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Kino Executive Development Program - " Linier Thinking in a Nonlinier World "



" Linier Thinking in a Nonlinier World "


The obvious choice is often wrong.
by Bart de Langhe, Stefano Puntoni, and Richard Larrick
( Harvard Business Review ).

Idea In Brief

The Problem
People expect that relationships between variables and outcomes will be linear. Often they are: The amount of data an iPad will hold increases at the same rate as its storage capacity. But often they are not: The time savings from upgrading an internet broadband connectionget smaller and smaller as download speed increases.
The Challenge
How can you overcome the inclination to think linearly so that you don't make poor business decisions when nonlinear phenomena are in play?
The Solution
First you need to understand four types of nonlinear relationships and how linear thinking produces errors in judgment in these situations. Then you can use data visualization to see whether and how relationships in your environment are nonlinear, which will help you make choices that maximize your desired outcome.