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
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