In his book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Howard Marks provides a useful list of questions to ask. Snow developed systems to ease the pain of surgery with ether and chloroform. “If they win, it’s because they made good decisions. Snow was not interested in individual, isolated phenomena; he was interested in chains and networks in the movement from scale to scale. If the vertical axis is caring personally and the horizontal axis is challenging directly, you want your feedback to fall in the upper right-hand quadrant. Positive Frame Program A: This program ensures that 200 people will be saved. “The effect that one user of a good or service has on the value of that product to other people. Hosted by Pressable. As communicators focused on change, we like to toss around different concepts of message framing and reframing much like hockey pucks in this office. Service businesses are more difficult to scale. This is a communication model from Dick Costolo (former CEO of Twitter). Examples of Mental Health Treatment Plans. In a previous lifetime, I was a very competitive poker player. The more lenses you have, the more you can see. — Mattie Kahn, Glamour, "‘This Is Not Our Shame’: Five Survivors of Jeffrey … Such a great reminder on how to prioritize your priorities. In studying ether and chloroform, he had moved from the molecular properties of the gas itself, to its circulation of those properties throughout the body’s overall system, to the psychological effects produced by these biological changes. Framing refers to the social construction of a social phenomenon often by mass media sources, political or social movements, political leaders, or other actors and organizations. Economies of scale allow a company to grow exponentially without growth in their fixed costs or overhead. Let’s examine the decision-tree process in greater detail. This makes it easier to develop an efficient, large-scale distribution system. The child rights organization first carries out a situation analysis that shows many community Logically order your supporting ideas. You can see Facebook exploit each of these — high switching costs, network effects, and efficient scale (now powered by machine learning). He listed some of the issues the entrepreneur would need to address: Let’s examine the decision-making process by breaking it down into two components. RM 6–MH: Mental Health Scenarios* This learning activity will enable students to become more acquainted with various mental health issues and some of their signs and symptoms. Charlie Munger is a strong advocate of a mental framework. Developing a Mental Framework for Effective Thinking, Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger, five-simple notions that help solve complex problems, The Focused Few: Taking a Multidisciplinary Approach to Focus Investing, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Charlie Munger: Academic Economics — Strengths and Weaknesses, after Considering Interdisciplinary Needs. If you want to use this method, you should check in with your product team at these critical points: One of my favorite sayings is to “sync early and often”. What kinds of questions should a second-level thinker ask? What kind of properties should the new drink strive for, and what are those it should avoid? This is harder than it sounds as you’ll be wrong majority of the time. Primary framework is of two types: natural and social. Using mental models to make decisions we determine where we want to go and how to get there. He wants his managers to continually increase the size of the moats around their castles. The key take-aways from the Pyramid Principle: 2. It gets to the conclusion quicker, allowing everyone to get aligned and have a candid conversation. Making decisions based on first-level reasoning has significant problems, however. Here’s a great primer from Farnam Street: It’s your mind’s toolbox for making decisions. This Consilience is a test of the truth of the Theory in which it occurs.” Snow’s work was constantly building bridges between different disciplines, some which barely existed as functional sciences in his day, using data on one scale of investigation to make predictions about behavior on other scales. We use frames to provide categories and a structure to our thoughts. Frames help us to interpret the world around us and represent that world to others. Thus, frames provide meaning through selective simplification, by filtering people's per… You have to have a view that’s different from the consensus.”, “To win at stocks or entrepreneurship, you must bet against the consensus and be right.” — Ray Dalio. Entropy is a mental model that helps you understand how disorder and decay work. Free articles, courses, and other things you might like. Group and summarize your supporting arguments. Here’s an example of how it works with a company like Amazon: The Pyramid Principle advocates that “ideas in writing should always form a pyramid under a single thought.”. Mental models are abstract mental representations of some process we see repeated in the world. In Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger, he offered five-simple notions that help solve complex problems. No matter what, these things get no attention from you until you’ve succeeded with your top 5.”. This allows your business to defend against any competitors and win in the long-run. An assumption is that teachers have already addressed these topics in class and are using this learning activity primarily for review or application of learning. A narrow moat did not offer much protection and allowed enemies easy access to the castle. A mindset is a particular way of thinking or a frame of mind. When thinking through communicating, I always lead with this pyramid principle. I’ve modified this from 5 to 3 priorities, which forces me to focus further. It’s also important to hold steady when things are going extremely well and when things are not going extremely well. For example, in … These tools also allow you to better understand when to follow and when to reject conventional wisdom. Frames are cognitive shortcuts that people use to help make sense of complex information. The soda should be developed in such a manner that it can be shipped in large quantities at minimal costs. You’ve got it wrong Steve. John Snow was a doctor based in London during the acute cholera outbreak of the summer of 1854. Broadly speaking, five major frames have been taken to understand mental illness. In days of old, a castle was protected by the moat that circled it. It is an inevitable process of selective influence over the individual's perception of the meanings attributed to words or phrases. They also increase your likelihood to succeed and avoid mistakes. I love the rule of three. Program B: One-third probability that all of them will be saved, and two-third possibility that none of them will be saved. This video is all about mental frame advantage. In The Focused Few: Taking a Multidisciplinary Approach to Focus Investing, Richard Rockwood explores the concepts from many disciplines. To help, I’ve started listing out several mental … Game theory basically states that you should pick the strategy where the maximum advantage of your opponent is minimized. We buy amazing businesses. (Discuss) Frames, according to many psychologists, linguists and cognitive scientists, are mental structures that are used to facilitate the thinking process. Charlie Munger is a strong advocate of a mental framework. In the book The Ghost Map, author Steven Johnson explains: Snow was a truly consilient thinker, in the sense of the term as it was originally formulated by the Cambridge philosopher William Whewell in the 1840s (and recently popularized by Harvard biologist E. O. Wilson). You can have a mindset on a particular event, topic, item, or person. The examples and perspective in this article may not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. Kahneman and Tversky defined a decision frame as ‘thedecision-maker’s conception of the act, outcomes and contingencies associatedwith a particular choice.’ Inverting, or thinking problems through backward, is a great way to understand information. A city of 600 people is likely to be attacked by a deadly disease, that might result in the deaths of its inhabitants. These include the religious/spiritual, moral character, biological, psychological, and social. But when out and about, I usually describe frames as shortcuts to mental models, with an emotional component added in. Natural frameworks interpret physical occurrences of events whereas social frameworks view it as socially driven, occurring due to social players like manipulations. What is the range of likely future outcomes? This means being heavily involved at the beginning of the process and getting less involved as the project moves through execution. Companies like Google, Facebook, and Twitter can add customers or users without adding any fixed costs. Because of your mental set, you are unable to see a simpler solution that might be possible. Is the consensus psychology that is incorporated into the price too bullish or bearish? Mental models have been crucial for me to make important decisions, lead the team, and strategize how to win in the market. That’s what Julia Child, “The French Chef”, did throughout her career. They’re always running — and you’ve put them together, either consciously or subconsciously, from your experiences and information. Second-level thinkers, in contrast, approach decisions differently. You’ve been asked to select a strategy out of these that will help the city combat the epidemic. Mental illness can make it difficult for someone to cope with work, relationships and other demands. Charlie Munger provides the best illustration I have ever seen of this type of thinking. I use it as a framework for everything from prioritizing priorities to making recommendations. Listed below are a few examples of the many ways that these materials can be used during mental math sessions and/or in math centers to build number sense: Flash Flash a dot or ten frame card briefly and have students write the number on a whiteboard. He even ventured beyond the natural world into the design of technology that would best reflect our understanding of the anesthetics. Then consider to focus your marketing efforts on shifting your prospects’ mental models. For any big decision, I get input from everyone — our management team, our board, employees, customers, etc to get everyone’s perspective. Mental models can apply to anything. These frameworks help interpretation and communication of data along with how data i… Theframe significantly effects how we infer meaning and hence understand thesituation. The key is to always listen first, never do the steps out of order, and shorten the gap between each step. It is generally considered in one of two ways: as frames in thought, consisting of the mental representations, interpretations, and simplifications of reality, and frames in communication, consisting of the communi… “Mental framing is how you see any given situation and occurs when you position your thoughts in such a way as to convince yourself of the value of difficult situations.” – theoleballgame.com Any easy – though touchy – example of framing is the way in … We effectivelylook through this frame in the way we would look through tinted spectacles. They enable you to lay out several possible scenarios, investigate their possible outcomes, and create a balanced picture of the risks and rewards associated with each. I found the 10/10/10 rule helps clarifies the right decision that results in a win/win/win. To Buffett, the castle is the business and the moat is the competitive advantage the company has. That’s where radical candor lies. Start by assigning a cash value to each possible outcome (i.e., what the expected value would be if that particular outcome were to occur). And your life essentially depends on the cumulative quality of the decisions you make.”, “You have to be an independent thinker in markets to be successful because the consensus is built into the price. The danger is that you may think you understand a particular situation when in fact you have only developed a likely story. These mental models might not make the decisions any easier — but they will give you a framework to think through them clearly. Mental framing is a myopia, a simplistic, narrow or biased formulation or perception of a situation or issue. Mental frames distort decision making and behaviors, notably in … People tend to frame political arguments in terms of their own values, but when arguing across party lines, it is much more effective to frame your … Framing is one way the brain finds patterns in chaos (its primary survival function) and creates meaning out of meaninglessness. When we label a phenomenon, we give meaning to some aspects of what is observed, while discounting other aspects because they appear irrelevant or counter-intuitive. Think of mental models as the operating systems (OS) that run in the background of your brain. By being even throughout both scenarios, it allows you to avoid attribution bias. After these two steps have been taken (i.e., the values of the outcomes have been entered and the probabilities have been estimated), it is time to begin calculating the expected values of the various branches in the decision tree. When trying to resolve a difficult situation or determining exactly why a product has been, and may continue to be, successful, it helps to think about the problem by creating a checklist that incorporates the vital components of other disciplines. Fast decision making is a major advantage to being a small company and something I’d hate for us to lose as we grow. The framing effect is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations; e.g. Suspending belief in the common theory at the time on how diseases were spread, Snow ended up rejecting miasma theory, which said the disease was spread via “bad air.” He did this through science. 2020 Farnam Street Media Inc. All Rights Reserved. You’ll always have imperfect information but your decision making process is always in your control. You once told me that it’s important to do those three things in that order. For example, supply and demand is a mental model that helps you understand how the economy works. We came up with boundary lines to tell things apart. The wider the moat, the more easily a castle could be defended, as a wide moat made it very difficult for enemies to approach. “The Consilience of Inductions,” Whewell wrote, “takes place when an Induction, obtained from one class of facts, coincides with an Induction obtained from another different class. The method is a framework for when you should check in with your product teams. as a loss or as a gain.. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented. So when you’re making a decision as an executive, a CEO, or any leader, this listen, decide, communicate sequence is really important. The biggest trap they fall into is that they judge their performance based on outcomes. Blockchains are politically decentralized (no one controls them) and architecturally decentralized (no infrastructural central point of failure) but they are logically centralized (there is one commonly agreed state and the system behaves like a single computer) — Vitalik Buterin, Ethereum. By “strategy” we mean a situation in which a person, when choosing among alternative courses of action, must consider how others might respond to the action he takes. How does the current price for the asset comport with the consensus view of the future— and with mine? The idea for building a “latticework” of mental models come from Charlie Munger, who was Warren Buffett’s right-hand man. If there’s more than one DRI, then there is no DRI. There are several examples of mental health treatment plans to be found online, and several are linked below: This sample treatment plan is for a young Medicaid recipient struggling with symptoms of depression and suicidal thoughts. His willingness to challenge conventional thinking, along with approaching the problem through multiple lenses, resulted in finding the deadly source and changes in municipal water systems from that day forward. Other examples of mental models in marketing: The Spray Tan Fallacy; Moment of Truth (MOT) Not 2, not 4, but exactly 3. The role of upper leadership changes from one focused on making every decision throughout the organization to a role of providing information and context to each team so that they are all connected to a common purpose and have the best information on which to make their own decisions. If you can master the first principles within a domain, you can see much further than those who are just following recipes. For example, imagine that you are trying to solve a math problem in your algebra class. Is the answer to one or more of these questions “yes”? Now that I lead a team of 25 there are a lot more decisions to be made. This doesn’t mean the models are useful or reliable. He represents a powerful example of the impact a lollapalooza effect can have. He discussed the development process of Coca-Cola from the perspective of a person creating a soda company from scratch and examining the key issues that would need to be resolved to make it a reality. Network effect is now becoming table stakes for any strategy. His mind tripped happily from molecules to cells to brains to machines, and it was precisely that consilient study that helped Snow uncover so much about this nascent field in such a shockingly short amount of time. The company also can deter competition by expanding the business as quickly as possible. Game theory is a mental model that helps you understand how relationships and trust work. Mental illness is a general term for a group of illnesses that may impact on a person’s thoughts, perceptions, feelings and behaviours. Most of us have been guilty of making decisions without thinking about the long term consequences, and the 10/10/10 rule can be used to reflect on the long-term by asking yourself: This exercise helps take the emotions out of the decision (very important for making good decisions), while forcing you to think through the long-term implications of the decision. For example, a person may decide to invest in a company simply because its products are trendy. Understanding the differences between these three will give you the understanding of how Bitcoin and the underlying technology around the Blockchain works. Next, look at each break, or point of uncertainty, in the tree and estimate the probability of each outcome occurring. Here’s one pro-tip that I learned from one of my mentors at McKinsey: The Rule of 3. Lead with the answer first instead of having a “grand unveiling” at the end. If you can master the fundamentals of each discipline, then you can develop a remarkably accurate and useful picture of life. The Focused Few is a tune up for your mind. The first priority being the most important thing. How does my expectation differ from the consensus? When thinking through competitive advantage and strategy, it’s important to think through the moat that you’ll create over time. Team of Teams is an operating model that pulls together different teams — and their members, into a seamless network of organization. Then an unexpected herd of turtles runs out in front of them as they are touching down and with complacency so set in their comprehension and reaction speeds are too badly impaired for them to react. What is Mental Framework? People are believed to have their own framework which is used to look at the world and interpret data known as primary framework. A frame is the combination of beliefs, values, attitudes,mental models, and so on which we use to perceive a situation. Since past experience has taught you that the belt is a common issue, you r… Strategic thinking is crucial not only in checkers, chess, and tic-tac-toe but in many business decisions. Everything you didn’t circle just became your ‘avoid at all cost list’. You need to change the way they think about the world before they will be ready to accept your solution. First, identify the decision and the outcome alternatives available at each point. Personally, I tend to think of frames as mental pictures or mindmaps similar to those produced by Thinkmap Visual Thesaurus, a favorite website … During a speech he offered an example of how a situation could be examined using the inversion process. The rigorous process allows me to de-risk decisions in a timely fashion. Typically, companies that reach critical mass on the Internet result in a winner-take-all market — the holy grail of startups. I’ve taken it and adapted it to my own studio. The more you can see the more you can understand. A management concept, originally championed by Apple, that good things come if someone is explicitly responsible for something. Game theory is the study of how people behave in strategic situations. By approaching decisions with an outcome blind approach, it allows you to have a higher probability of making high quality decisions. They are not as urgent but I still plan to give them dedicated effort.”, To Steve’s surprise, Warren responded sternly, “No. For example, the distribution system could be expanded until it reaches a critical mass that competitors would find hard to duplicate without massive capital expenditures. They help us organize complex phenomena into coherent, understandable categories. SAMPLE LOGFRAME On the next page is an example of what a logframe might look like after concerns about the use of corporal punishment in a particular community have led a child rights organization to consider a programme intervention. We're Syrus Partners. The problem seems similar to ones you have worked on previously, so you approach solving it in the same way. Seeing reality as a "glass half full" means you're viewing it from the frame of an optimist. For example, some of the pillar mental models from economics include ideas like Incentives, Scarcity, and Economies of Scale. Adding them together can yield a useful mental checklist. (read more about multidisciplinary thinking). If they lose, it’s because they were unlucky.”. Whenever you’re trying to persuade a senior person to do something, always present 3 reasons. Software startups are huge beneficiaries of this rule. One property the drink should not have is an aftertaste. Mental models also guide your perception and behavior. What is your plan for completing those?”, Steve replied confidently “Well the top five are my primary focus but the other twenty come in at a close second. Mental models give you a perspective or a frame of mind with which to view the world. What it is, why it's important, and how to use it. This was one of the most important lessons I learned about decision making that I carried over to the business world. “I think that every single day there are many decisions that people make and they all have consequences. You listen first, then you decide, then you communicate it, and in close proximity with one another. When a network effect is present, the value of a product or service is dependent on the number of others using it.”. If you use percentages, the combined total must equal 100% at each break point. One of the key factors in reaching network effects is to build a distributed and decentralized model that shifts power back to the individual. An example of this concept is George Lakoff 's "Don't Think of an Elephant!" Characteristic of OT activities in psychiatric setup- ... Occupational therapist uses different frames and approaches to deal with mental health issues. I’ve modified this from 5 to 3 priorities, which forces me to focus further. In 1955, he came up with the idea that frames were the parts of our mind that helped us differentiate between things. Often times, I find that decision making speeds up when clarifying the DRI to heighten ownership and accountability. Examples of mind frame in a Sentence. What will happen to the asset’s price if the consensus turns out to be right, and what if I’m right. Once the Top 5 planning session was over, Warren then asked “but what about these other 20 things on your list that you didn’t circle? 3. Most people can manage their mental illness with medication, counselling or both. The first priority being the most important thing. 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