#mental-models

Strategic decision-making pitfalls happen by the lack of a clear process or communication, a poor problem's understanding, and a bunch of cognitive biases.

Mental models can help people to recognize and correct cognitive biases by providing a structured way of thinking about problems and decision-making situations.

Once we have the building blocks of some topic, we can choose a subset of them to build new ideas, apply to understand other topics, solve problems, and so on.

The main idea of first principles thinking is to break down problems or situations into basic and irreducible elements.

There are three parts to operating outside a circle of competence successfully: learning the basics, talking to some expert, and learning other mental models.

The circle of competence is a mental model that defines boundaries for what you know and what you don't know.

"A reality-growth mindset is the ability to accept the hard limits of the way things are (like the physical laws of the universe) and also to believe that anything is possible (the metaphysical way of looking at the universe)."

It states that debunking false, facetious, or otherwise misleading information requires much more energy than producing it.

The Pareto Principle states that roughly 80% of the consequences come from 20% of the causes for many outcomes.

It stands that a measure ceases to be a good measure when it becomes a target.

This framework helps you assign and do work that must be done.

It's the more effective way to think about projects and situations because it makes thinks happen sooner, better, and more successfully.

When a team starts a project without planning ahead, it's possible that the reactive planning model ensues.

Opportunity cost is the loss of the benefit that could have been enjoyed if the best choice was chosen instead.

It helps you to identify the kind of daily work that you can be engaged in.

When faced with a problem, people tend to prefer solutions that add new elements rather than removing elements, even if removing is the more efficient solution.

System mental models are models that are used to help you understand how a system works.

Decision mental models are frameworks that people use to make decisions.

It helps you decide which action you take in the present moment.

This theory states that humans discount the value of a later reward by some factor that increases with the delay's length.

Mental models are frameworks, worldviews, representations, or explanations of how something works. They're how we understand the world.