The Potato Paradox is as follows:

Suppose a potato that is 99% water and 1% “essence of potato” is dehydrated such that it is now 98% water and 2% EOP.  What percent of its original weight does the drier potato now weigh?

(Be very careful to explicitly write out the math. The potato loses more water than you think!)

Our assistant also wrote the following executive summary.  Who knows? You may not even need to go to business school after reading it ; )

Just kidding.  But seriously, have a look. Chapters and summaries:

1. “Let’s Get Retarded”
   1. Harvard’s model intends to teach a way of thinking and approaching situations, rather than facts alone
   2. Overview of the importance of ratios in business (supply:demand, inventory:sales, etc)
   3. Anecdotes about classmates and starting at HBS
2. “Starting over”
   1. Anecdote about Burmese great-grandmother, a successful film distributor and entrepreneur
   2. Description of jobs pre-MBA (worked in journalism) and decision to attend HBS
3. “A Place Apart”
   1. Brief overview of the history of Harvard and his first impressions of it
4. “Riding the Booze Luge”
   1. Told to memorize two conceptual equations:
      1. Assets=liabilities+equity
      2. Accounting=economic truth+measurement error+bias
   2. Discussion of whether accounting is useful
   3. Class on human behavior in business contexts, taught to expect and account for human error and irrational behavior
   4. Anecdotes about the people in his class and party culture--as an older student, felt socially disengaged from many of his peers
5. “Who Am I”
   1. Discussion of the author’s own strengths and weaknesses in the context of having been required to take the Meyers-Briggs test for a class
6. “Formin’, Stormin’, Normin’, Performin’”
   1. “Funding gap” a common problem in new businesses (having more inventory than needed and/or not making enough from sales to pay suppliers and profit)
   2. Importance of prioritizing long-term over short-term profit
   3. Anecdotes about interpersonal drama in classes
7. “To Beta and Beyond”
   1. Chapter primarily about balancing risk and reward, especially in the stock market
   2. Beta = the ratio of an individual stock’s percent increase/decrease to that of the market (beta of 1 = the same, beta of 2 = stock increases/decreases by 2x the increase/decrease of market)
   3. Alpha = the difference between the market’s increase and that of one person’s portfolio (someone with an alpha of 2 will see their portfolio go up 5% if market goes up 3%, 10% if market goes up 8%, etc.)
   4. Briefs of several alumni who guest lectured and discussed importance of work-life balance--difficulty prioritizing and balancing different facets of life becomes a recurring theme
   5. Mentions Toyota as an example of an efficient company, because factory employees are able to report any concerns at any time, therefore eliminating problems early on
      1. Importance of making employees feel valued/necessary
8. “The Risk Master”
   1. Anecdotes about meeting CEOs and their different personality quirks
9. “Insecure Overachievers”
   1. Anecdotes about the stressful and competitive culture of business school, looking for jobs, and networking
10. “Ethical Jihadists”
    1. Marketing classes--“a good product alone won’t get you there”
    2. Vertical vs. horizontal differentiation (vertical = one product is superior in quality to another (designer vs. knockoff handbags), horizontal = same product quality, but appeal to different demographics (women’s vs. men’s shampoo))
    3. Discussion of the ethical issues inherent to business and when it is/isn’t acceptable to compromise one’s moral compass
11. “Extreme Leverage”
    1. Idea of “debt as discipline” because it forces you to focus only on the money and motivates you to work harder and smarter
    2. Visited by Rubenstein, a lawyer turned Carlyle founder—when asked about what he looked for in an employee, said “a reasonable degree of intelligence, a strong work ethic, the ability to get along with others, a desire to build something important, and the ability to keep your ego in check.” Also, “Be a decision maker, not a service provider.”
    3. Tries to start a business, similar to a prototypical podcast library
       1. Discussion of the importance of selling oneself as well as product
       2. His business flopped
12. “Chasing the Curve”
    1. Marketing to “visionaries” who want newest & highest status of everything vs to “pragmatists” who want reliability and are more conformist (Tesla vs. Ford)
    2. Marketing cross culturally—US likes bravado and individual success, Europe likes modesty and “show, don’t tell” competence
    3. Calculating risk in terms of probability—50% chance of moderate gain = 1% chance of massive gain
    4. “Graduate degrees are no guarantee of business smarts”
13. “Big Hairy Goals”
    1. More anecdotes about pressure of corporate culture and struggle of job search
    2. Series of interviews with Google, which asked for “big hairy audacious goals,” and decision not to work for Google
14. “Watching My Children Grow Longer”
    1. Took a class with 50% MBAs & 50% Kennedy School of Government students on “developing business interests in social progress”
       1. Differences in approaches between schools--KSG students were more focused on issues of the big picture & humanity, HSB students were more interested in details & potential for profit
    2. Author’s realization that he is becoming so mathematical in his analyses of economic situations to the point of neglecting interpersonal factors
    3. Anecdote about pre-MBA work as a journalist covering G8 summit protests—enjoyed protesters because “the forces of capitalism needed scaring now and again. who else would keep them honest?”
    4. Wrote term paper about visiting Harvey, a farmer living in an off the grid commune in Maine
15. “Graduation”
    1. More anecdotes about difficulties with job search, advised to prioritize family and not settle for a position he doesn’t want just to have a job
    2. Graduation, given advice over several speeches:
       1. “1. When we look back, the big things will look small and the small things will look big.
       2. 2. Comparison is the death of happiness.
       3. 3. We are all we have; no one will rescue us.”
    3. and
       1. “1. Resist the temptation to be a short termist.
       2. 2. Be honest with yourself about what jobs are the right ones for you.
       3. 3. Keep your moral compass.
       4. 4. Maintain the proper balance between your professional career and your personal life.”
16. “A Factory For Unhappy People”
    1. Reconnecting with some classmates, where they ended up working and how their lives turned out
    2. Reflections on how HBS produces people who want to quantify success and therefore prioritize salary over values

If you found the summary useful, you might be interested in buying the full book.

I asked my assistant to make an executive summary, which I share with you here:

1. Reading People
   
   1. Opens with anecdote about two people; he met Nixon twice--the fact that he used several of the same phrases both times made the interactions feel staged--and represented Doug Sanders, a golfer, who despite a “hustler” persona paid commission in cash for an event McCormack wasn’t aware he had attended
      
      1. These interactions were, in retrospect, representative of both individuals’ personalities
         
   2. Goes further into advice on interacting with people, which can basically be condensed to:
      
      1. Trust your gut, but be rational
         
      2. Listen to and observe people; read between the lines
         
      3. Appeal to and be aware of ego (others’ and your own)
         
      4. Get others’ opinions of people you are doing business with
         
   3. He also has a section on “Golf Course Insight” which is similar to his other advice, but in more anecdotal form.
      
   4. “Seven Step Plan” of reading people:
      
      1. Listen aggressively
         
      2. Observe aggressively
         
      3. Talk less
         
      4. Take a second look at first impressions
         
      5. Take time to use what you’ve learned
         
      6. Be discreet
         
      7. Be detached
         
2. Creating Impressions
   
   1. Discussion of what people might expect from you going into a meeting and when it can be advantageous to confirm/disprove that
      
   2. Written correspondence should be formal but not stiff, and should be personalized; otherwise it feels like spam
      
   3. Associate with people who reflect well on you
      
   4. Dress well (he quotes Chanel here: “if a woman is poorly dressed you notice the dress; if she’s impeccably dressed you notice the woman”)
      
   5. Be punctual and straightforward
      
   6. Be friendly and polite, and flatter strategically
      
   7. Subsection: “The most important personal asset in business
      
      1. “Obviously the real answer is common sense. But if you don’t have it already, you probably never will… sense aside, then, the most important asset is a sense of humor.”
         

From audiobook summary:
Prologue:
“Street smarts” that one should know but that can’t be taught in a classroom
Business is a “duel”—to win, must stay one step ahead of competitors
Innovation, creativity, and intuition are as important as technicalities that are taught in MBA programs

Part 1: People
Chap 1: Reading people
    Must understand potential and current clients—what they want, are motivated by, etc.
    Can deduce this from observation; must get their guards down and make them feel comfortable if they are to behave and speak sincerely
    Important clues—posture, tone, facial expression, etc.
    Listen more, talk less
    First impressions are important; convey warmth, competence, and detachment
    Don’t let people know how much you know about them, and be selective with what you let them know you know and in what manner you do this
    
Chap. 2: Creating impressions
    How to build a good reputation
    Many small, sincere gestures are better than a few grand ones that could be interpreted as phony
    Secretary/receptionist should interact with clients in a way that mirrors desired image—if your receptionist is rude, that reflects poorly on you
    Dress well—people stereotype based on clothing; use that to your advantage
    Keep promises and go the extra mile to be nice, compromise, etc.
    Common sense and humor are most important; putting people at ease and maintaining perspective

Chap 3: Taking the edge
    Take advantage of other people’s perceptions of you
    Take initiative in social and business situations, but don’t rush or act without thinking
    Take all possible opportunities—unknown which will pay off, so invest broadly (but wisely)
    Discipline—know when to act, and when to wait

Chap 4: Getting ahead
    Some people fail and some succeed—this is because they know (or don’t know) what they are capable of, and act accordingly
    Contextualize failure and success
    Say “I don’t know,” “I need help,” and “I was wrong”—shows humility and sincerity
    
Part 2: Sales and negotiation
Chap 5: The problem of selling
    When selling, buyer and seller are unconsciously and consciously weighing pros and cons of transaction
    Salesmanship is very important even in non-sales contexts

Chap 6:Timing
    Most ideas that don’t succeed don’t because they were timed badly, not because they were necessarily bad ideas
    Be patient, try multiple times, and wait for good opportunities
    Renew contracts when people are happy, not when deal is expiring
    Be efficient with people’s time

Chap 7: Silence
    Be comfortable with silences; they force/allow other party to talk without making you overshare
    End meetings on positive note
    
Chap 8: Marketability
    Connection between product/service and consumer
    Market according to consumer perception of product
    Be enthusiastic about product
    Anticipate objections
    Consider what they want and emphasize those facets of product
    Imaging—get people to associate certain traits that they value with the product, to increase its value
    
Chap 9: Stratagems
    Sell with different strategies depending on situation
    Must be able to answer the questions: 1) what is the customer’s need? 2) who is making the purchase?
    Make customer feel like they are smart for choosing your product
    Make them feel like the product is already theirs
    Sell directly and alone to the highest-authority person—one-on-one deals allow for more personalized sales tactics
    Limit choices—alternatives can compromise perceptions of your product
    Don’t overuse visual aids—not necessary for quality product

Chap 10: Negotiating
    Getting people to buy is more complicated than establishing terms of purchase
    5 principles:
        What is the exact thing for sale?
        When will the buyer benefit from their purchase?
        Where can and can’t buyer use the product?
        How unique is the product?
        How much time and money will this purchase save or consume?
    Let buyer make first offer—it shows what they think product is worth. If the offer is high, accepting it makes them feel like they are making a deal
    Don’t take low offers personally, and ask why if they offer something that doesn’t benefit you—if they aren’t deliberately doing this, they will make better offer
    Present deal as mutually beneficial
    If you know their deadline, make the deal feel urgent
    Stick to position and know whether you are ahead or behind
    Will you use legal contract or informal agreement? Both have pros and cons based on trust between participants, size of deal, etc.

Part 3: Running a business
Chap 11: Building a business
    Be aware of all steps between current state of business and desired state of business
    Don’t grow business beyond what management can handle
    Diversify and expand after management is stable
    
Chap 12: Staying in business
    Business becomes harder to manage as it grows
    Systems change and things that may work early on won’t work later/vice versa
    Maintain structure and make employees feel necessary
    Don’t let policy become dogma; evolve it with company’s progress
    Balance between successful precedent and innovation
    Delegate tasks
    Balance flexibility and consistency
    Pay salaries and bonuses according to employee value; low wage and high bonus at beginning to incentivize them, and make them aware of dollar value of benefits—increase salary with experience so that long-term employees feel that they are progressing
    Criticize and praise in balance
    Give employees agency in their tasks
    Prioritize long-term over short-term gains; quality is important and can be seen as an investment in your own business’s long-term success
    
Chap 13: Getting things done
    Be organized and in control of schedule
    Plan for the future
    Record details simply but accurately
    Write down ideas as they come up
    Plan next day at the end of each day; expand to weekly, monthly, and yearly plans
    Adhere to schedule
    Account for human behavior of colleagues and associates
    Make calls, rather than receiving them, and end calls as soon as objective is accomplished
    Be aware of own habits and behaviors, and account for them
    Say no
    Make decisions quickly and don’t overanalyze
    Use simple and specific memos
    Maintain a tidy workplace, where necessary information can be easily found

Chap 14: For entrepreneurs only
    Be emotionally committed to your work
    Examine motives before starting new business, and be aware of problems that will come up
    Implement existing skills and strengths, and be practical
    Money is not a sufficient motivator, especially not at first
    Pay low but compromise with stock and/or bonuses
    Overestimate overheads
    Be cautious in partnerships
    Prepare for potential failure

Epilogue:
    Lessons from sports:
        Don’t be complacent
        Don’t be arrogant

If you’re reading this, you’re nobody’s fool – you know to clean-up your social media presence before you start applying, right?  We all make mistakes (looking at you Gov. Northam!), but you don’t need a reminder to clean-up your messes, right?

Good, glad we got that out of the way; now, we can have some fun.

Think about the “bad” aspects of social media – the “fake” news, the witch-hunts, the trolling.

What do they all have in common?

I’d say their most important commonality is a complete lack of critical thinking.  Face it, we should know better: so many of those stories can’t possibly be true.

I think these “panics” demonstrate an important economic insight: rational ignorance.  For most of us, the truth simply doesn’t matter most of the time; consequently, we don’t bother to investigate.  Honestly, think about the most recent conversation you had with anyone about anything: how much of what they said did you investigate in any way?  Did you ever bother to consider whether their statements matched their previous statements? The objective evidence? Your previous beliefs?

Was the “truth” of what they said very important to you?  Or were you mostly just chatting? Or taking orders? Or giving them?  If your boss is wrong, do you care? If you’re wrong, do you care to be set right?  If you think about it, we often don’t care about the truth, and, thus, we often don’t bother to look for it.

Why does this matter?  Because the MBA admissions officer reading your essay will suffer from rational ignorance: your life will change if he or she makes the wrong decision on your application, but his or her life won’t; consequently, she won’t be trying that hard to get to “know” you.

You need to overcome that rational ignorance – you need to make your application interesting enough to make yourself worth knowing.

So think about social media: what do you read?  What catches your eye? Obviously, you can’t talk about the Kardashians or any of that, but why do people like to read about the Kardashians?  

Ask yourself what makes clickbait clickbait and how you might be able to incorporate those elements into your own application.  How can you increase the conflict in your story? How can raise the stakes?

What do we read?  The rise of the unknown, the fall of the privileged, the life and death of the protagonist, the star-crossed lovers, love at first sight – it’s the same basic stories over and over again.  These stories work as click-bait, and they work as application essays because they’re common human experiences we all care about.

To put it another way, no one really cares about your award at the I-bank because everyone else has one and because it’s got nothing to do with them, but everybody cares about job loss, bankruptcy, and disgrace because we all share those fears.  If your victory over those fears culminated in an award, then that’s a story that will overcome any admission officer’s rational ignorance – even though it’s the same story.

In short, it’s all about presentation, which is precisely why you need our admissions consulting.

As a way to combat rising costs or simply to distinguish themselves from other programs, more and more B-schools are offering degrees other than the traditional MBA, but are these degrees good values?

I think we can’t answer that question unless we first ask ourselves why we’re seeking an MBA in the first place.  

If you want a traditional consulting or I-bank or finance job, then you really need an MBA from the Magic Seven, no questions asked.  I think you might, in some cases, get a pretty good shot at your dreams if you use one of the top foreign business schools, but – honestly – that’s about it.  If you want to punch your ticket, then your choices are few.

If, however, you simply want to “learn,” then – sure – all B-schools have pretty similar curricula.

So what’s the real argument for a non-traditional degree?  It’s that these degrees might help you sneak into a better program than you’d otherwise make, and that could be a good deal for some.

But it’s not the deal you should take.  Look, the GMAT can be beat – it’s not some talent contest that measures what God gave you; it’s an achievement test, which measures how well you’ve learned to play the game.  Rather than looking for a short cut, get help learning the game. Honestly, if people spent half as much time and money preparing for the test as they spend trying to circumvent the test, I think they’d soon realize that beating the test is the best short-cut of all.  Sure, it’s not cheap, but it works.

Second, I think you’d be better off building up your application than looking for new places to send it.  B-school isn’t law school or med school; b-school takes plenty of second-tier academic talents because B-school isn’t looking for school smarts alone.

Third, I think that’s the ultimate problem with “alternative” degrees – what, exactly, are you going to do with your finance degree or whatever?  Prove you’re smart? I mean do you honestly think that your future employers can’t figure out what you’re doing?

An MBA, in large part, signals to employers that you are the kind of person who can get into and graduate from that sort of program; economists call it “signaling”.  So, unless the specialized masters is in the field that's "exactly" what you'll be doing after graduating, the MBA-alternative degree only proves that you aren’t the sort of person who could get into a great MBA program – why would that help you?

Yes, I know – I’m biased: I think you should study for the test and get admissions counseling instead of looking for a short-cut, but biased doesn’t mean wrong.  We’ve built this business because we believe in what we do: we can help you get into a great MBA program.

Or you can look for a short-cut.  The choice is yours.

Chris