Uncommon sense

Charlie Munger on uncommon sense…

Competence – you can only be trusted as competent if you clearly understand the limits of your competence. The great danger of experts is they forget the limits of their expertise – “it is better to trust a man of 130 IQ who thinks he is 125 IQ, than to trust a man of 180 IQ who thinks he is 200 IQ” Warren Buffett

Inverting – if you want to make life better, think of what you would do to make life worse. Charlie was an aviation meteorologist during WWII. His task was to give weather briefings to pilots. His role was unclear until he thought of the inverted perspective “if I wanted to kill pilots as a meteorologist, what could I do? Flying with iced wings, flying in conditions they will be unable to land.” This really clarified for him the important aspects of his role in keeping pilots alive. In our own lives, asking “how would I really make my life worse?” can be a valuable perspective on what really matters.

Collector – be a collector. How many collectors do you know who are unhappy? Identify things or experiences that you enjoy collecting and become a curator of your collections.

Integrate ideas between domains – most people focus on details within the idea (especially academics), few people look at the interaction between big ideas. That’s where there’s not much incentive in academics, but it’s very interesting for investing money.

Occam’s razor- go for simple… with a proviso that was initially shared by Einstein “Everything should be made as simple as possible but not more so” Einstein. Anywhere there is a “lollapalooza result” (Charlie’s term for a hugely positive and rapid outcome)… look for a confluence of causes. Academic experts find one cause. To a man with a hammer, everything looks like a nail. There are rarely just single causes for high impact outcomes.

The problems of Social science– all chemists can answer “where do the rules of chemistry not apply?” In the high temperature plasma state. how many social scientists can answer “if you want to sell more should you raise or lower the price?” Where does this rule not apply? 1 in 50 will say “luxury goods!” Many social scientists forget to think of the exceptional cases.

Update… a summary of this post in a #shorts video

More on Charlie Munger’s thinking process

Charlie Munger’s Inverse Thinking Process

Short term Happy vs Long term Fulfilled

Subtraction

Addition

More, more, more… more projects, more goals, more connections… is the path to overwhelm.

Subtraction

Less, less, less… less projects, less goals, less connections… is the path to focus and renewal and energy.

I heard Mathew McConnachy in an interview yesterday. He said that back 10 years ago he was a movie actor, he had a production company, he had a music label and was promoting two artists… and he realized he was spread very thin… he was getting a C in everything. He shared a moment where he received a phone call from his team in the production company… and when he saw the caller id… he went “ugh” and he didn’t want to answer.

He immediately called his lawyer and said “I need to close these businesses down”.

I loved his metaphor that you can’t get As on everything in life. If you have no strategy for focus, for subtraction, you will spread yourself so thin that you guarantee that your best grade is a C+…. and there may be areas in your life where that is painful to you.

Learning to Subtract

There is so much out there on how to focus, how to have discipline, how to make progress…  

There is a lot less help on how to Subtract:

  • Letting go of things.
  • Closing chapters.
  • Saying No.

Subtraction and the Mid Life Crisis

Here’s a recent video of mine where I speak to this challenge – and how the need to subtract becomes most acute in “mid life” from 35 to 55 years old.  Before 35 you tend not to have enough skill, reputation, competence…  you need to be open to almost all the opportunities that come your way.  At 35 if you have developed competence and a positive reputation, you will start to be overwhelmed by opportunities.  If you don’t learn a new skill – Subtraction – you will grow to become a bitter and frustrated old person.

If you liked this post, you will also like Meaningful Contribution or The ABCs of a Fulfilling Life: Action, Belief, Curiosity, Discipline, Energy and Friends.

How to Create an Abundance Mindset

Our mindset creates our experience of life. With a poor mindset, my experience of life will suffer. With a better mindset, my experience of life will be of greater joy and resourcefulness.

What is Mindset?

Your mindset is your collection of beliefs that shape your thought habits.  Thought habits affect how you think, what you feel, what you perceive and what you do.  Mindset impacts how you make sense of the world, and how you make sense of your own place in the world.

We don’t notice everything that our senses detect. Our subconscious filters most of our sensory input and only passes a small amount on to our conscious awareness. If I am looking for danger, my subconscious filters will pass on more anxiety creating inputs.  If I am looking for things to be grateful for, my awareness will receive more inputs that reflect that search.

Test it for yourself: If you have never seen it, check out the gorilla experiment. It blew me away when I first experienced it.

To change your habits, change your mind…

When reading the book “Atomic Habits” by James Clear, the most profound insight that I took from the book was that to really change our habits, we have to change our self identity.  If I think of myself as unfit, no matter how hard I work to build a fitness habit, I will always be on an uphill struggle.  If I can change how I think about myself first, the habit formation becomes less of a challenge… and it will stay with me.

The way we see the world shapes our experience of life. How to shift your mindset?

Social Media Strategies

I’ve started sharing my videos on Linkedin and Instagram as well as YouTube. I used to try to centralise all my video activity on youtube, but I don’t know if there is any benefit to that these days. Linkedin is a much more powerful business network… so I’ll let you know how this experiment goes.  I’ve embedded from Linkedin this time… does that work for your viewer?

Have a great week.

 

You Don’t have Time to Figure Everything Out on your Own

Life is too short to figure everything out on your own. 

Humans spend the years from birth to 12 learning how to survive.  Our parents have a vested interest in helping us develop the Stop there: we merely survive. 

We live in a highly complex society.  There is intense competition for status in whatever hierarchy you compete in. It doesn’t matter whether you choose to compete or not, society and humanity are designed to compete for resources.  It is not those born strong that rise to the top of status hierarchies in today’s human society.  It is those who learn to use their capacities most effectively and adapt quickly to changes in the environment.  

There are two ways we learn to make positive progress in this society – 1) our own experience, or 2) through the experiences of others.  Our own experience is a slow and expensive way of learning. 

If I am to choose to learn most effectively, through the experiences of others, I must learn the art of meaningful conversation. Through my work with Entrepreneurs’ Organisation forum and Vistage groups I have worked extensively over the last 15 years on creating the type of meaningful conversation that allows one to learn from the experiences of another.

I’m sharing 4 ideas that I took from Jordan Peterson’s book the 12 Rules for Life when I read it this year.

“Your current knowledge has neither made you perfect nor kept you safe”

Your knowledge is insufficient. You must accept this before you can converse philosophically, instead of pushing opinions, convincing, oppressing, dominating or joking.  

“Assume that the person you are listening to might know something you don’t”

It is necessary to respect the personal experience of your conversational partners. You must assume that they have reached careful, thoughtful, genuine conclusions (and, perhaps, they must have done the work that justifies this assumption). You must believe that if they shared their conclusions with you, you could bypass at least some of the pain of personally learning the same things (as learning from the experience of others can be quicker and much less dangerous).

It takes conversation to organise a mind 

“people organize their brains with conversation. If they don’t have anyone to tell their story to, they lose their minds.” The input of the community is required for the integrity of the individual psyche.    

“Life is short, and you don’t have time to figure everything out on your own” 

They say Aristotle was the last man who knew everything there was to know. Since the time of Aristotle (over 2300 years ago) society has become too complex for any one individual to know all that is known.  

When I was in school, I took huge value in solving from first principles. I would prefer to solve mathematic problems from first principles and avoid using formulaic recipes that allowed you to shortcut to a solution.  This was symptomatic of my whole approach to life. If I hadn’t figured it out myself, I didn’t value the knowledge.  There is a heroic valor to this approach, but it is dumb heroics.  

If you liked this post, you will also like How do I become a better listener and 50 Questions for better Critical Thinking.

Check out the full list of books I read in 2020.

 

 

Reflect on the Past, Clarify the Future

The best leadership book is not one that you can buy.   It is your own life, if well documented.

Do you take time to document your life?  Do you take time to look at your past year and get clear on where you are, and where you are going?

Last year Covid-19 brought a lockdown to over half of the world’s population.  Covid changed our plans, it changed our businesses and it shook up our world.  If we are to take something valuable from this year, it is important to take time to reflect on how the experience of Covid impacted you.

2021 is going to start without much change… the vaccines are coming but we will still have 6 months with restrictions on our movement, on our businesses, on our travel plans.  I am not going to wish you a “wonderful 2021”. I am going to wish you the energy and clarity to handle the challenges that 2021 throws at you as the best version of yourself.  That is my 1st January wish for you.

How to Reflect on the Last Year

In this post I will share a set of questions to structure a reflection on the past year, that might help clarify how to make changes in how you approach the coming year.

Here is a 3 page pdf worksheet that will guide you through a reflection process on the past year.  I would recommend you print out the pages and carry them with you for a while.

PDF Tool: Reflection on the Past Year

The best results come when you go through the questions a couple of times over a few days.  I often tell EO or YPO forums and Vistage groups that I want to see dog ears on the pages, and different colours of ink… even a coffee stain… showing that you have taken the pages out several times in preparing your end-of-year reflection. The 19 questions will help you think deeply about what contributes to your fulfilment, what detracts and what lessons you can actively take into the coming year.

Writing in a journal

I am asked in classes “what is the most important habit to learn to speak well?”  My answer is writing each day in a journal.  Capture your life.  Capture your dreams, your frustrations, your questions, the people that helped, the people that made things more difficult…  capture it all.  My biology teacher, Mr Matz, always said “the shortest pencil is longer than the longest memory”.

Warren Rustand taught me to start the day with “10-10-10”.  Ken Blanchard taught me to “start the day slowly”.  Eric Matz (my biology teacher, when I was 14) taught me to write stuff down in a journal every day.  Each tool involves taking time at the beginning of the day to reflect on what is important and get clear on who you want to be.

In our executive development programs at IESE Business School we make specific time in the program each day to reflect.  Learning happens when you go through an experience, but is multiplied if you take time to reflect on the experience (and share your reflections with colleagues who share your path).

I’ve written several posts on how to approach writing in a journal:

Getting Clear on Where are you Going

If you know where you are coming from… the next thing to get clear: where are you going.  How to clarify a vision for yourself, both personally and professionally:

Breaking The Downward Spiral

In golf, one poor shot can trigger a state of mind that leads to a run of poor shots. I hit my drive into the bunker. In frustration, I try a more difficult shot than I should, and put it in another bunker. I then try and hit it extra hard to reach the green in 3… and leave it in the bunker.

Chess international master Josh Waitzkin says that the moment when a chess player really loses the game is when they think they are ahead, and after a move they realise that maybe their position is not so strong.  The next move will be too aggressive because they are anchored on the emotional sense of being ahead.

A professional learns to forget the past and play the shot or the move that they have in front of them.   An amateur compounds the error.

One poor shot does not ruin a golf round… unless you let it.  

The same occurs in life.

Do you let one mistake lead to three more?  

On a diet… one biscuit leads to 3 more? …that’s how to screw it up.

Do you tend to let one mistake lead to 3 more?

 

Don’t just do something, sit there…

Some things require patience.

“Don’t just do something, sit there” 

Some things can’t be rushed.

Sometimes patience is necessary.  

I have a metaphor I use as an entrepreneur at challenging times in life. If you are travelling on a boat along a river, if the river is going the other direction, you are better pulling the boat to the shore and resting.  Paddling against the tide is exhausting and the tide is stronger than you.  

This requires that you have the ability to be patient.

Some things that cannot be rushed:

  • great relationships
  • trust 
  • mastery 
  • wisdom

What else can you think of that cannot be rushed?

I’d love to hear your thoughts in the comments below…

 

 

How to Make People Feel Good about themselves

I’ve had some tough days this year.

I am not alone.

Covid is a physical disease, but the wider impact will be on the mental health of the billions who have been hit by the economic shutdown.

Who do you feel is struggling to keep things together?

Every single one of us has incredible power to lift up the spirits of the people that are around us. It requires a choice. It is harder when you are struggling yourself. It is important. The people around you need your leadership.

How can we help those around us feel good about themselves?

In the video, I share 3 ideas.

  1. Ask Questions
  2. Let them help you
  3. Shine a light on their strengths

Who needs your attention today? Who around you would benefit from a few minutes of facetime or skype or a phone call?

Living in Fear or Living in Confidence

There are two modes of dealing with our life:

  • Living in Fear – the mode of seeking “Freedom from” and seeking validation for our past decisions
  • Living in Confidence – the mode of clarifying “Freedom to” and making choices as a responsible being.

Over the last 7 months, I have noticed that I have slipped into the living in fear mode. I knew what I didn’t want, but not what I did. I was waiting to see how the world would work out rather than committing to creating my own clear path.

I share these two modes in the video.

Stay safe.

The 10 Tasks of Adolescence & the 5 Basics of Parenting

This post is a summary of the MIT Raising Teens report which is available on the MIT website (links provided below the post).

“An extraordinary body of research exists on the powerful ways in which parents and families make a difference in the lives of teens. Yet, little of this knowledge has been reaching the media, policymakers, practitioners, and parents.”

Dr Rae Simpson, Director of the MIT WorkLife Center

The 10 Tasks of Adolescence

There are 10 major adjustments that need to happen as a child moves through adolescence towards becoming an adult.

  1. Adjust to maturing bodies and feelings – Teens are faced with adjusting to bodies that as much as double in size and that acquire sexual characteristics, as well as learning to manage the accompanying biological changes and sexual feelings and to engage in healthy sexual behaviours. Their task also includes establishing a sexual identity and developing the skills for romantic relationships.
  2. Develop and apply abstract thinking skills – Teens typically undergo profound changes in their way of thinking during adolescence, allowing them more effectively to understand and coordinate abstract ideas, to think about possibilities, to try out hypotheses, to think ahead, to think about thinking, and to construct philosophies.
  3. Develop and apply a more complex level of perspective taking – Teens typically acquire a powerful new ability to understand human relationships, in which, having learned to “put themselves in another person’s shoes,” they learn to take into account both their perspective and another person’s at the same time, and to use this new ability in resolving problems and conflicts in relationships.
  4. Develop and apply new coping skills in areas such as decision making, problem solving, and conflict resolution – Related to all these dramatic shifts, teens are involved in acquiring new abilities to think about and plan for the future, to engage in more sophisticated strategies for decision making, problem solving, and conflict resolution, and to moderate their risk taking to serve goals rather than jeopardise them.
  5. Identify meaningful moral standards, values, and belief systems – Building on these changes and resulting skills, teens typically develop a more complex understanding of moral behavior and underlying principles of justice and care, questioning beliefs from childhood and adopting more personally meaningful values, religious views, and belief systems to guide their decisions and behavior.
  6. Understand and express more complex emotional experiences – Also related to these changes are shifts for teens toward an ability to identify and communicate more complex emotions, to understand the emotions of others in more sophisticated ways, and to think about emotions in abstract ways.
  7. Form friendships that are mutually close and supportive – Although youngsters typically have friends throughout childhood, teens generally develop peer relationships that play much more powerful roles in providing support and connection in their lives. They tend to shift from friendships based largely on the sharing of interests and activities to those based on the sharing of ideas and feelings, with the development of mutual trust and understanding.
  8. Establish key aspects of identity – Identity formation is in a sense a lifelong process, but crucial aspects of identity are typically forged at adolescence, including developing an identity that reflects a sense of individuality as well as connection to valued people and groups. Another part of this task is developing a positive identity around gender, physical attributes, sexuality, and ethnicity and, if appropriate, having been adopted, as well as sensitivity to the diversity of groups that make up American society.
  9. Meet the demands of increasingly mature roles and responsibilities – Teens gradually take on the roles that will be expected of them in adulthood, learning to acquire the skills and manage the multiple demands that will allow them to move into the labor market, as well as to meet expectations regarding commitment to family, community, and citizenship.
  10. Renegotiate relationships with adults in parenting roles – Although the task of adolescence has sometimes been described as “separating” from parents and other caregivers, it is more widely seen now as adults and teens working together to negotiate a change in the relationship that accommodates a balance of autonomy and ongoing connection, with the emphasis on each depending in part on the family’s ethnic background.

The 5 Basics of Parenting Adolescents

What role do parents play in helping teenagers make these 10 adjustments?

The Raising Teens Project identified 5 significant ways in which parents can influence healthy adolescent development:

  1. Love and Connect – Offer support and acceptance while affirming the teen’s increasing maturity.
  2. Monitor and Observe – Let teens know you are paying attention.
  3. Guide and Limit – Uphold clear boundaries while encouraging increased competence.
  4. Model and Consult – Provide continual support for decision making, teaching by example and ongoing dialogue.
  5. Provide and Advocate – Provide a supportive home environment and a network of caring adults.

This post is a summary of the MIT Raising Teens report that can be found here: MIT Raising Teens. Learn about the 5 Basics of Parenting Adolescents here.