It is well documented by scientists, and anyone who has ever observed stock-market swings or fashion trends, that the ‘herd-instinct’ is an innate, ingrained component of the human psyche.  We all have a social-group we belong to, and how we behave in the world signals our ties in society.

Users of the iPod often purchase the item with full knowledge that is not the mp3 player with the best value, or most sophisticated features.  The prevalence of the iPod, and it’s visually pleasing, conspicuous design, created a cycle which spurred myself and many others to buy one as well.  Beyond the merits of the iPod, this behavior reflects the tendency for conformity in purchasing decisions.

Diamond-rings, and more recently, Pandora charm bracelets, have become staples of the gift-giving culture for similar reasons.  They certainly have merit which makes them worthwhile, but they also satisfy the desire for conformity, and allow people to signal in a socially conspicuous manner their affection for another. Satisfying the need to fit-in, and express their love.

Within the past few decades, the desire to fit-in has come to compete with an opposing desire—the urge to stand-out.   Striving to be unique and ‘find oneself’, has become an accepted rite of passage in American culture.   Nowadays, it is not only okay to be different, but cool as well.  Products which allow people to express themselves continue to proliferate, and can be seen as the impetus behind activities like blogging.  We all feel there is something special about ourselves, and we strongly desire to show these characteristics to the outside world.

The iPod, with the ‘i’ in the product name hinting at personal fulfillment and self-realization, allows consumers to customize the color and style of their device. More importantly, the iPod allows users to customize the type of songs they select and place on their playlist, which accurately reflect not only their taste, but their personality as well.   Music taste acts as an accurate predictor of personality, and as a social-filter, where it helps individuals find like-minded people.  When I first grooved with a close friend over some old-time jazz standards, we became more in-tune with one another, and the harmony in our relationship grew.

The Pandora bracelet also offers a speck of conformity, intermixed with a channel for self-expression.  The bracelets are themselves mostly similar, and play a subordinate role to the charms, which are purchased separately and individually.  The choice of charms ranges widely—every color, style, and material imaginable is available.  Pandora bracelet owners mix and match the charms which appeal to them the most, and that others give them as gifts, and in the process create a charm medley which is unique and original to their own preferences and personality.

Our products in this day and age serve many purposes beyond their technical functions, communicating to the world not just what we like, but who we are.    This burgeoning desire for individuality has not squelched the necessity of conformity, so products which wed the two in an attractive, appealing manner, are those which are to be the most popular and enjoyable.

But does reputation matter today?

Evidence of current events in the business world would suggest a company’s reputation is less important than other considerations.

Harvard Business School writer Gill Corkindale discusses here, numerous companies who continue to thrive despite having execrable public images.

Railway transportation company (Eurostar) thrives following a public-relations disaster in which they handled customers unsafely—an egregious error. Despite receiving criticism, the crisis did not reduce revenues significantly because the service they offer is so convenient and a bargain. Corkindale also rehashes similar instances that occurred within the airline industry, where passengers have been treated inhumanely but the brand of the airline has not been tarnished.

Financiers receive a great deal of flack for the economic ills they’ve imposed, which nearly culminated in a global macroeconomic meltdown.  Yet just this year, with the bank bail-outs still fresh in the minds of many people, bankers took home huge bonuses with an air of self-righteousness—one Goldman Sach’s executive  even proclaimed “banking is ‘God’s work’.”

The banking industry may be the exception here rather than the rule.  Government protects the banking industry which it believes is so vital to the economy it cannot be allowed to fail. Big-time bankers get a pass on maintaining a pristine image in public.

Instances such as Eurostar, where consumers are treated boorishly but can’t switch to a competitor in the same industry, demonstrate the importance of competition for maintaining consumer welfare.  Where there are many competitors, such as the auto-industry, any blemishes in a company’s reputation will lead consumers to happily buy from their competitors.  Toyota provides evidence from recent affairs for this point.

Choice Matters—Where consumers are able to exercise their choice in preferences, a corporation’s image will have a significant impact on it’s success.

Recent studies and common-sense suggest an individual’s reputation will have a decisive impact on their career. Studies here and here, point out the following:

1-Sharing is Caring-A person’s reputation will decide how likely others will be to share salient information with them.

Reputations were assessed based on several factors, including: the duration of the relationship, the proximity of the two people, and the history between the persons.

2-Reputations and Persuasion—Decision makers are much more likely to find arguments persuasive if they trust the person making them.

People are more credulous of those they trust, and this is true in any social environment, including business.

3-A Good Reputation Means Enhanced Collaboration—Co-workers will be more likely to work effectively with a person who they feel is benevolent, trustworthy and capable.

Their perception will be based on the historical record of the person in question.

Building a track-record based on these values—benevolence, trust and competence—is a fool-proof way to becoming indispensable to any organization.

To get ahead, hold that head high.

This fascinating study has implications for the business world, where employees perform at varying levels in a highly social environment.  There are many parallels between the classroom and board-room.

The study claims that removal of the top and bottom 5% of students from a classroom will improve the performance of males while having disparate effects on females. The general rule here is that segregation based on aptitude will have unique consequences, dependent upon the gender and ability of those involved.

1-The Bright-Kid Effect—Girls benefit from more interactions with very smart peers, while these interactions harm boys – especially those who are brighter themselves.It is most harmful for men to feel they are little fish in a big-pond, research suggests.

2-The ‘Bad’ Bottom 5%—Students in the bottom 5% of the ability distribution negatively affect the cognitive performance of other schoolmates. Not those students in the bottom 5-to-10%, however—only those in the bottom 5%.

3-The Neutral Average—The average aptitude of a classrooms students has no affect.

In the workplace we may expect similar occurrences.  The performance level of any employee will be influenced by interactions with colleagues, and will here also depend upon the ability and gender of those involved.

Could there be benefits to employee segregation?

The famous Jack Welch, of General Electric practices a ‘differentiation’ approach with his employees which he discusses here.  His methods include ranking each employee based on performance, rewarding the all-stars, and weeding out the bottom 10%.

Welch is considered a management guru, and enjoyed great success at General Electric.  His winning track-record may have been a product of different times and special circumstances.  As a 69 year old executive of a technology-based company, a majority of his career was spent managing predominantly males one presumes.  The technology industry is heavily populated by male workers who assume a majority of science-intensive jobs.

In short, ‘differentiation’, as Welch recommends, may only work in industries which employ men disproportionately.  Weeding out the weakest performers could work universally, however.

That said, are you using it right?

How to use caffeine to maximize performance:

1) Consume in smaller, more frequent amounts.

2) Play to your cognitive strengths while wired.

3) Play to caffeine’s strengths.

4) Know when to stop – and when to start again.

5) Find good sources of caffeine.  For instance, green tea is delicious and has additional health benefits.  Soda-pop has ill effects.

Check out this blog for more.

A recent example would be the American Idol television show audition of funky and hip senior-citizen Larry Platt.  His rendition was titled, ‘Pants on the Ground’. The performance is by a complete amateur, and received the undivided attention of nearly 500,000 captivated viewers.

The meme usually captures something absurd and related to pop-culture.  It is not easy to exploit but does offer a tool for potentially explosive promotion.  Usually memes are embraced as a form of viral marketing.

A recent article in the Huffington Post highlights entrepreneurs who see opportunities in the needs of third-world countries—and profit from them.  Many young entrepreneurs are demonstrating it is possible to create  goods and services which uplift those in poverty and preserve our planet, while also turning a solid profit.

To have eco-friendly products is not only good for the earth—but good for the bottom line.  Consumers prefer patronizing brands with a socially-conscious image—it provides a warm feeling of ‘doing the right thing.’

The business of doing good, is a good business indeed.

On a related note, businesses which foster a strong moral ethos within their employee ranks will outperform those without an ethical compass. I foresee this happening for several reasons:

1-A person’s identity is closely tied to their profession and employer.  Workers will enjoy great intrinsic rewards from their association with an organization doing some good—customers too.  Good company values will help attract and maintain loyal employees and clients.

2-A biz with well defined ethics will have less irresolvable conflicts amongst its employees and clients.  If a rule exists to settle disputes in advance, the issue is solved by precedent and all parties save face.

3-Greater output and production will occur—combined with less chicanery. Where it is crystal clear who is responsible for what work, greater accountability, transparency and honesty will exist.  Companies such as Enron prosper short-term through their creative accounting charades, but long-term, dishonesty and opacity is a recipe for disaster.

4-Collaboration is hard. It will occur with greater frequency and effectiveness in organizations which promote values conducive to overcoming the challenges of teamwork (e.g., reciprocity)

An organization which is successful long term must be composed of individuals who subvert their short-term, selfish needs for the greater good of the collective entity.

This won’t happen by accident or luck, the right environment and incentives will make this feasible.

What are some others reasons why sounds ethics are a part of good business?

Three things to handle before approaching the money-men:
1-Bring together a strong management team.

2-Develop an idea which addresses a growth industry or an easily captured market segment.

3-Have well defined company objectives, philosophies, operating procedures and projections.

There are an infinite number of ways to approach each task, and the best method will depend upon the circumstances of the entrepreneur.

Bringing together a strong management team is important because the success of any project will be contingent upon the capabilities of the people involved.

Money-men will be most eager to allocate funds towards industries which are growing or glamorous. Alternatively, if an industry’s growth is stagnant, they will be prone to withhold their funds and stunt the growth of your biz.

Lastly, be sure the framework of your biz is established to signal intense planning has occurred.  Before you are financed, you must convince the capital-keepers you’ve developed a culture, methods of operation, and financial forecasts which will be conducive to success.

Fellow blogger, master wit, and popular-culture guru Chris Ryan over at Fancy That has written a masterful analysis of an often neglected subject—the elements of an entrepreneur.  Chris incisively points out the dictionary definition of an entrepreneur describes their work, but not their personal characteristics.

I found many of the assertions compelling, here are a few gems:

1-Successful entrepreneurs tend to share a common set of characteristics

2-An entrepreneur is an occupation, and a way of life

3-Business savvy is only one part of the picture.  To turn a vision into reality requires superhuman drive and fortitude—for this reason, the best entrepreneurs often have a unique philosophy on life which allows them to thrive facing great challenges.  For example, the renowned Tim Ferriss embraces Stoicism.

4-The entrepreneurs most important resource is his own mind, and his self.  These are interdependent, and must be maintained and developed meticulously.

5-There are many pitfalls; numerous ‘entrepreneurial sins’ exist, and can have destructive consequences on the prospects of any project.

The above is just a taste, for more, go to Chris’s article here.

Professor Betsey Stevenson found, by examining data on a state-by-state basis, that women who participate in sports experience better employment and educational achievement throughout life.

“It’s not just that the people who are going to do well in life play sports, but that sports help people do better in life,” Stevenson said in a New York Times interview.

Economist Dr. Kaesner found that athletics decreased the risk of obesity, diabetes, and other associated health problems later in life.

There is a strong correlation between health and productivity long-term, so it seems more credible that these studies corroborate with one another.

My own experience with sports has been informative and support these researcher’s findings.  People who participate in sports learn teamwork, discipline and the benefits of leading an active lifestyle.

When hiring, extra-curricular activities are always considered, but athletic achievements should perhaps be given extra weight because they signal a person is likely to be healthy, conscientious and cooperative—three traits which make them desirable as an employee and colleague.

Professionals who aspire to improve their ‘soft’ biz skills may benefit from participation in sports leagues, which can also be a great deal of fun and a nice way to meet like-minded people.