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Lessons From Space Shuttle Disasters For Avoiding IT Project Disasters John Helm Executive Timeslice, LLC www.ExecutiveTimeslice.com Jhelm Associates, LLC www.JHelmAssociates.com http://jhelmassociates.com/resources.html?item=spaceProj Copyright (c) 2013 by John Helm. This work is made available under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unsupported license. A previous version of this talk was presented at Agile2013, Nashville, TN, 5-9 August 2013

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Page 1: Lessons From Space Shuttle Disasters For Avoiding IT ... · Lessons From Space Shuttle Disasters For Avoiding IT Project Disasters John Helm Executive Timeslice, LLC ... SHUTTLE “Beginning

LessonsFromSpaceShuttleDisastersFor

AvoidingITProjectDisasters

JohnHelm

Executive Timeslice, LLCwww.ExecutiveTimeslice.com

Jhelm Associates, LLCwww.JHelmAssociates.com

http://jhelmassociates.com/resources.html?item=spaceProjCopyright(c)2013byJohnHelm.ThisworkismadeavailableunderthetermsoftheCreativeCommonsAttribution-ShareAlike 3.0Unsupportedlicense.

ApreviousversionofthistalkwaspresentedatAgile2013,Nashville,TN,5-9August2013

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Motivation

Atleast45yearsofITProjectHell

• Significantimprovementsstubbornlyelusive– SoftwareEngineering:AReportonaconferencesponsoredbytheNATOScienceCommittee.Garmisch,Germany.07-11Oct1968.PeterNaur andBrianRandell,Eds.

• RiskAdjustedPerformanceshows– Junkbondsoftenbetterinvestments– See:“JunkBondsVersusITProjects”*

1*http://jhelmassociates.com/resources.html?item=junkProj

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FourUserStories(3StoriesAndOneSmallEpic,really:^)

• AsanAgileProfessional,Iwantto1. ApplyfindingsfromDecisionSciencetomyworksoIcanbe

moreeffectiveo Note:PresentHolisticCriticalDecisionMakingFramework

2. Avoidadeathof10,000smellsbecausedyingthatwaysuckso Note:DoChallengercasestudyo Note:Setstageforthinkingtools

3. Learnaboutnewtoolstomakebetterexecutiondecisionsandhavebetterfact-basedconversationswithmystakeholderso Note:Introduceunpredictabilitymeasurementandthinkingtools

4. SeeAgilebedeployedmoresuccessfullyo Note:DoColumbiacasestudy

2

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WhyThinkAboutThinking?

3

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WhyThinkAboutThinking?

4

Themostdangerous

decisiontrapsaretheonesweareunawareof!

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ArtandScienceofDecisionMakingIndividualDecisionMaking

5

Cognitiverulesofthumbusedsubconsciously

Subconscioustendencytothinkinacertainway

Mentalprocessesthatmake

thingsworse

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ArtandScienceofDecisionMakingGroupDecisionMaking

6

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ArtandScienceofDecisionMakingOrganizationalModulation

7

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ArtandScienceofDecisionMakingHeuristics

8

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ArtandScienceofDecisionMakingCognitiveBiases

9

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ArtandScienceofDecisionMakingCognitiveBiases:ConfirmationBias

10

Photo:BillCunningham,CapricornControl

TheTRUTHIsOutThere…

NoomiRapace,SwedishActress

AllSwedesAreBlond…

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ArtandScienceofDecisionMakingCognitiveBiases:ConfirmationBias

• ConfirmationBiasisbuiltintous

• Quantitativestudiesarenoprotection

• Example:inferenceofacausalrelationshipfromcorrelateddata

Read:WhyMostPublishedResearchFindingsAreFalse

11

ByJohnIoannidishttp://www.plosmedicine.org/article/info:doi/10.1371/journal.pmed.0020124

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ArtandScienceofDecisionMakingCognitiveBiases:FramingandProspectTheory

12

Yoursurgeryhasan75%chancetosaveyourlife

HalfEmpty

HalfFull

Yoursurgeryhasa25%chanceitwillkillyou

FrameintermsofLOSS• Easiertomotivate• Choicesconstrainedtofamiliar

FrameintermsofOPPORTUNITY• Hardertomotivate• Moreflexibility&innovation

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ArtandScienceofDecisionMakingHyperbolicDiscounting

13

• Preferenceforsmallpleasurestodaythataredetrimentaltoourfuture

– Skipfullcoveragetestingtoday,2dayoutagenextyear?

– $50todayv.$100tomorrow?– $50todayv.$1006months?– $50todayv.$1001year?

• Ourbrainsarewiredtorespondtofutureuncertaintybydiscountingthefuture– Coke&friestoday,bypasssurgeryin10yrs?– 500,000bypasssurgeries/year

– Only10%undotheirunhealthylifestyle

• Codingwhilebehindscheduleforrelease…– Cutandpastetoday,spaghetticodenextyear?

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ArtandScienceofDecisionMakingHyperbolicDiscounting

14

• Discounting is the assessment of present value of a future gain– At 4% inflation, $100 in 10 years should be worth $67.55 today

• The 4% is called the discount rate; 0.6755 is the discount factor– According to the rational approach

Each period is discounted the same– Theresultisanexponentialdiscount

function

• ButpeopleDON’Tdiscounteachperiodthesame!– Thenearfutureisvaluedmuchmore

relativeto“far” future– Theresultingdiscountfunctionis

calledHYPERBOLIC(morecorrectly,it’squasi-hyperbolic)

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ArtandScienceofDecisionMakingHyperbolicDiscounting

15

• Discount function graphs are unhelpfully abstract• Whatmattersforpeopleisthe

anticipationofsatisfaction!• Moreinterestingisthetrade-off

betweenasmallrewardsoonvs.alargerrewardfartherinthefuture

Delaydependentpreferencereversal!

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MatthewG.Miller,RayJ.Dawson,KieranB.Miller,MalcolmBradley(2008).NewInsightsintoITProjectFailure&HowtoAvoidIt.Presentedat22ndIPMAWorldCongress- Rome(Italy)November9-11,2008,inStream6.AsofMay2013,selfpublishedathttp://www.mgmiller.co.uk/files/paper.pdf

The measured success rate (10% allowances) compared to how the project managers perceived their projects

16

ArtandScienceofDecisionMakingOverconfidence/AttributionBias

41.84%

79.32%

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ArtandScienceofDecisionMakingThinkingTraps

17

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ArtandScienceofDecisionMakingFunctionalFixedness

18

The Candle ProblemKarl Dunker, 1945Sam Glucksberg, 1962

The task: – Fix a lit candle to the

wall such that no wax hits the table using only

– Book of matches– A box of thumbtacks– A candle (of course)

How long to do?– Box empty– Tacks in box– No Pressure– Under Pressure

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ArtandScienceofDecisionMakingFunctionalFixedness

19

• Financialincentives– Improvedperformanceofsimpledoingtask– HURT performanceofcreativethinkingtask

– Moreincentive➜ worsecreativethinkingresults

MeanTimeToSolvePuzzle

TacksOutofBox(Easy) TacksInsideBox(Hard)

Low PerformancePressure 4.99min 7.41min

HighPerformance Pressure 3.67min 11.08 min

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ArtandScienceofDecisionMakingCognitiveDissonance

• Cognitivedissonance:– Unpleasantemotionsarisingfromsimultaneousmutuallyexclusivebeliefs

– Rationalizationsdevelopedtodefendbeliefwewishtohold• Aronsonmodel:RoleofEgoistoprotectidentity,whateverittakes

• Canmotivatemanyirrationaldecisionsandbehaviors– Denial– IllogicalRationalization(specialpleading)– EscalationofCommitment

20

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ArtandScienceofDecisionMakingCognitiveDissonance

21

GreatFloodScheduledDec21,1954

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ArtandScienceofDecisionMakingCognitiveDissonance

22

Believers,giveitallaway!YouwillbesavedbyUFO

GreatFloodScheduledDec21,1954

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ArtandScienceofDecisionMakingCognitiveDissonance

23

Believers:giveitallaway!YouwillbesavedbyaUFO

GreatFloodScheduledDec21,1954

4:45am“PressRelease”

“Thelittlegroup,sittingallnightlong,hadspreadsomuchlightthatGodhadsavedtheworldfromdestruction.”

Theinconsideratebuggersfailedtoshowup!!!

4:00amCataclysmDay

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ArtandScienceofDecisionMakingGroupDecisionMaking

24

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ArtandScienceofDecisionMakingGroupDecisionMaking

• OftenmanyheadsAREmuchbetterthanone– Groupspoolandtapdiversetalents– Surfaceandcorrectimperfectindividualdecisions

• “WhoWantsToBeaMillionaire?” audiencecorrect91%

• BUT,often“ProcessLosses”trashthemagic

25

DesiredCondition ProcessLoss

Diversityofskills andviews Everybodylikemindedor samebackground

Decentralization/Delegation Centrally directeddecisionmaking

Aggregation Can’tintegrateindividualcontributions

Safety/Independence Mightgetfiredforideas orspeakingup

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ArtandScienceofDecisionMakingGroupDecisionMaking

26

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ArtandScienceofDecisionMakingOrganizationalModulation

• Twodimensionsoforganizationexamination– StructuralPerspective(e.g.NormalAccidentTheory)– BehavioralPerspective(Many)

• DecisionmakingissuescanarisefromBOTH– Structuralfeatures

• Clumsyorganizationalrelationships• Toomanytimezones….

– Behavioraltendencies• Corporateidentity• Culture• Values

27

GroupdecisionsDONOT occurinavacuum

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ArtandScienceofDecisionMakingOrganizationalModulation

• Structuralpropertiesoforganizationsinclude– ComponentCoupling(LooseorTight)– InteractiveComplexity(LinearorNon-linear)

• Organizationalcontextshapesbehavior– Identity:whoweare

• Constrainsorbiasessolutionsets

– ValuesandCulture:unspoken“rules”everyonemustknow• Constrainsanddirectsbehavior

28

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ArtandScienceofDecisionMakingOrganizationalModulation

29

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ArtandScienceofDecisionMakingDecisionsandProjects

30

ProjectManagementApproachResourceChoicesCommunicationProtocolsCompliance/Governance

ToolChoicesTechnologySelectionsArchitectureDeliveryPracticesCut&PasteorRefactor?

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FourUserStories

• AsanAgileProfessional,Iwantto

2. Avoidadeathof10,000smellsbecausedyingthatwaysucks3. Learnnewtoolstomakebetterexecutiondecisionsandhave

betterfact-basedconversationswithmystakeholders4. SeeAgilebedeployedmoresuccessfully

31

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DecisionsAndTheChallengerDisaster27YearsAgo

32

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DecisionsAndTheChallengerDisasterThe"L-1Meeting"DecisionToLaunch

33

“Ifthedecisionmakershadknownallofthefacts,itishighlyunlikelythattheywouldhavedecidedtolaunch51-LonJan28,1986.”(Pg.82,RogersCommissionReport)

Strongevidencesuggestsmattersnotthissimple

TheRogersCommission:Communicationfailuresenabledflawedgroupdecision:

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DecisionsAndTheChallengerDisasterProcessLossesintheL-1Meeting?

GroupthinkUnlikely

34

DesiredCondition ProcessLoss? Why?

Diversity ofviews No Variousinternal andexternalexperts

Decentralization No NASA staffandmany independentcontractors

Aggregation No Vigorousandopendebateofdifferingviews

Safety/Independence No Managersdidnot“pullrank”Decisionwas“rule-based”

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DecisionsAndTheChallengerDisasterDidStress/FunctionalFixednessplayarole?

35

Discussionfocusedontwokeylaunches,circledinred

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DecisionsAndTheChallengerDisasterDidStress/FunctionalFixednessplayarole?

36

• Dataofproblemsonly• Discussionfocusedon

– SRM-15– SRM-22

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DecisionsAndTheChallengerDisasterDidStress/FunctionalFixednessplayarole?

• Dataall24Launches– Damagelaunchesinred

37

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DecisionsAndTheChallengerDisasterNASA:StructuralConsiderations

• StructuralObservations– Complexmatrixorg(NASA-contractorecosystem)

• Geographicallydispersed

– Establishedhierarchicalbureaucracy

• Littleevidencethatstructurewasissue– Longandimpressivehistoryofsuperbexecution– Effectivemanagementofcomplexecosystemandsupplychain

– Impressivesafetyrecordfor“twomillionparts– allbuiltbythelowestbidderonagovernmentcontract”

38

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DecisionsAndTheChallengerDisasterNASA'sOrganizationalIdentity,ValuesandCulture

39

Theycalledita

SHUTTLE

“Beginningwiththenextflight,theColumbiaanditssistershipswillbefullyoperational”– Reagan,after4th flight

“Itwillrevolutionizetransportationintonearspacebyroutinizingit”

– Nixon,1972

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DecisionsAndTheChallengerDisasterNASA'sOrganizationalIdentity,ValuesandCulture

• PoliticsandFunding– WrongFrame➡ Structureandcultureofroutineoperations

• BehavioralObservations– Rigidrulesandprotocols(nolevelhopping)

• Poorinformationflow

– Obsessionwithscheduleanddeadlines– Starkdistinctionbetweenengineersandmanagers

• “Takeoffyourengineer'shatandputonyourmanager'shat”

– Penchantforextensivesupportingdata– Insufficientacknowledgementoftheunknowns

40

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CriticalThinkingandDecisionMakingNormalizationofDeviance

• DianeVaughnstudiedNASA’sorganizationalcontextandhistory– ObservedO-Ringproblemswerenotnew

• Issuescroppedupovertheyears• Historyandcontextmust haveinfluencedthelaunchdecision

• Vaughnarguedthelaunchdecisionisbestunderstoodinhistoricalcontext– O-ringerosionunexpected– Happenedonce,nodisaster– O-ringerosionbegantooccurregularly– Rationalizedredundancywassufficient– Graduallytheunexpectedbecame,expected,thenaccepted

41

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CriticalThinkingandDecisionMakingNormalizationofDeviance

Vaughnproposedaslowholisticprocessatwork1. Smalldeviationsfromstandardsornormsarerationalized,

oftenunder(perceived)coercivepressure2. Nothingbadhappens,supportingthecorrectnessofthe

rationalization3. Withrepetitionsthe“deviation”eventuallybecomesthe

newnorm

NORMALIZATIONOFDEVIANCE

Notincompetence,justhumanity!SeeAlso:PracticalDrift; read“FriendlyFire”,Snook

42

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FourUserStories

• AsanAgileProfessional,Iwantto

3. Learnnewtoolstomakebetterexecutiondecisionsandhavebetterfact-basedconversationswithmystakeholders

4. SeeAgilebedeployedmoresuccessfully

43

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QuantitativeUnpredictabilityManagement

AmIdoomedifIcan’tpronounceCynefin?

44

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QuantitativeUnpredictabilityManagement

45

Deterministic

Nondeterministic

SystemtobeManaged

ApproximateModel

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QuantitativeUnpredictabilityManagement

• NormalizationofDeviance➡ 10,000smells– Everyriskierbehavior– Increasinglypoorjudgment– Escalatingvulnerabilityto“BlackSwans”

• LikeO-ringleaks,canseethemdeveloping

• UseEstimationErrorDistributions• Lookforlongtails

46

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QuantitativeUnpredictabilityManagement

• Youcan’tmanagewhatyoudon’tmeasure• Track

47

RelativeEstimationError= Est − ActualEst

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DecisionsandProjectsMeasureUnpredictability

48

ALongTail• Gaussiandatashouldhave1

or2cases(0.35%)• Actuallyhave40cases(8.6%)

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DecisionsandProjectsMeasureUnpredictability

Uses:SensemakingwithCynefin

49

Youarehere!ALongTail

• Gaussiandatashouldhave1or2cases(0.35%)

• Actuallyhave40cases(8.6%)

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DecisionsandProjectsMeasureUnpredictability

Longtailsdeprivesystemsofconsistent predictabilityWaterfallrequiresLOTSpredictability

50

-400 -300 -200 -100 0 100 0

20

40

60

80

100

120

Relative Estimation Error [%]

Estimation Accuracy “Distribution”

Not es: 465 User Stories; Single Scrum Team; 39 sprin ts in 2 yrs

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DecisionsandProjectsMeasureUnpredictability

Uses1. SensemakingwithCynefin2. Conversationswithbusiness3. Seeing

– Deteriorationincodebase/system– Effectofchanges

51

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DecisionsandProjectsSourceofMuri andMura?

• BlackSwanunderestimation– CreatesMuri andMura– Underminestrustbuilding

• Escalatingstressandfatiguedefinenegativefeedback

52

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DecisionsandProjectsProtectiveToolsAndTechniques• BiasGuards

– Becomeawareandunderstandbiasesexist

• Trytolearnyours– SWOT-styledecisionanalysis– Managestress

• GroupEffectiveness– Understandandapplyframing

• Leadersmustframeespeciallycarefully• Usemultipleframes

– Monitorgroupdynamicsforprocesslosses• Watchforgroupthink• Stimulateconstructivedebate(scenarios/pre-postmortems)

– Includedecisionreviewsinretrospectives

– Fixmembershipproblemspromptly!

53

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DecisionsandProjectsProtectiveToolsAndTechniques

• NormalizationofDeviance

UseTHEFORCE

• CognitiveDissonance– EngageaTruthsayer– Focuson(attachidentityto)process,notoutcome– Keepwrittenrecords– Usehonestmetrics

• UnderstandtheCultureCode– Seetheorganizationthatis– Ifactions≠words,ignorewords

54

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DecisionsandProjectsDecisionAccounting/ChecksandBalances

• Setupchecksandbalances– Don'tonlyselfassess

• Inviteanoutsideauditor

• Useseparategroupsto– Approveprojects– Monitororcancelprojects

55

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FourUserStories

• AsanAgileProfessional,Iwantto

4. SeeAgilebedeployedmoresuccessfully

56

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Take-Aways andOpportunitiesTheColumbiaDisaster

57

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• Observations– NASAnever interviewedVaughn– Evidenceof

• Confirmationbias• Processlossesindebrismeetings

• TheColumbiadisasterinvestigationboard:TheFoamDidIt,ButTheOrganizationLetItHappen

• NASA– FailedtolearnfromtheChallengerexperience– Failedtomeaningfullychangeitsbehavior

58

Take-Aways andOpportunitiesTheColumbiaDisaster

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Take-Aways andOpportunitiesBewaretheHypecycle!

• ProjectManagementremainsunsatisfactory– Stubbornlysosince1968NATOConference

• Agileishelping!

• Havewe“CrossedtheChasm”?

• Withincreasingadoptioncomesincreasingrisk

• Failedadoptiondamages“thebrand”

• Embracecriticalthinkingandcriticaldecisioning

59

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Take-Aways andOpportunitiesLet'sUseGandhi'sFormula

“Bethechangeyouwishtoseeintheworld”Gandhi

Letthatchangebeenrichedbycriticaldecisionmaking

60

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Let'sGetStarted

61

• WhySmartPeopleMakeBigMoneyMistakesandHowtoCorrectThem,Belsky andGilovich

• PredictablyIrrational,DanAriely

• FriendlyFire:TheAccidentalShootdownofU.S.BlackHawksoverNorthernIraq,ScottSnook

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Let'sGetStarted• MistakesWereMade(ButNotbyMe),Tavris andAronson

• SnakesinSuits:WhenPsychopathsGotoWork,Babiak andHare

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• TheWisdomofPsychopaths:WhatSaints,Spies,andSerialKillersCanTeachUsAboutSuccess,Dutton

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Namaste

QuestionsandDiscussion

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AppendixandExtrasThiokolRecordofO-RingErosionandBlowby

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AppendixandExtrasThiokolRecordofO-RingErosionandBlowby

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AppendixandExtrasBoxplotRangesOverTheGaussianDistribution

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ENDOFDECK

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