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Quote by Max H. Bazerman

“Consider the recent financial crisis and its link to faulty reward systems. President Bill Clinton's objective of increasing homeownership by rewarding potential home buyers and lenders is one example. The Clinton administration "went to ridiculous lengths" to increase homeownership in the United State, promoting "paper-thin down payments" and pushing lenders to give mortgage loans to unqualified buyers according to Business Week editor Peter Coy.”

Quote by Max H. Bazerman

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Max H. Bazerman

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“The quality of our thinking is largely influenced by the mental models in our heads. While we want accurate models, we also want a wide variety of models to uncover what’s really happening. The key here is variety. Most of us study something specific and don’t get exposure to the big ideas of other disciplines. We don’t develop the multidisciplinary mindset that we need to accurately see a problem. And because we don’t have the right models to understand the situation, we overuse the models we do have and use them even when they don’t belong. You’ve likely experienced this first hand. An engineer will often think in terms of systems by default. A psychologist will think in terms of incentives. A business person might think in terms of opportunity cost and risk-reward. Through their disciplines, each of these people sees part of the situation, the part of the world that makes sense to them. None of them, however, see the entire situation unless they are thinking in a multidisciplinary way. In short, they have blind spots. Big blind spots. And they’re not aware of their blind spots. [...] Relying on only a few models is like having a 400-horsepower brain that’s only generating 50 horsepower of output. To increase your mental efficiency and reach your 400-horsepower potential, you need to use a latticework of mental models. Exactly the same sort of pattern that graces backyards everywhere, a lattice is a series of points that connect to and reinforce each other. The Great Models can be understood in the same way—models influence and interact with each other to create a structure that can be used to evaluate and understand ideas. [...] Without a latticework of the Great Models our decisions become harder, slower, and less creative. But by using a mental models approach, we can complement our specializations by being curious about how the rest of the world works. A quick glance at the Nobel Prize winners list show that many of them, obviously extreme specialists in something, had multidisciplinary interests that supported their achievements. [...] The more high-quality mental models you have in your mental toolbox, the more likely you will have the ones needed to understand the problem. And understanding is everything. The better you understand, the better the potential actions you can take. The better the potential actions, the fewer problems you’ll encounter down the road. Better models make better decisions.”

Decision MakingRationalityRational ThinkingSpecializationBlind SpotsCrossfunctional ManagementModel ThinkingMultidisciplinarity
Book:The Great Mental Models: General Thinking Concepts
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“The poor girl ws keeping that student's letter as a precious treasure, and had run to fetch it, her only treasure, because she did not want me to go away without knowing that she, too, was honestly and genuinely loved; that she, too, was addressed respectfully. No doubt that letter was destined to lie in her box and lead to nothing. But none the less, I am certain that she would keep it all her life as a precious treasure, as her pride and justification, and now at such a minute she had thought of that letter and brought it with naive pride to raise herself in my eyes that I might see, that I, too, might think well of her.”

EgoBelittleJudgementalAssholeNotes From UndergroundFyodor Dostoyevsky
Book:Notes from Underground, White Nights, The Dream of a Ridiculous Man, and Selections from The House of the Dead
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