It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so. And in business, we have built entire industries on things that just ain’t so.
The Scared Straight Illusion
In 1979, a program called Scared Straight made headlines. The concept was simple: take at-risk youth into prisons where hardened inmates would terrify them into staying out of trouble. The initial reports were stunning—participants did not reoffend within 90 days.
The program spread across the country. Schools adopted it. Politicians championed it. It became conventional wisdom that scaring kids straight worked.
There was just one problem: when researchers conducted rigorous analysis, they discovered the program was completely ineffective. In some cases, it actually increased reoffending rates.
As David Maples explores on The Buck Stops Here podcast, this pattern repeats constantly in business—compelling stories lead us to adopt practices that data would never support.
The Open Office Disaster
Open office floor plans became the default for modern companies. The promise was irresistible: tear down the walls, and collaboration will flourish. Communication will flow freely. Innovation will spark spontaneously.
Companies spent billions remodeling their spaces. And the results?
- Communication decreased by up to 70% according to Harvard Business Review research
- Productivity dropped as distractions multiplied
- Employee satisfaction plummeted
- Only 5-15% of workers actually prefer open layouts
The primary beneficiaries? Managers who liked the ability to monitor employees constantly. The open office was not about collaboration—it was about surveillance dressed up as innovation.
The Unlimited PTO Trap
Unlimited paid time off sounds like an employee dream. Take whatever vacation you need! We trust you!
The reality is darker. When companies implement unlimited PTO:
- Employees take approximately 50% less time off compared to defined vacation policies
- Workers check email during their limited vacations because there is no clear entitlement
- Companies save money while appearing employee-friendly
Unlimited PTO is often a cost-cutting measure disguised as a perk.
The Hidden 401(k) Robbery
Here is a practical example that affects real money: standard 401(k) plans carry load costs of 150+ basis points. Over a career, this costs employees $50,000 to $150,000 in retirement savings.
Lower-cost alternatives exist at 8-10 basis points. A few hours of research could create millions in additional employee wealth. But most companies never look because their current plan is “good enough.”
Where Misinformation Comes From
Three primary sources feed business misinformation:
- Anecdotal stories: Personal narratives are compelling but often lack supporting evidence
- Social media: Creates echo chambers that reinforce existing beliefs
- Google searches: Popularity-driven results, not fact-verified information
Google does not tell you what is true—it tells you what is popular. Those are very different things.
How to Protect Yourself
- Verify common wisdom before implementation: Just because everyone does something does not make it effective
- Research original data sources: Secondary interpretations often distort findings
- Recognize confirmation bias: Social media shows you what you already believe
- Question the incentives: Who benefits from this “best practice” being adopted?
The most dangerous business advice is the kind that sounds obviously true. It spreads because it is easy to believe, not because it works.
This article is based on Episode 13 of The Buck Stops Here podcast: “What Do Open Office Floor Plans, Unlimited PTO, and Scared Straight Have in Common?”