We like to think that we can rationally compute information like a computer, but we can’t. Cognitive biases explain why we made a bad decision but rarely help us avoiding them. Better to focus on these warning signs something is about to go wrong.
I've taught thousands of people make smart decisions without getting lucky.
Here is a thread on 5 of the biggest reasons we fail to make effective decisions.
We like to think that we can rationally compute information like a computer, but we can’t. Cognitive biases explain why we made a bad decision but rarely help us avoiding them. Better to focus on these warning signs something is about to go wrong.
The rule: Never make important decisions when you’re tired, emotional, distracted, or in a rush.
The first person to state the problem rarely has the best insight into the problem. Once a problem is thrown out on the table however, our type-a problem solving nature kicks in and forget to ask if we’re solving the right problem.
The rule: Never let anyone define the problem for you.
We like to believe that people tell us the truth. We like to believe the people we talk to understand what they are talking about. We like to believe that we have all the information.
You know the person that sits beside you at work that has 20 years of experience but keeps making the same mistakes over and over. They don’t have 20 years of experience, but one year repeated 20 times. If you can’t learn you can’t get better.
Warning signs you’re not learning: You’re too busy to reflect. You don’t keep track of your decisions. You can’t calibrate your own decision making.
The rule: Be less busy. Keep a learning journal. Reflect every day.
The Learning Loop
— Shane Parrish (@ShaneAParrish) August 3, 2020
To better understand learning, let's break it into four components.
1. Experience
2. Reflection
3. Abstraction/Lesson
4. Action
This process creates a feedback loop so that you are continuously adapting and learning from your (or others) experiences.
Our evolutionary programming conditions us to do what’s easy over what’s right. Organizations encourage us to sound good over being good. After all it’s often easier to signal being virtuous than actually being virtuous.
For more timeless wisdom on learning faster, thinking better, and making better decisions sign up: https://t.co/cTnLlM0mzT
More from Life
1/“What would need to be true for you to….X”
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
Next level tactic when closing a sale, candidate, or investment:
— Erik Torenberg (@eriktorenberg) February 27, 2018
Ask: \u201cWhat needs to be true for you to be all in?\u201d
You'll usually get an explicit answer that you might not get otherwise. It also holds them accountable once the thing they need becomes true.
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
