Prospect theory

The Prospect Theory was developed by Daniel Kahneman and Amos Tversky in 1979. It’s a behavioural model (psychology theory) that describes how people make decisions when presented with alternatives that involve risk, probability and uncertainty. See video below for a one minute explanation.

People usually make decisions based on a perfectly rational evaluation of the potential gains and losses that are associated with that decision. The pain of losing something is stronger than the pleasure of gaining something. Our risk tolerance are different based on the decisions we face. When we are speaking about possible gains we tend to be risk averse, in other words, we will choose options that provide lower expected returns and more certainty. Whereas when the decision is about potential losses we tend to be risk seeking. Which means we will accept the lower than expected value as long as we feel we have some potential to avoid losses.

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Smart kids are not always cool

I was born and raised in London, my parents came from Jamaica and I have been living in Copenhagen since 1997, so I’m always fluctuating between those worlds. I come from the inner city and have seen so much misguided entrepreneurial spirit on the streets. I have met bright, smart hustlers, entrepreneurs who don’t realise their essential product is risk. They have to deal with employees, profit and loss, some of them are extremely sharp and would thrive in the corporate world, but in reality they are not going anywhere because they don’t have the right frame of reference. Inner city kids don’t have access to capital, they have not experienced any world other than their own, they feel isolated and not engaged in the broader community. And from these humble beginnings is why a sub-culture develops.


Anything that is not marketed is not going to be purchased!
You can never become a great communicator if you only understand your own material and not make it relevant to your audience. Connecting is the art of the game. Communication is about connecting with other people and in order to do that you have to listen, learn and understand that your preferences, culture, ideas and concepts are not the only ones on the planet. And if you are going to be effective at meeting more people, you have to be broad enough to at least embrace the notion of how they hear what you are saying. There’s a huge difference between what you intend to communicate and what’s being heard. You have to become bilingual and learn the language of the hearer. Contact me via e-mail for guidance on the survival techniques required to sustain the things you love.

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Are you investing for the future?

It’s easier not to trust people as then no one can disappoint you. The problem is that you end up living a life where you don’t trust anybody and you never end up doing the work you want to do. On top of that our culture has brainwashed us into believing that we need to fit in and we need to work in a factory and we have to buy the most popular items. Boring…

Are you driving large and complex projects independently with many stakeholders involved? Do you have experience from working within a consumer-oriented business, for example, FMCG, retail or branded consumer goods? Contact me via e-mail to arrange a meeting about identifying your strategic challenges and developing solutions to ensure well-planned execution and full implementation.

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