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Skin in the game (post n.6)

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Why it’s important to take some risks in things you believe are crucial: skin in the game

Key assertions:

  • The way a person interacts with dots is preminent in an individual’s life;
  • Words without actions is just story telling;
  • The greatest thinkers of strategy and life’s existence clearly stated that only with actions and risk taking a person can be serious in what he does
  • Risk taking, have something important to lose when doing crucial things is also called “skin in the game”
  • The core values of collaboration and opposing Ego can produce virtuous cycles of skin in the game behaviours

The most important thing about a person is how his or her interacts with the dots (i.e. see definition of Universal Intelligence here).

Words are important but, actions weigh more than words.  

The actions we have undertaken in life define what we are and how we have interpreted existence. 

 

When we have the good fortune or the merit of carrying forward some ideas, first we express them in words, but without subsequent actions we are only telling stories. Story telling without facts is an illusion, often used to manipulate people.

Thought, words and action, this is instead the perfect cycle. 

Every big business starts with a little step, in the words of the great Lao Tzu, there’s the concept of starting to do, that develops in getting involved (skin in the game), if I believe in something, really, I have to take a risk on the thing. 

Mintzberg, argued that there are deliberate strategies and emerging strategies, the latter are those that had not been considered in the previous plans, Christensen stresses that there is no strategy if there is no commitment of resources with the consequent risk of losing them.  

We think we have a strategy but as long as we do not commit something inside, taking the risk of losing something (time, money, energy, health, friends, etc) we are only talking about intentions. Here the instinct of conservation (or even the Ego) comes into play and tends to avoid losses or criticism from others. 

Skin in the game is a concept that supports the growing awareness that defeats and certain failures are essential to build solid responses and lasting models of business, life, personal relationships. 

In this sense, adopt collaborative and non-competitive behavioral schemes, increase the chances to get involved (not only in trying this game), lower the defensive barriers of the Ego (I do not lose alone) and increase the awareness that to evolve we must get involved, otherwise you remain in an illusory world of pure intentions.  

Collaboration among the citizen of the planet to reach a new understanding, free of egos and mad supremacy races, speaking with actions rather than words, not aiming for perfection, but satisfaction and utilizing the amazing technology improvements as an awesome advantage to make the world a better place is the only way out of the crossroad humanity faces today.  

The silent majorities avoid the skin in the game concept (relaxed in their comfort zones), while the active and screaming minorities embrace it, and very often minorites rule over majorities. 

Why AI is important for skin in the game actions?

AI will change the way people analyse risks and will provide an objective, consistent framework of benefits and risks of a strategy emotions free. By delegating more risk analyses to AI, people will understand that the value of their limited time on earth is created by doing innovation, creation of things that could sometimes fail, but also could give a sense to existence.

Skin in the game is also a great book by Nassim Nicholas Taleb.

In a next post I will comment on some of the key insights presented by Taleb about skin in the game concept.

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About the author

Spiridione, my middle name, has strong Greek origins, and Greek philosophy is still current and pervasive, which is why I called the website spiridione.com.

During my adolescence my preferred books were those that covered philosophical questions. At 19, I moved to Milan and then graduated from Bocconi University with a degree in Business Administration at 24. – Read more

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