Leeds Business Insights

Both Silicon Valley and Signature Bank are two of the top three largest bank failures in American history, both in terms of dollars, but also on an inflation-adjusted basis. And they happen just a few days apart, just over 2 weeks ago now. To get more insight on this incredible financial event, we sat down with Shaun Davies. He is an associate professor and research director of the Burridge Center for Finance at the Leeds School of Business. We grabbed some time with Shaun during this hectic week to get the low down on what the SVB collapse means, the parallels between the 2007/2008 financial crisis and today, and what to look out for moving forward. Leeds Business Insights Podcast is a production of Leeds School of Business and is produced by University FM. EPISODE QUOTES: Bank fraud still exists [00:09:01] Typically, when we think about bank runs, we think back to black-and-white movies, like "It's a Wonderful Life," and we think that bank failures, they’re a thing of America's past. Well, the Silicon Valley Bank failure showed us that bank runs still exist. They can still happen. The unexpected failure of Silicon Valley and Signature Bank [00:03:44] Silicon Valley and Signature Bank are two of the top three largest bank failures in American history, both in terms of dollars but also on an inflation-adjusted basis. Even when we take bank failures 25 to 30 years ago, these are still larger, even on an inflation-adjusted basis. And it's hard to believe we saw that out of nowhere. And in the span of a few days. Moments of crisis should be expected [00:24:38] There will never be a time in which all risks are hedged, and everything is safe. Moments of crisis, massive stock market volatility, moments of your portfolio going down in value. Those should be expected. They're not fun, but they should be expected.

20+ years ago, if you were featured in an editorial story in the New York Times could keep customers coming to you for years. But in 2023, we are all too aware that the fight for you attention is happening at all times, and from all angles and devices. So how can PR agencies keep up and keep you focused? Alexis Walsko is a Leeds alumna and founder of Minneapolis-based agency Lola Red, starting the company when she was just 22 years old. This episode dives into all things PR and strategy, touching on the history of traditional PR and the rise of the influencer, what to look for in an influencer and how to evaluate their effectiveness in your campaigns, micro vs macro influencers, and Alexis’ work in the early days of Love Your Melon hat and beanies. Leeds Business Insights Podcast is a production of the Leeds School of Business and is produced by University FM. EPISODE QUOTES: Great brands make great partnerships with people [08:29] Great brands do great partnerships with people; that partnership is not about just a monetary exchange. It's actually about a deeper brand relationship. Consider the influence you leave on others [25:56] Always consider influence because we are all always being influenced. And so pay attention to that as a consumer, but also from a worldly perspective. And in the vein of what I got from my amazing time at Leads and at Boulder, was also to consider the influence that you have on others. How companies are using information and data? [04:19] Information and data are so accessible today, and companies are using any means possible to get it to the appropriate parties.

Spring is almost here, and so is season 3 of Leeds Business Insights! Join host Amanda Kramer Wednesday, March 15th for another series of outstanding guests and topnotch analysis to help you stand out from the herd. We’re diving into the world of influencer marketing, balancing startup life with personal wellness and a difficult diagnosis, and digging into the science behind happiness and purpose, just to name a few topics. We know you're not going to want to miss this batch of episodes, so make sure to subscribe wherever you listen to podcasts. We’ll catch you right here on March 15th with episode one, and every other Wednesday after that. We can't wait for you to hear them!

What's meaningful to one person may not be meaningful to the next. But one this is for sure, we as humans search for meaning through consumption, whatever that “meaning” may be. Lawrence Williams is an associate professor of Marketing at the Leeds School of Business, University of Colorado Boulder. In his research, Dr. Williams examines the subtle influence of environmental cues on consumer behavior, the impact of psychological distance on consumers’ emotional judgments, and the mechanisms of self-regulation and self-control. In this episode, Lawrence discusses the importance of self-expression, intrinsic and extrinsic rewards of consumption, and where purpose-driven branding & products fall into the mix. EPISODE QUOTES: On using behavior to guide a strategy [00:23:32] It's very easy, especially in modern world where we are incentivized to express our emotions and our opinions almost daily, nonstop, through social media and all of that stuff. That's amplified. It's really easy to talk about what you value. But when it's less about signaling and more about active choices, you have to look at people's behavior. Intrinsic vs. extrinsic [00:02:46] When we talk about intrinsic versus extrinsic, intrinsic is something that's coming from the inside, and extrinsic is something that's out there in the world. We tend to talk about those in terms of our motivation. What's driving us to pursue a certain thing, behave in a certain way, go a certain place, buy a certain thing? And sometimes, those motivations are coming from within us. What are people willing to give up in order to get meaning? [00:09:46] When it came to meaningful experiences when it came to meaningful pursuits, people were willing to pay less was very interesting, but it gave us some insight into what they're thinking about. And, for us, when people are thinking about pursuing meaning, you have an array of free things that come to mind.

Can your business do something good for the world… and your bottom line? We think so. Join us this week as we speak with Jennifer Forman, who coaches businesses and individuals on social responsibility and sustainability practices through the Leeds School of Business Certificate of Corporate Social Responsibility program. In this episode, Jennifer outlines what she calls “Big Sustainability” and shares advice for connecting your company's culture and values with causes where they can make a positive difference. EPISODE QUOTES: On an holistic approach to sustainability… [00:03:03] “Environmental sustainability is really limited to the things we have to consider to keep our planet healthy. But there's more to business than just keeping the planet healthy… when we think about Big Sustainability, we're looking at diversity, equity, and inclusion. Who's at the table? Whose voices are you hearing? Have we got representation from the markets that we serve? That's really important in terms of growth, and being able to [speak] to your consumers and to the employees that you're going to need for long-term sustainable growth.” On incorporating Corporate Social Responsibility into your business… [00:04:42] “This movement has really seen explosive growth in recent years. And that's, in part, due to investor concerns around negative impacts of climate change. But it's also because younger generations are showing a really high preference toward working at, or buying from, purpose driven companies.” [00:05:19] “CSR and ESG concerns can be woven in and operationalized so that the way companies are making revenue looks at the least amount of negative impacts to all of their stakeholders and really using their unique area of expertise to leverage that for social good. So not only how can they make money – but how can this be done in a way that potentially benefits people everywhere that their business touches, from concept to creation, to sales, and eventually down the line.” On the tangible value of CSR… [00:15:29] “The Russell 1000 companies saw, on average, a 218% increase in share price over the last four years when businesses named at least one charitable recipient, had a diversity and opportunity policy, expressed board and gender diversity, and utilized a local sourcing policy. According to BCG Brighthouse, brands with a high sense of purpose experienced a valuation increase of 175% over the past 12 years compared to the median growth rate of 86%. So you see how these stats are adding up to show that businesses invested in this are doing really well.”

Professor Erick Mueller is the Executive Director of the Deming Center for Entrepreneurship and an adjunct professor of strategy, entrepreneurship, and operations at the Leeds School of Business. A lifelong entrepreneur, Erick is dedicated to helping new entrepreneurs, and business owners start and grow their businesses. In this episode, Erick talks about how to apply the lessons he’s learned to the current moment and business landscape. EPISODE QUOTES: You don’t have to do it alone [00:08:42] I recommend to everybody is, don't be afraid to ask for help and, and, and, leverage those who really care to help you with your venture and your idea. Learn from others’ mistakes [00:09:53] The number one reason that businesses fail: they haven't really created enough value and delivered on what customers are really excited to deliver on. So the solution to that is you just have to talk to more and more people, learn what their desires are, what their excitements are and adapt and incorporate that feedback into your product. What successful entrepreneurs have [00:15:05] They're excited. They're passionate, and it's almost like oxygen to them to really run and operate this business. From that place, they will figure out solutions to problems that arise, and that passion and excitement will get them through the challenging times.

Buying and selling homes has never been so easy. But that doesn’t mean real estate agents are a thing of the past! Join us this week as we speak with Mike DelPrete, an internationally recognized expert and thought-leader in real estate tech. Mike has traveled the world forging relationships with leading property portals and real estate tech startups, gathering first-hand knowledge and insights on tech trends and themes. This episode, he shares some of the most exciting innovations in real estate – including iBuying – as well as the unintended ways these new models are impacting property markets. EPISODE QUOTES: On the impact of innovative real estate strategies… [00:04:39] “If you wanna sell your home, you consider an iBuyer. If you wanna buy a home, you consider a power buyer. And these are companies that are trying to empower home buyers with more superpowers to be able to get the home they want. And they do so through two methods. One is cash offers, and the second is buy before you sell.” [00:01:56] “Open Door, the largest iBuyer, has around 1.3% market share, which sounds, you know, that's a small number. But the U.S. residential real estate market is huge. So 1% market share is pretty significant. That's tens of thousands of houses every year. So it's worth paying attention to.” On the unintended consequences of these new models… [00:16:36] “iBuyers are selling a certain percentage of their homes directly to institutional investors… They're sucking up houses from the market. They're buying them from people who want to sell. And then they're putting some of those back on the market, but they're also selling some of them directly to institutional investors, which are Wall Street companies who are renting those out. So that's a decision that's been taken away from homeowners and communities.” [00:18:09] “They can decide who they sell it to. They can keep it off the market, make it exclusive. They could just send an email to everybody on their mailing list and say, ‘Hey, we’ve noticed you've toured an open door home in the past. Here's a house for you.’” On the value of real estate agents (still)… [00:21:46] “Real estate is probably the largest transaction that somebody will undertake in their lifetime. So you have this idea of loss aversion, right? Which is that as human beings, we are wired to be conservative.” [00:22:43] “What's the potential downside of making a mistake buying or selling a home? It's tens of thousands of dollars monetarily, but not just that… The potential downside of choosing to purchase the wrong home or selling your existing home, you know, the wrong way is huge. So when the downside is really big, that's when people want expert advisors. They want insurance for someone to hold their hand through the process.”

If you’ve ever bought tickets to a concert or sporting event, you know what it’s like to watch prices rise and fall – and to sweat over finding the perfect seats for your budget and enjoyment. Ovunc Yilmaz is an expert in the dynamic market of live events ticketing, and joins us to offer his insights into a $20 billion industry. Today on the podcast, he talks about the factors that influence ticket prices – from weather to proximity to a video screen – and the complicated ripple effects of secondary ticket markets. Ovunc also shares his research into innovative pricing strategies, and real-world advice for businesses in the live event industry. Ovunc Yilmaz is an Assistant Professor of Operations at the Leeds School of Business at the University of Colorado Boulder. He specializes in revenue management and pricing – particularly in the airline, hotel and event industries. EPISODE QUOTES: On the business of sports ticket sales… [00:00:33] “In 2019, the North American professional sports market passed $70 billion in annual revenues and the ticket revenues… were almost $20 billion. They're one of the major revenue sources of this industry. Others being media rights, sponsorship and merchandising.” On the unique challenge of matching supply to demand… [00:01:11] “The pricing problem is a very complex one, because teams are selling tickets for highly differentiated seats. For football, you can think of a 50-yard line seat versus an End Zone seat. For basketball, you can think of right behind a team bench or those nosebleed seats that you can barely follow the game. Teams are also selling tickets for different types of games based on different opponents’ strengths, maybe some rivalries, pre-season, regular season, post season. And teams are also selling tickets to fans with different tastes. You can think of a die hard fan who has gone to every game… since they were five years old or someone who is in town for just a day… [00:02:28] And of course, with the digitization of ticketing, sports organizations, leagues, teams – they try to use this data to make more informed, better, pricing decisions and improve their gate revenue.” On secondary markets in ticket sales… [00:07:33] “Since the ticket resale is allowed, there exist the secondary markets of these tickets after they've been purchased from the primary market. These transactions in this market, the secondary market, may take place between just two friends like me and you, or in person near the venue, those kind old school scalpers, or through online secondary markets… [00:07:56] And although an average sports fan may think that most of these transactions in this market are just between two fans who happen to own tickets, the secondary market itself is actually now a $15 billion industry dominated by brokers.”

Richard Wobbekind and Brian Lewandowski offer glimpses of what to expect in Colorado’s economy heading into 2023. Today’s episode takes listeners on a deep dive into employment rates, inflation, the pandemic’s lasting economic impacts, and more. Richard Wobbekind is the Associate Dean of Finance and the Business Research Division at Leeds. Brian Lewandowski is Executive Director of the Business Research Division. Together, they formulate the University of Colorado’s Business Economic Outlook report. EPISODE QUOTES: On what we’re seeing in the current economy… [00:05:34] Brian: “Nationally and locally, we've seen the highest rate of inflation that we've seen in the last 40 years in this country. So, it's concerning on many fronts. But I think one of the most concerning underlying components of the inflation rate is that it's very broad-based. It's not really driven by just one or two components within our economy.” On what to expect in 2023… [00:14:16] Brian: “If we take a look at … the JOLTS number, the job openings number, that's signaling that there's still extremely strong demand for workers. So, it appears that the employment market isn't as much at risk as it has been in the past when we've been in situations like this, where, where we're perhaps on the cusp of a recession. We usually see slowing job growth, lower demand for workers at this point.” [00:21:01] Richard: “We're anticipating a slower environment, but not particularly a negative environment—a GDP recession at the national level that just slows growth down for the year overall, and then a bounce back a little bit further on out. And again, a lot of this is being triggered by the Fed's attempts to control inflation with these higher interest rates. And we're not suggesting they're not needed. You really don't want inflation to become permanent in the system. And you don't want expectations to get entrenched around inflation. So, the Fed policy has a lot of logic to it, but it does ultimately create some pain.” Advice for businesses entering a period of slower growth… [00:26:42] Richard: “When you're in a very high-growth environment… you're more concerned with making sure the order gets out the door or it gets fulfilled. And you really don't want to miss the opportunity to make the sale. But when you get in a slower growth environment, you start to think about: Are we doing this in the best way? Do I have the best worker to do this? And you think more about, do I have the right skill sets with my employees? It's an opportunity to assess, to take a breath and to assess.”

Jaclyn Freeman Hester is a venture capitalist and partner at the Foundry Group. In this episode, Jaclyn talks about how she recruits and funds new talent, her “give first” philosophy, and what entrepreneurs should consider when it comes to VC funding. EPISODE QUOTES: On focusing on the journey (not the outcome)... [00:10:09] I think that’s what really helps folks stand out, especially when you're younger, taking a lot of risk and being way more focused on the journey and the curiosity and the learning and who you meet and kind of collecting people along the way versus the lockstep career path. On taking risks… [00:16:57] There's a ton of learning that can be done by joining companies and joining funds, especially early. So, I think it's just important for folks to realize that there is no one way to do this. On being people focused… [00:23:39] I think values alignment, both for hiring and for investing is huge. Because it speaks to, I don't know every single decision that's gonna come up with this company, but if I understand your values and what motivates you and how you think about things and what your philosophy is on lots of different aspects of building a business, then I can have better trust and insight into when things come up, you know, that it's gonna play out in a way that I would like… And so I think having hard conversations around, big questions that you have, and being direct and trying to understand someone else's values and motivations is really important.

Michael Huseby is a CU alumnus who has been managing the challenges of digital transformation in a number of industries, including retail communications, and now education as Chairman and CEO of Barnes & Noble Education. In this episode, Michael discusses how he’s managed to lead Barnes and Noble through the pandemic and offers insight on how to foster a strong brand and culture in an increasingly digital world. EPISODE QUOTES: On consumer trends (00:04:03) The generation of students that we serve is digital now. Most of them were born with a cell phone or an iPad in their hands. So we know that that's how they're used to interacting with information and how they're used to learning. Students are used to learning in a mobile way where there's ease of use and lower costs. You don't have a typical supply chain where you have to walk into a brick-and-mortar store to buy something. That all points to digital. So we have a digitally native customer base. The supply chain is electric and electronic and not physical. On driving change (00:10:57) What's difficult is when you have a culture that is strong and you're trying to change it to more of a performance-based culture, so to speak, that's really geared towards collaboration with customers in the context of driving change. Because in a service culture, you're generally trying to respond to requests and a model that's been proven for a very long time in a dynamic, digital, uncertain, ambiguous environment, you have to also lead change, which means that you have to build services and products that customers may or may not want, or may not want to change to themselves. On work/life balance (00:18:22) In a digital environment, you can really set yourself up for some stress. The barriers are kind of broken down that you usually have in a physical office or physical classroom. So we actually have rules in place where we try and get people to not leave people texts at three o'clock in the morning, even if you're up because people are so used to responding now to screens and notification sounds and that type of thing, you could be on edge all the time. So, respect boundaries.

Get ready, the second season of Leeds Business Insights is almost here! Beginning on September 7, 2022, host Amanda Kramer will bring you insights from industry leaders, including actionable takeaways (what we call L-B-Ideas) that you can use in your professional life.

Over the past two years, especially, we’ve heard the word “diversity” a lot in the workplace context – but what are people actually talking about when they say that’s important to them? This episode’s guest explains why it’s important for leaders to figure that out – and shares lessons about how meaningful diversity, equity, and inclusion work lifts the whole team. Professor Sabrina Volpone is a recognized expert in workplace diversity. At the Leeds School of Business, she is the doctoral program coordinator for the Organizational Leadership and Information Analytics division and also runs the Diversity and Identity (DI&ID) Management Research Lab. In this episode, she talks about different ways we can think about diversity in the workplace, and how digging into this work yields unexpected results. EPISODE QUOTES: On the benefits of gender-diverse teams [00:04:26] When you have more voices working on the team and working together and presenting ideas, you not only get that positive impact to get the work done with more ideas, more problem-solving more, individual types of decision-making going into the problem-solving. But what we also found happens is that individuals on the teams, when they're more gender diverse, tend to engage in boundary-spanning behaviors more. That means spanning the boundaries of the team. Going outside the team, and utilizing those networks, which will be theoretically more diverse because you have more women, more men. Those networks are going to look different. And so, you have even more resources outside the team that these individuals on the team can span, and ring back more information and resources for the team to do their job effectively. And that enhances the team performance even more. On expected inclusion benefits of the remote workplace [00:22:34] We are seeing reports that marginalized individuals have benefited in a number of ways from that networking environment because there's less microaggressions that they're experiencing through their daily interactions with colleagues. On the importance of DEI work [00:20:49] It's not going away. It's time to figure it out, and it's only going to benefit you if you know you're doing it right. And there's a lot of opportunities to benefit organizations.

The natural and organic products market is exploding, with more businesses and industries looking to create impact in this space. The epicenter for the movement: Boulder, Colorado, home to many of the players in this space as well as thought leadership about what the industry will look like going forward. On this episode, we’re joined by Leeds marketing instructor Heather Kennedy. Heather has over 15 years of experience in brand strategy, product development and management. She’s worked for Kraft Foods, Whole Foods Market, and, more recently, the Fresh Ideas Group in Boulder, which specializes in natural and organic products. Heather offers insight on how far the natural foods movement has come, and forecasts where it’s headed in the future. EPISODE QUOTES: On the difference between natural and organic [00:01:54] If you see organic, you know that that product has not been grown with certain pesticides or certain fertilizers, et cetera. Natural, on the other hand, is about how a product is processed in general. And, it really does not have a specific definition from the FDA or the USDA. Nobody takes a look to see if a product is natural. You don't have to be certified to say that your product is natural. And so, it really becomes up to the consumer to decide: when they see natural on a label, what does that mean? On how the industry is shaped by world events [00:08:49] 80% of the world's sunflower oil is coming from Ukraine and Russia. That may not seem like a big deal, except that it's an ingredient that's in a lot of national organic products, and very specific to the natural and organic industry. So the industry is going to have to find a way to source differently, whether that's finding local sources or growers and producers in the United States or nearby. That's going to be something that the industry needs to focus on moving forward. In addition, Russia and Ukraine supply more than a quarter of the world's wheat, and we're already seeing that impact in pricing, and in shortages coming from that. On how Leeds is preparing students for success in the industry [00:14:57] These businesses are based in purpose and passion. The downside is that a lot of these folks don't have the business skills or training that really would make bringing that product to market a lot easier and more efficient. It's a tough, tough industry, with a lot of competitors. So, we see an opportunity to train our students who have that passionate interest in the natural organic space or in doing something and training them in consumer packaged goods and business acumen so that they can go work in some of these companies on the other side of this. On marketing [00:18:57] I use the example of a passionate founder who wants to make hummus, and his friends really love the hummus that he's made. And so he wants to take it to market. But if you have to look a little wider, now, look at the marketplace, what's in the marketplace right now. There are a lot of hummuses out there. Probably the last thing the world needs is a hummus or a salsa. We’ve got a lot of those right now. So, what's going to make your product better and different?

The experience of watching movies has changed a lot – from rewinding VHSs to getting DVDs in the mail to streaming. How do businesses in the industry adapt, and even get ahead of the trends? Jim Packer is President of Worldwide Television and Digital Distribution at Lionsgate. As president of worldwide television distribution, he directs Lionsgate strategies for capitalizing on evolving distribution and licensing opportunities in a fast-changing global market. He talked to Leeds Business Insights how streaming has changed what movies and shows we watch, the lessons he’s learned from navigating those changes – and how they can be applied to other industries, as well. EPISODE QUOTES: On the future of movie theaters [00:02:04] I don't believe people will stop going back to the movies. I think people will be selective and they'll change their habits as they go along. I went to my first movie with my family to go see the Spider-Man movie. I had not been to a movie theater in two years. So I will say that I loved it. That experience is great, that companionship, and that exciting moment when that movie starts and you start that journey is why I got into the business and why I think people will go back to the movie theaters when they're comfortable. On staying ahead of changes in consumer behavior [00:09:18] If you were to say, “Would you rather be too early or would you rather be late?” I'd rather be early. And I have been early in a number of the ventures that I pushed through the company and ways that we license….Sometimes you are too early, but if you wait and you're late, you can sometimes miss a trend, and then it's a little bit harder to get deals done or product out in the marketplace. On implementing lessons from recent pandemic problems [00:26:17] The supply chain problems have got tentacles that go in a thousand different ways. We are just facing the ripple. We've tossed a rock in the pond, and all of a sudden, this ripple is playing out, and it's making us rethink. My fear is that you let things alone for too long, that ripple will die out, and it'll be back to business as usual until something else happens. And I guarantee something else will happen. It’s just a matter of time. On how streaming has made for a more global viewing experience [00:16:11] I got my first experience with that phenomenon with a TV show that was done for Spike called Blue Mountain State. It was a bunch of fraternity football people, you know, R-rate, and American football – as crazy American football as you could ever get. We sold it to Netflix and ultimately it ran in multiple countries all over the world. Nobody thought that American football would take off at all because the real football happens over there, not American football. And then we did a sequel movie, a two-hour movie that we distributed internationally. And all of a sudden, I remember looking at the Apple chart, and this Blue Mountain State movie was number one in places like Sweden and Norway and all these countries. And I'm like, I don't understand that. This is an American football movie. But what it showed is that in Norway, in Sweden, they had watched Blue Mountain State on Netflix because they didn't have to pay for it; it was part of their subscription. It had dubbing or it had subtitles and they got into it and they said, oh, this is kind of interesting. People get the ability to get serviced up content that they might not normally see. And because they don't have to make a buying decision on every piece of content, you can sample something. And I think that’s one of the real benefits.

We all know less than we think we do – and that’s OK. Phil Fernbach is a Professor of Marketing at the Leeds School of Business at the University of Colorado, Boulder. He is a cognitive scientist who studies how people think. He applies insights from his research to improve public disclosure and help consumers and managers make better decisions. With co-author Steve Sloman he wrote The Knowledge Illusion: Why We Never Think Alone, which was chosen as an editor's pick by the New York Times when it was released in 2017. We talked to Phil about the Knowledge Illusion, about how acknowledging what we don’t know can help us be better leaders and teammates. EPISODE QUOTES: What is the Knowledge Illusion? [00:01:45] The knowledge illusion is a very profound fact about human beings. This was actually a phenomenon that was first studied in the cognitive science world, in the nineties, by a researcher by the name of Frank Keil. And in his studies, he brought people into the lab and he asked them about their understanding of sort of common household objects, like zippers and toilets, and ballpoint pens. The first thing he would do would be he'd ask people how well they understood those objects. … [Most people] sort of nod their heads and say, “Oh yeah, I kind of know how that works.” In the next phase of the study, what he would do is ask people to explain in detail exactly how the object works, and what he found was pretty amazing. He found that people, in general, know remarkably little about the way that the world works. They reach inside and try to explain these phenomena and they realize that they have almost nothing to say, maybe one or two sentences. And yet that feeling that they have at the beginning, that they understand these things in a lot more depth than they do. The disconnect between those two things is what's called in the cognitive science world the illusion of explanatory depth. It's people's belief that they can explain things in more depth than they can. Why do we overestimate how much we know? [00:07:25] The illusion comes from the fact that most of what we know, or think we know, is actually not in our own heads, but it's in the heads of other people or in the environment, or on the internet. Because it's so natural for us to rely on information that exists outside of our own heads, we often fail to realize what's in our heads. So if everybody around me is sort of nodding their head and saying, oh yeah, we understand this, we sort of get the feeling that we ourselves understand it as well. On using The Knowledge Illusion to build strong teams [00:10:25] All the problems we work on in business nowadays are complex. And I'm sure your listeners have the experience of running into people all the time, who feel like they know everything. And in fact, they might feel pressure to sort of pretend like they understand everything in detail. That's why people never ask obvious questions in a business setting because they think that they should understand everything in detail and know everything. A good group is going to have a leader who understands his or her own limitations and knows how to put together a team with complementary skills in a way that functions effectively.