Most entrepreneurs have unique life experience. Many have encountered adversity. They tend to be thoughtful and self-aware. The humble entrepreneur is also reflective. She questions where she has been, what she believes and how it translates into her business.
This is where “Mental Models” come in. Several years ago I read a commencement speech given by Charlie Munger – longtime partner to Warren Buffet. Mr. Munger – a hugely private person – shared parts of his personal mental model with the graduating class at Southern California University. You can find the address here on You Tube and here on the Web.
Mental models are a road map for your personal belief system. The emphasis would be on “personal” as each of us sees the world in much different ways – in large part based on our unique experience.
It is rare that entrepreneurs find the time to formalize mental models. But entrepreneurs do tend to have strongly held beliefs.
I was inspired by Munger’s address to formalize my personal mental model. And it has helped tremendously in business. Here is how I organize it.
There are 5 parts of my mental model – 5 areas of the belief system. They are:
- Self-Awareness and Personal Growth.
- Interpersonal Communications
- Institutions, Business, and Culture
- Relationship to the Physical World; and,
- The Future and Spiritual.
Under each – I summarize principles that most accurately represent what I believe. The principles evolve as I read new books or have life experiences that impact how I view life.
I outline and summarize books that I read and impactful experiences in a Moleskin notebook, and then graduate the best thoughts to principles in two three inch books.
It seems like a lot of work – but it is not. Like Munger, this practice helps to keep a consistent compass with which to guide personal and business behaviors (and ethics). It also helps to stay in touch with what you believe. And it will help the humble entrepreneur to be effective. Knowing yourself helps you to better know others.
