Mental models toolkit

Sharing my mental models toolkit, in case people may find it useful.

This is my working reference of ideas for making decisions. Pair it with the Systems Thinking Cheat-Sheet: that one helps you see the situation, this one helps you decide within situations.

Three kinds of ideas

Kind What it does Examples
Model Describes how something works Maslow’s hierarchy of needs
Tool A procedure you run RICE, pre-mortem
Principle A rule of thumb you keep in your head Luck surface area, Chesterton’s fence

Deciding under uncertainty

Cynefin framework gives direction on how to approach a problem. Cynefin model

Decision-making model What it says
Cynefin Problems are clear, complicated, complex or chaotic, and each needs a different approach
One-way vs two-way doors Decide reversible decisions fast and irreversible ones slowly
Pre-mortem Imagine the project has failed, then explain why
Inversion Ask what would guarantee failure, then avoid it
Expected value Probability × payoff
Opportunity cost The real cost of a choice is the best alternative you gave up
Satisficing Pick the first option that’s good enough
OODA loop Observe, Orient, Decide, Act; whoever cycles faster wins
Regret minimization Which choice will you regret not making at 80?
Bayesian updating Hold beliefs as probabilities and adjust them as evidence arrives

Prioritizing

Strategic work is important and rarely urgent, so it needs protecting.
Urgent work pushes itself onto your calendar; important-but-not-urgent work only happens if you book it. Prioritizing model

Tool How it works
RICE (Reach × Impact × Confidence) ÷ Effort
ICE Impact × Confidence × Ease
MoSCoW Must, Should, Could, Won’t
Eisenhower matrix Urgent vs important
Impact vs effort grid A 2×2 of value against cost
Cost of delay What does waiting cost per week?
Pareto principle A small share of causes produces most of the effect

Thinking well

Strongest makers sit in “hidden craft”: the cheapest move is usually more telling, not more doing. Luck surface

Principle What is says
First principles Break a problem down to what’s fundamentally true, rather than reasoning by analogy
The map is not the territory Every model is a simplification
Chesterton’s fence Don’t remove something until you know why it was put there
Occam’s razor Prefer the simplest explanation that fits the facts
Hanlon’s razor Don’t assume malice where confusion explains the behavior
Circle of competence Know where your judgment is reliable and where it isn’t
Luck surface area Luck = Doing × Telling: the more you make and the more people know about it, the more opportunities find you

How people behave

Maslow’s pyramid

Model What is says
Maslow’s hierarchy Needs come in layers; higher ones only matter once lower ones are met
Jobs to Be Done People “hire” products to make progress in a situation
Kano model Features are basic (expected), performance (more is better) or delighters (unexpected); delighters decay into basics
Fogg Behavior Model Behavior = Motivation × Ability × Prompt; if one is missing, nothing happens
Loss aversion Losses hurt roughly twice as much as equal gains feel good
Peak–end rule People remember an experience by its most intense moment and its ending
Diffusion of innovations / Crossing the Chasm Adoption moves from innovators to the majority, with a gap between enthusiasts and pragmatists

How systems behave

The product mirrors how the teams talk. Conway’s law

Model What is says
Feedback loops, stocks and flows Systems are things that accumulate and change; reinforcing loops amplify, balancing loops stabilize
Leverage points The strongest place to intervene is usually rules, goals or defaults, not more effort
Second-order thinking Ask “and then what?”; the first effect is rarely the important one
Goodhart’s law Once a number becomes a target, people optimize the number and it stops measuring what you cared about
Conway’s law Systems mirror the communication structure of the organization that builds them
Tragedy of the commons A shared resource is overused when each person gains and the cost is spread
Theory of constraints A system moves only as fast as its bottleneck
Jevons paradox Making something more efficient can increase total use
Network effects A product becomes more valuable as more people use it

Strategy and position

Model What is says
Innovator’s dilemma Incumbents lose by serving their best customers well while cheaper, “worse” products grow underneath them
Wardley mapping Map product parts by how evolved they are, from novel to commodity; build the novel, buy the commodity
7 Powers Only seven durable advantages exist, including network effects, switching costs and counter-positioning
Porter’s five forces Competitive pressure comes from rivals, buyers, suppliers, substitutes and new entrants
Optionality and the barbell Keep most bets safe and a few small, wild ones with large upside; prefer choices that keep options open
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