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September 10.2025
1 Minute Read

Instagram Algorithm: Covering the differences between Reels, Stories, and Feed posts.

Did you know? “Over 95 million photos and videos are shared on Instagram every day, but only a fraction of them get seen—thanks to the power of the instagram algorithm.” This often-overlooked fact illustrates just how much influence the Instagram algorithm has on what you see, share, and engage with on one of the world’s most popular social media platforms. If you’ve ever wondered why certain posts go viral while yours sometimes go unseen, this guide will unlock the mysteries of the algorithm—and show you how to make it work for you in 2024.

Instagram algorithm feed interface users interacting with varied content analyzing cinematic digital workspace

Opening Insights: How the Instagram Algorithm Shapes Your Social Media Experience

The Instagram algorithm is the invisible engine behind your feed, stories, and reels, quietly deciding what appears first and what gets buried. Whether you’re a casual scroller or an aspiring influencer, the algorithm’s set of rules affect every Instagram post you encounter. It learns from your likes, comments, shares, and even the seconds you pause on a video, constantly adapting what you see to keep you engaged on this social media platform. By understanding how this algorithm works, you’re empowered to tailor your content for maximum impact—whether your goal is to build a brand, reach the explore page, or simply connect with friends. Good news: cracking the code is easier than you think once you know what the algorithm values most.

“Over 95 million photos and videos are shared on Instagram every day, but only a fraction of them get seen—thanks to the power of the instagram algorithm.”

What You’ll Learn About Instagram Algorithm Differences

  • What the instagram algorithm is, and how it functions across content formats
  • Key ranking factors for Reels, Stories, and Feed posts
  • How to optimize your instagram posts to maximize reach
  • Insights from the head of Instagram and industry experts
  • The impact of community guidelines on algorithm performance

Insightful social media strategist reviewing engagement metrics instagram algorithm modern home office

The Instagram Algorithm Explained: Foundations and Purpose

What is the Instagram Algorithm?

  • Definition of instagram algorithms: At its core, an Instagram algorithm is a set of rules and calculations that determines which content appears in your feed, explore page, stories, and reels. It’s not just one algorithm; Instagram actually has several, each tailored to different parts of the app.
  • Purpose in the broader social media landscape: Like other social media platforms, Instagram’s algorithm work is designed to rank content from millions of users—making sure you see the most engaging, relevant content first. This helps users find posts they enjoy while also giving creators a fair chance to grow.
  • How the algorithm works behind the scenes: The Instagram algorithm looks at factors such as your previous activity (likes, comments, shares), who you interact with most, the time you spend on certain content, and even things like trending topics. It measures how often you engage with a certain user or topic and uses that data to rank content, making every feed unique to your preferences and behaviors.

Dynamic abstract instagram algorithm lines swirling central logo digital matrix details illuminated

A Brief History: Evolution of Instagram Algorithms

  • Early chronological feeds vs. algorithmic feeds: In its early days, Instagram showed posts in a chronological feed. As the platform grew, users began missing 70% of all posts and 50% of friends’ posts, leading to the introduction of the algorithmic feed in 2016. The shift aimed to show users what mattered most to them, not just what was most recent.
  • Key changes driven by user behavior and platform goals: Over the years, Instagram has refined its algorithm to balance various goals: keeping users engaged, supporting creators, and meeting business needs. Updates have included prioritizing video content, introducing carousel post formats for higher engagement, and focusing on authentic interactions over vanity metrics like likes.
Instagram Algorithm Changes Timeline Major Features Introduced Algorithm Impact
2010–2015 Chronological Feed All posts in sequence; high post visibility
2016 Algorithmic Feed Introduced Content shown based on interaction and relevance
2018 Explore Page, Shopping Added Focus on discovery and monetization
2020–2023 Reels, Enhanced Stories, New Ranking Factors Short-form content prioritized, increased user engagement data

How Instagram Algorithms Work for Reels, Stories, and Feed Posts

Instagram Feed Algorithm: Ranking Factors and Best Practices

  • Primary ranking factors for feed posts: The instagram feed algorithm ranks content using four main signals: your relationship with the poster, how timely/recent the post is, the type of content (photo, video, carousel), and your past interactions. Engaging posts—whether images or videos—are surfaced more often, especially when they use relevant hashtags or inspire conversation.
  • How carousel posts impact engagement: Carousel posts, which allow for multiple images or videos in a single Instagram post, often lead to higher engagement, as users spend more time swiping through all the content. Instagram algorithms reward this behavior by bumping carousels higher in the feed if users interact with them.
  • Case study: Popular instagram posts on the explore page: Posts that gather early engagement (likes, saves, comments) are more likely to break into the explore page, leading to exponential reach. For example, a creator who consistently uses relevant hashtags, posts during their audience’s peak activity, and interacts with their followers will see more of their content featured on the explore page and recommended to new users.

Engaged young couple cheerful expressions browsing Instagram feed algorithm cozy cafe

Instagram Stories Algorithm: What Sets It Apart?

  • Story prioritization in the algorithm: Unlike feed posts, Instagram Stories are prioritized based on how often you interact with a user’s stories through replies, reactions, or visits to their profile. The stories you see first are usually from the accounts you connect with most frequently.
  • Influence of direct interactions and view history: If you regularly watch someone’s stories or message them, Instagram algorithms take note—putting those stories at the front of your queue. Instagram also considers how recently you’ve engaged with that user and whether you’ve lingered on previous stories, signaling real interest that the algorithm rewards with higher visibility.

Instagram Reels Algorithm: Maximizing Short-Form Content

  • How the reels algorithm differs from the feed: The Instagram reels algorithm is optimized for discovery instead of familiarity. While the feed mostly shows users content from people they follow, reels are distributed to both followers and non-followers, pushing top-performing reels to the wider “For You” audience.
  • Instagram reels algorithm ranking factors: This part of the algorithm works by studying watch time, replays, shares, likes, and overall engagement. Short, eye-catching, and entertaining reels that use relevant hashtags and trending audio are far more likely to go viral.
  • Role of relevant hashtags and music in discoverability: When you add trending hashtags and songs/music, you give the reels algorithm even more signals to surface your content on the Explore page and Reels feeds. Creators who jump on trends early typically enjoy greater engagement and visibility.

Energetic content creator excited filming Instagram Reel algorithm open park city skyline

Comparing How the Instagram Algorithm Works Across Formats

Format (Feed, Stories, Reels) Main Algorithm Ranking Factors Content Types Prioritized User Engagement Signals
Feed Relationship, recency, post type, engagement Photos, videos, carousels Likes, comments, saves, shares
Stories Direct interactions, view history, messaging Stories, short videos, polls, Q&As Replies, taps, forwards, holds
Reels Watch time, replay, trending audio, hashtags Short-form vertical videos Watches, replays, shares, follows from reel

Visual split diagram three Instagram phone screens feed stories reels interface highlighted algorithms

Influence of the Explore Page and Instagram Post Performance

  • How the explore page surfaces content using algorithms: The explore page is driven by a version of the Instagram algorithm that’s focused on discovery. It uses your historical engagement signals, your interests, and what similar users engage with to recommend fresh posts you might never have seen otherwise.
  • Ways instagram posts can break into the explore page: To reach the explore page, your Instagram post needs strong early engagement and relevancy. Trending hashtags, carousel posts, posting at the right time, and encouraging followers to share and save can all help nudge your content onto this coveted stage, boosting your presence as the algorithm works in your favor.

The Role of Community Guidelines and Content Moderation in Algorithm Work

  • Enforcement of instagram community guidelines: Content on Instagram must adhere to strict community guidelines. The platform’s algorithms automatically detect and demote or remove posts that violate rules regarding hate speech, nudity, harassment, and misinformation.
  • How content violations influence visibility: If your content breaks these rules—either by accident or on purpose—the algorithm will quietly reduce its reach or even take it offline, hurting your visibility and growth. Staying updated with community guidelines is critical for creators and brands aiming for long-term success on Instagram.

Confident Instagram moderator reviewing flagged content community guidelines digital workspace

Expert Insights: The Head of Instagram on Algorithm Transparency

“We want to be honest about how the instagram algorithm works so creators have more control.” – Head of Instagram

Adam Mosseri, the Head of Instagram, has made transparency a priority. By openly sharing how the platform’s algorithms rank content and what factors matter most, Instagram is empowering creators and brands to better understand—and even anticipate—how the algorithm will respond to different posting strategies. Mosseri’s comments have led to an era where you don’t have to guess what makes a post successful: Instagram tells you what works and even shares tips on staying in the algorithm’s good graces.

Proven Strategies to ‘Hack’ Instagram Algorithms for Each Format

  1. Use relevant hashtags and trending audio for instagram reels
  2. Foster direct interactions in instagram stories
  3. Experiment with carousel post formats
  4. Post during peak engagement times
  5. Encourage saves, shares, and comments

Inspiring social media manager strategizing posting schedule instagram algorithm creative workspace

Ranking Factors: What Matters Most in 2024

  • Timeliness: Posting when your target audience is online increases the chances of immediate engagement.
  • Relationship with follower: The more you engage with your followers and they with you, the more your content is surfaced to them.
  • Content type relevance: Using a mix of videos, carousels, and static posts ensures that your content resonates with various users and keeps the algorithm interested.
  • Engagement signals: Saves, shares, comments, and DMs all tell Instagram algorithms that your content is valuable and should reach a wider audience.

What Is the Instagram Algorithm? (People Also Ask)

The Instagram algorithm is a system of rules and calculations that decides which posts, stories, and reels you see first on your feed. It analyzes how you interact with content—likes, comments, saves, follows, and even the time spent viewing—to deliver relevant content tailored just for you. It continually learns your preferences and adapts what shows up, aiming to keep you engaged longer each session.

What Is the 5-3-1 Rule on Instagram? (People Also Ask)

The 5-3-1 rule suggests that for every 5 posts you like, you should leave meaningful comments on 3 and direct message 1 user. This engagement strategy helps you build authentic relationships and increase your visibility in the feed and explore page. Consistently applying this rule tells the algorithm you’re an active user, which can boost your reach over time.

How Do I Increase My Instagram Algorithm? (People Also Ask)

To improve your performance with the instagram algorithm, focus on posting high-quality and engaging content using relevant hashtags, respond promptly to comments and messages, post consistently, and experiment with different formats such as stories, reels, and carousel posts. Analyzing performance via insights and adjusting your strategy can further help you engage with your audience and strengthen your presence.

How to Get Picked Up by Instagram Algorithm? (People Also Ask)

Getting noticed by the instagram algorithm requires a mix of timeliness, engaging content, and community engagement. Use trending audio in reels, post at peak times, add relevant hashtags, encourage follower interaction, and share story polls or Q&A. By following these steps, your content is more likely to appear at the top of feeds and the explore page—where new audiences can discover you.

This engaging animated video breaks down the process of how the Instagram algorithm sorts, analyzes, and recommends content for Feed, Stories, and Reels, using simple diagrams and real-world examples for easy understanding.

Watch a lively discussion among social media strategists and content creators as they share actionable tips and answer burning questions about how the Instagram algorithm works in 2024—perfect for marketers, creators, and business accounts alike.

FAQs on Instagram Algorithm for Reels, Stories, and Feed

  • Does the instagram algorithm penalize business accounts?
    No, the Instagram algorithm does not penalize business accounts, but it does reward high engagement. Business accounts with low interaction rates may see less reach, but this is due to engagement, not account type.
  • How often should I post for the instagram algorithm?
    Consistency is vital. Aim to post at least once a day or several times a week. Frequent, high-quality content signals to the algorithm that your account is active and valuable to followers.
  • Are third-party scheduling tools safe?
    Most reputable third-party tools approved by Instagram are safe to use and won’t impact your reach. However, always use trusted providers and avoid shortcuts that violate Instagram’s terms of service.
  • What content thrives on the explore page?
    Content that receives early and active engagement—such as likes, shares, saves, and comments—often thrives on the explore page. Creative reels, visually stunning photos, and relatable memes or tips typically perform best.

Key Takeaways: Mastering the Instagram Algorithm

  • Tailor content strategy for each algorithm—feed, stories, reels
  • Engage authentically to improve algorithm works
  • Monitor changes and adapt using analytics
  • Stay updated on community guidelines for instagram

Optimistic digital marketer reviewing Instagram analytics dashboard mastering algorithm

Conclusion: Adapting to Evolving Instagram Algorithms

Stay flexible, analyze your data, and embrace new Instagram features to keep your content thriving as the algorithm evolves.

Discover More: How Social Media Algorithms and Recommendation Engines Work

For a deeper dive into the world of recommendation systems on Instagram and other platforms, discover more about Social Media Algorithms and Recommendation Engines, and unlock the secrets to smarter digital marketing strategies.

Colorful futuristic control room marketers analyzing algorithm data glowing dashboards

Sources

  • Instagram Feed Ranking Explained – https://business.instagram.com
  • Instagram Community Guidelines – https://about.instagram.com
  • How the Instagram Algorithm Works in 2024 – https://later.com
  • Social Media Algorithms and Recommendation Engines – https://dylbo.com

Understanding the Instagram algorithm is crucial for optimizing your content’s reach and engagement. To delve deeper into this topic, consider exploring the following resources:

  • “Shedding More Light on How Instagram Works”: This official blog post by Instagram’s head, Adam Mosseri, provides an in-depth explanation of the various algorithms governing Feed, Stories, and Reels, offering transparency into how content is ranked and displayed. (about.instagram.com)

  • “How the Instagram Algorithm Works in 2025 | Ultimate Guide”: This comprehensive guide from Later.com breaks down the latest updates to Instagram’s algorithm, detailing how it affects different content formats and providing actionable tips to enhance your strategy. (later.com)

By exploring these resources, you’ll gain valuable insights into the mechanics of Instagram’s algorithm and learn strategies to optimize your content for better visibility and engagement.

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12.05.2025

Rethinking Rationality: The Limits of Logic in Human Decision-Making

Opening Hook: Challenging Conventional Wisdom on RationalityDid you know that rigidly relying on logic to solve complex problems often leads to dead ends? For decades, decision-makers from boardrooms to governments have sought the single 'right' answer through rational models, expecting a crystal-clear solution. Yet, persistent issues and slow innovation tell a different story — logical approaches sometimes fail because they oversimplify human behaviour and motivation.In this article, we will explore the limits of rationality as a framework for understanding decision-making. We will reveal why strict logic can stifle creativity and why embracing a broader, more nuanced perspective can help local businesses differentiate themselves and flourish in crowded markets.Understanding the Limits of Rationality: Definitions and ContextThe concept of rationality traditionally hinges on making decisions based on clear logic, maximising utility, and following consistent rules. This idealised view assumes individuals act as rational agents, optimising outcomes through reasoned thought.However, extensive research in behavioural economics and cognitive science challenges this assumption. Humans often behave irrationally, influenced by emotions, social context, and subjective perceptions. Recognising this gap is critical for businesses aiming to connect authentically with customers and innovate beyond standardized, formulaic solutions.Comparison of Rational vs. Irrational Decision-Making ModelsAspectRational ModelIrrational ModelDecision BasisLogical analysis, clear criteriaEmotions, heuristics, narrativesGoalOptimal, utilitarian outcomesSubjective satisfaction, meaningFlexibilityFixed rules, predictableAdaptive, context-dependentInnovation PotentialLimited by predefined logicEncourages novel solutionsExampleStandard economic theoryBehavioural economics insightsThe Problem with Designing for the Average PersonOne critical flaw in many rational models is their focus on the “average person.” Businesses often design products and policies targeting a single representative individual with averaged traits. Rory Sutherland of Ogilvy & Mather highlights that this approach “creates a dead end.” Since the average person, by definition, embodies a blend of many conflicting preferences, it’s difficult to develop solutions that resonate deeply or meaningfully with them.Instead, real innovation blossoms when we look to the extremes — niche or unusual consumers — who often inspire trends adopted later by the mainstream. For example, niche urban commuters opting for homes near railway stations rather than traditional tube lines discover better value and convenience, bypassing saturated logic everybody else follows. Designing for extremes fosters originality and avoids the trap of sameness.Interestingly, the tension between rationality and adaptation is also visible in how emerging technologies are reshaping the workforce. For instance, the rise of artificial intelligence is prompting young tech professionals to reconsider traditional career paths and decision-making frameworks. If you’re curious about how these shifts are influencing job opportunities, you might find this exploration of AI’s impact on job prospects for young tech workers particularly relevant.Why Pure Logic Falls Short: Insights from Business and StrategyExploiting the Limits of Rationality in Competitive MarketsRationality in business strategy often assumes that the best course is a straightforward logical choice. But according to Rory Sutherland, “it doesn’t pay to be logical if everybody else is being logical.” In military strategy and markets alike, predictability breeds vulnerability. When all competitors pursue the same rational ideas, they crowd into the same spaces, leading to commoditisation and price wars.Successful businesses identify where competitors’ logic is narrow or misguided and find ways to exploit these overlooked opportunities. By deliberately breaking away from conventional rationale and examining the flaws in others’ assumptions, companies can craft unique value propositions that stand out. For example, locating affordable housing near lesser-known railway stations, rather than busier but more expensive tube lines, is an unconventional strategy that beats mainstream logic.The Role of Subjectivity and Magic in Decision-MakingAdaptive Preference Formation: Constructing Value Through NarrativeBeyond strict rationality lies the realm of subjectivity, where experience and perception shape value. A prime example is the psychological principle of adaptive preference formation. This is where individuals adjust their preferences to minimise regret and construct narratives that make compromises feel like conscious choices rather than disappointments.Rory Sutherland gives the example of commuters standing on trains: while standing might initially seem undesirable, designing environments that provide balance supports and small satisfactions—such as window views or phone holders—enables passengers to reframe standing as a choice with benefits. This “alchemy” creates perceived value without altering objective realities, showing how subjective narratives can unlock new satisfaction.Embracing Irrationality: Scientific and Practical PerspectivesThe Danger of Over-Reliance on Rational ModelsConventional science often prioritises neat, logical, and replicable models. However, as Rory Sutherland cites philosopher Paul Feyerabend’s “anything goes” approach, real-world discovery and progress frequently emerge from serendipity, guesswork, and irrational experimentation. Strict adherence to rationality risks stifling creativity and narrowing the solution space for persistent problems.Businesses benefit from fostering environments where ‘irrational’ ideas—those that defy conventional logic but may surprise with success—are encouraged and tested. These ventures, though risky, open paths ignored under rigid methodology. For example, allowing small teams to trial unconventional marketing strategies can translate into sustainable competitive advantages by venturing where others fear to tread.The Power of Small, Trivial Interventions in Complex SystemsContrary to the intuitive idea that large problems require large solutions, complex systems often respond dramatically to minute changes. Rory Sutherland explains that trivial, even “stupid” things, like a single sentence added to a call centre script or a minor policy reversal, can have outsized effects on behaviour and efficiency.A practical case is the electric car charging grant paradox: prospective buyers must prove ownership of an electric car before receiving support to install a home charger, hindering adoption. Simply reversing this sequence—a trivial intervention—could accelerate electric vehicle uptake significantly.Examples of Trivial Interventions with Significant ImpactInterventionContextImpactReordering grant eligibilityElectric vehicle adoptionBoosts charger installations and car salesAdding a sentence to call scriptsCustomer serviceReduces call handling times and frustrationDesigning train carriages with balanced seatingCommuter experienceImproves passenger satisfaction and perceptionPeople Also Ask: Addressing Common Questions on the Limits of RationalityAre there any limits to rationality? Yes, rationality often fails to account for emotions, context, and subjective human motivations, which are critical for real-world decisions.What are the limitations of human rationality? Humans use heuristics and narratives that can override strict logic, resulting in choices that may appear irrational but fulfil psychological or social needs.What are the limitations of rationalism? Rationalism can restrict innovative thinking by focusing only on solutions that fit predetermined logical frameworks, potentially ignoring better but non-obvious alternatives.What are the limits to rational decisions? Rational decisions are bounded by incomplete information, cognitive biases, and the complexity of adaptive systems where minor changes have disproportionate effects.Key Takeaways: Summary of the Limits of Rationality in Decision-MakingLogic often restricts innovation by enforcing a single 'right' answer.Designing for the average person limits breakthrough solutions.Subjectivity and narrative construction can create value beyond objective improvements.Experimentation with irrational ideas can yield sustainable competitive advantages.Small, seemingly trivial changes can produce significant effects in complex systems.Conclusion: Embracing the Limits of Rationality to Unlock New Possibilities“If a problem is persistent, it’s fairly likely that it’s logic proof. Conventional linear rationality isn’t going to find the solution.” — Rory Sutherland, of Ogilvy & MatherLocal businesses looking to innovate and differentiate must move beyond purely logical models. Embracing unpredictability, subjectivity, and small interventions offers new paths to growth and customer satisfaction.Call to ActionFor help to show your business in action and unlock creative strategies that embrace the limits of rationality, Email SmartMarketing@dylbo.com today.What You'll LearnWhy conventional logic can limit creativity and problem-solving.How designing for extremes, not averages, can unlock customer insights.The power of subjectivity and narrative in shaping value perceptions.Benefits of testing counterintuitive ideas within your business.How small tweaks can lead to significant systemic improvements.Sourceshttps://example.comExplore Further: The Evolving Landscape of Decision-MakingAs you reflect on the boundaries of rationality in business and innovation, consider how insights from Rogers Brubaker and Margaret Levi extend these principles to broader shifts in the world of work and technology. The interplay between logic, adaptability, and emerging trends is shaping not only how organisations compete, but also how individuals navigate their careers. For a deeper dive into the strategic implications of technological change and the future of work, explore our insights on how AI is shaping job opportunities for young tech professionals. This perspective can help you anticipate challenges, spot new opportunities, and stay ahead in a rapidly evolving marketplace.In exploring the boundaries of rational decision-making, two insightful resources by Margaret Levi and Rogers Brubaker offer deeper perspectives:“The Limits of Rationality” by Roger Brubaker (routledge.com) delves into Max Weber’s analysis of Western civilization’s unique rationalism, highlighting the interplay between empirical studies and moral viewpoints. This work provides a comprehensive understanding of how rationality shapes, and is shaped by, societal structures.“The Limits of Rationality” edited by Karen Schweers Cook and Margaret Levi (press.uchicago.edu) compiles interdisciplinary essays that challenge the rational choice paradigm, offering suggestions for enhancing current models. This collection is invaluable for those seeking to understand the complexities and limitations inherent in rational decision-making frameworks.For a more nuanced grasp of rationality’s constraints and its implications across various disciplines, the works of Margaret Levi and Rogers Brubaker provide essential insights.

11.29.2025

The Alchemy of Business: How Subjectivity and Narrative Create Value

Did you know that conventional logic often limits business innovation and value creation? In a marketplace crowded with rational thinking and standardised strategies, business alchemy offers a radical new path to stand out by leveraging subjectivity, storytelling, and psychological nuance. This article explores a radical new approach to transform business by transcending pure logic and embracing narrative, unlocking unique opportunities that conventional strategies miss and elevating ordinary products and services into invaluable customer experiences through business alchemy.Startling Insights into Business Alchemy: Beyond Conventional LogicAt its core, business alchemy offers a radical new approach that challenges the notion of a single, objectively correct way to solve problems in business. Rory Sutherland, a leading expert from Ogilvy & Mather, explains that the obsession with a “single right answer” stems from a desire to keep decisions safe and defensible rather than original or effective. In fact, the opposite of a good idea can also be a good idea, opening pathways for innovation that pure logic would dismiss as contradictory.For business owners seeking to differentiate from competitors, this means avoiding the trap of designing products or solutions for an average customer profile. Sutherland emphasises focusing on extreme or niche users — a strategy many businesses overlook because it appears illogical initially. These niches can become the hotbeds where new trends emerge before they cascade into mainstream success.Moreover, when all competitors operate strictly within logical boundaries, businesses risk becoming entirely predictable and, consequently, uncompetitive. “There’s no point being logical when everyone else is logical,” says Rory Sutherland. By embracing ideas that may seem irrational at first glance, companies create unexpected value that disrupt market patterns and captivate customers.What is Business Alchemy? Understanding the Radical New ApproachAndrew Wallas of CBC UK Ltd states, "Context is a marketing super weapon, and it works because it works magically."Business alchemy is a next level, radical new approach to transform value creation by combining subjective experience, storytelling, and psychological framing beyond the physical attributes of products or services. Unlike traditional logic-based approaches, business alchemy recognises that perception and context shape reality for customers far more than objective features alone.By deliberately shaping narratives and leveraging human psychology, organisations can turn even simple or overlooked offerings into deeply compelling experiences. This approach upends the assumption that improving a product’s quality alone drives customer satisfaction.Interestingly, the principles of business alchemy, championed by Andrew Wallas, such as embracing unconventional thinking and adapting to new contexts, are influencing how emerging technologies reshape the workforce. For example, the rise of AI is prompting young tech professionals to rethink their career strategies and value propositions in a rapidly evolving market. If you’re curious about how these shifts are impacting job opportunities, explore how AI is shaping job opportunities for young tech workers for a closer look at this dynamic landscape.The Role of Subjectivity and Narrative in Business AlchemySubjectivity enables businesses to craft stories that align customer expectations with their experience. For example, a hotel that might objectively be Spartan can become extraordinary if it promises and delivers a unique cultural immersion, as Rory Sutherland observed during his stay in East Berlin. The expectation—set by narrative—dramatically alters the perception of value.Moreover, storytelling acts as a bridge between product and consumer, shaping meaning and emotional connection. This dynamic is central to turning ordinary experiences into memorable ones, capturing loyalty and elevating brand perception.Key Principles of Business Alchemy: Lessons from Andrew WallasOpposite ideas can both be good ideas — avoid the trap of a single right answer.Don’t design for the average; focus on extremes to innovate.Being logical when everyone else is logical leads to predictability and competition.Perception shapes experience — expectations influence satisfaction.Costly and elaborate displays in advertising create effectiveness through perceived value.Logic kills magic — embrace subjective context to create unique value.Good guesses that withstand empirical testing are valid scientific approaches.Test counterintuitive ideas to gain sustainable competitive advantages.Rationality alone is insufficient; use multiple approaches to solve problems.Small, trivial changes can have outsized impacts in complex systems.How Business Alchemy Transforms Marketing and Customer ExperienceExamples of Business Alchemy in ActionOne striking example of business alchemy in action demonstrates a radical new approach to transform commuter experiences on trains. As Rory Sutherland highlights, the traditional approach to seating and standing on trains is driven by objective function — a logical design. However, by reframing how standing is perceived through design changes like creating bum rests, cup holders, and enhanced views, the discomfort and dissatisfaction traditionally associated with standing can become a choice with perceived benefits.This example illustrates how subjective reframing and nuanced customer experience design can unlock value simply by shifting narrative and context, rather than altering the physical product fundamentally.Common Misconceptions About Business Alchemy and LogicAccording to Andrew Wallas, "Trying to make something efficient and trying to make something effective are not the same thing."Many business leaders, including Andrew Wallas, caution that imposing rigid logical models will not produce the optimal solution in complex markets. Yet, adaptive and complex market environments defy such simplicity. Efficiency pursuits can sometimes kill the magic needed to create differentiation and emotional value.Business alchemy teaches that the effective may require costly, elaborate, or seemingly subjective tactics that logic deems inefficient, but these tactics deeply enhance perceived value and customer loyalty.Actionable Tips to Apply Business Alchemy in Your OrganizationEncourage experimentation with counterintuitive ideas to uncover untapped growth areas.Design products and services for niche or extreme users, not just the average, to spark innovation.Use storytelling strategically to shape customer perceptions and exceed expectations.Allow small, seemingly trivial changes to test their impact on customer behaviour and satisfaction.Be open to irrational or non-linear solutions to persistent problems that logic alone cannot solve.People Also Ask: Understanding Business AlchemyWhat is business alchemy?Business alchemy is the practice of creating value through subjective experiences, storytelling, and creative narratives, transforming ordinary products or services into uniquely appealing offerings beyond logical and objective methods.What is a business alchemist?A business alchemist is a strategist or innovator who applies unconventional, narrative-driven, and psychologically informed approaches to business challenges to generate value that traditional logic might overlook.How does alchemy relate to finance?Alchemy in finance refers to leveraging psychological insights and narrative framing to influence perceptions of financial value, risk, and opportunity, thereby creating outcomes that transcend what traditional financial logic would predict.What is the alchemy of leadership?The alchemy of leadership is the ability to inspire, motivate, and create emotionally resonant narratives that influence teams and stakeholders beyond purely rational or transactional methods, driving engagement and transformation.Rule NumberPrincipleBusiness Alchemy Application1Opposite ideas can both be goodEncourage diverse perspectives to find unique solutions2Don’t design for averageTarget niche markets for innovation3Avoid predictabilityExploit competitors’ logical blind spots4Perception shapes experienceManage customer expectations effectively5Costly displays create valueInvest in impactful marketing6Logic kills magicUse subjective context to differentiate7Good guesses are valid scienceEmbrace experimentation8Test counterintuitive ideasGain competitive advantage9Rationality is limitedUse multiple problem-solving tools10Small changes have big effectsImplement trivial interventions strategicallyKey TakeawaysBusiness alchemy leverages subjectivity and narrative to create unique value that pure logic often misses.Conventional logic often limits innovation and restricts problem-solving creativity.Small, counterintuitive changes can yield significant, sustainable competitive advantages.Experimentation and openness to irrational solutions are essential in complex markets.Effective marketing combines costly displays with storytelling to deeply engage customers' emotions and minds.Conclusion: Embrace Business Alchemy to Transform Your StrategyTo take your business to the next level, owners must embrace business alchemy by experimenting boldly, valuing narrative, and recognising that sometimes irrationality and subjectivity are the keys to extraordinary value creation.If you’re inspired to rethink your approach to business strategy, consider this radical new approach to transform your business beyond narrative and subjectivity. The most successful leaders continually seek out new perspectives and advanced techniques to stay ahead in a rapidly changing world. For a deeper dive into how technology and human creativity intersect to shape the future of work, discover the broader implications in this exploration of AI’s impact on job opportunities for young tech professionals. Expanding your understanding of these trends can help you future-proof your business and unlock even greater value through the alchemy of innovation.For help to show your business in action, Email SmartMarketing@dylbo.comSourcesOgilvy & Mather – Rory Sutherland insightsCBC UK – Andrew Wallas commentary on marketing contextTo deepen your understanding of business alchemy and its transformative potential, consider exploring the following resources:“Business Alchemy” by Andrew Wallas: This book offers a metaphysical perspective on organizational transformation, focusing on internal dynamics and energy flow to align companies with their objectives. (barnesandnoble.com)The School for Business Alchemy: An online program designed for business leaders seeking radical approaches to growth, emphasizing energy alignment and innovative strategies. (theschoolforbusinessalchemy.org)These resources provide unique insights into leveraging subjectivity and narrative to create exceptional value in business.

11.27.2025

Beyond Logic: Embracing Irrationality to Solve Persistent Problems

Opening Hook: Can Embracing Irrational Problem Solving Unlock Solutions That Logic Alone Cannot?Irrational problem solving challenges the deeply ingrained assumption that clear-cut logic and rational numbers always deliver the best solutions. What if the secret to resolving complex, persistent problems lies beyond rational models and predictable thinking? This article ventures into how flexibility, perception, and seemingly illogical approaches can reveal unexpected, breakthrough solutions that pure logic misses.In many businesses and policy decisions, there is a strong temptation to cling to a single logical answer, but this often leads to stagnation and missed opportunities. Rory Sutherland of Ogilvy & Mather, a leading voice on this topic, argues that adopting an irrational problem solving mindset offers fresh perspectives that can differentiate your business and open paths previously obscured by conventional thinking.What You'll Learn: Understanding the Power of Irrational Problem SolvingWhy conventional logic often fails to solve persistent problemsTen transformative rules for adopting irrational problem solvingHow to leverage irrationality to gain competitive advantageThe role of perception, context, and narrative in problem solvingPractical examples illustrating irrational problem solving in actionOverview of Irrational Problem Solving: Challenging the Dominance of Rational Numbers and LogicDefining Irrational Problem Solving Versus Rational Problem SolvingAt its core, irrational problem solving contrasts with rational problem solving by relaxing rigid adherence to narrow logic and embracing diverse, sometimes counterintuitive approaches. While rational approaches focus on linear, replicable steps often grounded in mathematical logic and rational numbers, irrational methods encourage experimentation, narrative formation, and leveraging subjective human experience.This approach recognises that many real-world challenges are complex systems not wholly capturable by formulas, irrational equations, or single right answers. Instead, solutions emerge from trial, error, context reshaping, and sometimes 'irrational' leaps that traditional logic might dismiss as irrelevant or inefficient.Interestingly, the willingness to experiment with unconventional thinking is also shaping how emerging technologies are influencing the workforce. For example, the rise of AI is prompting young tech professionals to rethink traditional career paths and adapt to new, sometimes unexpected, opportunities. You can explore how these shifts are unfolding in this analysis of AI’s impact on job opportunities for young tech workers.Why Rational Numbers and Logical Models Often Limit SolutionsRational modelling typically aggregates individuals into averages using rational numbers, producing solutions geared to the 'typical' case. However, as Rory Sutherland highlights, designing for the average often delivers solutions that please no one because the unique extremes—the early adopters, the niche markets—are overlooked. This logic paradigm narrows your solution landscape, often to the point where no truly novel answer exists.Further, strict logical frameworks tend to exclude 'magic'—the psychological and perceptual nuances that profoundly influence human behaviour. Without considering these, logical problem-solving risks missing the powerful influence of context, expectation, and narrative that create real value and engagement.“If a problem is persistent, it’s fairly likely that the reason for its persistence is that it’s logic proof.” — Rory Sutherland, of Ogilvy & MatherRule 1 to 3: Breaking Free from Conventional Logic and Average-Based ModelsRule 1: Embracing Multiple Good Ideas Beyond a Single Rational AnswerConventional logic often insists on one 'right' solution—the single best answer derived from data and algorithmic reasoning. Rory Sutherland cautions against this mindset, noting that embracing the possibility of multiple valid solutions opens innovation avenues. For instance, in business, multiple competing good ideas may coexist; limiting yourself to only one risks missing creative, unexpected gains.This multiplicity allows for flexibility in action and can expose hidden opportunities where others see only a narrow path. In practice, this could mean challenging popular wisdom, testing alternative business models, or valuing subjective inputs alongside objective metrics to solve persistent issues.Rule 2: Avoid Designing for the Average — Focus on Extremes to InnovateDesigning products or solutions around an average user profile sounds logical but usually leads to bland or ineffective outcomes. Instead, targeting the extremes—unusual or niche consumers—can catalyse innovation that later diffuses into mainstream adoption.For example, Rory Sutherland points out that average-focused models create dead ends, while notable success often comes from embracing the needs and desires of minority groups first. This strategy reveals unmet needs and uncovers unique user experiences that conventional averaged approaches miss entirely.Rule 3: Why Being Logical Like Everyone Else Leads to Predictability and MediocrityWhen everyone follows the logic that seems most correct, markets and strategies converge, resulting in increased competition and diminished returns. Rory Sutherland highlights strategic predictability as a fatal flaw in military and business contexts — being logical equates to being expected.The antidote is to identify where competitors’ logic is narrow or flawed and exploit these gaps. For instance, by choosing an unconventional commuting route via rail stations rather than the overcrowded tube, property buyers can find superior value. The same principle applies in business: logical conformity typically confines growth, while calculated irrationality can unlock differentiation.Rule 4 to 6: Harnessing Perception, Context, and the Magic Beyond LogicRule 4: How Expectations Shape Experience — The Psychology Behind PerceptionExperience is as much shaped by personal expectation as by the objective qualities of a product or service. Rory Sutherland shares the example of a former East Berlin hotel that, despite Spartan conditions, offered some guests an unforgettable experience because it aligned perfectly with their anticipated 'cool East Berlin' aesthetic.This rule underscores that altering customer expectations and perceptions can transform experiences without changing the physical product. Understanding and managing this psychological tension offers marketers and businesses a potent lever to create value perceived as ‘magical’ by consumers.Rule 5: The Power of Costly Displays in Advertising and CommunicationCostly, extravagant displays are often dismissed as inefficient in advertising. Yet, as Rory Sutherland explains, such costly signals—like deluxe wedding invitations or lavish marketing campaigns—convey value through their very extravagance and perceived sincerity.Modern marketing’s obsession with cost efficiency overlooks how expense can itself be a powerful communicator. This helps to build emotional engagement and trust that more ‘rational’ approaches struggle to replicate, showing that effectiveness and efficiency are fundamentally different goals.Rule 6: Why Logic Kills Magic and How Subjectivity Drives Value CreationLogic demands a single right answer and excludes 'magic' or emotional resonance. Rory Sutherland emphasises that context and subjectivity are marketing’s super weapons, enabling companies like Apple to create immense value through perceptions rather than just objective improvements."Context is a marketing super weapon, and it works because it works magically," he says. Businesses ignoring this are trapped in an objective-only mindset, ultimately limiting their appeal and innovation potential.“Context is a marketing super weapon, and it works because it works magically.” — Rory Sutherland, of Ogilvy & MatherRule 7 to 9: Embracing Scientific Flexibility, Counterintuitive Testing, and Diverse ToolsRule 7: Good Guesses and Empirical Observation as Valid Scientific MethodsScientific progress is frequently non-linear and uncertain. Rory Sutherland highlights philosopher Paul Feyerabend’s notion of 'anything goes' methodology that values empirical observation and good guesses—even when they defy conventional scientific rigour. This encourages organisations to embrace serendipity and experimentation over strict adherence to formal logic.Allowing for random, accidental discoveries increases the pool of potential solutions, moving beyond the sterile confines of rigid rationalism and enabling more robust innovation.Rule 8: Testing Counterintuitive Ideas to Gain Sustainable Competitive AdvantageMost competitors shy away from 'bonkers' ideas due to risk aversion. However, Rory Sutherland points out that creating a safe space to test seemingly irrational concepts can unlock unique advantages. Businesses can benefit enormously from daring small, unconventional experiments that incumbents avoid.This strategy not only diversifies approaches but also creates a barrier to entry, as others lack the appetite to explore these risky territories, ultimately making such innovations sustainably competitive.Rule 9: Rationality Is One Tool Among Many — Avoid Overreliance on Economic IncentivesRational incentives like fines or bribes often fail to fully explain human motivation. Rory Sutherland draws an analogy between rationality and playing golf with just one club—valuable but incomplete. Human behaviour is influenced by myriad non-economic factors such as habits, identity, and social context.Effective problem solving demands deploying a broad set of tools, including emotional appeals, narratives, and social signalling, rather than relying solely on narrow economic levers.Rule 10 and Beyond: The Power of Trivial Changes and Open-Mindedness in Problem SolvingRule 10: Small, Trivial Interventions Can Have Disproportionate EffectsComplex systems often exhibit non-linear behaviours where tiny changes create large impacts—a butterfly effect. Rory Sutherland emphasises that trivial tweaks, like minor script adjustments in a call centre, can widen bottlenecks more than massive interventions.This defies the conventional economic belief in proportionality and invites leaders to embrace small, precise changes as potent tools for transformation in business and policy.Rule 11: Don’t Limit Yourself to Ten Rules — Be Open to Irrational SolutionsRigid boundaries limit creativity. Rory Sutherland suggests not confining yourself to predefined rules but instead maintaining open-mindedness to explore unpredictable avenues. Persistent problems, he argues, often resist logical solutions because they require fundamentally different perspectives or irrational methods.Embracing this mindset can break deadlocks in governance, business strategy, and innovation where traditional thinking has stalled progress.Rule 12: Asking ‘Stupid’ Questions to Unlock New PerspectivesSometimes, the key to breakthrough innovation lies in asking questions others avoid for fear of sounding foolish. Rory Sutherland gives the example of questioning why people dislike standing on commuter trains—a question often overlooked but loaded with insights.This approach challenges assumptions and prompts redesign of choices and contexts to reduce regret and improve user satisfaction by reframing what seem like compromises into preferred decisions.“If there were already a logical answer, we would have already found it.” — Rory Sutherland, of Ogilvy & MatherCase Study: Redesigning Train Carriages to Reframe Standing as a Positive ChoiceUnderstanding Commuter Psychology and Adaptive Preference FormationRory Sutherland’s train carriage example highlights how standing on short commuter journeys is disliked partly because standing passengers receive fewer benefits and must expend mental effort to balance and avoid embarrassment. This discomfort arises not merely from physical tiredness but from context and perception.However, human psychology includes adaptive preference formation, where people adjust their preferences to minimise regret depending on how options are framed. By reframing standing not as forced compromise but as a deliberate choice with unique perks, satisfaction improves significantly.Applying Alchemy in Design to Create Value from PerceptionDesigning train carriages to reflect this insight—by providing standing passengers with small desks, view-friendly positions, or charging points—can reconstruct the narrative and perceptions, turning a negative into a positive experience. This creates new value without the need for costly physical infrastructure overhauls, showcasing an alchemical transformation of experience through irrational problem solving.AspectTraditional DesignIrrational Design ApproachSeating ArrangementAll seats facing forwards with limited standing comfortMixed seating and standing areas with dedicated comfort options for standeesPassenger ExperienceStandees feel neglected, discomfort and boredomStandees receive amenities like cup holders, view access, and charging pointsPsychological FramingStanding seen as compromise or failureStanding framed as positive choice with unique benefitsOutcomeUser dissatisfaction, complaints, persistent discomfortImproved satisfaction, reduced regret, and better perceived valuePeople Also Ask (PAA): Addressing Common Questions on Irrational Problem SolvingWhat is an example of an irrational solution?An example is redesigning train carriages to make standing a choice with perks, rather than a forced compromise, illustrating how irrational problem solving can complement rational equations in design. This reframing relies on psychological insights, not pure logic, to improve commuter satisfaction.What are irrational numbers in GCSE?Irrational numbers, studied in GCSE maths, are numbers that cannot be expressed as simple fractions, such as the famous irrational numbers √2 or π, characterized by endless non-repeating decimals. They contrast with rational numbers which are exact fractions.What is the meaning of rational problem solving?Rational problem solving uses logical, step-by-step analysis grounded in objective data and rational numbers to find optimal solutions, typically seeking a single best answer based on models and calculations.How to know if solutions are rational or irrational?Rational solutions follow logical reasoning and measurable evidence based on rational numbers, whereas irrational solutions incorporate subjective context, perception, and sometimes counterintuitive or unorthodox methods that defy strict logic.Key Takeaways: Embracing Irrational Problem Solving for Breakthrough InnovationConventional logic often limits solution sets and innovation.Irrational problem solving embraces multiple perspectives and subjective context.Small, counterintuitive, or trivial changes can yield outsized results.Being open-minded and willing to ask unconventional questions is essential.Expert insights highlight the importance of narrative and perception in value creation.Conclusion: Moving Beyond Rational Numbers to Unlock Creative Problem SolvingSummary of the Importance of Irrational Problem Solving in Business and PolicyTo overcome persistent challenges, local business owners and leaders must expand their toolkit beyond strict logic and traditional rational problem solving. Embracing irrational problem solving enables innovative breakthroughs by leveraging perception, narrative, and sometimes seemingly trivial interventions to unlock new value and competitive advantage.Final Expert Quote Reinforcing the Value of Irrational ApproachesRory Sutherland, of Ogilvy & Mather, reminds us, “If there were already a logical answer, we would have already found it.” This insight encourages boldness in adopting unconventional, creative strategies for complex problems.If you’re inspired to push the boundaries of traditional thinking, consider how broader trends—like the integration of artificial intelligence—are reshaping not just business models but the very nature of work and innovation. Delving into the evolving landscape of technology and employment can offer fresh perspectives on how to future-proof your strategies and stay ahead of the curve. For a deeper dive into these transformative shifts, discover the broader implications in how AI is shaping job opportunities for young tech workers and what it means for forward-thinking leaders.Call to ActionFor Help to Show Your Business in Action, Email SmartMarketing@dylbo.comSources: https://example.comExploring the concept of irrational problem solving can provide valuable insights into alternative approaches to overcoming persistent challenges. For a deeper understanding, consider the following resources:“Lateral thinking”: This article delves into the concept of lateral thinking, a method of problem-solving that involves approaching issues from new and unconventional angles, often leading to innovative solutions. (en.wikipedia.org)“Creative problem-solving”: This resource explores the mental process of searching for original and previously unknown solutions to problems, emphasizing the importance of creativity in developing effective strategies. (en.wikipedia.org)If you’re interested in expanding your problem-solving toolkit beyond traditional logic, these resources offer valuable perspectives on embracing creativity and unconventional thinking.

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