Skill and Luck Oct 25th

Listen and follow:

Read the complete topic:

Great success combines skill with luck. You cannot be successful by relying on just one of these two elements. True success requires both elements, skill and luck. Michael Mauboussin is the author of the book: "The Success Equation." This talented leader, writer, and financial strategist gives us the following advice. “Develop your skills and accept luck. The best way to be successful in skill-dominated activities is by exercising deliberate practice. The best way to be successful in activities that are dominated by luck is to focus on the process. Luck plays an important role in every endeavor and there is nothing you can do about it. Acknowledge this and move on, either with deliberate practice or polishing the process.” 

Michael works with world class investment firms that handle large sums of capital. His book “The Success Equation” is extensive and rather complicated because it handles concepts of statistics, probability and strategy. These topics are generally directed to the study of economics, business administration, and capital investments. But we are going to concentrate on two pieces of advice he gives in his book: Hone your skills and focus on the process. 

Hone your skills. The common idea is that you are born with natural talents and gifts. But cognitive science tells us that experts are ordinary people who improve their skills intentionally and systematically. Anyone who can develop the motivation and invest the necessary time, energy and resources, can become an expert, as long as the person practices enough. But here is the interesting thing, the practice must be very specialized. This special kind of practice is called: deliberate practice.

Deliberate practice is a term coined by the scientist Anders Ericsson, who spent most of his life studying this process. In his academic article, he  reviewed a century of scientific laboratory studies on learning, and it was shown that execution improves when participants pay attention to the task and strive to improve their performance.  Experts and outstanding people in a field or branch of knowledge constantly incur in deliberate practice.

To replicate deliberate practice, you need the following. Choose a skill that has well-defined rules. Motivation to want to reach an advanced level. Understand and learn the foundations of that skill. Set specific and realistic goals to reach with practice, by following a method and a study plan. Avoid automatic practice. If it feels easy, there is no growth. You must constantly push to the limits of your ability. Establish intense practice sessions and above all, a consistent schedule, one hour maximum and three to six times a week. Establish timely feedback systems and keep track of sessions and progress.

Focus on the process. Focusing on the process gives you the power and energy required to stay in the present moment. Being present in the here and now, allows you to pay attention to details. Avoid thinking too much about the end result. Avoid thinking about the long way you have left to go. Instead, direct your attention to the step you are working on right now. 

Focusing on the process brings you the following advantages. You can identify errors and find ways to correct and perfect the process. You can enjoy the satisfaction of giving all of your attention, concentration and energy to the practice, like a predator hunting a prey. You can eliminate distractions, becoming one with the activity, just like a dancer, that is one with the music. You can feel in control, because your passion drives your movements, like a painter in the process of capturing a beautiful landscape on his canvas. You can be happy because instead of being desperate to achieve the result, your happiness will be proportional to the effort you put into daily practice, like a hummingbird flapping its wings fifty times a second to maintain flight.

How are you going to do it? Find the cause and effect in the process by keeping an inquisitive mind. What are the flaws? What is the ideal result? What elements do I need? Make sure you understand the process well and keep the steps clear in your mind. Remove unnecessary or repetitive steps. Check back frequently. Doing weekly or biweekly reviews of the process can help you see patterns of stagnation, reversion and advancement. Start building a bright future, today, by focusing your attention on strengthening your skills and focusing on the process.