The benefits of pessimism

Normal distribution - thin tail

Last week I learnt a new piece of jargon. A ‘fat-tail event’ is something that you thought was virtually impossible, but it happened anyway. In theory, it could be very good or very bad, but it usually refers to something extremely unpleasant, such as a financial crisis.

The phrase comes from statistics. Many randomly occurring events (such as the height of the person you sit next to on the bus) are assumed to follow what is called a Normal Distribution (the classic ‘bell-shaped curve’). So you are more likely to sit next to someone around average height and less likely to sit next to someone really short or really tall. With the Normal Distribution the probability of something really unusual happening tails off really rapidly the further away you get from the average — it has a thin tail.

See the fat tail!

However, some things in the real world don’t follow the Normal Distribution curve. Instead of a thin tail, they have a fat tail. This means that certain extreme possibilities are more likely than you might think.

I was quite pleased to be able to use my newly discovered jargon in a session on negotiation skills I was running last week. I was talking about the usefulness of assessing any negotiated deal by imagining how it would look if subsequent events turned out a lot better or a lot worse than you were expecting (e.g. your fixed-rate mortgage doesn’t look so good if the Bank of England cuts rates to zero).

Does this black swan have a fat tail?

A related term for unexpected events is a Black Swan, coined by author Nassim Nicholas Taleb. This is the unexpected event which you could not have predicted based on your previous experience and derives from the fact that, until they were discovered in the 17th century, most Europeans thought that black swans could not exist.

Are you a maximiser or a satisficer?

Imagine that you were receiving feedback on something you had worked on along with a colleague. Which of these two scenarios would you prefer?

• Scenario 1: You receive great feedback from your supervisor, but your colleague receives even better feedback.
• Scenario 2: You receive really negative feedback from your supervisor but your colleague receives significantly worse feedback.

On the face of it, Scenario 1 seems to be the best situation; you are receiving great feedback rather than negative feedback. However, in one study, certain people experiencing Scenario 2 reported feeling happier and more self confident than those experiencing Scenario 1. They would rather do better than their peers even if it meant performing much worse overall. Not everyone felt this way, though. In fact, it was only people who reported themselves as being generally unhappy who engaged in this social comparison. Happy people were just pleased to get a good report and didn’t measure themselves against other people.

What makes some people more sensitive to their relative success than to their absolute success? And what implications does this have for career decision making?

According to Barry Schwartz and his colleagues the unhappy people are ‘maximisers’ and the happy people are ‘saticficers’.

Classics – Theory of Work Adjustment

If only it were that easy!

You may have noticed the theme of compromise that I have been developing over the latest few posts. Given the economic conditions, it is very likely that people will be forced to make more compromises in their careers. So it seems to make sense to explore the notion of compromise and examine how to do it well.

I’ve decided to continue this theme by introducing another classic theory. This one is primarily a matching theory, but with a bit more to it.

I have included a brief summary of the Theory of Work Adjustment (TWA) in the resources section and you might want to read that first if you are unfamiliar with it. Here I will concentrate on why I think it is interesting.

Twisting the kaleidoscope

In our work with foundation doctors choosing their specialties, I pose a number of questions to help them to think about their choice in more depth. One of these questions is, ‘Have you thought about how your priorities will change over time?’ One of the female doctors accused me of aiming this question specifically at women because they are the ones likely to have to consider issues of work-family balance. However, many of the male doctors I’ve spoken to have also raised the issue of working hours and their impact on life outside work.

Last week the Equality and Human Rights Commission (EHRC) published the research report Working Better: Fathers, family and work – contemporary perspectives. This quote from the conclusions sums up the main findings of the research.

The findings from this survey show that fathers’ attitudes towards parenting do not appear to match the reality of their work and care arrangements. Their rejection of traditional views, dissatisfaction with the time they spend with their children and their strong support for extended paternity leave shows a willingness to be involved in the day-to-day care of their children. In practice, however, most fathers still work full time, and many work long hours.

See the press release for other key highlights. In the report, they admit that the figures may be unrepresentative because men who are actively involved in sharing responsibilities for parenting are more likely to respond to the survey. Similarly, male doctors who are particularly concerned about work-life balance may be more likely to attend optional career management sessions.

Ooooh! Pretty!

In 2005 Lisa Mainiero and Sherry Sullivan introduced the concept of Kaleidoscope Careers as a way to describe the changing priorities over the course of a person’s working life.

Positive compromise

I want to continue this short series of posts based around the theme of compromise by looking at a more modern developments.

In 2004 Charles Chen introduced the concept of positive compromise (Positive compromise: a new perspective for career psychology. Australian Journal of Career Development, 13(2) 2004). Compromise within career choice is generally considered a negative concept. Chen proposes that compromise will always be part of career choice in a complex and rapidly-changing world. Therefore, it makes sense to understand how to engage with compromise in constructive way.

Haunted by the ghosts of compromise

Spooky!

The previous post on Circumscription and Compromise reminded me of a client I saw a while ago for whom compromise was an important issue. (I have changed some of the details to preserve confidentiality.)

Objectively, Martin appeared to have a successful career in television. However, he admitted to being very disappointed with his life. He had started out working on serious social documentaries but had moved into reality television because there were more opportunities available. He was regretting the move because he felt that he had sold out on his principles and was feeling dissatisfied despite his success.

Classics – Gottfredson

Linda Gottfredson - is she circumscribed or compromised? I don't think so.

In 1981, Linda Gottfredson first put forward the theory of Circumscription and Compromise. It sits on the border between matching theories and developmental theories of career choice because it looks at how people’s career matching processes develop over time. It also explores the interaction of sociological factors and psychological factors that determine career decisions.

In a later article Gottfredson talks about how the theory can be applied to career guidance and counselling (‘Using Gottfredson’s theory of circumscription and compromise in career guidance and counseling’ in Career Development and Counseling: Putting Theory and Research to Work — an alternative version). She recommends several different activities to foster good development of career decision making. Although the recommendations are aimed at children (and are a bit jargon-filled), they can provide a useful model for thinking about careers provision at any age.