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Neuroscientist Brie Linkenhoker believes that leaders must be better prepared for future strategic challenges by continually broadening their worldviews.
As the director of Worldview Stanford, Brie and her team produce multimedia content and immersive learning experiences to make academic research and insights accessible and useable by curious leaders. These future-focused topics are designed to help curious leaders understand the forces shaping the future.
Worldview Stanford has tackled such interdisciplinary topics as the power of minds, the science of decision-making, environmental risk and resilience, and trust and power in the age of big data.
We spoke with Brie about why understanding our biases is critical to making better decisions, particularly in a time of increasing change and complexity.
Lisa Kay Solomon: What is Worldview Stanford?
Brie Linkenhoker: Leaders and decision makers are trying to navigate this complex hairball of a planet that we live on and that requires keeping up on a lot of diverse topics across multiple fields of study and research. Universities like Stanford are where that new knowledge is being created, but it’s not getting out and used as readily as we would like, so that’s what we’re working on.
Worldview is designed to expand our individual and collective worldviews about important topics impacting our future. Your worldview is not a static thing, it’s constantly changing. We believe it should be informed by lots of different perspectives, different cultures, by knowledge from different domains and disciplines. This is more important now than ever.
At Worldview, we create learning experiences that are an amalgamation of all of those things.
LKS: One of your marquee programs is the Science of Decision Making. Can you tell us about that course and why it’s important?
BL: We tend to think about decision makers as being people in leadership positions, but every person who works in your organization, every member of your family, every member of the community is a decision maker. You have to decide what to buy, who to partner with, what government regulations to anticipate.
You have to think not just about your own decisions, but you have to anticipate how other people make decisions too. So, when we set out to create the Science of Decision Making, we wanted to help people improve their own decisions and be better able to predict, understand, anticipate the decisions of others.
“I think in another 10 or 15 years, we’re probably going to have really rich models of how we actually make decisions and what’s going on in the brain to support them.”
We realized that the only way to do that was to combine a lot of different perspectives, so we recruited experts from economics, psychology, neuroscience, philosophy, biology, and religion. We also brought in cutting-edge research on artificial intelligence and virtual reality and explored conversations about how technology is changing how we make decisions today and how it might support our decision-making in the future.
There’s no single set of answers. There are as many unanswered questions as there are answered questions.
LKS: One of the other things you explore in this course is the role of biases and heuristics. Can you explain the importance of both in decision-making?
BL: When I was a strategy consultant, executives would ask me, “How do I get rid of the biases in my decision-making or my organization’s decision-making?” And my response would be, “Good luck with that. It isn’t going to happen.”
As human beings we make, probably, thousands of decisions every single day. If we had to be actively thinking about each one of those decisions, we wouldn’t get out of our house in the morning, right?
We have to be able to do a lot of our decision-making essentially on autopilot to free up cognitive resources for more difficult decisions. So, we’ve evolved in the human brain a set of what we understand to be heuristics or rules of thumb.
And heuristics are great in, say, 95 percent of situations. It’s that five percent, or maybe even one percent, that they’re really not so great. That’s when we have to become aware of them because in some situations they can become biases.
For example, it doesn’t matter so much that we’re not aware of our rules of thumb when we’re driving to work or deciding what to make for dinner. But they can become absolutely critical in situations where a member of law enforcement is making an arrest or where you’re making a decision about a strategic investment or even when you’re deciding who to hire.
Let’s take hiring for a moment.
How many years is a hire going to impact your organization? You’re potentially looking at 5, 10, 15, 20 years. Having the right person in a role could change the future of your business entirely. That’s one of those areas where you really need to be aware of your own heuristics and biases—and we all have them. There’s no getting rid of them.
LKS: We seem to be at a time when the boundaries between different disciplines are starting to blend together. How has the advancement of neuroscience help us become better leaders? What do you see happening next?
BL: Heuristics and biases are very topical these days, thanks in part to Michael Lewis’s fantastic book, The Undoing Project, which is the story of the groundbreaking work that Nobel Prize winner Danny Kahneman and Amos Tversky did in the psychology and biases of human decision-making. Their work gave rise to the whole new field of behavioral economics.
In the last 10 to 15 years, neuroeconomics has really taken off. Neuroeconomics is the combination of behavioral economics with neuroscience. In behavioral economics, they use economic games and economic choices that have numbers associated with them and have real-world application.
For example, they ask, “How much would you spend to buy A versus B?” Or, “If I offered you X dollars for this thing that you have, would you take it or would you say no?” So, it’s trying to look at human decision-making in a format that’s easy to understand and quantify within a laboratory setting.
Now you bring neuroscience into that. You can have people doing those same kinds of tasks—making those kinds of semi-real-world decisions—in a brain scanner, and we can now start to understand what’s going on in the brain while people are making decisions. You can ask questions like, “Can I look at the signals in someone’s brain and predict what decision they’re going to make?” That can help us build a model of decision-making.
I think in another 10 or 15 years, we’re probably going to have really rich models of how we actually make decisions and what’s going on in the brain to support them. That’s very exciting for a neuroscientist.
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Last week, Eric Schmidt, chairman of Alphabet, predicted that China will rapidly overtake the US in artificial intelligence…in as little as five years.
Last month, China announced plans to open a $10 billion quantum computing research center in 2020.
Bottom line, China is aggressively investing in exponential technologies, pursuing a bold goal of becoming the global AI superpower by 2030.
Based on what I’ve observed from China’s entrepreneurial scene, I believe they have a real shot of hitting that goal.
As I described in a previous tech blog, I recently traveled to China with a group of my Abundance 360 members, where I was hosted by my friend Kai-Fu Lee, the founder, chairman, and CEO of Sinovation Ventures.
On one of our first nights, Kai-Fu invited us to a special dinner at Da Dong Roast, which specializes in Peking duck, where we shared an 18-course meal.
The meal was amazing, and Kai-Fu’s dinner conversation provided us priceless insights on Chinese entrepreneurs.
Three topics opened my eyes. Here’s the wisdom I’d like to share with you.
1. The Entrepreneurial Culture in China
Chinese entrepreneurship has exploded onto the scene and changed significantly over the past 10 years.
In my opinion, one significant way that Chinese entrepreneurs vary from their American counterparts is in work ethic. The mantra I found in the startups I visited in Beijing and Shanghai was “9-9-6”—meaning the employees only needed to work from 9 am to 9 pm, 6 days a week.
Another concept Kai-Fu shared over dinner was the almost ‘dictatorial’ leadership of the founder/CEO. In China, it’s not uncommon for the Founder/CEO to own the majority of the company, or at least 30–40 percent. It’s also the case that what the CEO says is gospel. Period, no debate. There is no minority or dissenting opinion. When the CEO says “march,” the company asks, “which way?”
When Kai-Fu started Sinovation (his $1 billion+ venture fund), there were few active angel investors. Today, China has a rich ecosystem of angel, venture capital, and government-funded innovation parks.
As venture capital in China has evolved, so too has the mindset of the entrepreneur.
Kai -Fu recalled an early investment he made in which, after an unfortunate streak, the entrepreneur came to him, almost in tears, apologizing for losing his money and promising he would earn it back for him in another way. Kai-Fu comforted the entrepreneur and said there was no such need.
Only a few years later, the situation was vastly different. An entrepreneur who was going through a similar unfortunate streak came to Kai Fu and told him he only had $2 million left of his initial $12 million investment. He informed him he saw no value in returning the money and instead was going to take the last $2 million and use it as a final push to see if the company could succeed. He then promised Kai-Fu if he failed, he would remember what Kai-Fu did for him and, as such, possibly give Sinovation an opportunity to invest in him with his next company.
2. Chinese Companies Are No Longer Just ‘Copycats’
During dinner, Kai-Fu lamented that 10 years ago, it would be fair to call Chinese companies copycats of American companies. Five years ago, the claim would be controversial. Today, however, Kai-Fu is clear that claim is entirely false.
While smart Chinese startups will still look at what American companies are doing and build on trends, today it’s becoming a wise business practice for American tech giants to analyze Chinese companies. If you look at many new features of Facebook’s Messenger, it seems to very closely mirror TenCent’s WeChat.
Interestingly, tight government controls in China have actually spurred innovation. Take TV, for example, a highly regulated industry. Because of this regulation, most entertainment in China is consumed on the internet or by phone. Game shows, reality shows, and more will be entirely centered online.
Kai-Fu told us about one of his investments in a company that helps create Chinese singing sensations. They take girls in from a young age, school them, and regardless of talent, help build their presence and brand as singers. Once ready, these singers are pushed across all the available platforms, and superstars are born. The company recognizes its role in this superstar status, though, which is why it takes a 50 percent cut of all earnings.
This company is just one example of how Chinese entrepreneurs take advantage of China’s unique position, market, and culture.
3. China’s Artificial Intelligence Play
Kai-Fu wrapped up his talk with a brief introduction into the expansive AI industry in China. I previously discussed Face++, a Sinovation investment, which is creating radically efficient facial recognition technology. Face++ is light years ahead of anyone else globally at recognition in live videos. However, Face++ is just one of the incredible advances in AI coming out of China.
Baidu, one of China’s most valuable tech companies, started out as just a search company. However, they now run one of the country’s leading self-driving car programs.
Baidu’s goal is to create a software suite atop existing hardware that will control all self-driving aspects of a vehicle but also be able to provide additional services such as HD mapping and more.
Another interesting application came from another of Sinovation’s investments, Smart Finance Group (SFG). Given most payments are mobile (through WeChat or Alipay), only ~20 percent of the population in China have a credit history. This makes it very difficult for individuals in China to acquire a loan.
SFG’s mobile application takes in user data (as much as the user allows) and, based on the information provided, uses an AI agent to create a financial profile with the power to offer an instant loan. This loan can be deposited directly into their WeChat or Alipay account and is typically approved in minutes. Unlike American loan companies, they avoid default and long-term debt by only providing a one-month loan with 10% interest. Borrow $200, and you pay back $220 by the following month.
Artificial intelligence is exploding in China, and Kai-Fu believes it will touch every single industry.
The only constant is change, and the rate of change is constantly increasing.
In the next 10 years, we’ll see tremendous changes on the geopolitical front and the global entrepreneurial scene caused by technological empowerment.
China is an entrepreneurial hotbed that cannot be ignored. I’m monitoring it closely. Are you?
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