Embracing the Constants: Insights from "Same as Ever" in the World of Project Management
Same as Ever: A Guide to What Never Changes is a book written by Morgan Housel, known for his earlier work, "The Psychology of Money." It is already one of my lifetime inspirational (and I am not alone) operas.
Same as ever represents a unique perspective, urging readers to focus on the unchanging aspects of life and the world around us.
I found it as a master class in optimizing risk, seizing opportunity, and living a fulfilling life, through the lens of identifying things that are constant in a world that often seems overwhelmingly focused on change.
Housel's approach to finance and economics often centres on the human elements behind money and investment, which is a refreshing perspective in a field often dominated by numbers and technical analysis.
The author emphasizes understanding one's risk tolerance and the psychological factors that influence decision-making under uncertainty by recognizing constants in the economic world, such as market cycles and human behaviour, individuals can make more informed decisions about risk.
The approach goes beyond traditional risk assessment models, incorporating a deeper understanding of human psychology and historical patterns.
Often Housel focuses on identifying opportunities that are not always apparent.
It involves understanding the long-term trends in the market and the economy, rather than getting swayed by short-term fluctuations. Housel, moreover, advocates for a more thoughtful and patient approach to investing and financial decision-making, which can lead to seizing opportunities that others might overlook.
Living a Fulfilling Life
A significant aspect of Housel's writing is the connection between financial decisions and overall life satisfaction.
He suggests that understanding what never changes — such as the value of time, the importance of simplicity, and the pursuit of meaningful goals — can lead to a more fulfilling life; by focusing on these constants, individuals can align their financial strategies with their personal values and long-term life goals.
Instead of focusing on Constants in a Changing World, Housel’s work encourages a focus on the unchanging elements as well, in a world that is often fixated on rapid change and innovation, including understanding fundamental principles of human behaviour, economic cycles, and the enduring nature of certain financial truths.
Focusing on these constants, individuals can navigate the complexities of the financial world with a clearer perspective and a sense of stability.
Key insights from the book
I might highlight and summarise 7 points above that provide insightful reflections on life, progress, and the importance of focusing on constants in a world that is constantly evolving. I should apply those rules easily also in Project Management.
Understanding the Pendulum of Life
The book uses examples like the heavy rain in 2017 in California, which led to lush greenery but was followed by a dry 2018, causing vegetation to dry up and resulting in large wildfires. This illustrates the world's dynamics, swinging between extremes like calm and chaos, fear and greed. Recognizing the power of 'enough' in various aspects of life is emphasized.
In project management, this can be seen in the cyclical nature of high-pressure deadlines followed by periods of calm. Recognizing the 'enough' point in resource allocation, scope management, and team effort is crucial, overextending in times of calm can lead to burnout when the pressure mounts, just as the lush greenery turns into kindling for wildfires.
Stress and Urgency as Catalysts for Innovation
The book discusses how difficult times often lead to significant innovation and progress.
For instance, militaries and periods like the Great Depression have been sources of major advancements due to the urgent need for solutions during these times.
This is especially true in project management.
For example, during a crisis, project teams may develop new strategies or tools that become standard practice, the development of agile methodologies can be seen as a response to the inadequacies of traditional, plan-heavy project management in a fast-changing tech world.
Visibility of Progress and Bad News
The author points out that progress is less visible than bad news.
Also, good news often involves tragedies avoided or diseases not contracted, which are hard to contextualize or measure. In contrast, bad news is more apparent and immediate.
Progress in project management, like in life, is often a slow and steady journey, overshadowed by more immediate problems or failures.
Housel emphasizes the importance of recognizing small, incremental successes. Celebrating minor milestones or recognizing small efficiencies can help maintain team morale and motivation.
Value of Wasting Time
The book also highlights the importance of allowing time for creativity and not overemphasizing efficiency.
Time spent seemingly unproductively can often lead to significant breakthroughs, especially in creative fields.
In a field driven by deadlines and efficiency, the concept of 'wasting time' might seem counterintuitive. However, Housel suggests that downtime can foster creativity and lead to better solutions.
In project management, this could translate to allowing brainstorming sessions without a strict agenda or encouraging team members to take breaks to recharge.
Invisible Cost of Pursuing Goals
Housel notes that every worthwhile pursuit comes with a cost, which is not always visible or monetary. These costs can include stress, uncertainty, bureaucracy, and various other challenges.
Every project has its costs, not all of which are monetary or immediately apparent. Housel’s insight reminds project managers to be aware of hidden costs like team stress, decision fatigue, and the complexity of stakeholder management.
Acknowledging these invisible costs can lead to more sustainable project practices.
Challenges of Long-Term Thinking
The book underscores the difficulty of operationalizing long-term thinking, especially in fields like investing, where enduring short-term market fluctuations is necessary for long-term success.
Long-term thinking is crucial in project management but operationalizing it can be challenging. It might involve maintaining a vision for the project amidst short-term setbacks or adjusting strategies in response to new information while keeping the end goal in sight.
Permanent vs. Expiring Information
Housel differentiates between permanent information, which includes unchanging truths about human nature and markets, and expiring information, which is more focused on short-term happenings but less useful in the long run.
In project management, as in life, distinguishing between permanent and expiring information is key. Understanding fundamental principles like the importance of clear communication, team dynamics, and stakeholder engagement is more valuable than getting caught up in fleeting management fads.
Morgan Housel
is a notable figure in the world of finance and investment writing, highly regarded for his insightful and approachable takes on complex economic and psychological concepts.
Mr Morgan Housel is a partner at The Collaborative Fund, which is a venture capital firm known for its focus on supporting companies that intertwine social responsibility with profitability, his role at The Collaborative Fund involves a combination of investment strategies and deep dives into financial psychology.
Prior to his role at The Collaborative Fund, Housel gained significant recognition as a columnist and writer. He wrote for The Motley Fool and The Wall Street Journal, where he was known for his clear, engaging, and often thought-provoking articles on finance and investment.
Housel’s talent as a financial writer has been widely recognized. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers. Additionally, he is a recipient of the New York Times Sidney Award and has been a finalist for the Gerald Loeb Award, which is among the highest honours in business journalism.
Housel is the author of "The Psychology of Money," which has been a major success and is highly regarded for its insights into the behavioural aspects of personal finance. In this book, he explores how personal perspectives on money often have a more significant impact on financial success than technical financial knowledge.
Educational Contributions
Beyond his direct professional roles, Morgan Housel is known for his educational contributions. His writings often serve as educational resources for those interested in understanding the psychological aspects of finance and investment. He is praised for his ability to distil complex economic theories and behaviours into relatable and understandable concepts.
Housel is also a sought-after speaker and has appeared at numerous conferences and events. His presentations typically focus on the intersection of psychology, history, and economics, especially as they relate to investment strategies and financial decision-making.
He maintains an active presence online, particularly through his social media channels and personal blog. Here, Housel continues to share insights, thoughts, and commentary on current financial trends, personal finance, and the psychological aspects of money.
Overall, Morgan Housel is widely respected for his unique perspective on finance, combining elements of psychology, history, and economics to provide a deeper understanding of personal and institutional financial behaviour here is one of his best interviews (Diary of a CEO by Steven Bartlett):
