One's journey to professional growth is much more than what meets the eye. It's not just about having the right credentials or showing up for work on time; it's about how you think, solve problems, and make decisions.
To help you navigate your career with clarity and purpose, we've put together a list of top mental models that will set you up for long-term success. These are the frameworks that guide some of the most accomplished individuals in various fields, and they can do the same for you.
1. The Pareto Principle (80/20 Rule)
What It Is: This principle suggests that 80% of the outcomes come from 20% of the efforts.
The principle was developed by Vilfredo Pareto, an Italian economist born in 1848. Pareto discovered that 80% of the land in Italy was owned by just 20% of the population. Intrigued by this disproportion, he delved deeper and found that this imbalance seemed to recur in various scenarios and across different contexts, such as wealth distribution and natural phenomena. Initially focused on economics and social sciences, the principle eventually transcended its origins to become commonly used mental model in the field of productivity.
The principle can be generlized into the thinking that when it comes to any problem, you can break it down into it's components, and those components will not be equally important.
Focussing on some of those components will give less returns, while focussing on those other might give you outsized returns. So identifying and focussing on those valuable components can propel you towards success faster.
Scenario: If you're overwhelmed by the long list of tasks at work, identify the 20% that will bring 80% of the results. Spend your energies there.
2. Circle of Competence
What It Is: Knowing what you're good at and where your limitations lie can help you make smarter career choices.
The Circle of Competence is a mental model popularized by Warren Buffett. Though the concept itself is as old as human expertise, Buffett brought it into the limelight as a guiding principle for investment strategies. He advises investors to operate within their "circle of competence," a realm where they have a deep understanding and expertise. By focusing on areas that one knows exceptionally well, the likelihood of making informed, successful decisions substantially increases.
The idea is simple but impactful: recognize what you're really good at and stick with it. Self-awareness becomes the first step; one needs to conduct an honest self-assessment to identify core competencies. Once these are clear, focusing your energy and resources on tasks and projects that lie within this circle often leads to better outcomes, higher job satisfaction, and a greater sense of achievement.
In order to make decisions in things you do have expertise in, it's then require you expand your circle of competence (and have a growth midset), instead of taking rash chances.
Scenario: If you excel at client interaction but are weak in data analytics, focus on roles that leverage your interpersonal skills.
3. Sunk Cost Fallacy
What It Is: Don't cling to a path or investment just because you've spent time or resources on it.
The idea is fairly straightforward: a sunk cost is an investment that has already been made and cannot be recovered. Over the years, behavioral economists such as Daniel Kahneman have conducted extensive research to understand why individuals, even highly educated professionals, often fall victim to this fallacy.
Companies might continue to invest in a failing project simply because they have already committed substantial resources to it. In the minds of the some people, walking away would mean admitting to a mistake, something that is often perceived as a sign of weakness or poor judgment. This creates a situation where money is thrown after bad decisions, exacerbating the financial losses and misallocating resources that could otherwise be invested in more profitable efforts.
Professionals might stick with a role or a project long after it has ceased to be beneficial for their career growth simply because they have invested time and energy into it. Similarly, employees may hesitate to voice concerns about a failing project because they feel too invested to pull the plug.
Scenario: You've spent three years in a job role that doesn't satisfy you. Rather than staying put, consider a pivot.
4. First Principles Thinking
What It Is: Breaking down complex problems into basic elements and rebuilding them from the ground up.
First Principles Thinking dates back to ancient philosophy, particularly attributed to Aristotle. The method involves breaking down complex problems into their most basic, fundamental components and then reconstructing solutions from the ground up. It concentrates on foundational truths.
When faced with intricate challenges or projects, people can employ this approach to sidestep cognitive biases and groupthink, enabling more robust problem-solving. Managers can apply first principles to optimize resource allocation, reassess workflows, or even redefine success metrics. Instead of relying on industry benchmarks or historical data, a first principles-based evaluation helps create a more tailored, efficient, and innovative work environment.
Scenario: Your team is stuck on a project. Instead of following existing protocols, you dismantle the problem to its core and approach it with a fresh perspective.
5. Systems Thinking
What It Is: Understand how individual elements interact within a whole system.
Traditional problem-solving techniques often focus on individual elements without taking into account how they interact within the larger system. Systems thinking is an approach that views problems and their solutions as part of a broader, interconnected network rather than isolated events or silos. This holistic method of analysis aims to understand how individual components within a system interact with each other, thereby revealing patterns and structures that can guide effective decision-making.
Scenario: If you aim for a managerial role, grasp how different departments in your organization are interconnected and influence one another.
6. Confirmation Bias
What It Is: The tendency to focus only on information that confirms one's preconceptions.
While it's a general human tendency rooted as long as humanity has existed, the term "Confirmation Bias" was coined in the 1960s by Peter Wason, a cognitive psychologist. It refers to the tendency to seek out, interpret, and remember information in a way that confirms one’s pre-existing beliefs.
It makes it difficult to remain objective, and to reject thinking that doesn't line up with your biases. It could lead you down to develop wrong products, worsen relationships with people, and make more bad decisions in face of evidence which might state otherwise.
For example, A CEO who is convinced that a particular market strategy will succeed might ignore warning signs or market research suggesting otherwise, potentially leading to costly mistakes. Interviewers might give undue importance to attributes that confirm their initial impressions of a candidate, thereby missing out on potentially more suitable choices.
Employees might assign bad intentions to everyday workplace conversations or feedback given in good faith.
Scenario: When considering a career move, gather diverse perspectives rather than only consulting friends who echo your existing beliefs.
7. The Eisenhower Matrix
What It Is: A method to prioritize tasks based on their urgency and importance.
The Eisenhower Matrix, also known as the Urgent-Important Matrix, takes its name from Dwight D. Eisenhower, the 34th President of the United States and a five-star general in the U.S. Army during World War II.
The matrix itself is a simple 2x2 grid that helps individuals prioritize tasks by categorizing them into four quadrants:
- Urgent and important
- Important but not urgent
- Urgent but not important
- Neither urgent nor important
By assigning tasks to these quadrants, one can better focus on what truly matters, both in the immediate sense and for long-term objectives. It serves as a visual cue that aids in decision-making, helping to avert the crisis management (for "fire-fighting" mode) mode where only the most pressing issues are addressed, often at the expense of long-term planning.
Scenario: Caught in multiple deadlines? Use the matrix to focus on what's both urgent and important.
8. The AERIS Model
What It Is: A method to effectively manage 1-1 stakeholder relationships.
The AERIS model is a model made for thinking about stakeholder management by having deeper work relationships. It is designed to make you have better conversations with with stakeholders and think about them in a deeper manner. It designed around questions you should think about, categorized into 3 parts.
- Ask Explicitly (AE)
- Reflect Internally (RI)
- Synthesize. (S)
The first category (AE) are questions where you need to ask explicitly from them and actively listen. These are questions where the answer needs to come from them, and there is little benefit to guess the answers on your own. The insights come from them.
The second category is the opposite. These are questions where there is little benefit to ask them. Those questions are the type where you need to reflect internally about them, and develop insights based on that. The insights need to come from you.
The third category is a mix of the above. These are questions where you need to ask them explicitly, reflect on them yourself too, and sythesize their thoughts with your own to come up with insights.
To learn more, read our detailed guide to the AERIS model.
Scenarios: You are thinking of things to bring up in your next 1-1 meetings with your boss. You can use Voohy (which uses the AERIS model) to think more effecitvely about it and be better prepared for 1-1s with your manager.
9. OODA Loop (Observe, Orient, Decide, Act)
What It Is: A cycle of decision-making that involves observing your environment, orienting yourself, making a decision, and then acting.
The OODA loop was initially a military decision making mental model, developed by famous american military strategist John Boyd. It stands of Observe, Orient, Decide, Act.
It's usefulness goes beyond just the military, and over the years, has been used in the fields of business, politics, sports and more. It allows for fast decision making in quickly evolving uncertain circumstances.
Observation is the beginning of the loop. Observing where you are, what situation do you find yourself in, and what needs to be done. This could involve collecting data through various channels like analytics, reports, or firsthand observations, helping you to understand the current situation.
Orientation is the art of looking at yourself in the context of your environment. You process the information you collected during the "observe" phase, put it in context, and consider it alongside your previous experiences, cultural background, and analysis, allowing you to form a comprehensive picture of the situation.
Decide is when, based on your orientation, you decide on the best course of action. This involves evaluating various options and strategies, and then selecting the one that seems most effective for achieving your goal.
Act is the final step to put your decision into action. Your actions then should be observed and fed back into a new cycle of the OODA Loop.
Scenario: You find out a colleague is spreading rumors about you. Observe the situation, orient yourself in the social hierarchy, decide your course of action, and then act.
10. Opportunity Cost
What It Is: The loss of potential gain from other alternatives when one alternative is chosen.
Opportunity cost refers to the value of the next best alternative that must be foregone when you make a decision to pursue one option over another. This is an important concept to know when it comes to prioritizing work, and dealing with multiple stakeholders.
Oftentimes you are dealing with multiple things to do, which are pulling you in different directions, but you have limited resources. Everything you do for one thing comes at the cost of not doing something for another.
Scenario: When deciding between two job offers, consider not just the salary but also other benefits, work culture, and growth potential—the opportunities you might miss out on by choosing one over the other.
11. The Six Thinking Hats
The "Six Thinking Hats" is a decision-making and problem-solving methodology developed by Dr. Edward de Bono. It segments thinking into six different modes, each represented by a colored hat: White for facts, Red for emotions, Black for risks, Yellow for benefits, Green for creativity, and Blue for process management. The approach encourages structured and parallel thinking, enabling teams to view issues from multiple angles simultaneously.
Read our article on the Six Thinking Hats where we describe it in more detail.
Scenario: In a technology company, project managers can utilize the Six Thinking Hats during team meetings to assess the feasibility of launching a new software product.
By systematically going through each 'hat,' project managers can ensure thorough consideration of all aspects, ultimately leading to more informed decisions.
