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Mental Models

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The Super Guide about Mental Models is a complete guide on mental models and everything you need to know to understand them perfectly.

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SUPER GUIDE: Mental Models

The Super Guide about Mental Models is a complete guide on mental models and everything you need to know to understand them perfectly.

Table of content

  1. Introduction
  2. What Is A Mental Model?
    1. Learning To Think Better
    2. Simulating With Our Minds
    3. Thinking About Systems
    4. Complex Systems
      1. Latticework Of Mental Models
    5. A Lesson On Elementary, Worldly Wisdom
      1. 1. Circle Of Competence
      2. 2. First Principles Thinking
      3. 3. Second-Order Thinking
      4. 4. The Map Is Not The Territory
      5. 5. Thought Experiments
      6. 6. Probabilistic Thinking
    6. Combining Mental Models
  3. Why Mental Models Are Important
    1. How A Mental Model Affects Your Business
    2. Using Mental Models To Innovate In The Workforce
  4. The Core Mental Models
    1. Circle Of Competence
      1. Examples Of The Circle Of Competence
    2. Hanlon’s Razor
      1. Origins Of Hanlon’s Razor
      2. The Place Of Hanlon’s Razor In A Latticework Of Knowledge
        1. The Availability Heuristic:
        2. Confirmation Bias
        3. Hateful Bias
      3. The Uses Of Hanlon’s Razor
        1. The Media
        2. Communication And Relationships
      4. Hanlon’s Razor Examples
        1. The Media And Apple
        2. The Covid-19 Pandemic
        3. Team Building
      5. The Benefits Of Hanlon’s Razor Thinking
      6. What Happens If We Do Not Apply Hanlon’s Razor
      7. Combating Cognitive Biases With Hanlon’s Razor
    3. First Principles
      1. Engaging In First-Principles Thinking
        1. Identify And Then Challenge Your Assumptions
        2. Separate The Problem Into Its Fundamental Principles
        3. Create New Solutions
    4. Thought Experiment
      1. Famous Thought Experiments
      2. Natural Tendencies
      3. Thought Experiments In Philosophy
      4. Thought Experiments In Science
    5. Probabilistic Thinking
      1. What Is Probabilistic Thinking?
      2. Bayesian Thinking
      3. Fat-Tailed Curves
      4. Asymmetries
      5. How Does That Tie Into The Product?
    6. Second-Order Thinking
      1. What Is Second-Order Thinking?
      2. Difference Between First-Order Thinking And Second-Order Thinking
      3. Improving Your Ability To Think.
      4. How To Develop Second-Order Thinking: Template To Make Better Decisions
      5. Examples Of Second-Order Thinking
        1. Example 1: Managing Crisis At Work Or Avoiding One
          1. First Order Thinking
          2. First-Order Thinking Consequence
          3. Second-Order Thinking
          4. Second-Order Thinking Consequence
        2. Example 2: Hiring For Now Vs. The Future
          1. First Order Thinking
          2. First-Order Consequence
          3. Second-Order Thinking
          4. Second-Order Consequence
    7. Inversion
      1. How Do We Learn Through Inversion
      2. What Happens When We Don’t Apply Inversion
      3. Examples Of Putting Inversion Mental Model To Use
        1. Manage Performance
        2. Master Productivity
        3. Achieving Cross-Functional Team Collaboration
        4. Enabling Innovation
    8. Occam’s Razor
      1. The History Of Occam’s Razor
      2. Examples Of Occam’s Razor In Companies
        1. Mcdonald’s
        2. Apple
      3. Where Can Occam’s Razor Be Applied In Business?
        1. Too Many Websites
        2. Bloated Proposals
        3. International Expansion
      4. Hanlon’s Razor Vs. Occam’s Razor
      5. Occam’s Razor Vs. Occam’s Broom
      6. Occam’s Razor Vs. Hickam’s Dictum
  5. Example Of Mental Models In Business
    1. The Eisenhower Matrix
    2. Network Effects
    3. The Flywheel Effect
    4. Agile Development
    5. Forcing Functions
    6. Regret Minimization
    7. Breaking Down The Regret Minimization Framework
      1. Project
      2. Reflect
      3. Internalize
      4. Observe
      5. React
    8. Bayes’ Theorem
    9. Confirmation Bias
      1. How Can We Recognize Confirmation Bias?
        1. What Information Do You Remember
        2. What Evidence Do You Seek
        3. How Do You Interpret Data
      2. Why Our Brains Are Wired For Confirmation Bias
    10. Fundamental Attribution Error
      1. How Fundamental Attribution Error Impacts Your Team
      2. Members
      3. Example Of Fundamental Attribution Error
      4. How To Avoid Fundamental Attribution Error
    11. Jealousy Tendency
      1. The Two Types Of Envy
        1. Social Comparison
        2. Jealousy
    12. Opportunity Costs
    13. Pareto Principle
    14. Preferential Attachment
    15. Redundancy
    16. Comparative Advantage
      1. Real-Life Examples
    17. Diversification
    18. Economies Of Scale
      1. An Example Of How Economies Of Scale Help The Rich Get Richer
    19. Efficient Market Hypothesis
      1. Applications Of Efficient Markets
      2. Applications Of Efficient Market Hypothesis (Emh)
    20. Game Theory
    21. Incentives (Reward And Punishment)
      1. History Of The Incentive Theory
      2. How Does Incentive Theory Work?
      3. Why Some Incentives Are More Motivating Than Others
      4. Why It Is Useful
      5. How It Fits Into The Latticework
  6. The Mental Models Of Systems Thinking
    1. Feedback Loops
      1. Positive Feedback Loops
        1. Stampede
        2. Bank Runs
        3. Microphones
        4. Learning
        5. Network Effect
      2. Negative Feedback Loops
        1. Our Body
        2. Nature’s Food Chains
    2. Equilibrium
      1. Supply And Demand + Equilibrium
      2. Feedback Loops And Equilibrium
      3. Diseases And Equilibrium
    3. Bottlenecks
    4. Scale
      1. Vertical Scaling: The Size Of Your Boat
      2. Horizontal Scaling: Supermarket Lines
      3. Dynamic Scaling: Keeping Comfortably Warm
    5. Margin Of Safety
      1. Example Of Investing And Margin Of Safety
    6. Churn
    7. Critical Mass
      1. Critical Mass In Business
      2. Examples Of Critical Mass
      3. Malcolm Gladwell On Tipping Points
        1. Connectors
        2. Mavens
        3. Salesmen
      4. The 10% Rule
    8. Law Of Diminishing Returns
  7. Conclusion

 

Read an excerpt from this Mental Models Super Guide:

“Mental models are structures that help us think. They make things easier to understand, so you can figure out what to do. They allow you to make good decisions for the long term, even when you don’t know everything about a situation. It is how you think about a problem in a specific way. One of the main ways that really smart people stand out from the crowd is by having a different toolbox for every issue.”

 

This is must-have knowledge for entrepreneurs and business model analysts and consultants. If you want to dominate business models this super guide was made especially for you.

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