Learning to Create Value through our Work
A timeless rule of living, the Golden Rule, goes as follows: “Do unto others as you would have them do unto you.”
While
largely associated with Christian ethics, this rule finds itself
embedded into numerous other schools of thought, such as in Judaism and
Confucianism. The Golden Rule is also relatively salient through modern
society and sits prominently in commonplace societal ethics.
The principle goes by many names but boils down to treating others as we’d like to be treated ourselves.
Taken a step further, with the intent of being a good citizen of
society, it begins to involve doing good for others without expectation,
which is generosity at its core.
However, there are many forms of generosity, and varying levels of impact born from generous acts. Perhaps the most tangible component of generosity is the “value” born directly from an individual performing a generous action.
However, in terms of defining value, something is missing.
The
creation of value is what betters the lives of others, whether said
value is born from acts of generosity or not. Value refers (in my mind)
to acts worth doing and things worth building, and as such, can be used
as a compass-of-sorts for those aiming to better society as a whole.
Let us define value.
Here are the first 4 definitions of value provided by Merriam-Webster:
1] the monetary worth of something (market price)
2] a fair return or equivalent in goods, services, or money for something exchanged
3] Relative worth, utility, or importance
4] something (such as a principle or quality) intrinsically valuable or desirable
As such, acts/things/projects of value are those which can be categorized as:
1] worth some amount of money to possess/receive
2] provide utility and a degree of importance to the owner
3] are typically desired by human beings
2] provide utility and a degree of importance to the owner
3] are typically desired by human beings
If
your “thing” (your project, generous act, idea, etc) does not fulfill
one or more of these criteria, it likely sucks; that is to say, it isn’t
valuable.
For
example, if a startup’s MVP doesn’t cover 2 of these 3 criteria, the
team should probably pivot. Products are valuable they provide a benefit
that is worth parting with our hard-earned money to enjoy.
In
order to personify the Golden Rule and the subsequent desire to improve
the lives of others (as we would only want to do “good” things unto
others as to ourselves), we must internalize the idea of what is
“valuable” and then do good things that are worth doing.
How do I bring value to the world?
A
close friend of mine often states how she “doesn’t have any valuable
skills” yet remains adamant about “wanting to change the world”
(presumably for the better).
In
some cases, the previous description of valuable acts isn’t enough. We
can have deep-seated desires to make a positive impact, or build a
better future for ourselves and loved ones, but we often need to know
where to search for further information in order to have these dreams
materialize.
In
order to understand the question we’re posing, let’s review my friend’s
source of upset — she doesn’t understand where her existing skillset
can be applied to create one of the sources of value (remember, we all have skills).
Humans
strongly desire purpose and often take great joy out of making things
happen and doing/creating things that are bigger than themselves. Living
purposeful lives makes us happier, which is contagious and makes other
people happier, and so the happiness feedback loop continues.
Soon the question becomes which sources of information tell us where our effort is best directed and create the most value for ourselves and others?
There are two approaches you can take in solving this question:
Approach #1: Figure it out on your own
This
approach sucks largely due to the fact that if you’re anything like me,
after spending an hour trying to figure out what the world needs most
(because invariably we are not satisfied with “good”, but also beat
ourselves up over “optimal”), you’ll have somehow gone from Givewell.org, to a Reddit AMA, to cat GIFs on 9gag.#productivity.
There
are too many inputs, opinions and data sources to figure out what will
be the most impactful course of action if we go it alone.
Approach #2: Let the market do the research for you
“If I have seen further it is by standing on the shoulders of giants” — Isaac Newton
In
this case it is advantageous to let hundreds of other people do the
work for you. Approach #2 utilizes quantifiable metrics and data as well
as the opinions of groups and experts.
We are now on our quest to uncover the world’s most coveted valuable skills.
Our primary sources of information will break down as such:
1] Research
2] Job Market Validation
3] Social Validation
Source #1: Research
There
are organizations of people quite literally dedicated to figuring out
the most optimum ways in which we can impact the world. The two that
come to mind are GiveWell.org and 80,000 Hours.
If you have money to give:
Use GiveWell. Go look at their list of Top Charities. Recognize that the “Against Malaria Foundation” has been ranked #1 for the past 4 years in a row. Give them your money. Remember that the first definition of value was that of “the monetary worth of something”. Last time I checked, money was rather valuable.
Boom.
For less than $6 you can provide a malaria net that can save a life.
Give up Starbucks coffee for a month ($3/day over 30 days) and you can
provide 15 nets.
15 lives tangibly improved for the better.
Value created.
That was easy.
If you don’t currently have money to give:
Use 80,000 hours
as your starting point. Their mission is to help us “make the right
career choices” because then “you can help solve the world’s most
pressing problems, as well as have a more rewarding, interesting life”.
The premise is that while you may not presently have money to direct
towards valuable initiatives, you have 80,000 hours of a working career
to spend creating it.
That’s right up our alley.
Solving the world’s most pressing problems is important and also intrinsically valued. Value = created & acquired.
80,000 hours has written tremendous guides across a number of topics. I’d start with familiarizing yourself with this list to get a sense for what 80,000 hours perceives the world to need.
Then take this quiz to help determine which path to walk down.
Explore this document to get a better understanding of how 80,000hours defines the opportunities that await you.
And then go kick ass.
When
I read articles from 80,000hours and similar groups, it feels like
there is a swarm of researchers doing all of the heavy lifting to
condense all of the world’s issues down into specific paths I can walk
and ways I can help. It’s the closest we’ve gotten to a “genie in a
bottle” when it comes to knowing the first step to take in providing
value to others.
Source #2: Job Market Validation
“The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy.” — Milton Friedman
The
idea of a free market economy contains the belief that markets know
what they want from us individuals and will compensate us according.
Many individuals willing to do the same types of work desired by the
market will receive lesser wages than when another type of work has a
comparatively smaller group of individuals capable and willing to do it;
this is one application of supply & demand.
In
our case, we can think about this as massive corporations doing
research for us. These corporations sit down quarterly and annually to
make forecasts regarding what they intend to do over the next period of
time. One aspect of these forecasts includes which resources are
required to achieve their goals.
That’s where we come in.
The
job market is the literal manifestation of “putting your money where
your mouth is” and as such, explicitly tells us where to direct our
efforts in order to receive certain levels of compensation.
If
you are focused on the acquisition of wealth, the market has the
ability to tell you exactly which firms to apply to work for, and the
jobs they are most willing to pay to have done.
In
some cases this is easy to understand. Large banks have needs for
individuals who can pragmatically lend out capital to requesting
organizations, and profitably trade assets in the stock market. From a
skills perspective, the banks require those who understand most asset
classes, how a commercial bank is structured, risk premiums,
diversification, etc.
In
other cases, the resource need is still explicitly stated (on the basis
of job posting itself) but the required skills grow increasingly vague.
This is based on the idea of employers needing people with certain
dispositions and past experiences, so that they will assimilate well
into the organization and its norms, rather than specific skill sets
previously taught. A majority of new graduate hires fall under this
umbrella — higher education continues to serve as a signal for the ability to push through drudging tasks and tolerate a high volume of work.
A
point of note is that in a corporate setting, we often lose the
altruistic touch that comes from working with some of the companies
listed by 80,000hours. We are trading our time for money, which means
that some available opportunities are far from glamorous — tis’ why
we’re being “compensated”. (And don’t forget there’s always the “earn to give” option!)
All
things considered, if you’re looking to earn a wage, especially if you
have a larger value-creating goal in mind (such as buying a first home
for your family or making charitable donations), then you can’t beat the
job market for telling you where your efforts are best directed. It is
more of a self-directed search, rather than 80,000hours spoon-fed the
answer, but can prove just as fruitful from an economic perspective.
Source #3: Social Validation
“When given the choice, people will always spend their time around people they like.” — Gary Vaynerchuk
This is the most intuitive source of validation.
When you perform an act for others…
Do they smile?
Do they say thank you?
Do they tell their friends?
With
all of the social media platforms available today, we can now spread
ideas rapidly across the internet. We can connect to anyone else with a
smartphone.
Most importantly, anyone we can DM or text, we can provide value to.
We
gravitate towards people we like. We take this further and spend time
with people whose values we share. We buy from businesses whose “why”
resonates with us. And if we are successful, we spend our life learning
skills and taking action to make the lives of others even better.
This is the crux of social validation.
We no longer have to say thank you in person.
Every
Instagram favorite is a thank you. Every Facebook like is a thank you.
Every Pinterest pin is a thank you. Every retweet is a thank you.
When
we are thinking of how to provide value to the world, it is best to
listen to the people whom we are working to provide value for.
There are millions of confirming/disconfirming data points.
The reason certain Instagram models receive thousands of likes is simple — their followers really like what they see!
The
reason certain companies stand out over others is simple — their
mission/values/approach resonates with their customers more than those
of their competitors.
The reason cat gifs explode onto the top page of Reddit is simple — we love cats doing ridiculously stupid things.
Social media tools practically scream at us either “YES, THIS IDEA MEANS SOMETHING” or “nah, not so much. we don’t really care.”
In effect, we must:
This approach comes with a caveat. In most cases, the people only want high quality content and high quality individuals.
So
yes, the world does need more personal trainers and jacked fitness
models. But only if you are in better shape yourself and more
knowledgeable than those already out there getting it done.
Yes, the world does need more instagram models.
But only if you are sexier, have better lighting, and are racier than others.
But only if you are sexier, have better lighting, and are racier than others.
Yes, the world does need another mens grooming products business.
But only if your “why” is more resonant and if your products make the market happier than the majority of your competitors.
But only if your “why” is more resonant and if your products make the market happier than the majority of your competitors.
Use social media to learn about what the people want. Then give it to them in an even better way.
The
desire to create value in the world is a basic human need. We desire
purpose in our lives, and light up when we have a mission worth laboring
for.
Sometimes
we are unsure of how we can create this value in the world. Do we
pursue altruistic sources of value? Work hard and earn wages that
provide great luxuries for us and our loved ones? Build businesses
intended to resonate with our customers? The possibilities are numerous.
The
key is in using the tools already at our disposal, by letting the
collective efforts of research groups, labor markets and social networks
do the heavy lifting for us. The answers are out there, waiting for us
to act on them.
Let’s go make it happen.
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