Carnegie Mellon University Faculty

"Man has been called the reasoning animal but he could with greater truthfulness be called the creature of suggestion. He is reasonable, but he is to a greater extent suggestible."

"The senses (the organs of sight, sound, taste, smell, temperature, and touch) are the guardians of the body, and whatever appears good to these sentinels is instantly desired, and ordinarily such things tend to the preservation and furtherance of the welfare of the body, but we choose them simply because they appear pleasing and not for ulterior ends."

"Some time ago a tailor in Chicago was conducting a vigorous advertising campaign. I did not suppose that his advertising was having any influence upon me. Some months after the advertising had begun I went into the tailor's shop and ordered a suit. While in the shop I happened to fall into conversation with the proprietor and he asked me if a friend had recommended him to me. I replied that such was the case. Thereupon I tried to recall who the friend was and finally came to the conclusion that this shop had never been recommended to me at all. I had seen his advertisements for months and from them had formed an idea of the shop. Later, I forgot where I had received my information and assumed that I had received it from a friend who patronized the shop. I discovered that all I knew of the shop I had learned from advertisements and I doubt very much whether I ever read any of the advertisements further than the display type. Doubtless many other customers would have given the same reply even though, as in my case, no friend had spoken to them concerning the shop."

"One young lady asserted that she had never looked at any of the cards in the cars in which she had been riding for years. When questioned further, it appeared that she knew by heart almost every advertisement appearing on the line (Chicago and Evanston line), and that the goods advertised had won her highest esteem. She was not aware of the fact that she had been studying the advertisements, and flatly resented the suggestion that she had been influenced by them. Some of the goods advertised were known to her only by these advertisements, yet she supposed that they had nothing to do with her esteem of the goods. She supposed that she had always known them, that they were used in her home, or that they had been recommended to her. She did not remember when she had first heard of them."

"Success or failure in business is caused more by mental attitude even than by mental capacity."

"During the last few decades the business world has brought about a complete revolution in the methods of manufacturing, distributing and selling goods. That the revolution is beneficial and important no businessman will deny. But however important'these things? are, the business man realizes that his most pressing problem is methods of influencing and handling men rather than things:"

"Goods offered as means of gaining social prestige make their appeals to one of the most profound of the human instincts. In monarchies this instinct is regarded as a mere tendency to imitate royalty. In America, with no such excuse, the eagerness with which we attempt to secure merchandise used by the "swell and swagger" is absurd, but it makes it possible for the advertiser to secure more responses than might otherwise be possible.. As an illustration of this fact we need but to look at the successful advertisements of clothing, automobiles, etc. The quality of the goods themselves does not seem to be so important as the apparent prestige given by the possession of the goods."

"The man with the proper imagination is able to conceive of any commodity in such a way that it becomes an object of emotion to him and to those to whom he imparts his picture, and hence creates desire rather than a mere feeling of ought."

"The selecting of men is one of the important functions in business and yet one that has not received much scientific attention. I feel sure that the time is ripe for action for two reasons. The psychologists have during the past few years made distinct advance in Mental Tests. My proposal is this: You get from your Class A members data as to their methods of selecting men. Any statements as to actual experience and as to principles or methods will be very valuable. I would make a study of these data and would have some of the men from our School of Commerce go over them with me. We would try to criticize them constructively. Perhaps we could make some suggestions that would be worth while. We would try to indicate the good points used and thus be of assistance to all members of the organization."

"There was a dearth of psychologists familiar with business operations. I finally persuaded Northwestern University to loan us Walter Dill Scott, who took up his duties in Pittsburgh on June 1, 1916, as the first American professor of applied psychology. His personal leadership coupled with his scientific preoccupations and his shrewd insight into business affairs were invaluable in this movement to study live problems in management by the methods of psychology."

"Today, organizations are competing in complex environments so that an accurate understanding of their goals and the methods for attaining those goals is vital. The translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system."

"Effective leadership begins with having the right mindset; in particular, it begins with having an ownership mind-set. This means a willingness to put oneself in the shoes of a decision maker and think through all of the considerations that the decision maker must factor into his or her thinking and actions."

"There’s no single right way to accomplish your goals. Each of us has a number of avenues to reach our potential. The world constantly changes. Life often unfolds as a series of phases. Our potential is likely to evolve as the world evolves and as we continue to learn, grow, and develop our capabilities."

"What does it mean to be “successful”? How do you achieve your dreams?"

"Industrial age companies created sharp distinctions between two groups of employees. The intellectual elite—managers and engineers—used their analytical skills to design products and processes, select and manage customers, and supervise day-to-day operations. The second group was composed of the people who actually produced the products and delivered the services. This direct labor work force was a principal factor of production for industrial age companies, but used only their physical capabilities, not their minds. They performed tasks and processes under direct supervision of white-collar engineers and managers. At the end of the twentieth century, automation and productivity have reduced the percentage of people in the organization who perform traditional work functions, while competitive demands have increased the number of people performing analytic functions: engineering, marketing, management, and administration. Even individuals still involved in direct production and service delivery are valued for their suggestions on how to improve quality, reduce costs, and decrease cycle times..."

"Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products."

"A Broadband Cable for TV is like a sewer pipe that in principle can carry gas, water, and waste: it is easy to get all that shit in there, but hard to separate it out again."

"Somebody once said, 'He's never wrong about the future, but he does tend to be wrong about how long it takes."

"Twenty-five years from now...Computers will be exactly like telephones. They are probably going to be communicating all the time ... I would hope that by the year 2000 there is this big [networking] infrastructure, giving us arbitrary bandwidth on a pay-as-you-go basis."

"In 10 years, you'll see 99% of the hardware and software systems sold through what are fundamentally retail stores."

"Microsoft NT...is going to be very far-reaching. It's going to grab the rug out from under Unix."

"The most reliable components are the ones you leave out."

"I'm gonna do four or five of these movies, and it's going to become my career. I'll have to keep expanding the bat suit, because I get fatter every year. I'll be bankrupt. I'll be out opening shopping malls, going from appearance to appearance in a cheesy van."

"Frankly, it's all set up now so that you're weirdly kind of safe. Once you get in those suits, they really know what to do with you. It was hard then; it ain't that hard now. Entertainment Weekly (2014)"

"From an art perspective, I don't know how you get better than Beetlejuice. In terms of originality and a look, it's 100% unique."

"I'll always stand by the first Batman. Even for its imperfections, people will never know how hard that movie was to do. A lot of that still holds up."

"I probably could've done this earlier, if I was more ambitious."

"Although quantum theory involves the use of nonlocal states, such as wave packets and entangled states, there is nothing in the theory, or in the real world so far as it is accurately described by quantum theory, that corresponds to the sorts of instantaneous nonlocal influences which have often been thought to arise in the situation envisaged in the EPR paradox, or implied by the fact that quantum theory violates Bell inequalities."

"What is the "cost of capital" to a firm in a world in which funds are used to acquire assets whose yields are uncertain; and in which capital can be obtained by many different media, ranging from pure debt instruments, representing money-fixed claims, to pure equity issues, giving holders only the right to a pro-rata share in the uncertain venture? This question has vexed at least three classes of economists: (1) the corporation finance specialist concerned with the techniques of financing firms so as to ensure their survival and growth; (2) the managerial economist concerned with capital budgeting; and (3) the economic theorist concerned with explaining investment behavior at both the micro and macro levels."

"Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't."

"What counts is what you do with your money, not where it came from."

"When I started worrying about stocks, it was the late 1930s and early 1940s and it didn't seem like a good way to make money then, either."

"Think of the firm as a gigantic tub of whole milk. The farmer can sell the whole milk as it is. Or he can separate out the cream, and sell it at a considerably higher price than the whole milk would bring. (Selling cream is the analog of a firm selling debt securities, which pay a contractual return.) But, of course, what the farmer would have left would be skim milk, with low butter-fat content, and that would sell for much less than whole milk. (Skim milk corresponds to the levered equity.) The Modigliani-Miller proposition says that if there were no cost of separation (and, of course, no government dairy support program), the cream plus the skim milk would bring the same price as the whole milk."

"More computing sins are committed in the name of efficiency (without necessarily achieving it) than for any other single reason - including blind stupidity."

"Contemporary theories of politics tend to portray politics as a reflection of society, political phenomena as the aggregate consequences of individual behavior, action as the result of choices based on calculated self-interest, history as efficient in reaching unique and appropriate outcomes, and decision making and the allocation of resources as the central foci of political life. Some recent theoretical thought in political science, however, blends elements of these theoretical styles into an older concern with institutions. This new institutionalism emphasizes the relative autonomy of political institutions, possibilities for inefficiency in history, and the importance of symbolic action to an understanding of politics. Such ideas have a reasonable empirical basis, but they are not characterized by powerful theoretical forms. Some directions for theoretical research may, however, be identified in institutionalist conceptions of political order."

"I am not now, nor I have ever been, relevant."

"… we sometimes find that such heresies have been the foundation for bold and necessary change, but heresy is usually just crazy. Most daring new ideas are foolish or dangerous and appropriately rejected or ignored. So while it may be true that great geniuses are usually heretics, heretics are rarely great geniuses."

"No organization works if the toilets don't work, but I don't believe that finding solutions to business problems is my job."

"If a manager asks an academic consultant what to do and that consultant answers, then the consultant should be fired. No academic has the experience to know the context of a managerial problem well enough to give specific advice about a specific situation."

"Social, political and economic institutions have become larger, considerably more complex and resourceful, and prima facie more important to collective life. Many of the major actors in modern economic and political systems are formal organizations, and the institutions of law and bureaucracy occupy a dominant role in contemporary life."

"Unfortunately, the gains for imagination are not free. The protections for imagination are indiscriminate. They shield bad ideas as well as good ones—and there are many more of the former than the latter. Most fantasies lead us astray, and most of the consequences of imagination for individuals and individual organizations are disastrous. Most deviants end up on the scrap pile of failed mutations, not as heroes of organizational transformation... There is, as a result, much that can be viewed as unjust in a system that induces imagination among individuals and individual organizations in order to allow a larger system to choose among alternative experiments. By glorifying imagination, we entice the innocent into unwitting self-destruction (or if you prefer, altruism)"

"Pure rationality and limited rationality share a common perspective, seeing decisions as based on evaluation of alternatives in terms of their consequences for preferences. This logic of consequences can be contrasted with a logic of appropriateness by which actions are matched to situations by means of rules organized into identities."

"They [human beings] are unwilling to gamble that God made those people who are skilled at rational argumentation uniquely virtuous. They protect themselves and others from cleverness by obscuring their preferences."

"In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the bias in information to the final decision have been proposed. In this paper we discuss two laboratory experiments which were designed to test two such hypotheses. The first experiment tests the hypothesis that cost and sales estimations are made with the implicit assumption that a biased pay-off structure exists. The second experiment tests explicitly the effects of biased and unbiased pay-off structures on estimation within an organization. An analysis of the data for the two experiments is made and some implications for further research are drawn from the results."