Sensemaking Summary

“What if we relied less on data and numbers, and more on understanding people, their culture, and their stories to solve problems?”

1. Understanding Humans Through Cultural Context

Sensemaking is centered on recognizing the importance of cultural understanding. It teaches us to interpret human behavior by looking beyond individual personalities to the larger cultural frameworks that shape people’s lives.

This concept aligns with the idea that people are not just isolated beings but products of their social environments. By understanding cultural dynamics, we can make sense of actions, choices, and values that might otherwise seem mysterious. For businesses, this kind of understanding opens up new ways to connect with customers on a deeper level.

Rather than relying solely on data points such as age or income, organizations can ask more meaningful questions about people’s experiences and motivations. This helps in making decisions that align more authentically with customers' cultural perspectives.

Examples

• Ford’s study of Lincoln luxury car customers looked at their social connections rather than just demographics.
• Examining cultural meanings of products, like milk consumption in the US, highlights emotional and tradition-based values.
• Historical concepts of love demonstrate how behavioral contexts change across cultures and eras.

2. Thick Data Over Thin Data

Thick data incorporates cultural and emotional details that give meaning to raw numbers. It focuses on context, which is essential for understanding human behaviors and motivations.

Unlike “thin data,” which provides straightforward facts, thick data connects these facts to stories, traditions, and shared experiences. For example, knowing 86% of households purchase milk weekly is thin data, but understanding why milk is a symbol of health in these homes gives the information depth and applicability.

Business leaders like George Soros rely on thick data to make informed decisions. Soros combined market conditions with social narratives to predict the devaluation of the British pound, resulting in a massive financial gain in 1992.

Examples

• George Soros used thick data (like media sentiment) to predict currency shifts.
• Crafting compelling ads requires understanding cultural values, not just raw demographics.
• Grocery chains improve customer insights by observing the cooking habits of their buyers.

3. The Problem with Big Data Alone

Big data, though powerful, often lacks the nuance needed to interpret human behaviors. It finds patterns in numbers but cannot determine why those patterns exist, which frequently leads to errors.

Google’s attempt at using search algorithms to predict flu outbreaks through Google Flu Trends is a great example. It failed because search behaviors (like looking up “chicken soup”) did not always correlate to actual flu cases. The reliance on a purely data-driven approach ignored the complexities of human intentions behind searches.

Understanding these limitations is vital for creating solutions that reflect real-world complexities. By relying less on automated calculations and more on cultural analysis, organizations can avoid the missteps caused by decontextualized data.

Examples

• Google Flu Trends couldn’t accurately predict health waves due to human search quirks.
• Algorithms on platforms like Netflix struggle to recommend new interests beyond predictable patterns.
• Frictionless technology, like Facebook filters, locks users in repetitive content loops.

4. Finding Creative Ideas Requires Immersion

Immersing oneself in an environment or topic is essential for creativity. Ideas often arise from connecting personal experience with external inspirations rather than following a fixed formula.

Creativity isn’t a step-by-step method, as argued by the design firm IDEO; instead, it stems from steeping ourselves in a field and feeling its currents. For example, Henry Ford’s breakthrough with the assembly line involved observing how pigs were processed in slaughterhouses—an insight only possible through immersion.

Being open to new stories and environments often catalyzes innovation. This approach requires engaging deeply with culture, traditions, and habits—which enrich creative problem-solving.

Examples

• Henry Ford developed assembly lines by observing slaughterhouses.
• Musicians like Beethoven drew inspiration by immersing themselves in nature.
• Writers often develop plots after engaging with personal struggles or social issues.

5. Interpretations Help Navigate Complexity

Every situation is influenced by cultural, emotional, and historical contexts, making interpretation a vital aspect of sensemaking. This skill is similar to navigating with the stars instead of relying solely on GPS—both require attention to multiple sources of information.

One standout example is FBI negotiator Chris Voss, who successfully freed journalist Jill Carroll by interpreting Middle Eastern cultural dynamics. Rather than relying on hardline tactics, Voss’s team used cultural symbols to communicate empathy and weaken the kidnappers' position.

By understanding and interpreting cultures instead of imposing their own, organizations and individuals navigate complexity better and achieve unusual outcomes.

Examples

• Navigating through Middle Eastern cultural values helped FBI free a hostage.
• Businesses can cater to global customers by studying regional cultural norms.
• Companies using customer feedback (beyond ratings) better improve experiences.

6. Challenge Assumptions by Asking New Questions

Sensemaking encourages individuals to question habitual assumptions, moving beyond what seems obvious. This shift requires active listening and empathy.

A struggling grocery chain managed to regain momentum by reframing their thinking. Instead of examining what customers bought, they asked how their shoppers experienced cooking at home. This cultural perspective revealed actionable insights to improve store layouts and marketing.

Asking new questions requires stepping out of enclosed spaces, such as corporate boardrooms, and embracing direct engagement with real environments.

Examples

• Grocery chains discovered shopping experiences mattered more than demographics.
• Asking "why" leads to discoveries, such as breakthrough tech improvements.
• Organizations tackling environmental issues inspire change with reframed narratives.

7. Human Behavior Is Rooted in Social Contexts

Humans seldom act independently of their social environments. Our behaviors are shaped by shared values, expectations, and traditions—making pure abstraction or overly mechanized analysis insufficient.

In love, for instance, a chemical explanation fails to account for the rituals and cultural meanings attached to courtship around the world. Similarly, whether a car is considered luxurious or plain depends on societal influences, not just technical specs.

Understanding human actions requires blending empathy, tradition, and cultural observations into analyses.

Examples

• Romantic customs shift from arranged marriages in historical India to Tinder matches.
• Social media trends can only be decoded by observing user interactions.
• Himalayan communities’ use of prayer flags mixes spirituality with environmental concerns.

8. Frictionless Technology Undermines Discovery

Technology designed to filter and tailor every experience limits our exposure to new ideas. While convenient, this creates one-dimensional perspectives.

Platforms like Facebook and Google employ algorithms that predict preferences and bias the content users see. This convenience, however, excludes other possibilities and opinions. Contrarily, real human interaction contains unpredictability, fostering broader learning.

Recognizing the limitations of frictionless technology encourages us to engage in offline and unpredictable interactions, sparking creativity.

Examples

• Streaming services like Spotify often fail to predict outlier taste interests.
• Filter bubbles limit political discourse by insulating users in echo chambers.
• Random book browsing inspires readers in ways algorithms can't replicate.

9. Philosophy Brings Practical Benefits to Business

Phenomenology, a philosophy emphasizing direct engagement, offers practical methods for studying human behavior. It means understanding life as it is lived—not theorized.

When reexamining customer shopping behaviors, organizations gather meaningful impressions by observing real actions. This lens allows for actionable conclusions that align with actual human needs rather than abstract patterns.

Business leaders incorporating sensemaking develop strategies more aligned with people's lived realities.

Examples

• Anthropologists observing family rituals discover new trends, influencing marketing.
• Direct interviews with focus groups provide richer results than statistical forecasts.
• Studying urban commuters reveals overlooked opportunities for public transport changes.

Takeaways

1. Before deciding based on data, search for cultural or emotional context that gives deeper meaning to the numbers.
2. Observe real-world actions and stories to spark better solutions rather than relying solely on structured processes or algorithms.
3. Appreciate how people’s environment and shared history shape their choices—it’s often the key to understanding behaviors.