Luca Dellanna: Ergodicity, How Irreversible Outcomes Affect Long-Term Performance in Work, Investing, Relationships, Sport and Beyond

Luca Dellanna is a management advisor focused on increasing revenue through better people and operations management. After a master’s degree in automotive engineering, Luca spent the first part of his career working for DuPont’s consulting unit in Frankfurt, Germany. There, he focused on managerial excellence projects in a variety of manufacturing industries, all across Europe. In 2015, Luca moved back to his hometown of Turin, Italy, and opened a private consulting practice serving clients worldwide. He has also published books about management, human behavior, and economics that earned him appearances on the most important conference and podcast in his field, Nudgestock and EconTalk respectively. Luca lives with his wife Wenlin and his dog Didi, and divides his time between Turin and Singapore. Luca writes regularly on Twitter (@DellAnnaLuca). His personal website is www.luca-dellanna.com Today: 1. We talked about Luca's childhood and upbringing and how it shaped his interest in ergodicity. 2. Luca shared his perspective on how the understanding of time and variance can improve our decision-making process. 3. We discussed how his book is designed to help readers make better decisions that don't ignore time but leverage it. Luca elaborated on the idea of decisions that minimize regret and maximize long-term potential. 4. Luca talked about the concept of survival in both skiing and life in general. 5. We delved into the world of investing where Luca further advised that, over a prolonged period of time, survival dwarfs performance. 6. Luca shared his powerful concept about how irreversible consequences absorb future gains. 7. We talked about the statement, "Do not envy successes that don't reproduce well." Luca shared more about why envy is often misguided and how we should focus on repeatable successes. 8. Luca discussed his perspective that individuals should care about whether a system works for them, rather than if it works on average. 9. Luca explained the difference between ergodic and non-ergodic systems in terms of their outcomes. 10. He recommended investing time and money as a barbell to balance risk and reward. 11. We discussed the idea that extreme risks can outperform skill, and in general, taking small risks is a good strategy. 12. Luca shared his advice on performance measurement, highlighting the pitfalls of narrowing the time frame to increase performance. 13. We discussed how ergodicity can be introduced into life and where non-ergodicity might be positive. 14. Luca talked about the difference between efficiency (a snapshot in time) and effectiveness (a lifetime view). 15. Finally, we discussed how Luca's research has shaped his view of success. NEVER INVESTMENT ADVICE.