48-hour cancellation policy. A hotels.com agent asked the hotel for a refund and then told him nothing could be done. Fair enough, Rory said, my fault, you did your best. Case closed, and he was not angry. Three days later the agent got back in touch: 'I thought you were a bit harshly treated, so I got back onto the hotel', and had secured a refund for the first night. Rory was astonished. Such an extra mile is so unexpected it is talkable, and he knows where he will book next.

“I thought you were a bit harshly treated, so I got back onto the hotel.”

The point: Unprompted effort beyond what is required creates surprise and loyalty that advertising cannot buy, yet it goes unsought because it is hard to measure.

Sources (2)

The info butler, a human who works the AI for you

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At 59, Rory asks, should he spend 20 years mastering new prompts and models, or hire a twentieth of the time of someone brilliant at it who likes kite-surfing, lives in the Canary Islands and answers the phone? His business idea: a human PA, reachable by phone or Zoom, expert at using AI on behalf of perhaps a hundred clients paying 100 a month each. An Uber-Jeeves who sorts your bank, finds you a hotel in Fuerteventura and learns from all their clients: a turbo butler rather than a robot. Like centaur chess, human plus machine wins. Tech fetishises eliminating the human because wages are the biggest cost, but a JCB made the navvy more productive and you kept the navvy.

“Create a turbo butler rather than creating a robot.”

The point: AI may be best delivered through trusted human intermediaries and humane pacing, not by removing people.

Variants: Rory adds that people may want 'slow AI', such as planning a Greek holiday over three months rather than getting a perfect answer instantly.

Sources (2)

The Japanese toilet ratchet

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Rory has a Japanese toilet at home and his friends regard him as an idiot. But once you have had one, going back to dry wiping is a step down roughly equivalent to going from a Western toilet to a hole in the back lawn. Nobody wants one until they have one, and then it becomes impossible to conceive of life without it. Mobile phones and multi-channel TV were the same. He calls this a ratchet, or the Diderot effect, after the philosopher who was given a fine silk dressing gown and then found the rest of his wardrobe shabby. Such products make sense only in retrospect, so asking people in advance, or demanding proof, kills them.

“Nobody wants one until you have one, when it becomes impossible to conceive of life without it.”

The point: Some innovations reset preferences on exposure, so they win through experience rather than argument and cannot be validated by asking people first.

Sources (2)

The law partner who spends three times as long justifying the bill

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A friend of Rory's, a senior partner in a magic circle law firm earning around a million a year, said that if he had his time again he would not choose law. He went into it because he liked solving legal problems, but with procurement's obsession with cost justification he now spends three times as long justifying charges as doing the work. Advertising is not alone: consulting and law have been grotesquely distorted by the need to quantify costs. Rory, fresh from 45 minutes of online ethics training, concludes that most businesses are cost-control organisations with a side gig in law or advertising, run by two cultures: cost-cutting, and regulatory and reputational paranoia. There is no optimism.

“Most businesses are actually cost-control organisations with a side gig in law or a side gig in advertising.”

The point: Cost-justification regimes can consume more effort than the work they police, and drive out the people who love the work.

Sources (2)

The Netflix lunchtime spike

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A boss Rory knew was driven nearly insane when Netflix revealed a viewing spike around lunchtime on working-from-home days. It is lunchtime. Many people would be more productive starting early, taking a long break in daylight for sunshine and the school run, and working later; imagine being a Swede in winter. Autonomy has value in itself. Rory once had a PA who was a single mother; he told her to take her son to school and go to sports day, and in return sent his expenses and bureaucracy to her home to do in the evening once her son was asleep. Hostility to flexible working is partly the suspicion that people might be enjoying it.

“There's this hostility to flexible working which is partly driven by the suspicion that people might be enjoying it.”

The point: Flexibility over when and where work happens is a currency that buys loyalty and effort at no cost.

Variants: The spike is placed between 12 and 1 in one telling and between 1 and 2pm in the other.

Sources (2)

The person with the spreadsheet always wins

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One of the great problems of business, Rory says, is that as soon as anything is in numerical form, you have won the argument. A marketer arguing with words against someone with a spreadsheet has basically lost. Dan Davies argues that when Boeing bought McDonnell Douglas, the McDonnell Douglas culture took over Boeing: its people always had numerical arguments, while the Boeing people could only answer with things about culture. The person with data, even an aggregate average from the past, always beats the person with abstract nouns. Equally, cost-cutting is the easiest argument in business: proposing to spend takes months of justification, while a cut that may be just as dangerous passes on the nod.

“The bastard with the spreadsheet always wins.”

The point: Quantified arguments win internal debates by default, even when the unquantifiable factors matter more.

Sources (2)

The Walkman trick, leave out the record button

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Akio Morita vetoed adding a record function to the Sony Walkman, and Steve Jobs copied the move with the iPod, which could easily have had a microphone. An economist says more utility means more value, but adding a feature can reduce a product's appeal, because deciding whether you want it gets harder. Instead of one question, 'do I want to do this?', you face 'am I paying for something I won't use?' and 'what is this, a dictaphone?' Deliberately limiting a new invention lets people grasp what it is for and how to use it. Rory sees the same trick in Meta's smart glasses, many of which have no display at all: just voice, camera and headphones.

“We can do something totally logical, which is adding functionality to a product, but weirdly it actually reduces the appeal of the product.”

The point: Restricting features can make a product's purpose legible and speed adoption.

Sources (2)

Thirty hours to pay a Swiss hospital

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Rory's retina detached in Switzerland, and he claimed the operation on his premium credit card's insurance. Getting the insurer to pay took 30 to 36 hours of work, delegated to his wife, who is better at bureaucracy. The problem: the insurer could only pay an invoice addressed to it, but the hospital had invoiced the Sutherlands, and nobody could handle the deviation, though a 20-second phone call could have solved it. Automated, hyper-optimised processes are great when everything goes to plan. The moment you deviate, you don't just go off piste: you hit a tree. He calls the drive for total automation of service a false god sold by consultants.

“It's not just that you go off piste, you hit a tree.”

The point: Processes optimised for one ideal path are brittle and fail expensively at the first exception unless a human can intervene.

Sources (2)

Uber for petrol and the forgotten pork pie

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Crossing a road in Menlo Park, Rory saw a miniature purple petrol tanker drive past. It tours the car parks of Meta and other tech firms, filling coders' cars while they work so they needn't stop on the way home. We would all try it once. But you have turned life into a time-optimisation problem and missed the context. When did anyone last stop at a petrol station and buy only petrol? You go in, remember you have run out of milk, spot a pork pie your wife will never find out about, and have some banter. Petrol stations solved their problem by becoming shops. Optimising every function of life separately, he says, was his pin factory moment.

“Of all the things that could improve my life, it's never occurred to me that not having to fill up with gas would be that big a deal.”

The point: Defining a function too narrowly and optimising it alone loses the incidental value of the wider behaviour around it.

Variants: In one telling Rory frames it through Iain McGilchrist, calling the pin factory Adam Smith's ultimate left-brain idea.

Sources (2)

Video calls went from Dr Pepper to Coke

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Video calling was just as good two or three years before the pandemic, yet nobody used it for meetings. In 2019, for a two-hour meeting in Frankfurt, the Coca-Cola answer, the default that needs no justification, was to fly there for the day. Suggesting a call with Jurgen instead was Dr Pepper, an outlier you had to explain (with apologies to Texans, for whom Dr Pepper is the default). Within a few weeks the norm flipped: video became Coke and flying over became Dr Pepper. Norms and habits are the big gravitational forces of behaviour, and some of the change will stick: EY in the UK vetoed flying for trips of one night or less.

“It went from being Dr Pepper to being Coke in the space of a few weeks.”

The point: Adoption is held back more by norms than by technology, and the default option needs no justification until a shock flips it.

Variants: Rory expects much of it to last because new networks, linking someone in Sydney, Bozeman and London, do not map onto hub-and-spoke air routes.

Sources (2)

Websites hide the phone number that converts at 30 per cent

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In a meeting at a successful online travel business, someone spoke of maximising online conversion. The founder interjected: a website visitor converts at well under 1 per cent, while anyone who phones converts at 30 to 35 per cent. He granted that callers are warmer prospects, but asked whether they really wanted to hide the phone number to minimise call-centre costs. Rory calls hiding phone numbers absolute insanity. Marketers know that the more channels you sell through, the more buying situations you reach; the rest of the business wants to drive everyone to the cheapest channel, claiming the saving without owning the lost sales. He would rather have 90 per cent of a lot than 100 per cent of not very much.

“I'd rather have 90% of a lot than 100% of not very much.”

The point: Forcing customers into the cheapest channel can cost far more in lost sales than it saves.

Variants: The conversion figures are given as 0.5 per cent against 30 per cent, or 0.8 per cent against 35 per cent.

Sources (2)

Why consultancies stopped doing strategy

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Management consultancies call themselves strategy firms, Rory says, but they don't make their money from strategy. Strategy isn't time-consuming: a small group of talented people can produce an ingenious one quickly. So they pivoted to laborious transformation and technology-implementation projects, extending their blood funnel into every part of an organisation, with hundreds of Oxbridge graduates producing decks year after year. He calls it a Baptists and bootleggers conspiracy between tech firms and consultancies: tech sells the technology, consultants bill the hours, all built on plausible stories of operational efficiency and cost reduction. Cheap psychological solutions bring no budget, no headcount and no consultancy profit, so business resources follow what is expensive.

“It's effectively a kind of Baptists and bootleggers conspiracy between tech firms and consulting firms.”

The point: Cheap, high-leverage solutions are under-resourced because nobody profits from selling them.

Sources (2)

You can taste when private equity has bought the restaurant

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The economist John Kay went with a friend to a restaurant they had loved for years and had last visited about five years before. Something had changed: it felt as if it had been taken over by private equity. They could sense it in the portion sizes and the slightly grudging way things were done. They checked their phones, and sure enough it had been bought a year earlier. Rory's point is that although everything private equity does seems logical, cut by cut, the customer can feel it. Consumers can tell why a business exists; the shareholder value movement has been a catastrophe, and the only healthy movement in business is a customer value movement.

“Even though everything they do seems logical, the customer can kind of feel it.”

The point: Customers sense when a business's motive shifts from serving them to extracting from them, even when each cut looks rational.

Sources (2)

"Americans don't take taxis very much"

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A brilliant friend of Rory's patented a dynamic transport marketplace before Uber, and has a letter from Guy Kawasaki saying he could not see it working in the US because Americans do not take taxis much, except in New York. Everyone analysed Uber as cannibalising an existing taxi market, yet in San Francisco it tripled the market within a couple of years, not through reliably lower prices but better psychology. As Jeff Bezos says, in baseball the most you can score is four, but in business you can hit a thousand. Fear of uncertainty makes firms keep trying for singles.

“In baseball the most you can score is four, but in business you can hit a thousand.”

The point: Innovations can create markets far larger than analysis of the existing market predicts.

Sources (1)

'Does it make the boat go faster?'

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Hearing Harpin's 'not to-do list', built on a 20-word statement of purpose that any activity must fit or be stopped, Rory said it was very similar to the famous British rowing team, whose single criterion for any activity was: does it make the boat go faster? He also noted that the purpose statement doesn't mention money at all; it is entirely customer-focused.

“Does it make the boat go faster?”

The point: One simple, shared test for every activity aligns an organisation and makes saying no easy.

Sources (1)

'That won't work here' is almost always untrue, unless it's Japan

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In over 30 years at Ogilvy, Rory found that whenever you take a successful formula to another country, the locals always say it won't work there. A colleague's rule: that is almost always untrue, unless it's Japan, and probably Korea, where if they say it's different you listen. Harpin's example was the Autoglass 'repair, replace' jingle, rolled out in 30 to 40 countries despite objections. Rory adds why it works: most people aren't in a buying situation and don't know replacers also repair, and the irritating but memorable jingle describes the entire proposition.

“Every time you try and take a successful formula to another country, the people in the other country will always say that won't work here.”

The point: Local exceptionalism is usually overstated; proven formulas travel better than local teams expect.

Sources (1)

'The model told me to' is the new 'only following orders'

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In business, institutional or political decision-making, if you can claim 'here I stand, I can do no other, because the model tells me I have to do this', you may not be making a very good decision, but you are fairly safe from blame. Rory calls this the 21st-century version of the 20th century's most notorious excuse.

“'The model told me to do it' is the 21st-century equivalent of 'I was only following orders' in the 20th century.”

The point: Models are often used to shelter decision-makers from blame rather than to find the best answer.

Sources (1)

A business in your name changes how you think

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Nobody tells you in advance that self-employment completely changes your approach to spending, because you are taxed when you take money out of the business, not when you reinvest. Some people want to bring back the Enterprise Allowance Scheme, having realised that the very existence of a business in your name makes you think differently. Things you always paid for out of taxed income, such as an electric car, become available out of untaxed income.

The point: Owning a business shifts both incentives and identity, changing how people spend and invest.

Sources (1)

A creative department with not quite enough to do

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Probably the most value you could create in an ad agency, Rory says, comes from having a creative department with not quite enough to do. It is a delicate balance: we have optimised efficiency without optimising effectiveness. His former art director Mike Sim, now a vicar, said one agency got the Taylorist versus fun balance just right: nobody panicked if someone was unbillable for three hours, but people did not drift off on Friday afternoon and not come back.

“The most value you could create from an ad agency is by having a creative department with not quite enough to do.”

The point: Slack is a precondition for creativity, so maximum utilisation destroys value.

Sources (1)

A failed premium cider launch worth £5 million in learning

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A client spent a lot launching a premium cider; it failed, and everyone fell into the blame game. When it reached the CEO, he said what they'd learned from the failure was easily worth £5 million, echoing Edison's thousands of ways not to make a light bulb. There's value in getting things wrong as long as it's survivable. But the scout bees must report back: if failure's lessons are kept secret, they're worthless. Shared, they feed back into the waggle dance, making explore and exploit complementary parts of one system.

“What we've learned in this failure is easily worth £5 million.”

The point: Survivable failure is an investment, but only if the organisation captures and shares what it learned.

Sources (1)

A future market for guaranteed AI-free businesses

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Because businesses herd, Rory predicts that in ten years there will be a market for guaranteed AI-free businesses, just as there is for organic food. Many firms will use AI to cut costs by offloading work and hassle onto their own customers, and it is not really cost-cutting when the customer pays the price. Just as farmers' markets became an antidote to Tesco Extra, and London City Airport to Heathrow, there is always an opportunity in the underexplored space.

“It's not really cost cutting when you're making your customer pay the price.”

The point: When everyone automates, the human, unautomated alternative becomes a premium niche.

Sources (1)

A gap in the market but no market in the gap

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When an idea is logical and yet nobody is already in that space, Rory warns, it is highly likely there is a reason for the emptiness, since the logical ideas have mostly been tried already. As he puts it, there may be a gap in the market, but there isn't a market in the gap.

“There may be a gap in the market, but there isn't a market in the gap.”

The point: An empty, obvious niche is usually empty because nobody wants it.

Sources (1)

A good economist could have predicted MrBeast

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When the hosts note that MrBeast succeeds by doing what people think governments should do, building schools and wells, Rory says you could have predicted MrBeast. It is a winner-takes-all dynamic: the person with the most money can do the most remarkable things, which attract the largest audience, which brings more money. Amazing things now scale in a way they didn't before.

“You could have effectively predicted the emergence of MrBeast.”

The point: Attention markets reward escalating spectacle, so the biggest player compounds its lead.

Sources (1)

A hospital where every specialist diagnoses their own specialism

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Asked which brand he admires, Rory names Howard Luck Gossage's agency at the old Firehouse in San Francisco in the 1970s, a model for a 21st-century agency that ranged far wider than advertising. Agencies should borrow from design agencies. Lines in advertising are often drawn for status or billing, but there are just marketing problems and solutions. As Dave Trott says, not everything is a brand problem. Agencies diagnose badly: it is like a hospital where every oncologist diagnoses cancer and every cardiac surgeon diagnoses heart disease.

“Every oncologist is trying to diagnose cancer and every cardiac surgeon is trying to diagnose heart disease.”

The point: Diagnosis should be separated from delivery, or every problem gets defined as the one you sell the solution to.

Sources (1)

A hotel that wins on laundry

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Hotels compete on rack rate and room size. But has any hotel, even a very expensive one, offered a laundry experience that is not a pain? You fill in a form and use a bag, and when the laundry comes back they never replace the bag, so for a second load you must ring for another bag and form. Rory says he would happily stay at an otherwise mediocre hotel if it had a brilliant laundry service.

The point: A chronically neglected touchpoint is a cheap opportunity to stand out.

Sources (1)

A loyalty programme is corrective eye surgery for a business

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Rory describes a loyalty programme as corrective eye surgery for a business. Most business data is treated as fact, but how you collect and cut it shapes what you infer: the same data can tell 17 different stories. Most data is collected for reporting upwards to shareholders, 'or the many ranks of arse-coverers' in between, so it is aggregated into snapshots. Loyalty data plus behavioural science reveals the small stuff, the longitudinal story and the why, not just the what.

“This idea that data is truth is absolute nonsense.”

The point: Data tells you what is happening; you need behavioural insight to know why and what to do.

Sources (1)

A patent that's free until you buy a yacht

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Rory feels like the Leonard Cohen of podcasting, ripped off by intermediaries, but sees an advantage: if you are too possessive about intellectual property, it gets used less. He wants a patent system where anyone may try your idea for free; many will fail, which is how capitalism works. The Austrians saw business as exploring new forms of value exchange in the adjacent possible, not as efficiency optimisation. His only demand: once you are swanning around on a yacht in the south of France, he wants some payback.

“You can have that for free until you start swanning around in a yacht in the south of France.”

The point: Free use of ideas maximises exploration; rewards should be claimed only from the rare big successes.

Sources (1)

A plane with no spare seats is awful to board

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Airlines have become so good at yield management that flying is a bit cheaper and more profitable, but also a bit awful. A plane with no spare seats is a horrible plane to board: one broken seat and there is nowhere to move anyone, and half the boarding time is spent playing Tetris with the overhead lockers because you must pay to check bags. Optimisation starts healthy, but over-optimisation, like long supply chains and just-in-time manufacturing in a pandemic, looks clever short term and makes you fragile or unpleasant long term.

“A plane with no spare seats is an awful plane to board.”

The point: Customers accept efficiency until it becomes palpable; over-optimisation creates fragility and resentment.

Sources (1)

A procurement officer is a failed accountant

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Rory's slide, which he left out when presenting to Ernst & Young: a procurement officer is a failed accountant, an accountant is a failed economist, an economist is a failed engineer, and an engineer is a failed mathematician. His real complaint is that people who are not very good at maths now wield numbers with great authority. He would happily listen if procurement were run by Taleb, Gigerenzer or Planck.

“A procurement officer is basically a failed accountant.”

The point: Numerical authority in organisations often sits with people least qualified to understand the numbers' limits.

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A product manager for the off button

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A friend who worked at Orange in its early days told Rory that Hans Snook, its creator and chief executive, foresaw the problem of constant connectivity. Just as Orange had product managers for SMS and other features of the phone, Snook proposed having a product manager for the off button, because he thought being able to switch off had real utility.

The point: The ability to disconnect is a feature worth designing, not an absence of features.

Sources (1)

A pub lease for five grand

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A pubco told Rory you can take on the lease of a pub, often with accommodation, for about 5,000 pounds upfront plus a share of the sales. He thinks that if people under 30 knew this, lots would try it. Perhaps 80 per cent would fail horrendously, but 20 per cent would not. Instead it tends to be retired police officers or retired couples, or worst of all people who enjoy being on the customer side of the bar and assume the other side will be just as fun.

The point: Low-cost entry routes stay unused when the people best placed to experiment never hear of them.

Sources (1)

A revolution is visible from the air

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Rory reckons 30 to 40 percent of the flexible-working push is a middle-class form of trade unionism, a work-to-rule, but not a bad thing: technology has let work impinge on private life and the tide can flow the other way. The definition of a revolution, canals, railways, suburbanisation, cars, is almost that its effects are visible from the air. If we develop technology that makes geography irrelevant and don't change our working patterns at all, that isn't just bad for quality of life, it's stupid.

“The definition almost of a revolution is that its effects are visible from the air.”

The point: Technology that changes nothing about how we live and move has not been properly exploited.

Sources (1)

A separate phone number for those who tried the website

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The most annoying thing, Rory says, is spending 20 minutes failing to solve a problem online, then 10 minutes finding a phone number buried at the bottom of a decision tree, only to hear a two-minute message suggesting you try the website. The fix is simple: a different phone number on the website that accepts the caller has already tried online and failed. Great service also needs room to improvise: the decisive moment is when someone breaks the usual rules because your circumstances are exceptional.

“You have a different phone number on the web which accepts the fact that the caller has tried to solve the problem online and failed.”

The point: Service systems should allow channel choice and human discretion, not force automation.

Sources (1)

A shadow department asking what's undervalued

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Businesses are now laser-focused on costs and ignore opportunity costs, which are harder to quantify. Rory asks: what is the opposite of the procurement function? If you have procurement asking 'what's overpriced?', you need a corresponding yang, a shadow department asking 'what's undervalued? What can we charge more for? How could we add more value?'

“You need a corresponding yang shadow department which is asking the question, what's undervalued?”

The point: Organisations need a function devoted to finding value, not just cutting cost.

Sources (1)

A shared fund for rogue charity experiments

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No charity marketing director will risk 10 per cent of the budget on an experiment that might fail. So Rory proposes a consortium of non-competing charities pooling small sums into a central exploratory fund for 'rogue bee' experiments, crowdsourcing the ideas everyone has been too frightened to try. With 20 participants, a failed test costs each 0.5 per cent, so bravery rises; if it works, all benefit. The alternative is to ring-fence an explore budget judged on long-term value, as a pharmaceutical company judges R&D, where one discovery every eight years justifies it.

“Explore always looks like an inefficiency to people who think you should be doing 100% exploit.”

The point: Pooling risk across organisations makes bold experimentation affordable and speeds up discovery.

Sources (1)

A single metric makes you over-optimise

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One of the great mistakes business makes, Rory says, is wanting a single metric for everything. With one metric you become over-optimised in one direction: you fail to trade off the long term against the short, and exploiting what you know against discovering what you don't. He cites Kraft after its private equity takeover: vicious cost-cutting made it very good at efficiency, but it failed to invest in effectiveness. Partitioning budgets and activities is vital.

“If you've got a single metric for everything you actually go badly wrong.”

The point: Different activities need different measures, or optimisation in one direction destroys long-term value.

Sources (1)

A virtual team like a Pennsylvania barn-raising

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Reflecting on organising a 15-hour online festival almost entirely remotely during lockdown, Rory compares it to a Pennsylvania barn-raising: a whole community coming together to produce something remarkable without intense supervision or regular bullying. He admits he is hopeless at management and administration, so a team that can form spontaneously is essential to him. Necessity was the mother of invention: without the pandemic they would never have dared try it.

“Without the pandemic we would never have had the balls to do something so crazy.”

The point: Crisis can force bold experiments, and self-organising teams can outperform supervised ones.

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Activity disguised as rigour

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Once information is contaminated, for example by knowing a senior person's opinion, confirmation bias takes over and people hunt for evidence supporting the presumed decision. Rory calls this activity disguised as rigour. The tragedy of the human brain is that the fast bits take over decision-making, and the slow bits end up providing intellectual foundations to post-rationalise a pre-ordained decision.

“It's really activity disguised as rigour, isn't it?”

The point: Much apparent analysis is post-rationalisation of a judgement already made.

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AI and Jevons, save coal or open three more seams

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Jevons' paradox: when something gets cheaper, demand often grows, as more efficient steam engines drove up demand for coal by making many more uses economic. Rory hopes AI does this for creativity, since what is scarce is not creativity but the money to produce it. But if finance, procurement or HR decide how AI is deployed, they will use it to cut costs, not create opportunities. The finance mentality saves money on coal; the entrepreneurial one opens three more seams. His joke: the two people he least wants with AI are terrorists and the chief financial officer.

“The finance mentality is save money on coal. The entrepreneurial mentality is open up three more seams.”

The point: Who controls a cost-cutting technology decides whether it shrinks the business or expands its possibilities.

Sources (1)

AI as Mystic Meg

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Many people use AI like a horoscope or the Oracle at Delphi: faced with a hard decision, they want an arbitrary voice to tell them what to do, like Mystic Meg's 'destiny drives a white van'. (Rory's brother, an astrophysicist, would tell women at parties he was an astronomer and hear 'I'm a Sagittarius'.) What's strange is that business won't let an experienced human make an intuitive call without a spreadsheet or deck, yet when silicon rather than carbon does the intuiting, we're far more credulous.

“When it's silicon rather than carbon doing the intuition, we're actually much more credulous.”

The point: We demand justification from human judgement but accept machine judgement on trust.

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AI is predictive text, get the first letter wrong and you're lost

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Rory grossly simplifies large language models as sophisticated predictive text. With predictive text, if you start with the wrong letter you will never get the word you want. Searching Google Maps for Abergavenny, he typed the A as a Q, and instead of the obvious answer he got places in Iraq. If your foundational assumptions are wrong and you use AI, you will just get to a stupid place faster, and the worst of it is that everybody will think it makes perfect sense.

“If your foundational assumptions are wrong and you use AI, you'll just get to a stupid place faster.”

The point: AI amplifies the framing it is given, so bad assumptions produce confident bad answers.

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AI is treated like a football team

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Everybody treats AI a bit like a football team, Rory says: something you must either support unquestioningly or hate violently for no rational reason. Whether it is good or bad depends entirely on the frame of mind in which people adopt it. Optimistically, it is like a spreadsheet for words and feelings rather than just numbers, which could finally let customer experience be measured and aggregated alongside financial data.

“It's kind of like the potential for a spreadsheet, but for words and feelings rather than just numbers.”

The point: AI's value depends on whether it is used to understand customers or merely to cut costs.

Sources (1)

AI that tells the receptionist to call the dentist

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Asked whether voice bots will make call-centre staff redundant, Rory describes a B2B firm selling AI call-centre and reception tools to dental practices. It works like a co-pilot, listening to calls, telling the operative the caller's emotional state and proposing next steps. It might say: this is a potential £20,000 sale, so the next call shouldn't come from the receptionist but from the dentist herself. That side-by-side hybrid approach strikes him as potentially amazing.

“This is a potential 20,000 sale. The next call shouldn't come from the receptionist. It should come from the dentist herself.”

The point: AI can augment human service to capture opportunities, rather than merely replace staff to cut costs.

Sources (1)

Airports are schizophrenic

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Rory is a small-airport person. Airports are schizophrenic, he says: roughly half their clientele fly constantly and just want to get through as fast as possible, while the other half fly once a year, see the airport as part of the holiday and love browsing Hermès. You can separate them at security. Sometimes the priority lane queue is longer than the ordinary one, yet frequent business travellers still join it, assuming the people ahead of them will be more competent.

“Airports are effectively catering for two totally disparate groups of traveller.”

The point: Serving opposite customer types well means designing separate paths, not averaging between them.

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Amazon's board threatened to resign over Prime

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Rory notes that when Jeff Bezos proposed Amazon Prime, several Amazon board members threatened to resign if he implemented it. It does not seem innovative now. He thinks the mechanic of paying to belong deserves far more exploration: it is a commitment device, and people like the choice reduction it brings. Online, with a vast plethora of options, a mechanism that says I'll go there first makes life easier.

“Several people on the board of Amazon threatened to resign if he implemented it.”

The point: Paid membership works as a commitment device and a welcome shortcut through excessive choice.

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Amazon's CD rack and the review that found it 'a little wooden'

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We forget that Amazon started as an online bookstore. Bezos surely had the everything store in mind, but for years it sold only books and CDs, plus, Rory remembers, a CD rack. Because people thought of Amazon as a bookstore, they reviewed the CD rack as if it were a book: 'I found the style a little bit wooden.' Rory and colleagues found this hysterically funny. The lesson: staying alive long enough to get lucky, and experimenting at small scale while you can afford to, beats betting the farm on one big idea.

“I found the style a little bit wooden.”

The point: Growing small and surviving long enough to get lucky beats an all-in bet on a grand plan.

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An online audience bigger than Wembley

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Rory appears indiscriminately on podcasts because of network effects: whether the audience is 100 or 100,000, an hour or two beats talking to one person. When Nudgestock went online during Covid, people sniffed at 130,000 live viewers compared with Coronation Street in 1983; Rory pointed out that is bigger than Wembley or the Melbourne Cricket Ground. Advertising works one client at a time and has never exploited network effects. Mention an anomaly to a bureaucrat and he ignores it; mention it to an entrepreneur and he sees an arbitrage.

“By comparison with a physical audience, it's insane.”

The point: Choosing the right comparison reveals the true scale of an opportunity, and one-to-many beats one-to-one.

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Answering in three seconds instead of eight is wasted effort

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Call centres had lots of data on how fast phones were answered, so they became obsessed with bonusing staff for answering faster. Then they discovered that as long as you answered within eight seconds, whether it was eight or three made no difference to customer perception. Fifteen to eight matters a great deal to how annoyed customers are; eight to three, you might as well spend your time on something else.

“8 to 3, you might as well spend your time on something else.”

The point: Chasing an available metric past the point of diminishing returns wastes effort that could improve what customers notice.

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Any colour so long as it's black

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Rory calls Henry Ford a brilliant marketer. Why did he say you can have any colour as long as it is black? Because paint dried at different speeds depending on colour, so a mix of colours disrupted the flow of the production line, and black dried fastest. So he imposed black on the whole fleet. It is absolutely fine to deny people something and ask them to make a trade-off, so long as you make them aware of it in advance.

“It's absolutely fine not to give people something, so long as you make them aware of the trade-off in advance.”

The point: Explicit constraints that enable efficiency are accepted when customers know them upfront.

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Apple and the beige computer that turned rooms into offices

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Rory suggests Apple practised reverse benchmarking. Rivals competed on technological superiority, while Apple produced something slightly behind the curve technologically but made it look good. In the 1980s and 1990s, putting a beige computer in a room at home turned it into an office: you might as well install three filing cabinets and a photocopier. Doubling down on rivals' weak spot creates differentiation, profit, more category choice and better consumer options, whereas benchmarking is a lot of people walking into a corner together.

“Benchmarking is effectively a lot of people walking into a corner together.”

The point: Competing on the dimension rivals neglect beats matching them on the dimension they obsess over.

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Apple sitting out the AI party

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Jeff Bezos says don't bother with things that pay off in the short term, because that is what all your competitors are doing. In the same contrarian spirit, Rory nominates Apple's decision to sit out the AI race and rent the technology from Google as the ballsiest large-company decision of the last six months. Despite pressure to claim a world-leading AI, Apple effectively said: we don't know there's money in this, or that it's winner-takes-all like search, or even economical, so we'll sit this party out.

“We're going to sit out this party.”

The point: Declining to follow a hyped race can be the bravest strategic choice, though it never looks like action.

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Argos was insane to get rid of its catalogue

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One thing marketers tend to be right about and finance wrong about: finance wants to drive everybody through the lowest-cost channel because it looks efficient, but the more channels you sell through, the more you sell, because not everybody is in a buying situation all the time. Rory still thinks Argos was insane to scrap its catalogue. You can claim the cost savings of not printing it, but you've removed a whole heap of buying opportunities. (Harpin added that Boden dropped its catalogue, sales fell, and it was reintroduced.)

“You've just removed a whole heap of buying opportunities.”

The point: Cutting a channel to save cost can destroy far more sales than it saves, because each channel creates buying moments.

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Ask what annoys people to find broken rules

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Rory's test for finding which rules will be broken: ask people which part of compliance really annoys them. You can guarantee they will find ways around that process every time they meet it. He says he regards it as his moral duty, when someone imposes a rule he regards as stupid, to find a loophole.

“I regard it as my moral duty when someone imposes a rule on me that I regard as stupid to find a loophole.”

The point: Irritation is a reliable predictor of non-compliance, so annoying rules are the weakest ones.

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Ask what's changed, not what's new

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We spend too much time talking about what is next and too little about what has changed. Video conferencing is old technology, Skype has existed for decades, but the pandemic gave the whole world a crash course in it and normalised it: asking a client to meet on Zoom would have seemed weird in 2017. YouTube is similar. Watched on a 55-inch TV, it is now indistinguishable from broadcast, and the volume of content means it is becoming video Wikipedia: ask about the Peloponnesian War and someone has made a 40-minute programme on it.

“What's changed, as opposed to what's new, is a really important question.”

The point: The biggest opportunities often come from shifts in behaviour around old technology, not from new inventions.

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Ask when you're next home, not what needs doing

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TaskRabbit, Trusted Traders and similar sites ask the wrong question: 'What do you need done?' Rory thinks a billion pounds of home-handiwork value is being squandered in each country as a result. The right question is 'When are you next going to be at home all day?' He works from home most Fridays, so the site could reply that on those Fridays it has a plumber, carpenter, handyman, painter and plasterer free: how many would you like? The barrier is coordination, not price.

“The question you ask is: when are you next going to be at home all day?”

The point: Reframing the question around the customer's real constraint unlocks demand that price cuts never would.

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At Crécy, make it about archery

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When everyone dances to the tune written by analysts for easy comparison, businesses come to resemble each other. Sometimes it is better to be differently wrong than conventionally right; that is simple game theory. If you face a superior force, do not compete on its terms or you will lose. At the Battle of Crécy the English king, vastly outnumbered by heavily armoured knights, dug trenches, planted stakes and made it an archery contest, and won.

“You're better off being differently wrong than being conventionally right.”

The point: Against stronger rivals, change the terms of competition rather than fight on theirs.

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Back-to-office mandates put landlords before employees

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What annoyed Rory about back-to-the-office mandates is that they were employers effectively saying 'we think our landlord's interests are more important than our employees' interests'. He would rather say: all work from home, and we will take our rent bill and give it to you as salary. It prioritised the interests of land over labour.

“We think our landlord's interests are more important than our employees' interests.”

The point: Policies that seem neutral may transfer value from workers to landowners.

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Bad finance prefers a certain 3 per cent to a possible 15

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Roger Martin thinks three-quarters of CFOs have a net negative effect on their businesses. Bad finance has two vices. First, an obsession with certainty and instant results: preferring a definite 3 per cent to a possible 15 per cent even when the odds favour the latter. Demand certainty and immediacy and nine times out of ten you resort to cost-cutting. Second, demanding ridiculous levels of proof, which biases towards cost-cutting over investment and makes imaginative marketing almost impossible, because, as Martin says, there's never any data about the future. Competition happens on the shelf and in the mind, not the factory.

“You'd rather have a definite 3 per cent than a possible 15 per cent.”

The point: Demanding certainty and proof systematically favours cost-cutting over value-creating bets.

Sources (1)

Before Zoom, B2B had first dates and marriage

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In business-to-business, Rory says, there used to be only two modes of interaction: distant and weak (a stand at a German trade fair, emails, letters, golf days) or the face-to-face meeting, high-stakes, expensive and hard to organise. Zoom fills the middle of the funnel. Before it there was basically a first date and a marriage, with nothing in between: no engagement, literally or metaphorically, no 'I think we might commit here, let's continue this conversation'.

“Until Zoom came along there was basically first date and there was marriage, and there was nothing in between.”

The point: A cheap intermediate step can unlock relationships that were all-or-nothing before.

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Behavioural science lets you talk marketing to non-marketers

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Rory says perhaps half the value of behavioural science is that it lets you talk marketing to people who are not marketers. He found this out almost by accident through his book and TikTok: change the language away from the specialist argot and the appetite for what marketers do is ten times bigger. You can put a cash value on behaviour far more easily than on attitude change, and asking how to get people to do X instead of Y is a game everyone can play.

“Fifty per cent of the value of behavioural science is the ability to talk marketing to people who aren't marketers.”

The point: Reframing marketing as behaviour change makes it legible and valuable to finance, operations and CEOs.

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Benchmarking makes everyone the same

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Companies increasingly compare themselves with everyone else without noticing the downside: they become more and more similar. When businesses converge, everyone loses. Firms are locked into cut-throat price competition with lookalikes, investors see a less diverse category, consumers get less choice, and employees have no real choice of workplace. Rory jokes that the advertising holding company he worked for was basically quarterly reporting with a sideline in advertising.

“It's basically quarterly reporting with a sideline in advertising.”

The point: Copying competitors' metrics and practices destroys the differentiation that protects margins and choice.

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Better the right thing wrong than the wrong thing right

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Borrowing what he thinks is a Peter Drucker line, Rory argues it is much better to do the right thing wrong than the wrong thing right, yet an awful lot of business is focused on optimising something that shouldn't be optimised in the first place. Effort spent perfecting the execution of the wrong goal is effort wasted, however efficient it looks.

“It's much better to do the right thing wrong than the wrong thing right.”

The point: Choosing the right objective matters more than optimising performance against the wrong one.

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Bezos and Royal Mail's next-day delivery

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Agreeing that the UK's compact geography gave Gymshark an advantage, Rory says that when Jeff Bezos first came to the UK and discovered that next-day delivery was a standard Royal Mail service rather than a premium one, he was totally freaked out.

The point: Infrastructure taken for granted locally can be a significant competitive advantage seen from outside.

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Biases do not cancel out in meetings

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Rory thinks the greatest value of behavioural science will come not from individual consumer behaviour, where it started because that is easiest to measure, but from social and institutional behaviour. We assume individual consumers are biased, but that once you put them behind desks or around a meeting table the biases even out. He thinks the opposite: sometimes those biases become amplified, so collective decision-making deserves far more scrutiny.

“Sometimes those biases actually become amplified.”

The point: Institutions are not immune to bias; group settings can magnify the errors of individuals.

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Bob Crandall's lifetime first-class pass

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American Airlines' Bob Crandall is one of Rory's heroes, though some ideas were nuts. Short of cash, he sold unlimited lifetime first-class travel for a quarter of a million dollars. The airline spent about eight years trying to identify the buyers and find a legal loophole to get rid of them, as they turned up for five-course meals in first class and flew back again, taking friends to London for lunch. Mad, but Crandall also invented about five killer ideas, including Sabre, and they arose not from deductive logic but from feats of imagination.

“Mad idea, but he invented about five absolutely killer ideas.”

The point: Imaginative leaders produce some disasters, but also the breakthroughs that deduction never would.

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Bought whole, managed in pieces

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We only truly value trust, brand and goodwill when buying a business; everyone understands them then. The moment the buyer runs it, the mechanisms used to optimise it neglect the very intangibles they paid a premium for, one explanation for why so many takeovers fail. In an afterword to a paper by Benedict Johnson called 'The Diligence Gap', Rory summarises: the asset is bought whole, the operating model manages it in pieces. Trust is no department's responsibility, and many are incentivised to erode it for short-term margin.

“The asset is bought whole, the operating model manages it in pieces.”

The point: Intangibles that justify an acquisition price are neglected by the metrics used to run the business.

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Business is a casino

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Rory thinks business is entertaining, but most effort in business goes into pretending it is not. Business promotes and rewards deterministic thinking, making it formulaic and tedious, when in fact it is probabilistic: a casino of competing bets on different visions of the future. Some think Jaguar is mad, some think it is on to something. The richest and one of the most intelligent companies in the world spent billions on Apple Vision Pro with no real clue whether it is the future of computing or a load of old bollocks.

“Business is probabilistic. It's a casino. It's competing bets on different visions of the future.”

The point: Pretending business is deterministic makes it dull and blinds firms to the bets they are really making.

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Business is Olympic sprint cycling, not the 100 metres

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In the 100 metres there is one metric: go as fast as you can. In Olympic sprint cycling, riders crawl round for laps, sometimes come to a standstill, because whoever leads creates a slipstream for the rider behind and is almost doomed to lose. What your rivals do matters. Rory argues most competitive businesses are in the cycling event, not the 100 metres: success depends on differentiation and which niches you occupy. Sailing, with clean air and tacking off to a different part of the lake, is an even better metaphor.

“You have to spend as little time as possible going fast in first position.”

The point: In competitive markets the winning strategy depends on others, so optimising a single metric is the wrong game.

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Business is the only sphere that pays you to change your mind

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Amos Tversky said that what he and Kahneman did was codify things already known by car salesmen and advertising executives, and business failed to do that codifying itself. But business has advantages over academia as a problem-solver. It is not trying to be right, just progressively less wrong. It rewards you handsomely for discovering something true that others disbelieve. It is probably the only activity that literally pays you to change your mind, which overcomes confirmation bias. And it handles questions with more than one right answer.

“Business is probably the only sphere of human activity where it pays you literally to change your mind.”

The point: Profit incentives make business a good engine for overcoming confirmation bias and exploring many right answers.

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Buy Korean, they're motivated to wind up the Japanese

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Rory's tip: buy Korean tech and cars, because Koreans will make fantastic products regardless of profit, to wind up the Japanese. Christianity was a tiny niche in Korea until Japanese occupation, when Christians who refused to acknowledge the emperor's divinity were martyred and it became a patriotic religion; hence, he says, the largest Episcopalian [?] church in the world is in Seoul. Many German firms are driven by sibling rivalry: Puma versus Adidas, Aldi North versus Aldi South. When firms harness motives besides profit, the consumer wins.

“Other people are just trying to make money.”

The point: Rivalry and pride can drive quality beyond what profit alone would, to the customer's benefit.

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Cancelling a likely winner to hit the quarter

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Large companies' innovation records are poor, which should not surprise us. Asked whether they would cancel a programme they believed was 80% likely to be highly profitable if it meant meeting a quarterly target, 80% of people in large companies apparently said yes. The incentives reward boring, certain, incremental improvements, not breakthroughs or moonshots.

“Would you cancel a programme you believed was 80% likely to be highly profitable if it meant you could meet your quarterly target? 80% said yes.”

The point: Short-term targets lead managers to sacrifice valuable long-term bets.

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Capitalism is a mechanism for rewarding luck

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Leave 10 per cent for experimentation and pure luck, Rory argues. Many who do well under capitalism are idiots who stumbled into the right business at the right time; even Gates, Jobs and Ellison, though brilliant, were born within about 18 months of each other at the one moment to make it big in tech. People hate capitalism for rewarding luck, but without that mechanism most great discoveries never get made: penicillin and Viagra were accidents, and vaccination came from one man noticing milkmaids did not get smallpox.

“You've got to do enough eccentric things to give yourself the chance to be lucky.”

The point: Systems that reward lucky accidents capture discoveries that planning never would.

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Capitalism pays for seemingly irrational discoveries

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Unlike academia, Rory says, capitalism has a reward mechanism: discover something nobody else has and you make a lot of money. That gives people an incentive to take high-risk gambles, because the payoff is disproportionately high when an idea is hidden from conventional competitors precisely because it looks irrational. Hence the essential Hayekian role of the entrepreneur, a person who does not have to justify himself to a committee.

“The entrepreneur is a person who doesn't have to justify himself to a committee.”

The point: Entrepreneurs can pursue ideas that institutions cannot because they need no defensible rationale.

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Caviar House found airport space nobody else could use

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Asked what restaurant he'd open in London for money, Rory would look for a real estate play: a concept that works in space where nothing else would. He was baffled by how many Caviar House seafood bars there are in airports, since he wouldn't risk seafood before 12 hours in a pressurised tube. It's ingenious: cold seafood needs only a big fridge, a power supply and some stools, no ventilation or cooking, so it can occupy airport space nobody else can. Think like a game theorist: look not at what's perfect, but what's underrated.

“All you need is a big fridge and a power supply.”

The point: Designing a concept around an unused constraint can unlock cheap space that competitors cannot occupy.

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Centralise forensics, keep policing local

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Gains from scale are easier to quantify and arrive sooner than the costs. Rory cites Elinor Ostrom's work on policing: centralise forensics, since every precinct having its own lab would leave it idle, but keep precinct policing local, perhaps within Dunbar's number of about 150. Militaries and Oxford colleges work in small clusters within larger wholes. He notes Europe reverted to nation states as the unit of containment in the pandemic, and argues you can often take a local solution and generalise it up, but it is much harder to take a general solution and localise it down.

“You can sometimes take a local solution and generalise it up, but it's much harder to take a general solution and localise it down.”

The point: Choose the scale for each function; centralisation's easily measured gains can hide large local costs.

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Cheap things that work have no stakeholders

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Rory's friend Charlie runs a brand partnerships agency whose work always succeeds: ingenious, brilliant, cheap. Why, Rory asked, only 15 people? Because it costs little, client organisations have nobody, or one person, in charge of brand partnerships, while expensive things like media have tons of people around them. Things that work super-efficiently get little internal support because they are not expensive enough to deserve attention. Rory jokes about an agency for unfashionable things that work, with a head of branded merch: he would buy a London City Airport bear.

“Things that are expensive tend to have loads of stakeholders.”

The point: Organisational attention follows budget size, so cheap, effective tactics are starved of champions.

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Chicago's back alleys versus New York's garbage trucks

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Chicago, rebuilt after its great fire, has an advantage over New York: every building has a back access path where rubbish is taken out and deliveries arrive. So you don't get the weird New York experience of sitting outside a Michelin-starred restaurant with a garbage truck and a rat four feet away.

The point: Hidden infrastructure design shapes everyday experience far more than people notice.

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Clever, similar people stop asking questions

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Brilliant people share a cognitive failing: once they make sense of something to their own satisfaction, they stop asking questions. As Matthew Syed shows in Rebel Ideas, a group of high-IQ but cognitively similar people is prone to two things: massive blind spots, because they are wedded to one model that makes the problem legible, and doubling down when they fail. Diversity of background, ethnicity and gender matter as parts of a wider diversity of opinion. In human systems, nobody is ever completely right or completely wrong.

“Once we make sense of something to our own satisfaction, we stop asking questions, we stop looking.”

The point: Cognitive diversity protects groups from shared blind spots and escalating failure.

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Comedy is fast feedback; banking is slow

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Some businesses get fast feedback and learn quickly. Comedy is the extreme: the audience tells you within seconds if a joke lands, which is why Chris Rock turns up at small clubs to try new material before a tour. Amazon, with frequent customer interactions, is fairly fast. Banking and insurance are unbelievably slow: annoy a bank customer and they do not even leave, they just go inert, opening an account elsewhere and buying nothing more from you.

“If you're a bank and you annoy a customer, they don't even leave. They just go inert.”

The point: In slow-feedback businesses the damage from poor experience is invisible, so it is chronically underweighted.

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Commoditise yourself and you fight your most desperate rival

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If all your competitors make rational decisions on the assumption of a rational customer, they become more and more alike, looking at the same data and making the same assumptions. There is not much money in commoditising yourself, because your life will always be a battle with your cheapest and most desperate competitor. The messiness and uncertainty of psychology is precisely what makes it an unpopular place for competitors to look, and so a place to differentiate.

“Your life will always be a battle with your cheapest and most desperate competitor.”

The point: Psychological differentiation escapes the price war that rational sameness produces.

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Company cars, a better car than you could justify to your spouse

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After Rita McGrath's story of drywall contracts won by giving clients NASCAR tickets, Rory says symbolic acts matter enormously; a haulage boss wrote that after reading his book they now spend money on things they previously thought silly. Corporate perks are guilt-free indulgence: most people could afford them, but feel guilty spending their own money. Company cars let you have a better car than you could justify buying to your own spouse. Corporate austerity is misguided: judicious extravagance at the right moments is anthropologically necessary to form people into teams.

“Company cars allowed you to have a better car than you could justify buying with your own money to your own spouse.”

The point: Perks reduce the mental transaction cost of indulgence, creating value beyond their price, and austerity destroys it.

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Competition is decided on the shelf, not in the factory

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Thanks to the shareholder value movement, boards believe they compete on operational efficiency, that competition happens in the factory. In reality, Rory says, 95% of competition is decided on the shelf or in the sales room. Sit in a large company's board meeting and you see how small a share is given to growth, opportunity and revenue versus costs and overheads. Board conversation is about everything except the customer. He argues good CX and UX people should often be the best paid in the business.

“95% of competition actually gets decided on the shelf or in the sales room.”

The point: Firms over-invest attention in efficiency and under-invest in customers, where competition is won.

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Confine finance to barracks

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The mathematics of discovery lies outside what finance departments are familiar or comfortable with: they are Excel jockeys, not Gödel or Einstein. Discovery maths includes things we do instinctively, like going to parties: not because you know the outcome, but because if you never go, you never get lucky, what Nassim Taleb calls increasing your exposure to positive optionality. Power laws and fat tails are beyond finance's comfort zone, so finance should be confined to barracks to run the exploit side, with no veto over what it does not understand.

“They shouldn't be allowed to have a right of veto over anything they don't understand.”

The point: Exploration needs a different maths from exploitation, so finance should not govern it.

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Consultancy versus an afternoon of insight

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Management consultancy spends a fortune on armies of people to produce boring incremental improvements, and businesses love it. Human insight can, in an afternoon, find something worth millions without 400 Oxbridge graduates annoying your colleagues for nine months. Insight is unpopular not because it lacks value but because it is unpredictable. Do something eccentric that succeeds and you get a pat on the back; do something boring that succeeds and you are made CFO; do something interesting that fails and it is career suicide.

“If you do something eccentric and it succeeds, you get a pat on the back. If you do something boring and it succeeds, you're made chief financial officer.”

The point: Corporate incentives reward predictable incrementalism over high-value but uncertain insight.

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Cost reduction isn't a strategy

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Marketing has an opportunity mindset; finance has an efficiency and cost-reduction mindset. You'd be insane to live purely opportunistically, but a balance-sheet view fetishises cost cuts as the fastest route to margin. If cuts come at the expense of missed opportunities, you haven't reduced a cost, you've destroyed an opportunity, and it's invisible because costs are quick to cut while opportunities take time. Cost reduction isn't a strategy: your strategy sets appropriate costs. A premium brand that skimps on customer service, or a premium carmaker skimping on door handles, creates dissonance.

“If those costs come at the expense of missed opportunities, you haven't really reduced a cost. What you might have done is destroy an opportunity.”

The point: Spending should follow strategy; cost-cutting as an end in itself silently destroys value.

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Creating a memorable spike in a service

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Rory cites the chess writer and memory competitor Raymond Keene [?] on three memory effects: primacy, recency and the von Restorff spike, where one item that stands out from a list is far easier to remember. He suggests service organisations such as airlines and hotel chains could deliberately create a random, particularly noticeable moment of truth that would dwarf everything else in how the experience is remembered.

“Do you actually create what we might call a random moment of truth, which is just particularly noticeable and will dwarf everything else?”

The point: Memory is shaped by beginnings, endings and standout peaks, so a single designed moment can outweigh uniform service quality.

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Creative departments too small, account handling too big

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Every agency on the planet, Rory says, has a creative department that is too small and an account handling department that is too big, though most mega value comes from planning insight or creative ideas. Partly it is how agencies are paid since commission ended. Partly it is anthropology: creative and planning departments have a prestige hierarchy, while client service has a dominance hierarchy. The silverback account man, given money, would rather hire people who report to him than fund parts of the agency that go their own way.

“Client service people for some bizarre reason absolutely love having direct reports.”

The point: Status hierarchies inside firms divert resources away from where value is created.

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Cut the discretionary 'waste' and you lose the magic

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On John Hegarty's claim that losing long boozy lunches has hurt creativity, Rory argues that if you strip the 10 to 20 per cent of ostensible waste out of advertising, the time and money not billable or demanded by any client, it is no longer the advertising industry, nor a rewarding place to work. In cost cutting, the magical, discretionary, unnecessary things go first, yet they are the icing without which there is no cake. He welcomes the decline of the really heavy drinker, though: he once worked with high-functioning alcoholics you had to brief in the morning.

“Those things which are magical, discretionary, unnecessary are the first to get cut.”

The point: Apparent inefficiency often contains the slack that makes creative work possible.

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David Ogilvy's list put profit first, until Marvin Bower objected

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David Ogilvy had a list of principles for his agency that began with making a profit for shareholders every year, followed by nine other things. His friend Marvin Bower, the McKinsey guru, said any business that puts profit at number one deserves to go under, so it was moved down to number nine. Rory sees the problem of financialisation in this: companies start to think their investors are their target audience rather than their customers, which creates a massive distortion.

“Any business that puts profit at number one deserves to go under.”

The point: Profit follows from serving customers well; treating investors as the audience distorts the whole business.

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Decisions made for a bullet point in the investor deck

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In a large PLC, every time a decision is made that everyone thinks is stupid, the reason is that someone wants a bullet point in the investor presentation saying 'back-office savings through gains to scale and tech consolidation'. These phrases are like mantras in religion. Rory doubts gains to scale exist in many businesses, which seem to accumulate bureaucratic baggage as they grow. Ideas consonant with narrow business theory, such as 'cut the price and demand rises', should be tested, because sometimes the opposite is true.

“Someone wants to put a bullet point in the investors' presentation which says back-office savings through gains to scale.”

The point: Decisions that fit received theory escape scrutiny, even when they destroy value.

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Demanding logic destroys magic

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Logic is the best way to win an argument, but not necessarily to succeed in life. Entrepreneurs are disproportionately valuable precisely because they are not confined to doing what makes sense to a committee. Steve Jobs, James Dyson, Elon Musk and Peter Thiel often seem certifiably bonkers, and Henry Ford so despised accountants that the Ford Motor Company was never audited while he ran it. A world oversupplied with economists, analysts and spreadsheet-tweakers makes it ever harder to practise magic, or even experiment with it.

“When you demand logic, you pay a hidden price: you destroy magic.”

The point: Requiring a logical justification up front filters out the unconventional ideas that produce outsized results.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Design for the disabled and you reach everyone

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Designing for the disabled is good business, because the target audience turns out far larger than expected. Few people have coeliac disease, but many buy gluten-free. Wheelchair ramps help anyone with wheelie luggage. Door handles instead of knobs help people with arthritis, and anyone carrying two bags of shopping who opens the door with an elbow. Shampoo bottles opening at the top and conditioner at the bottom help the visually impaired, and Rory in the shower without his glasses, who can't see a thing.

“When you're carrying two bags of shopping you've effectively lost the use of your hands.”

The point: Solving for extreme users often produces better designs for the mainstream.

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Diagnostic momentum, businesses start with money

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Pat Croskerry, a psychologist turned doctor, coined 'diagnostic momentum': where you start diagnosing a patient should be fairly irrelevant, yet it has huge path-dependent effects. A hospital where everyone was first seen by a dermatologist would produce completely different treatment paths from one starting with a cardiologist or GP. Rory thinks businesses and the sclerotic public sector go wrong by starting with money, or lawyers: in government every idea goes to the Treasury first. Where you start determines where you get to.

“Where you start fundamentally determines where you get to.”

The point: Starting a problem in finance narrows every solution that follows.

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Did anyone notice the AOL Time Warner merger?

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The AOL Time Warner merger was heralded as the largest deal of all time. Rory asks an audience who are almost all customers of one or both firms whether anybody noticed anything different as a result. Unless you were a shareholder, a dealmaker or one of the lawyers, it was a huge piece of activity that meant absolutely nothing to anybody.

“A huge piece of activity that meant absolutely bugger-all to anybody.”

The point: Big, expensive strategic moves can have no effect at all on what customers experience.

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Diverse stupidity adds up to intelligence

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Rory cites Steve Keen's paper 'Will Economics Kill Capitalism?': the pressure to behave consistently with theory rather than with empirical success makes people adopt stupid behaviours, and worse, stupid in exactly the same way. A wide range of stupidity, combined with an evolutionary selection process, aggregates into something like intelligence, called Mandevillean intelligence. Lots of people with odd tastes combined produce quite a good car. If everyone chooses a car by one metric, cars will be fantastic on that dimension, appalling everywhere else, and all look the same.

“If you get a wide range of stupidity, it actually aggregates up to something that looks a bit like intelligence.”

The point: Diversity of approach makes systems smart; uniform metrics make everyone wrong in the same way.

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Diversity of opportunity beats equality of opportunity

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Rory put a thought experiment to a recruitment firm. Imagine every HR director were oddly prejudiced, but each in a completely different way: one obsessed with Oxbridge graduates, another with hiring Jamaicans, a third with Scousers. Over time, multiple differing prejudices, diversity of opportunity rather than equality of opportunity, would create a more efficient market for talent than today's regimented system, where the need to look fair forces identical criteria on everyone and wastes the majority who fail them.

“Multiple differing prejudices, or what you might call diversity of opportunity rather than equality of opportunity, would provide a more efficient market for talent.”

The point: Varied, even idiosyncratic, selection criteria across a market find more talent than one uniform 'fair' standard.

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Don't say 'you're free to work from home'

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One thing Rory discovered in trying to crack video conferencing adoption: never tell staff 'you're free to work from home'. Said that way it is a concession, and people feel they are burning reputation or capital every time they use it. Only if you say 'no, you don't understand, I want you to work from home' do you get a behavioural shift. He sees the same insight bearing on everything.

“It's not that you're free to work from home, I want you to work from home.”

The point: Permission framed as a concession carries a hidden reputational cost; an explicit expectation removes it.

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Dumb ideas pay off faster than big ones

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Because everything big meets resistance, Rory thinks dumb ideas pay off faster than really big ones. Near his old home in Raglan, a new dual carriageway replaced the A-road to Abergavenny; people adopted it within about ten seconds, because they were already making that journey. High Speed 1, a good idea, was something of a white elephant for its first four or five years, because it required new journeys: people moving to Folkestone, or Folkestone residents discovering they could shop in London.

“Dumb ideas are faster to pay off than really big ideas.”

The point: Improvements to existing behaviour pay back quickly; enabling new behaviour takes years, so judge them differently.

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Early warning signs that your chief executive is going mad

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Rory met Seb James, who told him there is apparently a guide for company chairmen on early signs that a chief executive is going mad. They include an enormous new corporate headquarters, a weird obsession with tiny details, and an obsessive belief that they're underpaid, among four or five such conditions. It usually happens after five or six years of uninterrupted success, when it becomes hard not to get delusional; leaders get bored and want to do more, even if it's wrong.

“There's apparently a guide written for company chairmen which warns you of early signs that your chief executive is going mad.”

The point: Sustained success breeds hubris, so ego-driven expansion should be read as a warning sign.

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Efficiency models go from toy to theory to tradition to trap

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Rory cites his friend Guru Madhavan, an engineer, on how efficiency models decay through four Ts. A toy: a dashboard tracking warehouse picking speed, harmless and helpful. A theory: it becomes unquestioned ideology, applied to every department, as with optimising every billable hour or zero-inventory just-in-time supply. A tradition: the original context is forgotten and it hardens into ritual, bureaucracy and bonus structures. A trap: Goodhart's law bites, and having engineered out all resilience and redundancy, the system collapses.

“Toy, theory, tradition, trap.”

The point: Useful local optimisations become dangerous when generalised into unquestioned systems that strip out resilience.

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Eight years working for Sorrell, one video call

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Rory calls slow video-conferencing adoption the Fermat's Last Theorem of human behaviour: it took a pandemic. A senior WPP figure worked for Sir Martin Sorrell for eight years and was often summoned to, say, Brussels for breakfast to discuss a balance sheet. In all that time, around 130 meetings, they met by video once, though they knew each other well and at least 20 could surely have been virtual. Was it status, convening power? Was travel a costly signal of commitment, proving dedication by a 6am flight to Frankfurt rather than good work? 'Dance monkey' syndrome.

“We prove to our clients how committed we are not by doing good worthwhile work but by getting on a plane to Frankfurt at six o'clock in the morning.”

The point: Travel persists as a status and commitment signal long after it stops being functionally necessary.

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Electric vehicles widen the adjacent possible

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The important thing about electric vehicles is not making modern-looking cars electric but the potential for miniaturisation. A bicycle is killed by hills, rain, luggage and shopping; the electric cargo bike takes care of hills and adds storage, a happy compromise between car and bike. The Citroën Ami, a tiny two-seater rented for about 200 a month, could suit 16-year-olds. You cannot really miniaturise petrol, or make it driverless as easily, so in evolutionary terms the adjacent possible for electric is much bigger.

“In evolutionary terms for electric cars the adjacent possible is much bigger.”

The point: New technologies matter most for the new forms they enable, not for copying old ones.

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Email destroyed more serendipity than flexible working

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Bosses claim flexible working kills serendipity, but Rory says serendipity was already in decline. In the 1980s everyone went out on Friday afternoon, got drunk and ate together; that was where serendipity happened. Email destroyed far more of it than flexible working, yet nobody questioned email, because staff don't like email, so nobody got suspicious. When staff started enjoying flexible working, everyone immediately asked where the downside was. He suspects the UK returned to offices more than the US partly because of its better drinking culture.

“Email destroyed far more serendipity than flexible working did.”

The point: We scrutinise changes people enjoy and ignore the costs of changes they dislike.

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Employee satisfaction is a windscreen, not a rear-view mirror

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Businesses assume staff are motivated purely by pay and incentives. Rory points to a US investment fund, involving Dan Ariely, that chooses where to invest principally by employee satisfaction, with about five years of fairly robust data. The great thing about employee satisfaction, he argues, is that it is a windscreen, not a rear-view mirror: it has predictive value. Costco would be a fantastic example, though founder-run and family-owned firms, often unlisted, probably score highest.

“Employee satisfaction, I would argue, is a windscreen, not a rear-view mirror.”

The point: Soft measures like staff satisfaction can predict performance better than backward-looking financials.

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Every client needs a director of trivia

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Rory partly blames clients: they do nothing unless there is a job title attached. There is no director of choice architecture, so he says clients should have a director of trivia who sorts out all the irritating little things that fall between too many stools. It is worse now that procurement demands every activity be defined a year in advance, so an interesting unbudgeted idea means scraping pennies from the back of the sofa.

“Clients should have a director of trivia who sorts out all the little things that are really annoying.”

The point: Small problems that belong to no department never get fixed, though fixing them is cheap and valuable.

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Everyone loves subscriptions; consumers have a finite appetite

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Every online business loves the subscription model, but consumers have a finite appetite for subscriptions before they feel they are losing control of their finances. It would be wonderful to be Netflix, the one people won't cancel, but there is a category problem distinct from the brand problem, which is distinct again from the departmental problem. Everything is nested: category, business, department. The department doesn't care about the category and barely about the brand.

The point: Decisions must be judged at the level of category and brand, not just the department making them.

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Experience goods, nobody likes their first lager

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Some products are experience goods: you only appreciate them after repeated use. Most 18-year-olds starting on lager think it does not taste very nice. Rory suspects the bottleneck for Gousto is that not enough people have tried it four times, admitting a better creative might find words to convey what they are missing. A friend with an alcohol-free beer brand thinks his market is capped at people over 25 who learned to like beer through drinking it.

“There are certain goods and services and products which are what economists call experience goods.”

The point: For experience goods, the barrier is getting repeated trial, not persuasion.

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Explorers should suggest upwards, not take briefs downwards

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Marketing, R&D and a few other functions are the explore part of an organisation, but they sit downstream of decisions made elsewhere, as in government. Nobody facing a pensions or tax problem calls in marketing people or retailers; they call economists and lawyers. The problem is defined in economic terms, so it can only be solved in economic terms, and the marketer is handed a fait accompli and allowed to add a little fairy dust. That removes the potency of the random bees, whose job is to suggest things upwards.

“The marketer gets to add a little bit of magic fairy dust, a little bit of icing on the cake, and that's all they're allowed to do.”

The point: Whoever defines the problem limits the solution, so exploratory functions must be involved upstream.

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Fair recruitment makes everyone the same

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Rory calls it almost a paradox: the more people try to make recruitment look fair, methodical and rigorous, the more homogeneous it becomes. Apply the same criteria to everybody and everybody you choose is the same. For an agency, the mixture of people is not a by-product but essential to how it functions, and extraordinary ability at anything is interesting in itself.

“The only problem about applying the same criteria to everybody is that everybody you choose is then the same.”

The point: Standardised selection criteria optimise away the diversity of minds that creative work depends on.

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Fame reverses the polarity of business growth

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Discussing the host's sweet brand, which launched with a well-known founder, Rory says starting with fame is an extraordinary benefit. Fame is valuable because it means customers find you rather than you having to find them. It fundamentally reverses the polarity of business growth, which raises the question of whether content creators will be the next generation of business owners.

“Fame is extraordinarily valuable because it means that customers find you rather than you having to find them.”

The point: Attention already earned is a growth asset that inverts the usual cost of acquisition.

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Fifty phones in a hand cart

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Rory predicted driverless cars would be hacked: in San Francisco a traffic cone on a Waymo's bonnet confuses it completely, and because it cannot run anyone over, carjackers need only stand in front of it. Residents mark their streets as closed on Waze to deter traffic. And one man, he thinks in Chicago, walked a hand-drawn trolley carrying 50 mobile phones at 4 mph, convincing Google Maps of massive congestion. Engineers optimise for a perfect world, but it only takes one person in billions to find the weak spot.

“It only takes one out of six billion people to find a weak spot.”

The point: Optimised systems are fragile to human ingenuity, so designers must look for exploits, not just efficiency.

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Finance seized power because it has a pet discipline

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Rory argues neoclassical economics has acquired an unwarranted monopoly on commentary and decision-making. Few people quote Milton Friedman in meetings, but, as Keynes said, practical men are unwittingly slaves of some defunct economist. The finance function has seized the levers of power partly because it has a pet intellectual discipline to call its own. Marketers should lead the charge against these Newtonian models, borrowing from evolutionary theory, heterodox economics and behavioural design: a revival of early Mad Men, not just the drinking habits but the intellectual habits.

“A revival of early Mad Men, not just the drinking habits but the intellectual habits as well.”

The point: Marketing loses arguments to finance because it lacks an intellectual framework of its own, and should adopt one from the wider sciences.

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Financial advisers are therapists, and Zoom saves the biscuits

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Rory needed a human being to coach him into paying off his mortgage; it was too big a decision alone. Financial advisers are financial therapists, just as hairdressers are therapists who also cut your hair. Even if his advisers' returns had been dismal, he would be grateful, because without them he would have spent the money. But he does not want them in his house: get home early, tidy up, buy biscuits, make small talk. So Zoom and YouTube may be the most important technologies for financial advisers in 50 years.

“Hairdressers are therapists who also cut your hair.”

The point: Services that depend on human contact gain hugely from removing the hosting burden rather than the human.

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Find where your competitors are measurebating

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Rory's practical advice, especially for owner-run businesses that need not justify every decision: ask where your competitors are measurebating, applying rationality where it does not belong, and go and experiment with being irrational there. You will not always succeed, but when you do you succeed really big, because the overreach of numerical measures and mathematical models into areas where they don't belong is one of the greatest sources of waste and inefficiency in modern society.

“You won't always succeed but when you do succeed you succeed really big.”

The point: Competitors' misplaced rationality is an opportunity for asymmetric, irrational experiments.

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Fired for succeeding expensively

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Rory recalls a US story: a man took over a cancer charity and spent a fortune on marketing, raising an absolute fortune, but only 70 percent reached charitable causes, 30 percent going on marketing. He was replaced by someone far more frugal who got 90-plus percent to causes but raised about a tenth as much. Would you rather have 70 percent of a billion or 90 percent of 100 million? Rory's summary of the man's fate is his own line.

“He got fired effectively for being successful in an expensive way rather than failing in an efficient way.”

The point: Overhead ratios can punish the strategy that does the most total good.

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Firing a profitable but awful client

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One of the shrewdest cultural decisions Rory has seen, from someone he will not name, was firing a client who was quite profitable but an absolute pain. It made no economic sense to the finance people. But it was an incredibly potent gesture to the staff: some things matter more to us than short-term financial expediency. Life, he agrees, is too short to work with people who do not respect the value you add.

“Some things matter more to us than short-term financial expediency.”

The point: Visibly sacrificing revenue for principle is a costly signal that builds culture and loyalty.

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Food delivery is Highlander, there can be only one

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Eating out was rare in Rory's 1960s and 70s childhood unless you were rich or in a big city. At some point the US crossed a singularity where it spent more on food cooked outside the home than inside. Food delivery, he thinks, is like Highlander: there can be only one. Without network effects it does not work, so it is a natural monopoly and a fight to the death, with the best-capitalised last man standing. Just Eat may have an edge because it is not responsible for delivery.

“Ultimately that's a bit like Highlander: there can only be one.”

The point: Network-effect markets tend towards a single winner.

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Food halls as evolution and brandogenesis

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Food halls like Arcade at Tottenham Court Road and Battersea Power Station, or Boxpark, are evolutionary systems: individual vendors are like genes or units of selection, and you end up with an interesting complementary mix. Everyone eats what they like, the coffee comes from a specialist coffee place and the cocktail from a specialist cocktail bar, so you get gains from specialisation and scale at once. They are also good for "brandogenesis": a cheap gateway for trying out food concepts and creating new brands, alongside dark kitchens and food trucks.

“You can think of the individual retailers as like genes; they're units of selection.”

The point: Low-cost, competitive clusters let new concepts be tested and selected like organisms.

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Free markets as a vast psychology experiment

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The standard view of capitalism is that competition efficiently delivers things people already know they want at prices they already accept. Rory, echoing Jonathan Haidt, prefers to see free markets as a massive, extraordinarily well-funded psychological and social experiment to discover what people really want, and in what circumstances. Drayton Bird told him early on that you do not do marketing to make money first and foremost, you do it to learn. Business is partly exploitation of what we know, but largely discovery of what we do not yet know.

“You don't do marketing to make money first and foremost, you do it to learn.”

The point: Treating business as experimental inquiry into what people value reveals opportunities efficiency thinking misses.

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Frequent flyers would secretly love an excuse

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Rory asked a group of about 12 very frequent-flying businessmen how they would react if they could tell their employer they were not flying for six months as part of a carbon pledge, with several colleagues doing the same so the employer had to accept it. All but one said that secretly they would be delighted. They were sick of flying and felt pressured into it, but lacked a credible excuse to stop.

“Secretly, I'd be delighted. I get sick of flying.”

The point: Many people want permission rather than persuasion; a socially credible excuse can unlock a change they already desire.

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From DFV to VFD

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Design's DFV order asks first whether something is desirable, then feasible, and only last whether it's viable financially. Business now leaps to numbers first, and numbers have a smaller solution space than words, thoughts and dreams. Advertising used to start with creative and bring in media at the end; now the most numerical, expensive component, media, comes first. We've moved to VFD: viable, feasible, then hope it's desirable enough to foist on customers. Jeff Bezos insisted every action benefit the customer. Rory adds trust first: TDFV.

“Numbers have a smaller solution space than words, thoughts and dreams do.”

The point: Put desirability and trust before viability, or the search for solutions is cramped from the start.

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From house builder to slum landlord

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Rory explains enshittification in three stages. First a platform courts consumers to acquire them; once network effects kick in, it turns to whoever pays it, such as eBay's sellers; finally it neglects both and serves only itself. His analogy: you start by building houses that attract people, then bring in Waitrose and Marks and Spencer to attract more, then rip off both residents and retailers, moving from house builder to property developer to slum landlord. Network effects shield platforms from the competition that keeps firms like Unilever or Coca-Cola focused on customers.

“You move from house builder to property developer to slum landlord.”

The point: Network effects remove competitive pressure, letting platforms exploit both sides once they dominate.

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General rules free senior people from understanding context

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Business, like the social sciences, has only one mode of thought, Rory says: pretend it is science, pretend everyone is rational, pretend shareholder value is a sensible way to orient a company. It is physics fetishism, seeking context-free certainty on a spreadsheet. Generalising rules are disproportionately appealing to senior people, because they don't know the specifics and the rule frees them from the obligation to understand context. The danger is a whole management caste who all think the same way.

“The generalising rule is disproportionately appealing to senior people because it frees them from the obligation to understand context.”

The point: Seniority breeds a taste for universal rules, producing monocultures of thinking that ignore context.

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German scientific forestry and the Norway spruce

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In Seeing Like a State, James C. Scott describes how 18th and 19th-century German foresters, wanting forests to look neat and efficient from the top, planted the fastest-growing timber, Norway spruce, at equal intervals everywhere. For a few years it worked brilliantly. Then came Waldsterben, forest death: a monoculture is a fantasy for parasites, the undergrowth and ecosystems vanished, and the soil degraded. Local foresters had protested that their patches were rocky or unsuitable, but were ignored, because it had to make sense from the top. Rory calls it seeing like a corporation.

“You could call it seeing like a corporation, or seeing like a holding company.”

The point: Efficiency imposed from above works in the short term while hidden costs build up out of sight.

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Give away your secrets, competitors won't copy them

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You would assume that if you give your secrets away, people will copy you. Oddly they do not, often because they are culturally incapable of it. Point out that physical direct mail works brilliantly for your business and you would expect rivals to do more of it. Instead they find an old-fashioned medium too difficult to justify or too unfashionable. So even if you give away the evidence of how you do what you do, you are copied far less than you would expect.

“Even if you just give away the evidence of how you do what you do, you're copied much less than you'd expect.”

The point: Cultural and status barriers protect good ideas better than secrecy does.

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Goldratt's father's chicken cages

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Rory tells, with a caveat that he may have details wrong, the story of Eli Goldratt, author of The Goal, and his father's business making chicken cages. Goldratt spotted an artificial production constraint; replacing one process tripled output. Then they hit a completely separate problem: not enough people kept chickens to buy all the cages. The bottleneck moved from production to marketing, perhaps even to definition: maybe sell them to people with hamsters.

“The bottleneck went from being a production bottleneck to a marketing and possibly a definitional bottleneck.”

The point: A business's constraint moves as it grows, so growth should be staged around whichever bottleneck is current.

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Google and Meta are the digital Duke of Westminster

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Rory would tell a start-up to do two contradictory things: use Meta and Google for their reach, but avoid a death spiral of finding ever more efficient ways to give them money. As a Georgist, he divides capitalism into generative and extractive activity. Much of Meta and Alphabet is extractive, taking just enough profit that businesses survive but never get rich. Some Amazon 'advertising' is paying not to have Amazon Basics placed above you. They are the digital Duke of Westminster, taking most of the gains from those working the digital land.

“They're a big great extractive landowner who takes the greater part of the gains to the labour of the people working the digital land.”

The point: Build routes to customers that bypass platforms that extract rent from your growth.

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Half of good programmers won't live in London

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A friend of Rory's worked early on for Psygnosis, the Lemmings developer, based near Liverpool. Asked to open a London office, he queried why, given their very low northern property costs. The boss replied that the business depended on really good programmers, and he knew one thing about them: half of them won't live in London, and half of them won't live anywhere else. Businesses increasingly depend on two or three remarkable people, who now have a bargaining counter that isn't money.

“Half of them won't live in London and half of them won't live anywhere else.”

The point: Talent is not infinitely mobile, so offering location choice widens the pool of exceptional people.

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Half the job titles did not exist when he joined

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Rory dislikes the idea of a career because it encourages too much forward planning. Half the job titles in the Ogilvy building did not exist when he joined the industry, and a large share of Londoners have job descriptions that literally did not exist in 1995. Planning a career as though you could predict it is a pretence, so a degree of randomness early on pays off by giving versatility and breadth.

“The idea of having a career and planning what you want to do as though you can is really a little bit of a pretence.”

The point: In a fast-changing world, deliberate breadth and randomness beat a rigid career plan.

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Have a second idea, Mark

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Facebook bothers Rory because the advertising industry has given literally a trillion to a company that hasn't had a second idea. With Mark Zuckerberg's money, Rory says, he would by now have launched a decent craft beer brand or a chain of cafés, just something. Whatever you say about Elon Musk, he has a proven record of innovating more than once.

“Have a second idea, Mark.”

The point: Vast resources without fresh ideas are a waste; repeated innovation is rarer than one big hit.

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He lost faith in Apple when it cancelled the car

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Rory lost faith in Apple when it cancelled its car. He thought it had the brand power to create a really cool, efficient form of microtransport for cities like London and New York. People will buy a weird product from Apple or Ford far more readily than from Alfa Romeo, because if they're doing it, it must be okay. One gift of a strong brand is the power to create new categories. He'd keep his 600-horsepower electric car but wants a Microlino for London. The finance people killed it; now Apple just tweaks shapes and cameras.

“One of the gifts of having a strong brand is your power to really disrupt and create new categories.”

The point: Strong brands lower the perceived risk of novelty, so wasting that on incrementalism is a missed opportunity.

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Henry Ford's man with his feet on the desk

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Consultants told Henry Ford his shop seemed well run, but asked why he paid a man at the end of the corridor a large salary when he sat around all day with his feet on the desk. Ford replied that two years earlier that man had an idea that saved him five million dollars, and at the time his feet were exactly where they are now. Rory sees this as an appreciation of uneven value creation. We pretend business is Newtonian physics, proportional and with fixed laws, but the laws of psychology you can rewrite yourself.

“Two years ago that man had an idea that saved me five million dollars, and at the time his feet were exactly where they are now.”

The point: Creative value arrives unevenly, so judging people by visible effort misses where value really comes from.

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Herbert Simon, profit is a constraint, not the objective

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Since around the 1990s the dominant view has been that business exists for shareholder value, an incoherent idea that never asks which shareholder or over what horizon. It aligns a small 'managerial Ponzi scheme' at the top with shareholders, while nobody normal gets up wanting to enrich shareholders. Rory prefers Nobel laureate Herbert Simon: profit is a necessary constraint, not the objective. A business's purpose is to discover new sources of value for customers and staff, such as flexible work. That chimes with Drucker: only marketing and innovation create value.

“Profit was not an objective of a business. It was a necessary constraint.”

The point: Treat profit as a condition of survival and value discovery as the purpose.

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His grandmother saw more change than his whole generation

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Asked what has changed in four years, Rory says, strangely, not that much. Leaving aside the internet and maybe low-cost air travel, nothing really significant has happened in his generation. His grandmother, born around 1895, had no electric light for the first 15 years of her life, and laundry would have occupied a whole day. What she saw between 1895 and roughly 1980 was inordinately more life-changing technology than anything we have seen since.

“Leaving aside the internet and maybe low-cost air travel, nothing really significant has happened.”

The point: We overrate recent innovation; the truly life-changing technologies came earlier.

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How do you have a nap in an open-plan office?

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A close relative of Rory's, who worked from the 1950s to the 1980s as Permanent Secretary of the Ministry of Defence, asked whether his office was open plan, and then: 'how do you have a nap in the afternoon?' Open plan, sold as teamwork but really about cost, is neither solitude nor sociability and is completely monotone: you can't shut or open a door. Following Taleb's Antifragile, the right answer is often variance, not a constant. David Ogilvy wrote his ads and books at home because of office distractions.

“The right answer to a lot of questions isn't a constant, it's a degree of variance.”

The point: Good work environments offer control and variety, which open-plan offices remove.

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How to stop playing someone else's game

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Rory recommends a book on the pros and cons of quantification by C. Thi Nguyen, a Vietnamese-American philosopher at the University of Utah, subtitled roughly 'how to stop playing someone else's game'. Businesses easily become obsessed with a metric inherited from management consultants who sold the same metric to every client for years. Without realising it, they are playing someone else's game. How you score things is unbelievably important.

“Effectively, what you're doing there without realising it is you're playing someone else's game.”

The point: Borrowed metrics silently impose other people's goals, so choose what you measure deliberately.

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I don't like telling people what to do, I like telling them where to look

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Asked whether he sees himself as a leader, Rory says he would like to have influence but doesn't really like telling people what to do; he likes telling people where to look. He sees it as close to teaching: a good teacher finds ingenious representations that make things suddenly comprehensible, salient or memorable, and the power to make something interesting can shape a life.

“I don't really like telling people what to do. I like telling people where to look.”

The point: Influence through redirecting attention can be more powerful than issuing instructions.

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If business people are so rational, why do they play so much golf?

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Behavioural science is mostly applied to consumers, but Rory argues B2B is even more emotional than B2C. The myth of rationality says that the moment anybody sits behind a desk or puts on a suit they lose their biases, park their emotions in the car park and decide like an economic agent. You do not become rational the moment you put on a suit. If business people are really that rational, why do they play so much golf?

“If business people are really that rational, why do they play so much golf?”

The point: Business buyers are as emotional as consumers, so psychological levers apply in B2B too.

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If business were Schumpeterian, WH Smith would own Amazon

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Rory prefers Schumpeter and the Austrians' view of capitalism as endless discovery in disequilibrium, with firms experimenting to find what people want, over neoclassical equilibrium. If more businesses thought that way, WH Smith would own Amazon. The Austrians also recognise marketing as innovation: if you get the market to look at an existing thing in a new way, you have created as much value as if you had made a new thing.

“If you create a new appreciation of an existing thing, that is as much value creation.”

The point: Underinvestment in experiment and in reframing existing products leaves incumbents open to disruption.

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If it broke, would you buy another?

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Rory's test for a product: look at the things you own and ask, if this broke would I buy another one? Air fryer, yes. Yoghurt maker, no. Repeat purchase, he argues, is the single best guide to whether a product is good and the best indicator of an enduring business.

“If it broke would I buy another one? Air fryer yes, yoghurt maker no.”

The point: Repeat purchase is the most honest measure of a product's real value.

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If ten per cent will pay, you're in business

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Academia hunts for rules that apply to everyone, but business does not need them. When you invent the Dyson vacuum cleaner, it need not appeal to everybody; the rule that people will pay 500 pounds for a vacuum cleaner holds for very few, but if it is true of just 10 per cent, you are in business. Comedians have spotted the same thing: Rory recalls Stewart Lee saying that in the UK, if 5,000 people will each give you ten pounds a year, you can survive, and TV appearances are a bonus.

“If that's true of just 10 per cent of people, you're in business.”

The point: Commercial success needs a devoted minority, not a universal rule, so niche truths are valuable.

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If you find it difficult to smile, do not open a shop

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Rory quotes a Chinese proverb: if you find it difficult to smile, do not open a shop. In all service industries, the social transaction matters as much as the financial one. Restaurants understand this because, as a fast-feedback business, getting it wrong means going out of business, whereas conventional businesses obsess over what is easy to measure, time, cost or distance, which doesn't translate into customer enjoyment.

“If you find it difficult to smile, do not open a shop.”

The point: Service businesses sell an emotional and social experience, not just a transaction.

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In e-commerce, answer the phone

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Asked for advice on launching an apparel brand, Rory says marketers focus too much on adding positives and too little on removing negatives. E-commerce is miraculously slick up to the point of purchase, but deviate from the funnel, a delivery problem or a cancellation, and you enter a world of pain, because the customer is handed to people measured on cost reduction who want no phone calls. So answer the phone and do not hide your number. Let customers choose their courier: if their chosen courier fails they blame it, not you. And offer a Prime-style annual delivery pass so loyal customers do not pay more.

“Marketers spend too much time focusing on the addition of positives when a lot of time needs to be spent on the removal of negatives.”

The point: Post-purchase service failures do more damage than pre-purchase polish can repair.

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Inside Goldman Sachs nobody asks who's paying

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Incentive schemes create perverse effects, like the cobra farms of colonial India, and signal that you're only as good as your last quarter. A friend who worked at Goldman Sachs was impressed that internally it was highly socialistic: a request from Goldman in Bogotá would arrive in London and nobody asked who was paying, they just did the work. Very high reciprocation. Admittedly it helps that the head of Goldman in Bogotá might be president of Colombia in four years.

“Nobody said, okay, who's paying for this?”

The point: Internal cultures of unpriced reciprocity can outperform transactional cross-charging.

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Institutions are already a form of artificial intelligence

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Asked about a badly received AI-made advert, Rory notes you can make bad ads with humans too, and every such decision needs an "in case of fire, break glass" mechanism. Citing Dan Davies's The Unaccountability Machine, he argues institutional decision systems are themselves a form of artificial intelligence: once a problem is too big for one brain, you design rules for how many brains interact. A speed camera is crude AI; so is a decision process. Both silicon and human systems can lead to insanity: the richest, most talented country in the world must choose between two heads of state both markedly worse than George III.

“You have to choose between two heads of state both of whom are markedly worse than George III.”

The point: The risk is badly designed decision systems, whether silicon or human, without a human override.

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Inviting partners to the Christmas party

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Finance functions treat employment as purely transactional, which motivates poorly: people game the system and do nothing unpaid. In the 1970s and 1980s, company Christmas parties included staff's partners. That never happens now. It made no sense to finance to give partners free drinks, but the loyalty created when colleagues' husbands and wives were also friends was monumental, turning a business into a community. Rory also thinks scrapping company cars was a mistake: they symbolised 'we want you to have the best tools'. Management is a series of symbolic acts, and finance does not understand symbolism.

“Management is a series of symbolic acts.”

The point: Unquantifiable symbolic gestures build loyalty and community that transactional cost-cutting destroys.

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Italian food beats French because it scales

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Rory offers rankings designed to offend 1.9 billion people: Indian over Chinese, Italian over French, Korean over Japanese, Malaysian over Thai. Italian food wins because it is scalable: chop some tomatoes and put them on top of something. French food is fine for a banquet but never cracked snack food; there is not really a French word for snack, just the croque monsieur and a limited repertoire. The most expensive Indian restaurant in London is still cheaper than the most expensive French one, and better.

“There isn't really a French word for snack.”

The point: Cuisines and businesses that scale down to casual, everyday formats spread further.

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Jeff Bezos, the world's richest behavioural scientist

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Rory describes Jeff Bezos as the world's richest behavioural scientist. Bezos says there will never be a time when people do not want fast delivery or low prices. Rory takes issue with the second, citing farmers' markets and luxury goods, but agrees people like to feel they have a good deal. Bezos also says bet on far-out things, because nobody else has the patience: if you only bet on rapid-return improvements, you are doing what your competitors do.

“I always describe Jeff as the world's richest behavioural scientist.”

The point: Build on enduring human preferences and make patient, long-horizon bets competitors will not.

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Kim Tickell and the mad pub

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Rory thinks the scope for a 'mad pub' is underexplored. Kim Tickell, a flamboyant opera-loving landlord, ran the extraordinary Tickell Arms outside Cambridge, in the tradition of John Fothergill's An Innkeeper's Diary. When someone played with candle wax, he shouted across the pub: 'Don't play with the candles, this isn't a nunnery!' A friend of Rory's saw him read out car registration numbers and make the owners go out and repark so all the cars faced the same way. Yet it was an extraordinary pub.

“Don't play with the candles. This isn't a nunnery.”

The point: A strong, eccentric personality can be the distinctive heart of a venue, not a liability.

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Leaders who served before the mast

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Listing British businesses he admires, Octopus Energy, AO, Dyson, JLR, JCB and Ocado, Rory notes they are family-owned or founder-led. He adds that it probably matters whether the person in charge has spent time before the mast: it is not irrelevant that Willie Walsh used to be a pilot, or that the boss of Marks & Spencer started his working life pushing trolleys round a car park.

“There's probably also some element that the person in charge has spent some time before the mast.”

The point: Leaders with front-line experience understand the customer and operation in ways spreadsheets cannot teach.

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Leadership and showmanship are scarcer than administrative ability

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Defending Boris Johnson's appeal to his sceptical wife, Rory argued that leadership and showbusiness qualities are far scarcer in politics than administrative ability, which can be outsourced. Many entrepreneurs, perhaps including Richard Branson, are dyslexic; nobody knows if Branson can read a spreadsheet, but he can stand up and say what his airline is about and how it differs, which few PLC heads could. Tim Cook is surely a better finance director than Jobs, but organisations increasingly value the people who count the money over the people who generate the value.

“The people who measure and count the money are becoming in all organisations more valued than the people who generate the value.”

The point: Organisations overvalue measurable managerial skills and undervalue the rare ability to create distinctiveness and lead.

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LED lighting, a world-changing technology nobody talks about

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Rory thinks there's too little discussion of technologies that never have a hype cycle because they play out gradually and irreversibly over a decade: flexible working, video conferencing, electrification. UK dishwasher penetration still hasn't reached 50 per cent. In 2010 about 1 per cent of lights sold were LEDs; by 2030 it will be basically 100 per cent. The blue LED, which made white LED light possible, is equivalent in carbon terms to removing perhaps a quarter of the world's road traffic. Nobody talks about it, because attention has become winner-takes-all.

“Very important technologies that never have a hype cycle.”

The point: Attention is skewed towards hyped technologies, so slow, irreversible shifts with huge effects go unnoticed.

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Leon's scaling function and Devon's DIY potholes

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John Vincent, founder of Leon, told Rory that innovation often happens locally, from an observation that something weird worked. What no organisation but Leon has is a scaling function: when we get lucky in one place, we make it happen everywhere. Economist Nicholas Gruen makes the same point about government, which occasionally gets things right, like online car tax renewal or emergency passports, but never scales them. Somewhere a council may have cracked potholes: apparently Devon gave a pothole machine to a man who repairs them with friends at weekends for fun.

“When we get lucky in one place, we make sure that happens everywhere else.”

The point: Organisations should systematically spread local lucky successes instead of leaving them isolated.

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Lifestyle arbitrage after 2020

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Before 2020 the only thing you negotiated with an employer was pay: a five-day week in the office was fixed. Now people can practise lifestyle arbitrage: work for Goldman Sachs from Lisbon on good broadband, earning in pounds and spending in euros, or live in Newcastle with a house ten times the size. Rory's daughter loved Newcastle and said that if she could have persuaded six university friends to stay, they all would have, a coordination problem that pushed them to expensive London.

“Pre-2020 the only real point of negotiation with your employer was how much they paid you.”

The point: Remote work turns place and hours into negotiable variables, opening arbitrage between earning and living.

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Look for the sweet spot of three kinds of solution

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Rory argues we have given too much priority to technical, Newtonian engineering solutions and not nearly enough to psychological ones, partly because psychology lacked the 'latticework' of a unified model that engineers and economists enjoy. He does not ask for psychology to dominate. He asks that problems be examined from technical, economic and psychological angles equally, and that solutions be sought in the sweet spot where all three overlap, as they nearly always do in great businesses.

“When you solve problems, you should look at all three of these equally.”

The point: Good solutions combine technical, economic and psychological thinking rather than defaulting to the engineering one.

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Loyalty schemes' hidden value, booking direct

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Rory says a hotel brand's loyalty programme such as Marriott's or IHG's pays off not only in how often people stay, but in a way that is hard to measure: their propensity to book direct rather than through an intermediary. Given the commission online travel agents take, that value is probably not adequately counted. Marketing is held responsible for every unit of cost but can claim only part of the value it creates, and only for a short time.

“Marketing is held responsible for every unit of cost, but it can only lay claim to a certain percentage of the value it creates.”

The point: Loyalty programmes create indirect value, such as avoided commission, that their accounting ignores.

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Make the Amazon button green and your own one grey

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Manufacturers make more money selling direct than through Amazon or Argos, so their websites make the buy-direct button green and attractive and the retailer link grey and shabby. Rory proposes testing the opposite: make the Amazon and John Lewis buttons green and your own grey. In some cases you make more money overall, because people instinctively want to buy through a third-party retailer. A higher share goes to the intermediary, but far more people click through, so even your own direct sales rise.

“Proportionately you lose out, but overall you gain.”

The point: Designing with people's instincts rather than against them can beat the apparently logical nudge.

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Many people giving tiny amounts

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Rory is annoyed that agencies always solve problems at the brand level when some must be solved at the category level. Fundraising used to mean getting a few people to give a lot; technology makes it possible to get many people to give a tiny amount. When you order at a McDonald's screen you can add 20p for charity; multiply that across a billion burgers and few need to do it. A coalition of 100 charities could ask a bank to let people add a pound at a cash machine or a penny to each contactless payment.

“What technology makes possible is we'll get a lot of people to give us a tiny amount of money.”

The point: Low-friction micro-giving at massive scale can rival traditional large-gift fundraising.

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Marketers who don't know the cost of cleaning a room

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Rory doesn't think you should be a marketer without respect for a business's financials. Discussing yield management with a hotel client, say selling empty rooms late at night, he asked the cost of turning over a room versus leaving it empty. The client didn't know. You can't have imaginative ideas about who could occupy an unoccupied room and at what price without knowing that. Likewise, nobody should criticise Jaguar's strategy without the data on where the car industry is going.

“You can't actually do your job if you don't know that stuff.”

The point: Creative commercial ideas depend on knowing the underlying unit economics.

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Markets are only stagnant because people behave as if they were

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Today's worst case is a bureaucratic large business that doesn't believe in growth because it's convinced its market is stagnant. But markets are only stagnant because people behave as if they were. In 1980s advertising everyone believed they'd take over the world, a false optimism that nonetheless made people try. Now it's batten down the hatches and optimise established processes, which is also really boring to work in. Some Scandinavians told him they could have run their mobile phone company purely on price, but realised working for such companies is awful, so they did something else.

“Markets are only stagnant because people behave as if they were.”

The point: Pessimism about growth is self-fulfilling, because it stops companies trying the things that would create growth.

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Mars, Caesar dog food and the value of unpredictability

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Family firms can drive conventional competitors mad. A former Mars employee told Rory competitors hated facing Mars because nobody knew what it would do. It kept investing in Caesar premium dog food for ten years while it went nowhere, until small-dog culture made it hugely valuable; a PLC would predictably have exited within 18 months. There is value in being a bit irrational because it stops you being predictable, as any military person knows: D-Day happened in Normandy because everyone expected Calais, the efficient, shorter crossing.

“There is a certain value in basically being a bit irrational because it stops you being predictable.”

The point: Predictable rationality hands rivals an advantage; patience and unpredictability can win markets.

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Martin Sorrell and Grey's company plane

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An efficiency mentality gives big gains at first, as WPP found with 1980s ad agencies. J. Walter Thompson reportedly had a directors' dining room costing 2 million dollars a year. When Martin Sorrell bought Grey and was nearly stuck in a snowstorm, Grey made the slight mistake of offering him one of the company planes. Sorrell spotted fat to be trimmed. The problem, Rory says, is that eventually you run out of fat and are left with incrementalism.

“I think Martin spotted that there was some fat to be trimmed.”

The point: Cost-cutting yields large early gains but eventually decays into incrementalism.

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Maxwell's journals, paid to publish and paid to read

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When Les Binet describes working for a firm screwed by Robert Maxwell, Rory explains Maxwell's original fortune: buying up scientific journals after the war. It was a complete moat, because academics paid to be published in them and university libraries had to pay to buy them, or they were not serious universities. Warren Buffett would have loved such a two-faced business. It was particularly odious because taxpayers had funded most of the research, yet unlike NASA's moon footage, it was not made publicly available.

“It was a complete moat in that the people paid to be in them and the people paid to buy them.”

The point: A business that charges both sides of a captive market enjoys extraordinary, if unjust, pricing power.

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Maybe they were successful because they were quotable

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Successful founders and CEOs often lead through cultural influence rather than direct instruction, since most work in a knowledge organisation is discretionary. Jason Korman of the cultural-design firm Gaping Void pointed out that we assume Henry Ford, Edison, Steve Jobs and Elon Musk are much quoted because they succeeded. Perhaps it is the reverse: because they were very quotable, they became successful. David Ogilvy's greatest power was as a communicator to his own staff: changing the weather rather than steering the ship.

“Maybe because they were very, very quotable, they became successful business people.”

The point: Memorable communication shapes culture, and culture drives the discretionary behaviour that decides success.

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McNamara's body count in Vietnam

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Watching the BBC's Vietnam War documentary, Rory noticed how very intelligent people made dumb decisions by falling in love with a metric. Reporting upwards requires information that can be aggregated, so it must be numerical, and hearts and minds have no SI unit. McNamara and others fixated on the body count. What they missed: kill one Viet Cong fighter and there is one fewer to fight, but kill an innocent civilian, which looked identical on the body count, and you create ten new ones.

“There are important things and there are things that are easy to measure, but the correlation between the two may not be all that great.”

The point: The higher up an organisation, the more it relies on aggregate metrics that can be dangerously wrong.

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Mergers destroy value; break-ups create it

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Asked for examples of successful 'de-evolution', Rory said that, interestingly, mergers generally destroy value and break-ups create it. In some extreme cases Philips has probably created more value in the companies it got rid of than in the business it kept. There's a huge fashion for mergers and a general bias against breaking companies up, yet in overall value creation, break-ups are by far the more successful approach.

“Generally speaking, mergers destroy value and actually break-ups create value.”

The point: The bias towards getting bigger runs against the evidence that focus and separation create more value.

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Mobile phones shrunk until you couldn't find them

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Engineers are prone to pursuing a metric to the point of absurdity. When mobile phones were the size of a brick, making them fit a pocket was good. But the industry pursued miniaturisation so far that phones disappeared into the depths of your pocket, and unless you were a Japanese schoolgirl it was impossible to dial on the tiny keypad.

The point: A metric that was once valuable becomes harmful when pursued beyond the point where people benefit.

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More cinema food pre-booked by reordering the website

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Ogilvy's behavioural science practice starts by asking: what is the smallest thing we could change that would make a really big difference? Sometimes it has nothing to do with brand or communications. For one client, they massively increased the propensity of people to pre-book food at cinemas just by a UX change, altering the order of choices on the website, achieving a bigger behaviour change than advertising could.

“What's the smallest thing we could change that would make a really big difference?”

The point: Changing choice order can shift behaviour more cheaply than communication.

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Most airlines would have retired Sullenberger

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Rory notes that most airlines in the world would have forced Sullenberger to retire about five years before the Hudson landing, which suggests employers undervalue the instinctive expertise that comes from doing something for a long time. He adds that Sully is a Texas Republican, and that however left-wing you are, when both engines go you secretly hope your pilot is a Texas Republican.

“When both engines in your plane go, I think you secretly hope your pilots are Texas Republicans.”

The point: Organisations undervalue tacit, experience-based skill because it does not show up in measurable criteria.

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Never ask your barber if you need a haircut

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Rory quotes the line, often attributed to Upton Sinclair, that it is difficult to get someone to disbelieve something when their salary depends on believing it. Management consultants have a huge incentive to sell digital transformation, so business assumes any money spent on tech is well spent, without asking whether a better call centre would beat it. Buffett and Munger put it as: never ask your barber if you need a haircut. Human rights lawyers, he adds, risk being in the amplification-of-grievance business rather than the dispensation of justice.

“Never ask your barber if you need a haircut.”

The point: Advisers' incentives shape their advice, so the opportunity cost of what they sell goes unexamined.

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New sales channels are mostly incremental

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Asked which marketing principles are misunderstood, Rory names something marketers get right that others get wrong: fear of cannibalisation. Purchase is very context-sensitive, so when you add a new sales channel, a large part of its sales are incremental rather than stolen from your existing channels.

“When you add a new sales channel, a large part of the sales from that new channel are incremental.”

The point: Because buying is contextual, more channels reach more occasions rather than splitting the same demand.

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Nike's direct-to-consumer mistake

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Nike lost massive value trying to cut out wholesalers and go direct to consumer. DTC captures more margin, but business isn't about defining your customers as those who are cheapest to serve, because then you end up with fewer customers. Many people will never order shoes directly, and even individual customers have moments when they'd buy in a shop something they'd never buy online. A marketer engages anybody in any channel they prefer, and might even use loss-making channels if they acquire customers who later become profitable.

“Let's pretend we can make all our transactions as efficient as our most efficient transaction.”

The point: Optimising for the cheapest channel shrinks the customer base; reach across channels creates long-term value.

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No curtains on the Eurostar

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There is a fundamental business bias towards making everything 20 per cent cheaper than consumers want and 40 per cent worse, because those decisions are easiest to get through. That is why the Eurostar has no curtains, though there are hooks for them: you cannot see your laptop in the sun unless you pull down a shared blind. Someone calculated it saved 200,000 a year in dry-cleaning. The counter-argument, that curtains make it nicer and more people come back, is probably true but much harder to prove.

“Making everything 20% cheaper than consumers want it to be and 40% shittier.”

The point: Savings are easy to measure and value is hard, so procurement logic quietly degrades products.

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No evidence anyone would buy a $900 vacuum

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Before Dyson there was no evidence anyone would spend $900 on a vacuum cleaner. Market analysis would put Miele at the top and the sweet spot around $220, and argue that anyone who could afford $900 has a cleaner and does not vacuum their own home. 'I don't know, but he's a billionaire and I'm not,' says Rory, adding that Dyson then sold a $400 hairdryer. There was zero advance evidence for either.

“I don't know, but he's a billionaire and I'm not.”

The point: Market research based on existing behaviour cannot validate genuinely new products.

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No hotel will lend you a monitor

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Rory spends more waking time in hotels working than watching TV, yet no hotel has ever offered him a monitor, even for money. It would earn revenue and, for him, be a deal-breaker between hotels, as wifi became 20 years ago. Never assume nobody is doing something because they tried and it failed; they probably have not even tried, because much of business is self-referential. And large businesses demand proof, but there is never proof of anything innovative because it does not exist yet.

“There's never any proof of anything innovative because it doesn't exist yet.”

The point: Unexploited opportunities often exist simply because no one has tried, and demands for proof block them.

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No one knows anything until they try

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In Rory's hometown, one restaurant site had been a graveyard for 20 years. The local kebab man bought it to open an upmarket Turkish restaurant; Rory silently begged him not to. It's humming. A gluten-free-only coffee shop opened on a dangerous bend on an obscure road outside Sevenoaks; he thought it would be a catastrophe. Also humming. If we're honest, nobody completely knows anything; the only way to find out is to try. And the human brain has no sense of proportion: something trivial can make or break a place.

“No one completely knows anything. The only way you can find out is by trying it.”

The point: Experience and logic predict new ventures poorly, so experimentation beats expert forecasting.

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Nobody can make a decision without winning an argument first

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Rory asks a room of senior clients whether anyone can make a decision on their own at work. In the old days you could; now nothing happens without reference to HR or the commissariat in finance. Requiring every action to win an argument in advance gives finance a veto over everything, and it shrinks the solution space by perhaps 95 per cent, because you can no longer do things that do not quite make sense in advance. And without that, you cannot really innovate.

“It limits the solution space by maybe 95 per cent.”

The point: Requiring prior justification excludes the slightly illogical ideas where innovation lives.

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Nothing in business makes sense except in the light of behavioural science

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Rory borrows Dobzhansky's law from evolutionary science, that nothing in nature makes sense except in the light of evolution, and extends it: nothing much in business makes sense except in the light of behavioural science. Not everything is behavioural science, but behavioural science is in everything. Any explanation of something involving human decisions that leaves out the behavioural element probably is not cutting it, and narrows your solution set.

“Not everything is behavioural science, but behavioural science is in everything.”

The point: Ignoring the behavioural dimension of any human problem limits both understanding and creativity.

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Octopus Energy overtook British Gas on customer service

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Rory worries AI will fall into the hands of procurement and finance, who will ask it to optimise for short-term profit, which favours cost-cutting until it becomes catastrophic. By contrast, Octopus Energy is now, he believes, bigger than British Gas. What does it focus on? Customer service: all its ads talk about it. And it advertises on radio, which is brilliant because radio is a totally under-exploited medium.

“What are they focused on? Customer service. All their ads talk about their customer service.”

The point: Investing in service and overlooked media can beat cost-cutting incumbents.

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Octopus's founder learns of new tariffs from the papers

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Consumer goods companies such as Nestlé and P&G survive longest on the FTSE and Fortune 500 because marketing keeps them rooted in the real world and forces them to change; to make your grandchildren rich, Rory would buy Nestlé or P&G rather than Google. The other exceptions are founder-led and family firms. Working with Octopus Energy and AO, the change in the weather is instantly detectable. Greg Jackson of Octopus says sometimes the only way he learns they have launched a new tariff is by reading about it in the papers.

“Sometimes the only way I learn that we've launched a new tariff is when I read about it in the papers.”

The point: Highly distributed decision-making lets founder-led firms innovate faster than centrally controlled ones.

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Ogilvy's dinner party hiring test

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Ogilvy, Rory claims, has produced more novelists than any Oxbridge college: Fay Weldon, Salman Rushdie and Don DeLillo were copywriters. Agencies in the 1950s also made weird experimental hires. A candidate would be seated at dinner between an apparently working-class man with charming manners and an apparent dowager duchess behaving like a complete animal, to see how they handled it: a test of emotional intelligence. His mother, who could spot an affair from 500 yards, would have passed; he would not.

The point: Unconventional tests can reveal qualities like social intelligence that CVs miss.

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One big company, one shot; fifteen entrepreneurs, fifteen shots

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Rory says he is ideological about not being ideological, keeping one foot outside the industry. Human psychology is too complicated for confident pronouncements; all you can do is ask better questions and run better experiments, which is why entrepreneurs matter. Big companies struggle with timing: a big firm gets one shot at an idea, while 15 entrepreneurs launch at 15 different times and one gets the timing right by sheer averages. Truly innovative products may also need a component of seeming nonsense, something counterintuitive or illogical that big firms filter out.

“While one big company has one shot at an idea, 15 entrepreneurs will launch at 15 different times.”

The point: Many independent attempts beat one planned attempt when timing and counterintuitive ideas matter.

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Only frequent guests wanted phone check-in

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When Starwood introduced going straight to your room and unlocking the door with your phone, nobody was interested except its platinum and top-tier members, who all signed up. They check in once a week and probably spend four days a year queuing behind a United flight crew. Someone who flies once a year does not mind 25 minutes in a check-in queue; someone who flies weekly is driven practically insane.

“If you fly once a year you're not that bothered about queuing. If you fly once a week, it drives you practically insane.”

The point: The needs of frequent customers differ radically from those of occasional ones.

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Only the CEO can settle marketing versus procurement

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Rory says the conventional, military structure of business concentrates the power to decide trade-offs between two functions, such as marketing and procurement, in one person: the CEO. Important trade-offs probably never reach the CEO out of sheer embarrassment, and people knowingly behave absurdly because they are bonused on a bad proxy metric that only the CEO could change. He wonders whether businesses need other people who can adjudicate such disagreements.

“There are probably really important trade-offs which people don't take to the CEO out of sheer embarrassment.”

The point: Hierarchies create a bottleneck at the top for cross-functional trade-offs, leaving many unresolved.

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Optimise for opportunity, not optimality

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An efficiency mindset uses short time horizons and snapshots. Jeremy Clarkson got bored of electric cars because they're like washing machines, true now, but electrification will spawn e-scooters, cargo bikes, micromobility and the Heathrow pod; the combustion engine limited how small things could be. Office attendance may be 5 per cent more efficient than remote work, but flexibility lets Ogilvy employ a Glasgow-based creative team in its Brussels office, and hire people who can't afford London, where the problem isn't tax, it's rent. Accept a 4 per cent dip for far greater possibilities.

“You have to optimise for opportunity, not just optimise for optimality.”

The point: Paths that look slightly worse today can open far larger future possibilities.

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Optimise for surprise

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Rory's closing philosophy: what makes us happy is what we did not expect. Politeness is discretionary effort; generosity is discretionary expenditure. Optimise everything for efficiency and you create no surprise. By definition surprise is not strictly necessary, so an efficiency-driven business never does it. The trouble with strictly necessary things is that everybody else does them and they are incredibly dull. How memorable something is depends not on how good it is in some absolute sense but on how good it is compared with expectations.

“Politeness is discretionary effort. Generosity is discretionary expenditure.”

The point: Pure efficiency eliminates the unexpected touches that make experiences memorable and distinctive.

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Optimise repeat purchase first

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Rory agrees with Mark Ritson that brand talk should not denigrate digital marketing. Indeed the bottom of the funnel must be fixed first: if conversion is poor, advertising just introduces more people to a disappointing experience. A purist would optimise repeat purchase first, then conversion, then work upwards. For electric cars the only long-term question is whether anyone who buys one goes back to petrol; if hardly anyone does, growth will be spectacular. All big data comes from the past, and as David Ogilvy said, you are advertising to a moving parade, not a standing army.

“You're not advertising to a standing army, you're advertising to a moving parade.”

The point: Retention reveals a product's real strength and should be fixed before spending to acquire more customers.

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Organisations with an overpowered left hemisphere

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Rory names Iain McGilchrist as perhaps the 'daddy' of behavioural science. The left hemisphere does not understand wholes: it reduces everything to components. The right is holistic, poetic and metaphorical, and does the imagining. Technology has boosted the left brain's confidence at the right's expense, and there is a collective version in organisations: reducing everything to parts to look scientific and quantifiable destroys the value created by the whole.

“It's the right part of the brain that does the 'what if', and the left part that does the 'what is'.”

The point: Reductionist, metric-driven organisations lose the holistic imagination that creates value.

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P&G spent half a million proving people don't lay out clothes

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Even Procter & Gamble, among the world's best marketers, suffers from demanding proof first. Someone there developed a spray that smooths clothes left on a chair overnight, a bit like ironing them. P&G's most senior person demanded she spend half a million dollars on research, because they refused to believe people didn't prepare what they would wear the night before. As Rory puts it: we don't all have a maid.

“We don't all have a maid.”

The point: Decision-makers' unrepresentative lives make them demand costly proof of ordinary behaviour.

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People with immense power and no money

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In institutions, the person with the power to solve a problem also has a very large budget, and once you have a large budget you look for expensive things to spend it on. Behavioural change is not proportionate to expense or force, but institutions are uncomfortable with that disproportionality. What is completely lacking, Rory says, is a class of people with immense power but no money at all.

“What is completely lacking is a class of people who have immense amounts of power, but no money at all.”

The point: Large budgets bias decision-makers towards expensive solutions and away from cheap, effective ones.

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Pilots are shamed for hiding, not erring

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Rory says he is not joking about shame as a tool. Airline safety principally works through it: if a pilot fails to report a near miss and is found out, more shame attaches to trying to bury it than to making the mistake in the first place. The industry has created a culture in which the shame is around hiding things.

“More shame occurs to you through trying to bury something than from actually making the mistake.”

The point: Directing social shame at concealment rather than error encourages honest reporting.

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Pilots must still land manually

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The airline industry knows the autopilot can deprive pilots of instinctive flying skills they may need in a hurry if it malfunctions. So it puts pilots through simulator training and requires a certain number of manual landings, so technology does not deskill them. Rory asks whether we are being deskilled in the quality of our thinking by technology that purports to do it for us, and whether automation that short-circuits creative processes destroys more value than it creates.

“Do we actually become deskilled in the quality of our thinking by technology that affects to do it for us?”

The point: Deliberately preserve human skills that automation would otherwise erode.

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Pitches so polished the client can't say it's rubbish

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In agency pitching everyone goes a bit further than everyone else, even at the tissue session, which should be rough. If you haven't overinvested in presentation, the client can speak honestly about the routes. But if you've produced it on vellum with monks doing illustrated letters, the client can't say 'your strategy sucks', because they know you've spent twenty thousand dollars on it. Rory thinks agencies imagine they are being clever, but are being stupid.

“If someone has produced the thing on vellum with monks doing illustrated letters, a client can't really say 'look, your strategy sucks'.”

The point: Overinvesting in early-stage work signals commitment but suppresses the honest feedback the stage exists for.

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Pitches won or lost by who was making the coffee

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Rory spoke to people at one of the world's largest accounting firms about pitching for huge audit accounts, such as a motor company worth a billion dollars over three or four years. They had no doubt they had lost and won business because one person in the room happened to be making a cup of coffee while somebody else started talking. The first person to speak after the presentations carried disproportionate weight because of our dislike of disagreement.

“They had lost and won business because one person in the room happened to be making a cup of coffee while somebody else started talking.”

The point: In group decisions the first opinion voiced anchors the rest, so meeting structure can decide billion-dollar outcomes arbitrarily.

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Press officers keep business out of the news

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Businesses now employ a very risk-averse person called the press officer, focused entirely on minimising downside; supreme success is keeping everyone out of the press. So when Newsnight or the Today programme wants a business voice, approvals and legal sign-off take three days and nobody appears. Business, the greater part of the British economy, is massively under-represented, while academics, free to pitch up any time, dominate the conversation. Rory says there are 20,000 people who could have done what he did, but they probably were not allowed to.

“There are 20,000 people who could have done what I did. The truth of the matter is they probably weren't allowed to.”

The point: Institutional risk aversion silences the people with the most practical knowledge.

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Procurement would have had the atomic bomb made in China

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Since Smith saw that innovation comes from doing, Rory wonders what he'd have made of offshoring. Outsource manufacturing and you hand away an enormous amount of tacit learning, furnishing a future competitor. Attempt the Manhattan Project today, he jokes, and somebody in procurement would demand the bomb be manufactured in China, so the Chinese would get it first. It isn't really the division of labour that drives breakthroughs but the division of attention: someone continually focused on one thing is far likelier to innovate.

“Somebody in procurement would demand you had the bomb manufactured in China.”

The point: Offshoring production to save cost also exports the learning-by-doing that generates future innovation.

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Psychology should be where you start, not a mopping-up exercise

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In a filmed conversation with the neuroscientist Michael Platt, Rory says business typically starts with the finance function, and psychology is brought in as a kind of mopping-up exercise. If you're in the business of value creation, that isn't where psychology should end up; it's where you should start. If you begin in a deeply rational place with a model, the model massively limits your solution space.

“If you're in the business of value creation, this isn't where you should end up. It's where you should start.”

The point: Starting from financial models narrows the options; starting from psychology widens where value can be found.

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Put baskets in the middle of the shop

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Rory has long ranted that retailers, especially Boots, should not put baskets only at the entrance. Many people, particularly men, go into Boots for one thing, say shaving foam, then wander round and think of other things. Having not picked up a basket, they are limited by what they can carry, and you see them cradling purchases like a baby. Nobody walks back to the entrance for a basket. Leave some, even little net ones, in the middle. Over lunch, Boots CEO Seb James said he had spent years promoting exactly that.

“No one's going to go back to the entrance of the store and pick up a basket.”

The point: Physical capacity at the moment of temptation limits spending, so provide it where impulses occur.

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Put the big stones in the jar first

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It is weird how little time people spend asking what they really want to do; the urgent always triumphs over the important. Rory cites the sermon story: you can get far more into a jar if you put the big stones in first and the sand second; put the sand in first and the big stones will not fit. Deal with the big stuff first and the little stuff takes care of itself. In a digital world of beeping phones, the little shiny things distract us even more.

“The urgent always triumphs over the really important.”

The point: Prioritise the few things that matter before trivial tasks fill the available space.

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Put the call centre on the boardroom floor

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Rory fears AI will be used to automate call centres. He would make them smaller but much better: a human is needed as the last port of call, with the power to override the rules when common sense demands it, say sending a free replacement part. The call centre is also the only place you learn the problems customers can't solve elsewhere. At Microsoft, one team put the call centre in the middle of developers; British Airways' should share a floor with the boardroom. Good service is streamlined for the decided and empathetic for the uncertain.

“The call centre of British Airways should be on the same floor as the boardroom.”

The point: Front-line human contact is both a trust engine and the best source of truth about what is going wrong.

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Reader's Digest's Pegasus spines

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Reader's Digest had a cute built-in loyalty device. The January edition carried one small Pegasus logo, February two, March three. If you let your subscription lapse, your bookshelves looked a mess because the pattern was broken. Rory thought nobody else had noticed it, but considers it one of the cutest little inbuilt loyalty programmes he has seen.

“If you didn't keep up your subscription, your bookshelves looked a bit crap because the pattern was broken.”

The point: A visible pattern that breaks when you defect is a simple loyalty mechanism.

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Religion understood variety; the efficiency doctrine doesn't

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The world contains a lot of hidden intelligence, particularly in old things, and a lot of hidden stupidity. The open-plan office offers no variety of pace or space, and the mobile phone broke the old link between place and activity: you met in the meeting room, photocopied in the photocopier room, were sociable in the pub. Religion understood that people are happier with injected variety: Lent, Ramadan, festivals like Christmas. The efficiency doctrine assumes best practice on Monday must be best practice on Tuesday and Wednesday, creating a dangerous uniformity.

“The world contains quite a lot of hidden intelligence, particularly in old things, and there's quite a lot of hidden stupidity.”

The point: Optimising every day to the same best practice removes the variety of setting and rhythm that people and good work need.

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Repeat business is the only metric that matters

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If Rory ran a new business, the only metric he would obsess over is repeat business and customer retention. People who return have complete information, from discovering you to experiencing the product, and still choose you again. That reliably indicates how good you are at creating tangible and intangible value and providing service. Given how costly it now is to acquire customers through Google and Meta, invest in customer service. One of the worst framings in business is seeing the call centre as a cost centre.

“The only metric that really matters, if I'm being honest, is repeat business.”

The point: Retention captures the whole customer experience better than any acquisition metric.

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Richer Sounds lends the best store a Rolls-Royce

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Julian Richer, founder of Richer Sounds, gave a talk around 1998 that was one of Rory's few life-changing epiphanies. Richer bought an old Rolls-Royce Silver Shadow, and the staff of the best-performing store each fortnight got the Rolls for two weeks: an unbelievably cheap incentive, but a kid working in a Barnsley hi-fi shop cruising around in a Roller becomes the most successful person from his school. He also paid every employee five pounds for any suggestion, accepting that about 3 per cent would be nonsense just to earn the fiver.

“Then basically you're the most successful person in your school.”

The point: Status-rich, cheap rewards and paying for every idea can motivate staff more than cash bonuses.

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RIM was right and Jobs was wrong

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Rory believes losing the physical keyboard on phones was a productivity disaster. You could type about twice as fast on a BlackBerry, and despite Apple's clever trick of enlarging the predicted next key, proper names and foreign words become a nightmare because the predictions are wrong. He estimates a billion people waste ten minutes a day typing badly or failing to write at length, all because display and novelty beat utility in the neophilia around the iPhone.

“I think the Canadians at RIM were right and Jobs was wrong.”

The point: Novelty and appearance can win markets even when they make the product objectively worse at its core task.

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Ring-fence 20% for spontaneous ideas

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Rory's tip for clients: give your agency 20% of your budget, ring-fenced for the creative and planning departments where nobody else can spend it, and tell them their job each year is to come up with spontaneous ideas that might help your business, with no more precise brief than that. Then measure each year whether the ideas were worthwhile. He predicts most will be rubbish, unfeasible or impractical, but three will be total belters, answers to questions nobody would have thought to ask.

“Most of the ideas will be absolute rubbish, but three of them will be total belters.”

The point: Unbriefed, protected exploration produces rare high-value ideas that briefs never would.

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Robert Crandall invented yield management and frequent flyer schemes

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Robert Crandall, the candid chief executive of American Airlines, once said he did not invest in airlines because they were a lousy way to make money but a great place to work. He invented both yield management, with prices varying widely by demand, and the frequent flyer programme. Rory sees yield management as an idea that may benefit everybody: it makes first-class travel accessible to more people, reduces overcrowding and stops trains being shunted around carrying fresh air.

The point: Some of the best business ideas combine economics, technology and psychology, and can benefit all parties.

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Royce the engineer, Rolls the salesman

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Edison was a marketer every bit as much as an inventor. Steve Jobs couldn't code; Wozniak did, and Rory reveres him, but Jobs's strength was marketing. At Rolls-Royce, Royce was the engineer and Rolls the salesman. Marketing and innovation are handmaidens, because any innovation requires people to do two things they dislike: something they haven't done before, and something most people aren't doing. Since our defaults are habit and social copying, overriding them takes a lot of psychological work.

“Any innovation requires people to do two things they really don't like doing: do something they haven't done before and do something which most people aren't doing.”

The point: Innovation needs marketing to overcome habit and social copying, so great inventions pair engineers with persuaders.

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Sergey Bubka broke the record by millimetres

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Under the Soviet system, pole vaulter Sergey Bubka was rewarded every time he broke the world record, with a limousine, a flat with a better view or, Rory jokes, a new girlfriend. So he broke it about 15 times, by a few millimetres each time. People believed he never performed to his full potential because breaking the record by three inches would mean putting up with the old girlfriend for five years. Rory compares it with marketers who prefer six small improvements to one big leap.

The point: Rewarding each increment encourages people to hold back and deliver gains slowly.

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Shared metrics make every firm the same

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Some contests, like the 100 metres, have an objective best time. But much of business and human interaction is closer to game theory: what matters is how you act relative to others. Measurebation in the City and among regulators pushes every company in a sector to pursue exactly the same metrics, so they become more and more alike. Darwinian intelligence does the opposite, creating diversity among species to avoid direct competition. Making everybody the same is not the way to build an efficient economic ecosystem.

“Making everybody the same is not the best way to create an efficient economic ecosystem.”

The point: Uniform metrics destroy the differentiation that both nature and markets rely on.

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Shareholder value as a way of producing companies nobody likes

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If the right kind of profit motive is a moral force, Rory wonders whether the shareholder value movement, with its focus on very short-term returns as a business incentive, is almost a way of promoting psychopathy in businesses. Certain forms of economic doctrine, he suggests, seem to be very effective ways of producing companies that nobody likes.

“Certain forms of economic doctrine seem to be very effective ways of producing companies that nobody likes.”

The point: Incentive structures that reward pure short-term profit can select for corporate behaviour people find repugnant.

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Show and tell and the British pitch problem

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Watching Dragons' Den, one of the most painful things in the UK version is people with patently good ideas and no clue how to wrap them in a story. Rory wonders whether the American advantage comes from show and tell: from a young age US children are encouraged to stand up and give an account of something. And America was founded by people who had to be insane optimists to make the journey at all. The 'author of your own success' narrative is unkind to the unlucky but probably net positive, because more people try.

“You have to be an insane optimist to make that journey in the first place.”

The point: Cultural habits of storytelling and optimism shape how many people attempt and fund new ventures.

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Signing away five-sevenths of your sunshine

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In the 1990s and 2000s half of agency work for IT clients showed someone with a laptop sitting by a lake, a dream the workplace failed to deliver. Rory feels a bit of a con artist about it. When you sign up for a five-day week in an office, you sign away five-sevenths of your sunshine and fresh air. Working in the garden on a sunny day feels like being on holiday, which for him mostly means sitting in sunshine anyway. The stock photo has finally become real.

“When you sign up for a five-day week in an office you're signing away five-sevenths of your sunshine and fresh air.”

The point: Office defaults carry hidden costs to wellbeing that flexible work can recover.

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Simon Cowell has no mobile phone

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Responding to the host's idea of tech-free communities, Rory notes that Simon Cowell does not carry a mobile phone. People around him carry phones and relay what he needs to know, creating a filter. You could build a one-way filter like that, enjoying the benefits of technology while paying to avoid its downsides. Technologies that promise efficiency can either amplify brilliance or replicate mediocrity.

The point: A human filter can capture technology's benefits while screening out its intrusions.

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Smith's lazy boy and the string, he's lost his job, Adam

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Smith tells of a boy whose job was opening and closing a flap on a steam engine. Wanting to play with friends, he noticed a moving part in sync with his task and tied the flap to it with string. Smith celebrates the innovation of the employee: it was probably a ploughman who first improved the plough. Rory reads it differently: 'No, mate, Adam. He's actually lost his job', unless he keeps it secret. Much of the public sector, he jokes, does the opposite: making jobs so fiendishly complicated nobody dares replace them with an algorithm.

“No, mate, Adam. He's actually lost his job.”

The point: Workers' incentives determine whether they reveal efficiencies or hide them behind complexity.

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Speaker cables handwoven by elves, then the iPod

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Anyone over 40 remembers friends buying expensive hi-fi and having interminable conversations about sound reproduction: 'I've bought speaker cables at £10 a foot, handwoven by elves.' Then the iPod arrived. MP3 sound was a bit rubbish, but you could carry 5,000 songs in a little box, and within about three months the whole paradigm shifted from perfect sound reproduction to portability and convenience. A balance sheet will not warn you of such shifts; only human understanding will.

“Speaker cables which are £10 per foot and handwoven by elves.”

The point: The dimension on which customers judge value can switch suddenly, making the old metric worthless.

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Spend 55 minutes defining the question

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Rory recalls Einstein's line that given an hour to solve a vital problem, he would spend 55 minutes defining the question and five minutes answering it, because the right question makes a worthwhile answer far likelier than one that merely looks sensible. In business, he says, it is much easier to be fired for being irrational than for being unimaginative, so people favour what seems sensible and can be modelled. Being creative is good business advice but not always good career advice, echoing Keynes's remark that it is better for your reputation to fail conventionally than to succeed unconventionally.

“It's much, much easier to get fired for being irrational than it is for being unimaginative.”

The point: Institutional incentives push people towards defensible, quantifiable answers to the wrong question.

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Spreadsheets are worthless if you do not know the business

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Rory says we have created management as a weird separate skill, assuming a marketing director can move from Everest double glazing to something completely different. He quotes the founder of Brompton Bicycles: if you understand the business, you can learn a lot from a spreadsheet; if you do not, the spreadsheet is basically worthless. You see topline numbers but not what drives them.

“If you understand the business, you can learn a lot from a spreadsheet. If you don't, it's basically worthless.”

The point: Numbers only inform people who already understand the operational reality behind them.

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Starbucks failed in Australia because the coffee was already too good

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Rory is baffled that Australians are not prouder: from a population of 27 million they have created two and a half world-class cities, rivalling Chicago. He loves that Australia is a country where Starbucks completely failed because the coffee was already too good; there are about three, one mainly at the airport. He also enjoys that McDonald's failed in Barbados. It is always lovely to look at where big multinationals failed.

“This is a country where Starbucks completely failed because your coffee was already too good.”

The point: Global brands fail where local standards already exceed their offer.

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Start with what works

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A friend of Rory's wrote a business book called Start With What Works. Even successful businesses fixate on one or two disappointing metrics; better to start with what is working and do more of it. About a decade ago, as a room ranted about how badly Britain worked, a guest from a nearby European country stood up and said: where I come from we'd kill to have your trivial problems. Rory suggests looking at places like Canada that work and copying them, though that is harder and slower than complaining.

“Where I come from, we'd actually kill to have the kind of trivial problems you have.”

The point: Amplifying what already works is often better than agonising over what doesn't.

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Strategy is staying one step ahead of the need to be efficient

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McKinsey-style consultants benchmark you against competitors. Roger Martin wrote a Medium piece titled 'Benchmarking is for losers': comparing yourself to rivals drags you into head-to-head red-water competition and a race to the bottom. Rory's favourite quote comes from Professor Jules Goddard of London Business School: strategy is the art of staying one step ahead of the need to be efficient. If you are competing on operational efficiency, you're already out of the game.

“Strategy is the art of staying one step ahead of the need to be efficient.”

The point: Efficiency is what you are left with when you have no differentiation.

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Stupid idiot 48, the surgeon's password

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Badly written rules, made without reference to psychology, are always dumb in some contexts, so people work around them. Force monthly password changes and everyone uses last month's password plus one. In Henry Marsh's book on brain surgery, he needs a patient's scans 20 minutes before operating, but they are password-protected. The technician says the password is stupid-expletive-idiot-47. It fails. Sorry mate, we changed it last month: it's 48.

The point: Security rules that ignore human behaviour create predictable workarounds, sometimes in life-or-death settings.

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Stupid people are differently lucky

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Entrepreneurs don't have to explain themselves to anyone, and some are psychopaths or frankly stupid. Following his friend Nassim Taleb, Rory argues capitalism partly works by rewarding luck: what happens to be lucky survives, the unlucky is weeded out. Stupid people are differently lucky from clever ones because they do things clever people wouldn't. They fail more often, but when the stupid thing turns out to be clever, being the only one doing it brings extraordinary success.

“Sometimes stupid people are actually differently lucky to intelligent people, because they do things that intelligent people wouldn't do.”

The point: Uncontested, apparently foolish bets carry outsized payoffs when they work.

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Subscription traps are a tragedy of the commons

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After Dilip Soman's talk on sludge, Rory notes that some sludge is a tragedy of the commons. Having been caught in subscription traps himself, he is now disproportionately reluctant to subscribe to anything. If he were promised up front an easy cancellation mechanism, he would subscribe on spec to quite a few more things, but now he fears realising seven years later that he has been paying monthly for some obscure publication. Short-term optimisation in marketing is at loggerheads with long-term desirable behaviour.

“Someone somewhere is optimising the wrong thing.”

The point: Hard-to-cancel tactics poison trust for everyone, suppressing the very sign-ups they aim to capture.

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Sweden alone would never make you rich

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Rory heard from a Scandinavian that the great advantage of a Scandinavian business is knowing that the Swedish market alone will never make you rich, so you have to think beyond it from the start. In Britain, Germany or France you can make quite a lot of money as a local brand, so you do not think the same way. The UK sits in an uncanny valley, halfway between that and the US, where you can become enormously rich serving the home market alone.

“The Swedish market alone would never make you rich, so you had to think outside it.”

The point: A small home market forces international ambition early, while a comfortable one breeds parochialism.

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Taco Bell failed because nobody could find the door

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In Obvious Adams, a failing shop's problem is simply that the door's in the wrong place. About 12 years ago Taco Bell opened by Trafalgar Square and failed; the company concluded London had no market for Taco Bell. Rory doubted it: there are enough expat Americans alone. The real reason: a huge neon sign on the square, but the entrance in an alley round the back, so nobody could get in. We post-rationalise failure with big, serious causes, the economy or Mounjaro, when it's often something trivial.

“The door's in the wrong place. Nobody can see how to go in.”

The point: Failures are often caused by trivial, fixable details, not the grand explanations we prefer.

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Take the pay rise as money or holiday

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In 2014, 40 per cent of Americans took no holiday at all, even though most say they would prefer less salary and more vacation; doubling holiday from two weeks to four would cost only about a 4 per cent pay cut. Economic theory says people choose the perfect balance of leisure and money. In reality the only answer to how hard to work is a bit harder than the person next to you, which creates an arms race. Rory has tried, so far without success, to get Ogilvy to offer every pay rise as either all money or half money, half holiday.

“How hard should you work? A bit harder than the bugger next to you.”

The point: Social norms can make a preferred option effectively unavailable, so creating an explicit choice creates value.

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Taking the curtains on business trips

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Nobody at work can make a decision any more without consulting HR, compliance, legal or finance, the vast waves of what Rory calls white-collar welfare eating up organisations. The only decision he can make without consultation concerns dry cleaning on business travel, so now when he goes on a work trip he takes his curtains along, because it is the last shred of autonomy he has left.

“When I go on a business trip, I take my curtains along, because it's the last shred of autonomy I have left.”

The point: Layers of consultation strip individuals of the autonomy needed to take judgement calls.

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Tech adoption is ideology, not evidence

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To a founder whose cold calling works best, Rory says it is an article of faith in tech to remove carbon, meaning human wetware, and automate everything. Propose automating email and you get no argument; propose physical direct mail and you face an uphill struggle even when it works. A large tech company he knows calls its direct mail annoyingly effective. Self-checkouts are another case: much tech adoption is fashion and ideology rather than proper experimentation.

“A large part of tech adoption I think is ideological. I don't think it's actually empirical at all.”

The point: Firms automate because it feels modern, not because tests show it works better.

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Technology tricks people into a benefit analysis

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Consultants and technology companies talk a very good game, Rory says, because cost saving through automation is such a plausible narrative. Technology is so beguiling that where people would normally do a cost-benefit analysis, with a technological solution they are somehow tricked into doing only a benefit analysis: look at all the money we will save, automation is good, and nothing bad ever happened because of technology.

“With a technological solution somehow people are tricked into just doing a benefit analysis.”

The point: Automation projects are judged on promised savings while their hidden costs to customers go uncounted.

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Ten plumbers pooling the risk of one experiment

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A lone plumber offered a new marketing approach with a good chance of a big upside but a 20% chance of a 20% earnings drop will refuse: one bad year puts him on the breadline. In a firm of ten, one plumber tries it and all share the downside, just 2% each. If it works, everyone copies it: the upside is 20% times ten, the downside 20% times one. That asymmetry only works with risk pooling, and the finance-led demand that every individual is accountable for their own results destroys it.

“The upside is 20% times ten, whereas the downside is 20% times one. That is a massive asymmetry which only works if you have risk pooling.”

The point: Individual accountability kills experimentation, because teams exist partly to share the downside of trying things.

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Tesco's good small shops undermined Tesco

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Rory's explanation for Tesco's decline: it opened lots of genuinely good small Tesco Metros. Because of the Pareto effect, shops 8 per cent the size of a superstore stocked 95 per cent of what people buy weekly (the single most bought item is the banana: Darwin could have saved a lot of travelling with decent point-of-sale data). So people shopped more often, in smaller batches, and mixed upmarket and downmarket: bit of M&S, Waitrose, Lidl, Aldi. Tesco's sweet spot in the middle became a weakness. Perhaps the Metros should have been deliberately rubbish, but nobody would have had the strength of character to say so.

“Darwin could have saved himself a hell of a lot of travelling if he just had some decent point-of-sale data.”

The point: Improving one part of a complex system can change customer behaviour in ways that erode your core position.

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Test a clothes-sharing business with a sign on your dorm door

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A university student told a business adviser she was sure there was a clothes-sharing business. Rory has never believed in it: however logical sharing expensive, rarely worn clothes is, there's a psychological hurdle. The adviser said: put a sign on your dorm door saying anyone can borrow your clothes for free, and if nobody knocks, you haven't got a business. No website needed. Old direct-response people did the same, testing perhaps 15 headlines in classified ads: if a promise doesn't work for £20, it probably won't for £2,000. Money is a truth drug.

“Money is a truth drug, isn't it?”

The point: Cheap real-world tests of demand beat economic logic and business plans.

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The 10 per cent wild card is always the first thing cut

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Media planners recommend 70/20/10: 70 per cent on what works, 20 on what probably works, 10 per cent wild card. Rory notes the 10 per cent is always the first thing cut, not because it doesn't pay but because it doesn't reliably pay. We've created a business world where predictability matters more than profit: people would rather have a constant 3 per cent than a 50 per cent chance of 30 per cent.

“It's not that the 10 per cent doesn't pay. It's that the 10 per cent doesn't reliably pay.”

The point: Organisations sacrifice expected value for predictability, starving exploration first.

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The 47-button remote control

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Using the Kano model, Rory notes that some extra effort or expense makes customers less happy. His example is the DVD or TV remote with 47 buttons, all but five incomprehensible. You were afraid to press them, because pressing the wrong one made a weird green number two appear on the screen, which you could never make go away.

“If you did press the wrong button, a weird green number two would appear on your TV screen.”

The point: Adding features can reduce satisfaction; effort and delight are not linearly related.

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The Abilene paradox

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One reason companies avoid sensible risks is the Abilene paradox: people go along with something they do not personally want because they falsely believe everybody else wants it. The result can be a collective delusion in which a group does what none of its members actually favours.

“People go along with something they don't want to go along with because they believe, falsely, that everybody else wants to do it.”

The point: Group decisions can diverge from every individual's preference, so collective choices need challenging.

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The Amazon locker that couldn't be changed

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Amazon twice failed to deliver to Rory's local locker because the courier could not get access, and said it would try again tomorrow. He asked them instead to deliver to any of the seven other lockers or five pickup points in Sevenoaks: he had chosen that locker arbitrarily. They could not. Customer-facing staff are now so individually monitored and rule-bound that they cannot use initiative, yet the value of customer service is the ability to extemporise. Great hotels let staff do that.

“The urge to turn every flaming thing into an algorithm is actually destroying businesses.”

The point: Removing staff discretion makes service fail precisely on the unusual cases where it matters.

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The arithmocracy

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Rory credits the planner Anthony Tasgal with coining the arithmocracy: the people who rule through access to numbers. He was grateful, because his own earlier label had got him into trouble for being politically incorrect. Anybody, however dim, with access to numerical measures now enjoys excessive power in an organisation.

“The arithmocracy: the people who basically rule through access to numbers.”

The point: Control of metrics has become a source of organisational power independent of judgement.

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The Army makes people who will die for each other

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Putting people in unfamiliar situations creates camaraderie, and the Army knows this; businesses don't. What do businesses create? Someone who will make a cup of tea for someone else. The Army creates people who will die for somebody else. Who is better at creating camaraderie, the Army or a PLC? Rory suggests looking at the available data.

“Businesses create someone who'll make a cup of tea for someone else. The Army creates people who will die for somebody else.”

The point: Organisations seeking loyalty should study institutions that engineer bonding deliberately.

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The art director who had already finished the crossword

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Judging people by real-world performance is far more reliable than proxies like degree class; it is unclear a good humanities degree predicts advertising ability. Rory looks for someone good at something else: a hinterland, a curious obsession with steam traction engines, true crime or cryptic crosswords. David Ogilvy said good copywriters are extensive browsers in all kinds of fields. He loves the story of a 1970s art director who turned up to his interview having already finished The Times crossword, which would impress Rory automatically.

“I would look for someone who was good at something else.”

The point: Curiosity used beyond immediate commercial need is a better marker of talent than formal credentials.

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The assertiveness course that emptied the agency

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Responding to a story about remote staff who asked for pay rises after meeting in person, Rory recalls an ad agency in the 1990s that sent its staff on assertiveness training. They all came back, and half of them resigned. Be careful what you wish for.

“They all came back and half of them resigned.”

The point: Interventions that empower staff can have consequences management did not intend.

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The BBC's 300 pound second-class ticket

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Netflix's travel policy is roughly one sentence: act in Netflix's best interest. The opposite: Rory's Spectator colleague Rod Liddle travelled to a BBC event with a BBC colleague. Friends had bought advance first-class tickets for about 60 pounds each, but the BBC person said they were not allowed to travel first class and dutifully handed over a full-fare second-class ticket costing around 300 pounds return. Such dumb rules force behaviour that is unintelligent but easy to quantify.

“That kind of dumb rule is almost an obstacle to human ingenuity.”

The point: Rigid rules designed to be auditable can produce outcomes worse than simply trusting people's judgement.

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The best clients are seen as mavericks

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Businesses riddled with perverse incentives, with bonus structures rewarding process and justification, then wonder why they no longer innovate: they only have themselves to blame. Among Ogilvy's many great clients, Rory says, the very greatest are nearly always viewed within their own organisations as subversive, as mavericks, as not quite a safe pair of hands. That is precisely why they do brilliant work: they are prepared to let upside opportunity occasionally outweigh downside risk.

“Nearly always the very greatest of them are viewed within their organisations as subversive.”

The point: Organisations that punish risk push their best decision-makers to the margins.

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The Boston Market effect, you are not everybody

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After the host suggests founders hold product development meetings in a Sainsbury's car park in Hull, Rory names the Boston Market effect. Wall Street workers going home late bought excellent, pricey rotisserie chicken at Boston Market. All their friends went there, so they assumed it was a huge success and bid the stock up, until someone realised that the market in Peoria, Illinois, was not quite so exciting. He adds that Brits, unlike their reputation, are adventurous with food.

“That's when you realise that you are not everybody.”

The point: Decision-makers generalise from their own unrepresentative circle.

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The bread that made the British sandwich industry

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Why do some new cafés stick while others vanish? Partly luck, timing and competition. Rory cites a BBC documentary on the history of the British sandwich, from the British Rail joke to Pret and gourmet sandwiches. It was a complicated, path-dependent process. Someone at Marks and Spencer was decisive by working with Allied Bakeries on bread that would survive overnight, so sandwiches could be made centrally rather than on site. As Matt Ridley and Sam Tatham argue, many ducks must line up, and you can launch too soon.

“There's a path dependency to things. You can launch something too soon and nobody can get their head around it.”

The point: Success often hinges on enabling conditions and timing outside the founder's control.

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The cafe that refuses to serve soup

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Rory chats endlessly to the owner of a favourite brunch cafe because hospitality teaches you so much about marketing. She refuses to serve soup. Soup attracts pensioners, who stay a very long time, spend little on anything else, cannot manage the stairs and complain about the draught if seated by the door. Without soup she gets two sittings of people in their forties from the same table and makes twice the money.

The point: What you choose not to sell shapes who your customers are, and can matter more than what you add.

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The call centre that overpays its staff

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One Ogilvy client had a superb call centre. Asked why, they admitted they probably overpaid the staff: feeling overpaid, they stayed for years and became really good. Arguing for a pay rise because happy staff sell more would take a year and you would probably still lose. Propose putting the staff on zero-hours contracts and outsourcing them, and it goes through on the nod.

“If you went into the same meeting and said I'm going to put the staff on zero hours contracts, that will get through on the nod.”

The point: Cost cuts are easy to justify and value-creating spend is hard, which biases firms towards worse service.

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The carpet chain's direct mail flywheel

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Rory met a man expanding a chain of carpet shops. He uses direct mail at each launch and measures it loosely: launches with direct mail tend to go better. If a launch goes well, salesmen from rival carpet stores offer to work for him because he is selling more; then the fitters come too. That flywheel ideally ends with the rival shop closing. He is betting the farm on the flywheel and does not need to isolate direct mail's role, only to know it makes success probabilistically more likely.

“I simply have to know that it makes success probabilistically more likely.”

The point: Where success compounds through feedback loops, loose measurement of what raises the odds beats precise attribution.

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The CEO's real-time dashboard is FarmVille

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Someone at Bloomberg told Rory the perfect CEO fantasy is a dashboard showing the financials in infinite detail, minute by minute. Rory's response: that's not business, that's FarmVille. It is not strategy, it is a Tamagotchi. Over-optimising the parts at the expense of the whole is incredibly dangerous, yet the people doing it think they are doing God's work.

“That's not business. That's FarmVille.”

The point: Granular real-time metrics create an illusion of control while missing strategy.

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The Cornish delivery driver who rewrote the algorithm's route

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A taxi driver in Cornwall told Rory he used to drive for a parcel firm, probably DPD, which gave him an algorithmic route to obey slavishly. But he had tacit local knowledge: that place never opens until 8:30, those people are on holiday, so I'll go there second. Every day he sat in his cab and rewrote the route plan. The amusing result was that he knocked off at about 2:30 while everyone else worked until 5. We are creating a world so addicted to efficiency that it can't listen to tacit or local knowledge.

“I used to knock off at about 2:30. Everybody else was still working until five.”

The point: Local, tacit knowledge often beats centralised optimisation, yet systems are built to ignore it.

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The Corsican lobster fisherman

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When the landlord explains he will never open a second Devonshire, Rory adds a story from his wife's youth. As an au pair to a French family of Protestant wood merchants, she went on holiday to Corsica, where they went out with a lobster fisherman who dropped his pots at night and collected them the next morning. The merchant was driven insane: why not drop a second lot? Apart from the risk of overfishing, the fisherman's answer was simple: he made a good living this way, so why would he mess everything up?

“I make a good living this way. Why would I mess with everything?”

The point: More is not always better; scaling up can destroy a way of life or a business that already works.

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The electric car service with nothing to service

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Cars are becoming software. An internal combustion drivetrain has around 230 moving parts; an electric one about six or seven. Rory took his electric car for a service and was told the brakes and tyres were fine. And the other stuff? 'There isn't any other stuff.' He ended up having the cabin air filter replaced because he felt sorry for them and wanted to give them something to do. German brands built on engine engineering heritage face a world where, once battery density is reasonable, Faraday wins on simplicity.

“I said what about all the other stuff? They said there isn't any other stuff.”

The point: Technological shifts can wipe out the competences and revenue streams that brands and businesses were built on.

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The energy expert who thought he was nuts

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About 20 years ago, in a weirdly eminent group including a major energy expert, Rory suggested a significant gain from simply changing when people use energy: a tumble dryer run at 11pm is probably nuclear-powered, at 5pm it probably emits a lot of CO2. The expert looked at him as if he were insane, so Rory did not mention it again for 15 years. Only later did he realise he was not wrong: energy people optimise for the technology, not the behaviour, and people lay outside his remit.

“Energy people don't look at people as part of the system.”

The point: Experts who optimise technology often cannot see behavioural solutions because human behaviour is outside their remit.

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The executive whose emails were faxed to him

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Among older managers it can be high status not to use technology. Until seven or eight years ago a very senior Ogilvy figure had his PA fax his emails to his hotel, 47 pages at a time; he scribbled replies and faxed them back. In the late 1980s typing was low status because it was secretarial: Rory had to wait for the group secretary to go to the loo before rushing to her keyboard, and his wife's British Aerospace graduate cohort were told off for doing their own typing. The spreadsheet changed that.

“You signal status by being crap at things.”

The point: Incompetence can be a status signal, which slows adoption until something forces competence.

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The finance function's veto is why there's no growth

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Marketing has lost the plot, Rory says, hijacked by deterministic thinkers in media and management consulting trying to reduce advertising to an algorithm. Narrow bottom-of-funnel direct response can be optimised, but much of it must be heuristic. We must fight the cult of accountability: the business world has been hijacked by the finance function, which has a veto over everything, as the Treasury does in government. A nerdish obsession with protocol overrides instinct, intuition and experimentation, and people who thrive on certainty hold the levers.

“That's why we don't have any economic growth. It's because the finance people who thrive on certainty are effectively holding the levers of power.”

The point: Giving certainty-seekers a veto suppresses the experimentation growth depends on.

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The first thing to be closed down is the benefit of the doubt

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Hearing how a train guard simply wrote a note on a lost foreign passenger's ticket so she could travel on, Rory notes that codifying everything eventually manifests as bureaucracy. A computer could perhaps do the same, but it would be programmed not to, because the benefit of the doubt shows up financially as a loss and is vulnerable to fraud. So the first thing to be closed down is the benefit of the doubt, along with wiggle room and defaulting to trust.

“The first thing to be closed down is the benefit of the doubt.”

The point: Formalised systems eliminate discretion and trust because their value never appears on a spreadsheet.

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The Gousto box Rory could not see the point of

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When a Gousto founder pitched him before lockdown, Rory thought recipe boxes were dumb: he had Ocado and his wife had dozens of cookbooks. Bill Gates said people do not know how to want what technology can offer, and recipe boxes are experience goods whose value only shows in use. The founder sent a free box, and Rory ordered almost weekly for two and a half years, as did his assistant. He cannot fully explain it, but perishable ingredients in the right ratio force you to cook a restaurant-quality meal at home in a sensible portion, unlike takeaways that overfill to avoid looking stingy.

“I can't quite explain why, once experienced, this is such a compelling benefit.”

The point: Experience goods win converts through trial, not description, so the marketing task is getting the first try.

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The hidden downside of economies of scale

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Responding to Mark Read's point that differentiation brings resilience, and that universal banking went wrong when every bank became the same, Rory notes that economies of scale are treated as universal truth. In economic and consulting circles, making things bigger, more uniform and more commodified is regarded as an unalloyed good. But there is a huge downside, not least that the marketplace becomes more and more homogenised.

“Making things bigger and more uniform and more commodified is regarded as an unalloyed good in economic circles.”

The point: Scale and uniformity have hidden costs in homogenisation and fragility that economic orthodoxy ignores.

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The keyboard is a uniquely antisocial implement

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Rory calls the keyboard a uniquely evil implement: it means one person interacting with one machine to perform one function, which has made us antisocial and turned offices into cubicles. He praises voice dictation tools such as Wispr Flow. Humans are optimised for collective decision-making, so the future of AI is six humans interacting with two AIs, not one with one. Just as we once thought sending children up chimneys was fine, the keyboard has normalised many deeply anti-human behaviours around technology.

“The future of AI is actually six humans interacting with two AIs, not one human interacting with one AI.”

The point: Design technology for collective human use rather than solitary interaction.

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The Kindle did not kill the book

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When the Kindle arrived Rory thought print was dead: instant delivery, no 'which book to pack' dilemma. New technology makes what it can do salient and hides what it can't. About half of publishing is gift-giving, and you can't give an individual e-book. Printed book sales are higher than ever, e-books have plateaued, and The Spectator's paper subscriptions are at a record. An engineer defined a book as information provision, solved for that, and forgot everything else.

“Just as an automatic door doesn't do what this guy does, this doesn't do what a book does.”

The point: Replacing a product with something that matches only its narrow function misses the rest of its value.

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The M&S trolley that needs a coin in Sevenoaks

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Marks & Spencer in Sevenoaks makes you put a coin in to get a trolley, perhaps at the council's insistence. Rory would ignore the rule: the people of Sevenoaks have many faults, but throwing trolleys into canals is not one, and anyone seen pushing a trolley through the streets would become a social pariah. It is costing M&S a fortune, because people think shall I get a trolley, and give up because nobody carries coins any more. Rational at the level of not losing trolleys; moronic for the business.

“I haven't got a coin, because it's not 1973.”

The point: Rules that optimise one small loss can destroy much larger value elsewhere.

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The Meeting Owl that won a client

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We invest enormous effort in travel, learning to drive, insuring cars, and in Rory's case fifteen years to breeze through an airport, yet almost nothing in video. A 4K screen, a good microphone and webcam are rounding errors next to transport costs. Ogilvy won a big piece of business partly because it used a Meeting Owl, a 360-degree camera that zooms on whoever speaks. The client said 'you're the guys with the really cool video conferencing'. Better an agency that can do a competent 7am call at short notice than one desperate to hop on a plane.

“You're the guys with the really cool video conferencing.”

The point: Competence at the cheap alternative can be a stronger signal than costly gestures everyone else makes.

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The most valuable things you can't charge for

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Looking back over 40 years, Rory thinks the most valuable things he did could not be charged for: introducing or recommending someone to somebody else, and above all recruitment, who he hired. Nobody is bonused on that. David Ogilvy was right: hire people bigger than you and you become a company of giants; hire people smaller and you become a company of dwarves. Many of the most important things generate no immediate data point. Business people used to run businesses while finance kept score; now the scorekeepers write the rules.

“Probably the most valuable things I did, you couldn't charge for.”

The point: Much of the real value in work produces no measurable data point, so metric-led firms neglect it.

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The Moxy hotel's mental hack

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Rory admires Moxy hotels. Everything is basic: good TV, good wifi, a comfortable but small room, no room service, no laundry. You would not stay two weeks. But the location is good and the ground floor works like a WeWork: you can hang out, meet people, even spend three hours on email after checking out without feeling like a weirdo, unlike a conventional hotel's small reception where staff clearly want you gone.

“Even after you've checked out you can spend three hours doing your email at the Moxy without feeling like a weirdo.”

The point: Cutting what guests don't value and adding a generous social space can beat conventional all-round service.

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The newsagent who wouldn't lend 60p

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Rory distinguishes transactional capitalism, optimising each standalone exchange, from relational capitalism, as in a regular pub. In the early 1990s he bought a paper, cigarettes and matches from the same shop daily. One day, short of Tube fare, he asked to borrow 60p until the evening. They refused. He never went back, going out of his way to shop elsewhere. They broke the unwritten rule that regulars earn give and take: a garage he uses should accept losing money one time in five to win five future transactions.

“They'd violated an unwritten, unlegislated rule.”

The point: Repeat relationships run on reciprocity that transactional economics cannot see.

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The perfect hotel check-in is at both extremes

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Often the solution is not the compromise in the middle but offering both extremes. The perfect hotel check-in is either a massive fuss, as once at the Mandarin Oriental in Hong Kong, where staff took Rory to his room, sat him at a big desk and made him tea while he signed in, which he remembers years later, or checking in on your phone and going straight up. Very frequent guests would probably prefer the latter, even though it is cheaper to provide.

“Quite often the solution to something isn't the middle, which is a compromise and a trade-off. It's actually to offer people both extremes.”

The point: Serve the extremes rather than averaging them into a mediocre middle.

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The Persians decided twice, sober and drunk

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Creative people always present their work to rational people for approval; it never happens the other way round, with accountants sharing their 7.3 with wacky people to see if they have alternatives. A one-way street where the left brain ratifies the right but is never itself challenged. Herodotus offers a solution: the Persians debated every important decision twice, once sober and once drunk, and acted only if both sober self and drunk self agreed, and drunk self had not come up with a better idea.

“Only if it appealed to sober self and pissed self would they enact it.”

The point: Decisions should be tested by both rational and unconstrained modes of thought, not by logic alone.

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The real cost of bureaucracy is things that never happen

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Echoing Dan Davies and Gary Hamel's Humanocracy, Rory argues the cost of bureaucracy is not civil servants' salaries but opportunity and time cost: he will not start anything if a definitive decision is not available within six months. Inside companies, HR and finance at some point went on an away day and decided they ran the company. The private sector now suffers the same 'corporate oncology' of self-replicating bureaucracy, paralysing risk-taking, imagination and lucky accidents. The biggest hidden cost of trying to be right is that you can no longer get lucky.

“The biggest problem of trying to be right is that the hidden cost you pay is that you're no longer capable of getting lucky.”

The point: Bureaucracy's true cost is the opportunities and lucky accidents it prevents.

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The redundancy list drawn up by billability

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Rory calls out his own company: needing redundancies, it used a formula selecting the least billable people in an arbitrary snapshot period. One person on the list was writing extraordinarily interesting thought leadership papers that were immensely useful to everyone else in the team; producing them had simply made her marginally less billable in that period. The person at the very top vetoed the decision. Rory says that is not management or leadership: it is what happens when finance takes control, and such a company would not deserve to survive.

“That's not management. That's not leadership.”

The point: Measuring too granularly over too short a period removes the people creating the most value.

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The service station that looked closed

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Driving on the Welsh borders, Rory's wife needed lactose-free milk, but the service station looked shut: lights and price signs off. Remembering it had been open on Christmas Day, he went in and found a fully working 24-hour store with no customers, because every passing driver thought it was closed. The cashier said the last shift forgot the lights. Had he stolen a £1 Lion bar there would have been an inquiry; leaving the lights off cost perhaps £200,000 in revenue, and nobody cared.

“Sins of omission, dogs that don't bark in the night, are much less easy to identify than sins of commission.”

The point: Organisations punish visible small losses but ignore large invisible opportunity costs.

Sources (1)

The Slate, a basic pickup designed for pimping

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Rory is talking to, and investing in, the people behind the Slate: a 20,000 to 25,000 dollar, totally basic rear-wheel-drive electric pickup to be made in Indiana. It has wind-down windows and no radio, just a space for your phone and all the safety equipment. Everything else is an add-on: convert it to a five-seater, or plug a radio into the dashboard if you want one, and don't pay if you don't. Drive one around Austin, he says, and you'd be the coolest guy in town.

“If you don't want to pay for a radio, you don't pay for it.”

The point: Stripping a product to essentials and selling customisation can make cheapness desirable.

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The Soho bar where the girls look like overhead

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Businesses used to work because practitioners worked out how to add value and finance then worked out how to make money from it. Now those who count the money decide what value is. Rory's politically incorrect analogy: Soho bars charge 100 pounds for sparkling cider passed off as champagne, while a scantily clad woman sits beside you. A consultant might see a highly profitable bar business burdened by staff who look like pure overhead. But nobody pays 100 pounds for the cider without them. Similarly, agencies make money from time-consuming processes, while the value may be a 20-second insight.

“No one's paying a hundred pounds for your goddamn cider in the absence of the other.”

The point: Where money is booked is not always where value is created, so cutting apparent costs can destroy revenue.

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The Spectator's blind internship and Ogilvy's Pipe

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Ogilvy started a second recruitment stream called the Pipe, discarding the usual criteria and asking candidates to perform creative exercises; it ended up hiring the likes of East London beat poets. The Spectator began recruiting interns blind, looking only at a piece of interesting writing, not the CV. It ended up hiring a 45-year-old single mother who would probably have been filtered out by unconscious bias. We use the CV as the unit of comparison even though its predictive value may be low.

“We're looking at a CV as a unit of comparison even though the predictive value of that may really be pretty low.”

The point: Changing the selection criteria uncovers talent that conventional filters exclude.

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The strategy myth

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Rory argues there is a big strategy myth in business, and it is important to those at the top that it is maintained. If the board convinces everyone that an organisation's success depends almost entirely on board decisions, the disparity in salaries looks more justifiable than if you admit that much of the credit lies elsewhere, in small pieces of tactical activity.

The point: Overvaluing strategy flatters senior people and undervalues small tactical wins.

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The subway line versus the High Line

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After Mark Read describes how a disused railway in Manhattan became the High Line garden and revived a district for a fraction of conventional spending, Rory points to an asymmetry. It is much easier to make money out of a new metro line: a consultancy can stick its blood funnel into that for the next ten years. The High Line idea was done by volunteers. It is far harder to make money out of ideas than out of big physical projects, which is why the logical, expensive option gets chosen. Perhaps Boris Johnson's unbuilt garden bridge was what London needed.

“It's much easier to make money out of a new metro line. It's far harder to make money out of ideas.”

The point: Institutions favour expensive physical solutions partly because they are more lucrative for advisers than cheap imaginative ones.

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The television too big to move to the second room

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When households got more televisions, family viewing fragmented. The large flat-screen briefly re-centralised viewing around the one massive set. Then people bought an even bigger television and moved the old one into the second room. Now, Rory says, TV manufacturers face a weird stalemate: the main set is so huge there is no second room in a British house where it belongs, so it is very hard to get people to upgrade.

“There isn't really a second room where it belongs in a British household.”

The point: Upgrade cycles depend on hand-me-down paths in the home, which product success can block.

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Three weeks proving you are not Pablo Escobar

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Defending Angela Rayner over her stamp duty error, Rory says that despite a Cambridge degree and a father in property, he has no clue how stamp duty or VAT works; about half the effort in his business goes on paperwork he hands to his wife. The private sector is as bad: opening a bank account means three weeks proving you are not Pablo Escobar, then money-laundering checks. He gave up on a business credit card. HR and compliance act as weird internal monopolies that make doing anything almost impossible.

“First of all, you spend about three weeks proving you're not Pablo Escobar.”

The point: Administrative complexity is a tax on activity that falls hardest on ordinary people and small firms.

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Too much Taylorism, not enough Druckerism

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Asked to summarise briefly what is wrong with business today, Rory says there is a bit too much Taylorism and not enough Druckerism. In other words, too much quantification of what already is, and too little speculation, exploration and experimentation about what could be. The extraordinary effort put into data collection is unmatched by any corresponding effort to look for interesting causation.

“There's a bit too much Taylorism and there's not enough Druckerism.”

The point: Organisations over-invest in measuring the present and under-invest in exploring what could be.

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Too trivial for the board, worth £20 million

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A BBH planner wrote a piece called 'the planner as detective', and Rory urges everyone to read the Sherlock Holmes stories, which also influenced Rick Rubin. Conan Doyle trained as a doctor, applying diagnostic skills to detection: Holmes notices what nobody thinks important, the dog that did not bark. That is why entrepreneurs need curiosity and no sense of proportion. In a big airline's board meeting, raise the website design and you are told 'we're here to discuss whether we buy 787s or Airbuses'. Yet changing that website could make £20 million a year.

“You can change the design of an airline website and it'll make you 20 million a year.”

The point: Big organisations ignore small levers because they seem beneath the agenda.

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Topping up a pension, the double goo

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Left-brain institutions treat everything as an optimisation problem, but people care more about certainty and avoiding ambiguity than optimising wealth. It drives Rory nuts that when he pays into his pension he gets no text confirming it; he must wait six months for a statement. And a one-off top-up is so hard it is a double whammy: difficult, and because the process is gooey, it feels weird. If this were normal, they would have made it easy; having to find a letter and buy a stamp must mean you are doing something odd.

“If this were a normal thing to do they would have made it easy.”

The point: Friction not only deters action but signals that the action is abnormal, deterring it twice.

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Tourist restaurants and the favour for an amnesiac

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Procurement does not understand time: seven optimised transactions are not an optimal series. If you expect repeated dealings you cooperate and add unscored value; if the contract is re-tendered every two years regardless of performance, suppliers behave like crooks. There is no point doing a favour for an amnesiac. Before TripAdvisor, a tourist restaurant overlooking the Parthenon did best by overcharging diners who would fly home to Luton tomorrow; a local restaurant relying on repeat custom had to be generous.

“Long-term selfishness is almost indistinguishable from cooperation.”

The point: Good behaviour depends on the expectation of repetition, so short-term procurement destroys the goodwill it never measures.

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Twelve Angry Men, the broken fan and Henry Fonda's 'not'

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Rory calls Twelve Angry Men the perfect companion to Noise. At first everyone is eager to convict, partly, it seems, because they can't fix the fan; it only works when the bathroom light is switched on, and the cooling changes the mood. The advertising account man on the jury simply follows mass opinion. And when the jurors write their votes, the 'not' on Henry Fonda's paper is offset to the left: he first wrote 'guilty' and added 'not' at the last minute. Business meetings rarely canvass independent opinion; they are designed for unanimity at any cost.

“The structure of the meeting is almost designed to achieve unanimity at any cost.”

The point: Collecting independent views before discussion matters, because environment and conformity quietly bend group judgements.

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Two-factor authentication as a category risk

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An online retailer with a fraud problem imposes two-factor authentication; fraud falls and sales barely dip. Rational. Then every retailer and streaming service does it. Rory tries to keep his phone charging in the kitchen, away from him, but now needs it for every transaction because of some verification app. If every online transaction demands two-factor authentication, people may stop using online altogether. What is wonderful for an individual business is a category risk for online retail collectively.

“It looks like a wonderful thing for your individual business. It's actually a category risk.”

The point: Locally rational measures can collectively degrade a whole category.

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Uber invented before 3G would have failed

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One thing found to distinguish very successful businesses, over which founders have little control, is timing. Adopt some ideas a year too early or too late and you get nowhere. Often other technologies must be developed, or adopted, first: if you'd invented Uber before 3G mobile, the mapping wouldn't have worked or would have been massively frustrating. People will only do X once they're already doing Y, so you must wait for Y to become popular.

“If you'd invented Uber before there was 3G mobile, the mapping wouldn't have worked.”

The point: An idea's success often depends on complementary technologies and habits being in place.

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Uber Sleeps, a kit for the unplanned night away

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When his host jokes about needing 'Uber Sleeps' to deliver decent pillows to hotels, Rory builds on it: there is a market for a service that, when you miss the last train and crash at a hotel, delivers a shirt in your size for the next day, plus toothpaste, a toothbrush and everything you did not pack because you never expected to stay.

“It would deliver a shirt in your size for the following day, toothpaste and a toothbrush, all the things you didn't think to pack.”

The point: Unplanned situations create needs that conventional services, built for planned ones, leave unmet.

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Uber without the map, Dyson in beige

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Rory suspects many billion-dollar businesses owe their success to a few psychological factors that even their founders underestimate, because a Harvard Business Review case prefers to credit supply chains or economies of scale rather than a hack in the human brain. He predicts that if Uber had built everything except the map and the wait estimate shown before you book, it would not have been enjoyable enough to dominate. Zoom owes much to similar factors, and if Dyson vacuum cleaners were beige, nobody would have bought them.

“If Uber hadn't had the map, I don't think it would have gone anywhere.”

The point: Small psychological features often drive success that is later misattributed to operational strengths.

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Video calling is close to teleportation, yet nobody builds for it

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Rory is disappointed by how little investment has gone into remote-working hardware, beyond projects like Google's Starline 3D video conferencing. Offices have shrunk but are not kitted out for video calls: too many meeting rooms, too few private pods. Over a long horizon, the ability to talk instantly to anyone on any continent, in groups or one to one, is not far from teleportation, yet the discussion of AI dwarfs it and nobody is developing the hardware.

“The importance of being able to have a conversation with anybody instantaneously on any continent strikes me as not far from teleportation.”

The point: Society underrates and underinvests in the transformations it has already got, chasing newer hype instead.

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Video calls fill the gap between a text and a meeting

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Draw the same graph for communication by intimacy: lots of asynchronous text and photo media, a blip for the phone call, then a huge gap up to meeting in person. Only video conferencing fills that gap. Rory calls its rapid adoption during the pandemic one of the most important technology-driven economic events in 30 years, and nobody talks about it. A face-to-face meeting costs half a day and cancelling is rude; an hour on Zoom costs an hour and nobody minds a cancellation, so far more meetings happen.

“The opportunity cost is half a day. If I want to meet you for an hour on Zoom, the opportunity cost is an hour.”

The point: Lowering the commitment cost of a meeting unlocks a vast number of business conversations that would never otherwise happen.

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Walmart, Kmart and Target were founded in the same year

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Timing is extraordinarily important in creating any business. Someone made the astute point that if Bill Gates, Steve Jobs or Andy Grove had been born three years earlier or later, they could not have done what they did. And Walmart, Kmart and Target were, Rory believes, all founded in the same year, 1962. We should remember this both when praising the successful and disparaging those who fail: part of it is beyond your control, simply getting the moment right.

“Some part of it is beyond your control because it's simply getting the moment right.”

The point: Success owes much to timing, so judge winners and losers with humility about luck.

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Warburtons grew one region at a time

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Young people think of Warburtons as a national bakery, but it was a family-owned Yorkshire bakery without venture capital or a massive expansion plan. Of necessity it expanded one region at a time, from Yorkshire to Manchester and onwards. Impatient marketers would say go national at once, and Rory understands why. But growing narrow and deep, one geography at a time, raises both the chance of success and how enduring that success is, compared with going wide and thin.

“The enduring nature of your success is likely to be greater if you expand organically one geography at a time.”

The point: Local, clustered growth builds self-reinforcing herds that make success more durable.

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We got the video phone and didn't use it

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Growing up in the 1970s watching Star Trek, what everyone wanted was video calls and flying cars. Rory never predicted we would get the video and then not use it. Imagine inventing flying cars and asking a friend how his is going: 'Oh, I never really bother flying it, I just drive on the roads.' Admittedly video was poor for its first five years and many were poisoned by that experience, but even so the ratio of physical to virtual meetings cannot be 99 to one.

“What's your flying car like? Oh, I never really bother flying it now, I just drive on the roads.”

The point: Social equilibrium, not technology, held back an already-available innovation.

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We pretend efficiency is effectiveness

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Stop trying to sell as efficiently as possible and try selling as effectively as possible, accepting the attendant cost in effort and time. Cutting slow, costly selling is like closing down the exploratory bees because they look like a cost: it looks logical and efficient but is catastrophic. If you're running an unaccountability machine and trying to dodge blame, you pretend efficiency is effectiveness, because efficiency has easy maths and effectiveness has complicated maths.

“You pretend that efficiency is effectiveness because efficiency has easy maths and effectiveness has complicated maths.”

The point: Organisations optimise what is easy to calculate rather than what actually works.

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We reward certainty and cowardice over uncertainty and courage

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Agreeing with Cleese that decisive should mean deciding when a decision has to be made, not quickly, Rory summarised a piece he had recently written: what we actually want is more uncertainty but more boldness. Instead we have created an environment that rewards certainty and cowardice rather than uncertainty and courage.

“We've created an environment which rewards certainty and cowardice rather than uncertainty and courage.”

The point: Institutions that punish admitted doubt push people into false confidence and timid choices.

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We still build houses as if it were 1640

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Rory jokes that his secret theory about Elon Musk, given his solar, battery, Starlink and tiny-home interests, is a James Bond villain plan to tank the housing market with factory-built homes you could plonk anywhere. More seriously, he finds it one of the weirdest technological failings that we still build homes from the foundations up rather than prefabricating them off-site, when ship building and almost everything else is modular.

“The fact that we still build homes as if it is 1640, from the foundations up rather than prefabricating them, is one of the weirdest technological failings.”

The point: Some industries remain stuck in pre-industrial methods long after modular production transformed others.

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We've run out of technology; psychology is the low-hanging fruit

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Rory's cynical view, which he says nobody believes, is that we have largely run out of technology for the next five to ten years: the technological low-hanging fruit has been picked. What remains to be exploited is psychological innovation, such as what happens to people's propensity to repair a washbasin when you present the choices the other way round. That calls for much more testing and experimentation.

“What remains to be exploited is psychological innovation.”

The point: The cheapest remaining gains come from redesigning choices and perceptions, not new technology.

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What a client pays for a colleague's curry

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Rory asked Ogilvy's finance department how much fee income a client must pay for a younger colleague to buy a curry. The fee passes through overheads, HR, finance and office space; the landlord and shareholders take their cut; what trickles down to salary then loses about 40% in tax, and much of the rest goes on housing and commuting. Roughly £250 of client fees buys one trip to the curry house. Do the work on Zoom and much of that leakage disappears. He calls himself a Georgist on property.

“It's amazing that capitalism functions at all when you look at the extent to which money goes in and incidental costs chip away at it.”

The point: The link between value created and reward received is diluted almost to nothing by overheads, property and tax.

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What gets mismeasured gets mismanaged

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In sales-dominated organisations the metric is leads. Doing only what you can measure and prove in advance looks scientific, but it limits you to a tiny range of actions: you end up doing what you can prove, not what works, perhaps capturing 10 per cent of marketing's value. Everyone knows that what gets measured gets managed. The concomitant phrase is that what gets mismeasured gets mismanaged, and the unmeasurable creates enormous blind spots.

“You end up doing what you can prove, not doing what works.”

The point: Restricting action to the measurable sacrifices most of the value available.

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When 99% agree, we're chanting, not thinking

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Rory isn't worried by a 52 to 48 Brexit vote: there are arguments on both sides, and at least people are arguing. What worries him is marketing conferences, where if you want the same words repeated over and over, it's cheaper to become a Buddhist. Ask whether big data is essential to future marketing breakthroughs and 99 per cent say yes. Big data looks scientific, and nobody gets fired for being logical: it is easier to be fired for being illogical than unimaginative. So nobody asks about its downside.

“Now we're not even thinking, we're just chanting.”

The point: Consensus on fashionable, scientific-looking ideas suppresses scrutiny of their risks.

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When the CFO becomes CEO

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Rory notes the death knell of a business when the CFO becomes the CEO. Not an absolute condemnation, but there is a death rattle to it: someone with a massively deterministic mindset, who wants everything predictable and within measurable bounds, moves into a job that requires the opposite, a probabilistic mindset.

“There's a bit of a death rattle to it.”

The point: Leadership needs probabilistic thinking, which a finance mindset tends to suppress.

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Who measures the productivity of finance?

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How do we measure the productivity of a finance department? We haven't a clue. Yet procurement, HR and finance end up policing the people who do the real work, imposing KPIs on engineers fixing boilers: who guards the guards? They'll never pursue efficiency in their own departments, which might cost their mates' jobs; they'll squeeze frontline staff further. Rory fears AI firms, having invested a trillion dollars, will sell AI with consultants via cutting frontline workers, rather than through an opportunity mindset, or using it to shrink a self-sustaining, slightly cancerous bureaucracy like ever-growing HR.

“Who will guard the guards themselves?”

The point: Efficiency drives fall on frontline workers while unmeasured overhead grows; AI risks repeating this.

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Why all cars are grey, the lease buy-back

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Cars used to be personalised; now most are black, silver or blue-grey. Part of the reason, Rory says, is resale value under lease and hire-purchase deals where the dealer must take the car back at a set price after three or four years. Order a pink car, which you technically can, and you meet massive resistance, because the dealer knows it will be lumbered with a pink car in four years and the resale problem is theirs, not yours. Ford's Mustang Mach-E is going against the trend.

“They know that they'll be lumbered with a pink car in four years' time, and the resale problem is theirs, not yours.”

The point: Hidden incentives in the sales system can homogenise what customers end up choosing.

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Why Apple is hard to unseat

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Sunk cost is one reason it will be very difficult to unseat Apple, Rory says. Someone could produce a better Android phone, and some argue the best already are better, but people are invested in the whole ecosystem: the earbuds, the charging cables and everything else. In for a penny. He pairs it with the foot-in-the-door effect: sell someone a small thing and it is easier to sell them a big one.

The point: Accumulated investment in an ecosystem locks customers in more powerfully than product superiority.

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Why can't you reorder your favourite shirt?

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A total flaming weird thing: all blokes have a favourite shirt, but you can never find a second one. Why don't men's shirts carry a QR code saying 'reorder this in the same or a different colour here'? About seven times in his life Rory has bought something he would have bought four of had he known. It doesn't work for women, he notes: buying his wife a copy of something she already owns produced powerful disappointment, perhaps for fear people think you own only one sweater. Blokes don't care.

“All blokes have a favourite shirt, but the tragedy is you can never find a second version of your favourite shirt.”

The point: Easy repeat purchase is an overlooked opportunity, and its appeal differs by audience.

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Why don't pubs sell milk?

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Rory asks why pubs, open from 11am, do not sell milk: given the choice of corner shop or pub for a pint of milk, he would go to the pub, and once inside he would have a pint. He sees pubs partly as a footfall problem. Why not vapes, once cigarette machines brought people in? Some pubcos try Amazon lockers and EV charging; country pub car parks could host food trucks; a pub would be a perfect place for a post office. Like farmers with Airbnbs, office space and farmers' markets, pubs could diversify, because capitalism should be discovery, not efficient provision of what you already do.

“Capitalism isn't the efficient provision of what you already do. It should be a process of discovery.”

The point: Businesses should experiment with new uses of their assets rather than only optimising their existing offer.

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Why finance people run the boards

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The UK has more finance people on boards and in the CEO's chair than anywhere else. Unsurprising, says Rory: under the shareholder value movement, being a CEO means spending 80 per cent of your time explaining to 23-year-olds at Deutsche Bank why your EBITDA is 2 per cent down on projection. Facing nine men in rimless specs, a finance background serves better than a marketing one, because they are not the kind of people who respond to 'never mind that, have you seen my mood board?'. The over-preponderance of that skill base is dangerous.

“They're not the kind of guys who like 'never mind that, but have you seen my mood board'.”

The point: Shareholder-value culture selects for finance-minded leaders, crowding out other ways of seeing value.

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Why Kent's food scene can take risks

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Can a London restaurant take risks if it must make half a million pounds to cover rent and rates before breaking even? Expensive streets tend to have formulaic restaurants. In Kent you can buy a derelict pub, and if your food is good you become a destination, paying little rent or owning it outright. That is the Georgist argument: in London most of the value created by your sweat ends up with the landowner. Country diners also travel further; Rory drove 25 miles to a cute cinema in Hawkhurst.

“Can you take risks if your restaurant has to make half a million pounds in revenue to cover the rates and rent before it even starts to break even?”

The point: High fixed costs suppress experimentation; cheap space enables it.

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Why meetings last an hour

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When Ogilvy was in Canary Wharf, about 40 minutes from anywhere, you couldn't meet anyone for less than an hour and a quarter: having made the journey, giving them 20 minutes felt like mucking them about, so you gave an hour and a half to respect their commitment. Physical meetings are also hard to move: postpone one when someone has travelled to London and you have messed them around. On video you say 'can't do Friday, what about Monday?' and nobody is offended, so you can prioritise far better.

“A meeting doesn't need to last an hour.”

The point: Meeting conventions are distortions created by travel costs, not by the work itself.

Sources (1)

Why nobody wanted pagers before mobiles

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In 1989, if a friend did not show up at the pub, you were stuck. Rory wonders why BT never offered a message number you could ring from a pay phone, or why cheap alphanumeric pagers never caught on with the public. Partly, he thinks, because nobody had had them, nobody realised they wanted them. If the mobile network crashed today, you would go insane to buy a pager, because you now expect connectivity. Recently a barman summoned him to the phone, the first time since 1987.

“Because nobody had had them, nobody realised they wanted them.”

The point: Demand often only appears after people experience a capability.

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Why the John Lewis in Tunbridge Wells failed

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The John Lewis store at the Tunbridge Wells retail park closed. Top-down data on demography and catchment would say such a store cannot work there. Go and look, as in the folksy book Obvious Adams, and you see: it has its own car park, so no browsing after PC World; the sign comes after the car park turning; turning in is only convenient when leaving; the sign is on the narrowest side, making the store look a quarter of its size; and it was called "John Lewis at Home", so about 60 per cent of locals assumed it sold only furniture, which just 5 per cent of people are shopping for at any time.

“If you want to win an argument you use the data you have. If you want to solve a problem you ask what we actually need to know.”

The point: On-the-ground observation reveals causes that aggregate data cannot.

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Why the people in the room were billionaires

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Around 2008 in Napa Valley, Daniel Kahneman presented his findings to a room including Richard Thaler and roughly a quarter of Silicon Valley's unicorn founders, among them Jeff Bezos and Sean Parker. Many realised the implications for their businesses. But the most interesting take came from decision scientist John Kenny, who had an epiphany: behavioural science, and only behavioural science, could explain why the people around him were billionaires. Why Google succeeded rather than Ask Jeeves more often lay in a behavioural explanation than a technological one.

The point: Disproportionate business success is usually better explained by psychology than by technology.

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Wind-tunnel marketing produces identical products

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Rory warns of a wind tunnel effect: if lots of competing companies all optimise against the same metric, they end up producing very similar products, as cars designed in the same wind tunnel converge on the same shape. Data makes firms very un-oblique, whereas John Kay's Obliquity argues the best way to achieve an end may be not to pursue it directly. Models lead to monotonous markets.

“Models lead to monotonous markets.”

The point: Shared metrics drive competitors to the same answer, destroying differentiation.

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Windows 3.0 was Microsoft's last stab

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We always attribute success to a single genius because the victors write the story. Rory notes that Microsoft was on the point of giving up on Windows and punting the whole thing towards OS/2; Windows 3.0, which they admitted was their very last stab, happened to become successful. Luck and happenstance play a far bigger part than successful people want us to believe. People say evolutionary theory does not apply to business because business is intentional, but business is nowhere near as intentional as it pretends.

“Business is not nearly as intentional as people in business like to pretend.”

The point: Success owes more to luck and variation than to design, so business is better understood through evolution than through planning.

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Working in the café signals you're interruptible

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In an office there is no private space for disclosure, and body language at a laptop never makes clear whether someone is busy or bored, so you don't know whom to chat to. Rory hacks this at Ogilvy by working casually in the downstairs café: being there suggests he is not doing anything super urgent, and people come up for a chat. He also proposes screen-free Wednesdays in the office, since a screen is the same at home or in Starbucks, and more junkets.

“You don't need to come into the office to look at this goddamn screen.”

The point: Offices should be designed for the serendipitous contact that screens cannot provide.

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Writers know their productive conditions

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Professional writers each know the conditions under which they can and cannot write. Some demand total silence; some go to a café for background noise; Rory has known writers who cannot produce anything if someone is using an electric drill seven houses away. They optimise their productivity by controlling their environment, and it seems plausible the same holds for other knowledge work, so some autonomy over where and when people work should bring benefits.

“You will make people more productive if you allow them some degree of autonomy to control the environment in which they produce their work.”

The point: Productive environments vary by person, so uniform workplaces suppress output.

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You can't tell the board that

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A consultant friend did months of research for a B2B company and concluded: you are not that good at what you do, but your customer service is fantastic, and that is why your customers stay. His client said he could not present it to the board, because last month they had agreed a strategy to cut customer service costs to raise margins. Rory fears AI will prompt many such conversations. Tech has supplied a narrative for cost cutting for 20 years: spend less and nobody will notice, which is true for a while, right up until it isn't.

“The great thing about tech is we can spend less on things and nobody will notice.”

The point: Organisations cut the very thing that retains customers when strategy is set by cost narratives, not evidence.

Sources (1)

Zoom passwords are like locking every meeting room

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Rory was annoyed when Zoom added default passwords. Video calls were 80 per cent of his working life, so it was like locking every meeting room in the office and making everyone fetch keys from reception. If one meeting in 50 got porn-bombed, he could live with it. He does not blame the IT team: they get no credit for a psychologically astute solution, and all the blame if a chief executive gets porn-bombed. As Gillian Tett's Silos shows, each silo's priorities drift from the whole organisation's.

“This is like locking all the meeting rooms in our office and demanding that we go down to reception for keys.”

The point: Functions that bear only the blame for failure default to maximum restriction, imposing hidden costs on everyone else.

Sources (1)

Society, politics and policy 325

Rising house prices are bad news

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For 30 years the news in Britain and America presented rising property prices as a good-news story, because on average households were getting richer. Rory calls it a monstrous misrepresentation. Look at it as an individual over a lifetime: for most of your adult life your next home is your first or a bigger one, so rising prices just widen the gap you must bridge. Only people planning to downsize, or waiting for their parents to die, really gain. Nobody says 'great news, petrol has gone up, and you have a full tank', or 'bread prices have risen, lucky you've got a loaf'. Economists looked at the aggregate in one period, not at lived experience over time.

“Except for people who are planning to downsize or people waiting for their parents to die, a rise in house prices is basically bad news.”

The point: An aggregate average can call something good news while it harms most individuals across their lives, so judge a change from the individual's view over time.

Variants: Sometimes he explains the bias by who frames the news: journalists and economists over 50 who already own homes, and London MPs whose mortgages were paid as a perk. One telling calls it the worst sin propagated on the British in 50 years.

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Technology arrives as an option and ends as an obligation

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Rory was an early adopter of everything, until he noticed that what started as a glorious option had become an imposition. Parking apps were lovely when they spared him hunting for pound coins at Sevenoaks station; then someone worked out it was cheaper to make everyone pay by app than to maintain machines, and now apps are imposed even in basement car parks with no signal. Station ticket machines and supermarket self-checkouts went the same way once accountants removed the staff. For the last years of his life Rory's father, in his late eighties and without a smartphone, could not really park. And a McDonald's with only screens, he adds, is no longer a McDonald's.

“Great technology arrives as an option and ends up as an obligation.”

The point: Once cost-cutters notice a convenient alternative is cheaper, they make it compulsory, destroying the goodwill it created and excluding people who cannot use it.

Variants: He applies it beyond gadgets: the railway to California meant clients expected you in two days rather than ten, and two incomes went from a nice extra to a requirement for buying a house. He argues it is fine to keep more than one channel, however much that offends the procurement mind.

Sources (7)

Plurality of opportunity, not equality of opportunity

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Rory calls Joseph Fishkin's Bottlenecks one of the most important books of the last 50 years. Fair judgement seems to demand like-for-like comparison, so higher education gives everyone the same exam and ranks them, and the winners feel they deserve their privilege. But applying the same criteria to everyone creates a bottleneck: the order of winners shifts slightly while the number of ways to succeed shrinks, rewarding a few people for one skill at one moment of their lives. Fishkin's answer, which Rory endorses, is to optimise society for plurality of opportunity: many routes for different people to succeed in their own way. Business, to its credit, offers this: a scaffolding firm can make more than a law firm.

“A good society should optimise not for equality of opportunity but plurality of opportunity.”

The point: Multiplying the ladders to success beats ranking everyone on one, because uniform criteria narrow who can win and breed self-entitled winners.

Variants: He applies it to the tax on private schools, which hit music and art schools serving unusual talents, the very definition of plurality of opportunity, and to constant online benchmarking against others, a loser's game.

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The post-dated prescription

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To cut unnecessary antibiotic use, doctors can give a prescription post-dated to Friday: if you still feel ill then, go and get the pills. The patient leaves happy with a bit of paper in hand, but most illnesses run worse, worse, terrible, then a bit better, and once you are on the up your appetite for medicine collapses, so most never cash it in. The obvious alternative, a normal prescription with 'don't take it for three days', fails: people cash it at Boots on the way to the car and, having paid eight pounds, sunk-cost bias makes them take the pills. The delayed version cuts unnecessary use by somewhere between half and two-thirds, for nothing.

“Once you've paid for pills you're going to take them even if you don't need them.”

The point: Re-timing a choice, while still satisfying the need to leave with something tangible, can defuse a bias like sunk cost and change behaviour at scale.

Variants: The figures vary across tellings: only 20 to 30 per cent cash the prescription, or unnecessary use falls by 50 to 65 per cent, 'about a factor of three'.

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A restaurant that serves only what nobody is allergic to

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Rory is happy to forgo nuts on a plane so that nobody goes into anaphylactic shock at 35,000 feet, and it is good that restaurants cater for allergies and offer vegan options. But you cannot run a restaurant that only serves food to which nobody in the world is allergic: vegan, lactose-free, gluten-free, nut-free. That is not a restaurant, it is self-denial on a plate. Yet that is what universal rules increasingly demand of comedy and conversation: calibrate everything to the most easily offended one per cent. Context matters: a comedy club, like a restaurant you chose, is a place where people accept things that would be unacceptable in a job interview.

“That is not a restaurant, that is self-denial on a plate.”

The point: Protecting a vulnerable minority in a specific context is sensible, but universalising the restriction degrades the experience for everyone.

Variants: He applies it to welfare too, arguing a collectivist society cannot defer to tiny outlier groups out of proportion to the other 98 per cent, and says comedy policed by the humourless is like a restaurant critic with no sense of taste.

Sources (4)

Give a tax rebate, not a tax cut

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Rory has told governments for years they are nuts to cut tax rates. Drop a rate from 25 to 22 per cent and you get a brief fillip of gratitude, forgotten within a year or two as people acclimatise. Keep the rate and send everyone a lump-sum rebate each year instead, and people will spend months in the pub discussing what to do with it. Economically identical, emotionally totally different. It is also the perfect moment to prompt philanthropy: it is hard to get Rory to write a £500 cheque to the NHS, but offer a £1,000 rebate and ask how much he would give back, and many people give about 30 per cent.

“Allowing someone to withhold a windfall causes much less pain than actually asking us to pay some money.”

The point: The timing and framing of money flows change how they feel and what people do with them, so a salient lump sum beats an invisible drip.

Variants: He adds a car sticker, 'I gave 50 per cent of my tax rebate back', which puts gentle pressure on prosperous empty-nesters but none on a young family with a battered minivan; and notes a government could skip the rebate in a crisis year without the resentment of a tax rise.

Sources (4)

Pubs should not pay VAT

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Rory backs abolishing VAT, and even rates, on pubs. The council pays for a leisure centre because it is a social asset, and we probably don't tax churches, yet we tax the pub. But a pub is a cooperative venture: every time you spend money there, you are funding a space other people can enjoy at other times. It is collaborative consumption; the richer drinkers buying fancy spirits even subsidise cheaper drinks for others. Citing Paul Dolan, he notes that companionship contributes hugely to wellbeing and longevity, yet health debate barely mentions it. If the seventeenth clothes shop in Sevenoaks closes, it hardly matters; a pub is irreplaceable.

“Every time you spend money in a pub you're actually funding a space that can be enjoyed by other people at other times.”

The point: Some private spending sustains shared social goods, so policy should treat those venues like public amenities rather than tax them like any other shop.

Variants: He extends the argument to cafés, coffee shops and restaurants, and in one telling ties it to economics' neglect of externalities, prompted by a question on effective altruism.

Sources (4)

Roger Martin's lifetime tax-free allowance

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The Canadian thinker Roger Martin proposes turning the tax allowance through 90 degrees. Instead of a tax-free first slice of each year's salary, the first C$250,000 or so you ever earn is tax-free, and only then does the tax system kick in. A Goldman Sachs recruit gets one bonanza year; someone on 40,000 gets five tax-free years to build savings when they most need them. Rory links it to his own inflection point: a few thousand pounds in the bank, enough to replace the shock absorbers if something went wrong. At 58 his adviser suggests pension tax tricks, and he asks where those breaks were when he was 35 with two kids.

“Where were all these tax breaks when I was 35 and had two kids and kind of needed the money?”

The point: Rotating an existing rule's axis, from annual to lifetime, can move the same concession to the point in life where it does most good.

Variants: The threshold varies from C$100,000 to C$250,000, or £200,000. In one telling it sits inside a wider argument that people get rich 'quickly, then slowly', so front-loading money, including student loans spendable on anything, compounds.

Sources (4)

Seven of the twelve reasons to live in London have vanished

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When Rory moved to London in 1988 there were two reasons to be there: to earn money and to spend it. Growing up on the Welsh borders, you travelled to Bristol or Cardiff for hi-fi, 40 miles for an interesting book, and seeing a Korean film in Aberystwyth was hopeless. The internet has made consumption geographically egalitarian: Amazon, Netflix and delivered Michelin meals reach everyone, and Netflix in Aberystwyth is as good as Netflix in London. Cities become more necessary for earning money but less necessary for spending it. Nightclubs, theatre and dating still favour London, but he reckons seven of the twelve reasons have disappeared and nobody has noticed.

“Cities become more and more necessary to earning money but they become less and less necessary to spending it.”

The point: The internet has eroded big cities' consumption advantage, so paying city rents for it makes less sense, though habits of status lag behind.

Variants: One telling adds that Monmouth, which he couldn't wait to leave at 19, now has a Pizza Express; another that a London salary with Rochester housing costs is nirvana, and that with remote work even earning is no longer a good reason.

Sources (4)

Subsidise the charger, not the car

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Rory wanted an electric car but would not order one until he knew he could install a 7kW charger at home. There was a government grant for the charger, but only once he could prove he already owned an electric car. Nobody in the Department for Transport, he concluded, had read Catch-22. His advice: stop subsidising the car so heavily and subsidise the plug. Get everyone with a suburban driveway to pay a few hundred pounds for a charger on the wall, and their next car will be electric, because buying a diesel would make them feel a bit of an idiot. Simply reversing the order of a decision could have an order-of-magnitude effect.

“Don't worry about the incentives, get the order right.”

The point: A small, cheap first commitment creates consistency pressure that drives the big decision, so sequence can matter more than subsidy size.

Variants: The numbers shift between tellings: a £500 charger with a £250 grant, a £300 charger subsidy against £5,000 for the car, or getting people to pay £100 for the charger.

Sources (4)

Thirty years of better goods, soaked up by property

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In more than 30 years in advertising, Rory says, his industry helped deliver better goods and services at stable prices: flat-screen TVs at £700 not £7,000, cheap flights, decent second-hand cars, phones where the richest person and a median earner own the same model. Compared with a 1973 restaurant, Pizza Express is Le Manoir aux Quat'Saisons. Half of him thinks it was wasted, because the gains have been soaked up in a sump by the property market. In 1950s America a home's cars, TV, oven and furniture cost about as much as the house; today almost nobody in Britain owns possessions worth more than their home.

“All of the gains have been soaked up in a sump by the property market.”

The point: Productivity gains in consumer goods are absorbed by rivalrous land prices, so they never reach people's quality of life.

Variants: One telling begins with his father's view that property was underpriced in the 1950s to 70s because cars and washing machines were so expensive; another answers those who sneer that the poor own big TVs. The young, he says, now work to pay for the retirements of the old.

Sources (4)

When Bill Gates walks into a football stadium

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Gary Stevenson is right, Rory says, that most economic models use a single representative agent, an average of everybody, so inequality cannot appear in them. Averages mislead: if Bill Gates walks into a football stadium, everyone in it is suddenly, on average, a multi-millionaire. That shows why wealth inequality is far more extreme than income inequality. Few people earn 20 times the median income, perhaps magic-circle law partners, and they pay enormous tax, so the system already rebalances income. Nobody can shift a stadium's average with a salary. Yet we redistribute earned income aggressively while treating wealth held in asset values as sacrosanct.

“If Bill Gates walks into a football stadium, everybody in the stadium is suddenly a millionaire on average.”

The point: Averages hide fat-tailed distributions, so tax and risk systems that ignore them target the milder inequality and miss the extreme one.

Variants: In a talk on Taleb he uses Wembley to contrast Mediocristan with Extremistan: nobody is tall enough to move the stadium's average height, and banks that assumed bell curves before the crash reported six-sigma events on consecutive days.

Sources (4)

Air conditioning is a heat pump nobody subsidises

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UK heat-pump grants require you to rip out a trusty gas boiler, dig up the lawn and grasp counterintuitive physics: behaviourally very hard. Rory's brother, an astrophysicist, is instead installing air conditioning one room at a time. Few people realise an air-con unit is an air-to-air heat pump: well-known brands, easy installation, five-to-one efficiency, and you keep the boiler for the coldest days. Living in Britain, not Tunisia, he uses it for heating nine times as often as for cooling. The grant for it is zero, because officials fear people will cool their homes, though in Britain that is a few nights a year and may save elderly lives in heatwaves. The perfect has been made the enemy of the good.

“Go and find a solution that's 80% good that people will actually adopt rather than insisting on a solution that's 100% perfect.”

The point: Policy aimed at perfect solutions loses to good-enough options people will actually adopt, so design for ease of uptake, not technical purity.

Variants: One telling adds that engineers need a marketer to look at their flowchart and say: lovely, but nobody will do this.

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America was rich because it had cars

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We assume 1950s America had lots of cars because it was rich. Rory, a car fanatic and a bit of a Georgist, suggests the reverse: it was rich because it had cars. Cars, vans and trucks that go from anywhere to anywhere let people buy affordable housing and start businesses wherever they like. Mass transit does the opposite: buses, trains and Tubes concentrate people in hubs, so build HS2 and the land around Euston becomes massively valuable. The car smears economic activity across the map. A Michelin-level chef who cannot afford London buys a shabby pub in Kent, and if it is good enough, people drive there. East Kent's restaurants thrive on cheap property.

“If you're a good enough pub, people will drive to you.”

The point: Technologies that disperse people weaken landowners' location monopolies and let new businesses start cheaply, and reversing an assumed causation can overturn a policy consensus.

Variants: He calls attempts to demonise road building, particularly by Londoners with lavishly funded public transport, almost malicious, and notes that London rents and rates meant restaurateurs worked for the landlord nine months of the year.

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Do you want your customers to work flexibly?

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Companies debate flexible working only from the point of view of their colleagues. Rory says the more interesting question is: do you want your customers to be able to work flexibly? If people can live where property is cheaper and commute less, they have far more money to spend on your products. For Ogilvy's London staff, roughly half of after-tax income disappears on commuting and accommodation, and under-30s in London outside banking are practically bankrupt. If flexible working makes us 4 per cent less productive but raises disposable income by 8 per cent, that is a win. Free-range work has a lot to commend it over battery-farm work.

“You're entirely debating this from the level of your colleagues. What about your customers?”

The point: Reframing a question from employees to customers shows that flexibility enlarges the discretionary economy most businesses depend on.

Variants: He presents it as a Roger Martin-style new question, contrasting it with the 'Vladimir Putin approach' of digging deeper into a failing model; his own off-peak travel saves about £17 a day.

Sources (3)

Give everyone YouTube Premium

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Rory would cut the higher education budget, or take one per cent of the education budget, and give everybody in Britain YouTube Premium. The government could negotiate for 25 million households and beat the price down to about £7 a month, better value than the licence fee. What could be more public service broadcasting than YouTube? There was an unnoticed inflection point when it stopped being merely watchable and became searchable: 'Wikipedia with video'. Need to de-fluff a tumble dryer? Your first port of call is a random guy from Latvia. Our education system is ludicrously front-loaded; at 59 Rory spends an hour a week watching people solve maths puzzles.

“I would cut the higher education budget and give everybody in Britain access to YouTube Premium.”

The point: Searchable video has become a vast, cheap lifelong education system, and public goals may be met better by funding access to it than by building your own.

Variants: Funding varies: from the education budget, or a £5 addition to the BBC licence fee. One telling adds a condition that everyone watch ten minutes a week of uncontentious factual content, a collective speed awareness course; another notes Dubai gave everyone free ChatGPT.

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Henry Ford's weekend made cars worth owning

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If Rory ran a US travel company he would spend 90 per cent of its lobbying budget on four weeks' guaranteed paid holiday. Only about 40 per cent of Americans have passports, not for lack of interest but lack of time, and leisure spending is more labour-intensive and local than spending on goods. It sounds communist, but the logic came from Henry Ford, who was largely responsible for the two-day weekend. With only Sunday, spent at church, it wasn't worth buying a car. Ford asked not how to make workers work harder but how to create enough leisure that owning a car made sense. Most businesses optimise for a static version of behaviour instead of changing it.

“If people only have a one-day weekend, it's not going to be worth buying a car.”

The point: Businesses can create the norms and habits that generate demand for their products, rather than merely serving existing behaviour.

Variants: One telling adds a rumour, which Rory suspects is a conspiracy theory, that Unilever or P&G invented dress-down Fridays to create an extra weekly load of laundry; another notes that status quo bias stops even left-wing Americans proposing more holiday.

Sources (3)

Law, then bribery, then persuasion, the wrong order

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Government, Rory says, approaches problems in a fixed order. First legislation: forcing people to do something. If that fails, economics: bribing them. Only if both fail does it try persuasion. You don't have to be a libertarian nutter to see that is the wrong way round. All three have a role, but you should start by seeing what people can be persuaded to do, then encourage them financially if necessary, and only then resort to compulsion. Government is dominated by a legal mindset that gives legal solutions higher status, and decision-making puts the deterministic first and creativity last, if at all.

“You don't have to be a libertarian nutter to realise that's probably the wrong way round.”

The point: Persuasion is the cheapest and least coercive lever, so it should be tried first, not last.

Variants: He adds that politics needs a few people who have been photocopier salesmen for 15 years, and that problems should first be recontextualised through psychology, complexity and economics together.

Sources (3)

Nobody has to get on the tulip ladder

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The Dutch tulip boom was an insane, partly mythical spiral in which rising prices brought ever more demand. But it was not a real problem, Rory says, because you could easily opt out: nobody needs a tulip, and you could switch to gladioli. Your parents never told you it was really time to get on the tulip ladder, or you'd have nowhere to live. Housing is different because it is both a use good and an exchange good: everyone now buys property for its investment value, not its use value, yet you still need somewhere to live with enough certainty to raise a family. That makes the property market far worse than tulip mania.

“You didn't get your parents saying it really is time for you to get on the tulip ladder.”

The point: A speculative bubble in a necessity does far more harm than one in a luxury, because people cannot opt out.

Variants: He frames it with Marx's distinction between use value and investment value, and with John Kay's point that the word 'market' covers everything from financial derivatives to baked beans.

Sources (3)

One bin is rubbish

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Asked to raise London's recycling rates, Ogilvy's behavioural science team argued that attitudes to polar bears were beside the point. Their campaign, 'One bin is rubbish', rested on a simple insight: give people two bins and they separate their waste; give them one and they will not. Put Greta Thunberg or George Monbiot in a house with one bin and within a few weeks they would give up; put Jeremy Clarkson in a house with three bins and he would probably sort his rubbish, not least because recyclables do not smell, so that bin can wait. Hundreds of thousands of Londoners took extra bins, and once people recycle, they become more environmentally minded.

“Before we try and change a million minds, is there a way we can actually change one context?”

The point: Change the physical context and behaviour follows, with attitudes coming after, and a one-off structural change keeps paying out for years.

Variants: He jokes that if you want people to recycle paper, sell them a shredder, and argues such sticky, once-only interventions need better ways of valuing their lifetime effect.

Sources (3)

Persuading people to run washing machines at night

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Running washing machines, dishwashers and tumble dryers late at night, when UK power is low-carbon, would ease the peak. An economist would price electricity by time; a politician or lawyer would ban daytime use. Both would cause a backlash and penalise people with perfectly good reasons not to comply: the night-shift worker afraid of leaving a tumble dryer running in an empty house, a common cause of fires, or the flat dweller whose 1.30am spin cycle would wake the neighbours below. Rory would persuade instead, perhaps with a green, amber or red dot on Sky and machines that default to a delay. You don't need everyone to do it, just some people, some of the time.

“The great thing with persuasion is if you have a good reason not to be persuaded, you don't have to change your behaviour.”

The point: Persuasion and norms shift the average while giving people with good reasons an opt-out, which price and law cannot do without backlash.

Variants: He uses it to argue that governments should try persuasion before incentives or law, citing Thaler's quip that Washington is run by lawyers who occasionally take advice from economists.

Sources (3)

Put nuclear power stations on ships

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Nuclear power's great problem, Rory says, is nimbyism. He is fairly pro-nuclear, yet threaten to build a power station next to his flat in Deal and he would fret about property values and irradiated children. His behavioural solution: build small reactors and put them on ships that move between Britain's ports, plug into a big cable, power East Kent for a few months and sail off again. That would barely bother him, his anxiety dropping from about 25 per cent to 1 per cent. Sailors have slept ten feet from reactors in submarines for 40 years with no apparent ill effects. People object far less to something temporary than to a permanent fixture.

“If you make them mobile, there's no NIMBY problem.”

The point: Reframing infrastructure as temporary and mobile can defuse opposition that technical reassurance never will.

Variants: One telling adds that nuclear damaged itself by choosing a word associated with bombs; another suggests a tax benefit for people living near the berth.

Sources (3)

Scent the soap, sell hygiene on romance, not cholera

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Until penicillin, Rory argues, the most important public health work in Britain was probably done not by doctors but by marketers like Lord Leverhulme, and by Unilever and Procter and Gamble, whose soap did much to cut child mortality. His grandfather, a doctor, admitted that before antibiotics medicine mostly consisted of being nice and telling people to wrap up warm. Crucially, the ads never said wash to prevent cholera. They sold cleanliness as status and romance, playing on fear of social stigma: 'often a bridesmaid, never a bride' came from a Listerine ad. Make the soap smell nice and people use it for selfish reasons, with the public benefit as a by-product.

“You can get people to do practically anything good as long as there's a selfish ulterior motive somewhere in the background.”

The point: Attaching a personal benefit to pro-social behaviour spreads it far more effectively than appeals to virtue.

Variants: He applies it to green behaviour: make it a bit selfishly enjoyable and a lot publicly beneficial, since pure self-sacrifice appeals to only about 20 per cent of people; he wants an electric car because they are cool, not for the polar bears.

Sources (3)

Smiley-face speed signs beat speed cameras

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Some roadside signs flash your speed and show a smiling face if you are under the limit and a frowning one if you are over. They cost around a tenth of a speed camera, carry no fine and no penalty points, yet prevent roughly twice as many accidents. To classically trained economists it is baffling that a weird little smiley face changes behaviour more than the threat of a sixty-pound fine and three points. Rory uses it to show a strange disproportionality in problems involving human psychology: appealing to people's better judgement can work better than threatening to punish them, which flatly contradicts conventional economic assumptions.

“Persuasion is often better than compulsion.”

The point: Feedback that appeals to people's better selves can change behaviour more cheaply and effectively than penalties.

Sources (3)

The millionaire worried about the price of lemons

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Near Rory lives a widow alone in a five-bedroom house worth millions, bought decades ago. She has no money to spend and compares the price of lemons in Lidl, while her children worry about replacing their car's shock absorbers. Before her husband died, the couple walked to the Harvester for the cheap pre-6pm dinner, found it did not apply on Fridays, and walked home. Had she held two million in IBM shares she would have sold some to help; a house can only be realised by dying or moving. Why should her children work hard as schoolteachers? The rational move, Rory jokes, is to get into debt, go to Barbados and wait for mum to die.

“You're going to be a millionaire one day, but you're going to be really worried about where you buy lemons.”

The point: Untaxed, illiquid housing wealth leaves people asset-rich and cash-poor, blocks family homes and makes inheritance matter more than work.

Variants: The house's value ranges from £2.2 million to £4.5 million across tellings. He calls such owners 'bed blockers for the property market' and stresses he remains right-wing about earned income.

Sources (3)

The President can't get a better Coke than the bum on the corner

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Rory often cites Andy Warhol's remark about Coca-Cola: all the Cokes are the same and all the Cokes are good, and the President of the United States cannot get a better Coke than the bum on the street corner. We take it for granted, but making something that democratic is a remarkable achievement. Products with a high share of symbolic value, like Coke or denim, are often strikingly egalitarian. Modern electronics are similar: someone on a median income can own the best phone handset in the world, and given £100,000 to spend at Currys PC World, Rory says he would be at a loss what to buy after about £2,000.

“The president of the United States can't get a better Coke than the bum on the corner of the street.”

The point: Mass products built on symbolic value can deliver the same quality to rich and poor alike, which changes what extra money can buy.

Variants: He also uses it to contrast cultures: the American instinct is that anything good should be widely available, the French that anything good must be scarce, mirroring Cialdini's opposite persuasion routes of popularity and scarcity.

Sources (3)

The Sabbath beats the 35-hour week

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Drinking guidelines are set rationally: so many units a week. Behaviourally it is a disaster. It assumes unlimited self-control, asks you to stop when you are already drunk, and your friends will not drink in sync. We all drive at 34 in a 30 limit, yet almost nobody runs a red light at 3am, because a binary rule is visible when broken and easy to keep. France, worried about overwork, capped the week at 35 hours, but how can you tell if a Frenchman has worked more? He doesn't change colour. Thousands of years earlier someone had a better answer: the Sabbath, which everyone observes at the same time. Rory's version for drink: three dry days a week, with your friends.

“How can you tell a Frenchman's been working 35 hours or not? He doesn't change colour.”

The point: Binary, visible, shared rules are easier to keep and self-reinforcing than precise numerical limits, even if they are less mathematically perfect.

Variants: The drinking rule varies: no alcohol Monday to Wednesday, three consecutive dry days, or a dry January. One telling adds that hepatologists quietly give the same advice, and that finding the rule hard is a warning sign of dependency.

Sources (3)

We design steering wheels for hands, but policy for economic man

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When we design a chair, a steering wheel, a kettle or a door handle, we design it for the evolved shape of the human body. Nobody thinks we evolved hands in order to steer cars, and nobody accuses car designers of exploiting our hands. But for anything above the neck, a tax system, a loyalty programme, customer service, we design for a theoretical, mathematised 'economic man' who cares only about his own utility, rather than for the mental equipment evolution actually gave us, including a deep concern for fairness. Rory argues that designing choices around how we evolved to choose is simply good design, though it can also be manipulative.

“We design seats for our evolved asses. We should design loyalty programmes or customer service for our evolved minds.”

The point: Design systems for the mind people actually have, just as we already design objects for the bodies they actually have.

Sources (3)

20mph limits and mini roundabouts

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London's 20mph limits pit child-safety campaigners and cyclists against a huge group of furious drivers. But Rory, following the economist Nicholas Gruen's complaint that economics assumes trade-offs, says the real constraint on London journey times is traffic lights and jams, not cruising speed. We accept sitting at a red light for four minutes, yet 20mph on an empty road feels funereal. His solution: mandate 20mph, then, because slower traffic makes them work better, replace around 40 per cent of traffic lights with mini roundabouts, a self-regulating junction where you only stop when another car is actually there. Slower cars, same journey time: alchemy dissolves the apparent contradiction.

“We can replace 40% of traffic lights with mini roundabouts.”

The point: Apparent either-or conflicts can often be dissolved by redesigning the system so both sides gain.

Variants: He teased Richard Thaler that America, the land of the free, lets the state tell drivers when to stop, and adds that taxi drivers should not get points for 25 in a 20 zone.

Sources (2)

A Club 18-30 holiday with your parents

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On the new Labour government, Rory jokes that voting Labour and then getting a Chancellor from the Bank of England is like going on a Club 18-30 holiday and taking your parents along: it rather defeats the object of the exercise. Many Labour voters, he thinks, feel cheated. If you vote for change and get exactly the same financial paranoia as before, what was the point? He doubts Liz Truss really tanked the economy, but the narrative that any bold move puts you at the bond market's mercy now means nobody tries anything economically interesting.

“It's a bit like going on an 18-30 holiday and taking your parents along. It kind of defeats the object of the whole exercise.”

The point: Signalling caution and continuity disappoints voters who chose change, and fear of markets stifles experiment.

Sources (2)

A degree went from sufficient to necessary

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When Rory read classics at Cambridge in the 1980s, a decent degree from a good university was sufficient for a good first job but not necessary: you could reach well-paid work without one, and some advertising geniuses started in the post room. Expanding higher education made a degree necessary but not sufficient. Employers with too many graduates now weed out anyone with a 2:2; a Cambridge maths graduate with a 2:2 could not get an interview, though Rory told him he was more numerate than 95 per cent of the building. He would cut student loans for people who worked a year or two first, so university need not follow straight on from school.

“It was sufficient but it wasn't necessary. Now it's necessary but not sufficient.”

The point: Credential inflation forces costly education on people who might learn more and fare better at work.

Variants: He suspects he learned as much in his first three years at Ogilvy as at Cambridge, and jokes that the average Harvard dropout is probably richer than the average graduate.

Sources (2)

A Director of Detail and a Ministry of Detail

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Rory sketches a two-by-two of cost against effect. Expensive things with big effects are called strategy, and everyone ambitious gazes at that corner. Expensive things with little effect, he jokes, are consultancy. Cheap things with little effect are trivia. The cheap but powerful quadrant has no name and no owner. So every company needs a Chief Detail Officer and every government a Ministry of Detail: a tiny budget but immense authority, charged with fixing the small irritations everyone else is too grand to bother with. You might boost uptake of a government programme by doubling the benefits, but you would probably get the same effect by redesigning the form in comprehensible English.

“Every corporation should have one, and every government should have a Ministry of Detail.”

The point: Low-cost, high-impact fixes go undone because they carry no status, so give someone senior authority, rather than budget, to own them.

Sources (2)

A kilo of lentils for child vaccinations

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Rory cites the economist Esther Duflo's work on raising child vaccination rates in the developing world. Two tiny things made a big difference: turning vaccination into a social occasion, since mothers feel more confident turning up together than alone, and giving a kilo of lentils to everyone who took part. Take-up rose sharply, which does a lot to reduce poverty. But no senior official asked what they are doing to eradicate world poverty would feel confident saying 'I've got it cracked; it's the lentils.' A UN official with a 200 million budget finds free lentils beneath his dignity and wants something grand and heroic.

“I've got it cracked; it's the lentils.”

The point: Trivial-seeming incentives can solve big problems, but institutions avoid them because small solutions look undignified next to big budgets.

Sources (2)

A menu of green pledges, choose some, not all

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Nobody has translated national carbon targets into individual behaviours, and trying to get everyone to do everything at once never produces change. Rory's proposal: get experts to list a menu of actions, such as going vegetarian for a spell, installing solar panels, buying an electric car or not owning one, washing at night, buying no new clothes for a year, or not flying one year in two, and ask everyone to choose a few. Circumstances differ; you cannot ask a Green MP not to fly to see her son. Religions knew how to design behaviour change with Lent and Ramadan, and Movember and Veganuary copy them. Nobody has tried it.

“Don't ask everybody to do everything all the time. Ask everybody to do something some of the time.”

The point: Flexible, partial commitments chosen to fit people's circumstances achieve more than uniform, absolute demands.

Variants: The menu varies: eight actions with four to choose, or seven small, seven medium and seven big with two of each a year. One telling starts from an Extinction Rebellion student whose sign asked for something she could do.

Sources (2)

Air fryers and Japanese toilets, no going back

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There are things in life, like air fryers and Japanese toilets, that nobody wants until they have them, and then they cannot go back and become evangelists. Rory applies this to things people resist in advance. His young colleagues rightly complain they cannot afford central London, yet suggest Bromley and they would rather stab their eyes with a fork. When he moved out after having twins, he wished he had done it five years earlier: the upside was enormous and the downside fairly trivial. Holidays and maternity leave are the same: nobody in Britain argues for less, yet in America four weeks' paid holiday sounds communist.

“Once you have them, they're air fryers, they're Japanese toilets. Once you have them there's no going back.”

The point: Some goods are only valued after experience, so resistance before adoption is a poor guide to value after it.

Variants: He puts electric cars in the same category.

Sources (2)

Airbnb, a joy in Welsh stables, a nightmare in Barcelona

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Is Airbnb good or bad? Both, says Rory. A Welsh farmer converting some stables nobody would live in into a holiday let, perhaps adding a dishwasher and an EV charger, earns extra income, and Londoners get a weekend away: an absolute joy. In central Barcelona, letting a two-bedroom flat to tourists for 14 or 15 weekends a year earns more than renting it to a local for the whole year, so eventually nobody outside your café speaks Catalan and people wheel luggage across the cobbles. The same platform creates value in one place and destroys it in another, yet our political and legal class prefers artificial consistency to realistic messiness.

“They would prefer artificial consistency to realistic messiness.”

The point: The same policy or platform can be good in one context and harmful in another, so rules should accept context rather than impose uniformity.

Variants: He links it to winner-takes-all effects in tourism, and warns that Airbnb hosts, like Australian wine in the UK, risk getting too greedy too soon.

Sources (2)

Andrew Schulz and the inflatable sheep, owning the insult

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The comedian Andrew Schulz says things that would get Yale fumigated, yet his audiences are about as genuinely diverse as it gets, and they join in the equal-opportunity abuse. He handles race and gender not by pretending differences don't exist but by highlighting the distinctions and taking the piss out of them. In psychology, unlike physics, the opposite of a good idea can be another good idea: the opposite of hiding a difference is making fun of it. English and French friends tease each other and grow fonder; Welsh rugby fans wave inflatable sheep; Wisconsin fans wear giant cheese wedges. Violence at comedy clubs is unbelievably rare.

“The opposite of hiding something is to make fun of it, to make light of it.”

The point: Acknowledging differences playfully may defuse tribal tension better than enforced silence, and deserves testing.

Variants: He asks whether this beats making people pretend not to notice differences and become anxious, and calls humour an evolved hack for managing difference.

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Andy Burnham as a diversity hire

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Rory is cautiously hopeful about Andy Burnham. The fact that he did not read law or PPE and was not born in Surrey, Rory jokes, practically makes him a diversity hire for the office of prime minister. The serious point is that he seems to have a larger Overton window than his predecessors, with northern pragmatism and an openness to ideas the system normally filters out. Burnham's mention of a land value tax, combined with scrapping stamp duty and council tax, is an interesting rebalancing of a tax system too burdensome on work, and better than tinkering with the same six Treasury metrics. We tax work too much and wealth too little.

“That frankly makes him a diversity hire for the office of prime minister.”

The point: Political leadership has become so homogeneous that ordinary backgrounds count as diversity, and outsiders may surface ideas the system usually screens out.

Variants: One telling says Burnham did not go to Oxford; the other that he went to Cambridge but did not study law or PPE. He notes Nigel Lawson, Milton Friedman and Richard Nixon also liked Georgism.

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Bad news is fast, good news is slow

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There is a fundamental negativity bias in news, and one reason, Rory says, is that bad news tends to be fast, sudden and unexpected, while good news tends to be slow. Most improvements do not happen overnight or simultaneously; they arrive gradually and very unequally, as cars were once a rich person's plaything. So they are not newsworthy, and a 24-hour rolling news cycle carries a disproportionate share of bad news. He offers it as one boring but real reason people drift rightwards with age: as you get older you notice more things that have got better, like far better hotels and diminished prejudices.

“Bad news tends to be fast and good news tends to be slow.”

The point: Gradual improvement is structurally invisible to news, which skews public perception towards pessimism.

Variants: In one telling he argues the national conversation needs rebalancing towards the positive; in another he adds Haidt's and Matthew Syed's point that civilisations can collapse quickly, so institutions need protecting.

Sources (2)

British progress doesn't fit the American left-right story

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In America you can plausibly believe most social progress came from Democrats. Rory says that doesn't map onto Britain. Votes for women came under a Conservative government; the NHS was set up by Labour on the recommendations of Beveridge, a Liberal; same-sex marriage was Conservative. Quakers, an Archbishop of Canterbury and The Spectator, nicknamed the 'buggers' bugle', pushed early for decriminalising homosexuality. The Spectator backed the Union in the US Civil War while the Guardian, tied to Manchester cotton, backed the Confederacy. And the Royal Navy's 19th-century effort to suppress the slave trade belongs on the credit side of our national double-entry bookkeeping.

“That deserves adding to the credit balance in our national double-entry bookkeeping.”

The point: Progress has messier, cross-party origins than single-tribe narratives admit, so imported left-right stories distort history.

Variants: He jokes that the real vanguard, the Quakers, cannot demonstrate: 'What do we want? Shh.'

Sources (2)

Bumming around when young is good but unsayable

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Rory insists that waiting long enough to find the right next job is a perfectly honourable state, though we are never allowed to say so. Time spent looking broadens your range of possibilities. A friend who was head of policy for the Liberal Democrats once told him something true but politically unsayable: it is pretty good for people to bum around at the start of their lives working out what they want to do, because they will find their next 20 years more rewarding and be better at it. Put another way, a degree of youth unemployment is a good thing, because you don't want people grabbing the first job available and getting stuck with it.

“Being in between, waiting long enough to find the right next job, is a perfectly honourable state.”

The point: Search time has value: rushing into the first option sacrifices the chance of a much better fit, even if policy language cannot admit it.

Sources (2)

Car tax that comes with rail vouchers

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Rory, pro-car, and his co-author Pete Dyson, a cyclist and triathlete, agreed that the behavioural goal is to widen everyone's repertoire of transport modes, so travel is less habitual and more intelligent. People who never take the train don't make an informed choice; they do what they always do. His idea, knowing half the audience will go insane: raise car tax slightly but give every driver non-transferable rail or public transport vouchers each year, or return half of any road pricing as vouchers, with exceptions for remote areas. There is no single right answer to how to get to Manchester, but trying the options turns a habitual decision into an informed one.

“It's absolutely fine to use the roads, but it's not fine to use the roads to the exclusion of anything else.”

The point: Prompting people to sample alternatives improves choices without dictating them, broadening habits rather than forcing a switch.

Variants: Amounts vary: £100 of vouchers a year, or a £3 tax disc that comes with £400. He notes rail use rose when the web put timetables in the home, since nobody keeps a Bradshaw any more.

Sources (2)

Do you want to win arguments or solve problems?

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The theme of Rory's next book: winning arguments and solving problems are two completely different skill sets. Problem solving is open-minded, oblique and creative; arguing is dogmatic. Yet we select, educate and promote leaders for their ability to win arguments. Arguers fall into purity spirals and become absolutist, and because conflict is interesting, the media focuses on the most polarised part of any issue, which is the hardest to solve. People then argue for whatever most annoys the opposing tribe. Strip out identity, he says, and local politics, which simply solves the problems people actually care about, may matter more than national politics.

“Winning an argument and solving a problem are two completely different skill sets.”

The point: Rewarding argumentative skill selects leaders who polarise rather than solve, and dogma is an enemy of problem-solving.

Variants: He credits Jess Phillips with the point that people dismiss local elections as merely solving the problems people care about.

Sources (2)

Downton Abbey should raise the servants' wages

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Watching Downton Abbey, Rory noticed that the hugely rich family ate food cooked by the same woman downstairs nearly every day. Were he advising them, he would double or triple the servants' wages, so that a decent café, a pub or an Indian restaurant would open in the nearby town and they could get a curry delivered for a change. Much of what makes life good is co-funded by our neighbours' spending. Extreme inequality is not even very good for the very wealthy: they end up surrounded by pointless goods. The ideal is to be comfortably above the local median income, not vastly richer than everyone around you.

“A large part of what makes us happy in life is actually co-funded by our neighbours.”

The point: A broad spread of spending power creates the amenities and variety that even the rich depend on, so concentrated wealth degrades everyone's consumption.

Variants: He opens one telling by asking why Unilever and P&G, which want lots of people with quite a bit of money, do not argue for more redistribution.

Sources (2)

Extroverts bully introverts, never the reverse

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Extroverts can bully introverts, Rory notes, but it never happens the other way round. The people who want to walk another five miles, climb another mountain, go shopping or fly to the meeting in Frankfurt can drag the rest of the group along. Introverts never turn up on skiing holidays saying why don't you stay indoors and read. At Everest base camp nobody says the weather's terrible, why not stay in my tent and read Proust with me? This asymmetry has made working life increasingly introvert-unfriendly. He could have seven productive hours by video-calling the person in Frankfurt instead, and a default virtual option would rebalance things.

“Why don't you stay in the tent and read Proust with me?”

The point: Norms are set by whoever can impose them, so office defaults encode extrovert preferences, and a neutral default can remove a hidden unfairness.

Variants: He half-jokes that introverts should borrow identity politics and call the Frankfurt trip prejudiced against introverts.

Sources (2)

Ford never runs ads insulting Vauxhall drivers

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In 30 years of advertising, Rory says, he has never seen anyone think it a good idea to insult the people you need to win over. Nobody runs Ford ads saying General Motors or Vauxhall drivers are idiots, because those people are your future converts. He applies this to campaigners whose goals he shares. Cycling Mikey, a YouTuber, stands at a London junction filming and reporting motorists who break the rules. Rory supports cycling safety, but the combative, sanctimonious method confirms the stereotype that cyclists are bastards, and Britons dislike vigilantism. A friendly leaflet would probably work better, as his own speed awareness course did.

“Those people are your future converts at some point.”

The point: Persuasion fails when it insults the people it needs to win over; the pleasure of annoying opponents is self-indulgence, not strategy.

Variants: He makes the same point about the woke movement, whose objectives he supports, citing Stephen Fry's view that the tone-deaf left is creating the extreme right.

Sources (2)

Frontiers let people escape the landlord

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The Georgist insight: when economic activity depends on its location, the gains increasingly go to the landowner, not the person doing the work. Tim Harford's example is railway station coffee shops, whose margin flows to Network Rail. You escape land rent either through land value taxes, as Singapore does, or by finding a frontier. Lars Doucet argues growth surged whenever people escaped landowners, via railways or the American move west. Technology creates frontiers too: canals, railways, the car, and potentially a 'Zoom frontier'. So Rory was driven nearly insane by back-to-office mandates: remote work was a new Georgist frontier, a chance to escape the tyranny of location.

“We had the chance at a new frontier, a new Georgist frontier, where people could escape the tyranny of location.”

The point: Whenever value depends on location, landowners capture it, so technologies that free people from location deconcentrate wealth and boost growth.

Variants: One telling adds that the Declaration of Independence was partly a declaration of real-estate self-interest; another that Meta owns the internet's Grand Central Station, stripping margin from the coffee sellers.

Sources (2)

I'd like my postman to have a jet ski

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Historically part of the left was about better material conditions for everybody, not just social justice, and Rory likes that: he would like his postman to have a jet ski. The early Soviet Union even made champagne on the grounds that ordinary people should have good things. And the postman could have one: had housing stayed at its 1980s share of discretionary income, he would. Landlords mop up productivity gains through rising property prices, as Google and Meta soak up businesses' margins. Yet an elite on the left now disdains consumerism and sells scarcity and self-denial, though abundant cheap clean energy is possible. Nobody is selling the optimistic future.

“If you had maintained expenditure on housing as a proportion of discretionary income at the level it was in the 1980s, your postman would have a jet ski.”

The point: Progressive politics loses appeal when it sells self-denial instead of shared abundance, and housing costs are what stand between ordinary workers and that abundance.

Variants: One telling ends with a call to read Henry George and tax land values rather than income, productive work and consumption.

Sources (2)

If Ocado were a charity we'd call them heroes

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Ocado, founded by people from Goldman Sachs and entirely self-interested, is fantastically valuable to the elderly, the bedridden and the disabled because it delivers their groceries. The last three years of Rory's father's life were made better by M&S food delivered to his door. If government cut Meals on Wheels the populace would go bananas; if Ocado went bankrupt nobody would care, because the part of its business that is a social service is invisible behind a profit motive. In British journalism, writing anything positive about a business makes you look in the pocket of PR. If these firms were charities, we would think them heroes.

“If Ocado went bankrupt no one would care, because the part of its business that is actually a social service is kind of invisible.”

The point: Commercial benefits are discounted because they are commercial, so much of the social good business does goes unrecognised.

Variants: He links it to Nassim Taleb's line that free markets have invisible advantages and salient problems, while other systems have salient advantages and invisible problems.

Sources (2)

If parcels spread Covid, postmen would be ill

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Early in the pandemic Rory's family swabbed down parcels, and a doctor friend left Amazon packages in her garage for three or four days. After a few weeks Rory asked: have we noticed lots of postmen getting ill? No. If the virus spread through surfaces, postal workers would have been disproportionately ill, so parcels probably were not the problem. Not proof, but worth watching. He thinks Covid policy went wrong by invoking 'the science', when science dealing with a novel virus is a process of inquiry, not acting only on proven evidence, and everyone was too frightened to ask 'what if?'

“If that were right, postmen would be getting really ill.”

The point: Simple observational reasoning about who would be affected can guide decisions before formal evidence exists.

Variants: In one telling the same reasoning led him to buy an air purifier, though he was told it was pointless because the virus was not airborne; he reasoned that droplets behave like cigarette smoke particles, which float everywhere.

Sources (2)

In central London you don't need a dining room

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It is more or less illegal in most cities to build very small flats, yet in central London you don't want a dining room: you have a hundred restaurants, cafés and Deliveroo. The artists Gilbert and George replaced their kitchen with another sitting room and eat out every day. In New York, likewise, there is little point in a large apartment because the interest is all out of doors and you can watch Netflix anywhere. Rory wonders whether these cities need tiny pod homes where you crash and do your city things, keeping your stuff somewhere with space. Many Londoners would move out if they could keep a bolt hole.

“If I've got a beach, I don't want a dining room.”

The point: Small homes suit places rich in shared amenities, but regulation and investor preferences block a product much of the market wants.

Variants: One telling blames buy-to-let and overseas investors, who favour two-bedroom flats useless for families; another describes a cleverly designed one-room tiny home on a beach.

Sources (2)

Jimmy Carr's gun club

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Comedians often have left-field solutions to social problems. Rather than ban or not ban guns in America, Jimmy Carr proposed that you can own a gun, but only if you belong to a gun club of about 100 members who are held collectively responsible for each other's behaviour. You would not admit someone unless confident of their bona fides, and the group becomes its own police force, giving early warning if someone is 'turning a bit postal'. Rory calls it really clever, borrowing from microlending, where groups jointly liable for a loan repay reliably. It resolves the conflict between individual liberty and collective safety.

“The group is its own internal police force.”

The point: Pairing devolved power with collective responsibility makes groups regulate themselves.

Variants: He suggests government could copy it elsewhere: hand a planning decision to the 100 affected households and see what compromise emerges, which, he jokes, is usually a Waitrose.

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John Major's Cones Hotline

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As Prime Minister, John Major was widely ridiculed for proposing a Cones Hotline, a number for reporting cones closing roads where no work was happening, as if the nation were tyrannised by roving bands of cones. It was considered beneath the dignity of a prime minister who should be talking about interest rates. Rory once argued about it with the FT's political correspondent. Like potholes, it tackled a non-controversial problem that annoyed a great many people all the time, and was scorned only because it was small. He suspects big problems are solved by tinkering with lots of small things until they weirdly go away.

“We're designing a world for people who win arguments, not for people who solve problems.”

The point: Leaders scorn small practical fixes as undignified, though fixing many small irritations may achieve more than grand initiatives.

Sources (2)

Let higher-rate taxpayers drive in bus lanes

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Many great advertising lines pair a downside with an upside: good things come to those who wait, reassuringly expensive, we're number two so we try harder. Tax and speeding tickets make us disproportionately angry because they have no upside story. So, as a thought experiment, Rory suggested higher-rate taxpayers be allowed to drive in bus lanes. The rich happily pay for relative status: a top-of-the-range car may cost 25 per cent more to make than the base model but sell for double, because buyers want leather seats and head-up displays to show off. Government could play the car makers' trick: pay a lot more tax, get certain privileges. The idea was rejected.

“If you created a tiny upside to tax, like you got a badge, we could make ourselves much happier.”

The point: Paying more feels better when it buys recognition or status, a lesson tax systems ignore.

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Let people spend their student loan on a van

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Rory would let young people spend their student loan on anything they like, including but not confined to higher education: start a business, buy a van, travel the world. It would be ridiculous to give someone a £37,000 car loan and insist they spend it on a car when they would rather study; it is equally odd the other way round, since plenty of people's prospects would be better enhanced by a van than a degree. He would mandate keeping four or five thousand pounds in reserve as a shock absorber, because absorbing shocks without credit-card debt transforms a life. A four-figure sum early on may be one of the best ways to raise lifetime wealth.

“There are a load of people whose career prospects would be better enhanced by getting a van than getting a degree.”

The point: Funding young people's experimentation flexibly, with a cash buffer, may create more value than tying support to one prescribed path.

Variants: He also floats giving every 21-year-old a business in their own name, untaxed until they pay themselves, since starting his own business changed how he thinks about money and time.

Sources (2)

Libertarian legislation, flexible working by default

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Rory is a fan of what he calls libertarian legislation, which sounds like a contradiction but simply gives people more choice. Helen Whately, MP for Faversham, proposed that job adverts be assumed to offer flexible working unless the employer states a good reason otherwise. Companies can still hire on fixed terms, but inflexibility stops being the default. She designed it with working mothers and carers in mind and, to her amazement, got as much support from middle-aged men, for selfish reasons. Previously one boss could kill flexible working for 30 people. Once around 20 per cent of people do something, the diffusion curve takes over; law just needs to get it past the initial weirdness.

“There's a whole area of libertarian legislation which sounds like a contradiction in terms but genuinely isn't.”

The point: Changing a legal default shifts behaviour and removes stigma while leaving everyone free to choose otherwise.

Variants: He would also legislate that every significant meeting has a virtual option by default.

Sources (2)

Ninety per cent of journey miles are by car

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One luxury belief that drives Rory insane is the anti-car movement, in which a small number of people who happen to live in central London declare that the future is all about mass transit. Ninety per cent of journey miles in the UK are by car, and there is no changing that without moving everybody into a city centre. The car gives shelter from the elements and a place for luggage. And people who affect to dislike cars rely on shops and Deliveroo running on mopeds and vans: nobody comes to you with your food at 11 at night having travelled by Tube. Disdaining the car, he says, is fundamentally dishonest.

“Nobody comes to you with your food at 11 in the evening having travelled by tube.”

The point: Policy fashions formed by a metropolitan minority ignore how most people live and the road transport the whole economy, critics included, depends on.

Variants: One telling adds an 'epidemic of carlessness' among the young: if you never learn to drive, leaving London becomes almost impossible.

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Nobody buys baked beans the way they buy houses

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The standard explanation for soaring property prices is supply and demand, which Rory says is not wrong but incomplete. Watch how people actually buy: they ask the bank how much they can borrow, add their deposit, and type a figure close to the maximum into Rightmove. We buy nothing else that way. Nobody asks Tesco the most they could theoretically spend on baked beans; if we bought cars like that we would all drive Bugatti Veyrons. When lenders set a norm of three and a half or four and a half times joint income, they thought they were creating a limit and actually created a target. In the 1970s people first asked what sort of house they needed.

“They thought they were creating a limit and they actually created a target.”

The point: A ceiling expressed as a number can become a target, so prices track lending limits and building more homes alone will not fix them.

Sources (2)

Outdoor socialising ends with a Brexit row in the kitchen

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During Covid, Rory suspected outdoor socialising could have been allowed if people were perfectly obedient. But outdoor socialising leads to indoor socialising. In a perfect world people in gardens would stay outside and go home. In reality the patio heater runs out of gas, everyone moves into the conservatory, someone shuts the door, three people use the loo, and the next thing you know there is an argument about Brexit in the kitchen. Exactly that happened at the White House, where a Rose Garden event moved indoors when it got chilly and became a super-spreading event. Scientific advice has to be tempered by insight into what behaviour a rule will really trigger.

“The next thing you know you've got an argument about Brexit in the kitchen.”

The point: Rules must anticipate the knock-on behaviour they actually trigger, not just their direct effect.

Variants: He adds a reverse case: wearing masks outdoors makes it easier to put them on in the supermarket.

Sources (2)

Rising labour costs, a pay rise to everyone else

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One of the first arguments a senior businessman, Stuart Rose, made for Remain was that leaving the EU might push up labour costs. He seemed unaware that most voters hear 'rising labour costs' as 'a pay rise'. It only sounds like a threat if you are on the side of capital, and most people are labour. Rory saw it as typical of a campaign run by overeducated advisers that used economic logic for a patently political project, which made it look greedy rather than principled. Winston Churchill, he notes, did not urge Britain to fight the Second World War to regain access to key export markets.

“To normal people on the street, labour costs rising means a pay rise.”

The point: Arguments framed from the elite's perspective can sound like promises to the audience they are meant to scare, so check how the listener hears your words.

Variants: He makes the same diagnosis of Hillary Clinton's campaign: hyper-rational advisers losing to emotional appeals.

Sources (2)

Save More Tomorrow

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Shlomo Benartzi and Richard Thaler noticed two things: people are more high-minded about future earnings than present ones, and we hate losses but don't much mind reduced gains. Asking a 25-year-old to give up £100 a month now, money they want for a friend's party this week, fails. In Save More Tomorrow you sign up now, can cancel any time, and choose a share, say 20 per cent, of every future pay rise to go into your pension. Nothing happens until you get a raise, so take-home pay never visibly falls. To an economist getting less richer and getting poorer are the same; to the brain they are monumentally different.

“To an economist there is no difference between getting less richer and getting poorer.”

The point: Changing when and how a cost is felt can transform behaviour without changing the underlying economics.

Variants: Results differ by telling: pension saving up over 200 per cent among 25 to 35-year-olds, or twice as many people joining and each saving twice as much.

Sources (2)

Speed limits on dual carriageways fight our flocking instinct

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Rory always felt speed cameras on dual carriageways were somehow wrong, and worked out why. On a single road they make sense. But on a dual carriageway or motorway we drive socially, like a flock of birds, with an instinctive rule that the right-hand lane should go a bit faster than the left: if the car on your left does 54 in a 50, you go slightly faster, because if cars sat side by side nobody could change lanes. A camera pushes everyone to the same speed in both lanes, setting the law against sensible instinct. Laws, he argues, should be written heuristically so that everyone can obey them.

“When we drive on a dual carriageway we actually drive socially, we almost become like flocks of birds.”

The point: Rules that clash with sensible collective instinct breed justified breaches and erode legitimacy, so design laws people can naturally obey.

Variants: In one telling he widens it to Covid rules, praising office managers who let staff share cake and a couple of beers, and noting that ambulances go through red lights.

Sources (2)

Taxes hurt less when you see where they go

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There is clear evidence, Rory says, that people resent paying tax much less when they can see where the money goes, yet it is a Treasury article of faith that revenue is unhypothecated, for it to spend as it likes. He likes the Liberal Democrats' old idea of an extra penny on income tax for the NHS, itemised on your payslip: you pay £56 more this month, but it goes straight to the NHS. Would we mind a speeding fine as much if it said the money funded pothole repair? Economists don't understand that we care where our money goes. Hypothecation may not cut the headline amount, but it cuts the pain of paying.

“To an economist cost or price is a number. To human beings it's a feeling.”

The point: Linking a payment to a visible benefit lowers the psychological cost of paying it, even when the sum is unchanged.

Sources (2)

The Chigwell speed camera that caught Chris Huhne

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Chris Huhne passed his speeding points to his wife and both went to jail. Rory was the only person to write in his defence. The camera that caught him, on the M11 near Chigwell, catches about ten times more drivers than any other in the UK, making roughly £1 million a year. Drivers crossing the M25 at 80 meet a 50 sign and a camera 200 yards on; good drivers will not slam on the anchors, so they pass at 61. When it was installed the accident rate went up because people braked so violently. As Wittgenstein's ruler asks: are you measuring the table with the ruler, or the ruler with the table?

“If you have a speed camera which catches ten times as many people as any other, that's probably a failing with the signage.”

The point: When one checkpoint catches far more people than any other, suspect the design of the system before blaming the individuals.

Variants: In one telling he says he has discussed the camera with Daniel Kahneman.

Sources (2)

The Daily Mail decides who can be taxed

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Your ability to tax a particular group, Rory says, is really determined by whether the Daily Mail can build a sob story around it. High-earning employees, the 10 per cent or so who pay roughly half of income tax, attract no sympathy: it is very hard to write a sob story about someone who works hard in a well-paid job, so they are taxed heavily. But a property tax that forced one widow out of a five-bedroom, seven-figure home would make the front page, so property stays sanctified. Tax policy is designed around what will not cause a scandal in the Mail, not around fairness or economics.

“It's very difficult to write a sob story about someone who works hard in a well-paid job.”

The point: Policy shaped by sympathetic anecdotes systematically burdens groups that generate no sympathy and protects those that do.

Variants: He jokes that we should worry about gerontophiles in government, since nearly all spending, the NHS, housing and the triple lock, redistributes from young to old.

Sources (2)

The data said Arizona; Bill Clinton said Wisconsin

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Hillary Clinton's campaign manager Robby Mook was so enamoured of data that he liked telling people, even Bill Clinton, 'my data disagree with your anecdotes', and mocked him in a Grandpa Simpson voice. Bill, a marketing genius, urged the campaign to reach white working-class voters in the Upper Midwest: you must go to Wisconsin. Hillary never visited; in the final days the data sent her to Arizona instead. Rory, who has been to both states, saw nothing in Wisconsin suggesting it would not vote Trump, who was filling sports halls while Clinton drew sparse crowds. They lost Wisconsin. Afterwards everyone blamed data for Trump's win; nobody asked whether data explained Clinton's loss.

“Big data all comes from the same place: the past.”

The point: Data fetishism can override informed instinct, and models calibrated on the past are blind to a new style or a black swan, yet nobody audits the data when it fails.

Sources (2)

The designated driver, or in Holland, Bob

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The phrase 'designated driver' was invented in marketing, by an agency working for Mothers Against Drunk Driving, which slipped it into the scripts of soap operas and game shows to make it a norm. Suddenly you could explain why you were sitting with a Diet Coke while everyone else was drunk, and a group heading out could simply ask who was the designated driver tonight. A Dutch campaign went further and called the designated driver 'Bob', so the question became the slightly surreal 'who's going to be Bob this evening?' Once a behaviour has a name, Rory says, it becomes both easier to stick to and more contagious.

“Once you've named the behaviour, the behaviour becomes both easier to stick to and more contagious.”

The point: Coining a memorable name turns an awkward behaviour into a recognised social role, so naming can change behaviour without compulsion.

Sources (2)

The NHS as a redistribution from young to old

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To scandalise people, Rory sometimes says the NHS is a monstrous redistribution of wealth from the young to the old: people younger and poorer than him are funding the healthcare of an old, fat bloke like him in ten years' time. Objectively true, he says, yet the argument goes nowhere. He finds it odd that young people are so passionate about the NHS, given how little value they get from it in proportion to what they pay. They might fall off a fixie once or twice, but perhaps 80 per cent of the value people get from the NHS comes in the last six weeks of life. Older people, he suggests, should pay more tax.

“The NHS is a monstrous redistribution of wealth from the young to the old.”

The point: Tax and health systems transfer heavily from young to old in ways rarely questioned, because such trade-offs feel taboo.

Variants: He adds that a parent dying in their fifties with 12-year-old children is far more of a tragedy than one dying when the children are 25.

Sources (2)

The Puerto Rico joke and the Latino vote

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After a comedian at Trump's Madison Square Garden rally made a joke about Puerto Rico, elite commentators assumed Trump had lost the entire Latino vote, because in their worldview all Latinos share a single identity. Have they actually met Latin Americans? Rory asks. It is as absurd as saying an anti-French joke would lose the European vote, or offend the British because they identify as European. Latin Americans are more nationalistic than they are Latino in solidarity, and Cubans or Mexicans may have found the joke hilarious: neighbouring nations often enjoy jibes at each other, the narcissism of small differences.

“That's a bit like saying that if the guy had told an anti-French joke he would have lost the European vote.”

The point: Abstract categories imposed by elites often fail to match how people actually identify, so bloc-based predictions go badly wrong.

Sources (2)

The young pay tax twice

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Consumerism has done such a good job of giving the young goodies their parents never had, bubble tea, eating out, avocados, that it has blinded them to being worse off in most material ways. Rory's daughter effectively pays tax twice: once to the government and again, as rent, to a buy-to-let landlord. When he moved to London in 1988 his rent was about a quarter of his after-tax income. Working, earning and spending are taxed heavily, while buying a house in 1985 and sitting on it, an extractive activity, is barely taxed. He favours taxing wealth over income; a land value tax is beautifully inescapable.

“Paying tax twice, once to the government and then again to a buy-to-let landlord.”

The point: Cheap novelties mask a generation's worsening position, while the tax system favours rent-seeking over productive work.

Variants: One telling adds his puzzlement that Coca-Cola, Unilever and P&G, which need many people able to afford their products, do not campaign for such a tax.

Sources (2)

Those who write algorithms and those who obey them

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Adam Smith warned that a man whose whole life is spent performing a few simple operations 'generally becomes as stupid and ignorant as it is possible for a human creature to become'. Rory notes the idea has resurfaced in Silicon Valley's phrase that in future there will be two kinds of people: those who live above the algorithm and those who live below it. That creates a two-class society: people who design and tweak algorithms and claim their gains, and people whose only function is to obey them. Even accepting Kahneman's point that algorithms often beat human judgement, it is the one thing that terrifies him about his children's future.

“My children's future is either in the five per cent of people who write algorithms or the 95 per cent who spend their lives obeying them.”

The point: Even accurate algorithmic decision-making carries a social cost in power and autonomy, splitting people into designers and the governed.

Sources (2)

To get people walking, campaign for benches

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Rory met the UK's walking tsar, whose job was to get people walking by campaigning for footpaths, rights of way and pedestrianisation. Having just had sciatica, 'a premonition of what it's like to be 20 years older', he asked: what about seating? The tsar looked at him as if he were nuts. Elderly or marginally disabled people do not stop walking for lack of pavement but because 400 yards from home there is nowhere to sit. On British seafronts crowded with memorial benches, people who don't normally walk walk a great deal, because they know they can always sit down. With sciatica, walking from Charing Cross to Soho, Rory had to buy a coffee to rest.

“Half of your job is actually to make it easier for people walking to stop walking.”

The point: The way to encourage a behaviour can be its apparent opposite: making it easy to stop makes people willing to start.

Sources (2)

Today's pensioners didn't fight in the war

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We fetishise the old, Rory says, so one newspaper story about a pensioner forced out by a land value tax would kill it. He understands deference to the generation he grew up with: his great-uncle flew 50 missions as a rear gunner in a Lancaster, and he would never move that man from his home. But today's pensioners did not fight in the Second World War; they grew up in the 60s with good music and good drugs, then took cushy jobs with final salary pensions. They ride on the coat-tails of brand imagery built by the war generation. His mischievous proposal: keep the triple lock, but only for those who pledge to avoid cruises, golf and garden centres.

“They didn't fight in World War Two, they were at the bloody festival.”

The point: Inherited deference to the old outlives the reasons for it and skews policy against the young.

Variants: He calls garden centres 'like bloody fentanyl for pensioners' and would end the triple lock for those under about 70.

Sources (2)

Two incomes went from option to obligation

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When two-income households first appeared they were rolling in it: both partners earned while rent stayed the same, so there were better holidays and better cars. Over time house sellers priced in two salaries, government collected twice the tax and homeowners got rich. Eventually two salaries became necessary just to afford a home, and the typical family lost 35 to 40 hours of discretionary time a week for little real gain. When Rory was a child a working-class family could live on one salary; now a single hospital consultant cannot afford a decent home. He stresses this is not anti-feminist: it is unfair to single people and to those who want time with their children.

“The two-income household went from being an option to an obligation.”

The point: Gains that everyone adopts get competed away into the price of a scarce good, leaving people working more for the same.

Variants: He draws the policy moral that if property is the sponge for all spare income, cutting taxes just makes houses dearer, and credits Elizabeth Warren and Fay Weldon with the same point.

Sources (2)

Two mums, two nurses, two children

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A herd species doing something strange feels far more comfortable doing it with someone it knows. Esther Duflo's work found that mothers in the developing world feel much less nervous about vaccinating their children if, instead of one nurse seeing one mother, two nurses see two mums with their two children together. Take-up is much higher than when people are made to do it one at a time. An economist would model take-up on the cost of the journey and the value of the vaccine, ignoring the emotional cost of doing something scary to your child that others are not doing.

“You can use something you find in a joke and deploy it in something really serious like childhood vaccination.”

The point: Emotional costs left out of economic models can be lowered by tiny design changes, such as letting people act alongside someone they know.

Variants: In one telling he links it to a comedy stunt's 'you can both come in' trick, and to David Ogilvy's line that the best ideas come as jokes.

Sources (2)

Unless your client is the Duke of Westminster

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Georgism, Rory explains, is free-market about productive activity but treats land somewhat like a socialist would: wherever activity depends on location, the gains increasingly go to the landowner as rent. So he found back-to-office mandates offensive: a large company effectively saying it matters more to funnel money to the Duke of Westminster, the great London landlord, or to its own landlord, than to give employees disposable income and freedom. Asking Mark Read about the future of work, he put it as advice: unless your clients are Transport for London or the Duke of Westminster, you might want to encourage flexible working, because it puts more money in everybody's pocket.

“Unless our clients are Transport for London or the Duke of Westminster, we might want to encourage flexible working.”

The point: Location requirements transfer workers' and consumers' gains to landlords and transport operators rather than to the businesses that need customers with money to spend.

Variants: When Read joked that only Rory would be in five days a week, Rory quipped that full-time attendance might be a measure of who is having an extramarital affair.

Sources (2)

When Rory's father let flats, renting was a choice

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Rory's father bought a big house on the Welsh borders cheaply in the 1960s and split it into flats. Most of his tenants could probably have bought a home but chose to rent, for flexibility or maintenance, perhaps after a divorce: a win-win, with the landlord offering an option rather than holding the base of Maslow's hierarchy hostage. In London or Sydney today, a landlord renting to five people is probably renting to five who cannot buy. When Rory's daughter moved to London, he told her she was not moving to London but to 19th-century Russia, as a glorified serf working for her landlord. It is part of why he became a Georgist.

“You're not moving to London, you're moving to 19th-century Russia.”

The point: The same arrangement can be benign or exploitative depending on whether people have alternatives, and rent now matters more than tax to the young.

Variants: He concludes that people talk about moving to low-tax jurisdictions, but for the under-40s a low-rent jurisdiction would matter far more.

Sources (2)

Why all New Zealand lamb is halal

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Rory often cites Nassim Taleb's minority rule. If one group will only accept A and another is happy with A or B, everyone ends up with A. So all New Zealand lamb, and most UK lamb, is halal: non-Muslims, devout Sikhs aside, are not bothered about eating halal food, Muslims will only eat halal, and separate supply chains are costly. Likewise all US soft drinks are kosher. People with a right of veto have power disproportionate to their numbers. Veganism shows it too: once restaurants must offer a vegan option, some meat eaters choose it, so vegans shift overall consumption more than their numbers suggest.

“People who exercise a right of veto have power disproportionate to their numbers.”

The point: When the majority is indifferent, the least flexible minority sets the standard for everyone.

Sources (2)

Woodrow Wilson thought the car would bring socialism

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Most innovations start as status goods or experience goods, because things we already knew we wanted we probably already have. The car began as a rich person's toy for showing off. Rory's distant cousin Woodrow Wilson, as president of Princeton, wrote that nothing was doing more to foster socialism in the United States than the automobile: a naked display of ostentatious wealth that would turn the poor against the rich. Wilson later became an enthusiastic car user. Yet the car is a pretty solid idea: you can travel at 50 miles an hour rather than three. The flat-screen TV likewise began as a blingy status object.

“Nothing is doing more to foster socialism in the United States than the automobile.”

The point: New products often begin as resented status symbols before becoming mainstream, so early hostility is a poor guide to long-run value.

Sources (2)

"There's a lot of it about" on the GP's answerphone

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Logically we go to the doctor to get well; psychologically, 90 per cent of the reason is reassurance. The most reassuring thing a doctor can say is "there's a lot of it about"; the worst is "I've never seen anything like this." It is like a power cut: you go into the street, see all the other lights are off, and relax because it is a shared problem. So Rory suggests a surgery answerphone or on-hold message listing the common viral conditions going round. His hunch is that two-thirds of people would not bother coming in.

“What's the best thing the doctor can ever say to you in terms of reassurance? There's a lot of it about.”

The point: Knowing a problem is common provides reassurance that can replace an expensive intervention.

Sources (1)

'Tax relief' frames tax as a burden

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George Lakoff [?] at Berkeley pointed out that the right enjoys an unfair linguistic advantage: the phrase 'tax relief' implies tax is a burden from which you must be relieved, rather than a civic contribution to collective goods. As a right-of-centre Brit, Rory admits that in Los Angeles he is not sure he would not rather have a slightly worse car and better roads. There is a correct ratio between individual and collective spending.

“I'm not sure I wouldn't rather have a slightly worse car and better roads.”

The point: Language frames policy debates before any argument is made, and individual and collective spending need balancing.

Sources (1)

20 mph limits in exchange for no speed bumps

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Rory says one of the worst things governments do is impose policies without a quid pro quo; no business would make something dearer and give nothing back. He does not oppose 20 mph limits in London, but they would have met far less push-back if the deal had been: we are imposing a 20 mph limit across most of London, but in return we will get rid of the speed bumps. Given a value exchange, people readily frame a change as positive.

“If you give people some sort of value exchange, generally speaking, people don't find it that difficult to frame it as a positive.”

The point: Pairing an unwelcome rule with a visible concession turns imposition into a trade people accept.

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A degree is proof of admission, not accomplishment

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Rory calls it a horrible idea that proof of ability, which should come from lived experience, is now granted 20 years early by a bit of paper that is really proof of admission, not accomplishment. As Bill Burr pointed out about the Harvard admissions bribery scandal, none of the students who bought their way in flunked out. They all graduated.

“A bit of paper which is really proof of admission, not proof of accomplishment.”

The point: Elite degrees certify selection more than learning, so they are weak evidence of ability.

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A diverse panel in front of a homogeneous audience

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Rory says people talk a lot about diverse panels, but he worries that you get a very diverse panel and then look at the audience and it resembles the front row of the Nuremberg rally. If attendees must pay 300 pounds, the audience is a tiny sliver of the geographic, economic and demographic population. Making Nudgestock 2020 free and online, by necessity of the pandemic, reached a far broader audience.

“You occasionally get a very diverse panel and then you look at the audience.”

The point: Diversity on stage means little if price and format keep the audience narrow.

Sources (1)

A good plumber has a better car than a bad doctor

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Having grown up in the 1980s, Rory argues competition over material goods is a relatively harmless form of status competition. One great thing about consumerism is that a really good plumber has a better car than a not very good doctor, which he thinks is good for society. Not all competitive consumption is healthy: women's fashion, someone said, is innovation without improvement. But in cars and televisions, status competition rewards people for being good at what they do rather than for credentials.

“A really good plumber has a better car than a not very good doctor.”

The point: Consumer status competition rewards competence across classes and is less harmful than other status games.

Sources (1)

A government loyalty currency called the zog

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Rory notes points schemes fulfilled Hayek's idea of multiple currencies long before Bitcoin. His craziest idea: a government loyalty programme. Everyone gets an egalitarian annual allocation of a state currency, the zog, to spend on extras such as a second parking permit or a GP home visit, based on willingness to pay rather than ability to pay. More zogs could be bought, at a price proportional to your wealth and earnings. It would be a hybrid of socialism and capitalism: redistribution through a loyalty mechanic.

“That's redistribution of wealth through a loyalty mechanic.”

The point: A parallel currency can ration public services by preference while blunting the advantage of wealth.

Sources (1)

A pension is the worst product psychologists could design

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If you asked the world's best psychologists to design the worst financial product for the human brain, Rory says, they would come up with a pension: pay me £300 every month from age 25 and I might give you something when you are unimaginably old, and you can't touch it. Government tax relief, something like £50 billion a year, exists to overcome a product designed by morons. In Canada a better design starts as an instant-access savings account that tips into medium-term savings, then a pension, while keeping the tax benefits.

“You're using billions of pounds of taxpayers' money to overcome the fact that the product has been designed by morons.”

The point: Redesigning a product around psychology can be cheaper than subsidising people to overcome a bad design.

Sources (1)

A social network where opinions cost a solution

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On the train, Rory had an idea for fixing social media. Quoting Thomas Sowell's line that political activism is a way for useless people to feel important, he notes it is too easy to post opinions without grounding or contribution. His proposed network would require every opinion to be accompanied by a useful solution, and only once the solution earned enough votes would the opinion be published. A cost of entry: to express an opinion, you must first do something useful. He closes the talk claiming his bench idea has paid his dues.

“In order to express an opinion you have to do something useful first.”

The point: Attaching a small cost to expression filters out cheap opinion and rewards contribution.

Sources (1)

A thank-you text for paying rent on time

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An experiment from Singapore, adopted by a UK housing association struggling with late rent, tried various behavioural interventions. One of the most successful was simply texting tenants 'thank you' every time they paid on time, which massively reduced later late payment. It is a tiny reframing: you did a good thing, we are grateful, we noticed. Rory wishes the Exchequer would say the same when he pays his tax.

“You did a good thing, we're grateful to you, we noticed.”

The point: Recognition for compliance can change behaviour more cheaply than penalties for non-compliance.

Sources (1)

A tiny wording change and organ donation

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Rory shows the effect that changing a tiny piece of wording in a sentence has on the number of people across Europe who enrol for organ donation. The engineering mentality would assume such a change must cost millions. What is glorious about marketing is precisely that it is disproportionate: a very small intervention can have huge effects.

“What's beautiful about marketing is precisely that it's disproportionate.”

The point: Small changes to framing or defaults can move behaviour far more than their cost would suggest.

Sources (1)

A warning to Londoners about social capital

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Closing the session at Nudgestock in Deal, Rory offers a warning to any Londoners present: there is something here called social capital. So if someone comes up and speaks to you, it may genuinely be out of friendliness, not a prelude to asking you for money or a random physical attack.

“It may be genuinely out of friendliness, not as a prelude to asking me for money or a random physical attack.”

The point: Social trust varies by place, and city dwellers misread friendliness as threat.

Sources (1)

A £100 parking fine is fair in some cases and outrageous in others

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Overstay your parking and you're fined £100. To a human, fairness varies hugely. Paid for four hours and overstayed ten minutes: not fair. Legal parking would have cost £350: £100 isn't fair either. Repeatedly parking without paying: totally fair. Paying legally a hundred times and forgetting once: not fair. Parking apps have the data to be reasonable, yet we've made the system black-and-white and context-free. No human would enact rules with so little nuance, and we are creating a world where nobody is accountable for automated decisions.

“No human being would enact rules with that degree of lack of nuance, context and flexibility.”

The point: Technology could deliver context-sensitive fairness but is mostly used to impose rigid, unaccountable rules.

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Account people voted remain

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Rory jokes that about 90% of advertising account people voted remain. How surprising, he says, that account people favour large, multi-level, extractive bureaucracies, since that is pretty much their stock in trade. He adds that he is sceptical of naive faith in gains to scale: there are also losses to scale, and most company mergers fail.

“Account people are in favour of large, multi-level, extractive bureaucracies, because it's pretty much your stock in trade.”

The point: Professional self-interest shapes political preferences, and the benefits of scale are routinely overstated.

Sources (1)

Accused of inappropriate behaviour tells you nothing

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Rory dislikes words like uncomfortable, unsafe or inappropriate in public discourse: for hundreds of thousands of years we sorted such things out among ourselves without a dean or a supreme court. Booking speakers, he sometimes finds a Wikipedia page saying accused of inappropriate behaviour. He has no idea whether they are the next Epstein or told a knock-knock joke that two people found unpleasant, or whether someone made it up. The accusation becomes the framing, and the framing becomes the narrative.

“The accusation became the framing and the framing became the narrative.”

The point: Vague labels destroy information, letting framing substitute for facts.

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Affirmative action by the colour green

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Rory thinks the discrimination debate needs to be far more nuanced than gender and ethnicity. He cites Scott Galloway: affirmative action should be based on colour, and the colour is green, meaning money, since a wealthy upbringing confers advantage regardless of other variables. Rory adds that growing up in London is a huge advantage, because you can live at home with your mum while taking up opportunities that someone in idyllic Bourton-on-the-Water cannot easily reach.

“It should be based on colour, and the colour is green.”

The point: Wealth and geography are major, under-discussed sources of unequal opportunity.

Sources (1)

Album politics

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Rory describes the Democrats as being in a hall of mirrors, where people's own opinions have been subordinated to an artificial worldview. A journalist calls it album politics: it is not enough to hold left-wing opinions, you have to buy the entire album, every opinion believed to be of the left, as a package deal. The result is a strange group who think they are normal, much like the insular habitus Gillian Tett spotted among mortgage securitisers before the crash in The Silo Effect.

“You have to buy the entire album, as it were.”

The point: Package-deal ideologies cut groups off from how the wider world thinks.

Sources (1)

Algorithms will put booze ads in AA meetings

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If someone in an agency suggested putting drink posters up at Alcoholics Anonymous meetings, or gambling app ads at Gamblers Anonymous, a few people might laugh but nobody would ever do it: it is disgusting and the reputational risk is too high. An algorithm optimising for returns will discover exactly that tactic without knowing what it is doing, and follow recovering addicts around. Offline the advice was simple: don't go to casinos. Online there is no escape from temptation, and industrial-scale A/B testing hacks us the way viruses evolve to.

“Algorithms are going to find out what people's weak spots are and they're going to follow them around.”

The point: Machine optimisation lacks the ethical and reputational brakes that stop humans exploiting obvious vulnerabilities.

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Amazon would only deliver on Fridays and Sundays

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Rory's one quibble with Noise is that it is too sympathetic to algorithms. For some bizarre reason Amazon's algorithm would only deliver to him on a Friday or Sunday. After three weeks of rewriting his address and repeated calls, he realised the only person able to fix it was in Seattle, whose shares had probably vested, worth $70 million, and the least of his worries was some poor sod in Kent who couldn't get his book next day. You can't sue an algorithm, and power sits far from the person affected.

“The only person with the power to fix this was in Seattle.”

The point: Algorithms may improve decisions but concentrate power and leave individuals with no human to appeal to.

Sources (1)

Americans are too busy in the middle of life

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America's non-working population is concentrated among students and retirees, while people in mid-life are massively too busy. Rory asks whether the American economy would benefit if they had more time and spent more on experiences, leisure and travel, which are labour-intensive, rather than goods, which is what you buy when you have no spare time: better to employ someone in a New Orleans café than import a Chinese gadget that cleans your cappuccino machine. Though a guitar you play a lot is both a good and an experience.

“It's better off having people working in a New Orleans café than importing a Chinese device.”

The point: More leisure can shift spending to labour-intensive local experiences, benefiting both wellbeing and the economy.

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Anti-Veblen goods and the New England display taboo

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Just as there are Veblen goods, valued for being expensive and rare, Rory says there are opposite goods whose value depends on being ubiquitous, classless and minimalist. Shakerism was a proto-environmental movement. Adam Smith described 18th-century New England, where the taboo on visible displays of wealth was so strong that even wealthy farmers could find nothing to spend their money on without displeasing their neighbours. Such social pressures can create more egalitarian societies.

“It's perfectly possible to create these social pressures which lead to more egalitarian societies.”

The point: Social norms can make status come from restraint rather than display.

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Areas of outstanding natural ugliness

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Rory proposes designated areas of outstanding natural ugliness, where you can build whatever you like. Nobody wants a tower block in the Cotswolds, but huge swathes of the UK are nothing special and would be more attractive with housing. France's economy works partly because France has a lot of ugliness: the photographs show châteaux and the Loire, but drive through and every four miles there's a strip mall with a John Deere dealer and a giant garden centre. You can't adopt the same preciousness everywhere.

“There should also be areas of designated outstanding natural ugliness where you're just allowed to build what the hell you like.”

The point: Allowing unlovely development somewhere is the price of growth, and uniform preciousness strangles it.

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Atatürk makes the veil compulsory for prostitutes

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After hearing the potato story, a Turkish man told Rory that Atatürk was an even better marketer. Wanting to discourage the veil to modernise Turkey, a boring leader would simply have banned it and faced huge resistance. Atatürk instead made the veil compulsory for prostitutes. Rory admits he cannot fully verify it but says it does not matter, and offers his own environmental version: make all convicted child molesters drive a Porsche Cayenne.

“Boring people would have just simply banned the veil.”

The point: Changing what a behaviour signals can shift it more effectively than banning it.

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Ban baking programmes for two years

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Rory proposes banning baking programmes for two years because they set the bar too high. A takeaway pizza and a six-pack of beer gives you an evening 95 per cent as enjoyable as some three-tier creation with homemade profiteroles. But because the competitive bar is unrealistically high, the price of failure is too great, and people host dinner parties too rarely. A deliberate lowering of standards in the nation's eating habits would be a social boon.

“They set the bar too high.”

The point: Raising the expected standard of an activity can make people do it less, so lowering the bar can increase a good behaviour.

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Behavioural science stopped me getting angry with opponents

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One unexpected benefit of behavioural science, Rory says, is that he no longer gets angry with people who hold opposing views. Its first lesson is that behaviour and attitudes are heavily formed by context, so other people think differently because they frame things differently or come from different backgrounds. He has amicable conversations right across the political spectrum, including with a friend who is a former Black Panther. It is a strangely inclusive discipline, and wider recognition of difference would have huge benefits.

“The first lesson of behavioural science is our behaviour and our attitudes are heavily formed by the context.”

The point: Seeing behaviour as shaped by context rather than malice makes disagreement less hostile.

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Being a serious drinker takes a lot of time

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Among the parallel causes of the decline in drinking, Rory offers one rarely mentioned: being a serious drinker is time-consuming. In a 1970s working-class household a man came home with the house taken care of, five hours to kill and little on television; the pub took three or four hours a day. Time poverty may explain some of the change, alongside drugs, fear of shaming and shifting norms. In 1980s advertising a non-drinker was at a career disadvantage, because the important stuff happened in the pub. And for 30 years Diet Coke was non-drinkers' only interesting option.

“Being a serious drinker is actually quite time-consuming.”

The point: Behavioural trends often have mundane structural causes, like competition for time, that moral explanations miss.

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Beliefism, supporting parties like football teams

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Paul Dolan calls it beliefism: political opinions become wrapped up in your identity, so acknowledging any contradiction or complexity feels like a threat to who you are. Rory thinks people should not support parties like football teams, though he long did, broadly on the right. He writes for The Spectator yet last week quoted Trotsky, and believes in wealth and inheritance taxes, which drives Telegraph readers practically insane. Taking sides creates a them and us; the alternative is to value contradictions.

“I don't think people should support political parties like football teams.”

The point: Tying beliefs to identity makes people unable to accept the contradictions real problems contain.

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Bird charity, joss sticks and shotgun cartridges side by side

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Soon after leaving London, Rory went to a country fair in Kent and saw three stalls side by side: the Royal Society for the Protection of Birds, a stall selling joss sticks and patchouli oil, and one selling shotgun cartridges. He burst out laughing at whoever had put them together, then noticed they were all chatting and making each other cups of tea. Someone in Bozeman, Montana told him the local co-op is run by hippies with a customer base of pickup-driving men, coexisting happily.

“What idiot put those three businesses together?”

The point: High density and homophily create polarisation that small mixed communities avoid.

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Block anyone whose feed has no kittens

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Rory is happy for people to disagree with him on Twitter, but checks their feed first. If someone has tweeted 97,000 times in five years, they are bonkers. If it is all politics, block them: they are in the grip of a mental derangement. If among the posts about Rishi Sunak there are pictures of their kittens or children, fine. Seeing life entirely through a political lens was once a disease of the hair-shirt left and is just as unhealthy on the right. As Dr Johnson put it, how small, of all that human hearts endure, that part which laws or kings can cause or cure.

“If you go back through their Twitter feed and it's all about politics, just block them.”

The point: A life defined wholly by politics distorts judgement and wellbeing.

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Bond villain overalls four days a week

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Rory worries that standards of appearance have become so high they are ridiculously time-consuming. He once wanted an Ogilvy rule to spare women from worrying about fashion: for four days out of five everyone would wear overalls, like the staff in a James Bond villain's headquarters, who never have to agonise over what to wear. On the fifth day everyone could dress up.

“Those villains didn't have to spend a load of time going, do I wear the blue overalls?”

The point: A uniform removes an arms race in appearance that costs everyone time without making anyone better off.

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Break the stranglehold of lawyers and economists

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Asked how he'd rebrand the Conservatives, Rory says all parties are far too much in thrall to neoliberal economics, which has partial explanatory and little predictive value. He favours a reasonable degree of immigration but says it needs a democratic mandate, whereas decisions are being taken by lawyers and economists: a stranglehold of lawfare and economics. And government interests don't align with individuals': governments want to grow GDP to pay off debt, while citizens care about GDP per head. He'd go heavy on localism and devolution.

“Government would like to grow GDP rather than GDP per head.”

The point: Technocratic metrics serve governments rather than citizens, eroding democratic legitimacy.

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Brexit as the last chance to cancel the villa holiday

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Rory voted remain, but did not think leave voters irrational. They believed, probably correctly, this was their only chance in a lifetime to leave, and many voted on the precautionary principle against what the EU might become by 2032, having been told in the first referendum it was purely a market. Imagine renting a villa with twelve friends and learning nine are planning a Bavarian oompah-music festival: when the deposit is due, your only exit, you pull out. A guaranteed future referendum would probably have won remain.

“People weren't voting to leave the European Union of 2016. They were voting to avoid what it might become.”

The point: Decisions that look irrational often make sense once you see the irreversibility and option value involved.

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Brexit inconveniences me less than roadworks on the A25

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Rory, a content Remain voter, holds the unusual view that Brexit was not that important: it inconveniences him personally less than roadworks on the A25. If it really were dire, he asks, why were the protesters teachers rather than business people? He reads it as an identity problem, with the economic argument called into service by people unwilling to make the emotional case about loss of identity.

“It inconveniences me personally less than road works on the A25.”

The point: Debates framed in economic terms are often really about identity, with economics as the post-rationalisation.

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Bribery is the most expensive persuasion

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On the new UK electric car grant of up to about 3,750 pounds, Rory suspects there is a better way to spend the money. Such briefs go to economists, who assume that if you want people to do something you bribe them, but bribery is the most expensive way to get people to act; try persuasion first. Subsidies can even be counterproductive psychologically, because people assume that if the government needs to pay them to do something, it must be inferior. Many persuasive arguments for EVs are buried under the environmental message.

“Bribing people is the most expensive way of getting people to do something; you should try persuasion first.”

The point: Financial incentives can signal that a product is inferior, so persuasion should come before payment.

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Bring back the pissoir, the hidden price of equality

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Civil servants solve for the average while activists design for the most extreme outlier, Rory says; he risks offending everyone by suggesting some toilets be gender neutral and some not. His mischievous closing campaign: bring back the pissoir. A man needs only a funnel and a drain; women need a full toilet, basin and mirror. The rule that every men's toilet must have a matching women's imposes an invisible price on men, who with prostate glands have far fewer places to go. France had men-only urinals for 200 years.

“The assumption of equality has a price.”

The point: Rigid symmetry rules can impose hidden costs that a variety of solutions would avoid.

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Build where nobody would even notice

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A clever policy idea is to relax planning within a certain distance of railway stations. In Kent, stations like Headcorn are nowhere near the towns they serve; you could build a few thousand homes around them and nobody would care. Near Sevenoaks is New Ash Green [?], about 8,000 people in a wood, built in the 1970s by Span, and most locals have no idea it exists. You could build 10,000 homes in parts of the countryside and, if you bribed five farmers to keep quiet, no one would know.

“If you bribed five farmers to keep quiet about it, no one would even know.”

The point: Much potential housing land is invisible to objectors, so targeting it sidesteps the planning fight.

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Bureaucracy is a form of tyranny

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When the host quotes the line that tyranny is the deliberate removal of nuance, Rory adds that bureaucracy is also a form of tyranny. It involves formulating decision-making policies which are, by definition, nuance-free. You are not allowed to give the benefit of the doubt, or to say 'yes, that's the usual policy, but this time it's different'.

“Bureaucracy is also a form of tyranny.”

The point: Rule-bound systems eliminate the discretion that fair treatment of individual cases requires.

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Bureaucracy's real cost is what never happens

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When people get angry at bureaucracy, the Daily Mail reports that a department spent 50,000 pounds on biscuits. Rory says that is not the real cost, nor are the salaries. The cost is the opportunity cost: all the things that never happen because doing anything is too slow, uncertain and painful. He notes the US abundance movement on the left: in the 1930s the left wanted the postman to afford a hot tub; now it is all about prevention, until economic activity becomes too high-friction to occur.

“It's the number of things which never happen because it's simply too slow, too uncertain, and too painful to do anything.”

The point: Friction's biggest damage is invisible: the projects and businesses that are never started.

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Buying a brand new car makes you a philanthropist

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In a Spectator piece Rory argued that buying a brand new car is philanthropy: three years later you are effectively donating a really nice car to someone poorer than you. Nobody does that with a house; nobody sells a five-bedroom Berkshire place for £200,000 to a couple who need somewhere to live. He calculated that the money saved by taking a child out of private school after VAT could lease a brand-new Rolls-Royce Spectre, which is electric so the benefit-in-kind is trivial, and he is serious that it does more for society.

“If you buy a brand new car, you're actually a philanthropist.”

The point: Some consumption creates positive spillovers for others, while spending on property is largely rivalrous.

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Calls may be recorded for quality purposes

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Rory's example of a silent irritant is the announcement that calls may be recorded for quality control purposes, especially when you are cut off and must hear the whole spiel again. He would like the government simply to email everybody to say: you now understand that all calls may be recorded for quality control purposes, this box is accepted. Everyone would get two hours of their life back.

“Literally you will get two hours of your life back.”

The point: Mandatory repeated disclosures waste enormous collective time that a single acknowledgement could save.

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Centralise sometimes quite a lot, but generally as little as possible

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Discussing Chile's attempt under Allende to build Cybersyn, a computer-run economy, Rory says the question is how far decision-making needs to be centralised. His answer: sometimes quite a lot, but generally as little as possible. He concedes the NHS's centralisation let it run treatment trials at scale during Covid, but it is very difficult to find data at the centre that captures the nuance of what is happening at the coalface.

“Sometimes quite a lot, but generally as little as possible.”

The point: Central data loses local nuance, so centralisation should be the exception.

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Centripetal railways, centrifugal internet

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Technologies pull in different directions. Railways are centripetal, and airports even more so, because they are hub-and-spoke networks where your proximity to the hub determines the value you get. Roads are somewhat centrifugal, since travel is easier outside congestion hotspots. The postal service, the telephone and the internet are centrifugal: your location on the network is irrelevant to the value you derive from it.

The point: Whether a network rewards proximity to a hub shapes where people and businesses locate.

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Charities get a soft ride, businesses get blamed

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Responding to research on how profiting from misfortune taints money, Rory suggests a corollary. Charities and activities branded as pro-social sometimes do real harm, perhaps more harm than good, yet we give them a remarkably soft ride because they are deemed well-intentioned. Businesses, by contrast, have their benefits downgraded and are held to a higher moral account. Original intent seems to matter almost as much as the outcome.

“The original intent matters almost as much as the outcome.”

The point: Perceived intent, not consequences, drives how harshly we judge an organisation's actions.

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Chattel houses, homes two men could carry

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When slavery was abolished in the Caribbean, plantation owners had to pay freed slaves a wage but clawed it back by charging rent for plantation housing. The response was the chattel house, a beautiful two-room wooden house that two men could pick up and carry to the neighbouring plantation if the owner demanded too much ground rent, where they would be welcomed at a third of the price. It separated owning a house from owning land, as US trailer parks do. Rory sees the clawback as a metaphor for how property prices absorb all our economic gains.

“Two men could pick them up and move them onto the adjacent plantation.”

The point: Making housing portable breaks landowners' power to capture people's income as rent.

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Cheap media enabled cheap signalling

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Complaining to The Times once meant finding paper, writing a letter, buying a stamp and waiting days, so complainants were probably genuinely upset. Now anyone can complain from their chair, endlessly, anonymously, and others pile on in a virtue spiral. In a tribe of a few hundred, the serial complainer lost all their friends and people fled when they walked into the pub; online you can be a self-appointed hobby policeman for life. With no cost in effort, skill or money, social media is a paradise for cheap signalling.

“Cheap media enabled cheap signalling.”

The point: When expressing outrage costs nothing, the volume of complaint stops being evidence of real offence.

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Coin a word and you create a norm

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One of the most potent ways to change behaviour is to invent or popularise a word. Moving into a smaller house late in life might feel embarrassing, but call it 'downsizing' and the name creates a norm: the very existence of a word implies it is a normal, common thing to do, which supplies social proof. Rory credits Nassim Taleb's Antifragile with doing exactly this, naming a concept people could not previously express.

“The very fact that there's a word for it means that it's a normal common thing to do.”

The point: Naming a behaviour normalises it and provides social proof for it.

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Comedians should be able to ban activists for being boring

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Asked who he wanted to be at 16, Rory says a comedian such as John Cleese, and he still reveres comedians like John Lloyd, Bill Burr and Dave Chappelle because their way of perceiving the world is so fresh and sophisticated. That is why he opposes activists policing comedy: it lets people with a narrow, unsophisticated way of seeing legislate over people with a nuanced one. In a healthy world it would be the other way round.

“Comedians should be able to ban political activists for being boring, in a healthy world, not the other way around.”

The point: Comedy is a sophisticated form of perception that should not be policed by the humourless.

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Conservatives think like biologists, radicals like engineers

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Following Haidt, Rory sees conservatism as a common-sense reaction to excess, with a valuable function captured by Chesterton's fence: don't remove an institution just because you can't see its purpose, since someone once had a reason to build it and its survival may reflect a function hard to define. Someone described socialism as the erroneous belief you can get things right first time. Good things emerge from the bottom up. A conservative has a biologist's view of the world; the less nuanced left, a Newtonian physicist's or engineer's.

“A conservative, I would say, has a biologist's view of the world.”

The point: Evolved institutions often hold tacit wisdom that top-down redesign destroys.

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Conspiracies are much rarer than cover-ups

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Asking candidates which conspiracy theories they entertain is becoming popular in America. Rory would be wary of someone who believes them all, but equally sceptical of someone who believes none. He finds interesting an Australian theory that after Oswald's first shot, someone in a following car picked up a gun and accidentally shot Kennedy, making it not a conspiracy but a cover-up. Conspiracies need prior cooperation and lasting silence, sometimes against incentives. A cover-up is far more plausible, because everyone in an institution has an incentive to hide their own incompetence.

“Conspiracies are much much rarer than cover-ups.”

The point: Blame aversion makes cock-up plus cover-up a likelier explanation than coordinated plotting.

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Corbyn won because he was the Y among three Xs

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Someone should have realised early that Jeremy Corbyn would win the Labour leadership: there were three near-identical candidates and one distinctive one. Show the brain a screen of Xs with one Y in the middle and it spots the Y in a millisecond. The three Xs split their support while the distinctive one attracted everyone on his part of the spectrum. The beard alone was nearly a winner; had Andy Burnham worn a large beanie hat throughout, he'd probably have won. Tory leadership contests narrow to two before the public vote partly to avoid this.

“If Andy Burnham had been persuaded to wear a large beanie hat throughout the campaign, he probably would have won.”

The point: Distinctiveness beats similarity when choices are crowded, because indistinguishable options split attention and support.

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Could renting feel like a London club?

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A psychological question: how can you make renting feel like owning, with the same pride, autonomy and willingness to invest in improvements? You don't own a London gentlemen's club, but restricted membership gives a real sense of belonging and investment. Some billionaires live in hotels, and in the 1920s and 30s the very rich would rent a country house for three years. It is ridiculous that to feel stable enough to start a family, people must place a large six-figure bet on the property market.

“Are there psychological hacks which could create a kind of halfway house between owning and renting?”

The point: The feelings of ownership could be designed into renting, removing the need for a huge financial gamble.

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Cowperthwaite forbade Hong Kong's economic statistics

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John Cowperthwaite arrived with a brief to improve the Hong Kong economy, decided it was doing perfectly well without him, and adopted a policy of positive non-intervention. He took it to a beautiful extreme: he forbade the collection of economic statistics, fearing that the second statistics existed they would only encourage people to interfere.

The point: Measurement is not neutral: having numbers creates pressure to act on them, sometimes for the worse.

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Cutting Denmark's pension tax break barely changed saving

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Rory admires Raj Chetty's work on what happened when Denmark reduced the tax break for pension saving. Most people simply kept saving as before. A small group did stop, but they were the super-rich with financial advisers, who frankly didn't need government help anyway. Objective incentives pass through a kind of black box before they affect behaviour, and understanding that black box is as much a source of value as changing the incentive.

“Objective reality translates through a kind of black box process before it starts affecting our behaviour.”

The point: Financial incentives often move only a narrow group, while defaults and habits drive everyone else.

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Cyclists, not motorists, got the roads paved

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Car drivers should be a little more deferential to cyclists, Rory says, because it was cyclists who created the pressure to surface roads properly. There was a cycling craze in the 19th century long before cars were a mass form of transport. You can drive a Model T over gravel fairly pleasantly, but cycling on rutted, rough tracks on a boneshaker is unpleasant at best and dangerous at worst. Thanks to cyclists, we have roads in the first place.

“It's thanks to them we have roads in the first place.”

The point: Infrastructure often owes its origin to groups later seen as marginal.

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Distrust of intuition began as Victorian sexism

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Rory had read that much of the distrust of intuition, an incredibly valuable mental skill that entrepreneurs increasingly use, comes from an old sexist idea in 19th-century psychology: that men were rational and women intuitive, so intuition was considered less reliable. He argues financial advice, once overwhelmingly male, needs to 'feminise', because conversations about money as money are boring, while conversations about what you want out of life are fundamentally interesting.

“The undervaluing of intuition arose from a form of 19th-century sexism.”

The point: Our low regard for intuition has a prejudiced origin, not an evidential one.

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Do not waste goodwill on unplugging phone chargers

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Rory thinks sustainability works better as a support point than a lead point. He mentions Steven Pinker regretting a campaign urging students to unplug chargers, which made about as much difference to emissions as a drop in the Pacific while burning people's reserves of good intention. Effort should go where it counts: if John Lewis started selling solar panels, five times as many people would buy them. Purpose matters for employees, but he does not want his sausages to hold strong opinions on geopolitics.

“If John Lewis started selling solar panels, five times as many people would buy them.”

The point: Goodwill is a scarce resource, so brands should apply it where trust can actually change behaviour.

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Drink-driving, from imposed to adopted

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The breathalyser and licence bans sort of worked, but many of Rory's parents' generation thought being caught over the limit merely a bit naughty. His parents wouldn't drive drunk and would encourage a tipsy guest to stay, but wouldn't grab their car keys. His children's generation would wrestle a friend to the ground before letting them drive over the limit. That is what happens when a rule makes its way from being imposed to being adopted. Persuasion is slower than legislation, but it's what changes behaviour.

“Persuasion is slower than legislation but it's persuasion that actually makes things work.”

The point: Lasting behaviour change comes when norms are internalised, not merely enforced.

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E-cigarettes worked because they weren't prescribed

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An academic at University College London observed that had e-cigarettes been introduced as a beneficial product with government and charity backing, they would never have taken off. Rory holds up a bottle of e-liquid from San Diego hipsters made by 'Suicide Bunny' in crazy packaging. A philanthropic version would have come in green and white pharmaceutical packaging in a set dose, and no smoker would have felt remotely macho adopting it. This one works because it is something chosen, not prescribed. Ostensibly well-intentioned framing can be the problem.

“This is something I've chosen, it's not something I've been prescribed.”

The point: Public-good products often spread faster when they look rebellious and self-chosen rather than worthy and medical.

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Early arrivals in Japan park furthest away

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Rory heard at a dinner that flashing hazard lights to say thank you originated in hyper-polite Japan. Even sweeter: people who arrive first at work in Japan park furthest from the door, reasoning that those arriving later may be in more of a hurry and need the closer spaces. So early arrivals deliberately park 100 yards away. He calls it the sweetest thing he has ever heard.

“People will arrive really early at their Japanese place of work and deliberately park 100 yards away from the door.”

The point: Social conventions can allocate resources by need rather than first come, first served.

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Early cinema audiences ducked from the train

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In the silent era, if the screen showed a train rushing towards the audience or a man firing a gun outwards, people ducked below their seats in terror. Nobody would now. Rory suggests the 1930s were a unique moment of mass access to mass media, radio, newsreels and newspapers all controlled by the state, before people had acquired immunity to it. With no dissent and a conformist society, moving pictures were disproportionately potent and audiences extraordinarily susceptible to manipulation.

“People hadn't yet acquired a degree of immunity to communication.”

The point: New media are most persuasive before audiences develop scepticism towards them.

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Elite overproduction and revolution

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Rory describes cliodynamics, named after Clio, the muse of history, which treats history as a complex physical system. Peter Turchin argues civilisations reach turmoil partly through elite overproduction: more people expect a great job than there are powerful jobs. Those who miss the cut become revolutionary, because anything that disrupts the status quo diminishes those who got the elite jobs. That, Turchin would argue, is why revolutionary movements are often led by the upper middle class, not the poorest.

The point: Frustrated expectations among the educated can destabilise societies more than poverty does.

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Energy labels worked by shaming the retailers

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Even the libertarian Adam Smith Institute never opposed labelling, since you are free to ignore it. Energy-efficiency labels on appliances made consumers weigh efficiency, previously dwarfed by looks or matching the kitchen. But the secondary effect mattered too: retailers like John Lewis and Currys told manufacturers that within 12 months everything must be B or above, because selling lower grades made them look bad. Likewise McDonald's calorie boards may work less by deterring diners than by making the double chocolate muffin, its most calorific item, look so absurd that McDonald's reformulates.

“It actually worked at two levels.”

The point: Disclosure often changes supplier behaviour more than consumer behaviour, because it exposes the seller.

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Everest climbers are heroes, drug takers are villains

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Another of Rory's provocations: people who take drugs, a health risk, are absolutely excoriated, while people who climb Everest are treated as heroes, even though climbing Everest is undoubtedly more dangerous. Our moral judgements about risk-taking track something other than the risk itself. He ends the session joking that if you are thinking of climbing Everest, consider drugs instead.

The point: Moral judgements about risky behaviour are driven by status and narrative, not by the size of the risk.

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Every major technology is visible from the air

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Canals, railways, telecommunications: every major technology's effects are visible from the air. Railways created suburbia. So what is the point of everything since 1994, the trillions spent, the billionaires and bankruptcies, if it doesn't change how people live and work? Peter Thiel notes progress in bits, not atoms; Rory's grandmother, born in 1900, saw more physical innovation than his children will. If so much is invested in digital, people may reasonably demand a lifestyle dividend. The real way to solve the property crisis is to make suburbia cool.

“The real way to solve the property crisis is to make suburbia cool.”

The point: Digital technology should be judged by whether it reshapes where and how people live, as the railways did.

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Everything important takes ages, smallpox and electricity

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Everything important takes ages. Lady Mary Wortley Montagu's real achievement with smallpox variolation was marketing, not discovery: she won by persuading the royal family to variolate their children, and everyone followed. Edward Jenner's better cowpox vaccine took him 15 or 20 years of changing minds, which is inherently slow because new behaviours have neither habit nor social proof behind them, as the Bass diffusion curve shows. Even electrifying British and Irish homes needed a marketing budget and took 30 to 40 years.

“Changing people's minds is inherently slow, you cannot rush it.”

The point: Adoption of good ideas is a slow marketing challenge, because early on they lack habit and social proof.

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First past the post gives a reliable purge

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First past the post has an advantage: a fairly reliable purge every now and then, a hard reset when a party has been in power too long, plus a named representative you can remove. The Greeks, who invented democracy, use proportional representation with a seat bonus for the largest party to make majorities likelier. Rory, in safe Conservative Sevenoaks, might vote Conservative while holding his nose, reasoning that a vast Labour majority would be unruly and implode after one term. He adds that voting on reality TV and Eurovision has made votes more symbolic than instrumental.

“It's probably pretty good to have a purgative function.”

The point: Electoral systems can be judged by how well they correct excess, not just by proportionality.

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Flexible working as a 50 per cent pay rise

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Rory is a Georgist: where economic value depends on colocation, most of the gains go not to workers or entrepreneurs but to landlords. Unless your client is Transport for London or the Duke of Westminster, advertisers like Unilever and Diageo benefit if people spend less on transport and housing and more on other things. He told a Sheffield-based colleague to drop her London lease and come down off-peak two days a fortnight: roughly a 30 per cent post-tax, 50 per cent pre-tax pay rise. Conservatives obsess about tax rates, but what about money people must spend that they don't want to?

“What about all the money people have to spend that they don't want to spend?”

The point: Cutting forced costs like commuting and rent can be worth more than a pay rise or tax cut.

Sources (1)

Focus groups measure knee-jerk reactions to soundbites

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Politics borrowed the focus group from advertising, Rory notes, but it is not a good way to learn what people can be persuaded to do or believe. It is very good at getting a knee-jerk response to a soundbite, which suits researching a soap powder ad, where snap decisions on little information are exactly what matter. Politics optimised for focus groups produces snappy phrases rather than deep problem-solving or new consensus. He favours citizens' assemblies, not to enact laws, but as a vastly better form of market research.

“The focus group is not a very good way of determining what people can be persuaded to do, believe, think.”

The point: Research methods built for snap consumer choices mislead when applied to complex public decisions.

Sources (1)

From the weirdo with a mobile to the weirdo without one

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Illustrating how herd effects tip, Rory says anyone over 50 will remember the point in their life when they went from being the weirdo with a mobile phone to being the weirdo who had not got one. The same behaviour flipped from strange to obligatory as adoption crossed a threshold.

“You went from being the weirdo with a mobile phone to the weirdo who hasn't got a mobile phone.”

The point: Social norms flip once adoption crosses a threshold, reversing who seems odd.

Sources (1)

Gen Z do not drink? Tell that to the night bus

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Told that young people do not go to pubs because they do not drink, Rory warns against what his friend Rob Henderson calls luxury beliefs: fashionable ideas repeated at dinner parties until universally believed. The idea that Gen Z drink much less has been massively exaggerated; if true, his daughter would not have woken up on a night bus at Heathrow the other week. Such tropes become dominant, like sourdough: nice in moderation, but there is far too much of it.

“If that were true, my daughter wouldn't have woken up on a night bus at Heathrow airport the other week.”

The point: Fashionable claims spread by repetition, not evidence, and should be tested against lived reality.

Sources (1)

Get 25 per cent over the line and oddity becomes norm

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An economist says if people aren't using video calls they've found it's crap, so no intervention is needed. A complexity theorist says we may be stuck in a social equilibrium that is hard to break; get 20 or 25 per cent over the line, as in virology, and a new equilibrium forms where an oddity becomes a norm. The same holds for solar panels and electric cars. Imagine one awkward senior figure insisting on joining an Ogilvy board meeting virtually: a camera goes in, five others drop their flights, and the norm may settle at 50/50.

“What starts as an oddity becomes a norm.”

The point: Low adoption may reflect a stuck equilibrium rather than low value, and a small push can tip it.

Sources (1)

Get Jony Ive to design the coolest trailer

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Rory proposes disrupting the property market by separating home ownership from land. Ask a designer like Jony Ive or Marc Newson to create the coolest mobile housing possible, and legislate so people can own a home without owning the land beneath it. He would happily live in a two-bedroom unit in a country pub car park. In America a nice new trailer costs about 80,000 dollars; there is even a smart trailer park in Malibu. Perhaps grant planning permission for three years only, with neighbours paid something for it.

“I'd be well up for living in a pub car park.”

The point: Decoupling the dwelling from the land could make housing cheap without new land.

Sources (1)

Go so far over the line that the line stops mattering

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Rory says politicians are trained never to cross the line, because one remark over it becomes an amplified story. The line has become such a constraint that the only solution may be the Trump one: occasionally go so far over the line that when you later cross it a little, it is no longer newsworthy. He suggests the Prime Minister could borrow this, gaining immediate freedom to cross the line judiciously.

“You occasionally go so far over the line that when you subsequently cross the line a bit, it's no longer newsworthy.”

The point: Recalibrating expectations through outspokenness buys latitude that strict conformity never earns.

Sources (1)

Good intentions, wrong tone, reactance

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There is intention and there is outcome, and the ad industry should understand the gap. Much wokeism is well intentioned; Rory even defends trigger warnings, recalling a friend who left a film in tears because, as a child, he had shot a friend in the eye with an air rifle. The intention not to upset people underlies traditional politeness. But people in a bubble don't understand reactance: tell people to adopt a behaviour they'd happily adopt in the wrong tone and they develop a counter-reaction. Workplace DEI has often implied staff don't deserve to be there, which cynically suits employers facing pay demands.

“If you tell them to do it in the wrong tone of voice they will actually develop a counter.”

The point: Patronising or moralising delivery provokes resistance even to behaviours people would otherwise accept.

Sources (1)

Government as a car with constant niggles

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Carmakers know it is better to sell a car whose transmission fails after 20,000 uneventful miles than one with constant squeaks and yellow lights coming on for no reason. Government has gone from policeman to traffic warden: fixed speed cameras, 20 mph limits, speed bumps, three points for 24 mph at 1am, stupid roadworks, poor mobile coverage from planning rules. Remove the 10 or 15 most irritating, the yellow dashboard lights, and you are nearly re-elected. Quibble.org.uk was loosely inspired by his Sweat the Small Stuff talk and its Ministry of Detail.

“Government has gone from being a policeman to being a traffic warden.”

The point: Frequent small irritations damage satisfaction more than rare big failures, so purge them.

Sources (1)

Government efficiency versus government effectiveness

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We default to solving problems by adding rather than removing things. When Elon Musk was put in charge of government efficiency, Nassim [?] rightly said it should be effectiveness: you can do very efficiently things you should not be doing at all, as Peter Drucker put it. Stafford Beer said the purpose of a system is what it does. We scrutinise selfish private-sector motives hard but suspend scepticism for well-intentioned bureaucracy, whose motives and consequences may be far less benign. We rarely ask what we should simply stop doing.

“It's perfectly possible to do things very efficiently which you shouldn't be doing at all.”

The point: Efficiency is worthless without first asking whether the activity should exist; subtraction is underused.

Sources (1)

Government has press relations, not marketing

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Asked for advice to the Prime Minister, Rory says the problem with government is that it has no marketing function. It has a communications function and an obsessive press relations function. What it needs is to find out, through deliberative democracy, what would make people happier, which might be banal and unfashionable things such as potholes, because most people live their lives locally. He would stop caring so much about the media.

“The problem with government is it doesn't have a marketing function. It has a communications function.”

The point: Governments manage how they look instead of discovering what would actually improve citizens' lives.

Sources (1)

Governments mistook the sheepskin premium for causation

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Government assumed it could scale up the sheepskin premium: graduates earn more, so more degrees mean more value. It took correlation for causation. Basic literacy and early education clearly make people employable, but it is doubtful that three or four years at Harvard produce a great investment banker. It may be reversed: banks did not know whom to hire and needed to look meritocratic rather than nepotistic, so they hired prestige degrees.

The point: Credentials can be a hiring alibi rather than a cause of productivity.

Sources (1)

Gradually, then suddenly

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We talk about things like Brexit because they notionally happen quickly, but the really important changes happen slowly, as in Hemingway's line about going bankrupt: gradually, then suddenly. In Rory's childhood you learned French because the French were next door; now English so dominates that someone can live in Amsterdam for 11 years without a word of Dutch. Provincial cities were grim in 1989 and are now as good as London. Attitudes to drink-driving and same-sex marriage changed the same way. Slow changes do not make the news, but founders must understand them.

“The really important changes happen slowly.”

The point: The most significant shifts are gradual, so they are missed by those watching only the news.

Sources (1)

Green behaviour is the opposite of a hot tub

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Rory once said many environmentally friendly behaviours are the opposite of a hot tub. Everybody pretends to want green behaviours but doesn't. Hot tubs are the reverse: everybody secretly wants one, who wouldn't, with the money, want to sit outside in hot bubbly water? But people are too embarrassed to buy one because it looks a bit pervy. A huge amount of economic activity is constrained simply by how it will look.

“Everybody pretends to want them but they don't. Hot tubs are the opposite: everybody secretly wants a hot tub but they're too embarrassed to buy one.”

The point: Stated and real preferences diverge in both directions, driven by social image.

Sources (1)

Hairdressers criticise each other, lawyers don't

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Strange beliefs strengthen when people think information is being withheld or a subject made unsayable. In medicine and law there is a strong professional omertà: very senior lawyers tell Rory privately that the Letby conviction is unsound, but won't say so, because the legal establishment wants to preserve a facade of perfectibility. In hairdressing, by contrast, your next hairdresser will happily say whoever cut your hair last did a terrible job. Reasonable suspicion is often more about cover-up than conspiracy.

“If you get a bad haircut, your next hairdresser will tell you: God, that was terrible.”

The point: Professions that suppress internal dissent to protect trust end up breeding distrust.

Sources (1)

Honeymoon in Australia, then rent a house

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Rory's parents-in-law could not understand a young couple who honeymooned in Australia but planned to rent. He explained that at their age you could buy a house for next to nothing, while Australia was unthinkable. His grandfather, a well-off doctor, never flew long-haul; Rory first did at 27, to Minneapolis, and found it thrilling. A friend's parents paid the price of a car each year to fly him home to Barbados. Now his kids lose count of long-haul flights but cannot afford houses. Gen Z behaviour is largely different economics.

“An awful lot of Gen Z behaviour is just driven by finding themselves in completely different economic conditions.”

The point: Generational differences often reflect changed prices and context, not changed people.

Sources (1)

How Rory would have paid for HS2

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Rory would have bought several blocks of 20,000 acres of farmland along the route between London, Birmingham and Manchester, granted himself planning permission for housing, and built a station at the centre of each. Agricultural land is worth a few thousand pounds an acre; residential land near a fast link to Euston perhaps a million or more. Do it three times and the railway pays for itself. Instead we gift planning permission worth millions to individuals while neighbours get only disruption. Kent County Council asked to experiment with selling planning permission; the Treasury had a fit.

“You have government conferring millions of pounds of wealth on people through the planning system without recouping any of it.”

The point: Capturing the land value that public decisions create could fund infrastructure.

Sources (1)

I would have had a conversation with Hitler

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When Nudgestock invited controversial figures such as Dominic Cummings, there was an extraordinary pushback implying you are contaminated by contact with controversial people, which Rory finds a strange modern phenomenon. He would have had a conversation with Hitler, he says; the only reason to avoid it would be if talking to him made him worse. Conversation with people of differing opinions is generally a moderating force, while ostracism drives people on right and left insane and makes them far worse.

“Conversation with people who have differing opinions is generally a moderating force.”

The point: Ostracism radicalises, while engagement tends to moderate.

Sources (1)

If religion were a drug, we'd add it to tap water

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Rory, a doubtful Anglican married to a priest, is reluctant to call religion nonsense. A 1996 Heritage survey linked churchgoing with stabler marriages, escape from poverty, protection against suicide, drug abuse and crime, better mental health, recovery from addiction and longer life. Religion feels incompatible with modern life because it seems to involve delusional beliefs, but if those results came from a drug trial we would want to put it in the water supply. Not knowing why something works should not blind us to the fact that it does.

“If the above results came from a trial of a new drug, we would want to add it to tap water.”

The point: Judge practices by their effects rather than by whether their rationale sounds sensible.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

If you cannot write a great line for it, the product failed

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Rory voted Remain but thought Remainers were deranged in their confidence and barely campaigned; he himself allowed a 30 per cent chance that leaving would turn out better. Speaking as an advertising man, he argues that if something has existed for 30 years and nobody can write a great song or a great line saying why it is brilliant, while the other side has take back control, that is a failure of the product rather than of the marketing.

“If you cannot write a great line that sums up why it is brilliant, that shows a failure of the product, not the marketing.”

The point: An inability to articulate a compelling case often reveals a weakness in the offer itself.

Sources (1)

If you don't downsize by 73, you never will

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Part of the housing problem is allocation: too many empty nesters. On his brother's Buckinghamshire street, every three- and four-bedroom house but one is occupied by a single person or a couple whose children have left. A financial adviser told Rory that if you don't downsize by about 72 or 73, you never will. So government could offer a stamp duty break to anyone who downsizes before 74: a deadline that says move now or it will cost you later.

“If you don't downsize before you're about 72 or 73, you'll never do it.”

The point: A deadline aligned with a known behavioural window can unlock under-used housing more cheaply than building.

Sources (1)

If you warned of every danger, there'd be no lakes

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Rory cites Philip K. Howard: law and regulation have intruded into matters once left to human judgement, so people fear subjective decisions; you can't get fired for following the rules. Life is a kaleidoscope where no situation recurs exactly, so universal rules fail. Someone demanded street trees be cut down because a grandchild was allergic to their nuts: accept that and nobody can grow a tree. A drunk trespasser who dived into a shallow pond sued; the law lords said the logic would leave no lakes, swings or playgrounds.

“The legal solution has become the default when it should in fact be the last resort.”

The point: Rules that make sense case by case set precedents with absurd second-order effects, crowding out judgement.

Sources (1)

In Arizona, dry your clothes outside

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Rory's environmental tip: run appliances when clean electricity is abundant; change when, not what, you do. Get a heat-pump dryer. Better still, Americans in Arizona should dry clothes outside. In Fuerteventura he had a washing machine but no dryer; washing on the line was ready in 40 minutes. What stops people is social stigma, probably spread by housing association rules that ban washing lines, until the norm takes hold. He compares American housing associations and New York co-op boards to living under an intrusive regime.

“You don't have to change what you do. You just have to change when you do it.”

The point: Many wasteful behaviours persist because of social norms and petty rules, not practicality.

Sources (1)

In Scandinavia I'd turn right, in Texas I'd turn left

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Ask people on the left where they would like to live and they say Denmark, Canada or Sweden; on the right, Australia or Texas. Rory could live happily in all of them. If he lived in Scandinavia he would probably become a bit more right-wing, and in Texas he would probably go on about why you need socialised medicine. Citing Jonathan Haidt, he notes that much political identity is reactive.

“If I lived in Texas I'd probably go on about why you need socialised medicine.”

The point: Political positions are often counter-cultural reactions to surroundings rather than fixed beliefs.

Sources (1)

In Wisconsin rich people drive their neighbours to the airport

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Rory admires the American Midwest and Canada as rare places where financial capital has not destroyed social capital. In Wisconsin he saw people with five-car garages and five-bedroom houses driving neighbours to the airport, a 50-dollar job. In London, people he has known since he was five would tell him to get a cab. An anthropologist friend argues that megacities strip out opportunities for reciprocal altruism, leaving a frustrated altruistic urge. Rory adds that a very large city, like a desk, is a dangerous place from which to understand human behaviour, and ad agencies are full of megacity dwellers.

“A very large city is a dangerous place from which to attempt to understand human behaviour.”

The point: Scale and wealth in big cities erode everyday reciprocity, and city-based professionals misread everyone else.

Sources (1)

Irish politics in a sentence, the pint test

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The classic British political test is which politician you would most like to go for a pint with: Nigel Farage scores high, Ken Clarke was the classic. Someone once summed up Irish politics for Rory in a sentence: Fine Gael are a bit more competent, but you would rather have a pint with Fianna Fáil. It is hard to fake, he suspects.

“Fine Gael are a bit more competent, but you'd rather have a pint with Fianna Fáil.”

The point: Voters weigh likeability and warmth alongside, and sometimes above, competence.

Sources (1)

It's as if the school's been taken over by the chess club

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Rory hears that more people in the US now study computer science than all the humanities put together. As a classics graduate he admits self-interest, but argues the future needs philosophy graduates. Training so many people in a deterministic mindset is like the school being taken over by the chess club: a valuable form of intelligence, but ill-suited to most of the problems we face.

“It's like the school's been taken over by the chess club.”

The point: A monoculture of deterministic thinking leaves society ill-equipped for messy problems.

Sources (1)

It's not a holiday if you know what day it is

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Rory finds America's two weeks' paid vacation appalling, and stranger still that taking a whole week at once is seen as dubious unless it is your honeymoon. His definition: if you know which day of the week it is, you are not properly on holiday. It is also a case of status quo bias: he has met Nigel Farage and plenty of right-wingers, but never anyone in the UK who wants to cut holiday entitlement for another 2% of GDP.

“It's not a holiday if you know which day of the week it is.”

The point: Status quo bias means arrangements look natural wherever they already exist, however they compare.

Sources (1)

Italian penalty points count backwards

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In Italy, driving licence penalty points go backwards: you start with 12 and they are taken away. The Italians found that loss aversion is a more powerful influence on behaviour. In Britain, Rory jokes, drivers tend to react to points with "Whoa! Got another three!" as though collecting them.

“Whoa! Got another three!”

The point: Framing a penalty as a loss rather than an accumulation harnesses loss aversion.

Sources (1)

Jail for a first cheque fraud is an American bias

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Discussing Kahneman's finding that sentences for near-identical first-offence cheque fraud in 1970s America ranged from 30 days to 15 years, Rory added a fourth dimension: bias. Since 1978 the US has been vastly more prone to incarceration than any other country, with only Russia close, and the trend grew even more under Clinton than Reagan. He suspected British police in the audience would say nobody in Britain gets a custodial sentence for a single non-violent cheque fraud: jail time is an American assumption.

“It's a US assumption that jail time is somehow necessary.”

The point: A whole system can share a bias that only becomes visible when you compare it with other countries.

Sources (1)

Japanese toilets, solar panels and the first eight in a postcode

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A Japanese toilet is an order of magnitude better than a conventional one, yet Toto sells only around 1 per cent to Western Europe. Some reasons are economic, but some are embarrassment: nobody wants to be the family with the weird toilet. The same probably applies to solar panels: selling the first lot in a street is disproportionately hard. That suggests a sales strategy, sell to the neighbours of anyone with panels, and a government one: in each postal district subsidise the first eight, then let the natural copying instinct take up the slack.

“Nobody wants to be seen as the family with the weird toilet.”

The point: Adoption is blocked by fear of being first, so seeding a few local adopters can unlock social copying.

Sources (1)

Jobs come through weak second-order connections

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Rory reports that people who study network theory find most people get jobs through weak, second-order connections rather than close first-order ones. That is partly because there are more of them, but a disproportionate number of useful referrals seem to happen at the periphery of people's social networks rather than in the middle. He admits he does not know why, but it is a justification for going to events.

“A disproportionate number of useful referrals seem to happen at the periphery of people's social networks.”

The point: Opportunity flows through the edges of a network, so widening loose contacts pays more than deepening close ones.

Sources (1)

John Lennon didn't buy a place in Camden

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Rory suggests London's property premium is partly fashion. If you were rich in the 1960s, you did not buy a place in central London: John Lennon bought a country mansion, not a house in Camden. When Rory was a child, the most expensive house in Britain in the Guinness Book of Records was John Paul Getty's mansion near Guildford, not anything in London. Something has patently changed in taste, not just in supply.

“John Lennon didn't go and buy a place in Camden, he bought a mansion.”

The point: Where the rich want to live is a fashion, so property values reflect shifting status signals as well as scarcity.

Sources (1)

John Redwood the Vulcan

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A viewer suggested that merely talking about trade-offs violates the care/harm moral foundation, because it makes you look like a calculating bastard. Rory agrees, recalling the politician John Redwood, nicknamed the Vulcan, a former consultant: in front of economists he seemed the most intelligent person in the world, but in front of the public he came across as a weird, depersonalised calculating machine. Rory admits he failed to foresee that 'herd immunity' would cause a scandal, because the phrase was familiar to him.

“The very idea of a trade-off makes you look like a calculating bastard.”

The point: Openly weighing trade-offs signals coldness, so public debate drifts towards absolutes and pathos.

Sources (1)

Ken Clarke, it never worked like this in my day

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A Conservative MP told Rory that as a minister he needed Treasury permission merely to move £60,000 from one budget to another, not even a rounding error in government. He asked Ken Clarke, Chancellor in the 1990s, what was going on. Clarke said it never worked like that in his day: you gave a minister a budget, left them to spend it, and if after a year they had spent it fairly well, they kept their job and maybe got more. Equally, Ogilvy New York's finance department should not have to approve a hire in Ogilvy London.

“You gave a minister a budget, you left it up to them to spend, and if they'd spent it fairly well, you let them keep their job.”

The point: Granular central control replaces judgement and autonomy with paralysis.

Sources (1)

Launching a V8 Mustang with Greta Thunberg

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Rory says it is incredibly easy to get re-elected, and he could do it in an afternoon. First, you need a marketing function: communicate directly to the populace, as Trump does. Trying to cadge your news coverage by getting on the Today programme is doomed, as Dominic Cummings pointed out, because journalists want to discredit you. He likens it to launching the new V8 Ford Mustang using Greta Thunberg as your only spokesperson.

“That's like trying to launch the new V8 Ford Mustang using Greta Thunberg as your only spokesperson.”

The point: Relying on a hostile intermediary to carry your message is futile; build direct channels.

Sources (1)

Laws you can break before they exist

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Listening to the memoir of a Chinese-American who made a fortune in China's early boom, Rory learned that many Chinese laws are introduced retroactively: you make money doing something, someone in the Party decides they don't like it, and you're arrested for having done it before the law existed. We take for granted that nobody would impose a law retroactively, but other people don't find it obvious. Our institutions hold an evolved intelligence that can't necessarily be recreated by design.

“There's an evolved intelligence there that you can't necessarily recreate by design.”

The point: Principles we assume are obvious are hard-won institutional inheritances worth protecting.

Sources (1)

Le Corbusier's plan for Paris and Brasília from the air

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Le Corbusier proposed demolishing the buildings of Paris and separating it into work, residential and retail zones, a plan conceived looking at the city from the air. Rory notes that if anything is wrong with Paris, it really is not the buildings; better breakfast would be a start. Brasília makes perfect sense from the air. The problem is that most people do not live in the air. It is the Robert Moses versus Jane Jacobs debate.

“The problem you face there is that most people don't live in the air.”

The point: Designs that look rational from the top often fail the people who live at ground level.

Sources (1)

Let ads say 'double your money in X years'

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Rory argues that APR-based rules for investment and loan advertising understate the cost of borrowing and the value of saving. It should be legal to advertise 'double your money in X years', a concrete promise that captures compounding. His Monzo card shows the interest cost of each purchase if he does not pay it off: £12 extra for a pizza over twelve instalments. Despite A and S levels in maths, he had never consciously grasped that, so he now uses it as a charge card.

“It should be legal to run an ad that says 'double your money in X years', because that's a concrete promise.”

The point: Concrete framings of compounding change financial behaviour where abstract percentages do not.

Sources (1)

Let people cancel subscriptions through their card

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After 35 years in advertising, Rory finds the industry not very evil; genuinely manipulative or sludgy practices are rare. But some are intolerable, such as being unable to cancel a recurring credit-card subscription through the card, when a direct debit can be cancelled at your bank. He favours legislation like Germany's proposed two-click law, and wants recurring payments shown at the top of card statements with a cancel option. Free trials that quietly convert and are hard to cancel let bad actors ruin subscriptions for good ones like Netflix and Amazon, until consumers refuse to subscribe at all.

“The bad actors in that field are ruining it for everybody else.”

The point: Regulating sludge protects honest firms, because exploitative practices poison trust in the whole model.

Sources (1)

Libertarian but fine with white lines on the road

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On the ethics of nudging System 1 without people knowing, Rory says he is temperamentally libertarian, but he does not get angry when the authorities paint white lines down the middle of the road and complain that the state is interfering with his right to swerve all over the place. Very simple unconscious guidance is useful. Following Buckminster Fuller, he argues you should stop trying to bully people with rational arguments and design a better environment in which they do the right thing automatically.

“I don't go, this is the government interfering with my right to swerve all over the place.”

The point: Designing the environment beats persuasion, and light unconscious guidance is not an affront to liberty.

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Libertarian federally, Marxist with the dog

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Rory quotes an American political thinker [?] who explained his politics as context-dependent: at the federal level I'm a libertarian, at the state level a Republican, at the town level a Democrat, with family and friends a socialist, and with my dog a Marxist: from each according to his abilities, to each according to his needs. Many things we argue about may be the same thing in different contexts.

“With my dog, I'm a Marxist.”

The point: The right rule depends on the scale and context, so apparently opposed positions can all be correct.

Sources (1)

License a monopoly for open-access parcel lockers

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Some holes in the digital ecosystem stay unplugged because they are natural monopolies that can't reach critical mass otherwise. One is lockers for deliveries. Rory would have government license a 10 to 15-year monopoly, Schumpeterian rent, on condition it is open access: a Sevenoaks shop could drop a book in his locker after closing, and he could send something to his 93-year-old father's village locker. It removes last-mile costs, emissions and congestion. P&G, owner of Gillette, told him subscriptions don't scale: your house would become a logistics hub, beeping every time you open the window.

“If we bought everything that way our homes would turn into a delivery hub.”

The point: Some infrastructure needs a licensed, open-access monopoly to overcome network effects.

Sources (1)

Londoners never go to the theatre

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Every assumption about the future involves rising urbanisation and megacities, because economists love scale and agglomeration effects. Yet depression, schizophrenia and anxiety are far higher in cities and higher still in high-rises. The pandemic and flexible working suggest it ain't necessarily so. Many city dwellers show adaptive preference formation: forced to live there for work, they praise the vibrancy and the theatre. But Londoners never go to the theatre; that is people down from the north on a coach trip to the latest Cameron Mackintosh.

“People who go to the theatre in London are people down from the north on a coach trip.”

The point: People rationalise constraints as preferences, and efficiency arguments overlook wellbeing.

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Louis XIV would trade half of Gascony for your TV

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Capitalism has some appalling market failures, such as failing to eradicate extreme poverty in rich countries. But excluding property and education, most people now own possessions that would have been the envy of Louis XIV. Perhaps not so good on the mistress front, and clothing is disappointing. Versailles barely had sanitation; apparently they relieved themselves in the corridors. Louis would visit someone in a two-bedroom flat in Fulham and offer half of Gascony for their flat-screen TV. A modern electric car is objectively better than a 1950s Rolls-Royce.

“I'll give you half of Gascony in exchange for your flat-screen TV.”

The point: Consumer capitalism has delivered extraordinary material abundance that we no longer notice.

Sources (1)

Lucy Letby and HS2 are the same problem

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Rory notes that highly intelligent people can be bereft of statistical ability, and argues the Lucy Letby trial shows people in medicine and law can reach influential positions while being statistically very weak. What terrifies him is less the possibility of a wrong verdict than how hard it now is for anyone to admit a mistake: an establishment unwilling to believe that a proper process can produce a wrong decision. HS2 is the same: procedural complexity creates massive sunk cost bias, so even when it is clearly stupid, nobody can stop it.

“It seems very strange to compare Lucy Letby to a train, but I think they're both emblematic of the same thing.”

The point: Elaborate processes create sunk cost and make institutions unable to admit and reverse errors.

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Make every home permanently for sale

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Rory's theory: require every house to be for sale all the time; if you don't want to sell, quote a ridiculous price. Alan Sugar found his house by writing to owners whose homes weren't on the market. A couple returning to Lichfield with triplets wrote to about 20 homeowners; five replied and they bought one. Ask 200 people whose home is on the market and about four hands go up; ask who would sell given a spontaneous offer, about 20. Perhaps people hate estate agents more than moving house.

“People hate estate agents more than they hate moving house.”

The point: Removing the friction of declaring a sale could release far more housing, because latent willingness to sell is about five times the listed supply.

Sources (1)

Make it compulsory for a year, then see

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Rory would like more experimental legislation: try something compulsory for a year and see what people think. In Sweden, when the government wanted men to take paternity leave, there was huge social pressure not to, and nobody took it. So they made it compulsory for a couple of years. Once the social norm had been created, there was no going back.

“Once you've created the social norm there's no going back.”

The point: Temporary compulsion can flip a social norm that voluntary schemes never shift.

Sources (1)

Make the GP reminder text a question

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Huge sums are wasted because people do not turn up to GP or consultant appointments. The good technological fix is a reminder text the day before and the morning of the appointment. The better fix, adding psychology, is to phrase the text as a question, such as can we expect you at 9am, and ask them to reply yes. People who have actively replied are far more likely to conform to what they have said than people who merely received a message.

“The prior action greatly increases the likelihood of the later action.”

The point: Getting people to make a small active commitment raises follow-through more than passive reminders.

Sources (1)

Making the National Lottery half the economy

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How wealthy you are, Rory says, is now more a product of when you happened to buy a house and where you happened to live than of your contribution to wider society. It is completely arbitrary. The property market is like making the National Lottery 50 per cent of the economy.

“The property market is like making the National Lottery 50% of the economy.”

The point: Wealth from property timing is luck, not merit, and distorts the economy.

Sources (1)

Meat consumption falls through meat as garnish

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The meat industry rails against vegans and vegetarians, but a friend's research found the far bigger reason for declining meat consumption is a preference for foods that contain some meat, but not much. A pepperoni pizza is not vegetarian, yet compared with a stew or steak it contains relatively little meat. The trend is towards meat as a garnish rather than the main feature.

The point: Big shifts often come from gradual dilution rather than visible conversion.

Sources (1)

Media bias is what you choose to cover

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Citing Haidt and Cialdini, Rory argues most media bias lies not in what you say but in what you talk about. Citizen Kane says: make the headline big enough and I'll make the story big enough. Had Nixon been a Democrat, he suspects, Watergate might have stayed on page seven. In the Dominic Cummings saga, everyone fixed on the trip to Durham, yet nobody noted the truly reckless act: walking from a flat where his family had Covid straight into Downing Street, risking knocking out the whole operation.

“Most media bias isn't actually what you say, it's what you talk about and what you don't talk about.”

The point: Selection and emphasis shape public judgement more than slanted wording.

Sources (1)

Mental nudism, the middle class are reputationally paranoid

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Rory rejects the idea that working-class or less educated people are uniquely manipulable. Middle-class educated people are more in the grip of ludicrous social conventions: the UK upper middle class is reputationally paranoid, unable to voice opinions that might get them disinvited from dinner parties. Independent opinion comes from the working class and from aristocrats who don't care. He asks how many people would be naturists at the beach without social constraint. Populism makes sense when opinions are ignored for years, kept outside an Overton window policed by lawyers and economists.

“Middle-class people are incapable of independent thought because they're so reputationally paranoid.”

The point: Social constraint, not ignorance, limits what people say, and ignored opinion resurfaces as populism.

Sources (1)

Moist lavatory paper and stuck equilibria

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Moist lavatory paper is completely logical: after potting a plant you would not clean your hands by rubbing them vigorously with dry paper. If everybody used moist paper and someone tried to introduce dry, Rory says, they would be arrested. But because history happened the other way round, getting people to switch from one equilibrium to the other is very hard, since so much of our behaviour is conditioned by what everybody else does.

“If everybody used moist lavatory paper and you tried to introduce dry lavatory paper, you'd be arrested.”

The point: Many practices persist because of social equilibrium, not merit, so the order of history matters more than logic.

Sources (1)

More Britons worked in Australia than in the EU

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Rory says that at the time of Brexit more British-born people were working in Australia than in the rest of the EU. An Irishman once told him that despite talk of Ireland at the heart of Europe, emigrants head for the UK, Australia, Canada, New Zealand or the US. Look at what people actually do rather than what economic theory says, and ideas like CANZUK, a single market and travel area for Canada, Australia, New Zealand and the UK, make sense. Speaking English creates an asymmetry: a Dutch person knows which language to learn; an English speaker does not.

“If you simply look at what people are doing rather than what economic theory teaches you, you see something different.”

The point: Revealed behaviour, not theory, shows where real affinities and opportunities lie.

Sources (1)

MPs paid in housing

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Young renters accept paying a huge share of their salary in rent because, at 24, they have never known anything different; you have to be about 50 to see it is anomalous, and by then you probably own a house. Rory adds that for 35 years MPs' main remuneration was effectively a housing allowance, so a whole political class bought London houses. Give every MP half a million pounds of Microsoft shares and it would be a conflict of interest, but because it was housing nobody applied the same standard.

“If you'd given every single MP half a million pounds worth of Microsoft shares, it'd be considered a massive conflict of interest.”

The point: Those who set housing policy have been beneficiaries of high prices, a conflict hidden because property seems sacred.

Sources (1)

National Sort Your Finances Out weekend

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Stealing from Stoptober, Rory proposes an extra bank holiday called 'National Sort Your Financial Shit Out' weekend. Doing your finances is boring, and the rest of the year anyone who mentions pensions is rightly shunned as the most boring person in the room. On that one weekend, with intensive advertising of financial products, it becomes acceptable to talk about them. A little coordinated burst creates conversation where none could exist.

“On that one weekend, it's okay to discuss those things.”

The point: A designated moment can make a socially awkward or dull behaviour normal by coordinating everyone at once.

Sources (1)

Nice people pretending to be nasty

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Explaining academic hostility to evolutionary psychology, Rory suggests some political views, like viruses that thrive only in particular environments, can only exist in universities: a Manichaean belief that everyone on the left is good and everyone on the right evil. In a messy workplace that categorisation collapses quickly. He teases metropolitan Americans that the red states are full of nice people pretending to be nasty, and the blue states full of nasty people pretending to be nice, adding that it is ten per cent true and he would rather break down in Texas than in Massachusetts.

“The red states are full of nice people pretending to be nasty and the blue states are full of nasty people pretending to be nice.”

The point: Professed values and actual behaviour can diverge, and real-world contact undermines tidy moral categories.

Sources (1)

NIMBYism, your neighbour gains £200,000, you get the noise

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Part of the housing crisis is psychological, Rory says. If your neighbour wants a loft extension or a house in the garden, they make £200,000 from the planning permission while you get the inconvenience and zilch. We evolved to practise beneficial cooperation, and with it a strong instinct against any arrangement where one person gets all the gains and you get all the downside, a dog-in-the-manger instinct. Turning NIMBYism into YIMBYism means addressing that.

“They're making £200,000 from getting the planning permission, whereas you're putting up with a load of inconvenience and getting zilch.”

The point: Opposition often stems from unfair distribution of gains, so share the upside.

Sources (1)

Nobody has done the Donald Trump for climate

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When Louis observes that the climate crisis is hard to film because it is driven by impersonal, boring agencies with no charismatic personality, Rory calls that a really interesting brief for how to address it. Everybody fundamentally understands the intellectual arguments, he says, but nobody has done the Donald Trump on the other side: no funny, magnetic personality has made the case emotionally compelling.

“Everybody fundamentally understands the intellectual arguments, but no one's done the Donald Trump on the other side.”

The point: Causes that win the argument can still lose for want of charisma and humour.

Sources (1)

Nobody interviews the street cop about crime

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Ordinary people are never allowed to pronounce on complex problems. When do you ever hear an immigration officer interviewed about immigration, or a street cop about crime? They patently know far more than economists or sociologists, yet we seek wisdom from people with models and theories rather than actual experience. Rational decision makers want generalisable laws so they can pronounce without considering specifics, but context is often the most important thing, which dooms many universal models.

“We instead seek wisdom from people with models and theories rather than actual experience.”

The point: Practitioners' contextual knowledge is undervalued relative to theorists' universal models.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Nobody runs for president on more holiday

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Some choices are impossible because they need lots of other people to change too. Sixty-eight per cent of Americans would like more holiday and a bit less money, yet no presidential candidate has run on a four-week holiday allowance; and Rory has never met a European so right-wing they want less holiday. Economics assumes we stop working when leisure gains outweigh work gains, but the first person in an office to ask for a four-day week becomes the lazy guy, even if everyone else wants the same.

“The first person to raise his head above the parapet becomes the lazy guy.”

The point: Collective traps stop individuals choosing what most of them want, which economic models of free choice miss.

Sources (1)

Nobody senior has been on a coach in 25 years

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George Monbiot points out that coach travel is by far the most ecologically friendly way to move people per passenger mile, better than trains or planes. Yet it gets no consideration among senior people because, Rory jokes, nobody earning more than 15,000 a year has been on a coach in 25 years if they are over 40 and do not live in Oxford. He shows a panda-branded coach: could a charity brand make it a question of intent rather than compromise?

“Nobody earning more than £15,000 a year has been on a coach in 25 years.”

The point: Green options fail on status, and a trusted brand can turn them from compromise into choice.

Sources (1)

Norway's 14-times-better refugee policy

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Following Paul Bloom's Against Empathy, Rory notes TV news pits a policy expert against a bereaved widow, an unanswerable hard-luck story. Empathy can drive dubious decisions. Norway, unlike Sweden, asked how to make the most difference and concluded that funding refugee camps outside the borders of a war-torn country did about 14 times more good than resettling a small, visible subset. Those crossing the Channel are visible; those stuck in camps are far more numerous and worse off. It's the 'boy trapped in a well' problem.

The point: Empathy fixes on the visible few, while effective help may lie with the unseen many.

Sources (1)

On an all-male planet, half would live in a Travelodge

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Rory concedes that women's growing earnings contributed in part to higher property prices. On an all-male planet, 50 per cent of men would live in a Travelodge or Premier Inn: there is a bed, a good breakfast, a bar, a big TV, no tidying up and someone changes the sheets. Plus a fantastic car outside and gadgets. If it were not for his wife and children, he says, he would be straight there.

“In an all-male planet, 50% of men would live in a Travelodge or a Premier Inn.”

The point: Much housing demand is driven by status and partnership rather than men's minimal functional needs.

Sources (1)

Only pharmacists can book tomorrow's GP appointments

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Rory offers an untested hunch that could halve unnecessary GP visits. Instead of the 8am phone scramble, only pharmacists can book next-day GP appointments. The pharmacist will first take a look and suggest an ointment. Pharmacists can now prescribe antibiotics, including delayed prescriptions: postdated to next Tuesday, cash it in if you still feel rotten. Most people recover meanwhile and will not spend the eight pounds, but the bit of paper reassures them. He thinks it worth testing, if procurement and compliance would let anyone try.

“Here's a prescription postdated till next Tuesday.”

The point: Rerouting a bottleneck and offering reassurance can cut demand without reducing care.

Sources (1)

Overtourism is a concentration problem

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In ten years we will need to debate overtourism. Repeat short-haul travel is nuanced: in Italy Rory would find a medium-sized town rather than the Leaning Tower. But visit China once in your life and you go to the Great Wall nearest Beijing, which gets 90 per cent of visitors, a panda, the Terracotta Army, the Forbidden City. The same for South America: Iguazu Falls, Copacabana. Bondi Beach isn't special, we've just heard of it. The five most famous places on a continent are more famous than the next twenty combined. The problem isn't volume, it's concentration.

“The problem isn't the volume of tourism, it's concentration.”

The point: Exponential fame concentrates demand, so solutions should spread attention rather than cap numbers.

Sources (1)

Pay a charity to drive on the hard shoulder

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Stuck in traffic on the way to Heathrow with his wife and two children, Rory was about to lose a few thousand pounds of non-refundable tickets. He thought people in his position would gladly pay 30 to drive on the hard shoulder at 20mph. Economically it allocates the lane to those who need it most, but people hate it for egalitarian reasons, as they would a paid airport security fast lane. His twist: make the fee a donation to one of five recognised charities, and the objection may vanish.

“There's an immense difference between gaining a privilege through generosity and gaining a privilege through wealth.”

The point: Routing a premium to charity can make efficient but unpopular pricing socially acceptable.

Sources (1)

Pay hipsters to move in and solve the housing crisis

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Rory thoroughly endorses hipsters. With no new washing machine left to transform life (which, by freeing a day of drudgery, helped women enter the workforce), they take immutable pleasures like breakfast and toast and do them incredibly well, a harmless way to enjoy ourselves. He thinks hipsters should be subsidised: once an area has two or three hipster cafés it becomes an acceptable place to live. Add high-speed fibre broadband and some hipsters and you have essentially gentrified it, so pay them to move to a South Wales town that needs it.

“If you've got high-speed fibre-optic broadband and some hipsters, you've essentially gentrified.”

The point: Small cultural signals change how a place is perceived, and could be used deliberately to regenerate it.

Sources (1)

Pay tax and you're a mug, endow a ward and you're a philanthropist

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The Western debate is all about the level of taxation, but Rory suggests another debate: how much control people have over their tax money. What costs £10 in one context is a curse, and in another we may welcome it. Pay £20,000 in tax towards health and you feel a mug; pay £20,000 to endow a hospital ward and you are called a philanthropist. The same money feels completely different depending on where you believe it goes.

“Pay 20,000 pounds in tax toward health, and you're merely feeling a mug. Pay 20,000 pounds to endow a hospital ward, and you're called a philanthropist.”

The point: Giving people a sense of control over where their money goes could change how they feel about paying it.

Sources (1)

People choose relative wealth but absolute holidays

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Robert Frank asks: would you rather earn £50,000 when everyone else earns £30,000, or £80,000 when everyone else earns £100,000? Many choose the first, and it isn't irrational: for attracting a mate or buying beachfront housing, relative wealth matters. Ogilvy's bosses in New York and London arguably have worse lives than their Latin American counterparts with clifftop houses. But ask about four weeks' holiday when others get five, versus six when others get eight, and most pick six. Leisure is an absolute good, not a rival status good, so we should seek quality of life through more leisure rather than more money.

“Vacation is not a relative status good, it's an absolute good.”

The point: Money is largely spent on zero-sum status competition, whereas extra leisure makes everyone better off.

Sources (1)

People respond in reverse proportion to force

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Institutions tend to deploy as much force and compulsion as possible. Yet individuals seem to be influenced in almost absolute reverse proportion to the amount of force applied. Rory sees a complete disconnect here: large organisations, including government, the largest of all, have become disconnected from what actually matters to people.

“The tendency of the person is to be influenced in absolute reverse proportion to the amount of force being applied.”

The point: Compulsion is often the least effective lever for changing behaviour.

Sources (1)

People retire to stop commuting, not working

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Flexible working could solve problems far beyond the office. The pensions crisis: Rory thinks most people retire because they want to give up commuting, not work. The accountant doesn't mind doing accounts; it's getting up at 7am five days a week for a 45-minute train that isn't worth it at 60. The housing crisis: with three days at home and four in the office, many would keep a crash pad in the city and own something by a lake or the coast.

“Most people retire because they want to give up commuting.”

The point: Commuting, not work itself, may drive retirement and housing pressures, so flexibility could ease both.

Sources (1)

Phones at concerts ruin it for the band

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Filming a concert on your phone looks like an individual choice: watch it or film it as you please. But when everyone around you is filming, it spoils the concert even for those who are not. Researching this, Rory found the people it hurts most are the performers, who say it no longer feels like playing to a live crowd but like feeding something into people's telephones. When a behaviour becomes widespread it turns from an option into a social norm with no escape.

The point: Individually harmless choices can become collectively harmful norms once universal.

Sources (1)

Politicians become interesting once they retire

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Rory notes that politicians become much more interesting the moment they retire or write their book: Ed Balls, Michael Portillo, Neil Kinnock. Something is wrong with how they are briefed. If you go into an interview told to convey three core messages, you will say those three things, and the net effect is that you become unconvincing. Parties judge themselves by message conformity, which is small-scale effective and large-scale disastrous, because no one believes you.

“What you might call small-scale effective, large-scale disastrous.”

The point: Message discipline wins individual exchanges but destroys credibility overall.

Sources (1)

Postcards of motorway service stations

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Rory recommends Joe Moran's On Roads, the book with the greatest gap between how boring it sounds and how good it is. Birmingham once promoted itself as the motorway city, the thing most likely to kill a city. People did not protest motorways; they took deckchairs and picnics to watch them being built. Holidaymakers bought postcards of service stations like Leigh Delamere to send friends. Old people are valuable, and a bit conservative, because past 45 you realise what you assumed about the future at 20 was absurd.

“Birmingham, the motorway city. You can't think of a thing more likely to kill a city.”

The point: Visions of progress date badly, so confident extrapolations deserve scepticism.

Sources (1)

Potholes, what cyclists and motorists both hate

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Everyone seems to profit from fostering hostility between cyclists and motorists, though outside London most cyclists also have a car. Instead of focusing on where they most disagree, find something they both hate: potholes. They cost drivers new tyres, which is environmentally bad too, and they are a total terror to cyclists on narrow-tyred titanium bikes. Focusing on problems whose solutions divide people has a huge creative opportunity cost. When two sides are stuck, change the question and solve something else.

“The thing to do if you have two people who disagree about something is to change the question.”

The point: Shared grievances unite opposed groups and allow progress where head-on debate stalls.

Sources (1)

PPE graduates see marketing as cheating

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Asked if he would be transport secretary, Rory says only for five years, since it takes a year to master the brief before you are reshuffled. Politics needs more people from industry who are a bit salesy. The Behavioural Insights Team loved working with Grant Shapps because, being a bit of a salesman, he instinctively understood their work, whereas everyone trained in PPE was massively resistant. They see marketing as cheating. Rory would be unashamedly salesy and would probably open a massive YouTube channel.

“Everybody else who's been trained in PPE is massively resistant. They basically see marketing as cheating.”

The point: Policy suffers when its makers distrust persuasion.

Sources (1)

Prizes for the inventors who never got rich

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The difference between a billionaire and the merely comfortable is less the value of an invention than the moat built round it. Tim Berners-Lee chose not to patent the web, since a patent would have stopped it working, yet in no just universe is he poorer than Mark Zuckerberg, who built on it. Florey, Chain and Heatley made penicillin manufacturable and largely declined to profit. Wifi came from physicists who never got rich, and the inventor of nachos was a Mexican restaurateur called Ignacio who ran out of food. Rory would give part of a wealth tax as lavish prizes for valuable ideas their creators could not monetise.

“There is no possible just universe in which he isn't richer than Mark Zuckerberg.”

The point: Markets reward moats rather than value created, so society should reward unmonetisable breakthroughs directly.

Sources (1)

Protest has become Tinder for lefties

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Media coverage of demonstrations is an extraordinary bias, since about 70 per cent of people cannot take part; the people of Liverpool would have to burn their city down to get the coverage of 50,000 Londoners breaking a few windows near Sky News cameras. When police could beat protesters up, you could assume conviction; now it may just be Tinder for lefties, a way to meet like-minded people. The right, he jokes, has only two modes: write to the Daily Telegraph or buy an assault rifle.

“For all we know now it's just effectively Tinder for lefties.”

The point: Protest is a costly signal only when it carries real cost; otherwise it overstates opinion.

Sources (1)

R is 0.1 on a building site, 47 on a ski trip

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Rory asks whether science is about looking right by exploiting what you already know, or finding out what you do not. If you only know the aggregate R number, all you can do is lock everyone down, because averages force rules for everybody. But if you knew the variance, that R might be 0.1 on a building site but 47 in a Tube carriage or on a skiing holiday, you would know where to intervene and where not to.

“If we only know the aggregate R nought, the only thing we can do is lock everybody down.”

The point: Knowing the variance rather than the average allows targeted intervention instead of blanket rules.

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Raising the ISA limit killed the urgency to save

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ISAs once allowed 3,000 pounds a year of tax-free savings. To encourage saving, the limit was raised to about 20,000, plus a partner's and a child's allowance. Leaving aside why people who can save 52,000 a year need help, it made saving less motivating for ordinary savers. At 3,000, someone who could save 1,500 felt they must top it up now or miss out. At 20,000 there's no urgency, so they put in less. The 'speak now or forever hold your peace' stimulus was destroyed.

The point: A tight, use-it-or-lose-it limit can motivate more than a generous one.

Sources (1)

Real estate businesses with a side gig in pedagogy

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Give one of these private schools half a million pounds and they would spend it on an all-weather hockey pitch. As with all educational institutions, Rory says, which must infuriate academics, they appear to be real estate businesses with a side gig in pedagogy. There is always 50 million pounds for a new faculty building, but not for bursaries, or to pay academics adequately.

“They appear to be real estate businesses with a side gig in pedagogy.”

The point: Institutions favour visible capital projects over less visible investment in people.

Sources (1)

Rebrand the Commonwealth

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If offered a rebrand, Rory would take the Commonwealth: a geographically dispersed group of mostly democratic, like-minded countries that could act together softly without big structures, especially now the US is less reliable. Perhaps move its headquarters to Accra. His mischievous defence of the British Empire: really good taste. Jamaica, Ghana, India: there is nowhere on the list you would not want to visit, eat the food and meet the people. Contrast invading the country next door: why lose three million people on the Eastern Front for featureless countryside with a barn every three miles?

“There is one defence you can make of the British Empire: really good taste.”

The point: Existing institutions with stale associations can be reframed into valuable soft-power assets.

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Remarkable people had unfair advantages

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Rory proposes an extreme view worth considering: nearly everybody who has done anything remarkable did it on the back of some unusual or unfair advantage. Looking for achievers who came from nowhere, he finds luck: William Blake was homeschooled by parents who spotted his genius; Michael Faraday, from a humble background, was apprenticed to Sir Humphry Davy; Darwin, and the humbler Alfred Russel Wallace, had the privilege of travelling among the world's strangest flora and fauna. Privilege is not necessarily bad; squandering it is. Starting everyone equal is impossible and perhaps counterproductive.

“What is a bad thing is having a privilege and squandering it.”

The point: Achievement usually rests on unusual advantages, so strict egalitarianism may suppress it.

Sources (1)

Remote work and the visibility penalty

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Against the view that remote work is unfair to on-site workers, Rory raises another moral question. Call centre work could offer meaningful, flexible employment to older people, disabled people and carers. And the main disadvantage women face after years away parenting isn't lost training or experience but lost visibility: as the Woody Allen line goes, success is mostly showing up. Letting people on maternity leave participate remotely could counter that.

“It's not really that you lose training or experience, it's that you lose visibility.”

The point: Flexibility can widen who is able to work and stay visible, which is its own fairness argument.

Sources (1)

Replace GPs with actors

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Rory asks anyone in the NHS never to repeat it: 90 percent of people who go to the doctor are not going for medical treatment but for reassurance, and for parents of young children it's probably 100 percent, driven by 'if it really was meningitis I couldn't forgive myself'. So his suggestion is that you could replace GPs with actors with no medical training at all who are just very reassuring. Don't quote him, but it would work.

“Ninety percent of people who go to the doctor are not going for medical treatment, they're going for reassurance.”

The point: Much of the demand on healthcare is for reassurance, which could be met in other ways.

Sources (1)

Reserve university places for the over-30s

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Rory argues that expanding higher education partly reduced choice. When 20 per cent went to university, not going meant little; now not having a degree puts a badge on you. If 20 per cent of places were reserved for people over 30, it would become socially acceptable to say you had decided to defer, get a job first and study when older. Anything that makes a choice socially possible, he argues, is wealth creating.

“Anything that makes a choice socially possible is, I would argue, wealth creating.”

The point: Expanding an option can stigmatise the alternative; deliberately legitimising other paths restores real choice.

Sources (1)

Rick Rubin's two childhoods and honest taste

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Interviewing Rick Rubin for The Spectator, Rory heard about his split childhood: blue-collar weeks on Long Island, weekends in Manhattan with an aunt in Estée Lauder's creative services. Manhattan culture was constrained by what others thought of your tastes; on Long Island you liked things because you liked them. Rory links it to the line that posh food looks better than it tastes and working-class food tastes better than it looks, and to the Democrats' bubble, where opinions are subordinated to what they say about you.

“Posh people's food looks better than it tastes, and working-class food tastes better than it looks.”

The point: Status-anxious groups lose honest preference, which blinds them to what most people actually like.

Sources (1)

Rolling news is ADHD in broadcast form

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Rory calls rolling 24-hour TV news a form of collective insanity, ADHD in broadcast form: it either ignores something or is completely obsessed with it. For a period the Epstein files were 75 per cent of news coverage, and then they vanished. For comparison, in print, when the atomic bomb was dropped on Nagasaki it was not the lead story in The Times.

“Rolling 24-hour TV news is a form of collective insanity. It's ADHD in broadcast form.”

The point: News attention swings between obsession and neglect, distorting what the public thinks matters.

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Rory's conspiracy theory, Epstein killed himself

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Asked whether he holds any conspiracy theories, Rory confesses a couple: he doesn't think a Wuhan lab leak impossible, and finds it strange that people who suggested it were treated as insane, given the scientific establishment had a dog in that fight; and he is uncomfortable about the Lucy Letby conviction. Then he offers that it's possible Epstein killed himself, which is a joke: the official account has become so widely doubted that stating it sounds like the contrarian position.

“I think it's possible that Epstein killed himself.”

The point: When a counter-narrative spreads widely enough, the official version starts to sound like the conspiracy theory.

Sources (1)

Run the dishwasher seven-eighths full at the right time

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Rory offers a small tip: you do not have to fill your dishwasher to the brim before turning it on if you want to help the planet. Turn it on when it is seven-eighths full at the right time of day. Timing, not maximum efficiency, is where the gain lies when the grid is full of cheap renewable power.

“Turn it on when it's seven-eighths full at the right time of day.”

The point: When clean energy is abundant at certain times, timing matters more than squeezing out efficiency.

Sources (1)

Second-hand EVs, a great story the press will tell as a disaster

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Britain's biggest marketing problem isn't Persil versus Ariel; it's press negativity bias towards innovation. Rory would have told newspapers to cheer up or lose ad spend. Soon three- and four-year EV leases will flood the second-hand market: young people can buy a nearly-new electric car, software upgraded, for very little. The Daily Mail will report forecourts clogged with unwanted electric cars. Britain should make heroes of Octopus, AO, Monzo, Wise, Direct Line and easyJet, largely marketing innovations that found a psychological wormhole. (Hybrids, he jokes, are the bisexuals of the automotive world.)

“Instead of 'get a far better car than you could have dreamed of for half the price', they're going to say nobody wanted all this stuff.”

The point: How a fact is framed by the media can turn a consumer windfall into a perceived failure, slowing adoption.

Sources (1)

Selling electric cars to a Spurs fan in an Arsenal shirt

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You cannot reason people into doing something they are emotionally ill-disposed to do. Many people avoid electric cars because they don't want to be identified with a tribe they imagine as patronising, upper-middle-class tree huggers. You could talk kilowatt hours and torque vectoring for hours, but unless you remove the tribal instinct it won't work. A Spurs fan forced to walk around in an Arsenal shirt would feel something like physical pain and would rather go naked. We are monkeys with hardware optimised for groups of 150.

“A Spurs fan would experience something not unlike physical pain if you forced them to walk around in an Arsenal shirt.”

The point: Adoption often hinges on tribal identity, which rational arguments cannot touch.

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Seven miles of motorway or premium Zoom for everyone

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Rory told the Department for Transport that for the price of about seven miles of motorway it could give everyone in the UK premium Zoom access. Unfortunately it is called the Department for Transport, not the department for not moving people around very much, yet the best thing it could do is remove unnecessary journeys. Finland has a ministry of transport and connectivity, recognising that electronic and physical movement are complements or substitutes. Hence his mantra: maybe you need wifi on trains rather than faster trains.

“Unfortunately they call it the Department for Transport, not the department for not moving people around very much.”

The point: Siloed departments miss cheaper substitutes for the thing they are named after.

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Sevenoaks shops that close as the commuters arrive

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In Sevenoaks, a commuter town, the shops complain that everyone goes to out-of-town stores, yet they close at 5.30. Around six o'clock some 10,000 people with money pour off the trains to find everything shut. No shop stays open later because it is a coordination problem: one shop doing it alone makes no difference, so it happens simultaneously or not at all. This is where libertarianism falls down. A hardcore libertarian might object to painted lines in a car park, but by and large you need someone to paint them.

“By and large, you need someone to paint lines in the car park.”

The point: Some valuable changes only work if everyone moves at once, which requires a coordinator rather than individual choice.

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Short-range left-wing, long-range right-wing

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Rory's idea of heaven, which he assumes Austin offers as a Democratic city in a Republican state: short-range left-wing and long-range right-wing. In the morning you can buy really good coffee made by people with interesting body art; in the afternoon you can drive into the desert and fire machine guns at oil drums.

“My idea of heaven, which is kind of short range left wing and long range right wing.”

The point: People's preferences mix political flavours depending on scale, defying single-axis politics.

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Should the crankiest 20% veto growth for everyone else?

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One of property's greatest problems is overregulation and the extent to which planning inquiries listen to anyone with a gripe, however cranky. Rory notes that people who oppose virtually every planning proposal score very high on neuroticism among the Big Five personality traits. That raises an interesting question: should the crankiest 20 per cent of the population be allowed to screw the economy for the other 80 per cent?

“Should the crankiest 20% of the population be allowed to basically screw the economy for the other 80%?”

The point: Planning systems give disproportionate power to a self-selected, unrepresentative minority.

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Signal care head on, solve problems obliquely

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Rory sees the culture war perhaps like the Victorian railway boom: an excess that leaves some good behind. The right shouldn't get angry at everything; trigger warnings, for instance, are decent and well-intentioned, if odd when Netflix flags tobacco smoking in Casablanca. But well-intentioned things aren't always good, because when you want to signal that you care about a problem you tackle it head on, whereas when you want to solve it you often tackle it obliquely.

“When you want to signal that you care about a problem you tackle it head on. If you want to solve a problem you often tackle it obliquely.”

The point: Visible, direct action is often chosen for its signalling value rather than its effectiveness.

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Soap operas cut Latin American birth rates

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Rory saw a presentation arguing that the main reason for declining birth rates in Latin America was television soap operas, which featured richer people with smaller families and normalised having two or three children. The declining influence of the Catholic Church played a part, but the biggest force was soaps. It seems trivial to discuss soap operas in a meeting about macroeconomics, but the forces are big.

“It seems trivial for us to start talking about soap operas in a meeting which is supposed to be focused on macroeconomics.”

The point: Cultural norms spread through entertainment can drive large-scale economic and social change.

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Socialism and getting things right first time

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Rory quotes a line he thinks is not a bad criticism of socialism: it is a political doctrine based on the mistaken belief that you can get things right first time. You have a theory of how the world should work, the theory appeals to you, and you impose it on reality, rather than allowing a feedback loop between doing and thinking.

“Socialism is a political doctrine based on the mistaken belief that you can get things right first time.”

The point: Theory-first systems fail because they leave no room for learning from practice.

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Spain is on Berlin time to impress Hitler

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Spain is so far west it should be on London time, like Portugal and the Canary Islands. But Franco, to impress Hitler, announced Spain would move to Central European Time, the same as Berlin, miles to the east. The decision is completely whack and causes all kinds of problems. Spaniards eating at 9pm looks weird, but that is 8pm in Portuguese or London time, and it is too hot to eat at 7. Effectively the whole of Spain gets up too early.

“To impress Hitler, he just announced that Spain was going to be taken onto effectively central European time.”

The point: Arbitrary decisions can shape a nation's habits for generations, later mistaken for culture.

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Speed cameras enact rather than suggest

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The bigger AI problem is when it stops suggesting and starts enacting, which is more like a speed camera than a satnav. Rory thinks speed cameras are unethical: before fining someone and giving three points, a panel of three should watch 90 seconds of video and weigh context. The 40 limit on the A13 exists to prevent congestion, not for safety, and at 3am on a dual carriageway 40 mph feels weird. A camera catching disproportionately many people may reflect location, calibration or signage; you could design one to catch everybody.

“You could design a speed camera to catch everybody if you wanted to.”

The point: Automated enforcement is blind to context that any human would weigh, which makes it unjust as well as inefficient.

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Start strict, then relax

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A Swedish friend told Rory that one thing nobody anticipated was that countries which started very strict and gradually relaxed found compliance much easier than countries that started loose and imposed restrictions one at a time. The direction of travel mattered: every new restaurant rule in a loosening-then-tightening regime prompted dissent and people began ignoring it, whereas a trajectory towards liberalisation was accepted.

The point: People react to the direction of change as much as to the level of restriction.

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Status competition stays; the currency moves

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Rory says human status competition never goes away, and attempts to abolish it always fail. What changes is the currency. In London in the 1980s and 1990s your car was a big status play; now higher education and experiences carry more weight. The mechanisms are malleable and can be pro-social, as with philanthropy, or anti-social, where one person's gain is another's loss. The policy lesson is to steer the currency rather than fight the instinct.

“Human status competition is not going to go away, but the currencies and mechanisms people use to signal their status over time are quite malleable.”

The point: Rather than suppress status-seeking, redirect it towards pro-social currencies.

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Stoptober and the libertarian intervention

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Rory's idea of a 'libertarian intervention' is a choice made easier by coordination rather than compulsion. Public Health England's Stoptober is his example: quitting smoking alone is hard, but if large numbers of people try simultaneously, with mutual support and a limited target, it becomes much easier. People are five times more likely to quit for good if they do it in that October window. It removes no freedom; it just designs the choice well.

The point: Synchronising a difficult behaviour across many people makes it easier without restricting anyone's freedom.

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Student loans make not going to university look subversive

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Writing in The Spectator, Rory asked about student loans. From one perspective they are a brilliant way of letting everybody afford university. From another they are a strange device that forces people to go to university to get a job, even if they don't want to. Once nobody has an excuse for not going, not going makes you look like a subversive, dangerous troublemaker or a loser.

“Not going to university makes you look like a subversive dangerous troublemaker or loser.”

The point: Removing a barrier also removes an excuse, which can turn an option into an obligation.

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Taking the doors off abandoned fridges

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In the 1970s a policeman visited Rory's school with a public information film warning children not to climb into abandoned fridges, because the door would close and they would die. Children did die this way. But you could never stop children climbing into fridges: that is just what children like doing. What worked was getting scrapyard dealers to take the doors off, and later magnetic seals replaced latches, so the problem simply vanished. He links this to Pólya's advice to solve a bigger problem of which yours is part.

“You could never stop children climbing into abandoned fridges, but you could make it so that fridges were safer.”

The point: Changing the environment usually beats trying to change behaviour by warning or persuasion.

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Tax inheritance at the recipient

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Rory suggests inheritance tax should vary depending on how many children you have, and be paid at the level of the recipient rather than at the level of the person who dies. That way the tax reflects how concentrated the inherited wealth actually is.

“It should be paid at the level of the recipient, not at the level of the person who dies.”

The point: Shifting where a tax falls can make it fairer without changing its overall purpose.

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Tax wealth more and income less

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As a Georgist, Rory would tax property and non-renewable consumption, including fossil energy, rather than work. Economists all know the difference between rent seeking and value creation, yet never suggest taxing them differently. Whoever owns the house where his daughter lives, split into three flats, never has to work again because they bought it in 1983. In 1988 he could have bought a four-bedroom Notting Hill maisonette over railway tracks for about ten thousand-odd pounds. Of £100 paid to a young London colleague, about £15 ends up discretionary. Young Londoners aren't murderous only because they lack the chronological context.

“The only reason young Londoners aren't actually becoming murderous is they don't really realise how different it used to be.”

The point: Untaxed, unearned asset gains and heavily taxed labour create intergenerational injustice.

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Technological problems are perception problems in disguise

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Rory cites a scientist who believes that if most American smokers switched to electronic cigarettes, smoking-related deaths would fall by two orders of magnitude. The obstacle is not the technology but the network: it is a weird thing to use and people feel uncomfortable doing it. He suggests ageing rock stars could redeem themselves by vaping heavily in public to lend it cool. Electric cars likewise are no longer a technological problem but one of acceptance.

“Technological problems are often marketing problems and perception problems in disguise.”

The point: Adoption depends on social acceptability more than technical merit.

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Tell the geneticists to lie about IQ

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At dinner with a group of geneticists, Rory accepted that IQ may be a single monolithic measure that correlates with much else. But as an advertising man he suggested they ought to lie. The stark single-scale story is unpalatable because it implies ranking human value on a line, so nobody can build policy on it. Say instead that there are different, complementary kinds of intelligence, and you get a story about strengths working together. He then learned from the previous speaker that this is in fact neuroscientific truth, so no lie is needed.

“As an advertising and marketing man, can I make a suggestion? I think you ought to lie.”

The point: How a truth is framed determines whether anyone can act on it; a ranking story repels, a complementarity story enables.

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The 52 diet and the Friday curry

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Rory counts intermittent fasting, the 5:2 diet and meat-free Mondays as clever rule-setting. They are manageable because they apply at specific times. And they leave room for the odd discretionary treat: if you cannot go out once a week for three pints of lager and a curry without worrying about the calories in the jalfrezi, life is not worth living, so you give up. The 5:2 diet seemed to work disproportionately well on blokes for that reason.

“Humans have a certain requirement for the odd discretionary treat.”

The point: Rules that permit indulgence at defined times are more sustainable than constant restriction.

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The advertarian, try persuasion before stuff or force

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Rory describes himself, half in jest, as an 'advertarian'. His observation is that people and especially institutions reach first for physical fixes: engineering, gadgets, energy-hungry technology, or else laws and coercion. Psychological solutions, which change how people feel about or value something, come last if at all. He is careful to say he is not anti-science and does not think reframing cures everything. His claim is narrower: wherever it is possible to change behaviour, persuading people is far better than compelling them, yet governments tend to try compulsion first.

The point: Societies are biased towards material and coercive fixes and neglect cheaper psychological ones, so persuasion should be tried before force.

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The American Dream was a dream because everyone else had a nightmare

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Between 1945 and 1950 the US had half of world GDP: the only country neither poor nor destroyed. Cars, houses, fridges and supermarkets reached median earners decades before anywhere else. Rory's father found 1940s American car magazines like science fiction. The Psycho shower scene had less impact in Britain because a hotel room with its own shower was unheard of. His uncle in Texas in the late 1960s was apologised to for a black-and-white TV in his room; he hadn't expected a TV at all. Part of why it was a dream was that nobody else could share it.

“The American Dream was a dream partly because everybody else was having a bit of a nightmare.”

The point: Satisfaction is relative, so a country cannot recapture a 'dream' that depended on being far ahead of everyone else.

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The American Revolution as a real estate play

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Rory set out to praise 1776 as a great reframing, then read the grievances. The real ones come three-quarters of the way through, like a British business meeting: grievance 17, being prevented from taking land west of the Appalachians, which hurt Washington's land ambitions, and the Ohio Valley being handed to Quebec. 'The Gambino family with wigs on.' Dr Johnson spotted it: why are the loudest yelps for liberty among the drivers of slaves? Life, liberty and the pursuit of happiness was the marketing; land capture was the motive. Perhaps, he muses, we could solve NIMBYism by framing building as libertarian.

“This is the Gambino family with wigs on.”

The point: Lofty framing can mobilise support for motives that would win none if stated plainly.

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The bailout of Greece, or of stupid banks?

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Speaking in Greece, Rory offers a framing example in return for the tax one. Do you call it 'the bailout of Greece', or 'the bailout of a load of stupid banks which lent to Greece'? They are exactly the same thing. But what you call them affects how people react to them, both viscerally and morally.

“Do you call it 'The bailout of Greece'? Or 'The bailout of a load of stupid banks which lent to Greece'?”

The point: Naming and framing an identical policy changes moral and emotional reactions to it.

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The banker no salary could tempt back

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Requiring five days a week in central London means a third of salary goes to landlords: employers pay twice, for the property and for wages to match. Rory met a former top-five Barclays executive who left and worked 'TWT': Tuesday to Thursday in London face to face, the rest from rural France. When another huge bank invited him back, he asked how much they'd have to pay him to give up Mondays and Fridays in France. Talking to his wife, he concluded no amount: a yacht would add far less happiness than London prices and commuting would take away.

“There is no amount of money that makes that worthwhile.”

The point: Flexibility and location can be worth more than any salary increase.

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The British wealth ceiling, Polly, the Labrador and the Aga

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Britain does some things brilliantly, such as Ocado, Octopus Energy and Wise, but never celebrates them: in America you would be feted, here you are treated with mild suspicion. Americans notice that even investment bankers hit a socially acceptable ceiling: a London flat, a former rectory in the Cotswolds, a wife called Polly, a Labrador, two children at private school, a Range Rover and an Aga. Anything more would be slightly dubious, which makes it hard to create a Dyson in the UK.

“There is an acceptable social ceiling to the amount of wealth you have.”

The point: Cultural caps on ambition and suspicion of success suppress entrepreneurship.

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The case for legacy admissions, rooming with a senator's son

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It is brutally true that the real privilege of these schools may lie less in the education than in the peer group. Rory cites a left-wing academic at Penn who instinctively hates legacy admissions, but as a network scientist recognises that part of the value for a disadvantaged student who gets into Penn is rooming with a senator's son. Social mobility partly comes from access to people you would not otherwise meet. Boarding schools also eased regional disadvantage: a brilliant mathematician in Northumberland could get specialist teaching by boarding elsewhere.

“Part of the social mobility is achieved by giving people access to people they wouldn't have met.”

The point: Networks are a major part of what elite institutions confer, so mixing matters.

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The coming intragenerational inequality

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Salaries are taxed very heavily while wealth, especially gains on your main home, is barely taxed. The real problem, one writer argued, will be intragenerational: you can work hard for 30 years, reach eminence in a business, and still live somewhere poor because your parents lived where house prices were low, while juniors whose parents lived in Kensington swan around in palaces and go on cruises. Unearned, inherited wealth is treated generously; earned income is not.

“We've created a system where unearned income, which is not particularly meritocratic, is treated incredibly generously.”

The point: Taxing work heavily and housing wealth lightly makes inheritance, not effort, the main determinant of living standards.

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The English as control rods of Celticness

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Rory suggests some of the Scottish independence movement is adaptive preference formation: Scots enjoy being angry in a way the Welsh do not, so they form beliefs that make sense of their preferred emotional state. He would not want to live in a polity that was 100 per cent Welsh or 100 per cent Scottish. To use a nuclear analogy, our Saxon occupying forces may act as the control rods of Celticness, with beneficial effects at network level.

“Our Saxon occupying forces may have some beneficial effects, the control rods of Celticness.”

The point: People build grievances to fit their emotions, and mixed polities moderate extremes.

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The first 10 per cent is the difficult 10 per cent

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Ask everyone to give up meat forever and everyone says no; ask them to give it up 10 per cent of the time and perhaps 30 to 50 per cent agree. You do not need the whole population to become vegan. Once 10 to 15 per cent are, manufacturers make really good vegan food, restaurants always offer a vegan option, and saying you are vegan this month no longer makes you weird or obliges three hours of justification. Rory predicts that in 100 years eating meat may look as unacceptable as child labour does now, reached one person at a time.

“The first 10% is the difficult 10%.”

The point: Once a minority behaviour passes a modest threshold, supply and social norms shift and make it easy for everyone.

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The footbridge and the dominant assurance contract

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Rory describes the dominant assurance contract, an idea from the economist Alex Tabarrok [?]. A community wants a footbridge over the local motorway, but if everyone is asked for five pounds, free riders hold back, relying on others to pay. Instead an entrepreneur commits to build the bridge and raises money from individuals, carrying the risk: if it's underfunded, they take the loss; if overfunded, they keep the gain. It solves coordination problems and seems made for the internet; Omaze could extend to community projects.

The point: Shifting funding risk to an organiser can overcome free riding on public goods.

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The free car nobody could afford to accept

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Twice Rory and his wife, replacing an old car with an electric one, tried to give the old car away rather than sell it: once to someone who walked to work and helped relatives of theirs, once to someone very helpful to Rory's father. Both turned it down because they couldn't afford the running costs. That made him realise how poverty constrains even free opportunities, and why a lump sum at the start of adult life could transform people's prospects.

“In both cases they turned it down because they couldn't afford the running costs.”

The point: Without a cash cushion, even a free asset can be unaffordable to take.

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The higher twaddle, importing American debates

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A former chief executive, when interviewed, would talk about the Fed and Janet Yellen rather than advertising: the 'higher twaddle', a signal that you only debate at the highest level. Brits do the same by adopting American causes instead of local problems like this building's batshit door numbering. On defunding the US police, Rory says his responsibility for America's criminal justice system ended in 1776. In 1965 Britain was about 97 per cent white, so American narratives don't map onto British history. Scotland gets coverage because of a divisive question, while the mayor of Manchester gets none.

“My responsibility for what I think is a terrible criminal justice system of the United States ended in 1776.”

The point: Status-seeking draws attention to grand, imported, divisive debates and away from solvable local problems.

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The instant prostate test

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If there were a button men could press for a prostate test with an instant result, Rory says, everybody would press it. His theory for why people avoid the test is the variable nobody has tried to optimise: the delay between test and result, because the brain hates uncertainty. Marketing already knows this; a very successful way to sell credit cards online is 'approved within 10 minutes'. Take that insight into medicine. The reasons we give for not doing things may not be the real ones, and only experimentation will reveal them.

“The human brain absolutely hates uncertainty.”

The point: Reducing the anxious wait for an answer may unlock behaviours that people claim to avoid for other reasons.

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The libertarian governor who funded roads and schools

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Gary Johnson, libertarian governor of New Mexico and later presidential candidate, was a kind of Ron Swanson in government. He disliked all public spending except roads and education, which he believed genuinely had to be collective goods: if you want economic growth, he said, you need a four-lane highway. By narrowly defining what government was for, he was by all accounts a pretty good governor.

“If you want economic growth, you need a four-lane highway.”

The point: Clarity about which goods are genuinely collective makes for focused, effective government.

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The logical people haven't solved it either

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Rory has rows with his wife because, about 10 per cent of the time, when Trump does something bonkers, he offers one defence: it is not as if the logical people solved this problem. Attacking both sides in a conflict, which is standard primate behaviour, makes no sense in conventional diplomacy but may be clever in game-theory terms. Really bright Harvard graduates stared at some problems for 25 years and got nowhere. The only thing you can say with confidence is that it was not working.

“It's not like all the logical people solved this problem.”

The point: When conventional expertise has long failed, unconventional approaches deserve a hearing, however unappealing their source.

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The longevity commission that ignored premature death

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Rory sat on a longevity commission. On a poverty commission it would be axiomatic to start with the very poor, not someone who cannot afford a second jacuzzi. Yet the longevity commission never said: before anything else, look at the causes of really premature death. Between 20 and 40, mental health and suicide are probably the greatest risks, and Nassim Taleb's 'don't travel in helicopters' is about the most relevant advice. Yet health advice given to the young is mostly advice suited to the old.

The point: Policy should prioritise the worst and earliest losses, but institutions default to averages and to the old.

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The mansion tax as a shot across the bows

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Property has become a sanctified asset class: you can borrow far more against it than against shares, and governments dare not tax it for fear of Daily Mail sob stories about old women forced from their homes, while £300,000 of IBM gains pays full capital gains tax. Rory welcomes the mansion tax as a shot across the bows that punctures confidence in property's sanctity, since everyone knows a tax starting at £2.5 million will creep down. And if you cannot afford £25,000 a year on a seven-figure house, it will be dilapidated within ten years anyway.

“What are you doing sitting on a seven-figure asset if you can't afford £25,000 to go and have a jolly once a year?”

The point: Treating housing as untouchable diverts money from productive investment; even a small tax changes expectations.

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The migrant who didn't want to go

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Rory raises something he says no white middle-class person considers about economic migrants: they may not personally want to go. A Western 23-year-old told by parents to study law instead of contemporary dance goes bananas and does dance anyway, but many migrants come from cultures where you do as you're told. How does a 23-year-old raise the 8,000 or so needed for the trip? His hunch: extended families pool resources to send someone who sends money back, and that person may not want to be making the journey.

The point: Assuming individual choice where family obligation drives behaviour misreads a policy problem.

Sources (1)

The Minnesota zipper merge

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Where two lanes merge into one, drivers face a heuristic conflict: merge late and be accused of queue jumping, which in Britain ranks alongside paedophilia, or merge early and waste road. Minnesota simply invented a name, the zipper merge: stay in lane, go to the end, take turns. Once it had a word it became a social norm. Ten cars at a time would be more efficient on paper, but people cheat on counting. The simple rule reportedly cut accidents and sped traffic.

“They just invented a word for it, the zipper merge, and suddenly when you've got a word for it, it can become a social norm.”

The point: Naming a behaviour can create a social norm without any compulsion.

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The most left-wing person on the alt-right

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Rory says he aspires to be the most left-wing person on the alt-right: he finds its conversation interesting but tries not to become part of it. Writing for The Spectator, he occasionally praises Henry George or Karl Marx just to shake things up. On Marx, a bloody interesting guy, his verdict is that the diagnosis is fascinating and the prescription is terrible.

“The diagnosis is fascinating and the prescription is terrible.”

The point: You can take insight from a thinker's analysis without accepting their remedy, and avoid tribal packages.

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The most valuable thing Rory did, vaping and the nudge unit

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Rory, a long-time smoker who finally quit by switching to vaping, went to the government's Behavioural Insights Team, under David Halpern, with two warnings. First, e-cigarettes replicate the habit of smoking, not just the nicotine, unlike patches and gum, so they could be a major source of harm reduction and help people quit. Second, half the health and anti-smoking lobby would fanatically try to ban them. The team asked the Cameron government for light-touch regulation, while some countries moved towards bans and the US banned Juul. He calls it possibly the most valuable thing he did, almost by accident.

The point: Substitutes that replicate a habit's ritual work better than ones that only replace the chemical, and policy should not ban harm reduction.

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The no-carbohydrate diet versus calorie counting

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A nutritionist's logical advice is to set a calorie limit and stick to it, but that requires constant System 2 policing to eat smaller meals than you want, which is tiring. 'I don't eat carbohydrates' needs one decision a week in the shop; after that there is nothing in the house to resist. Rory lost weight this way. You might be fired as a government food scientist for recommending it, because policy designers must look rational, yet behaviourally it is far easier to follow. No one ever got fired for being too rational.

“No one ever gets fired, to use that old IBM slogan, for being too rational.”

The point: The best behavioural solution often looks irrational, and people whose status depends on looking rational avoid it.

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The north-south polo shirt button line

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As an example of regional herd norms, Rory mentions something he has heard: in the north of England everybody wears a polo shirt with the top button done up, and there is a line somewhere across the UK below which everybody wears it with the top button undone.

“There's some line across the UK geography below which everybody wears a polo shirt with the top button undone.”

The point: Trivial local norms show how strongly people copy those around them.

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The officer's arm in the trenches

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Rory's grandfather, a doctor, had a driver who had served in the First World War trenches. Their officer, not hated, just green and overeager, climbed the ladder with his Webley revolver shouting 'Come on men, forward!' Shrapnel took off his arm, which flew five feet and landed in the mud still holding the revolver, and the men burst out laughing. He survived with a Blighty wound. Rory doesn't want to return to that world, but nor to one so harm-averse that you need only hypothesise someone might be offended.

“You don't even need someone to be offended, you just need to be able to hypothesise that someone might be offended.”

The point: Society has swung from callousness to extreme harm aversion; neither extreme is workable.

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The Pill and births outside marriage

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Rory cites Louise Perry's point that the contraceptive pill was followed by an increase in births outside wedlock. Everyone at the time would have predicted the opposite as a definite consequence. It illustrates that huge swathes of things work, or fail, for tacit reasons we don't understand, can't define and can't attach a number to, which he thinks conservatives acknowledge better than a left that prizes mental neatness.

The point: Interventions in complex social systems routinely produce the opposite of their obvious effect.

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The pirates' grandchildren became accountants

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Rory's diagnosis of Britain: it was a very successful country of creators, inventors and pirates, and the pirates and inventors were so successful that their grandchildren became accountants. Marketing and innovation are the interesting, probabilistic parts of business, yet the FT and The Economist barely cover marketing, though it is half of innovation. Getting people to adopt a good idea is arguably harder than having it.

“The pirates and inventors were so successful that their grandchildren became accountants.”

The point: A culture that has drifted from risk-taking to accounting undervalues marketing and innovation.

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The private school that wanted careers talks from civil servants

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Rory thinks Labour's tax on private schools was driven by symbolism, not revenue, and hits the schools least guilty of unfair privilege. But the sector did itself no favours: fees barely varied, almost like price-fixing, and little financial help was offered. At his daughter's school, nearly all parents came from finance, real estate or their own businesses. The school sent an impassioned plea for parents to give careers talks: lots of offers from banking, but nobody from the public sector or civil service. At 30,000 a year, maybe the answer was staring them in the face.

“30,000 a year, maybe the answer's staring you in the face.”

The point: Pricing narrowed private schools' social base, weakening their claim to serve the community.

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The rich love immigration because their housekeeper is wonderful

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Rory is benignly disposed to immigration within reason, but believes democracy obliges him to hear out a large share of the population who disagree, because their circumstances differ. One annoying thing is very rich people who are pro-immigration because their Polish housekeeper is wonderful: an experience not shared by the other 98 per cent. Labelling people who oppose uncontrolled immigration far right, or calling them deplorables, makes them gang up and others stay silent, so you lose the debate and perspective. Paul Collier's balanced assessment changed his mind a bit.

“Depending on where you are, you see the world differently. That's inevitable.”

The point: Personal circumstances shape views, and vilifying majority opinions silences information you need.

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The senior railcard goes to the wrong age group

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The day after his 60th birthday, Rory shows off his new senior railcard, then calls it absurd. At 60 you have probably paid off your mortgage, your children have left home and you do not have many expenses. So why give you a third off rail travel? There should really be a railcard for people in their thirties and forties, the ones with the bills.

“Why do we give you a third off rail travel? There should really be a railcard for people in their 30s and 40s.”

The point: Concessions follow age conventions rather than actual need, so they often subsidise those who need them least.

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The Sheffield rally and the purity spiral

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Much demonstration culture is counterproductive: it makes participants feel great while everyone else hates it. Neil Kinnock's triumphant rally on the eve of the 1992 election felt fantastic in the hall, but it was broadcast on television. Groups fall into purity spirals, adopting ever more extreme positions to signal adherence, a kind of runaway signalling that, observed by outsiders, sets the cause back. We also suffer survivorship bias about protests: we forget the failed ones, like the anti-Catholic protests of the early 19th century, or CND, which had better arguments than PR advisers.

“It makes you feel great, but everybody else hates it.”

The point: Signals designed to impress the in-group often repel the audience a movement needs to persuade.

Sources (1)

The status-seeking rich used to fund R&D for everyone

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Beyond economic inequality there is instrumental inequality: the difference between what the rich can do and what others can. Rory's grandparents had the fourth dishwasher in Wales, costing nearly as much as a car, a status symbol that was also transformational. Historically the rich funded early washing machines, TVs and radios, which mass manufacture then made affordable. Their status-seeking was in effect an R&D programme for the wider population. Uber Lux, a chauffeur for £20 or £30, shows how tech now spreads such advantages. Spending surplus on property or seats at the front of the plane performs no such function.

“The status seeking of rich people was a kind of R&D funding exercise for the wider population.”

The point: Inequality is socially useful when the rich buy genuinely new instrumental goods that later become cheap for everyone.

Sources (1)

The student who had never seen hummus

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Rory is optimistic about Gen Z, whom he finds more sophisticated and informed than his own generation. One unsung benefit of the internet is that it has massively reduced geographic inequality in access to information. He read of someone from a deprived background arriving at university 15 or 20 years ago and being offered hummus without knowing what it was; his own sophisticated architect aunt had never eaten a bagel. Growing up in a provincial milieu once denied you a whole level of stimulus available in London or Manchester.

The point: Digital access has quietly levelled cultural opportunity between regions, an under-credited gain.

Sources (1)

The Sun's Maxwell ad and jokes that would not run today

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Shortly after Robert Maxwell, owner of the Daily Mirror, fell from his yacht and was revealed to have raided the pension fund, the Sun was in a price war with the Mirror. When the Mirror put its price back up to 30p, the Sun ran an ad on the London Underground telling readers not to go overboard to buy it. Nobody complained; Rory's brother, back from the US, cried with laughter on the Piccadilly line. Rory says he could show 20 or 30 ads from the 1980s, one of them in an awards annual, that would practically get you arrested now.

The point: Tolerance for irreverent humour in advertising has shrunk dramatically within living memory.

Sources (1)

The super-rich don't care about one vote

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The UK was second in the world for millionaire departures in 2024, behind China. Rory warns that the super-rich do not care much about democracy: they can capture power with money rather than rights, and a vote is worth no more to them than to the teacher down the street. Dubai has made itself attractive with low taxes, low crime and cheap service labour. So it is unsurprising that the very rich are drawn to authoritarian places: they avoid the downside and profit from the upside.

“Why would I want something I can't have more of than somebody else?”

The point: What different groups value from a country varies, and the rich value services and security over political rights.

Sources (1)

The tantric sector

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Rory notes Britain is a high-trust economy: its biggest political corruption scandal in a decade involved someone possibly claiming for a motor home, which most countries would hardly call corruption. Yet it behaves as if corrupt, with costly checks. In The Spectator he named procurement, compliance and HR the tantric sector, after the public and private sectors: their real cost is not salaries but how they slow everything down. When Notre-Dame was rebuilt, regulations were waived except health and safety, which he defends since nobody should die fitting a gargoyle. Billions were spent on HS2 before a mile of track was laid.

“It's the tantric sector because the purpose is to make everything go on for ages and ages without actually reaching a climax.”

The point: The hidden cost of process-heavy functions is delay, and Britain's problem is less inefficiency than slowness.

Sources (1)

The tax system can't tell a developer from a slum landlord

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Rory calls himself pretty right-wing and a capitalist, but uncomfortable that people bracket land and capital together as if they were the same. The tax system doesn't distinguish between a property developer and a slum landlord: the developer creates value, the slum landlord purely extracts it. As a Georgist, he would leave imaginative development, like turning a disused store into 100 flats, almost untaxed, while taxing the extractive use of simply owning land and making people pay to live on it quite heavily.

“The property developer is creating value and the slum landlord is purely extracting it.”

The point: Tax policy should separate value creation on land from rent extraction from land.

Sources (1)

The unreliable ally and the ideology onesie

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Rory's idea of the 'unreliable ally': if from one of your views I can accurately predict everything else you believe, you're probably not a serious thinker, because you've put your entire ideology on as a onesie. He likens most people's interest in politics to his interest in Star Wars: he'll watch it if it's on, but won't go to a convention dressed as Darth Vader. Politics is full of people who do dress as Darth Vader. Following Dominic Cummings, ordinary people are both more left-wing and more right-wing than politicians realise.

“You've put your entire world ideology on as a onesie.”

The point: Independent thinkers hold unpredictable combinations of views; tribal packages signal loyalty, not thought.

Sources (1)

The van sign that listed what was inside

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Thames Valley Police used notices in vans saying no tools are kept in the vehicle overnight, to deter speculative break-ins. Rory's team suggested varying and reversing them for humour: overnight this van contains a three-day-old newspaper, two empty packets and a small bag of screws, but no tools. The police said such a thing could never be recommended in a police setting. Rory sees an institutional instinct, especially in politics, to show you care about a problem rather than solve it, which pushes people towards direct, rational-looking responses over oblique, funny ones that might work better.

“I don't really want to solve the problem, I want to show that I care about the problem.”

The point: The need to be seen tackling a problem directly rules out oblique solutions that might work better.

Sources (1)

The young are broke because of rent, not tax

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Everyone complains about income tax rates, but Rory argues the younger generation is skint mainly because of rent. Employers like his own demand that staff live in or near the most expensive real estate in Europe. Dual-income households, and the need to stay near university friends, have made life increasingly centripetal, pulling people into huge expensive cities. He suspects part of Dubai's appeal is simply getting more for your money.

“The reason the younger generation is skint is rent, not tax, predominantly.”

The point: Debate fixates on the visible cost (tax) while the larger burden (housing location) goes unexamined.

Sources (1)

TK Maxx made it impossible to tell who is rich

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At 59 Rory has a chronological context for what has improved since he was 15, which his twenty-something children lack. One underrated example: TK Maxx is enormously important economically and socially. When he was a child you could tell how rich people were from their clothes. Now you cannot, because someone might be immensely wealthy or just a very shrewd user of TK Maxx. Unless you are Anna Wintour, you really cannot tell.

“Unless you're Anna Wintour, you really can't tell.”

The point: Cheap access to good clothing has quietly erased a visible marker of class.

Sources (1)

Trump found the thermal exhaust port on the liberal Death Star

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Rory argues Trump is instinctively clever rather than intellectually clever, with a real-estate salesman's instincts. He knew that crossing a speech-code line a little, saying 'bad hombres', would make the press and campus liberals react with disgust and accuse him of racism, and that the reaction would be net electorally helpful where he needed to win. People hate being treated with contempt. It also bought vastly disproportionate publicity: being five times more famous than rival candidates simply works.

“He found the thermal exhaust port on the liberal Death Star.”

The point: Provoking a predictable overreaction from opponents can be a deliberate and effective strategy, because contempt alienates onlookers and noise buys fame.

Sources (1)

Trump's wall, the power of an irrational threat

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Both candidates wanted manufacturing jobs back. Clinton's answer was logical: tripartite trade talks. Trump said he would build a wall and make Mexico pay. Rory doubts the wall will be built, but argues it need not be: carmakers who had assumed no patriotic duty to American workers simply needed a signal that the assumption was no longer safe. The threat alone is enough, and Clinton could never have made one convincingly. Being rational means being predictable, and being predictable makes you weak.

“A rational leader suggests changing course to avoid a storm. An irrational one can change the weather.”

The point: Unpredictability lends credibility to threats, so irrational actors can achieve what rational ones cannot.

Sources (1)
  • Alchemy (book preview: foreword and opening of chapter 1) Rory Sutherland, Alchemy (2019), 2019

Twitter makes mad people easy to find

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Rory argues that outrage at adverts usually involves about ten people. In the old days reporting meant leaving the office to canvass opinion, so people with extreme views were hard to find because there were few of them. On Twitter a journalist just searches a hashtag, finds some mad people, cuts and pastes, and puts it in the paper. The mainstream media, not social media, are most to blame for making a minority view look mainstream.

“There'll be some mad people here. Oh, look, here they are. Cut and paste. Put it in the newspaper.”

The point: Search makes extreme opinions trivially cheap to find, so media reporting inflates fringe outrage into apparent consensus.

Sources (1)

Two weeks' block leave in the City

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Rory admires the City rule that traders must take two weeks of contiguous holiday every year. Anybody can cover up wrongdoing for a couple of days out of the office, but you probably cannot hide dodgy dealings if you are away for two weeks. It is a heuristic rule at one remove from what it is trying to achieve, but clear-cut and easy to enforce, and it solves the problem laterally rather than literally.

“It solves the problem laterally rather than literally.”

The point: Oblique, simple rules can police a hidden behaviour more effectively than direct rules aimed at it.

Sources (1)

Two-career couples can only live in about ten places

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Instead of HS2, Rory relays a better idea: a high-speed line across the north from Liverpool to Newcastle via Manchester, Leeds and York, creating a well-connected megalopolis to counterbalance London. Someone pointed out that now both partners usually work, if neither can commute to a nearby city, you can never move: you must find two jobs in the same place. When both of you work, the number of places where you can both find good jobs shrinks to about ten, which is partly why London becomes so enormous.

“The number of places in the world where you can both find optimal jobs becomes reduced to about ten.”

The point: Short regional commutes matter more for growth than shaving minutes off trips to the capital, because households now need two jobs.

Sources (1)

Two-factor authentication beat his father

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Rory's father, who died at 93, was a keen internet user who sold books on Amazon into his eighties and first told Rory about Google. At about 88 he gave up, defeated by two-factor authentication. Rory, who leaves his phone in another room at home, is equally sick of trekking back for codes. For each retailer the security step is rational, just as each site's cookie banner is legally required, but when everyone does it the whole medium fills with sludge. He notes Dominic Cummings was baffled that Britain kept the EU-derived cookie rules after Brexit.

“When everybody does it, you have created a fundamental sludge in the entire experience of the whole medium.”

The point: Measures rational for each actor can add up to a category-wide burden that drives users away.

Sources (1)

Unlucky then, irresponsible now

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At 11, Rory cycled 11 miles alone to see his grandmother and wandered on the roof 30 feet up; his parents, told years later, were aghast. Then it was normal. Had he been hit by a car or abducted in 1975, his parents would have been called unlucky; now they'd be blamed as irresponsible. He was in fact hit, his fault, and nobody blamed them. Social norms have thresholds: once a behaviour becomes rare it becomes weird, as with middle-class tattoos, veganism, men in shorts or naturism. Sometimes the tipping point never comes.

“My parents would have been described as unlucky.”

The point: Norms shift non-linearly: past a threshold, a common behaviour becomes deviant and blameworthy, or vice versa.

Sources (1)

Using empty coffee shops in the evening

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Discussing death cafés and death doulas, Rory says that something dressed up in new-age mumbo jumbo can still serve a perfectly valuable purpose. There are also café churches: coffee shops, unlike pubs, tend to be closed in the evening, making them a valuable space. He favours anything that gets people in a community together face to face at the same time, just as he favours cutting the rates and tax burden on pubs, which are a social amenity as much as a commercial exchange.

“Pubs are a social amenity as much as they are a pure commercial exchange.”

The point: Idle commercial spaces and social venues have community value that tax and policy ignore.

Sources (1)

Video removed invisible geographical discrimination

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The same people gutted by small Brexit tariffs on goods should be thrilled by Zoom and online courses, because the movement of ideas matters more for enriching humanity, isn't zero-sum and creates little carbon. Taking Nudgestock online revealed invisible geographical discrimination: a one-day London course costs a Londoner 400 pounds, someone from Glasgow 1,500, someone from Cape Town 4,000, and rural Botswana not at all. In lockdown Rory attended a Duke University course on insect epidemiology that no finance department would have flown him to.

“What really matters in enriching humanity is the movement of ideas, not the movement of goods.”

The point: Remote access levels the field for the curious who don't live in megacities.

Sources (1)

Voted Remain, turned off by Remainers' certainty

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Rory voted Remain, but became sympathetic to Leave because he was horrified that ardent Remainers didn't merely disagree: they were incapable of acknowledging a contrary opinion. The quality of the decision was unknowable for 10 or 15 years, so being that certain struck him as alarming. Life is deeply ambiguous; to stay sane we have to believe contradictory things. Our education system is about winning arguments, and there's something hubristic in a rationality where it's not enough to be right, you must prove everyone else completely wrong.

“In rationality it's not enough to be right, you have to prove that everybody else is completely wrong.”

The point: Moral certainty about inherently uncertain choices alienates even natural allies.

Sources (1)

Wait 20 seconds and you won't do it

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Rory suggests tweaks could make social media less nasty, such as a short delay before posting. An idea advanced partly by Ogilvy and a sister WPP agency in a campaign against knife crime is that if you can get anyone to wait about 20 seconds, they don't do it: there's a surge of anger, and if you wait for it to subside you almost certainly moderate what you say or do. The campaign's premise was: don't end up with a nine-year sentence for the sake of 30 seconds.

“If you can get anybody to wait 20 seconds, they don't do it.”

The point: A brief enforced pause defuses impulsive anger, online or offline.

Sources (1)

We'd all press our noses to the glass for a fight

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Why is everyone on such a hair trigger? Rory doesn't just blame social media. Mainstream journalism always has an interest in provoking a fight, because nobody reads about peace and harmony. That's evolutionary: hear a fight break out across the street and we'd be at the window, noses pressed to the glass; people amicably discussing the weather we'd ignore. Social media merely supplies the tools: in 1975 finding someone outraged by an advert took legwork; now it's one search on X. Add purity spirals of signalled sensitivity.

“Nobody's interested in reading about peace and harmony.”

The point: Our evolved attention to conflict makes outrage profitable, and new tools make it trivially easy to manufacture.

Sources (1)

What sending an intimate photo took in 1987

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Boomers call Gen Z weird for sending each other intimate photos. Rory describes what it would have taken in 1987: shoot blind on a 36-exposure roll, finish the film on birthday parties and your mum, avoid the local Snappy Snaps where a schoolmate's sister worked, travel to another town to develop it under a false name, ring your girlfriend from a phone box, then post it and hope her mother did not open the letter. At the age they might have wanted to, it simply was not practical.

“At the age at which it were possible we might conceive of such an idea, it wasn't really practically possible.”

The point: Behaviour blamed on a generation's character is often just newly enabled by technology.

Sources (1)

When an avocado was a starter

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Rory remembers his first avocado, on speech day in Monmouth around 1980. It was called an avocado pear and served as a starter on its own, with a spoon and a bit of vinaigrette, because you could not buy them in shops. Restaurants even served a small glass of orange juice as a starter. Young people eat avocados because they are cheap and abundant. Much Gen Z behaviour that baffles the old comes from being young and from a different context, not different genetics.

“You couldn't get avocados, and we loved them.”

The point: Innate urges stay constant; context and availability change how they are expressed.

Sources (1)

When London prices rise, people can't leave

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Standard economics predicts that as London houses get more expensive, people take the win and move to the country. Instead, when prices rise, many who want to leave cannot, frightened of missing future gains or of never being able to move back. Rory contrasts the crude oil market, which probably does behave as economists predict: higher prices bring more selling, discovery and pumping. The property market, for some and maybe most people, behaves exactly the opposite way. As a physicist said, imagine how difficult physics would be if atoms could think.

“Imagine how difficult physics would be if atoms could think.”

The point: Some markets reach equilibrium and others run backwards, because people's fears and expectations depend on context.

Sources (1)

When you were the only person with a mobile

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Rory recalls that being the only person with a mobile phone was brilliant: nobody expected you to have one, so they never called you, but you could call them and be a pain in the neck from the top of a mountain. The annoying part came when mobiles became universal and arrived with an expectation. He doubts a device that brings you everything, everywhere, all the time is mentally healthy.

“You could call them and be a pain in the ass from the top of a mountain.”

The point: Technologies confer advantage while rare and impose obligations once universal.

Sources (1)

Why don't Coca-Cola and Nestlé campaign for redistribution?

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Agreeing with Gary Stevenson that representative-agent models hide inequality, Rory wonders why consumer packaged goods companies do not campaign for more income redistribution. Coca-Cola, McDonald's or Nestlé would much rather have a large middle class buying their products. When people become super-rich there is no corresponding benefit to them: Jeff Bezos spends less on shampoo than Rory does, for obvious physical reasons.

“Jeff Bezos spends less on shampoo than I do, for obvious physical reasons in his case.”

The point: Mass-market businesses benefit from a broad middle class, not from concentrated wealth.

Sources (1)

Why drinking and smoking can be rational on little money

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The standard narrative says give poor people a lump sum and they'll do silly things with it, yet the evidence from effective altruism suggests, to a remarkable extent, they don't. Rory goes further: if you have very little money, drinking and smoking a lot is actually quite rational, because they are considerable pleasures that don't mess with your cash flow. He notes that John Reid, as Health Secretary, was himself a fairly secret smoker.

“They're quite considerable pleasures which don't mess with your cash flow.”

The point: Behaviour that looks irrational may be a sensible response to tight cash-flow constraints.

Sources (1)

Why NHS doctors must say things are terrible

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The NHS has an informational problem nobody discusses. In America the hospital's customer is ultimately the patient, so a Mayo Clinic doctor who says it's understaffed with patients in corridors will be shunned for scaring away customers. In the NHS the funder is the government, so the collectively healthy line is that everything is dreadful. A consultant who went on Sky News saying he knocks off early on Fridays, has a house in Spain and all the funding he wants would never be spoken to again. Rory's own NHS experience was better than expected, though its interface is poor.

“None of the other doctors will ever speak to you ever again because you've broken the rule which is you have to say how bad things are.”

The point: Where funding comes from shapes what insiders say, creating systematic informational bias.

Sources (1)

Why right-wingers like a basic income

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People on the right say they resist redistribution because 'it's my money'. Yet many right-wingers, Richard Nixon, Milton Friedman, Rory's own fairly right-wing grandfather, liked a guaranteed basic income, which is quite redistributive. Rory's guess: it preserves desert. If you work ten hours more than the man next door, you're ten hours richer. Monkeys behave like economists alone, but add a second monkey and fairness kicks in. The reasons people give are post-rationalisations of a deeper emotional response.

“The monkey brain basically controls your behaviour through emotions. It doesn't come with reasons attached.”

The point: Policy should be designed around what people actually find fair, not the reasons they state.

Sources (1)

Why the minimum wage works psychologically

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The right can change its mind: the minimum wage runs completely contrary to extreme neoliberal dogma, yet Rory thinks it is a good idea, for a psychological reason. Many hiring decisions run on the lazy heuristic of paying as little as you can, because that is easy to defend in a boardroom. The minimum wage stops that. The risk is that it becomes a target as well as a floor. His general stance: try these things and watch what happens.

“A lot of hiring decisions are taken on the lazy heuristic of pay as little as you can, because that's an easy decision to defend.”

The point: Rules can usefully override defensible but harmful organisational defaults.

Sources (1)

Why winning slogans look backwards

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Rory cites German sociologist Hartmut Rosa on social acceleration since the Industrial Revolution: an explosion of choice that leaves us permanently unsatisfied. Political slogans reveal the disquiet: Make America Great Again and Take Back Control look to the past, and he admits a soft spot for the AfD line Germany, but normal. Using David Rock's SCARF model, he argues acceleration plus automation and unaccountable systems make people miserable by eroding status, certainty, autonomy, relatedness and fairness. You would be tone deaf not to notice unease at change imposed as if inevitable.

“There is some source of disquiet with the pace of change or the extent to which it is being imposed without asking people.”

The point: Unchecked acceleration and automation erode basic psychological needs, fuelling backlash politics.

Sources (1)

With a devo max option, independence would have lost heavily

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To show that choice architecture matters, Rory points to the Scottish independence referendum. Had voters been given a middle option, nothing, devo max or independence, there was not a chance in hell of a majority for independence. What you are given to choose from determines what you choose, in a far more complex way than standard choice theory suggests.

“What you're given to choose from determines what you choose.”

The point: Adding or removing an option reshapes outcomes, so the menu is as powerful as the preferences.

Sources (1)

You need the conspiracy theorists around

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Natural dissenters, conspiracy theorists and nutters can be a pain, Rory says, but you need them around because sometimes they are right. He is annoyed by people who believe every conspiracy theory: maybe they did land on the moon, maybe Oswald did shoot JFK. But it is highly unlikely conspiracy theorists are wrong about everything. Their particular theory may be wrong while their doubting of the official narrative is perfectly healthy. We like narratives because they simplify.

“It's highly unlikely that conspiracy theorists are wrong about everything.”

The point: Dissent is a useful check on official narratives even when the dissenters are often wrong.

Sources (1)

Your stock portfolio needs my children

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The tax system does remarkably little for parents, unlike France, though having children is partly an investment for wider society. When Rory grumbled about the cost of children, a childless friend said it was his choice. Rory replied that the friend's stock portfolio wouldn't be worth very much if the entire UK stopped breeding. A lot of this depends on futurity.

“Your stock portfolio won't be worth very much if basically the entire UK stops breeding.”

The point: Parents bear private costs for a future that benefits everyone, which argues for supporting them.

Sources (1)

Personal anecdotes 96

Accidentally famous on TikTok

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During lockdown Rory did a huge number of podcasts, reasoning that talking to 2,000 people beat talking to nobody. A young aspiring film student then began cutting the footage into TikToks: portrait format, captions because children watch at school with the sound off, a few animations. Rory had no idea until his own child said: 'Dad, you're a fat 59-year-old man. What the hell are you doing on TikTok?' Soon afterwards he was being mobbed by schoolchildren in the street. Had he proposed it to Ogilvy, they would have said nobody wants a fat 59-year-old man talking about marketing. He takes two lessons: fame has value in itself, because opportunities come to you, and its benefits are rarely the ones you intended.

“Dad, you're a fat 59-year-old man. What the hell are you doing on TikTok?”

The point: Putting lots of material into the world widens your exposure to lucky breaks no plan would have chosen, and plain fame is valuable because opportunities then come to you.

Variants: He draws different morals in different tellings: that advertising undervalues simple fame next to micro-targeting, that something not making sense is a reason to do it, and Taleb's line about increasing 'your surface area exposure to positive upside optionality'.

Sources (4)

Fighting his brother for the Sunday Times ads

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In the early to mid-1970s, the golden age of British press advertising, Rory and his brother, 18 months older, fought over who got the Sunday Times colour supplement first, mainly to read the ads rather than the articles. Many were by Collett Dickenson Pearce, the agency that had persuaded the Sunday Times to launch the supplement, and they were funny, witty and intelligent. One made them laugh out loud: a double-page spread of printed lemon slices to cut out, asking why, if you would not pay for Smirnoff, you would waste money on real lemons. Growing up somewhere provincial and starved of other stimulus, those ads were a big part of his cultural life. When people said the ads were better than the programmes, that was often true.

“We fought basically to read the ads because they were funny, witty, intelligent.”

The point: Witty, playful advertising becomes something people seek out and value as culture in its own right, rather than something they avoid.

Variants: The tellings end differently: with a BBH Levi's cinema ad set behind the Iron Curtain as an epiphany, with advertising sitting in his Venn diagram between well paid and interesting, or with a lament that such mischief is now in remission.

Sources (3)

Not a wider toaster, narrower bread

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Working in an ad agency's creative department exercises the muscle of looking at everything the opposite way round, and it spills into private life. With young children at home, Rory's wife sent him out to buy one of those wide-slot toasters. He came back with a bread-slicing machine, arguing that what they needed was not a wider toaster but narrower bread. It was a terrible decision: the slicer was basically a circular saw, took up huge space and sat in a kitchen with toddlers. But the habit is often right. Archimedes stopped fixating on the crown and measured the water it displaced, and when you go to buy something it is worth asking what from a completely different category solves the same problem.

“What we need isn't a wider toaster, what we need is narrower bread.”

The point: Inverting the problem, or looking in another category for something that meets the same need, reveals solutions that comparing options within one category never will, though not always sensible ones.

Variants: One telling makes it a buying heuristic, citing how hard Zopa and Streetcar found it to move people from 'what car should I buy?' to a lateral answer; another links it to TRIZ's advice to focus on not-X instead of X.

Sources (3)

The fourth dishwasher in Wales

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Rory's silly boast: his grandparents were the fourth family in Wales to own a dishwasher. It was a New Zealand-made Dishmaster, bought around 1959 to 1961, and it is still working; one is in the Science Museum. It cost £80 when their five-bedroom house had cost £4,000, so by that ratio a modern dishwasher would cost a fortune. He uses it to show that what becomes a utility starts as a luxury good. Status-seekers fund early technology: domestic electricity was probably installed as much for status as for use, and there must have been a period when cars were objectively worse than a horse and cart, yet people bought them to show off. The show-offs pay for the scale that later makes things cheap for everyone.

“What becomes a utility starts as a luxury good.”

The point: Status spending by early adopters funds innovations before they are good or cheap, which is how luxuries become utilities.

Variants: Another telling puts the price at over a hundred pounds. In one he turns the ratio into a housing argument: in the 1950s a household's possessions roughly equalled the value of its house, whereas Londoners now have £2 million houses and £2,000 cars, because the property market soaks up the discretionary income capitalism should have delivered.

Sources (3)

Wet trousers before going on stage

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Minutes before going on stage in beige trousers, Rory washed his hands and the basin soaked the front of his trousers. Fine in your twenties, not in your fifties, when an audience would assume the worst. The hand dryer was hopeless: he would have had to stand there char-grilling his genitals for half an hour. He was about to flee in a taxi when a miracle happened: it started pouring with rain. So he stood in the street for five or ten minutes until he was soaked all over, and went on stage evenly wet. People wondered whether he had fallen into a swimming pool, which was a far less embarrassing inference than the alternative.

“Sometimes the solution is to dry the wet bits and sometimes the solution is to wet everything else.”

The point: When you cannot remove a problem, change the context so it no longer means what it seemed to; sometimes the answer is the opposite of the obvious fix.

Variants: The culprit is a ski-ramp basin, a basin in spasm or a nozzle a prankster had swivelled upwards. One telling ties it to advertising, which at its best turns a weakness into a strength.

Sources (3)

Cardiff, the Dubai of the 19th century

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Rory's family history follows the modern immigrant pattern: move, open a shop, educate your children. A great-grandfather left peat-digging on a Caithness croft for Edinburgh, intending to join the police, and was told that if he wanted money he should go to South Wales. Coal had made Cardiff the Dubai of its day, the world's greatest coal port, where the first million-pound deal was signed. He got a job in a shop run by Scots, married the shopkeeper's daughter and ran a chain of shops, and within two generations the family had sons at Cambridge and studying medicine. Rory sees the same entrepreneurial phase in every immigrant family's trajectory.

“Cardiff was like the Dubai of the 1890s.”

The point: Migrant families pass through an entrepreneurial shop-then-profession phase that recurs in every boom, and people who venerate enterprise should recognise it.

Variants: The era shifts between tellings, from around 1860 ('the Dubai of the mid-19th century') to the 1890s.

Sources (2)

Marketing is the thing you can always put off till tomorrow

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Rory's father, a property developer, ran a series of small businesses, including pleasure boats and water buses on the Brecon and Monmouthshire Canal. Every time they put an ad in the local paper it worked and made money. So why did they not advertise more? Because in a small business there is always something else to do, not more important but more urgent: a present crisis, emails, a customer, a shortage of Diet Coke. By 7pm you think you should do some marketing, but it can wait till tomorrow. Even after 35 years in marketing, Rory admits he would do the same. The fix is to ring-fence time and attention for it, ideally someone responsible for that and nothing else.

“If you're running a small business, marketing is the thing you can always postpone till tomorrow.”

The point: Important but postponable work is always crowded out by the urgent, so it needs ring-fenced time or a dedicated owner.

Sources (2)

Reading Obvious Adams

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Rory urges everyone to read Obvious Adams by Robert Updegraff, published in 1916, one of David Ogilvy's favourites, only 50 or 60 pages long and about four pounds. For the first pages you will wonder why he recommended such hokey stuff; by page eight it is better than the Harvard Business Review. Its hero succeeds by noticing things too obvious for others to mention. Reading it was one of the epiphanies of Rory's life, partly because it showed him that most people do not think that way by default: his own default way of thinking was less normal than he had assumed, which also explained why people sometimes found him annoying. When he plugs it, it rises to number three in Amazon's marketing chart.

“By page eight, you'll go, this is better than the Harvard Business Review.”

The point: Noticing what is too obvious for others to mention is a lasting source of advantage, and old books often capture such universal truths better than new models.

Sources (2)

Selling how marketers think, not what they do

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Rory says his fame was largely accidental. Marketers usually speak only at marketing conferences to other marketers; the apotheosis is Cannes, where a thousand people descend on a French town to impress the same 47 people. After writing his book, Rory got paid invitations to talk to non-marketing audiences, at conferences about things like compliance, where showing ads was pointless because these people would never make one. So of necessity he talked about how marketers think rather than what they do: ingenious solutions that start from human psychology and work backwards. He discovered that the market for marketing modes of thinking is far larger than the market for marketing output: coders, engineers, finance people and the Bank of Latvia all want it.

“The market for marketing modes of thinking is inordinately greater than the market for what we do.”

The point: A discipline's way of thinking can travel much further than its output, so the bigger market may be selling the method to outsiders rather than the work to insiders.

Variants: One telling puts marketing communications at perhaps 10 per cent of marketing; another borrows Mark Ritson's phrase for marketing's 'magic 180-degree flip'.

Sources (2)

Selling the flat rather than taxing the young

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In the mid-1990s Rory sold a London flat he did not need to sell, partly on principle: he does not believe in being a buy-to-let landlord. He did not think he had the right to buy, through the property market, the right to tax the younger generation. It cost him dearly: about £700,000 in tax-free capital gains, on a flat now worth around a million pounds. A buy-to-let landlord, he argues, creates a kind of indentured servitude, funding retirement cruises through a 25-year-old paying half their after-tax salary in rent. Land ownership, unlike building or farming, is largely extractive, which is why he thinks land value tax should be the main form of taxation.

“What I've done is I've bought the right to tax the younger generation, and I don't think that's a right I should have.”

The point: Treating homes as investment goods rather than use goods turns ownership into rent extraction from younger workers rather than value creation.

Variants: The sale is dated 1994 in one telling and 1996 in the other.

Sources (2)

The best place to stay in Sheffield? Leeds

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In 1989, about to miss the last train to London after a business meeting in Sheffield, Rory and his colleagues asked their host, a local entrepreneur, where the best place to stay in Sheffield was. 'Leeds,' he said, not entirely joking. Rory uses the line to show how far British provincial cities have come. In 1988 nobody outside London knew what a latte was, and he could not wait to get the train back to Euston from Manchester. Going back to Sheffield recently, he found it really interesting, with imaginative restoration of the estate overlooking the town. Now he feels provincial-city envy: they offer London's goodies and variety at lower cost in an accessible format, while London mostly offers redundancy at the cost of being hard to get around.

“We said, where's the best place to stay in Sheffield? He said Leeds.”

The point: Provincial cities have quietly caught up on everyday quality of life, which weakens the case for concentrating everything in the capital.

Sources (2)

The pitches he wishes he had walked away from

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Asked about his failures and the risks he did not take, Rory names one endemic to advertising: an inability to walk away and say no, from being too desperate to please. On a few occasions he pitched strategies he did not believe in, which he felt did not respect a brand built over 20 years. One very large pitch stands out: the person asking the agency to pitch was mad, but the money available was huge, and walking away would have left everybody with FOMO. To this day he wishes he had done the brave thing and said: we are not pitching this because we do not agree with what you are doing. He calls it a failure of over-optimism.

“I wished I'd just done the brave thing and walked away.”

The point: Eagerness to please and fear of missing out make declining a bad opportunity the harder, braver choice, so advisers end up endorsing strategies they know are wrong.

Variants: One telling is about two or three pitches for strategies he disagreed with; the other is about a single large pitch for a mad client.

Sources (2)

Turning on the heating from the Sydney tarmac

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About nine years ago, waiting to take off at Sydney airport, Rory laughed out loud while playing with his phone. His daughter asked what was so funny. He had just turned on the central heating at home. 'Dad, you're such an idiot,' she said: to her it was nothing remarkable, just infrastructure. To Rory, born in 1965, making a boiler click into life on the other side of the world from a handheld device was still childishly magical; at 15 he would have told anyone who predicted it to piss off. It is Douglas Adams's rule: technology invented before you are about 15 is just infrastructure, between 15 and about 40 it is like magic, and after 40 it is all a stupid idea.

“Just for 20 seconds back there, I turned on the central heating at home.”

The point: People treat whatever existed when they grew up as normal, so habituation erases delight in even miraculous improvements and older people notice more of what is new.

Sources (2)

Twin daughters, natural game theorists

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Rory's daughters are twins, but not identical ones, so they are useless for experimental purposes. Each defines herself by what the other is not: one is left-wing, the other right-wing. They are no good at the surface area of a cone or Bayes' theorem, but at game theory they are geniuses. From about the age of five they would pretend not to like a holiday destination in order to extract concessions from him in return for agreeing to go and not playing up.

“They're not identical twins, by the way, so they're useless for experimental purposes.”

The point: The brain is more a game theorist than a calculating engine: people who struggle with formal reasoning can be expert strategic bargainers.

Variants: In one telling the twins are only an opening aside, before he praises Louis Theroux for trying to understand outliers rather than confront them.

Sources (2)

We're not North African, we're West African

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Rory's daughter took a DNA test and found a small share of West African, Ghanaian ancestry, almost certainly via his side. Puzzled that a Ghanaian community in the far north of Scotland would surely have been noticed, he asked Nassim Taleb, who said it was reverse correlation: not Ghanaians in Sutherland but Sutherlands abroad. Sutherland is a surprisingly common name in Ghana, and outside Scotland it is most common in St Vincent and the Grenadines. Shortly afterwards he overheard his daughter tell a friend she was North African, and shouted: 'We're not North African, we're West African!' He had known of this identity for barely an hour or two, yet felt instinctively misrepresented.

“We're not North African, we're West African!”

The point: Tribal identity attaches instantly and irrationally, even to a heritage discovered minutes earlier, so it is better channelled into harmless outlets than wished away.

Variants: His daughter's share is 2 to 3 per cent in one telling and 6 per cent in another, and the gap before his outburst ranges from 20 minutes to two hours.

Sources (2)

Would he have bought an EV if his brother hadn't?

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Rory is a well-known advocate of electric cars and can list many reasons he bought one. But he asked himself an honest question: would he have bought his first electric car if his brother, a physicist and science nerd, had not bought one first? The answer was no; he would not have had the balls to be the first person he knew to do it. That makes him a 'one-er', someone who adopts once one person he knows has. Others are two-ers, fivers or tenners. Everyone has a social-proof threshold for a new behaviour, which is why the Bass diffusion curve is sigmoid. Like Monty Python's crowd chanting 'We are all individuals' in unison, we explain our choices with reasons while social contagion does the work unseen.

“Would I have had the balls to be the first person I knew to buy an electric car? Honestly, no.”

The point: People explain their choices with reasons, but adoption is driven by social contagion and by each person's threshold for how many others must go first.

Variants: One telling adds that it helps to be old enough to remember norms changing: in 1988 a water bottle on a meeting table drew stares, and in 1989 drivers shouted abuse at him for using a mobile phone on Oxford Street.

Sources (2)

'Andy Serkis has really let himself go'

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Asked for the best compliment he's received, Rory picks one that is not good in absolute terms but good comparatively: the comment 'Andy Serkis has really let himself go', which appears under many of his YouTube appearances. It pleases him because it is a massive improvement on the previous comparison, 'Miriam Margolyes has really let herself go', so he counts it as a big bonus.

“It's a massive improvement on 'Miriam Margolyes has really let herself go'.”

The point: Even compliments are judged relative to the previous reference point.

Sources (1)

A thousand pounds from the caterpillar track

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Rory's life changed once because he inherited a basically trivial 1,000 pounds from an aunt. He kept it and knew it was there, which significantly changed his attitude to money. Irrelevant detail he can't resist: the money came via her husband's father, Roberts, who invented the caterpillar track in Lincolnshire around 1910 and sold the patent to an American tractor company that became Caterpillar. They also made what he says was the first corporate film, shown in cinemas, which survives with German subtitles on YouTube.

“My entire life changed once because I inherited the sum of basically trivial 1,000 pounds from an aunt.”

The point: A small, secure buffer changes how people think about money and risk.

Sources (1)

A vicar is the worst accountant in the world

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Rory insists he pays his tax properly because his wife does his finances, and she is a vicar in the Church of England, which is like having the worst accountant in the world from a tax point of view. She will ask whether he declared the free pen from a conference. He even declared all the capital gains on his Bitcoin, which irritated him because, had it been a house, he would have paid nothing.

“She's a vicar in the Church of England, which is like having the worst accountant in the world in terms of tax.”

The point: Tax treatment is arbitrary across assets: the same gain is taxed on Bitcoin but not on a home.

Sources (1)

After an electric car, petrol feels disgusting

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Rory admits he did not buy his electric car for environmental reasons but for performance, enjoyment and gadgetry. Yet having bought one, the idea of driving a petrol car now feels slightly disgusting to him. People change their attitudes to fit their behaviour more than the other way round. He adds that Elon Musk is in a sense an environmental hero, despite his politics, because he made electric cars better than petrol ones; they would never have succeeded had they been worse.

“Having bought an electric car, the idea of driving a petrol car feels to me slightly disgusting.”

The point: Green behaviours spread when they offer selfish benefits, and the green attitude follows the behaviour.

Sources (1)

Alchemy's worst review came from a romantic novelist

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When Rory wrote Alchemy he expected creative people to love it and engineers, finance people and other left-brain types to be hostile to the idea of magic. Bizarrely it was almost the opposite: the book gained a weird cult following in the coding and investor communities, while his worst Goodreads review was written by a romantic novelist. His lesson: make friends with all the people who understand that problem-solving is more complex, and leaves more room for creativity, than standard models allow.

“The worst review I've got on Goodreads is actually written by a romantic novelist.”

The point: Openness to unconventional problem-solving does not follow the creative versus analytical divide you would expect.

Sources (1)

At the IPA, it is the same crap for everybody

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When Rory became president of the IPA, he moved from working for a single agency to working for a trade body, and was amused to discover that the problems he had assumed were specific to him and his agency were the same for everybody. Until then you are obsessed with the idea that your problems are unique.

“You suddenly realise actually it's the same crap for everybody.”

The point: Seeing across a whole industry dissolves the illusion that your organisation's problems are unique.

Sources (1)

Behavioural science is a fancy term for direct marketing

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Rory started in direct marketing in 1988 as a pupil of Drayton Bird, the British Claude Hopkins, and says he is still a direct marketer: behavioural science is a fancy term for it. Direct marketing produced results that were a science of exceptions: why have twice as many people replied to this when the price and product are the same? That question is what got him interested in behavioural science, which he used to call the thing for which we have no name.

“I'm a practitioner of the behavioural sciences, but basically that's a fancy term for direct marketer.”

The point: Unexplained results in measurable marketing are the doorway to behavioural insight.

Sources (1)

Binning the Paris tickets

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Rory had bought two non-refundable tickets to Paris for about £150. Two days before, he came down with a bad cold, but having paid, he was determined to go and spend another £500 feeling terrible in galleries, restaurants and hotels. The night before, he read an article on sunk-cost bias: the money was gone either way, and the only question was whether he wanted to go to Paris tomorrow. He threw the tickets in the bin and had a great weekend drinking Lemsip and watching television.

“The fact that you've already paid for the tickets is irrelevant. The question is: do you want to go to Paris tomorrow?”

The point: Behavioural science scales down to tiny personal decisions, and spotting sunk costs can free you to choose well.

Sources (1)

Calm in a car crash, bananas at a badly signed gate

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Rory has two modes: chill or very angry. In a non-serious car crash he is weirdly calm, because it was something everybody tried to avoid that unfortunately happened. But at an airport with a badly signed gate he goes absolutely bananas, because that is avoidable pain imposed on people needlessly. His children find it peculiar that trivial things, like having to take a laptop out of a bag, drive him nuts while a bad medical diagnosis leaves him calm. He thinks it made him alert to UX, signage and customer experience.

“The other one is just avoidable pain.”

The point: People resent unnecessary, designed-in frustration far more than unavoidable misfortune.

Sources (1)

Compliance is advertising in reverse

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Rory says words like compliance and procurement fill ad people with visceral horror, implying box-ticking imposed on instinctive decision-making. But when he was asked to speak at a compliance conference and turned up early, within three minutes he thought: these people are soulmates. Compliance is advertising in reverse. Where advertisers ask how to persuade people to do something, compliance asks what mixture of incentives, messaging and framing will stop them doing it.

“These people are soulmates. It was kind of advertising in reverse.”

The point: Preventing behaviour and prompting behaviour draw on the same psychological toolkit.

Sources (1)

Discovering New Mexico by getting stuck in El Paso

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Rory notes that Silicon Valley's aim, as a character in Douglas Coupland's Microserfs says, is to make location irrelevant, but that has costs: when work was tied to a desk, leaving the office meant you could not work, and focus followed. Now on day three of a holiday he finds himself planning his Ocado order. The internet also tempts us to over-plan holidays, which kills spontaneity. He and his wife discovered New Mexico by accident: stuck in El Paso on a driving holiday, they tried Los Alamos, fell for the state and have been back five times. For a summer trip he is fixing only the arrival and departure cities.

“A good time often requires spontaneity.”

The point: Technology that removes constraints and enables total planning can destroy focus and serendipity.

Sources (1)

Don't be on the Tube at nine

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As the only vice chairman, Rory faced no comparison with a colleague arriving at 7am, so he could mandate flexible working, including Zoom Fridays, before the pandemic. His former PA was a single parent. He told her nine o'clock is exactly when he needs her, because he can't find his meeting, so the Tube is the last place he wants her; better to take her son to school and start at ten. He posted expenses to her home so she could do them in front of the telly, freeing time with her son.

“The last place I want you to be then is on the Tube.”

The point: Questioning default working patterns can make arrangements better for both employer and employee.

Sources (1)

Driving a forklift at the Ribena factory

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Rory's student holiday job was two years at the Beecham Ribena factory in Coleford, first as a dogsbody and then as a forklift driver, which he enjoyed immensely and recommends to anyone. It taught him that work is unexpectedly gratifying because it is social, whereas academic work is rivalrous and individual. His friend Paul Dolan, from a working-class East End background, says what he misses most in academia is banter. Education is bad at judging how well people cooperate, because it is obsessed with sorting individuals.

“One of the things you realise is that actually work is social in a way that academic work simply isn't.”

The point: Education selects for individual performance while real work rewards cooperation.

Sources (1)

Everybody has a racist in the family

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Declaring an interest in American politics, Rory mentions that Woodrow Wilson was something like his third cousin twice removed, since Wilson's mother was born in England to Scottish parents. Everybody has a racist in the family, he says; his misfortune is that his was president of the United States.

“Everybody's got a racist in the family. My misfortune is that my racist was the president of the United States.”

The point: A self-deprecating way of declaring a personal stake before criticising American politics.

Sources (1)

Feynman points at a valve and looks like a genius

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Rory loves a Richard Feynman story. Shown the plans for a plant he did not understand at all, Feynman saw symbols that might have been valves or might have been windows. To look intelligent, he pointed at one at random and asked what happens if you close that. The engineer looked, looked again, and after about 30 seconds said, in effect, oh no: there would be catastrophic failure. From then on they viewed Feynman as a complete genius. Feynman, Rory notes, claimed an IQ of only 122.

“For all I knew they could have been windows.”

The point: Lucky guesses get post-rationalised as brilliance, and measured intelligence is a poor guide to insight.

Sources (1)

Five per cent join the church for the robes

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Rory ends by saying the church understands better than anyone that you can get people to be altruistic if you find some small selfish element inside it. When his wife trained for the Church of England ministry, one tutor told the class that they were all doing it for extremely good reasons, but not to imagine for a second that five per cent of them were not going into the church because they liked dressing up in robes.

“Don't imagine for one second that five per cent of you isn't going into the church because you like dressing up in robes.”

The point: Even the most altruistic choices are sustained by small selfish pleasures worth acknowledging.

Sources (1)

Flashed by a speed camera escaping a weaving driver

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Rory admits that four out of five times he has been caught by a speed camera, he deserved it. The fifth time, a driver who was either having a row with his wife or drunk, or both, was weaving from lane to lane. Rory waited in the fast lane for him to drift left, then put his foot down for 300 yards to get past, and was flashed. The camera detects speed, not drunkenness. No human policeman would have arrested Rory; he would have arrested the other driver.

“It only detects speed, it doesn't detect pissedness.”

The point: Automated decisions based on one measurable variable miss context a human would see.

Sources (1)

Good mathematicians can only work three hours a day

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At Cambridge Rory hung out with mathematicians more than most, because the good ones could only work three hours a day and so had spare time, unlike medics. He found maths cruelly meritocratic: people who had been the best mathematician at their school arrived and discovered that, however hard they worked, others could do it standing on their heads. Either you could do it or you couldn't, a bit like chess.

“The good ones could only work for three hours a day.”

The point: In some fields raw ability so dominates effort that meritocracy becomes brutal.

Sources (1)

Grandmother on Cardiff station

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Rory's Scottish great-grandfather left a croft to join the Edinburgh police and was told to go to South Wales, where coal money was being made. Rory remembers his very right-wing grandmother standing on a grim 1970s Cardiff station saying: just think of the money that's been made here and spent in more exotic places. Today where wealth is earned and spent is detaching. He told people investing in Kent it hardly mattered whether they attracted businesses, so long as London earners came to live and spend there.

“Just think of the money that's been made here and spent in more exotic places.”

The point: Local prosperity depends on where money is spent, not just where it is earned.

Sources (1)

Growing up next to a maths olympian

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Rory, a classics graduate, applied to many agencies and by a happy accident only one offered him a job: Ogilvy & Mather Direct. He'd studied Latin, Greek and maths at A level. His brother was on the UK Maths Olympiad team in the early 80s, 'the world's biggest nerd competition', and the annoying thing about growing up with a brilliant mathematician was that Rory assumed he was rubbish at maths. He later learned he was actually okay, and direct marketing's mix of creativity, maths and experimentation played to his strengths.

“The only annoying thing about growing up with someone who is very good at maths is I assumed I was kind of rubbish.”

The point: Self-assessment is relative to the comparison at hand, and the right niche can combine apparently separate strengths.

Sources (1)

Guys, the food's arrived

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A friend in banking had a Hong Kong Chinese boss whose one great indulgence was ordering a Friday blowout Chinese delivery. The courier would arrive with three bags of food, and the boss would open the door and shout up the stairs: guys, the food's arrived. He lived on his own. Even weirder, he admitted this to his colleagues.

“Guys, the food's arrived.”

The point: People will go to theatrical lengths to avoid being judged for indulgence, even by strangers.

Sources (1)

He only understood his father in Sweden

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Rory's father's family came from Caithness in the far north of Scotland, and his mother spent about three years of her early life in Norway. His father was strange in many ways: he would spend a lot on certain things if they carried a real quality message, and was unbelievably frugal about others. Rory never understood him until he first went to Sweden, then Finland and Norway, and realised: that is what it is. A particular approach to quality of life and quality of things, combined with an egalitarian mindset.

“I never understood my own dad until I went to Sweden for the first time.”

The point: Apparently odd personal spending patterns can make sense as a coherent cultural philosophy of quality.

Sources (1)

He thought podcasts wouldn't work in Britain

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Rory once met the man who came up with the word 'podcast' in its earliest days. He thought it would work in the US, with all that drive time, but not really in the UK. He failed to anticipate AirPods. He also notes something none of us would have predicted: on a long drive he is now far more likely to listen to an audiobook or podcast than to music.

“I failed to anticipate AirPods.”

The point: Forecasts fail because a complementary technology changes the context of use.

Sources (1)

He wouldn't buy the house because of the fridge

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Estate agents tell Rory they keep buyer and vendor apart until a survey and commitments are done, because if either dislikes the other, the deal dies regardless of price. Rory once didn't buy a house because the vendor was being a dick about the fridge, worth a tiny fraction of the house. If he couldn't trust him about the fridge, he couldn't trust him about the house. His instinct was right: a friend who later tried to buy it found via a separate Land Registry search that much of the garden belonged to Network Rail.

“Because he was being a dick about the fridge, I no longer trusted him about the house.”

The point: Small behaviours are read as evidence of character, and that instinct often protects us.

Sources (1)

Hearing about the web from Tim Berners-Lee's ex-flatmate

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In the mid-1990s, Rory's academic brother shared a flat in Berkeley with someone who had previously been Tim Berners-Lee's flatmate, so Rory heard about the World Wide Web incredibly early. For about a year being an internet enthusiast made you something like a trainspotter, a weirdo; people dismissed the web as the CB radio of the 1990s. Being early helped him understand it and talk fluently, but had he started a business then, it would probably have been too early.

“There was a period of about a year where being an internet enthusiast made you something a little like a trainspotter.”

The point: Early access to an idea brings understanding but not necessarily good timing; luck and timing shape careers.

Sources (1)

Hero dad for seven days

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Rory wants loyalty schemes to offer a halfway house between points for yourself and donations to charity: the ability to be generous to someone else, as Caffè Nero lets you gift a free coffee. He calls these godfather benefits, like upgrading someone on their honeymoon. His best value from BA, a member since 1993, came when his daughter and three friends were stranded in Geneva after a ski trip, facing a coach journey because of a ferry strike; he put all four in business class. For about seven days he was hero dad, which felt better than anything spent on himself.

“For about seven days I was hero dad.”

The point: Letting members gift rewards to others delivers more emotional value and recruits new members.

Sources (1)

His 93-year-old father was called by the NHS

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People are sceptical of telemedicine, which sounds like 'the doctor won't see you now'. But Rory's father, 93 and the son of a doctor, was called by his surgery and said it was the most impressive thing he had experienced in 40 years, because someone from the NHS had contacted him. Every other interaction had involved him bullying someone into doing something. A tiny change to the context of the call transformed his emotional response.

“It was the most impressive thing I've experienced in 40 years, because someone from the NHS contacted me.”

The point: Proactive contact can make a modest service feel exceptional.

Sources (1)

His father restored a listed building, went bankrupt and got no credit

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In the late 1980s Rory's father bought a derelict Grade II* listed building in Weymouth[?], restored it into flats and built a modern block beside it to make the project pay. Then the property crash hit and he went bankrupt. He used to remark plaintively that had he done it as philanthropy, declaring he wanted to rescue the building and make nothing, he would have been heralded as spectacularly generous. The effect was identical: he lost all his money and restored a building. But because his motive was profit, he never got a jot of credit.

“Because my initial motivation was to make money, I never got a jot of credit for what I did.”

The point: We judge actions by their perceived motive rather than their outcome, which makes us systematically unfair to self-interested capitalism.

Sources (1)

His grandfather's medicine was mostly placebo

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Rory's grandfather was a doctor in a South Wales mining town in the 1920s and 30s. He admitted that before antibiotics, the majority of what a GP did was placebo: shamanism, reassurance, making people feel confident, cared for and comfortable. Unless you were a surgeon, the pharmacopoeia you had access to was mostly useless. Rory's lesson: if you do not believe in magic you do not look for it, and when presented with it you explain it away.

“If you don't believe in magic, you don't look for magic, and when people present you with magic you don't believe it.”

The point: Dismissing psychological effects as unreal throws away a large source of value.

Sources (1)

How Drayton Bird lured Rory into advertising

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Rory was training to be a teacher when he panicked that going from school to university and back to school would mean spending his whole life in educational establishments. He applied to ad agencies, including Ogilvy and Mather Direct, where Drayton Bird was worldwide chairman. Waiting in reception for his first interview, he heard someone ask Drayton about his trip; Drayton said it was a bit grim because he had to change planes in Addis Ababa. Rory thought: you don't get that in the staff room at school. At the final selection, Drayton gave a talk, and Rory was hooked.

“I remember thinking, you don't get that in the staff room at school.”

The point: A chance glimpse of a more exotic world redirected his career.

Sources (1)

Jimmy Carr learned his work ethic at Shell

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Rory would not tell a 23-year-old with a year's experience to go freelance. Three to five years in conventional work teaches you a lot at someone else's expense, insures you against mistakes, and instils self-discipline and punctuality. Had he gone self-employed straight from university, he says, he probably would not have started work until Wednesday each week. Jimmy Carr, who worked at Shell, says his famous work ethic is only extraordinary for a comedian: it is what he learned in an office, eight or nine hours a day, five days a week.

“I probably wouldn't have started work till Wednesday every week.”

The point: Conventional employment builds habits and lets you learn on someone else's account before going independent.

Sources (1)

Let's take a punt on the weirdo

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Rory ends with proof of group hiring. The only reason he got his job at Ogilvy in 1988 was that there were four jobs going. Had there been one, he would not have stood a chance. They had chosen the first three applicants and could not decide on the fourth, when somebody at the back said: let's take a punt on the weirdo.

“Let's take a punt on the weirdo.”

The point: Batch decisions leave room for unconventional choices that single decisions never make.

Sources (1)

Making the Disneyland Paris trains play When You Wish Upon a Star

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Without knowing the Pan-American story, Rory tried something similar when Disney began running trains from Waterloo to Disneyland Paris: he wanted the trains to play the first two bars of 'When You Wish Upon a Star' every day as they left Waterloo. Asked whether it would annoy people in South London, he replied yes, and at no extra cost. The idea finally died because Disney, bizarrely, did not own the rights to the song.

“Would this annoy people in South London? Yes, and no extra cost.”

The point: A branded ritual can cost almost nothing and still create a lasting signature for a service.

Sources (1)

Meeting David Ogilvy, "Thank God, a proper salesman"

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David Ogilvy was terrified of flying, so he rarely came to the UK. His one visit during Rory's early years at Ogilvy came just after the Channel Tunnel opened, so he could come by train, then in his mid-eighties, to present his work. Rory cancelled a holiday to see him. When Rory and a colleague introduced themselves as being from the direct marketing arm, Ogilvy embraced them and said: "Thank God, a proper salesman." His love of direct marketing was sincere: his Paris office, now preserved, was in the direct marketing agency, not the advertising agency.

“Thank God, a proper salesman.”

The point: Ogilvy saw advertising's purpose as selling and prized the measurable discipline of direct marketing.

Sources (1)

Moving to East Kent to buy a different pace

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Rory lives in West Kent and has a holiday flat in East Kent: 'it's all about contrasts', he told his wife. Asked why go further from London, he says it is about pace. Whatever we believe about free will, we do not control the pace at which we do things in a collective organisation: it is set centrally, or by the most impatient people. As a 50-year-old in an agency, he knows young people burn older people out by turning their energy into a competitive advantage. Going 70 miles further, he is buying a different pace.

“The reason I like to go another 70 miles further away from London is precisely I'm buying a different pace.”

The point: Pace is a collective norm we rarely choose, and sometimes the only way to change it is to change environment.

Sources (1)

No limit to what he'd pay not to go to Glastonbury

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Demonstrations, Rory says, are massively unfair to introverts. There is no limit to how much he would pay not to go to Glastonbury; he has had to learn that some people actually enjoy crowds. Yes, he misses out on music festivals, but on the upside he would not have gone to the Nuremberg rallies either, if only for worries about the toilets. Having someone shout through a megaphone so he shouts the same thing back would make him physically sick.

“I wouldn't have gone to the Nuremberg rallies either.”

The point: Participation-based politics over-represents people who enjoy crowds.

Sources (1)

Not telling the Eurostar story is the Eagles skipping Hotel California

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Audiences sometimes complain that Rory did not tell the Eurostar story. He always assumes everybody has heard it, so why repeat it? Then he realised it is like going to see the Eagles and they don't play 'Hotel California': if he doesn't tell the Eurostar story, everyone is annoyed, even though they already know it.

“It's a bit like going to see the Eagles and they don't play 'Hotel California'.”

The point: Audiences value the familiar hits, so repetition is a feature, not a failing.

Sources (1)

Ogilvy didn't know what to do with Rory's fame

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By accident Rory became perhaps the most famous advertising person in the world, and went to Ogilvy saying this was an opportunity. It did not fit their model: the ad business pays people for 35 hours, bills them for 45 and works them for 55. Not knowing how to report the value, they threw it away; he now works two days a week. Fifteen years earlier they might have launched Ogilvy TV; he suggested they could own B2B TV, which does not exist. It needed upfront money with an uncertain outcome, so no.

“You pay people for 35 hours a week, you bill them for 45 hours a week, and you work them for 55 hours a week.”

The point: Organisations optimised for one business model cannot exploit lucky opportunities that don't fit it.

Sources (1)

Panicking about driving after alcohol-free beer

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Rory sometimes drinks one alcoholic pint followed by two non-alcoholic ones, which also lets you escape the round system that forces you to drink at the pace of the booziest person. An hour later, driving home from the station, he has a panic attack thinking he should not be driving, before remembering the beer was alcohol-free. He calls it placebo drunkenness: we drink partly to get drunk and partly because drinking gives us permission to act drunk. In psychology, cause and effect sometimes run backwards.

“In psychology, cause and effect sometimes run backwards.”

The point: Rituals can trigger the states we assume they merely accompany.

Sources (1)

Public speaking is like driving in London

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Speakers rarely work in July and August, and when they give their first talk around 7 September they're terrified. People either do public speaking a lot or not at all, because done infrequently it's frightening. It's like why Londoners never move out: if you only drive occasionally you don't enjoy it. Even Rory, a frequent driver, dislikes the first half hour in a rental car, hunting for the indicator stalk, until it becomes System 1. Having moved to Sevenoaks, he still feels joy hitting 40 mph soon after leaving the house.

“Public speaking is like driving in London. If you don't do it a lot, you think of it as a horrible thing to have to do.”

The point: Familiarity turns dreaded tasks into automatic, even enjoyable ones, so frequency drives willingness.

Sources (1)

Public speaking is like stand-up comedy

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The barrier to public speaking, Rory says, is frequency: speak about eight times in a month and, while you never stop being nervous, the fear is in check. It is like stand-up comedy: you get feedback and keep refining the set. Chris Rock turns up at tiny comedy clubs, tells 20 riffs, and next time the three weak ones are gone. If you speak once a year, it is terrifying.

“If you only speak once a year it's terrifying. If you speak once a week you've got the nerves within check.”

The point: Frequent repetition with feedback turns a frightening skill into a refined one.

Sources (1)

Replacing business meetings with medical appointments

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Rory is going plural at 59. The social norm is to bust a gut working towards retirement, but if your job gives so little intrinsic pleasure that you must think about retirement to keep going, something is wrong. Leave it too late and you replace business meetings with medical appointments, with no enjoyable period in between. Other things have value even if unquantifiable: autonomy, shopping on a Wednesday rather than a Saturday, living where you want. Just because you cannot put it in a spreadsheet does not mean it is unimportant.

“You end up replacing business meetings with medical appointments without an intervening enjoyable period.”

The point: Autonomy and flexibility have real value that spreadsheets ignore, so trade some later retirement for a better middle life.

Sources (1)

Resident jester, McKinsey's worst nightmare

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Rory doesn't regard himself as a manager or leader, more a resident mischief-maker or jester. Give him a large company to run and there'd be a 1 per cent chance it made a fortune and a 99 per cent chance it went bust. He's now 'president emeritus' of Ogilvy Consulting, the emeritus giving them plausible deniability if he says something scandalous. He's McKinsey's worst nightmare: never hire him for a long-running project. Use him for a smash-and-grab: look at these three things, consider the opposite, look at it that way, bye-bye.

“Don't get me in for a long-running project. I suck.”

The point: Some contributors add most value through brief provocations rather than sustained management.

Sources (1)

Rory and friends invented Snake in 1982

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Around 1982 Rory's school got its first computer, and he was one of the nerds who crowded round it every break. Three of them came up with the game Snake, later on every Nokia phone. He stresses others surely invented it too, since playing with cursor keys did not need great coding skill. What strikes him is that they did it to impress friends and for a laugh; not for a microsecond did any of them think of making money. With a lawyer, it might have been a multi-million-pound idea.

“Not for one microsecond did it occur to any of us that we could make any money.”

The point: Much valuable invention happens for play or status, with no thought of commercial reward.

Sources (1)

Rudolf Hess was always nice to his mother

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Rory's family history complicates his views on talking to the worst people. He can truthfully say, though it doesn't reassure him much, that Rudolf Hess was always very nice to his mother. Hess was imprisoned near Abergavenny, and as a girl walking home from school she would come face to face with him. He always smiled and gave her a nice wave. She then went and hid in the hedge.

“Rudolf Hess was always very nice to my mum.”

The point: Evil figures can present as ordinary and pleasant, which is part of what makes them disturbing.

Sources (1)

Ruining Betty Blue with economics

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Asked whether he ruins films as an economist might, Rory recalls the late-80s film Betty Blue. He pointed out that the couple's decision to open a piano shop in a remote part of France was patently ridiculous, since the likely market in their catchment area for a grand piano was at most one a year. He had ruined a romantic French art-house movie by noting the economic foolishness of selling a declining product in a completely inappropriate location.

The point: Even advocates of psycho-logic can't resist applying cold logic in the wrong context.

Sources (1)

Superyachts lead to spiralling misery

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Rory loves RV and superyacht videos for the ingenuity with space, which dwarfs residential architecture. But even with a billion pounds he hopes he'd have the self-awareness not to buy a superyacht. People in the field say it leads to spiralling misery: the first boat is fun, so you assume a bigger one is twice as much fun, but the only harbours you can enter are full of even bigger boats. The bit he'd enjoy is parking it, the bow thrusters and drone footage, and YouTube gives him that for 1 per cent of the cost.

“Even if you gave me a billion quid I think I'd have enough self-awareness not to buy a superyacht.”

The point: Status goods escalate into relative deprivation; often the enjoyable part can be had vicariously.

Sources (1)

Take up crack, it's cheaper than James Hoffmann

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Rory warns children not to watch coffee guru James Hoffmann's videos: take up crack instead, it will be cheaper in the long term. He got into them in lockdown and soon found himself ordering a 2,000 pound grinder whose burrs are massaged by Lithuanian nuns. During lockdown his family of four also spent around 60 hours watching an American reviewing giant motor homes.

“Kids, don't watch that. Seriously, take up crack or something because it'll be cheaper in the long term.”

The point: Expert enthusiasts are powerfully persuasive because their passion and credibility are contagious.

Sources (1)

The best cup of tea, at 40,000 feet

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Rory would not have begrudged the triple lock to his great-uncle, a Lancaster rear gunner for four tours. That generation, having suffered real hardship, was easily contented. A friend flew a wooden Mosquito in a Pathfinder squadron: diving through barrage balloons and flak to drop flares over the target, then climbing back to 40,000 feet where they were safe, and opening a tartan Thermos for a cup of tea in the cockpit. His biggest complaint in life was never being able to make a cup of tea that tasted that good.

“His biggest complaint in life was that he'd never been able to make a cup of tea that tasted that good.”

The point: Context and relief transform the value of ordinary pleasures, and hardship makes people easier to please.

Sources (1)

The Bletchley friend who couldn't hate the Italians

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When Rory was young he had a friend who had worked at Bletchley Park in the Italian naval hut. He always hated it, because he could never work up the same animus towards the Italians as he could towards the Germans, so he always felt slightly uncomfortable about his work, important though it was.

“He could never work up the same animus towards the Italians as he could towards the Germans.”

The point: Motivation depends on emotional engagement with the task, not just its importance.

Sources (1)

The children can stay at the Travelodge

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Rory's wife said she wanted a bigger place so the children could come and stay. Rory refuses to spend 250,000 on a spare bedroom so the kids can visit for three days a month: they can go and stay at the Travelodge like everybody else. He finds it weird that we regard carrying empty bedrooms into old age as normal.

“They can go down the Travelodge like everybody else.”

The point: Holding expensive space for occasional use is a costly habit we rarely question.

Sources (1)

The children who preferred Ryanair to BA business class

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For about ten years Rory's children insisted they did not want to fly British Airways business class; they wanted Ryanair. Something, perhaps a colouring kit or some small gesture, had delighted them, and he cannot remember what it was. The point is that a large part of how we judge things is not what the thing is, but how it compares to what we were expecting.

“A large amount of how we judge things is not what is the thing but how did it compare to what I was expecting.”

The point: Small unexpected pleasures can outweigh large objective differences in quality.

Sources (1)

The electrician who saved him £7,000

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Rory needed an electric car charger. One electrician said it would need a three-phase supply and a line from the substation: £7,000. A second said the existing cable was fine and he could do it for one or two thousand. Rory almost said 'just charge two'. Compared with what he expected, three would have been a bargain, so he told the man he was not being price sensitive, an awful negotiating move. He reads it as reciprocation for honest expertise, and price as a contextual feeling, not a number.

“To an economist, price is a number. To consumers, price is a feeling.”

The point: Price perception is set by the reference point, and gratitude makes people pay more.

Sources (1)

The Englishman who learned Hungarian

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A friend of Rory's learned Hungarian, expecting gratitude for mastering a virtually intractable language. But no Hungarian had ever met a foreigner who had learned Hungarian. So rather than being flattered, they assumed he was a Hungarian who was just very, very stupid.

“They assumed he was a Hungarian, but just very, very stupid.”

The point: People interpret behaviour through the norms of their network, not the effort behind it.

Sources (1)

The fermented tea drink he dismissed

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A lovely mistake: about ten years ago someone came to Rory with an idea to popularise a fermented tea drink. It sounded the most ridiculous idea he had ever heard. It turned out to be kombucha. With the best will in the world, the best you can hope for is to be right about more things than you are wrong about, so do not beat yourself up over mistakes.

“It sounded to me the most ridiculous idea I'd ever heard in my life.”

The point: Even experts misjudge counterintuitive products, so the aim is a good ratio, not infallibility.

Sources (1)

The fuel card that made his car look like it was dying

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Thanks to an ancient Ogilvy board perk, the agency pays for Rory's petrol through a fuel card that reports his fuel consumption. For three years the statements showed his car getting steadily worse every month, and he grew paranoid it needed servicing. Then he remembered that early on he had twice paid by credit card instead, creating a miracle period of about 100 miles to the gallon. Every later average was dragged down from that false baseline. One or two rogue entries had ruined the whole series.

“You only need one or two rogue things and the whole thing's cocked up.”

The point: You do not need much garbage in to get a lot of garbage out, yet bad models rarely dent the confidence of those who wield them.

Sources (1)

The great-aunt horrified by 1920s Nashville

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Rory had a great-aunt, an anthropologist and a conventional middle-class white woman of her time, whose papers he holds. She travelled to Nashville in the 1920s, and he assumed she'd find it a bit racist. She was utterly horrified. As an anthropologist she couldn't interview black families, who were frightened to invite her in, because if word got round that a white woman had been in their home they'd be accused of causing trouble and beaten up.

The point: First-hand records can overturn assumptions about how attitudes varied across places and periods.

Sources (1)

The hot hatch that took on a McLaren F1

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On the A299 in East Kent Rory once watched a souped-up Citroën hot hatch, enormous tailpipes and a woofer filling the boot, take on a McLaren F1. It acquitted itself reasonably for about five seconds. That's how he felt interviewing Jimmy Carr at an advertising festival, faced with Carr's terrifying 'brain to mouth' speed: Rory was the Citroën with the unfeasibly large tailpipes.

“I was the Citroën with the unfeasibly large tailpipes.”

The point: Self-deprecating illustration of how fast top comedians think compared with everyone else.

Sources (1)

The Japanese toilet his wife resisted

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Rory had to fight his wife for ages to get a Japanese washing toilet, the most obvious purchase in the world: once you've had one, anything else seems medieval. She resisted not for any practical reason but because she didn't want to be thought of as the people with the strange toilet. She cares what other people think, being English. Rory's advantage, he says, is being South Welsh, which is like a superpower: you just don't care that much.

“Once you've done that, basically anything else seems medieval.”

The point: Fear of seeming odd blocks adoption of obviously better products.

Sources (1)

The late mum ethics test

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Discussing the ethics of nudging, where people may think they act voluntarily without noticing the context influencing them, Rory parks the problem next to the trolley problem and offers his own heuristic: if I told my late mum about it, would she think it was okay? If his mum would not like it, he should not do it.

“My ethical heuristic is if I told my late mum, would she think it was okay?”

The point: A simple personal test can stand in for complex ethical frameworks when judging persuasion.

Sources (1)

The lease car that had to go to Quickfit

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Rory's leased Mustang Mach-E was being serviced at a Ford garage, which said the rear tyres were amber and needed replacing. He asked them to do it. They could not: the lease company only allows amber tyres to be replaced through Quickfit. He offered to pay the £20 difference. No. So he spent an afternoon on a video call sitting on a wall outside Quickfit. The system was optimised on the homo economicus assumption that nobody will pay extra for any improvement in convenience or quality.

“Couldn't I just pay you 20 quid for whatever the difference is? No, we can't do that.”

The point: Systems built for the cheapest customer refuse value that willing customers would pay for.

Sources (1)

The man in the white suit in Monterrey

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In late-1980s London, Mexican restaurants were a great way to turn rubbish basement real estate into something authentic: peeling plaster, a hand-painted bandit on the wall. But in Mexico a good restaurant has a nice interior. Rory learned this flying to a business conference in Monterrey thinking: I'm going to Mexico. He wore a white suit. Everyone else, who did not wake up thinking I'm in Mexico, wore a dark suit, white shirt and tie, and in the group photo of 120 people he looks like the man from Del Monte.

“I look like the man from Del Monte.”

The point: People inside a context see it completely differently from visitors, so outsiders' notions of authenticity mislead.

Sources (1)

The maple worktop Rory still has not forgiven

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In about 1994 Rory sold a London flat where he had installed a new kitchen a year earlier, with a slab of fantastic Canadian maple on the counter. The buyers, passionate environmentalists, immediately ripped out the six-month-old kitchen and threw out the maple. He admits it is none of his business, as it is no longer his flat, but he still resents it and still finds it painful.

“I still haven't forgiven them for it.”

The point: People stay emotionally attached to what they created even after selling it, which shapes how they sell.

Sources (1)

The no-carb diet, self-control once a week

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Rory went on a no-carb diet with his wife and it worked, whether or not it is nutritionally sound. It is binary: eat any amount of X, none of Y. You only need self-control once a week, when you shop, because if no carbs enter the house you do not eat them. After a while Danish pastries look mildly disgusting. Calorie counting, by contrast, demands self-control at every meal, which he likens to giving up sex by going to lap dancing clubs.

“That's actually like giving up sex by going to lap dancing clubs instead.”

The point: Design behaviour change so willpower is needed rarely and the habit is shared.

Sources (1)

The refurbished Galaxy S6

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In 30 years at Ogilvy Rory has barely asked for a pay rise. He had not requested a new phone in seven years; when his Samsung Galaxy S7 broke he asked for an S9 and was sent a refurbished Galaxy S6. He went straight to the shops, bought an S9 and expensed it. That ludicrously trivial moment was when he was most likely in his whole career to start nicking the loo roll. His advice to compliance teams: watch for small slights that disproportionately trigger misbehaviour.

“The moment in my entire working life where I was most likely to start nicking the bog paper.”

The point: Petty institutional slights can provoke rule-breaking far out of proportion to their cost.

Sources (1)

The rogue side of the family produced the war heroes

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Rory jokes that he has a relative in Washington state he is unlikely to visit, as he is in prison for kidnapping and attempted murder. A friend who traced his family tree found half was respectable, academics and doctors, and the other half wild, bikers and slight rogues. In defence of the rogues, they also produced the war heroes, such as a relative who won a DFC and bar as a rear gunner in a Lancaster bomber. In evolutionary terms, maybe we need these people, even though they are a nuisance most of the time.

“The only point I make in defence of the rogue side of the family is they also produced the war heroes.”

The point: Traits that are costly in normal times can be invaluable in extreme ones, so variety matters.

Sources (1)

The second-best evolutionary thinker from Llanbadoc

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Rory was born in the tiny Welsh village of Llanbadoc, also the birthplace of Alfred Russel Wallace, co-discoverer of evolution by natural selection. His attainable ambition is to be the second-best evolutionary thinker born in Llanbadoc, though he worries a fledgling evolutionary psychologist from the village will turn up at Imperial. Speaking at the Royal Institution, he predicted he was probably only the second person from Llanbadoc to do so, and sure enough Wallace had spoken there in the 1860s.

“My ambition is to be the second best evolutionary thinker born in Llanbadoc.”

The point: A light personal link to Wallace and to the naturalist approach he champions.

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The shopkeeper whose cousin was president

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LinkedIn can feel like a confederacy of the needy, Rory says, but it started as a live directory, and before such tools it was easy to lose contact with people for ever. His great-grandfather ran a shop in Wales, in Tredegar [?] or Gilwern [?], in the 1910s, completely unaware that his cousin was president of the United States. We forget how completely people could vanish from each other's lives.

“Completely unaware that his cousin was president of the United States.”

The point: Networking tools' unglamorous value is simply preventing permanent loss of contact.

Sources (1)

The third whistle at the château

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On honeymoon Rory drove to the Loire château with the gallery spanning the river, Chenonceau [?]. One attendant with a whistle directed him to car park C, another to row two, both helpful. Then a third whistled and pointed at the exact space he must use, despite an empty spot in the shade under a tree. Rory said to his wife, sod this for a game of soldiers, and drove off. They did not return for 25 years. The instruction was over-specific, and in French.

“The third peep where he points at the specific space where I have to park.”

The point: Guidance is welcome until it becomes over-specific control, at which point people rebel.

Sources (1)

The trainee teacher who wanted to say brilliant

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After classics at Cambridge, Rory trained as a teacher for a term and then panicked at the thought of spending his whole life in educational institutions. He was more popular with pupils than with staff. Having been a mischievous secret smoker himself, at 23 he could not bring himself to discipline children for trivial offences: when told a boy had been caught smoking behind the bike sheds, his instinct was to say brilliant, before realising he was supposed to be appalled.

The point: Rule enforcement sits badly with people whose instincts favour mischief, which pushed him towards advertising.

Sources (1)

The whelk in the Nag's Head phone

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At the Nag's Head in Kinnerton Street, run by the bombastic Kevin Moran, Rory once fell victim to the only practical joke of its kind he has ever experienced: someone had put a whelk in the mouthpiece of the pub's payphone, where it decomposed, so that making a call made you violently sick. He loves that the pub sits in Mayfair, with a few authentic billionaires among its clientele, yet was once the local of Haigh, the acid bath murderer. That mix, he says, is exactly as it should be.

“That's exactly as it should be.”

The point: Great pubs mix every kind of person, which is part of their character.

Sources (1)

The worst graduate trainee Ogilvy ever hired

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Rory read classics, joined Ogilvy in 1988 as a graduate trainee, was called the worst trainee the agency had hired, and was pushed out of the planning department. He reapplied to the creative department, became a copywriter, was executive creative director of OgilvyOne five years later and is now vice chairman. His lesson: a messy, non-linear early career is no mark of shame, and a surprising amount of what he learned as a bad account man is still useful.

“A surprising amount of what I learned even being a bad account person is still of value to me today.”

The point: Time spent finding out what you are good at is not wasted, even when it looks like failure at the time.

Sources (1)

Too old to start again at 17 followers

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Rory joined Twitter almost at the start, with a user number he thinks is around 120,000, and it has taken him years to reach about ten thousand followers. So he pays for Twitter Blue and won't defect to a rival, however much people want to take a stand against Elon Musk. At 57, he says, he is too old to learn a new interface and can't face starting over with 17 followers. If he were 23 he might make the principled gesture.

“He's got me by the balls, because it's a massive case of sunk cost bias.”

The point: Accumulated network capital locks users in regardless of their views of the owner.

Sources (1)

Two ad men read the same school copy of The Hidden Persuaders

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Paul Feldwick and Rory both went to Monmouth School, never overlapping. Around 1973 Feldwick took The Hidden Persuaders out of the school library; around 1979 Rory read the same copy. Rather than thinking 'this is scandalous, they must stop it', both thought it sounded brilliant. The same happens with No Logo. Rory suspects Robert Cialdini meant to aid regulators, and Thaler and Sunstein hoped to inform government, but their most enthusiastic adepts were car salesmen and people like him.

“Rather than going 'gosh, this is absolutely scandalous', we read it and thought this sounds brilliant.”

The point: Exposés of persuasion often recruit persuaders rather than warn the public.

Sources (1)

Two and a half years of Sundays, not one free garlic bread

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As students, with college kitchens closed on Sundays, Rory and friends went to Pizza Express almost every Sunday in term for two and a half years. He complained to a friend that they had never been given a free garlic bread or any acknowledgement that they were regulars. He now admits he was being an idiot: the restaurant knew perfectly well they were students who would leave in three years and never return, so why make a fuss? People like their loyalty not only rewarded but recognised.

“They've never even given us a free garlic bread.”

The point: Customers want their frequency recognised; there is always a social exchange alongside the economic one.

Sources (1)

Watching Air Crash Investigation on a plane

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Rory, not a nervous flyer, confesses that in the early days of downloading Sky programmes to a laptop he used to watch Air Crash Investigation on a 17-inch MacBook during flights. Only after telling his wife and children, who were appalled, did he realise that nervous passengers behind him had been looking over his shoulder at wreckage strewn across a Japanese mountainside and reconstructions of planes flying upside down. He apologises to anyone who was on those flights.

The point: It is easy to forget how differently anxious people experience the same environment.

Sources (1)

Wear a hat with your mask and feel like Zorro

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One of Rory's proudest discoveries of 2020 was accidental: if you want to wear a mask without feeling weird, wear a hat. Walking around masked, he noticed he felt quite cool rather than like a slightly cowardly middle-aged bloke, and realised it was because he had put on a hat, which made him feel like Zorro. Such useful ideas never emerge from a rational, linear process. There are far more great ideas you can post-rationalise than pre-rationalise, so demanding rigorous rationality up front confines you to a tiny fraction of possible ideas.

“There are far more great ideas that you can post-rationalise than great ideas you can pre-rationalise.”

The point: Accidental discoveries can solve behavioural problems that logical planning would never reach.

Sources (1)

Wetherspoons, supposedly named after a doubting teacher

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When Richard Harpin recalled his chemistry teacher agreeing he'd be a millionaire first, Rory brought up the Wetherspoon story: apparently the pub chain is named after a teacher who told its founder he'd never amount to anything. Rory admits he's never quite sure whether it's true. Either way, it fits the pattern of entrepreneurs driven partly by someone's dismissal.

“Apparently Wetherspoons is called Wetherspoons after a teacher who told him he'd never amount to anything.”

The point: A slight or a doubter can be a lasting motivator, and founders sometimes enshrine it.

Sources (1)

Working from Barbados via an invented relative in Leeds

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Remote working is fantastic, Rory says. He once realised he could do his job from Barbados, but people would be so resentful that they would never give him any work. So he hatched a plan: invent an ill relative who needed looking after in Leeds, buy a Leeds phone number that diverted to Barbados, and hope the monkeys were quiet whenever anybody phoned.

“I'd just have to hope the monkeys would be quiet when anybody phoned me up.”

The point: Acceptance of remote work depends on social perception and resentment, not just feasibility.

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Working on Zoom like a not very diligent Victorian clergyman

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Asked to choose between business travel and Zoom, Rory says he has discovered that 90 per cent of what makes work stressful has nothing to do with the economically productive part of work. The stress came from things like not being able to find the client's office at nine in the morning. Since working on Zoom, his working life is that of a not very diligent Victorian clergyman, and 90 per cent of the stress has gone.

“My working life is that of a not very diligent Victorian clergyman.”

The point: Most work stress comes from extraneous friction around the work, not from the work itself.

Sources (1)