Mental Models & Tools: Main

personal995
Jun 30, 2024
7 min read

Updated: Dec 6, 2024

Be better prepared for decision making.

Introduction

A Mental Model is a thinking aid for you to have at the ready, often multiple in combination, for making better decisions.

We each have a unique biology, experiences, knowledge bases, mindsets, ideas and perspectives. This makes the world more beautiful and interesting. But it also makes each of us likely to be fallible, irrational and completely incorrect from time to time. Studying and frequently using these, should help you do so less often.

The Mental Models & Tools are indexed below to assist you to bring them together into a more useful form.

Index

Maxims and Rules of Thumb: General principles to use as overarching guidelines, offering concise, timeless wisdom for decision-making and behavior. These Maxims and Rules of Thumb are to provide useful reminders, usually in the form of pithy sayings.
Heuristics, Biases & Fallacies: Cognitive shortcuts and systematic errors in thinking that influence decision-making and judgment, often leading to deviations from rationality and logical reasoning. These Heuristics, Biases & Fallacies are to assist with preventing cognitive errors in judgement.
Multi-disciplinary Models: An approach that integrates mental models from math and science, engineering and design, and finance and business to solve complex problems through diverse perspectives and methodologies. These Multi-disciplinary Models are to assist to provide the great ideas of the main subjects.
Metacognitive Strategies: These involve thinking about and regulating one's own cognitive processes, enhancing self-awareness and optimizing learning and problem-solving abilities. They focus on internal processes of cognition and self-reflection. These Metacognitive Strategies are to provide tools for objectivity and analysis of the self.
Learning and Memory Aids: Techniques designed to enhance the acquisition, retention, and recall of information, improving learning efficiency and effectiveness. These Learning and Memory Aids are to assist with learning and knowledge absorption.
Communication Tools: Methods for conveying and receiving information effectively, including verbal and non-verbal techniques, fostering clear understanding and collaboration. These Communication Tools are to assist with conveying ideas, knowledge and understanding.

1. Maxims and Rules of Thumb

General Principles to use as overarching guidelines, offering concise, timeless wisdom for decision-making and behavior. These Maxims and Rules of Thumb are to provide useful reminders, usually in the form of pithy sayings.

5 Examples:

Measure twice, cut once: Double-checking your work or decisions can prevent costly mistakes later on.
Trust, but Verify: Rely on information and advice, but verify facts and assumptions independently.
Sleep on It: Take time to reflect or delay major decisions to gain clarity and avoid impulsive choices.
Start with the End in Mind: Clarify your desired outcome before making decisions to ensure alignment with long-term goals.
Avoid Analysis Paralysis: Balance thorough consideration with timely action to avoid getting stuck in overthinking.

Full list...

2. Heuristics, Biases & Fallacies

Cognitive shortcuts and systematic errors in thinking that influence decision-making and judgment, often leading to deviations from rationality and logical reasoning. These Heuristics, Biases & Fallacies are to assist with preventing cognitive errors in judgement.

5 Examples:

Availability Heuristic: People tend to overestimate the likelihood of events based on their availability in memory. Events that are more memorable or recent are perceived as more common or likely.
Confirmation Bias: The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.
Anchoring Bias: The common human tendency to rely heavily on the first piece of information (the "anchor") when making decisions.
Dunning-Kruger Effect: A cognitive bias wherein people with low ability at a task overestimate their ability, while those with high ability underestimate their competence.
Post Hoc Fallacy: A logical fallacy that occurs when it is assumed that because one event followed another, the first event must have caused the second.

Full list...

3. Multi-disciplinary Models

An approach that integrates mental models from decision making, math, science, engineering, design, finance and business to solve complex problems through diverse perspectives and methodologies. These Multi-disciplinary Models are to assist to provide the great ideas of the main subjects.

Mental Models in General Decision Making 5 Examples:

First Principles Thinking - Breaking down complex problems into their most basic elements to understand and solve them from the ground up.
Pareto Principle (80/20 Rule) - Recognizing that roughly 80% of effects come from 20% of causes, helping prioritize efforts on the most impactful activities.
Second-Order Thinking - Anticipating the long-term consequences and ripple effects of decisions, not just the immediate outcomes.
Occam's Razor - When faced with competing hypotheses, the simplest solution or explanation is often the correct one.
Circle of Competence - Focusing on areas within your expertise and understanding, and avoiding decisions outside of it.

Full list...

Mental Models in Math & Science 5 Examples:

Bayesian Thinking - Updating the probability of a hypothesis as more evidence becomes available, enhancing decision-making under uncertainty.
Falsifiability - Ensuring a hypothesis can be disproven, which is essential for scientific theories to be testable and reliable.
Compounding - Understanding how small, incremental growth can accumulate over time to produce significant effects, crucial in finance, population growth, and many natural processes.
Inversion - Thinking about what you want to avoid or prevent, and then planning to avoid those outcomes, to improve decision-making.
System Dynamics - Understanding how complex systems behave over time, including feedback loops, delays, and nonlinearity.

Full list...

Mental Models in Engineering & Design 5 Examples:

Failure Mode and Effects Analysis (FMEA) - Systematically evaluating potential failure points in a process or design to improve reliability and safety.
Redundancy - Incorporating multiple elements that serve the same function to increase the reliability and safety of a system.
Margin of Safety - Incorporating a buffer or safety factor into designs or decisions to ensure reliability and mitigate the risk of failure under uncertain or unexpected conditions.
Modular Design - Designing systems with interchangeable components to improve flexibility, scalability, and maintainability.
Root Cause Analysis - Identifying the fundamental cause of a problem to effectively address and prevent it in the future.

Full list...

Mental Models in Finance & Business 5 Examples:

Discounted Cash Flow (DCF) - Valuing an investment based on its expected future cash flows, discounted to present value, to inform investment decisions.
Competitive Advantage - Valuing an investment based on its expected future cash flows, discounted to present value, to inform investment decisions.
Economies of Scale - Reducing per-unit costs as production scales up, enhancing profitability and market competitiveness.
Network Effects - Understanding how a product or service becomes more valuable as more people use it, driving growth and market dominance.
Creative Destruction - The process where new innovations and technologies replace outdated ones, leading to economic growth but also the obsolescence of existing industries or products.

Full list...

4. Metacognitive Strategies

These involve thinking about and regulating one's own cognitive processes, enhancing self-awareness and optimizing learning and problem-solving abilities. They focus on internal processes of cognition and self-reflection.

5 Examples:

Self-Monitoring - Self-monitoring involves observing and regulating one's behavior, thoughts, and emotions to gain insight into oneself and improve self-awareness and self-regulation skills.
Self-Regulation - Self-regulation refers to the ability to manage and control one's thoughts, emotions, and behaviors in alignment with personal goals and situational demands, fostering adaptability and emotional stability.
Reflection - Reflection involves thoughtful contemplation and examination of one's experiences, actions, and beliefs to gain insight, learn from past experiences, and make informed decisions for personal growth and development.
Metacognitive Journaling - Metacognitive journaling is the practice of writing about one's thoughts, reflections, and the process of learning itself, aiming to enhance self-awareness, improve problem-solving skills, and deepen understanding of one's own cognitive processes.
Cognitive Restructuring - Cognitive restructuring involves identifying and challenging negative or unhelpful thought patterns, replacing them with more balanced and constructive ways of thinking to promote emotional well-being and adaptive behavior.

Full list...

5. Learning and Memory Aids

Techniques designed to enhance the acquisition, retention, and recall of information, improving learning efficiency and effectiveness. These Learning and Memory Aids are to assist with learning and knowledge absorption.

5 Examples:

Spaced Repetition - A technique that involves reviewing information at increasing intervals to enhance long-term retention. It capitalizes on the psychological spacing effect.
Self-Explanation - Explaining concepts or problems to oneself in detail to reinforce understanding and memory encoding.
Visualization - Creating mental images or diagrams to represent information. This method leverages the brain’s ability to remember visual data better than abstract concepts.
Elaborative Rehearsal - Deepening the connection to new information by relating it to knowledge already stored in memory. This involves explaining and describing ideas with many details.
Method of Loci (Memory Palace) - Associating items to be remembered with specific locations in a familiar place, like a house or street, to mentally navigate and recall them.

Full list...

6. Communication Tools

Methods for conveying and receiving information effectively, including verbal and non-verbal techniques, fostering clear understanding and collaboration.

5 Examples:

Active Listening - Fully concentrating, understanding, responding, and remembering what the other person is saying. This involves not just hearing words but also understanding the speaker's intent and emotions.
Nonverbal Communication - Nonverbal communication involves understanding and conveying messages and emotions through body language, facial expressions, gestures, and other physical cues, complementing or substituting verbal communication to enhance understanding and interaction.
Clear and Concise Messaging - Communicating in a straightforward and direct manner without unnecessary information. This helps ensure that the message is easily understood and retained.
Empathy - Understanding and sharing the feelings of others. Empathetic communication involves recognizing others' emotions and responding in a way that is supportive and validating.
Feedback - Providing constructive and timely responses to others’ messages or actions. Effective feedback is specific, actionable, and focused on behaviors rather than personal attributes, helping to improve performance and understanding.