THE RUBBER BAND MODEL

Have you ever been trapped at a major crossroads in your life? Neither option seems to be a clear winner over the other. The Rubber Band Model introduced by Mikael Krogerus and Roman Tschäppeler helps to put your quandary to rest through logically ground analyses. You envision yourself tethered to two rubber bands stretched in opposing directions. Then you ask yourself, “What is holding me?” and “What is pulling me?”:

• What is holding you? – I am happy with the way things are now with my company. AI is making disruptive waves but far enough from my doorstep. Should I permit myself to enjoy the groovy ride and reassess for possible issues later?

• What is pulling you? – Am I seduced by the possibility of breaking into a new market? Can I leverage AI to improve efficiencies on my core competencies? Should I invest more into risk assessment so my company can widen its field of view in the competitive marketplace?

What is core to the Rubber Band Model is that we are removing loss aversion from the conventional pros and cons rationale of decision making. Rather than weighing two alternatives with tradeoffs, this model reframes those alternatives as two attractive options of different flavors.

“There is a calmness to a life lived in gratitude, a quiet joy.” — Ralph H. Blum