š¬ Imagine this. You work in film. You made a movie. You were nominated for an Academy Award last year. You earned a great salary.
You want to make another movie. Itās an idea youāve had for a while. You watch a lot of scenes from your favorite movies. Itās gonna be like this. You start to edit your favorite film footage into montages of whatās in your head. Yeah, like this.
You need actors.
Actors come. Actors read. Actors leave, rather, they are dismissed. Youāre demanding.
You have a list. Call these people back you say to your casting director Fred, I need to see them on film and I need to see them together. You three people.
Sure, Fred thinks. Itās a good list. He likes it. But not that much. Fred adds some names. Thereās one guy Fred really wants. You already worked with him. He was good. But you donāt want all your movies to be with him. Fred wants him though. Fred hires him to be around and suggests that since the guy is here he can read with other people.
Sure you say.
The guy is fine. No, heās good. The more he reads the more you like him (thanks Fred!). A woman that Fred added back is really good too. Really really good with this guy. Heās smooth. She doesnāt buy it. This is a good combo. Another guy that you dismissed and Fred added back is good too. This is a good trio. Is this the trio?
š§ Your problem is an allocation problem. How do you allocate scarce resources (roles in your movie)?
Usually, we allocate by proxy. We do one thing that (might) map to the job we want. Interviews are like this.
āWe know from years of data that job interviews donāt predict a whole lot, the main thing they predict is if I like you and thatās not necessarily job relevant information.ā Cade Massey
Other times we use proxies that are easy to quantify. Any industry where analytics has risen in prominence over the last two decades is like this: investing, sports, etc. The easy measures (hits) have given way to more predictive measures (on-base-percentage).
A third way to allocate is under the no-one-gets-fired-for-buying-IBM approach. Itās where local incentives triumph over larger incentives.
A wildcard allocation idea from Rory Sutherland is to allocate in groups. Hire in groups, Sutherland says, and youāre bound to get diversity. Itās like shopping, if youāre buying two tops do you get identical items or do you change the pattern, colors, cut, etc?
Another allocation idea is to include someone like Fred.
š¦ This is a good trio. Thereās another trio too though. The other trio is serious. This trio is goofier. The other trio is your choice. This trio is Fredās choice.
Weāll go with this trio.
You were George Lucas.
One thing thatās great about Lucasās experience is that he didnāt have to answer to anyone, and avoided the buying-IBM angle.
About that other trio: Han Solo would have been played by Christopher Walken.
š Resource allocation comes up in a lot of places. If time is included it comes up everywhere. Whatās the best person to hire for this? Whatās the best project to add money to? Whatās the best way to spend my time?
The lesson from Star Wars this week - a belated May the fourth be with you - is to have a Fred that sprinkles in secondary choices for a second look.