The Book That Will Help You Think Like A CEO“It’s kind of fun to sit there and outthink people who are way smarter than you are because you’ve trained yourself to be more objective and more multidisciplinary. Furthermore, there is a lot of money in it, as I can testify from my own personal experience.” – Charlie MungerBack in 1966, American psychologist Abraham Maslow––known internationally for his hierarchy of needs––wrote, “If the only tool you have is a hammer, it is tempting to treat everything as if it were a nail”. However, anyone who has ever fully committed to a project knows that a hammer often isn’t enough. The more tools you have at your disposal, the more likely you’ll use the right tool for the job — and get it done correctly.The same can be said for your way of thinking. The quality and efficiency of your outcome largely depend on your mental modes––meaning that you can go through life with one hammer or a myriad. The Great Mental Models: General Thinking Concepts is the first book in The Great Mental Models series, designed to upgrade your thinking with the best, most useful and powerful tools, so you always have the right one on hand. This volume details nine of the most versatile, all-purpose mental models you can use right away to improve your decision-making, productivity, and how clearly you see the world.Here’s what Noel thought:The Great Mental Models Volume 1 : General Thinking Concepts. By Rhiannon Beaubien & Shane Parrish“The biggest value of this book is how it provides a simple way to categorise thinking patterns. I know it can’t be developed overnight, because we also need experiences to build better tools for our minds. But, as a starter, reading is the best way to learn. In the opening of the book, Parrish explains his journey to learn more about mental models is a journey of acquiring wisdom. He believes thinking better is about finding simple processes that help us work through problems from multiple dimensions and perspectives, allowing us to better choose solutions that fit what matters to us. The skill of finding the right solutions for the right problem is one form of wisdom. But, thinking better is not about being a genius. It is about the processes we use to uncover the reality and the choices we make once we do.In summary, a good book to reinforce your existing thinking patterns but also a way to learn new mental models to improve your thinking.”Noel’s main takeaways:Education doesn’t prepare you for the real worldIn life and business, the person with the fewest blind spots wins––not the person with the most degrees. The biggest barrier to learning from the real world is ourselves and it’s hard to see our own blind spots. Our failure to update our perspective from having interacted with reality springs from three things: (1) not having the right perspective or vantage point, ((2) ego-endured denial and (3) distance from the consequences of our decisions.If we rely on our own/limited mental models we won’t see the full pictureThink of a forest.When a botanist looks at it, they may focus on the ecosystems, an environmentalist sees the impact of climate change, a forest engineer the state of the tree growth, a business person the value of the land. None of them are wrong, but neither are any of them able to describe the full scope of the forest. They use different mental models to interpret the forest. Learning the basics of the other disciplines would lead to a more well-rounded understanding that would allow for better initial decisions about managing the forest. True confidence of a territory cannot be faked. Take Himalayan Sherpas, for example. The sort of knowledge they have acquired can’t be gained quickly and it can’t be faked. It requires failure, as well as curiosity, an inner desire to learn, monitoring and feedback. This knowledge must be constantly replenished. Keeping a journal of your own performance is the easiest and most private way to give self-feedback.Second-order thinkingThinking further ahead and holistically, not just the immediate impact of our actions but the subsequent (second and third-order impact) impacts. Otherwise known as he Law of Unintended Consequences. During their colonial rule of India, the British government began to worry about the number of venomous cobras in Delhi. To reduce the numbers, they instituted a reward for every dead snake brought to officials. In response, Indian citizens dutifully complied and began breeding the snakes to slaughter and bring to officials. The snake problem was worse than when it started because the British officials didn’t think at the second level.Inversion thinkingApproach a problem from the opposite end of the starting point. Start by assuming what you are trying to prove is true and consider what else would need to be true to make it so. Then, instead of aiming for your goal, consider what you need to avoid and then see what options are left over. As the author puts it; “Think of it this way: Avoiding stupidity is easier than seeking brilliance. Combining the ability to think forward and backward allows you to see reality from multiple angles.”Noel Winters & Stuart FitzgeraldSummary“In life and business, the person with the fewest blind spots wins.” Removing blind spots requires having a better understanding of reality. You can improve your understanding of how the world works by using mental models to shape how you think, understand, and form beliefs. This is what non-fiction books should aspire to be like. Informative, concise, universal, practical, visual, sharing stories and examples for context. The Great Mental Models Vol. 1 consists of nine mental models (the tools used to describe the way the world works) which can be used to better understand the world and make smarter decisions. It references numerous books and other resources where you can dig deeper. A must-read if you’re into universal multi-disciplinary thinking.Financial advisor to the Irish community pharmacy sector, food & beverage, SME and retail.Financial advisor to the Irish community pharmacy sector, food & beverage, SME and retail. If you’re looking for advice from some of the very best accountants in Ireland, we’re here to help. No two cases are the same, and we like to focus on getting to know our clients, so that we can tailor our services to meet your specific needs.Find out more about how our team can help by getting in touch.Further Articles A leadership book we’d actually recommendPublished by the Fitzgerald Power team. Books about business often lay in murky waters.… Read Blog The Business Book That Holds Up 21 Years LaterBook review by Stuart Fitzgerald. “Indeed, the real question is not, “Why greatness?” but… Read Blog
