16 behavioral strategies for achieving goals and business success

The network of mental models was created by Charles Munger, a lawyer, successful economist, professional investor and right-hand man of billionaire Warren Buffett. Munger said that with the help of this network it is possible to analyze and even predict the outcome of events. Therefore, Buffett called him the ideal business partner.

These 16 mental models are used by many entrepreneurs, executives, and leaders.

Making decisions

1. Strategy "Two lists" by Warren Buffett

Write down 25 of your goals. List your top five goals on one list. And add the remaining 20 to another and safely forget about it. This will help you prioritize and focus on what matters most. If desired, the first list can be reduced to three items.

2. The 10/10/10 rule

Many of us feel guilty for making a decision hastily, without thinking about the consequences. Therefore, the 10/10/10 rule suggests answering three questions:

How do you feel about the decision you made in 10 minutes?
How will you feel in 10 months?
And in 10 years?

This will analyze the impact of the decision on your life. Perhaps you will understand that everything is not as scary as it seems.

3. Blind game

When making a decision, you have incomplete information. Therefore, the outcome of the situation, to some extent, does not depend on you. But the decision-making process is completely in your control.

It can be compared to playing poker. If you lose, don't blame fate. Replay the situation and find out which moment was the turning point. If you understand your mistake, learn from it.

4. Correct point of view and disagreement with a unanimous opinion

mental models: disagreement with opinion

You can be right or wrong. You can also follow or not follow the opinion of the majority. But everything starts from your point of view. If it is wrong, then you will not be successful in business by agreeing with conventional wisdom. Talk to someone who has the opposite point of view. This will increase the chances that you will make the right decision.

5. The rule of three

When you are trying to convince someone of something, always give three reasons why the person should do it. Exactly three. This way your arguments will be taken into account and not forgotten. And your speech will be structured and convincing.

Strategy

6. Protective moat

In ancient times, the fortress was surrounded by a moat that protected it from enemies. Business can be compared to a fortress. The protective moat is a competitive advantage of the company. In other words, the business is protected by its unique characteristics that distinguish it from the rest.

7. Network effect

Network effect is the influence of the user or the company itself on the value of the product in the eyes of other people. The value of any product depends on the number of buyers. The network effect creates a solid foundation for the development of the company.

8. Centralized, decentralized and distributed management

Distribution of functions is typical for decentralized and distributed control systems. This means that the decision is made by all participants in the system. Top management exercises minimal control and aligns with others.

In a centralized system, there is a single control center that holds the entire process in its hands.

9. Game theory

Game theory studies human behavior in strategic situations. They are understood as situations when, making a choice, a person ponders the response of other people. Strategic thinking is useful not only in games but also in business. In other words, game theory implies the choice of a strategy that would minimize the advantage of the opponent.

10. Economies of scale

The economies of scale enable a company to grow rapidly without increasing cost. Examples of companies that use this mental model include Google, Facebook, and Twitter. The number of users of these networks is increasing, but companies are not spending extra money on it.

Leadership

11. The pyramid principle

The principle is based on three key points:

First, answer the question.
Then formulate your arguments.
At the end, line up your ideas in a logical chain.

The pyramid principle works great with the rule of three. This will help you convince the other person and successfully convey your point of view.

12. 99/50/1

It is imperative for the leader to contact his team of executors at these critical times:

at the beginning of the project, when 99% of the work has yet to be done;
in the middle of the road, when 50% of the work is already behind;
on the home stretch when only 1% of the work remains to be done.

This method will allow you to use your time efficiently and allow your team to create a worthwhile product.

13. Directly responsible person

The term originated from Apple. She puts the name of the Directly Responsible Individual (DRI) next to each agenda item. Each employee is responsible for completing their task. This reduces the need for frequent meetings.

14. Team of teams

In a team of teams, all employees interact with each other. The decision is made collectively, since everyone is bound by a common goal.

15. Radical candor

The essence of the method lies in the ability of the leader to convey healthy criticism to employees. Do not shirk, you need to politely and openly tell the truth. After all, the leader is interested in the growth and success of his team's employees.