Kyle Balmer explains the peak-end effect, a psychological bias where you remember only the high and low points of an experience, not the whole thing. He uses a birthday story to show how this plays out in business, and why leaders who ignore it tank team morale.
Chapters
I had the worst birthday imaginable. When I look back on it, I will remember the fact it was freezing and my little one said I want to go home within minutes of arriving at the beach. Why do I fixate on this? Well, according to the peak end effect, we tend to remember the most intense feelings from a past event. This feels true because the reality is 95% of my birthday was so much fun, yet I can only remember that freezing 5%. That's the peak end effect in full swing. This is not just I remember my birthday in a bad light problem, it it's a business problem. As business owners, we can miss the good times and fixate on the emotionally turbulent bad times. This doesn't do us nor our teams any favors. Solution. Simply by becoming aware of the peak end effect, you can better avoid it in turn helps you remember and announce the great progress being made. Be sure to stop and smell the roses like comment or share to remind a fellow business owner to remember the good times. You'll lift their spirit.