Everyone, everywhere, at some point in their lives, has believed something that was wrong. This isn’t new. People used to think the Earth was flat. Or that the Earth was the center of the universe. Or that bloodletting was an effective medical practice. And so on.
Forming an incorrect belief isn’t a defect in humanity. But holding onto that belief is.
Most people are adept at first-order thinking, able to anticipate the immediate effects of their actions. It’s a basic skill we must develop in adolescence. First-order thinking is simple and quick. There are sometimes benefits to speed in decision-making. But it’s immensely limiting, and often counterproductive, to move swiftly without much regard for direction. That’s why we need second-order thinking.
Second-Order Thinking Read More »
Decision frameworks take many forms, but one that is helpful in evaluating the speed and severity of a decision is the one-way or two-way door framework. This framework asks a simple question: is my decision reversible?
One-Way and Two-Way Doors Read More »
In the world of sports, we easily understand that someone has to be in a certain type of shape to compete in a specific event. And we acknowledge that applies to other professional endeavors. But it’s oftentimes overlooked that the same principles also apply to our personal lives.
What are You in Shape For? Read More »
Fees are the cost of getting something; fines are penalties for doing something wrong. The distinction between the two is important because both fees and fines provide feedback loops that influence our behavior. When we get them confused, we stop doing that which might actually benefit us.
In 2009, Amazon acquired Zappos for roughly $1.2 billion. The story of Zappos’ success is full of hilarity and wonder, but one factor in particular stands out: inversion. Inversion gave Zappos an edge against other retailers by focusing on—and succeeding at—what others weren’t.
How Zappos Capitalized on Inversion Read More »
Being scared and being fearful sounds like the same thing, but they might have more differences than first meets the eye. One is experienced quickly—we acquired it through countless iterations of evolution. The other is slow and purposeful, even though we oftentimes don’t view it that way.
But the linguistic distinction isn’t important. The phenomena are. We can be excused for a reactionary response outside of our control. But much resides within our area of control. It may not always be easy; nevertheless, the choice to surmount our fears is ours.
A Scare and a Fear Read More »
We live in a complex world full of extraordinary detail and interconnections. It is easy for us to get overwhelmed in an environment like this. But Occam’s Razor is the antidote. The brilliance of Occam’s Razor lies within its simplicity and efficiency. In a world full of noise, Occam’s Razor helps us make good decisions quickly.
Occam’s Razor: Champion of Simplicity Read More »
First principles thinking is a methodology for removing assumptions from foundational factual knowledge. Cutting through the noise to the underlying truth allows us to build off a sturdy foundation. Failure to do so leaves us on shaky ground.
First Principles: Building On a Strong Foundation Read More »
The quality of our decisions significantly impacts our lives. Good decisions keep us out of trouble while bad decisions mire us in misery. Or at least that’s the common perception. Like most things in life, it’s more complicated than that. Judging the quality of a decision requires more effort than just observing the outcome. Good decisions can yield undesirable outcomes and bad decisions can produce desirable ones. Some factors that we must consider when judging a decision are the amount of information we had at the time of the decision, the quality of that information, the decision making process, likelihoods of certain outcomes, and, of course, luck.
The Decision-Making Process: More Than Just Outcomes Read More »