MentalMental Models l

A mental model is the specific thought process used to examine a problem.

A map cannot perfectly capture all of reality.
A map is outdated moment it is created. It does not reflect changes over time.
Key benefit is reducing complexity to simplicity via abstraction.
When we read something we are trusting the author to digest large amounts of information and convey to us. But many things are lost in translation.
Need to understand carefully the limits of the map and then explore carefully.
“Remember all models are wrong; the practical question is how wrong do they have to be to not be useful.” – George Box
Make sure to evaluate the cartographer. What’s their motives?
A cautionary tale is what can happen when the faith in the model influences the decisions we make in the territory. Example: EPS must be met by CEOs

Model Management:

As more people know your model to manipulate, they will not use them
Models will be adopted by others, removing the “secret sauce”
Model may be useful in limited settings (i.e. a Factory in a city of 100,000)
We need to do the mental hard work to see if the map agrees with the territory.
We run into trouble when the map is our only source of knowledge and we assume territory is the same if a couple of aspects matches the map.
Do not mistake map for reality. Need to have feedback loops updating the map

Source: The Great Mental Models Vol 1.

The most dangerous thing is skimming and assuming you are competent. It is important to drink deep so you are sober from your knowledge.
Knowledge keeps getting updated, and so must you.
You need to be curious, have a desire to learn, monitor and obtain feedback.
Most of us are much worse drivers, lovers, managers and traders than we think we are
We also need to know when we are outside of our circle of competence:
- Obtain the basics – but be humble
- Talk to someone whose circle of competence is strong. But make sure you ask thoughtful questions. Also probe to see where their circle of competence ends.
- Use a broad understanding of your mental models
Try to see if you can test your theory and prove it is false. If you cannot, it is hard to know if it is true.

Source: The Great Mental Models Vol 1.