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Log In / Register | Feb 9, 2012

Prophet and loss statement

Posted Thu, 2009/12/31 - 09:39 by Les Stewart

The belief that individuals have substantial control over specific physical, mental, & financial wealth abides. Cynicism continues to be confused with Knowledge.

Influence: The Psychology of Persuasion, Cialdini

Posted Wed, 2008/04/16 - 18:14 by Les Stewart

Do Diligence,

Some of the methods mentioned so far, advertising, propaganda, and thought reform can be used to influence people's behavior.

Thought Reform: Six Necessary Conditions

Posted Mon, 2008/04/14 - 07:52 by Les Stewart

Margaret Thaler Singer (1921-2003) wrote Cults in Our Midst: The Hidden Menace in Our Everyday Lives in 1995. It is an important contribution to this much misunderstood area of psychology. These conditions were lifted directly from the International Cultic Studies Association.

I might suggest reading each condition carefully and noting if any of this relates to your experience before, during and after running a franchise. Note the role of deception, information control and manufactured passivity.

Groupthink: Definition and Symptoms

Posted Sun, 2008/04/13 - 07:50 by Les Stewart

Groupthink

Definition:
the psychological drive for consensus at any cost that suppresses disagreement and prevents the appraisal of alternatives in cohesive decision-making groups. (Irving L. Janis)

The Curse of Knowledge

Posted Tue, 2008/02/19 - 18:37 by Les Stewart

We tend to forget that the technical knowledge we have acquired over years may not be very widely known.

Richard H. Thaler is the Robert P. Gwinn Professor of Economics and Behavioral Science, Graduate School of Business, University of Chicago. Chicago U is not normally seen as a very "touchy feely" school.

"Once we know something, we can't imagine ever thinking otherwise. This makes it hard for us to realize that what we know may be less than obvious to others who are less informed. The curse of knowledge will lead me to think that others will have read the same articles I have, and have learned the same lessons from them (lessons I take for granted), when in fact others have been busy reading entirely different material, and have never even heard of the finding that have so influenced my thinking."

From Homo Economicus to Homo Sapiens, Winter 2000

A rush to judge others maybe partially caused by our own human cognitive biases.

 

Neuroeconomics: Explaining irrational financial decisions

Posted Sun, 2007/04/29 - 18:24 by Les Stewart

People will go against their own self-interest…even if the reaction cannot change the behaviour…It really vexes economists.

The classical economic model that consumers are rational beings, equipped with a steely logic to further their best interests is increasingly being questioned.

I have found the hybrid fields of behavioral finance, law and economics, social psychology, and others to offer tremendous, though little understood, insight into why many franchise investors makes decisions that are predictably against their best interests.

Crunchy Frog: The Merit in Accurate Franchise Risk Disclosure

Posted Sat, 2007/02/03 - 14:56 by Les Stewart
I must be a little twisted, but I really enjoy the work done by Monty Python and the Flying Circus.

Whenever disclosure regimes are mentioned I often think of one of their skits, called Crunchy Frog. I think if you have any franchising experience at all I think you'll enjoy a quick read over the script .

Cast
The two main characters are Inspector Praline (John Cleese) and a Mr. Milton (Terry Jones). Graham Chapman gets to hurl in his helmet.

Canadian System Expands into U.S. and Beyond

Posted Fri, 2007/02/02 - 12:56 by Les Stewart
A Canadian-owned system is offering U.S. master franchise opportunities now. I understand that there has been some U.S. experience under this tradename

Tomorrow (Sat, Feb 3rd, 7 pm eastern), a well respected Canadian TV investigative journalism show, CTV's W-FIVE will be airing an episode. If you have an economic interest in this tradename or its history, please look here to see some newspaper articles reprints.

Trust: The Tie that Binds Franchising's Future

Posted Fri, 2007/02/02 - 10:33 by Les Stewart
Ever wonder what Blue MauMau's "product" is?

It's trust.

Trust first, Cooperation second
Although this sounds like it goes against traditional economic theory, high levels of TRUST are needed for EFFICIENT markets.

In an abusive relationship, trust is the first casualty. We survive by distrusting others and, unfortunately, learn to not trust our own judgments.

Not Alone
By comparing experiences, this corrosive process is reversed. Once sufficient trust has been built, systemic, experience-based solutions can be established.