Three Frameworks For Smarter Decisions
Use these models for problem solving and deciding what to do next.
Life boils down to choices and how well they play out.
I’ve covered the topic of mental models and the power they hold to dramatically increase our decision-making ability. The frameworks offer a consistent way to assess problems, thereby providing a way to grade their success over time.
In continuing the exploration, here’s three additional models that can help bring clarity to tough decisions.
Local/Global
“Optimize at a higher level for greater effect.”
Play small and the payoff is similarly small.
Play big or, in other words, solve big problems, and the payoff can be significant.
This model takes aim at short sightedness and playing games with limited benefits. It’s all too easy to get laser-focused on what’s in front of us and lose sight of the bigger picture.
If you feel like you’re spinning your wheels or getting nowhere on a problem, take a step back. “Is what I’m doing fixing a part of the machine? Is it possible I can fix the entire machine itself?”
The beauty of this process is the simplicity and ease of applying it. If it feels like there’s a “better way” or a solution that would solve multiple issues at once, there likely is. We just need to bring our attention a little higher.
Regret Minimization
“Will I regret not doing this 20 years from now?”
Many of our decisions are made to serve long-term goals. Yet we hardly think of our future selves when deciding.
We can use the undesirable feeling of regret to make decisions that benefit us both now and in the future.
The Regret Minimization model forces us to step forward in time and then look back. Taking the perspective of ourselves in the future, looking back helps us to visualize and feel the impact of a given decision.
The idea is to minimize the amount of regret that we experience over time. Even if the results aren’t exactly what we were hoping for, knowing that a decision was made in good faith can ensure we rest easy.
Apply these to decisions both small and large, or those with longer timelines. “Will I regret not doing this next month? How about next year? In 10 years, will I look back on this decision with regret?”
Theory of Constraints
“Focus on fixing one thing at a time.”
The world is complex, which can make fixing things awfully difficult. The interdependencies of our work, communities and lives only works to further complicate things.
Where do we start when there’s so many parts to the machine?
At any given time, just one of a system’s inputs is constraining the entire system from being able to achieve a greater total output. This concept is known as the Theory of Constraints. It’s a simple way to optimize for better performance or troubleshoot when something goes wrong.
Instead of trying to solve every issue at once, just focus on a single input. With our full attention, we can better problem solve and come up with creative solutions.
By thinking of what we do, our goals and habits as systems, we can more easily identify the inputs. As a starting point, inputs such as time, energy and knowledge show up in just about every system imaginable.
What decision-making models help you work through tough problems?
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