Why It’s Worth It | What if we could learn to see the silver lining in every setback or loss in life? Instead of being overwhelmed by hurt or blindsided by unexpected events, what if we could train ourselves to see opportunity everywhere? Not only would this mitigate how we experience loss, but we would also gain the chance to shape where we are headed.

In this episode of Choiceology, Katy Milkman explores the concept of finding opportunities in perceived “bad” outcomes. As usual, Katy kicks off with a fascinating story. This one centers on the serendipitous discovery of Perkin’s Purple — the first commercially successful synthetic organic dye, mauveine, discovered by Sir William Henry Perkin in 1856 when he was 18 years old (obviously long before he attained knighthood).

Henry Perkin was a chemist (he started college at 15!) who tried to chemically synthesize quinine, a natural substance used to treat malaria, which was expensive and in short supply. While attempting to extract by-products of coal tar, he accidentally created a shockingly vibrant purple liquid instead of a colorless one.

Despite the unexpected result, Henry saw an opportunity where most people would have seen failure. Instead of discarding the dark liquid and starting over, he pursued his discovery, laying the foundation for an entirely new synthetic chemical industry that revolutionized fashion and housewares. 

We have all experienced moments when something we thought we wanted – a job, loved ones, or even our health – suddenly disappears, seemingly leaving us stranded on one side of a chasm. However, if we can learn to see “the Purple,” unexpected turns can be smoother and transform our lives for the better. Part of seeing the Purple comes from exploring and experimenting more with our lives. This self-examination can help us identify where we are stuck and optimize silver linings that present themselves (or a vibrant purple in Perkin’s case!).

Background | In a conversation with organizational psychologist Adam Grant and decision strategist Annie Duke, Katy expands on the lesson from Perkin’s Purple. Adam discusses missed opportunities and how being forced to try something we otherwise wouldn’t do can sometimes be a good thing. Annie focuses on the benefits of forced and voluntary quitting to explore another path and how our tendency to stay put and not explore new paths holds us back from many untapped opportunities. Some key takeaways from the episode include:

• The scope of Perkin’s discovery – The discovery of mauveine not only opened up a new world of color and dyes for fashion and housewares (think pinks, reds, browns, greens, yellows), it also led to the discovery of saccharin, chemicals used in chemotherapy, and the artificial musk used in perfumes. Quinine was synthesized nearly a century later, but not from coal tar. If Perkin had stayed focused on that task, he would have spent his life in fruitless pursuit.
• Forced quitting has a silver lining – Many of us tend to stick to our plans too rigidly and don’t explore enough in life. So, when something happens that forces us to change paths (referred to by Annie as “forced quitting”), we react by holding onto what we know. Interestingly, there is a small percentage of people who embrace forced quitting and try to find the positive side of loss. This group is more likely to experiment more, try new things, move to new places, start new careers, find new partners, or discover better opportunities.
• Biases keep us stuck – Several common biases keep us from making voluntary change, including escalation of commitment (the sunk cost concept) and internal and external validity (our identities come from how we see ourselves and how we think others see us). 
• The endowment effect – It is difficult to let go of our self-image if we see ourselves as a certain type of person (such as a teacher, slacker, doctor, or athlete). We may hesitate to question the decisions that led us to where we are because it feels like we’re abandoning a part of ourselves. These decisions become like possessions we own, making them hard to let go of.
• Set up a decision tree before taking on a new venture – People who try decision analysis in the middle of a problem tend to perform poorly. It’s just tough to see the best way forward when you’re already in the thick of things. For example, many people who attempt to climb Mount Everest can’t reverse course when the evidence is clear that they should, and end up dying while trying to ascend. Before committing to something new, learn to build in “checkpoints” and think through potential pivots or places to voluntarily quit if needed. 
• Use exploration to change your life – Many of us tend to hold back from exploring new opportunities because we fear failing. We set the bar too high to make a change, and as a result, we miss out on new opportunities. Annie suggests that we should regularly disrupt ourselves and ask essential questions about who we are, what we want, and where we are headed. This reflection is a powerful tool to discover new paths and positively change our lives.

Source | Choiceology podcast:  “Silver Linings” – Season 7, Episode 5 (October 10, 2022)

About | Katy Milkman is a behavioral scientist, Wharton professor, national bestselling author, and host of Choiceology, a Charles Schwab original podcast that melds conversations about science, research, and human quirks to help us make better decisions and avoid costly mistakes. She also produces an insightful free newsletter, Milkman Delivers (sign up on her website!).Katy believes the key to changing ourselves for good lies in better understanding the internal obstacles that hold us back.