Skip to content


Wall Street Thriller: book review

Book ImageA Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers by Lawrence G. McDonald and Patrick Robinson  bills itself as a “Wall Street Thriller” and it most definitely reads like one. The narrator/protagonist is Lawrence G. McDonald, a former convertible bonds trader at Lehman. The style of writing by his co-writer, Patrick Robinson, and the voice of the narrator reminds me Anthony Bourdain and his book Kitchen Confidential (slightly less cussing though).

This is a good read. I loved learning about the inner workings of Wall Street from one person’s perspective — and it just that — a biased perspective. He does not hide this fact but that’s in part what makes the book so entertaining. I learned more about how high finance works from reading this book than I have from any financial textbook. McDonald describes from his perspective why Lehman failed, what was done to try save it, and fully lays the blame at the feet of two people: Dick Fuld, CEO and Joe Gregory, COO.

One begins to understand the complexity of the financial instruments involved, the delusional activities of large group of people, and the sheer calamity brought upon this country and the world as a result of these activities. The collapse of Lehman was at the crux of the financial meltdown. Reading this book you realize how much of our financial system runs on faith and trust, and how important it is to have checks and regulations in place that keep that trust and faith in place. Dismantling the Glass-Stegall act was at the root of the most recent chaos — and that blame lies with the Congress at that time. And there is the easy access to credit thanks to the Federal Reserve keeping interest rates low after the 2001 bubble. (Sorry, can’t mention the name of the demi-god Alan Greenspan.)

The book is well-named: A Colossal Failure of Common Sense. However it’s just not the top two Lehman that suffered from this failure, it’s most of the heavy hitters in the system that did. And they should be ashamed of the havoc they wrought.

But we all had a piece of it, however small. I hope our awareness these failures leads to change. We’ll see.

Good book, albeit biased — worth the read.

Full disclosure: Lehman Brothers was a client I worked with and I knew some of the people at the firm.

Posted in book reviews, business.

Tagged with , , , .


Mental Model Breakdown

Someone recently wrote in to ask about “unlearning”. How do you get people to “unlearn” past behaviors or past learnings? The underlying assumption is that the past learnings are bad or not useful and thus need to be “unlearned” (you can read about it in the comments section of this post.) It got me thinking — how does one “unlearn”, alter, dismantle or simply change other people’s mental models? It got me thinking about my mother’s kitchen.

My mother’s kitchen

As an adult, I’d go back to visit my mother’s house, and one of our biggest arguments was over her kitchen — more specifically, the organization of her kitchen. I could never find anything — which is not unusual for a visitor, but more importantly I couldn’t learn how to find anything and had to ask her for help every single time. Drove me bananas.

The cooking oil would be under the sink. The spices would be with the pots. There was nothing useful in the pantry. The flour, sugar, eggs (she had 2 fridges) and baking trays would be in a different room. What kind of logic was this??? I would reorganize her kitchen. She would get furious. Arguments would ensue. After a few times, I gave up.

Only just recently, I realized her logic — the mental model of her kitchen.

You see, I organize according to category — like things with like things. Dry food items here, spices there, pots under there, vegetables here. She organized according to function.

What function would require cooking oil under the sink? Well, she had a huge burner ring outside for deep frying large batches of stuff. The burner was outside on the patio, the kitchen window served as a pass-through, the kitchen sink was under the window. It was easier to have the cooking oil there rather than walk across the kitchen to get it (she also had bad knees.)

Her spices were close to the stove, where she cooked, with the pots because she could reach them there. When my brother remodeled the kitchen, he made the upper cabinets too high. She’s 4’10”.

The sugar, flour, eggs, baking items — well, she didn’t use them that often. And when she did, she baked huge batches of stuff, which meant she needed more room than what was in her kitchen, so she had another room set up for that.

The organization of her kitchen increased her efficiency. That was her mental model.

It was not one I shared.

Learning mental models

When I first moved down to the United States of America, I had a job as a writer. I was to help people learn about information technology at a University. At that time, the SysAdmin folks dictated how we thought about things. I was new, I followed along. The documentation we wrote was organized according to categories: accounts, email software, SSH, FTP, and other stuff. It was mostly useless. Why?

People did not think in those SysAdmin categories. We let the inmates run the asylum. I realized how useless it was after I left that position, then tried to access my email and change my password. I looked in the book that I had written to remember how to do this. I couldn’t find the information under email. I searched and searched and finally called the Help Desk in frustration. The information was under the Accounts section — but who would have ever thought of that?

We never bothered to learn the mental models of our learners. Not even at the most basic level. How did they organize their thinking about “that stuff they do online”?

But wait…we can’t figure out what everyone is thinking!

True, you cannot figure out the mental models of every single individual. No one is asking that. But we can figure out patterns. First question — is about functionality or categories? Do they really need to know how a domain is organized in order to do their work? Yes, it might help them in the long run, but realistically, that’s not the goal of most people. They just want to get their work done. Help them do that. Where are your learners currently at and where do they or you want them to go?

Shared understandings

Sometimes we have to create common or shared understandings. And individual mental models may get in the way. So what do we do — assuming we are talking about adults?

  • Treat people as adults
    • They have survived in the world so far using the mental models they have been using, don’t demean their understanding of the world. Work to understand it. Break it down.
  • Set a common, agreed upon goal — a destination.
    • Unless you can agree upon why things need to change (the marketplace has changed, more than one person needs to use this kitchen, there’s been a merger) you will not get people on your side.
  • Propose a new mental model
    • How will this effect people in their work?
    • What specific behaviors will have to change? Why?
  • Talk about people’s fears and uncertainties
    • Create a safe environment to discuss fear and uncertainty
    • Allow people to vent
  • Experiment and play with new behaviors
    • Make the learning playful but serious (experiential learning)
    • Engage people in finding resolutions to the change
    • Disrupt existing behaviors – have learners reflect on why they did what they did
  • Make a plan to make it happen (action plan)
  • Follow-up (metrics)

I realize these are large bullet points and the struggle is still “how”. It’s hard work to figure out where your learners are currently at and how to change. The specific context matters. Doing the research and analysis matters. Figuring out how to measure the impact of changing mental models matters — what’s the business outcome and how do you measure it?

If I were to ever spend a significant amount of time in my mother’s kitchen, I would start with a conversation that would go something like this: “if we’re going to work together in this space, mom, it would help to make some changes on where you keep things.” I would not, ever again, stomp in there and simply start changing things. She would rightly be furious and resistant.

Imagine the emotional impact on the learners.

Then take it one step at a time.

If you’re all alone in this it helps to brainstorm with friends and colleagues. FYI – I’m always willing to play.

Posted in cognition, instructional design.

Tagged with , , , , , .


Can you train for “black swan” events?

Is it possible to train for completely out-of-the-ordinary, “black swan” events? Something that in your wildest dreams you could never imagine happening? How to train people for something if you don’t even know what it is? Black Swan

Here’s a story ..it happened to me…

Several years ago I was traveling to an client event in another country. I had been in my new position a couple of months at most. My boss was meeting me there, and  was to brief me on the details. I arrived a couple days early to visit with family — a good thing because on Day 1, the client called asking me to come. Boss was still in New York. So in I went.

Upon arrival I was told that a critical video that we created was stuck at the border.  I was to get it released ASAP. I smiled and said “yes, I’ll take care of it.” I had no idea what they were talking about. Couldn’t find my boss. Panic began to eat at the edges of my brain. I called everyone I knew to get the cell number of the one guy who could release the tape. He was eating dinner.  He apologized, and said he would take care of it as soon as the border customs office opened. Whew!

And then the real whammy happened on Day 1 @ 2 am (ok, technically Day 2). My boss called. She missed her connecting flight. She managed to get a flight to a city that was actually further away. Clearly geography was not her strong suite. But crazier still, they threatened to deport her because of something she said when she crossed the border: “work”. Never, ever, say you’re coming in to work in another country unless you have a work visa. I gave her this advice. Repeated it. To sum up, she would not arrive until much later on Day 2 — if she arrived at all. Me alone with the client (that’s plural client not singular) for another day. Didn’t really sleep.

Got up, put a smile on my face, and explained the crazy situation. Then volunteered to do whatever work they needed — and sure enough, they put to work. The tape arrived. Boss arrived. The rest of the event went swimmingly. We all survived.

When I got back, I was treated as a hero — if they could have given me the consultant equivalent of the purple heart they would have.

END OF STORY.

I can’t help think I could have been better prepared.

Is it possible to train for the unexpected?

YES, YES, YES!!!! Except I wouldn’t call it training…

  • Step 1: Tell people the unexpected will happen.
  • Teach them the power of negative thinking (book I read once). Have a team brainstorm about all the things that could go wrong and how you could prepare for them. What are the backup plans? This lesson I learned in radio — some technology will fail, some tape will break (yup, good ol’ analog days), some interviewee will *not* show up. Be prepared. Have a plan. Rehearse your plan.
  • Who will answer the “red” phone at 3 am? The hardest thing is feeling that you are alone in a situation. The one thing that made a difference to me was connecting with one person who was still at the office at 7pm. Hearing a friendly voice tell me that she would do “everything she could to help me” made all the difference. Thank you team mate!
  • Focus on the work that needs doing. I did my best to stay focused on the work that needed doing (get video, get boss, help client) It helped keep most of the anxiety at bay.
  • Stay positive & stay focused on the needs of your client. It would have been very easy to fall into victim mode (“I’m not good enough”, “I can’t deal with this”, “I’m an impostor”, “it’s his/her/their fault”, “it’s not my job!”). Look it’s not about you, it’s about the client. So get over it. Put your “game-face” on, and as trite as it sounds, go out there with a positive attitude. What can you do to help?

Ambiguity, complexity, and the distributed expertise of teams creates “black swan” events. How can we deal with the unexpected, emergent behavior of systems? I think there’s a  game to be created here (or maybe several already exist?)

This isn’t training — it’s strategy.

Would love to hear your thoughts.

Posted in business, instructional design.

Tagged with , , , , , , , , .