The $5 Challenge in Stanford

A very interesting article I came across in a bookstore, each team in the class was given $5 USD and 2 hours to generate money as much as possible. at the end of the semester, they have to give a 3-min presentation on what they did. Very creative and smart team!

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The $5 Challenge! What would you do with $5 and 2 hours?

What would you do to earn money if all you had was 5 dollars and 2 hours? This is the assignment I gave students in one of my classes at Stanford University, as part of the Stanford Technology Ventures Program. Each of 14 teams received an envelope with 5 dollars of “seed funding” and was told they could spend as much time as they wanted planning. However, once they cracked open the envelope, they had 2 hours to generate as much money as possible. I gave them from Wednesday afternoon until Sunday evening to complete the assignment. Then, on Sunday evening, each team had to send me one slide describing what they had done, and on Monday afternoon each team had 3 minutes to present their project to the class.

When I ask this question to most groups, someone usually shouts out, “Go to Las Vegas,” or “Buy a lottery ticket.” This gets a big laugh. These folks would take a significant risk in return for a small chance at earning a big reward. The next most common suggestion is to set up a car wash or lemonade stand, using the 5 dollars to purchase the starting materials. This is a fine option for those interested in earning a few extra dollars of spending money in two hours. But most of my students eventually found a way to move far beyond the standard responses.

The team that generated the greatest profit looked at the resources at their disposal through completely different lenses, and made $650. These students determined that the most valuable asset they had was neither the 5 dollars nor the 2 hours. Instead, their insight was that their most precious resource was their three-minute presentation time on Monday. They decided to sell it to a company that wanted to recruit the students in the class. The team created a three-minute “commercial” for that company and showed it to the students during the time they would have presented what they had done the prior week. This was brilliant. They recognized that they had a fabulously valuable asset—that others didn’t even notice—just waiting to be mined! 

Full article: http://www.psychologytoday.com/blog/creativityrulz/200908/the-5-challenge

4 thoughts on “The $5 Challenge in Stanford”

    1. Yup!! Too often we frame problems too traditionally and jump to standard answers. Should identify problems broadly with fresh eyes and challenge underlying assumptions~!

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