Do great decisions. Using multiple mental models on

Do you ever wonder how the most successful people make decisions that are important? Is there a secret magic formula for making better decisions?Most rational people in the world make decisions based on what models they have in mind. They have a fundamental belief system that can be used to take important decisions. The masters of leadership, strategy, and finance take critical decisions every day that can make or break their careers. They do it by relying on a simple but thoroughly understood piece of information and knowledge. These are called mental models.A mental model can be understood as a tool for thinking. A mental model is a view or explanation that enables you to make sense of the real world. For example, laws of thermodynamics describe energy in a closed system. These models are the thinking tools that you use to think and solve a problem. The larger your toolbox, the better you are equipped to face world challenges and make great decisions. Using multiple mental models on a problem help you to understand it better and solve it and identify patterns and enables you to see the whole picture.At Slibry, we believe that we cannot give you wisdom but only point in the right direction. We cannot show you what to think but how to think. We are committed to bringing the best resources and guidance to all who want to make better decisions in career and in life.Mental models are not perfect answers for all the problems, but they are quite useful. There is no single mental model that would give the perfect explanation of everything in the universe and this is why having multiple mental models helps reduce flaws in explanation of everything.”Scientists generally agree that no theory is 100 percent correct. Thus, the real test of knowledge is not the truth, but utility.” – Yuval Noah HarariThere is no one theory that explains everything. That is why we need multiple theories. For example, if you ask a question like “What makes humans different from animals?”If you ask an evolutionary biologist, they might say, “Human have involved from single-celled organism to a very complex being. Evolution caused us to have opposable thumbs.”If you ask neuroscientist, they might say, “Humans have more neurons and larger brain mass to body ratio than other animals.If you ask a philosopher, they might say, “Humans have higher planes of awareness and consciousness.”None of them are wrong about it technically. But they are looking at the question through a single lens and lose the bigger picture. Each expert has his own mental model which is just one of the truths of a reality. The challenges we face in life cannot be put under single domain/subject/field. It is hard to draw boundaries between fields when dealing with real life where no such distinction exists. All the worldview hold some amount of truth but they don’t explain the whole truth.Having a limited view of the whole truth robs us of the deeper understanding of the truth. It is like building a furniture with only a hammer. We might need more than that. We need raw materials, understanding of how to measure correct dimensions, plan the finished product and much more. When we have limited set of mental models, our chances of finding a potential solution decrease. To find practical solutions to real life problems, we might need multiple perspectives for the same problem. For this to happen, we must collect as many mental models as we can to fill out toolbox – more than a hammer. This is the secret of most successful people who apply a variety of mental models every day.The idea of mental models is not new. Charlie Munger, Vice Chairman of Berkshire Hathaway, talked about mental models for the first time in his famous speech in the 1990s. For those people who don’t know about Charlie Munger, please read this.Great thinking: How toWe all have a belief that has been set in our mind from our childhood. These set of beliefs help us make sense of the world. They explain how things work in the world. The more we use the same set of beliefs the more we favour it to explain new things too. We all have our natural inclinations which give us default explanation for everything that happens to us. It is the easy solution and very limiting.The limitations: we apply our favourite set of beliefs to explain everything. We are even ready to distort the reality, push it, pull it and punch it until it fits our theory. And we lose the truth of the reality. We try to explain all the problems we face through our favourite worldview. This is very dangerous when we are making decisions when stakes are high and we can’t afford to lose the truth of the reality. This might look contrary to expertise but is actually a limitation.How to overcome this limitation?The process is very simple. Acquire as many mental models as you can. The more you know, the better is your decision making skills. Each mental models gives you some part of the whole picture. When you look at the picture through many mental models, you understand it better. This means reading a lot of good books, studying the fundamentals of different fields, and learning from people in different fields. Your mind need as much exposure to different worldviews as can be done. This will enable you to make sense of the whole picture. Having more sources of knowledge help you to think better and clearer.Good decisions come from experience, and experience comes from bad decisions.The more powerful the models, the higher the potential for powerful solutions.ARCHIVES

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