Munger Mondays in May: Latticework of Mental Models

Posted by Jesse Kliza in Business, Leadership, Management

“You must know the big ideas in the big disciplines and use them routinely–all of them, not just a few. Most people are trained in one model–economics, for example–and try to solve all problems in one way. You know the old saying: ‘To the man with a hammer, the world looks like a nail.’ This is a dumb way of handling problems.” – Charles Munger

The idea of a diverse background and multiple mental models is one that has always appealed to me. In college I studied Information Technology and Neuroscience. I’ve always been fascinated with the brain. It’s such an incredible creation, and I always felt that if I could understand the brain…the thing that governs thought and decision making, that it would be of great benefit to me in all aspects of life.

Munger’s concept of a latticework of mental models is beautiful:

“What you need is a latticework of mental models in your head. And, with that system, things gradually get to fit together in a way that enhances cognition.” – Charles Munger

This is absolutely true. When reading this quote, I was immediately reminded of one of my professors saying: “Neurons that fire together wire together.”

That’s why Munger’s above quote which speaks of not only knowing, but also using all of the big ideas and concepts from the major disciplines routinely, is in my opinion such a gem of wisdom. By using them together routinely, you enhance your ability to analyze and assess problems by quite literally creating a latticework of your mental models. It’s one thing to know them all, and to pull them out when you think that they apply. However, to go through the exercise of evaluating things by forcing yourself to think about them in relation to as many different models as you can will help you build the latticework that Munger speaks about.

Munger identifies many of the basic concepts that one should be familiar with such as: Basic Arithmetic, Compounding Interest, Permutations, Combinations, Probability, Accounting, Bell Curve Model, Backup Systems, Breakpoints, Critical Mass, Basic/Practical Psychology, Psychology of Misjudgment, Microeconomics, and Advantages/Economies of Scale.

I’m going to challenge myself to brush up on all of these concepts and more, and begin consciously evaluating things using as many of them as possible.

I think this quote from Munger best sums up why so many people fail to achieve this level of discipline in analysis and assessment:

“However, my particular approach seldom seems to get through, even to people of immense ability. Things usually die after going to the “Too-Hard” pile.” – Charles Munger

Don’t let hard work discourage you from being the best you can be.

My Community Quote of the Day

Posted by Jesse Kliza in Business, Leadership, Management

“There’s a reason that the words Community and Communication are so similar.” – Me

Think about it…

Munger Mondays in May

Posted by Jesse Kliza in Business, Entrepreneurship, Leadership, Management, Uncategorized

Inspired by this phenomenal post by Marc Andreessen, for the month of May I’m planning on doing a post every Monday highlighting some of my favorite bits of wisdom from Charles Munger.

After reading Marc’s post, I ordered Poor Charlie’s Almanac a few days later and I’m loving it.

Timeboxing for Personal Productivity

Posted by Jesse Kliza in Business, Entrepreneurship

I’ve started using the timeboxing method for managing my seemingly never ending to-do list. I have to say it’s a great way to get things done if you have a perfectionist streak in you.

I estimate the amount of time it should take me to complete something (it can be a small part of a larger task), start the timer and work on it and ONLY it until the time is up.

Two great tools that I use are this countdown timer that runs in a browser tab:

http://www.theinsomniacsociety.com/timer.html

and this distraction free writing environment (if applicable):

http://they.misled.us/dark-room

Next up to try is RescueTime. I’ve known about it for a while now, but I’ve just not gotten around to checking it out. If you are using it, I’d love to hear what you think.

Only so many hours in a day…

What’s Next in Marketing and Advertising?

Posted by Jesse Kliza in Business, Customer Service, Marketing

Paul Isakson put together an excellent presentation called “What’s Next in Marketing + Advertising”.

Check it out:

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Management Innovation: Yes, your employees have brains!

Posted by Jesse Kliza in Business, Entrepreneurship, Leadership, Management, SANE Innovation

Henry Ford was once quoted to have asked the question: “Why is it that whenever I ask for a pair of hands, a brain comes attached?”

Too many companies ask this same question everyday. They may not verbalize it, but they ask it day in and day out by NOT asking the people that comprise their organizations questions like: “What do you think? Do you agree? How could we do this better?”

Ask is the second step in the SANE approach to innovation. Once you’ve set expectations that you want everyone to be involved in innovation, you have to start asking. Ask your team members to think outside the box. Ask them for their opinions. Ask them if they argee with you, rather than just telling them what YOU think.

Ask, Ask, Ask. “You have not, because you ask not.”

There are far to many mediocre “me too” companies out there playing catch up, with nothing innovative to show for themselves.

If you want innovation to become part of your organization’s culture, it has to start with YOU (the CEO, manager, team leader, etc). It starts with management innovation. It starts with humbleness, and waking up to the fact that you aren’t better than anyone else. By hiring other people, you’ve already admitted you can’t do everything by yourself, so why shoot yourself in the foot by insisting that you always know best?

Ford was an innovative man in his time, but the kind of thinking reflected in his quote above will only get you where Ford Motor Company is today – struggling and chasing a competitor that “gets it” (Toyota), because their competitor believes in the value of every individual employee.

Yes, your employees have brains! Why not encourage them to use them, rather than stifle innovation by reducing them to a role or a cog? Treat your team members/employees with the respect they deserve, ask them for their opinions and ideas, and start creating a culture of innovation today.