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    #144 Gary Klein: Insights For Making Better Decisions

    enAugust 09, 2022
    What are the three pathways to gaining insights?
    How does curiosity influence the insight pathways?
    Why do organizations prioritize error reduction over insights?
    What is the purpose of conducting a pre-mortem?
    How can we evaluate someone's decision-making abilities effectively?

    Podcast Summary

    • Developing expertise for better decisions: reducing errors, increasing insightsGaining insights requires embracing curiosity and exploring connections, contradictions, and corrections. Organizations should prioritize insights over error reduction to foster innovation.

      Developing expertise to make better decisions requires a focus on both reducing errors and increasing insights. Insights often contradict our existing beliefs, which sparks surprise and curiosity. There are three pathways to gaining insights: connection, contradiction, and correction. The connection pathway involves putting different ideas together without contradicting our mental models. The contradiction pathway occurs when something unexpected happens, prompting further investigation. The correction pathway arises when flawed beliefs hinder progress, requiring a shift in thinking. Curiosity plays a crucial role in all three pathways by encouraging exploration of things that don't initially make sense. However, many organizations inhibit insights due to a preference for error reduction over gaining insights, creating a major obstacle to innovation.

    • Overcoming Resistance to New IdeasEmbrace curiosity, encourage the review of rejected ideas, and recognize the value of insights to overcome resistance to change and foster innovation in organizations.

      Organizations tend to resist new insights and ideas because they prioritize predictability and fear disruption. As an individual, you can maximize the insights you observe by being deliberate and open-minded. Embrace curiosity and celebrate your own and others' insights, rather than recoiling from the unfamiliar. As for organizations, they can create mechanisms to encourage the review and reconsideration of rejected ideas. The current reward structure often discourages innovative thinking and fails to recognize the value of insights. Additionally, leaders in organizations should be aware that relying solely on their past experience may hinder progress. While experience is important, it should not be viewed as infallible.

    • The link between experience and expertise.True expertise is not solely based on years of experience, but on the ability to reflect on mistakes, learn from them, and continuously improve decision-making skills. Surface characteristics and confidence should not be the only factors considered when evaluating credibility.

      Experience does not guarantee expertise. While years of experience can contribute to expertise, it is not the sole indicator. Experts are individuals who reflect on their mistakes, learn from them, and continuously improve their decision-making abilities. They are highly aware of their mistakes and their impact, which drives them to find better solutions. On the other hand, those who simply repeat the same year of experience without reflection may not possess true expertise. When evaluating someone's credibility and decision-making abilities, it is crucial to go beyond surface characteristics and confidence. Running individuals through scenarios and examining their rationale and reasoning behind their choices can provide valuable insights into their decision-making skills.

    • Understanding Decision-Making: Tools and Reflections for Learning and ImprovementEvaluating decisions goes beyond outcomes; understanding the mindset and process helps organizations learn and improve. Tools like decision journals and reflections promote self-reflection and foster continuous learning.

      Evaluating decisions requires understanding the mindset and thought process behind them, rather than solely focusing on outcomes. By using tools like decision journals and cognitive interviews, organizations can gain insight into how individuals approach decision-making and learn from their experiences. This involves documenting the goals, information used, and stakeholders affected by each decision, as well as reflecting on any overlooked cues or goals. Additionally, writing down these reflections in one's own handwriting promotes self-reflection and a deeper understanding of one's thinking. This method of evaluating decisions not only reduces stress but also fosters a culture of continuous learning and improvement within the organization.

    • The Power of Journaling and Reflection for Learning and GrowthJournaling and reflection help uncover knowledge gaps, identify patterns in decision-making, and encourage curiosity, facilitating continuous learning and fostering meaningful connections.

      Journaling and reflection are powerful tools for learning and gaining a deeper understanding of complex topics. Writing helps uncover gaps in knowledge and prompts further exploration for a more comprehensive understanding. Additionally, journaling allows individuals to identify patterns in decision-making, enabling them to make more informed choices in the future. Gary Klein emphasizes that journaling facilitates inquiry and curiosity, encouraging individuals to explore new perspectives and ideas. Mental models, as discussed in the conversation, encompass not only how something works but also its limitations, workarounds, and potential misconceptions. Journaling and reflection act as a learning loop, where experiences are reflected upon, abstractions are formed, and actions are taken, leading to continuous learning and growth. Asking for stories and experiences further enhances communication and understanding, bypassing the limitations of language and promoting meaningful connections.

    • The Power of Stories in Learning and ExpertiseEmbracing curiosity and exploring anomalies is essential for meaningful learning and avoiding fixation errors. Stories serve as compressions of ideas, fostering engagement and highlighting important variables.

      Stories hold immense value in capturing expertise and facilitating learning. Stories serve as compressions of ideas, highlighting important variables and details, while also providing a sense of engagement and curiosity. An effective story should involve mystery and unexpected events, with a storyteller who enjoys sharing narratives. Stories that result in insight are deemed beneficial. The conversation emphasizes the importance of noticing and exploring anomalies, rather than dismissing or explaining them away. Knowledge shields, which exist in everyone, can hinder the willingness to challenge existing theories. Fixation on our initial reactions limits the ability to recognize and address anomalies. Therefore, embracing curiosity and revisiting anomalies is crucial for avoiding fixation errors and facilitating meaningful learning.

    • Embracing Mistakes and Unpredictability for MasteryEmbrace unexpected outcomes, challenge beliefs, and learn from mistakes to accelerate mastery and grow both personally and professionally. Reflect on mistakes as learning opportunities rather than failures.

      Embracing unexpected outcomes and learning from mistakes is essential for developing mastery in a skill. It is important to hold onto initial impressions and beliefs until proven otherwise through inconsistent data. Keeping a surprise journal can help us realize the unpredictability of the world and track moments when our initial faith starts to waver. Stagnation often occurs when people fail to engage in unlearning and challenge their conventions and limited beliefs. To accelerate mastery, it is beneficial to expose ourselves to vicarious experiences and learn from others' turbulent journeys. While organizations strive to reduce errors, they should also recognize that errors create opportunities for reflection, growth, and expertise. However, it is natural to feel devastated initially by mistakes, but with reflection and rumination, mistakes can be seen as learning opportunities rather than failures.

    • Fostering Adaptive Thinking for ExpertiseEmbrace cognitive flexibility to enhance problem-solving skills and prevent stagnation. Use pre-mortems to proactively identify potential project failures and drive improvement.

      Cognitive flexibility theory is about helping people achieve expertise by preventing them from sticking to routines and standard ways of doing things. This theory encourages individuals to become more naturally adaptive by exposing them to vicarious experiences that can't be handled by usual routines. Experts in a job tend to get bored if they are doing the same thing over and over again. However, experts also have the ability to adapt and enjoy being adaptive when things don't go as planned. One tool that can be used to reduce errors and improve project outcomes is the pre-mortem, where team members imagine a project has failed and identify the reasons why, providing valuable insights for improvement.

    • Promoting Openness and Trust: The Power of Pre-Mortem and Effective MeetingsConducting pre-mortems and running effective meetings foster a culture of trust, openness, and comprehensive risk analysis, leading to improved problem-solving and decision-making.

      Conducting a pre-mortem can help identify potential problems and create a culture of trust and candor within a team. By going around the room and asking each individual to provide insights on what could go wrong, the collective wisdom of the team is harnessed, allowing for a comprehensive analysis of potential risks. This approach also encourages individuals to express problems rather than covering them up, creating a sense of trust and openness. Additionally, running effective meetings involves changing what people signal as valuable, such as asking for unique insights into the problem rather than regurgitating the same information. Limiting cognitive biases, such as fixation error, is also crucial in reducing errors and making better judgments.

    • The Value of Decision Biases and the Importance of Emotions in Decision-MakingDecision biases serve as helpful shortcuts in decision-making, while considering both logical reasoning and emotions is crucial for making rational choices. Different strategies should be employed in team decision-making based on context and urgency.

      Decision biases, although flawed, are valuable heuristics that help us make insights and decisions. While some researchers focus on the negative aspects of these biases, it is important to recognize their positive side as well. These biases are related to the heuristics that we develop through our experiences, and they can provide us with useful starting points for decision-making. Furthermore, emotions play a crucial role in decision-making, and individuals who are unable to draw on their emotions often struggle to make rational choices. Therefore, it is essential to consider both logical reasoning and emotional intelligence when making decisions. When it comes to decision-making in teams, different strategies can be employed, ranging from autocratic approaches to anonymous voting. The chosen strategy depends on the specific context and urgency of the situation.

    • The Importance of Individuality and Accountability in Team Decision-MakingIndividuality and accountability are crucial in team decision-making, allowing for unique insights and innovation while ensuring personal responsibility for successes and failures.

      Decision-making in a team should be situational and context-dependent. Consensus decisions can be risky, particularly in dangerous environments where fear and pressure can inhibit individuals from expressing their true thoughts. Anonymity and individuality play important roles in decision-making, allowing for unique insights and ideas to surface. Group decisions often lack accountability and learning, as successes and failures are collectively attributed rather than individually acknowledged. It is suggested that individuals generate their own concepts and assessments privately before sharing them with the group, promoting more innovative ideas and productive discussions. Furthermore, it is crucial to bring forward insights that may define the problem or identify potential failures, as defining the problem is a necessary step towards finding a solution.

    • Importance of clarity and collaboration in group decision-making.Defining the problem accurately, seeking input, and considering different perspectives are essential for effective group decision-making. Flexibility and open-mindedness are crucial, while minor differences in options may not greatly affect outcomes.

      When making decisions in a group setting, it is important to have clarity on the problem being solved. Each individual should write out their understanding of the problem before beginning the decision-making process. This exercise reveals the variance in problem statements and highlights the need to define the problem accurately. While having a single decision maker is beneficial, it is crucial that they actively seek input and genuinely consider different perspectives. Simply going around the table to check boxes and gather opinions is not enough. To address complex and wicked problems, it is necessary to be curious, open-minded, and adaptable. Additionally, when faced with options that are almost equally effective, the decision-making process becomes challenging, but ultimately, the choice between them does not significantly impact the outcome.

    • Improving Decision-Making Skills and Overcoming ParalysisRecognize the zone of indifference, prioritize actions efficiently, use the "Stop flopper no" heuristic, learn from experts through Shadowbox, and optimize your environment for better decision-making.

      Decision-making can be improved by recognizing the zone of indifference and prioritizing actions. Gary Klein highlights the importance of not getting stuck in the pursuit of perfection and instead focusing on making choices efficiently. Shane Parrish adds the concept of using a heuristic called "Stop flopper no" to overcome paralysis and make decisions effectively. Furthermore, Gary Klein introduces the idea of Shadowbox, a scenario-based approach that helps individuals understand how experts make decisions. By comparing their own rankings and reasoning to those of experts, people can gain valuable insights and improve their decision-making skills. Additionally, the conversation touches on the impact of environment on decision-making, prompting us to consider how optimizing our surroundings can lead to better outcomes.

    • Effective Communication and Trust Building for Successful Use of Force DecisionsPrioritizing voluntary compliance and cultivating a partnership mindset with civilians can help police officers de-escalate tense situations and avoid the need for force, leading to more effective law enforcement.

      In situations involving use of force decisions, such as those faced by police officers, there are ways to avoid confrontations through effective management and communication. Structuring the environment and creating a benign, trusting atmosphere can help diffuse tense situations and reduce the need for force. It is important for police officers to prioritize gaining voluntary compliance rather than resorting to intimidation tactics. By carrying themselves in a way that builds trust and fosters a sense of partnership with civilians, officers can achieve greater success in getting people to do what is needed without escalating conflicts. This shift in mindset from command and control to collaboration and trust is crucial for effective law enforcement.

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    Watch the episode on YouTube: ⁠⁠https://www.youtube.com/c/theknowledgeproject/videos⁠⁠

    Newsletter - I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: ⁠⁠https://fs.blog/newsletter/⁠⁠

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now - ⁠⁠https://fs.blog/clear/⁠⁠

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    Watch the episode on YouTube: ⁠https://www.youtube.com/c/theknowledgeproject/videos⁠

    Newsletter - I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: ⁠https://fs.blog/newsletter/⁠

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    #196 Brent Beshore: Business Brilliance and Happiness at Home

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    Watch the episode on YouTube: https://www.youtube.com/c/theknowledgeproject/videos

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    Sponsors:

    Shopify: Making commerce better for everyone. https://www.shopify.com/shane

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    (00:00) Intro

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    (20:04) How helping hurts

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    (40:36) Why Brent stopped drinking (mostly)

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    #195 Morgan Housel: Get Rich, Stay Rich

    #195 Morgan Housel: Get Rich, Stay Rich

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    In this conversation, Shane and Housel discuss various aspects of risk-taking, wealth accumulation, and financial independence. Morgan explains the importance of understanding personal financial goals and the dangers of social comparison, lets everyone in on his personal financial “mistake” that instantly made him sleep better at night, and why the poorest people in the world disproportionately play the lottery—and why it makes sense that they do. They also touch on the influence of upbringing on financial behaviors, the difference between being rich and wealthy, and the critical role of compounding in financial success. Of course, we can’t have a writer as good as Morgan Housel on the podcast and not ask him about his process, so Housel concludes with insights into storytelling, his writing processes, and the importance of leading by example in teaching financial values to children.
    Morgan Housel is a partner at Collaborative Fund. Previously, he was an analyst at The Motley Fool. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers and was selected by the Columbia Journalism Review for the Best Business Writing anthology. He's the author of two books: The Psychology of Money and Same as Ever.
    Watch the episode on YouTube: ⁠https://www.youtube.com/c/theknowledgeproject/videos⁠

    Newsletter - I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: ⁠https://fs.blog/newsletter/⁠

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    Sponsors

    Protekt: Simple solutions to support healthy routines. Enter the code "Knowledge" at checkout to receive 30% off your order. ⁠https://protekt.com/knowledge


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    (07:40) On luck and skill

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    (22:17) Your house: asset or liability?

    (27:39) Money lies we believe

    (32:12) How to avoid status games

    (35:04) Money rules from parents

    (40:15) Rich vs. wealthy

    (41:46) Housel's influential role models

    (42:48) Why are rich people miserable?

    (45:59) How success sows the seeds of average performance

    (49:50) On risk

    (50:59) Making money, spending money, saving money

    (52:50) How the Vanderbilt's squandered their wealth

    (1:04:11) How to manage your expectations

    (01:06:26) How to talk to kids about money

    (01:09:52) The biggest risk to capitalism

    (01:13:56) The magic of compounding

    (01:16:18) How Morgan reads

    (01:22:42) How to tell the best story

    (01:24:42) How Morgan writes

    (01:35:42) Parting wisdom and thoughts on success

    #194 Abigail Shrier: The Parent-Therapy Trap

    #194 Abigail Shrier: The Parent-Therapy Trap
    Over the last decade, therapy has become the de facto solution to solve all sorts of problems for all sorts of people. Everyone has slowly accepted that therapy is normal and a net benefit to society.

    But instead of helping kids work through difficult circumstances, what if it's just making the problems worse? That's what Abigail Shrier thinks is happening, and in this conversation, she reveals some surprising reasons why.

    Shane and Shrier discuss the real reason therapy is "bad," how we got to this point of acceptance as a culture, and what you can do as a parent to get back to normalcy. Shrier also shares her experiences with lifelong therapy patients, who should actually be in therapy, and the one thing that makes someone a successful parent.

    Watch the episode on YouTube: https://www.youtube.com/c/theknowledgeproject/videos

    Newsletter - I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: https://fs.blog/newsletter/

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now - https://fs.blog/clear/ 

    Follow me: https://beacons.ai/shaneparrish

    Join our membership: https://fs.blog/membership/

    Sponsors:

    Shopify: Making commerce better for everyone. https://www.shopify.com/shane

    Protekt: Simple solutions to support healthy routines. Enter the code "Knowledge" at checkout to receive 30% off your order. https://protekt.com/knowledge

    (00:00) Intro
    (05:44) Inverse: How do we raise mentally unstable kids?
    (08:29) How we got to now
    (11:45) Bad therapy...or just social trends?
    (13:21) Being your kids' friend: good or bad?
    (15:55) The parenting type that raises the BEST kids
    (21:35) Is this all the parents' fault?
    (29:53) Is "Bad Therapy" a world-wide problem?
    (32:57) Talk to your kids' therapist about these things
    (42:09) The importance of facing adversity in childhood
    (47:06) Can we blame grad schools for all of this?
    (49:14) On technology and social media
    (51:03) Schools should "never" have gotten involved in mental health
    (54:43) Did COVID accelerate "bad therapy?"
    (56:07) How to return to normalcy
    (58:21) Why Shane shares negative YouTube comments with his kids
    (01:01:23) Shrier's experience being "cancelled"
    (01:04:13) On prestige media
    (01:07:47) Small steps parents can take to return to normal
    (01:11:02) Dealing with schools saying one thing and parents saying another
    (01:13:32) Why is the silent majority...silent?
    (01:16:32) If this continues, what happens?
    (01:18:19) What makes someone a successful parent?

    #193: Dr. Jim Loehr: Change the Stories You Tell Yourself

    #193: Dr. Jim Loehr: Change the Stories You Tell Yourself

    What if reaching the next level of success wasn't determined by another skill, degree, or course but by something that changed on the inside?

    That's what Dr. Jim Loehr believes, and in this episode, he reveals everything he knows about mental toughness and winning the mind game. Shane and Loehr discuss the radical importance of the stories you tell yourself—including how they can damage your kids—and how to change the negative stories you believe. Loehr also shares the best reflection questions to ask yourself to reveal personal blindspots, the importance of rituals for calming anxiety and performing under pressure, and how the best in the world use their recovery time effectively.

    Dr. Jim Loehr is a world-renowned performance psychologist and author of 16 books. From his more than 30 years of experience and applied research, Dr. Loehr believes the single most important factor in successful achievement, personal fulfillment, and life satisfaction is the strength of one’s character. Dr. Loehr possesses a masters and doctorate in psychology and is a full member of the American Psychological Association.

    Watch the episode on YouTube: https://www.youtube.com/c/theknowledgeproject/videos

    Newsletter - I share timeless insights and ideas you can use at work and home. Join over 600k others every Sunday and subscribe to Brain Food. Try it: https://fs.blog/newsletter/

    My Book! Clear Thinking: Turning Ordinary Moments into Extraordinary Results is out now - https://fs.blog/clear/ 

    Follow me: https://beacons.ai/shaneparrish

    Join our membership: https://fs.blog/membership/

    Sponsor:

    Protekt: Simple solutions to support healthy routines. Enter the code "Knowledge" at checkout to receive 30% off your order. https://protekt.com/knowledge

     

    (00:00) Intro

    (03:20) Parenting and storytelling

    (06:15) How to determine whether or not the stories are limiting or enabling you

    (08:41) What the stories world-class performers tell themselves

    (15:02) How to change the stories you tell yourself

    (23:26) Questions to journal about

    (26:16) Private voices vs. public voices (and how they impact your kids)

    (31:32) How to help your friends change their stories

    (37:30) How to better come alongside your kids to prevent destructive behavior

    (44:48) - (45:06) What Loehr knows about high performers that others miss

    (53:12) On time and energy

    (01:06:26) Conquering the "between point" ritual

    (01:11:50) On rituals vs. habits

    (01:15:54) How to increase your mental toughness

    (01:23:51) On success

     

     

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