Tuesday, July 15, 2014

Change your break hours, make $15 million?

I just finished Social Physics, a book by MIT professor Alexander Pentland:
His basic idea is that progress and wealth are generated by group interaction that's balanced between existing connections and new ones, avoiding both "echo chambers" and isolation.

One example is eToro, a social connection site for day traders. Those who found the "sweet spot" between isolation and echo chamber were richly rewarded: "When traders had the right balance and diversity in their social network, their return on investment increases 30 percent over individual traders." (p. 33)

Even more amazing: the consulting practice Dr. Pentland works with suggested that a call center that was sending agents to break individually start sending groups together instead. This worked in an initial test so well that the large bank involved moved all call center break schedules to this plan and average call times dropped to the extent that it produced an extra $15 million profit for the bank.

I'm mostly working from home these days but after reading this am certainly going to make a point to get out to more user's groups and meetups of various kinds. Who knows what riches are waiting in the folds of the social fabric?


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