Personality Tests Lack Science

The speaker discusses the validity and business model of personality tests, particularly focusing on Myers-Briggs, while expressing skepticism about their scientific merit despite widespread corporate adoption.

Key Points:

• Origins of Myers-Briggs Test:

  • Created in 1942 by Isabel Briggs after reading about personality sorting in Reader's Digest
  • Based on Carl Jung's principles
  • Categorizes people into 16 personality types, all with positive labels
  • No "bad" scores - every category gets a positive affirmation name

• Scientific Validity Concerns:

  • 50% of people get different results when retaking the test weeks later
  • Uses the "Forer Effect" - similar to astrology and fortune telling
  • Provides general statements that most people can relate to
  • Lacks reliable scientific backing

• Corporate Adoption:

  • Used by 89% of Fortune 100 companies
  • Employed by 200 federal agencies
  • EPA uses it on 25% of their 20,000 employees

• Business Model:

  • Test costs $15-40 per person
  • Practitioners must pay $2,000 for certification
  • Enrolled 5,000 practitioners last year ($8-10M revenue)
  • Practitioners earn $30 per test administered
  • Parent company receives $10 royalty per test
  • Annual revenue exceeds $20M (suspected to be higher)

• Distribution Strategy:

  • Tests must be administered by certified practitioners
  • Creates multi-level marketing style system
  • Practitioners incentivized to distribute tests
  • Company maintains control through certification requirements

The speaker concludes that while these tests are widely adopted and financially successful, their scientific validity is questionable, comparing them to horoscopes and fortune telling.