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Tag Archives: negotiation

Negotiate from Needs, not Positions

24 Saturday Mar 2018

Posted by petersironwood in America, psychology, Uncategorized

≈ 1 Comment

Tags

competition, cooperation, innovation, negotiation, pattern language, politics, problem solving, teamwork

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Negotiate from Needs, not Positions

Prolog/Acknowledgement: 

So long as I can recall, I’ve seen negotiation as an arena for creativity, but most people don’t like to play that way so I was very happy to learn about the Harvard Negotiation Project. When I was Executive Director of the NYNEX AI lab, Beth Adelson developed a short course in negotiation based on the Harvard Negotiation Project. (That project later evolved into the Project on Negotiation).

I have been struggling with a recurrent issue in writing these Patterns. The issue nearly every time is separating the “Problem” from the “Context.” In the format that I’ve been trying to use consistently, the “Problem” comes first and then the context. But in attempting to tell a compelling story, I typically find myself needing to say at least something about the context early on in order for the reader (or at least my mental representation of the reader) to make sense of why the problem arises. I had thought that Christopher Alexander might finesse the issue because people are typically already familiar with towns, cities, buildings etc. and because he uses an evocative image to remind people of the context. It generally seems much more difficult to point unambiguously to a social situation with a picture. I returned to A Pattern Language in order to find out how CA and his team handled this issue. Well, it turns out, A Pattern Language does not make anything like these separate categories! Patterns typically begin with a lead-in which contextualizes the problem. I think the format I was trying to use might work for the Object-Oriented Programming Language community because, in a sense, programming solutions are typically themselves decontextualized. Having separate and well-defined sections also helps someone using a Pattern Language navigate to a specific point. However, it may damage the logical and compelling presentation of the idea to begin with. This provides something of a puzzle, but for now, I am going to try to follow the spirit of CA’s original Pattern Languages for a time and thought I will attempt to keep separate sections, I will put Context before Problem.

The following Pattern is especially relevant today because as of this writing, there seem to be an increasing number of “leaders” in the world who are presuming that negotiating by positions is the only way to go and every negotiation leads to winners and losers. 

https://en.wikipedia.org/wiki/Harvard_Negotiation_Project

Author, reviewer and revision dates: 

Created by John C. Thomas March 15-24, 2018

Abstract: 

Especially in highly competitive societies, it is common to view negotiation in terms of a zero sum game. In this view, a “good negotiator” is someone who gets more of what they want at the expense of the other person. Instead of assuming that everyone else is just like us in every way and therefore wants the same exact things as we do, one might explore a more open problem solving space by finding out what the other person actually wants and discovering what you really want. Put another way, each negotiator might put on the table what their actual needs are rather than simply their position about one or a few things. Often both (or all) sides can work together to creatively construct a solution that satisfies the needs of all parties. If parties to a negotiation view each issue as unidimensional, monotonic, and independent, it tends to induce a competitive frame of mind. If parties to a negotiation instead view issues together in multiple dimensions, it is often possible to induce a problem solving frame of mind and all parties end up better off in terms of meeting their real needs. In addition, negotiating in this way tends to increase mutual trust and cooperation over time.

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Context: 

Complex problems can often only be solved by groups. Typically, really large scale groups are not homogeneous but have subgroups within them. This works at many levels of scale. For example, the world as a whole needs to solve the problems of climate change and pollution. Yet, it seems it would be efficient to implement some solutions on a country by country basis. But the countries will then tend to argue about how much is “their share” of the solution. Or, a nation needs to improve its solar energy research program. But some states will fight over where research money is invested. Others will argue all that money should go to oil and coal. There may be negotiation between son and father about how long to walk the dog. In every case of negotiation, there is both some sort of common goal and some difference of opinion about how to get there. In the case of Labor and Management, for instance, both want to avoid a strike. In the case of the countries, all the countries presumably want to have a livable planet for their descendants.

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There is another habit of work common at least in my cultural context (American business) that plays into typical negotiations. When people of many industries organize meetings, a key part of that organization is the agenda – the linear list of topics to be addressed. When applied to negotiations, this is translated into a list of individual issues that need to be addressed. The implication is that they are to be addressed one by one. An important underlying assumption is if the best solution is found on every issue, then we will also find the best solution overall. This is not necessarily so, but it is a common default way of addressing issues: one by one.

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My own cultural experience of contemporary America is that it is insanely competitive. Competition has its place. Personally, I love competition in sports and games. My first book is titled, The Winning Weekend Warrior. It deals with strategy, tactics, and the mental game as applied to all sports. It also points out that this competition only “works” because people agree on a framework of competition and stick to that framework. Sportsmanship is fundamental to good competition. But I call out my current society as insanely competitive because we now apply it to nearly every human activity. You can turn on TV and not only find competitions in basketball, soccer, and tennis (which make sense) but also for activities which have historically been cooperative, enjoyable fun such as singing, dancing, cooking, and even dating! It has come to apply particularly to politics. There is almost no cooperative attempt to identify and solve important national issues. It is all a question of ratings, polls, press coverage, donation dollars and votes. This competitive mindset is then reinforced when people negotiate according to positions. Not only are such negotiations unlikely to yield any creative solutions, they encourage viewing the “other” in the negotiations as “the enemy” or even something sub-human. While competitive athletics at least works within an agreement about rules and procedures, in politics, there seems no longer to be any agreement about what is appropriate.

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Problem:

Especially in competitive societies, it’s easy to fall into the trap of viewing every negotiation as a contest with winners and losers. Labor, e.g.,  says they must have at least 20$/hour to prevent a strike and management says they can’t possibly afford more than 10$/hour to avoid bankruptcy. Of course, these are not necessarily true statements. Privately, labor may know that their membership would settle for 15$/hour. Privately, management might know that they could pay 30$/hour and not go bankrupt – but that would require cutting executive bonuses and dividends. So, here, in a nutshell is the situation. Two parties are both being dishonest and yet, they are relying on the other to solve a problem that requires trust.

Not only are the parties unlikely to end up even close to the “best” solution. Hard feelings and mistrust are likely to spill over into the work itself or any implementation of the solution. If either side feels “betrayed” they will be even more “hard-nosed” in the next negotiation. In some cases, the parties will no longer work together for their common good. Instead, there will be at various levels such effects as war between nations, secession and civil war, riots among citizens who feel unfairly disadvantages, or divorce between two people who fight to win – about what should be honest, mutual problem solving.

Forces:

  • Groups of groups must sometimes work together to achieve common goals.
  • Subgroups may disagree with each other about the best use of resources to achieve those common goals.
  • Honesty on every side and mutual trust is most effective and efficient in solving problems and implementing solutions.
  • When negotiating on the basis of positions, negotiation becomes viewed as a zero sum game.
  • In a zero sum game, it can work to your advantage to be dishonest.

* Negotiations that always treat every issue independently cannot always converge on the best solutions.

  • Zero sum games induce a highly competitive mindset.
  • Negotiating from real needs tends to induce a cooperative mindset.
  • Negotiating from real needs tends to increase trust.

* Higher levels of mutual trust lead to better outcomes and more pleasant experiences for all stakeholders.

Solution:

When it is necessary to negotiation among two or more sub-groups within a larger group, negotiate from actual needs not positions. Work together to discover the best solutions for the larger groups while minimizing undue pain for any one subgroup.

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Examples: 

1. A quintessential example used in the Harvard Negotiation Project is the story of the two sisters. They spied a lemon in the kitchen and both went for it at the same time. Each said they wanted the lemon. Eventually, the grudgingly cut the lemon in two. In this way, it would seem that they had reached a “fair” solution in that each one had met the other half-way. It turned out, however, that one of the sisters actually wanted the lemon peel for a cake recipe while her sister wanted to drink the juice of the lemon. It turned out they could have each had 100% of what they wanted. Perhaps they could have even planted a lemon tree from the seeds as well.

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2. Two countries are each trying to achieve more economic prosperity for its citizens. Some countries have relative advantages in the production of some goods and services over others; e.g., because of differences in natural resources, availability of necessary labor and expertise, cultural resonance with the required activity, or existing infrastructure. It makes much more sense for some countries to specialize in some rather than all goods and services. Over time, these differential advantages change. At one time, for instance, India and China, among others, had a huge advantage in terms of cheap labor but relatively less advantage in science and engineering expertise compared with, say, the United States. Labor costs in India and China are now higher (though still much less than in the US) while expertise in science and technology has skyrocketed. In any case, the US government has now decided to embark on a “trade war” with one of our most productive trading partners. In this case, the results will probably be bad for everyone except for a few very wealthy American executives who might make more money in the short term.

Instead, negotiators from China and the United States could get together and identify a number of issues that could be better solved by having the United States and China work together. As one example, as China becomes more proficient in science and engineering, they may find it increasingly in their interest to promote a more universal and more enforceable way to deal with intellectual property. As automation, robotics, and AI become more capable of replacing more jobs in both countries, they could work together on how to avoid massive unemployment. They could work together to define specific areas of scientific and engineering cooperation; e.g., how to provide clean water, how to slow and reverse climate change, how to ameliorate its effects, how to develop and share best practices in managing emergencies such as earthquakes or large fires. It’s infantile to imagine that there are a finite number of jobs available which must be apportioned between the US and China so that every job is either “given” to one party of the other.

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3. Joe and Suzi are New Yorkers who are already sick of the hot, hazy, humid weather in early July and they decide it’s time for planning a vacation for late August. Joe wants to take a vacation to Orlando while his wife Suzi wants to go to Aspen. These are their initial positions. If each “insists” on getting their way, there are several options that seem “fair.” They could flip a coin. They could agree to alternate vacations between the two places and flip a coin to decide which one “wins” first. They could find a place half-way between. In this case, that might be Little Rock, Arkansas. They could arm wrestle over it. Of course, they might want their own vacation site so much that they agree to take separate vacations.  There are options available but they are limited. Joe has no idea why Suzi wants to go to Aspen and he may not even be fully aware of why he wants to go to Orlando. He just remembers having a good time there as a Columbia college student on winter break. Suzi, for her part, has no idea why Joe wants to go to Orlando and may not even be fully aware of why she wants to go to Aspen. She remembers going to a design conference there about 15 years ago and she had a really good time and loving seeing the mountains in the background.

If Joe and Suzi are willing to trust each other and jointly figure out what they both want from a vacation, the space of possibilities for meeting their needs expands tremendously. As it turns out, Joe loves to bake in the sun. He likes to swim in the ocean. He likes to look for pretty rocks and shells. He likes to run along the beach. He likes to watch women in bikinis walk by. In college, he got uproariously drunk, but he has no such desire now. Suzi, for her part, enjoyed the design conference, more than Aspen. It was fun to meet new people doing interesting design projects.  She did enjoy a bit of some cross-country skiing and the way it got her heart racing. She also recalls that the town itself had pretty flowers and buildings.

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Once both parties become aware of their needs and wants rather than their positions, several things become clear to them as a team. First of all, when Joe went to Orlando as college student in the winter, he was getting away from the cold and lying on the beach in the sun seemed great. Now, it’s late August and hot. Orlando will only be hotter. Suzi will not be doing any cross-country skiing in Aspen in late August. More importantly, the Aspen Design conference is in the Spring. With more mutual planning and problem solving, they discover that San Diego has a design conference during their vacation time frame. They can drive into the mountains in an hour and there are plenty of beaches for Joe. Running along the beach, renting bikes, playing beach volleyball, or playing tennis could be pleasurable exercise. San Diego has plenty of flowers and nice looking houses. The climate is much more temperate than that of New York City. San Diego provides a much better “solution” to their needs than does Little Rock (which would be even more hot and humid than New York City in August and actually provide almost none of the desires for either Joe or Suzi). In their research about San Diego, they may discover things that they both want to do that they had not even thought about when their thinking was limited to trying to recreate something from their past. For instance, they may both want to visit the San Diego Zoo.

It might seem contrived to the reader that two adults might stick stubbornly to a preconceived “position” rather than attempt a mutual problem solving activity. In my experience, it isn’t the least bit contrived. As I mentioned earlier, this is precisely the kind of stance the American government seems determined to take toward negotiations.

4. To return to the Labor and Management example, this may seem to be one case where “positional” negotiation makes sense. After all, every penny management pays to workers means less pay for executives and stockholders. Even here, it is extremely likely that this is not really the case. A large company, for instance, will have much more leverage in providing affordable health care than will the individual workers. So, a dollar less in salary might mean $.50 goes to management and stockholders but another $.50 goes to health care that will actually save the employees $1.50 in healthcare costs.  While the employees say they want higher wages, what they really want might be worried about is paying their mortgage and sending their kids to college. Money is one way to help make that happen. But there could be other ways to help that might be much cheaper for the company. A large company, for instance, could put its considerable political pull behind cheaper government college loans, debt forgiveness or universal, government-sponsored 2 year degrees for everyone. Perhaps under certain conditions, they would co-sponsor housing loans. Another part of why workers might want more money is that, in our society, a person’s “worth” is erroneously equated with their financial worth. Workers might be willing to trade some dollars of salary for earned respect. In far too many companies, management may have very little or very limited perspective on how the work is actually done, instead relying on abstract and greatly over-simplified flow charts. Management issues orders to workers and workers are expected to follow those orders, however stupid they are in practice. Instead, workers and management together could identify and solve problems, agree on metrics of improvement, measure those improvements, engage in general profit-sharing and provide bonuses to workers who help identify and implement improvements.

Many studies also indicate that workers often produce more net in a 30 hour week than in a 60 hour week because the 60 hour week causes fatigue, burn-out, costly errors and accidents, work stoppages, and turnover. For some businesses and workers, four ten-hour days might improve the quality of life for workers at the same time that it reduced costs for the employers. The general point is this: No matter how “obvious” the unidimensional nature of a negotiation is, that obviousness is almost invariably an illusion.

Resulting Context:

Once people participate in joint problem solving to identify and agree upon ways to satisfy people’s needs rather than compromise on initial positions, they will be more likely to trust each other in future negotiations as well.  Furthermore, they will behave more cooperatively and civilly to each other between negotiations as well.

Related Patterns: 

Reality Check, Small Successes Early, Build from Common Ground.

Metaphors: 

In nature, competition certainly exists. But so does cooperation. Even when competition is “life and death” it is almost never treated as monotonic. A hungry fox will eat a rabbit. That’s nice for the fox but not so nice for the rabbit. Or, the rabbit gets away which is not so great for the fox. But the foxes do not “decide” that their hunger is due to rabbits and they are now going to set out to destroy every last one of them so they’ll never be hungry again. Clearly, if the foxes “succeeded” they would be full for a while — and then they would all starve to death. Foxes seem smart enough to intuit this. With humans, the jury is still out.

References: 

https://en.wikipedia.org/wiki/Program_on_Negotiation

https://en.wikipedia.org/wiki/The_Evolution_of_Cooperation

https://en.wikipedia.org/wiki/Finite_and_Infinite_Games

Thomas, J. C. (2017). Building Common Ground in a Wildly Webbed World: A Pattern Language Approach. PPDD Workshop, 5/25/2017, San Diego, CA.

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https://www.amazon.com/author/truthtable

Resolution: Create!

26 Sunday Nov 2017

Posted by petersironwood in America, psychology, Uncategorized

≈ 2 Comments

Tags

advertising, competition, creativity, innovation, issue resolution, negotiation, politics

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When most of us think of the word “Create” we tend to associate it with particular pursuits and professions; e.g., artist, writer, actor, scientist, engineer, photographer, choreographer or chef. However, every single human being — indeed, every living thing must be “creative.” To live is to create. It is not something relegated to particular human professions or past-times. In particular, when you and someone else disagree, instead of hunkering down into a straight-laced no-holds barred negotiation about who gets the biggest slice of a given pie, there is an alternative. That alternative is to dig into that natural creative streak that you have — and that the person you are disagreeing with has — and to create!

Let’s take a simple example. A good metaphor for life, as we know from Forrest Gump, is a box of chocolates. Let’s say there is only one box of chocolates. I want the chocolates. You want the chocolates. What to do? As you already know (but have not yet forgotten) if you are a kid, there are some simple standard ways to deal with such a situation.

You could use a game of luck or a game of skill to determine who gets the box of chocolates. We could split the box in two. If there are 64 chocolates, you get 32 and I get 32. Of course, since I am not a kid, but an adult who is “skilled” in zero-sum game negotiations, I might not settle for just 32. I’ll feel as though I’ve lost by only getting half. I’ll likely hire a lawyer. Which will tend to induce you to hire a lawyer as well. We may go to court and the judge will award 40 chocolates to me and only 24 to you. Victory for me! Of course, I will now have to pay my lawyer 20 chocolates so I only end up with 20 instead of 32, but I’m still better off that you! You have to pay your lawyer 20 chocolates and you end up with only 4! Loser! You won’t be very happy with this outcome so you may appeal to a higher court. In the end, I will be lucky to end up with ONE chocolate, but hey, if you have zero chocolates, I can still call myself a “winner.” Yeah. That’s the “adult” way. Remember those days when you were just a silly little kid and you would have ended up with a mere 32?

Instead of using our adult knowledge and intelligence to end up with less than a naive kid, we could use our adult knowledge and intelligence to end up with more. Here’s one simple way. Typically, all chocolates are not the same. I actually only like solid chocolates with nuts. I prefer dark chocolate, but milk chocolate with nuts is okay too. I don’t even really like the ones with caramel or creamy fillings. I would rather have all ten with nuts than five with nuts and 27 with fillings. If it turns out that you like the ones with fillings better than or equally to the nutty ones, we will both be better off by taking these preferences into account. Of course, it might turn out that both of us hate the creamy ones and love only the nut-filled chocolates. In this case, we have to find a way to split the nut ones and forget about the rest. Right?

Wrong! Of course not. Although it is really greed that makes you blind, in reality, the world does not begin and end with you, me, and a box of chocolates. We could find a third party who loves creamy chocolates; get them to pay us for those and go buy some chocolates with the money — the yummy crunchy chocolates with nuts that we both love. If we play our cards right, we could each end up with 32 nut-filled chocolates. We could each end up with even more if we find someone who really really loves the creamy ones.

Once you relinquish your greed-filtered view of the world, you will see that there is much more to the world than you, me, and chocolate. While it’s true that I really do love chocolate covered nuts, I am in the process of losing weight so even the chocolate covered ones that I love are a kind of double-edged sword. I might find some way to trade my share of the chocolates for something that I value even more. For instance, I might trade my presumptive half of the chocolates for ten apples since you have a surfeit of apples and don’t really like them. Or, since my tangerine tree is still going strong, I might take your half of the chocolates and give you ten seedless tangerines. These are actually, now that I think about it, even better than chocolates. Each seedless tangerine offers the pleasure of how it feels, how it smells, the activity of peeling it, the knowledge comes to mind that the white slightly bitter material between the fleshy segments is filled with rutin which is an important nutrient though the word is apparently not in the spell-checker. When you eat a tangerine, you get to break it into segments. This in itself is a satisfying process. If a friend happens by, you can have the pleasure of offering them a tangerine as well. If you happen to leave one of those tangerines in a sunny car for a few minutes, it will not be ruined. Nor will your car upholstery.

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But wait. There’s more! The world as it is, plus the world of my imagination, plus the world of your imagination, plus the emergent world of our collective imagination extends beyond even a world of you, me, chocolates, apples, and tangerines. You might actually not like tangerines, but you could learn from me how to like them, provided you are open to it. It might turn out that the only reason you currently dislike tangerines is that you tried some very small seedy ones when you were a kid. You found them bothersome to peel and deseed with your clumsy five-year old fingers. Then, when you got your hands all sticky, you sticky-fied your mom’s fine tablecloth at the Holiday dinner. She yelled at you in front of the whole family and now you hate tangerines. It’s not your fault. It’s not your fault. It’s not your fault! Nor is it the fault of tangerines in general. Really. These tangerines in the here and now are not those tangerines at all. My tangerines are large, juicy, seedless, and easy to peel. Your fingers are likely far less clumsy than they were at five. Your mom is not here to yell at you for getting your fingers sticky. So, what you could learn from me about the joys of tangerines and the more general fact that you yourself are limiting your current pleasure in life based on a gross over-generalization of specific childhood experiences — that, my friend, is a lot more valuable than a box of chocolates.

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I might similarly be currently disinclined to see the value in ten of your apples because I had a bad experience with apples once. Perhaps it was one of those apples that looks all fresh and shiny in the store but once home, one bite tells you this apple is yucky, granular and brown inside. Quite possibly it got frozen in transport or terribly bruised. If you like apples, you can teach me to like apples (again). You and I might even decide to chuck the whole box of chocolates, trading it for money to buy more fruit, or even sending it jointly as a gift to a family for whom a box of chocolates would be far more meaningful than it would be to either of us. The gift of good feelings that we would get by being generous to others could totally outweigh the pleasure of 32 chocolates.

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We could take that box of 64 chocolates into the kitchen and so some joint experimenting in terms of a culinary challenge. It might work like this. We take turns choosing one chocolate either by the index (which any chocolatier who is not devil’s spawn will provide) or by appearance alone. Let’s say we flip and let me go first. I choose a chocolate and my challenge is to find something in the kitchen that will enhance the flavor or at least give it an interesting and different context. So, I pick a solid dark chocolate piece. I toast a piece of Dave’s Killer Bread and split it in two. I spread Laura Scudder’s crunchy peanut butter on each half. I melt the chocolate and spread that on top. Now, we taste the result. How does the chocolate add (or detract) from the overall concoction? Would more chocolate make it better? More peanut butter? Should I have added cinnamon? The fun of this and the knowledge we gained and the resulting bonds of friendship could easily be far more valuable than the chocolates themselves. Who knows? Maybe we could go into business with a line of chocolates not meant to be eaten alone but to be used as accoutrements to numerous side-dishes. Our explorations could lead to guidelines about which kind of chocolate goes best with which kind of other ingredients.

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Alternatively, we could each take 32 random chocolates and make an advent calendar. Perhaps, each chocolate comes with a picture and story about one of the ingredients or an interesting story about it. When did people first make chocolate? Who? When did people first begin “refining” sugar? Who first boxed chocolate? Do you know the story of “Mother’s Day” by the way? What is the current thinking on the dietary impact of chocolate? Is it good for you? Bad for you? Both? We could turn a simple box of chocolate into a thoughtful and interesting gift of value far beyond the box of chocolates itself. Yeah, it would definitely be a lot of work to make this into a multi-dimensional gift. But it would also be a lot of fun. Who knows? We might even make a multi-million dollar business out of it.

There’s nothing particularly “special” about tangerines, apples, or chocolate in this regard. Anything of value can be made more valuable by the addition of other ingredients, contexts, knowledge, love, caring, gaming, and by changing your stance or attitude toward it. You can continue to negotiate like a little kid. That’s not horrible. At least you’ll get half a box of chocolate out of the deal (or a fair chance for the whole box). Or, you could negotiate like a “real winner” type A go-get-um up-and-coming ladder-climbing dynamo of flash and dazzle. You can then brag to your friends (if you have any) that you ended up with one chocolate while I ended up owing three chocolates. Yes, you could brag that you “won.” Congrats.

Your third alternative: approach every negotiation as an exercise in creativity and creation. Every party to a negotiation brings something to the table tangibly (or why are they there?). But beyond that, each party also brings their unique perspective, values, and life experiences. Working together, we could almost certainly create something of more value than what we are negotiating about. Despite my best efforts, you might just not like tangerines. But maybe you do like oranges. Why? I mean, why do you like oranges but not tangerines? We might discover something of great interest to tangerine growers or the advertisers for oranges. You might like creamy chocolates but you don’t like chocolates with nuts although you like both chocolates and nuts. Why? We might discover something of great interest to chocolatiers. Or, in the process of trying to discover why you don’t like chocolate covered nuts though you like both ingredients, we might discover something about what makes some people allergic to nuts or something about you. Every disagreement need not devolve into a zero-sum game unless you decide or believe that’s all there is. Instead, you could treat every disagreement as an opportunity to work together jointly and create value beyond what comes to the table.

As explained in “The Winning Weekend Warrior” sports are not zero sum games. If you take me on in tennis, one of us will “win” the match and one of us will “lose” the match. But the winning is but a small part of the overall value. I improve, hone, or broaden your skills and you do the same for mine (provided we are somewhat evenly matched). We are both exercising which means we are improving the body, mind, and spirit of each of us. True zero sum games are largely a fiction. More accurately, they are zero-sum only in terms of a very limited view of the context of your experience. Be creative! When there is an issue of disagreement, create!

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Comments welcome! My computer is deathly ill and this was created on a borrowed computer so it may take a while to respond, but I will respond to comments when I can.


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