lifes exchanges nadim sadek inspired by george homans theory of social exchange

Life’s eXchanges

Nadim SadekInspired by George Homans’

Theory of Social Exchange

V > (C x W) ⇒X

V > (C x W) ⇒ XIf the Value I get out of something…

Is greater than…

The Cost of myinvestment in it

Moderated by my view of how the World should work

Implies…

I’ll have a positive eXchange

V < (C x W) ⇒X

Equally, if the Value I get out of something is less than its cost, it’s a poor eXchange and I probably won’t enter into it…

So, what are these eXchanges?

…they range from the trivialto the profound

Everything is an eXchange

Quid Pro Quo leads us to

evaluate what we give (Costs)

and what we take (Value) all the time

So, how do we make sense of Values and Costs?

We need a more forensic system…

…to help us

We evaluate eXchange with…

Seduction

Persuasionand our Minds

our Hearts

Seduction causes Want

Societal

decent, fair and just?

Social

have social approval?

Personal

appeal to me emotionally?

Persuasion gives Permission

Situational

easy for me to engage with them?

Functional

has a benefit to me/us?

So how come not everything is logical?

We build our own idiosyncratic World view…

ValuesPersonality Social norms

Expectations

Experience

Some eXchanges are simple, others complex!

Some eXchanges are simple, others complex!

Some eXchanges are simple, others complex!

Some eXchanges are simple, others complex!

Tax dodgetips the balance

Lots to love ...

But poor Corporate

behaviour hurts ...

⇒ negative eXchange And a 7% sales boost for Costa Coffee

Guilt-free fast fashion

⇒positive eXchange 20% sales increase post Bangladesh

I’m getting what I want, with almost

incredible ease

... And my moral discomfort is

allayed by clear policies

Improve my pulling power?

⇒ positive eXchangeNumber 1 male deodorant brand in 120

countries

Selling young men the dream of

effortless appeal to women!

Will it work? Do we believe it? For an edge in the mating game,

it’s worth a shot!

When we decideit’s not worth it

Any channel, any device, anytime –

cool!

So we suffer mediocre customer service ...

⇒ negative eXchange80% of people believe their fees are too

high

Unless they put prices up!

Football’s most Successful Manager

Strong leadership made Manchester United the most

successful & globally famous club

DD

Despite lack of personal likabilityand questionable influence over

referees

⇒ positive eXchangeResulting in world’s fastest selling non

fiction book

Fails to deliver on promises

The high expectations we

thought we had…

vs. the reality… Not the inspirational

leader and visionary people elected?

⇒ negative eXchangeLowest approval ratings since 2009

Talentless painter uses extreme world view as political philosophy

DD

Appeared to offer the middle-class an alternative to the political

establishment

⇒ positive eXchange (at his ‘election’)Resulting in the world’s greatest tragedy

A paranoid obsessive who nevertheless presented a utopian vision to a disaffected electorate

eXchange wisely!

Nadim Sadek – Partner & CEO