It is only in our decisions that we are important ~ Jean Paul Sartre
The first lesson of decision-making is to not judge a decision by the outcome. Tough start.
That’s because making smart decisions is a process involving probabilities, which means sometimes the odds go against you no matter how well you think things through. You improve your decision-making process by learning from outcomes that go wrong, but weren’t simply due to bad luck (wicked hangovers don’t count as bad luck, fyi).
From there, the way to further improve your outcomes is by increasing the quality of the information that you plug into the process. How, you ask?
Developing mental models
According to Shane Parrish, mental models are chunks of knowledge from different disciplines that can be simplified and applied to better understand the world. You use these chunks of knowledge to remove “blind spots” in an effort to get a better view of reality, thereby making better decisions.
The result?
We think better. And 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.
Think better and then you’re set, right?
Stupid is as stupid does
That doesn’t mean that otherwise intelligent people don’t make stupid decisions. We all do, and for a variety of reasons. I often seem to make stupid decisions for no reason at all.
Luckily, we can use intelligent preparation to minimize the stupidity and increase the odds of good decisions by developing an expansive knowledge of the world. Yes, even you (and me).
You’ve got to deal with a world that rewards specialization with the mindset of a generalist, which can be challenging. Parrish has recently updated his extensive and useful guide to this philosophy of decision making, and it’s well worth exploring.
The Ultimate Guide to Making Smart Decisions (Farnam Street)
