Topley’s Top Ten – March 11, 2019

Author

Matt Topley
March 11, 2020

1.U.S. Only Has 950,000 Hospital Beds.

2.Monday 3500 Stocks Hit 52 Week Low…Highest Level Since 2008

3.The Percentage of Stocks Breaking Below 200 Day Moving Average-3rd Lowest Reading

The percentage of NYSE stocks trading above theirrespective 200-day MA broke well below 20–now at its third lowestreading dating back to 1993-

4.Disney Stock -27%…Theme Parks=27% of Revenues.

5.Russian Market -22%

Russian Stock Market NotDown Much More Than Other Emerging Markets Considering Oil Implosion

6.First Trust Updated Intra-Year Declines Chart.

Pullbacks are commonplace.

7.Will Interest Rate Record Lows Drive Home Buying Boom?

Homebuilder ETF -16% from highs

8.S&P Energy Sector 2000-2020

Bespoke Group

9.Amazon Walk Out Stores.

10.The simple power of checklists

Here are the key reasons why checklists can be an important toolfor cultivating discipline and professionalism:

  • Checklists make sure you don’t overlook thebasics. – In the book, Dr. Gawande describes checklists as a typeof “cognitive net” that protects us from our mental flaws (our limitations inmemory and attention). Checklists ensure that we don’t miss the basics,especially when we’re feeling a bit tired or lazy.

  • Checklists free up your mental resources forthe hard stuff. – Once you have the basics out of the way, this frees upyour mind to actually think about the tough choices, including times whensomething unexpected or unplanned comes up and being focused is particularlyimportant.

  • Checklists keep you disciplined and on track. – Checklistsencourage routine and following protocol. When we get super familiar withsomething, it’s easy to do it half-heartedly and slip up. It’s when webecome too comfortable in what we know that a checklistcan sometimes be most useful.

  • Checklists save you time. – Sincethe basics are in front of you, you don’t have to mentally run through them andthis can save you critical amounts of time. This is especially important in atime-sensitive situation like emergency surgery or landing an airplane.

While checklists aren’t necessarily the most sexy or exciting thing in the world, they can be very valuable tool in reducing “stupid mistakes” and raising our overall standards in whatever work we are doing. How to create your own checklists

There is such a thing as a “good checklist” vs. a “badchecklist.” Here are healthy tips and suggestions on how to create and improveyour own checklists:

  • Focus only on the absolute essentials – Thegoal of a good checklist is to convey the essentials without going into toomany details. Checklists aren’t designed to be “how to” guides, they areessential reminders. A good checklist only needs to be 5-10 items.

  • Keep it simple and practical – Uselanguage that is easy to understand and precise. If your checklist takes extratime to read or understand, then it’s not serving it’s proper function.Checklists are designed to make things easier and efficient.

  • Define your “pause points” – Animportant question to ask yourself is, “When should this checklist be used?” “Pausepoints” are a specific time when you (or a team) need to stop to run through aset of checks before proceeding to the next step (this is similar to theconcept of mindful nudges).

  • Decide whether it’s a “Do-Confirm” or “Read-Do”list. – A “Do-Confirm” list is checking something you alreadydid (like a preflight checklist a pilot runs through before they can take off).A “Read-Do” list is when you do the items as you go along (like cooking arecipe, you follow as you go step by step).

  • Be willing to revise and update whennecessary. – Once you create your checklist, don’t hesitate to goback and change things in the future. Often you need to experiment with a checklist before you startgetting ideas on how to improve it.

This last step is probably one of the most important toremember. Your checklist doesn’t have to be “set in stone” – it should besusceptible to changes and experimentation. Even in Atul Gawande’s researchproject, hospitals were often encouraged to change their prescribed checkliststo fit their specific needs and preferences.

The “No Brown M&M’s” Clause

One of themost interesting stories shared in The Checklist Manifesto isabout Van Halen and their lead singer David Lee Roth.

At their prime, Van Halen was known for being a big arena rockband which included an intricate live show with lots of technical gear andspecific instructions to follow. Touring from state to state, bands usuallyhave a “rider” to let stadium personnel know how to set up their liveequipment. It essentially functions as a checklist.

David Lee Roth would include one weird “step” within thischecklist where he’d ask for a bowl of M&M’s in his dressing room; however,he wanted all the brown M&M’s removed. He explains his reasoning below:

“So just as a little test, buried somewhere in the middle of therider, would be article 126, the no-brown-M&M’s clause. ‘When I would walkbackstage, if I saw a brown M&M in that bowl,’ he wrote, ‘well, we’dline-check the entire production. Guaranteed you’re going to arrive at atechnical error…guaranteed you’d run into a problem.’ These weren’t trifles,the radio story pointed out. The mistakes could be life-threatening. InColorado, the band found the local promoters had failed to read the weightrequirements and the staging would have fallen through the arena floor.”

Asking for no brown M&M’s may seem like a super trivial andpainstaking detail to follow, but the test was important to David Lee Rothbecause, if followed successfully, it shows that the stadium personnel areserious about their job and getting the details right.

As you can see, in many situations checklists can be used toencourage a high level of professionalism and discipline. How often do you usechecklists in your own life? How well do they serve you?