Judgement: Lessons
- personal995
- Jun 23, 2024
- 10 min read
Updated: Dec 6, 2024
Introduction
No one, knows everything. We all make mistakes. We are never correct the first time, every time. What was correct yesterday, can often be wrong tomorrow. Continual learning is the only way to progress.
STRATEGY OF ONE does not have all the answers, but it can help minimise missteps. These Lessons are actions, principles, rules of thumb, cautions and cognitive frameworks you can use to help avoid traps and build momentum through each stage of life.
Continually review and take what you need. Absorb the Lessons that align with your Goals, and make them a part of your internal 'operating system'.
Each Lesson has accompanying quotes from great minds that can help us symbolise and remember the Lesson. That way we can more easily draw it from our memory as required.
The portrait that partners each quote is aimed to make you feel accountable. The individual lived, experience and made the effort to share the quote you are benefitting from. Now you can honour them by living up to it in your life and work.
Process
Review these Lessons as and when it best serves you to do so:
Review with the aim of prevention in mind. To avoid having to learn it the hard way yourself.
Review if you are stuck on a specific phase or step.
Review if you are making repetitive errors.
Review if you need inspiration and motivation.
Review if you need to review or reconstruct your Models & Theories.
Review if you are looking for inspiration for Values or Goals.
Absorb and action the Lessons:
Document the next most important Lessons for you to learn in your Action Plan.
Write them in your journal, if you journal.
Screenshot them and save them on your phone or computer background.
But most importantly, put them into action.
Whatever the Lesson you discover that you need to learn, whether positive or negative, it doesn't really matter. Again, what matters is what you do next.
Continually learn, continually improve and move forward.
Lessons
1. Embrace Intellectual Humility
Recognize that no one has all the answers, and be open to learning from others and revising your beliefs based on new evidence or insights. Intellectual humility fosters a growth mindset and a willingness to consider alternative perspectives.
"Real knowledge is to know the extent of one's ignorance."
Confucius, Chinese Philosopher (551 – 479 BCE)
2. Cultivate Curiosity
Foster a natural curiosity about the world around you, and actively seek out new information and experiences. Curiosity fuels lifelong learning and helps expand your knowledge base, enhancing your ability to make informed judgments.
"The important thing is not to stop questioning. Curiosity has its own reason for existing."
Albert Einstein, Theoretical Physicist (1879 - 1955)
3. Practice Empathy
Develop the ability to understand and empathize with the perspectives and experiences of others. Empathy promotes deeper connections and fosters a more nuanced understanding of complex issues, leading to more empathetic and well-informed judgments.
"I believe empathy is the most essential quality of civilization."
Roger Ebert, American Film Critic (1942 - 2013)
4. Master Critical Thinking Skills
Hone your critical thinking skills, including logical reasoning, problem-solving, and analytical thinking. Critical thinking enables you to evaluate information objectively, identify biases, and make sound judgments based on evidence and reasoning.
"The first rule is that you can't really know anything if you just remember isolated facts and try and bang 'em back. If the facts don't hang together on a latticework of theory, you don't have them in a usable form."
Charlie Munger, American Businessman (1924 - 2023)
5. Balance Intuition with Analysis
Recognize the value of both intuitive insights and analytical reasoning in decision-making. Balance gut feelings and intuition with evidence-based analysis to make well-rounded and informed judgments that consider both rational and emotional factors.
"The intellect has little to do on the road to discovery. There comes a leap in consciousness, call it Intuition or what you will, the solution comes to you and you don't know how or why."
Albert Einstein, Theoretical Physicist (1879 - 1955)
6. Develop Self-Awareness
Take the time to reflect on your own biases, preferences, and decision-making tendencies. Self-awareness allows you to recognize potential blind spots and biases, empowering you to make more objective and self-aware judgments.
"Know thyself."
Socrates, Greek Philosopher (470 – 399 BCE)
7. Practice Mindfulness
Cultivate mindfulness practices to enhance your present moment awareness and focus. Mindfulness helps reduce cognitive biases by promoting clarity of thought, emotional regulation, and the ability to make decisions with greater presence and intention.
"The present moment is the only time over which we have dominion."
Thích Nhất Hạnh, Vietnamese Monk (1926 - 2022)
8. Practice Decision-Making Under Pressure
Seek opportunities to practice decision-making under pressure, such as simulations or high-stakes situations. Practicing decision-making under pressure helps build resilience, confidence, and the ability to make sound judgments even in challenging circumstances.
"Courage is not the absence of fear, but the triumph over it."
Nelson Mandela, South African Statesman (1918 - 2013)
9. Identify and Operate Within Your Circle of Competence
Recognize your areas of expertise and limitations, and focus on making judgments and decisions within your circle of competence. Operating within your circle of competence, as advised by Buffett and Munger, allows you to leverage your strengths and expertise, leading to more accurate and informed judgments.
"The size of your circle of competence is not very important; knowing its boundaries, however, is vital."
Warren Buffett, American Businessman (1930 - )
10. Implement Bayesian Thinking
Adopt a Bayesian approach to decision-making, which involves updating beliefs and probabilities based on new evidence. Bayesian thinking allows for more accurate and dynamic judgment, as it incorporates new information into decision-making processes over time.
"Probability is the very guide of life."
Marcus Tullius Cicero, Roman Statesman (7 - 43 BCE)
11. Utilize Red Team Analysis
Employ red team analysis—a structured process of challenging assumptions and exploring alternative perspectives—to stress-test judgments and decisions. Red team analysis helps uncover blind spots, identify vulnerabilities, and strengthen the robustness of judgments through rigorous examination.
"The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge."
Daniel J. Boorstin, American Historian (1914 - 2004)
12. Apply the Precautionary Principle
When faced with uncertainty or potential risks, err on the side of caution by applying the precautionary principle. This principle advises taking preventive action to mitigate potential harm, even in the absence of definitive evidence, to safeguard against adverse outcomes.
"In case of doubt, it is better to abstain from action."
Napoleon Bonaparte, French Emperor (1769 - 1821)
13. Premortem Analysis
Conduct premortem analysis—an exercise in which you imagine that a decision has failed and identify potential reasons for its failure—to identify potential pitfalls and blind spots before making a decision. Premortem analysis helps mitigate overconfidence and encourages more thorough consideration of risks.
"By failing to prepare, you are preparing to fail."
Benjamin Franklin, American Statesman (1706 - 1790)
14. Paradox of Choice
Recognize the limitations of excessive choice and complexity in decision-making. Embracing the paradox of choice involves simplifying decisions when possible, focusing on key priorities, and avoiding decision paralysis to enhance clarity and effectiveness in judgment.
"Simplicity is the ultimate sophistication."
Leonardo da Vinci, Italian Polymath (1452 - 1519)
15. Jacobi's Inversion Method
Apply Jacobi's inversion method, a mathematical technique used to invert matrices, as a metaphor for challenging assumptions and flipping perspectives. This tactic encourages considering problems from multiple angles and reframing them to gain new insights.
“All I want to know is where I’m going to die, so I’ll never go there.”
Charlie Munger, American Businessman (1924 - 2023)
16. 5 Whys Technique
Employ the 5 Whys technique, popularized by Toyota, to uncover the root cause of problems or issues. By repeatedly asking "why" to dig deeper into the underlying reasons behind a situation, individuals can identify fundamental factors that may affect judgment and decision-making.
“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”
Abraham Lincoln, American Statesman (1809 - 1865)
Cautionary Lessons
1. Overconfidence Bias
Beware of overestimating your abilities or the accuracy of your judgments. Overconfidence can lead to complacency and blind spots, preventing you from considering alternative perspectives or adequately evaluating risks.
"None are more fallible than those who are sure they're right."
Marie von Ebner-Eschenbach, Austrain Writer (1830 - 1916)
2. Confirmation Bias
Guard against the tendency to seek out information that confirms your preexisting beliefs or biases while ignoring contradictory evidence. Confirmation bias can limit your ability to objectively assess information and make well-informed decisions.
“The discovery of instances which confirm a theory means very little if we have not tried, and failed, to discover refutations. For if we are uncritical we shall always find what we want: we shall look for, and find, confirmation, and we shall look away from, and not see, whatever might be dangerous to our pet theories. In this way it is only too easy to obtain what appears to be overwhelming evidence in favour of a theory which, if approached critically, would have been refuted.”
Karl Popper, Austrian-British Philosopher (1902. -1994)
3. Status Quo Bias
Be cautious of clinging to the status quo or familiar routines out of comfort or fear of change. Status quo bias can inhibit innovation and growth, preventing you from exploring new opportunities or adapting to evolving circumstances.
"Progress is impossible without change, and those who cannot change their minds cannot change anything."
George Bernard Shaw, Irish Playwright (1856 - 1950)
4. Groupthink
Avoid succumbing to groupthink—the tendency to prioritize harmony and consensus over critical thinking and dissenting viewpoints. Groupthink can stifle creativity and lead to flawed decisions, as individuals may hesitate to challenge group norms or express independent opinions.
“For it is dangerous to attach one's self to the crowd in front, and so long as each one of us is more willing to trust another than to judge for himself, we never show any judgement in the matter of living, but always a blind trust, and a mistake that has been passed on from hand to hand finally involves us and works our destruction. It is the example of other people that is our undoing; let us merely separate ourselves from the crowd, and we shall be made whole. But as it is, the populace,, defending its own iniquity, pits itself against reason. And so we see the same thing happening that happens at the elections, where, when the fickle breeze of popular favour has shifted, the very same persons who chose the praetors wonder that those praetors were chosen.”
Lucius Annaeus Seneca, Roman Philosopher (4 BCE - 65 AD)
5. Anchoring Bias
Be mindful of fixating on initial information or reference points (anchors) when making judgments or decisions. Anchoring bias can distort your perception of subsequent information, leading to skewed assessments and suboptimal choices.
"The first principle is that you must not fool yourself—and you are the easiest person to fool."
Richard Feynman, American Theoretical Physicist (1918 - 1988)
6. Sunk Cost Fallacy
Resist the temptation to continue investing resources (time, money, effort) into a failing course of action simply because you've already committed significant resources to it. Sunk cost fallacy can cloud judgment and prevent you from cutting your losses and pursuing more promising opportunities.
"The difficulty lies not so much in developing new ideas as in escaping from old ones."
John Maynard Keynes, English Economist (1883 - 1946)
7. Availability Heuristic
Be wary of relying too heavily on easily accessible or vivid examples when making judgments or assessing probabilities. The availability heuristic can lead to inflated perceptions of risk or likelihood based on memorable but statistically rare events.
“The availability heuristic, like other heuristics of judgment, substitutes one question for another: you wish to estimate the size of a category or the frequency of an event, but you report an impression of the ease with which instances come to mind. Substitution of questions inevitably produces systematic errors.”
Daniel Kahneman, Israeli-American Cognitive Scientist (1934 - 2024)
8. Emotional Bias
Guard against allowing emotions—such as fear, anger, or attachment—to unduly influence your judgment and decision-making process. Emotional bias can impair rational thinking and lead to impulsive or irrational choices.
""Emotion often decides when reason fails."
P.D. James, English Author (1920 - 2014)
9. Over-reliance on Authority
Avoid blindly deferring to authority figures or experts without critically evaluating their arguments or credentials. Over-reliance on authority can inhibit independent thinking and lead to uncritical acceptance of flawed or biased information.
"Do not believe in anything simply because you have heard it. Do not believe in anything simply because it is spoken and rumored by many. Do not believe in anything simply because it is found written in your religious books. Do not believe in anything merely on the authority of your teachers and elders. But after observation and analysis, when you find that anything agrees with reason and is conducive to the good and benefit of one and all, then accept it and live up to it."
Siddhartha Gautama, The Buddha (6th or 5th century BCE)
10. Neglecting Context
Avoid making decisions in isolation or without considering the broader context or implications. Neglecting context can result in shortsighted decisions that fail to account for interconnected factors or unintended consequences.
"Context is everything."
Wendell Berry, American Author (1934 - )
11. Rigidity
Guard against rigid thinking or inflexible attitudes that prevent you from adapting to new information or changing circumstances. Rigidity can hinder creativity and innovation, limiting your ability to explore alternative solutions or perspectives.
"Flexibility is the key to stability."
John Wooden, American Basketball Coach (1910 - 2010)
12. Hubris
Beware of excessive pride or arrogance in your abilities, as it can blind you to your limitations and lead to costly mistakes. Hubris can erode trust and credibility, undermining your judgment and effectiveness as a leader or decision-maker.
"Pride goeth before destruction, and a haughty spirit before a fall."
Christian Bible Proverb
13. Tunnel Vision
Be mindful of tunnel vision, where you become excessively focused on a single aspect or goal to the exclusion of broader considerations. Tunnel vision can lead to narrow-mindedness and prevent you from seeing the bigger picture or exploring alternative paths.
"Vision is the art of seeing what is invisible to others."
Jonathan Swift, Irish Author (1667 - 1745)
13. Failure to Delegate
Avoid micromanaging or shouldering excessive responsibility without delegating tasks or decisions to others. Failure to delegate can lead to burnout and decision fatigue, diminishing your ability to make effective judgments and prioritize effectively.
"The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint to keep from meddling with them while they do it."
Theodore Roosevelt, American Statesman (1858 - 1919)
By reviewing these cautionary lessons above you can heed their warning adjust to suit, deepen your awareness of where you can improve and compound your results moving forward.
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