My last post was all about satisficing, making decisions based on alternatives that satisfy our wants and needs and that are good enough, but may not be the absolute best option. Satisficing contrasts the idea of maximizing. When we maximize, we find the best alternative from which no additional Pareto efficiencies can be gained. Maximizing is certainly a great goal in theory, but in practice, maximizing can be worse than satisficing. As Gerd Gigerenzer writes in Risk Savvy, “in an uncertain world, there is no way to find the best.” Satisficing and using aspiration rules, he argues, is the best way to make decisions and navigate our complex world.
“Studies indicate that people who rely on aspiration rules tend to be more optimistic and have higher self-esteem than maximizers. The latter excel in perfectionism, depression, and self-blame,” Gigerenzer writes. Aspiration rules differ from maximizing because the goal is not to find the absolute best alternative, but to find an alternative that meets basic pre-defined and reasonable criteria. Gigerenzer uses the example of buying pants in his book. A maximizer may spend the entire day going from store to store, checking all their options, trying every pair of pants, and comparing prices at each store until they have found the absolute best pair available for the lowest cost and best fit. However, at the end of the day, they won’t truly know that they found the best option, there will always be the possibility that they missed a store or missed a deal someplace else. To contrast a maximizer, an aspirational shopper would go into a store looking for a certain style at a certain price. If they found a pair of pants that fit right and was within the right price range, then they could be satisfied and make a purchase without having to check every store and without having to wonder if they could have gotten a better deal elsewhere. They had basic aspirations that they could reasonably meet to be satisfied.
Maximizers set unrealistic goals and expectations for themselves while those using aspiration rules are able to set more reasonable, achievable goals. This demonstrates the power and utility of satisficing. Decisions have to be made, otherwise we will be wandering around without pants as we try to find the best possible deal. We will forego opportunities to get lunch, meet up with friends, and do whatever it is we need pants to go do. This idea is not limited to pants and individuals. Businesses, institutions, and nations all have to make decisions in complex environments. Maximizing can be a path toward paralysis, toward CYA behaviors (cover your ass), and toward long-term failure. Start-ups that can satisfice and make quick business decisions and changes can unseat the giant that attempts to maximize every decision. Nations focused on maximizing every public policy decision may never actually achieve anything, leading to civil unrest and a loss of support. Institutions that can’t satisfice also fail to meet their goals and missions. Allowing ourselves and our larger institutions to set aspiration rules and satisfice, all while working to incrementally improve with each step, is a good way to actually move toward progress, even if it doesn’t feel like we are getting the best deal in any given decision.
The aspiration rules we use can still be high, demanding of great performance, and drive us toward excellence. Another key difference, however, between the use of aspiration rules and maximizing is that aspiration rules can be more personalized and tailored to the realistic circumstances that we find ourselves within. That means we can create SMART goals for ourselves by using aspiration rules. Specific, measurable, achievable, realistic, and time-bound goals have more in common with a satisficing mentality than goals that align with maximizing strategies. Maximizing doesn’t recognize our constraints and challenges, and may leave us feeling inadequate when we don’t become president, don’t have a larger house than our neighbors, and are not a famous celebrity. Aspiration rules on the other hand can help us set goals that we can realistically achieve within reasonable timeframes, helping us grow and actually reach our goals.