There is much potential to increase the level of diversity in employment, education or politics without imposing quotas. Despite approaching Microsoft with the idea of a system whereby people could share Office documents over the nascent internet and being roundly rejected, Rory went on to help found OgilvyOne, the group’s dedicated digital and direct agency. He remains an advocate of so-called ‘360 Degree Branding’ ensuring brands have a coherent, joined-up presence in all relevant media areas. Rory was appointed Head of Copy, and shortly afterwards Creative Director of Ogilvy. He has also served as the president of the Institute of Practioners in Advertising (IPA) - the first ‘creative’ to do so. Ogilvy is now part of the massive WPP ad and media group and count Ford, Unilever, IBM, American Express, BP, and British Airways amongst their top accounts. Habit, which can often appear irrational, is perfectly sensible if your purpose is to avoid unpleasant surprises. Like classic behavioral economists Daniel Kahneman and Richard Thaler, Sutherland peels away hidden, often irrational human behaviors that explain how the world around us functions. In How to Be an Alchemist he examines why certain ads work and the broader truths they tell us about who we are. Why do people prefer stripy toothpaste, and how might that help us design retirement plans that young people would actually buy? Why do we think orange juice is healthy, and how does the same principle guide our feelings about nuclear reactors? Why do budget airlines advertise services they don’t offer—and what might insurance companies learn from them about keeping healthcare costs low? The anecdote was providing an example about the importance of understanding social pressure. Fine. But the problem is that this latter question is extremely logical and rational, while the problem quote he claims was uttered (notably, I can't find this confirmed anywhere) is unequivocally emotional, not rational. In this case, seemingly without knowing it, he's advocating for even more logic so as not to fall victim to emotions wrought by social pressure.

Brands are just products with no price tag… People don’t buy images or messages; they buy better versions of themselves.” 6. Think like a designer Economic theory is an insufficient way to identify value proposition - both in B2B and B2C scenarios. Loss avoidance and personal status gains are a much stronger motivators than prospects for economic gainsThis article is based on the book “Alchemy: The Surprising Power of Ideas That Don’t Make Sense” by Rory Sutherland. This book changed my way of thinking, and I would like to share 11 rules with you, which can help you make better decisions and life choices. (Note: This post is made as a summary and should not be used verbatim in any other context. If you want to use the ideas, please buy the original book)

Even when designing for the able-bodied, it is a good principle to assume that the user is operating under constraints (e.g. injured, hands fulls etc). Of course, many solutions do require a rational solution. Rory Sutherland says, ‘I don’t want a conceptual artist in charge of air traffic control’. However, he argues that in decisions where the definition of success involves some element of human perception, the solution has to allow for that. This leads me to another problem: This book is plagued by selection bias. There are many times where rational ideas are in fact the best ones. There are plenty of times where logical thinking trumps emotional thinking. And there are also times where I questioned his evaluation of what constitutes an overreliance on logic and what constitutes, ahem, Alchemy. One problem (among many) of Soviet-style command economies is that they only work if people know what they want and need, and can define and express that preference adequately. But that is impossible, because not only do people not know what they want, they don't even know why they like the things they buy. Promoting a more balanced diet of transport optionsbreaks free of 'fast food' thinking. People should be free to travel in healthier and more sustainable ways, overcoming the default to drive. By thinking in terms of user capability, opportunity and motivation to travel (and sometimes not-need-travel) we can (re)build more inclusive and resilient transport systems.In Part 2: An Alchemist's Tale (or Why Magic Really Still Exists), Sutherland shares one question on a test an ad agency used for prospective copywriters: Here are two identical 25 cent coins. Sell me the one on the right. One candidate answered he would take the coin, dip it in Marilyn Monroe's bag and then say, "I'll sell you a genuine 25-cent coin as owned by Marilyn Monroe." (I'm quoting. Perhaps "quarter" is an unfamiliar term?) The lesson? "We don't value things; we value their meaning." I remember my older sons wanting a Pokemon Charizard card in the early 1990s. It was "rare". Despite there being hundreds of thousands printed, there was a perception of rarity because so many more of the other cards were out there in the market. For them, there was value applied. We don't value things, we value their meaning. What they are is determined by the laws of physics, but what they mean is determined by the laws of psychology. One might think many animals will adopt and change their color to surrounding so as to hide from predator. However, there are few insects/worms which have adopted to be very brightly and lively colored which makes them easily visible even from far distances. This should make them easy prey in the wild?? … maybe not. It’s a costly signalling but it works, From being described as the worst graduate trainee that Ogilvy & Mather had every hired, Rory took a while to find his calling in life. From unlikely beginnings as a classics teacher to his current job as Vice Chairman of Ogilvy Group, Rory's rise through the ranks is as unconventional as his dress sense.

Look, I'm not saying the big idea here is bankrupt. It's true that sometimes we get caught up in overly logical thinking and forget that humans are very silly, dumb, and emotional animals and often do what they do for silly, dumb, and emotional reasons. This is important to keep in mind especially, I would say, in marketing. But that single big idea is really all this book has to offer. Problem solving is a strangely status conscious job: there are high-status approaches and low-status approaches (think consulting/coding vs design). Signalling is the idea that humans attach significance to a communication proportional to the cost of generating or transmitting it. An expensive or well-designed wedding invitation will command more attention than an e-card. The sunk cost of expensive advertising signals a brand’s permanence.

Two amounts one is prepared to spend in a store : "zero" or "a lot". Purchasing expensive treats or finding bargains both have a dopamine rush. The way a question is phrased can influence the decision. For instance, if a waiter asks “Sparkling” or “Bottled” before serving you water at a restaurant, you’re unlikely to say “Tap” The economy is not a machine. It is a highly complex system. Machines don't allow for magic, complex systems do.

Rory Sutherland is the Vice Chairman of Ogilvy UK and the co-founder of its Behavioural Science Practice. He is author of Alchemy: The Surprising Power of Ideas that Don’t Make Sense, writes The Spectator’s Wiki Man column and presents several series for Radio 4. His TED talks have been viewed more than 7 million times. AND WHILE I AM HERE: there's a chapter on the placebo effect which says perfectly sensible things about exploiting the effect for everyone's benefit (eg why not colour aspirin red, because it feels more dramatic to take red pills) and then suggests that for the same reason we should encourage the use of homeopathy. That just sums this book up--Mr. Too Clever For Logic apparently can't see any difference between better marketing of an effective product and selling something as medicine when we know for a fact it doesn't work. There is a point where marketing becomes active dishonesty and this careers over it. Its difficult to reply with “tap water” when you are being asked by waiter “Still or Sparking water?”Every marketer can sell a product, but to create an emotional bond, you need to be able to give something away… It is much harder and more effective to make someone feel they deserve something than that they simply want it.” 10. Aim for your pains, not for your pleasures You might think that people instinctively want to make the best decision, but there is a stronger force that animates business decision-making: the desire to not get fired or blamed. The best insurance against blame is to use conventional logic in every decision.