Wow, how much I enjoyed reading Super Thinking: The Big Book of Mental Models by Gabriel Weinberg and Lauren McCann! I listened to the audio book and was annoyed by how much I had to pause it since I was taking so many notes. This book was recommended to me by a colleague, and I am really grateful for the recommendation. It's like a combination of psychology, business, startups, and even relationship/family advice, all in one book of principles and models that can apply to many aspects of life. While there were not that many "brand new" models that I encountered, I really liked how the book pulled so many of them together and illustrated them with concise clear examples. I greatly enjoyed Munger's books on similar topics, and this one incorporates many of his teachings and adds similar ones from lots of different fields as well. And it's cool that it was written by another software entrepreneur and dad! Below are my main notes and takeaways. I highly recommend getting the book and reading it. Intro
Mental model Shortcuts to higher level thinking Munger Multidisciplinary 1 being wrong less Invert, always invert Think backwards Make less unforced errors Antifragile Keep it simple Starting from first principles Derisking Premature optimization Minimum viable product Occam’s razor. Choose simplest Over fitting Conjunction fallacy In eye of beholder. Account for frame of reference Framing. Headlines. Nudging with word choice or colors Anchoring to first offer Availability bias Filter bubble Walk a mile in their shoes Think as a third party observer Most respectful interpretation Give people benefit of doubt Hanlon’s razor: never attribute to malice what could be incompetence or carelessness Fundamental attribution error Self serving bias Actor observer bias Attribute bad to others but good to self Veil of ignorance: should make decisions ignorant of who we are Acknowledge that big portion of your success comes from luck. Birth Lottery Versus Just world hypothesis where some believe everyone just gets what they deserve without accounting for luck or randomness (you reap what you sow) Blaming victims Learned helplessness Can be improved with right guide Progress one funeral at a time New ideas accepted when old ones held by old people die out when the people die Semelvice reflex of holding onto old wrong idea Confirmation bias Defeated by outsiders Backfire effect: people get even more entrenched when get new info sometimes Disconfirmation bias: I’m ok, you’re biased Cognitive dissonance Thinking gray: truth often not black and white Don’t form opinion on a matter until heard all the facts or forced to make decision Devils advocate Don’t trust your gut Proximate cause versus root cause Post Mortem Five Whys Optimistic probability bias when you really want something to be true Take in a variety of perspectives 2 anythIng that can go wrong will Unintended consequences Tragedy of the commons and overgrazing Individual vs collective effects Tyranny of small decisions Death by 1000 cuts Self impose a budget Free rider problem Public goods Herd immunity Externalities Internalizing Coase theorem Spillover effects Risky business Moral hazard Principal agent problem Asymmetric info Be careful what you wish for When a measure becomes a target it gets messed up Cheating incentives Campbell law Streisand effect: Unintentionally drawing more attention to something when you try to hide it It’s not the crime, it’s the cover up Hydra effect: when take out one bad things it’s replaced by 2 more Don’t kick a hornets’ nest Observer effect: something changes when observed and depending upon who Chilling effect: when people fear to exercise rights due to retaliation Collateral damage Blowback It’s getting hot in here Boiling frog Gradual change hard to react to and perceive Short termism Technical debt Management debt Design debt Path dependence Preserve optionality Precautionary principle: be careful with actions that could cause extreme harm First do no harm Too much of a good thing Information overload Analysis paralysis Perfect is Enemy of good Reversible versus irreversible decisions Limit choice Hicks law: time to decide increases logarithmically with number of choices Give multi step decision with fewer choices at each step Paradox of choice Decision fatigue Take breaks Reduce number of daily decisions by having presets for clothes and meals Front load clothing and meal decisions on sundays which is Lower stress day Murphy’s law 3 spend your time wisely North Star: business’s guiding vision Personal mission statement or North Star Compound interest You can do anything but not everything You can chase two rabbits but both will escape Brain can only do one high concentration activity at a time Context switching hurts performance Top idea in your mind Deep work Focus on only one thing and often the hardest one People tend to solve the problems they know how to which are not the most important and procrastinate on the more challenging but important ones Important versus urgent. Eisenhower matrix Turn off notifications Sayers law: strength of emotionality inversely proportional to importance of issue Parkinson’s law: organizations put too much weight on trivial things Bike shedding: spending too long on trivial things and avoiding the harder thornier issues Time boxing: set strict agenda order and time constraints for issues to spend more time on more important issues Opportunity cost Cost of capital Batna Getting more bang for your buck Fulcrum and lever Leverage Pareto principle: 80% of results come from 20% of activities Power law Focus on “vital few” activities Law of diminishing marginal returns Negative returns Burnout Get out of your own way Procrastination Present bias over long term Discount rate to future Discounted cash flow Net present value Hyperbolic discounting Commitment with penalty attached and social pressure Default option effect Book time on calendar for deep work so it’s already set up Parkinson’s law: work expands to fill the time available for it Hofstadter’s law: it always takes longer than you expect even when you take into account H’s law 90/90 rule: first 90% of code takes 90% of the time. Last 10% takes 90% of the time. Best time to call something done is usually much earlier than it happens Decide ahead of time what quality level is acceptable Loss aversion Framing principle Sunk cost fallacy. Concord fallacy of throwing good money after bad Premortem and midmortem Shortcut your way to success Design pattern Antipattern Brute force Heuristic rules Algorithms Black box Tools Automation Economies of scale Parallel processing Divide and conquer Reframe the problem 4 becoming one with nature Natural selection Adaptation to changing environment Scientific method. Experimental mindset. Diet and exercise Don’t fight nature Inertia of old ideas hard to overcome Strategy tax: sometimes u can’t adopt some strategy due to conflict with another one you have. Try not to lock in to long term strategy because can’t adapt well. Shirkey principle: institutions will try to preserve the problem for which they are the solution Lindy effect: things that have survived a while will be expected to continue to do so Peak model like when something peaks then falls Momentum and inertia Culture eats strategy for breakfast Flywheel Potential energy and center of gravity (influencers) Activation energy and catalyst Forcing function. Commitment. Standing meeting. Weekly project updates. Harnessing a chain reaction Critical mass Tipping point Inflection point Technology adoption life cycle. S curve Network effects. Metcalf’s law Cascading failure Order out of chaos Butterfly effect Luck surface area Entropy “Only entropy comes easy” 2x2 matrices and scatter plots Black and white fallacy Try to think of other options 5 lies, damned lies, statistics To believe or not to believe Spurious correlations Correlation doesn’t imply causation Moving target versus randomized controlled trial. A/B testing. Double blinded. Placebo effect Nocebo effect: anticipation of side effects even if no treatment received Proxy metrics and endpoints Hidden bias Selection bias Nonresponse to survey bias Survivorship bias Response bias Small sample size. Be wary of Law of small numbers Gamblers fallacy. Monte Carlo fallacy Clustering illusion Sophomore slump. Just regression to mean The bell curve Central tendency. Mean, median, mode Dispersion. Range, variance, standard deviation, histogram Normal distribution. ⅔ within one standard deviation Central limit theorem. Average from any distribution approaches normal Margin of error. Confidence level It depends Conditional probability using additional information. Inverse fallacy Base rate fallacy Bayes theorem. Updating prior Right or wrong Type 1 and 2 errors Alpha 5% acceptable error rate Power of experiment Beta Null hypothesis P value Increase sample size to get better confidence Will it replicate Publication bias Cutting down data to find something significant but really spurious Systematic reviews and meta-analyses 6 decisions, decisions Pro con list not best tool Maslow hammer. Everything looks like a nail Weighing costs and benefits Add numbers to pro con list from -10 to 10 Cost benefit analysis: change scores to dollar values Put values on spreadsheet timeline to see dollar gains and losses over time Discount future benefits and costs to today using rate Sensitivity analysis Garbage in garbage out Taming complexity Decision tree when lots out possible outcomes Expected value Utility values Black swan events. Chance of ruin Fat tailed distributions Cascading failures Systems thinking Causal loop diagrams. Stock and flow diagrams Simulation. Software: insight maker, true world Lechatelier principle for equilibrium. Homeostasis Hysteresis. Current state depends on past. Path dependence. Range of temperatures to activate thermostat Lag for mouse activation Monte Carlo simulation Dynamic sensitivity analysis Local versus global optimum Beware of unknown unknowns 2x2 matrix of known and unknown Derisking exercises Scenario analysis Thought experiment Counterfactual thinking Lateral thinking Adding randomness to generate ideas Groupthink Bandwagon effect Divergent thinking Crowdsourcing Prediction markets 7 dealing with conflict Arms race Keeping up with the Joneses Playing with game Game theory Prisoners dilemma Payoff matrix Nash equilibrium Repeated game tit for tat Nudge Cialdini influence model Reciprocity Commitment Liking. Mirroring Social proof Scarcity. Fomo Authority Perspective is everything Framing Market vs social solution Feeling of fairness Distributive vs procedural justice Fair share vs fair play Appeal to emotion FUD: fear, uncertainty, doubt Straw man Ad hominem Where’s the line Trojan horse Bait and switch Potemkin village Only winning move is not to play Mutually assured destruction Carrot and stick model Containment Quarantine Flypaper Honeypot Domino effect Slippery slope Broken windows theory Contagion metaphor Gateway drug theory Loss leader strategy Appeasement Don’t feed the trolls Pick your battles Change the game Line in the sand and explain threat Zero tolerance policy War of attrition Pyrrhic victory Sacrifice play Guerrilla warfare, marketing Don’t bring a knife to a gun fight Punching above your weight End game Exit strategy Scorched earth Hail Mary pass Burn the boats Cross the rubicon 8 unlocking people’s potential Joy’s law, rumsfeld’s rule: you go to war with the army you have 10X team or individual It takes a village Nature vs nurture People not interchangeable Introversion and extroversion Openness to experience Curious vs cautious Conscientiousness Organized vs easy going Agreeableness Compassionate vs challenging Neuroticism Nervous vs confident IQ and EQ Generalists vs specialists Company building 3 types of people over time: Commandos, infantry, police Foxes vs hedgehogs Managing to the person Who goes where Peter principle: managers rise to the level of their incompetence Develop multiple leadership tracks like technical versus people management Strategy vs tactics Unicorn candidate, grass is greener DRI: directly responsible individual Bystander effect Controlled power vacuum Practice makes perfect Deliberate practice 10,000 hour rule Spacing effect. Better than cramming Weekly 1:1 to force feedback Radical candor Challenge directly Care personally Consequence conviction matrix Unlocking potential Fixed vs growth mindset Pygmalion effect: higher expectations lead to better performance Self fulfilling prophecies Imposter syndrome Dunning Kruger effect as go from novice to expert but then confirmed plummets when you try to advance further Maslow hierarchy of needs Hindsight bias, hindsight 20/20, Monday morning quarterbacking Counterfactual thinking Take notes as time goes on to not depend on fallible memory Together we thrive (company culture) Low context vs high context (when a lot is unsaid) Tight or loose cultural Hierarchical or egalitarian Collective vs individual Stack ranking Objective vs subjective Be explicit about cultural norms Culture is what happens when managers aren’t in the room Set clear vision and reinforce it Leading by example Hiring standards Establishing traditions Accountability and post mortems Rewarding people for demonstrating culture Winning hearts and Minds Loyalists vs mercenaries Manager schedule versus maker schedule Hourly units versus half day units Dunbar’s number Mythical man month Boots on the ground, rolling up your sleeves, in the trenches 9 flex your market power Arbitrage Sustainable competitive advantage Market power Monopoly Perfect competition Secret sauce 2x2 matrix of right/wrong and consensus/contrarian Open but less known secrets How to turn someone’s good idea into a great one Secrets hidden in plain sight Why now? Inverse thinking: now what? Never let a serious crisis go to waste Simultaneous invention, multiple discovery Vision without execution is hallucination First mover Product market fit Person org fit Resonant frequency Customer development No facts inside the building Rapid experimentation OODA loop Pivot Jobs to be done model What type of customer are you hunting (different animal names for average annual revenue per customer) How many will it take at various price points to reach $100M annual revenue Back of the envelope calculation Personas. Think in terms of actual customers Pivots: are there enough bright spots Beachhead Navigating idea maze Heat seeking missiles: adjust path and find targets Activate your force field Moat IP, patents Specialized skills Brand Relationships Vertical integration Network effects Distribution channel High pace of innovation Lock in/switching costs Barriers to entry and exit Regulatory capture Licensing Winner take most markets Only the paranoid survive. Need to reinvent yourself when facing threats Watch for technologies crossing the chasm Conclusion Knowing name of something versus knowing the thing Cargo cult science (fake) Circle of competence References Superforecasting
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