Better Decisions: The Hidden Framework Behind Clear Thinkers

Making better decisions is different from selecting choices.

If you casually select an option from a range of alternatives, you’ve made a choice.

If you react without thinking, you’ve made an unconscious choice.

However, neither of these is equivalent to a decision. A decision is a choice that involves conscious thought.

 

Making Better Decisions

Making Better Decisions

Your decision itself represents the outcome of your decision-making process.

That process is about weighing your options to select the best one, and it’s composed of four stages:

  1. Define the problem,
  2. Explore possible solutions,
  3. Evaluate the options, and
  4. Choose and execute the best option.

If you don’t apply this process, your choice doesn’t necessarily count as a decision.

Stage 1: Define the Problem

The first principle of decision-making is to define the problem clearly.

Defining the problem starts with identifying two things:

  1. What do you want to achieve?
  2. What obstacles stand in the way of getting it?

The best decision-makers know that the way you define a problem shapes everyone’s perspective about it and determines the solutions.

The most critical step in any decision-making process is to get the problem right. This part of the process offers invaluable insight.

You can’t solve what you don’t understand.

That’s why defining the problem is so valuable: it’s your chance to absorb all the relevant information needed for a solution.

Two Principles to Apply when Defining the Problem

The best decision-maker understands the real problem by talking to experts, seeking others’ opinions, hearing different perspectives, and sorting out what’s real from what’s not.

When you really understand a problem, the solution seems obvious.

These two principles follow the example of the best decision-makers:

  1. The Definition Principle: Take responsibility for defining the problem. Don’t let someone define it for you. Do the work to understand it. Don’t use jargon to describe or explain it.
  2. The Root Cause Principle: Identify the root cause of the problem. Don’t be content with simply treating its symptoms.

A handy tool for identifying the root cause of a problem is to ask yourself, “What would have to be true for this problem not to exist in the first place?

How to Safeguard the Problem-Defining Stage

There are two ways to safeguard this stage of the decision process against our defaults: create a firewall and use time to your advantage.

SAFEGUARD 1: Build a problem-solution firewall.

Separate the problem-defining phase of the decision-making process from the problem-solving phase.

Give yourself time to get clear on what the problem is before you jump into solving it. Often, you’ll discover that your first attempt to define the underlying issue is rarely the most accurate.

TIP: Remember that writing out the problem makes the invisible visible. Write down what you think the problem is and then look at it the next day.

If you find yourself using jargon in your description, it’s a sign that you don’t fully understand the problem. And if you don’t understand it, you shouldn’t be deciding about it.

SAFEGUARD 2: Use the test of time.

Test whether you’re addressing the root cause of a problem, rather than merely treating a symptom, by asking yourself whether it will stand the test of time.

Will this solution fix the problem permanently, or will the problem return in the future? If it seems like the latter, then chances are you’re only treating a symptom.

Short-term solutions might make sense in the moment, but they never win in the long term. You feel like you’re moving forward when you’re just going in circles.

Most times, people choose short-term solutions because fixing something quickly shows others they’re doing something. That’s the social autopilot at work.

It fools people into mistaking action for progress, the loudest voice for the right one, and confidence for competence.

Time eventually reveals short-term solutions to be Band-Aids that cover deeper problems. Don’t be fooled!

Put your Energy into Long-term Solutions

You can put your energy into short-term solutions or long-term solutions, but not both.

Any energy that’s channelled toward short-term solutions depletes energy that could be put into finding a long-term fix.

Yes, sometimes short-term solutions are necessary to create space for long-term solutions. But just make sure you’re not putting out flames in the present that will reignite in the future.

When the same problem returns repeatedly, people end up exhausted and discouraged because they never seem to make real progress.

Extinguish the fire today so it can’t burn you tomorrow.

Stage 2: Explore Possible Solutions

Once you’re clear on the problem, think of possible solutions.

Develop ways to overcome the obstacles and get what you want. Imagine different possible futures to come up with possible solutions. Find out different ways the world could turn out.

Admiral James Stockdale once said, “You must never confuse faith that you will prevail in the end—which you can never afford to lose—with the discipline to confront the most brutal facts of your current reality, whatever they might be.”

Problems Don’t Disappear by Themselves

We all face difficult problems.

The autopilots narrow our perspective. They narrow our view of the world and tempt us to see things as we wish them to be, not as they are.

The Four Enemies of Clear Thinking

The Four Enemies of Clear Thinking

You can secure the outcomes you want only by dealing with reality. This is the often-brutal truth of how the world really works.

The worst thing you can do with a difficult problem is resort to magical thinking—putting your head in the sand and hoping the problem will disappear on its own or that a solution will present itself to you.

The antidote is to leave nothing out of consideration.

The Bad Outcome Principle

Don’t just imagine the ideal future outcome.

Imagine the things that could go wrong and how you’ll overcome them if they do. Leave nothing out of consideration. Nothing should surprise you.

The best decision-makers know that bad things happen, and that they’re not immune.

They don’t just wing it and react. They anticipate and make contingency plans. And because they’re ready, their confidence doesn’t crack.

It’s what the venture capitalist Josh Wolfe likes to say, “Failure comes from a failure to imagine failure.”

The bottom line is that people who think about what’s likely to go wrong and determine the actions they can take are more likely to succeed when things don’t go according to plan.

Another smart way to assess your options is by using the following principle.

The Second-Level Thinking Principle

Ask yourself, “And then what?”

When you solve a problem, you make a change in the world. That change can be either in line with your long-term objectives or not.

For example, if you’re hungry and you eat a chocolate bar, you’ve solved the immediate hunger problem, but that solution has consequences: the inevitable sugar crash an hour or two later.

If your longer-term goal is to be productive that afternoon, the chocolate bar is not the best solution to your immediate problem.

Indeed, eating a chocolate bar once won’t ruin your diet or your day.

But repeating that seemingly small error in judgment daily over the course of your lifetime will not put you in a position for success.

Tiny choices compound. That’s why second-level thinking is needed.

Practice Second-Level Thinking

Inside you, there is competition between your today self and your future self.

Your future self often wants you to make different choices than you want to make today. While you care about winning the present moment today, your future self cares about winning the generation.

Each of these personalities offers a different perspective on problems. Your future self sees the benefits or consequences of the accumulation of your seemingly insignificant choices.

Think of first-level thinking as your today self and second-level thinking as your future self.

First-level thinking looks to solve the immediate problem without regard to any future problems a solution might produce.

Second-level thinking looks at the problem from beginning to end. It looks past the immediate solution and asks, “And then what?” The chocolate bar doesn’t seem so tempting when you answer this question.

You can’t solve a problem optimally unless you consider not just whether it meets your short-term objectives but whether it meets your long-term objectives as well.

A failure to think of second-order consequences leads you unknowingly to make bad decisions.

You can’t ensure the future is easier if you only think about solving the current problem and don’t give due consideration to the problems created in the process.

How to Safeguard the Solution-Exploring Stage

Just because you’ve thought of a couple of solutions, though, doesn’t mean you’ve eliminated your blind spots. Binary thinking is when you consider only two options to solve a problem.

When you first look at the choice, it seems simple: You launch the product, or you don’t. You take the new job, or you don’t. We get married or we don’t. It’s black and white: “do” or “do not.” There isn’t any middle ground.

Most of the time, though, this type of thinking is limited.

Some decisions might seem to come down to a choice between this or that, but there’s often another option.

The best decision-makers know this and see binary thinking as a sign that they don’t fully understand a problem. They are trying to reduce the problem’s dimensions before fully understanding them.

Novices fail to see the complexities of a problem that are apparent to a master. Masters see simplicity hiding in the complexity.

When you reduce the problem to black-and-white solutions, you need to check to make sure you’re the master and not the novice.

The 3+ Principle

Force yourself to explore at least three possible solutions to a problem.

If you find yourself considering only two options, force yourself to find at least one more. Doing the work to add a third option forces you to be creative and really dig into the problem.

Even if you don’t choose the third option, forcing yourself to develop it helps you understand the problem better.

It gives you more opportunities to align your decisions with your goals, offers more optionality in the future, and increases the chances that you’ll be happier with your decision down the road.

Also note these two safeguards against binary thinking:

  1. Imagine that one of the options is off the table. Take each of the options you’re considering, and one at a time, ask yourself, “What would I do if that were not possible?”
  2. Come up with “Both-And” options. Try to find ways of combining the binary. Think not in terms of choosing either X or Y, but rather having both X and Y.

Recognise Your Opportunity Costs

The real world is full of trade-offs, some of which are obvious, and others that are hidden.

Opportunity costs are the hidden trade-offs that decision-makers often have trouble assessing. Every decision has at least one of them.

Many people focus solely on what they stand to gain by choosing an option and forget to factor in what they stand to lose by forgoing another.

But the ability to size up these costs is one of the things that separates great decision-makers from the rest.

Thinking through opportunity costs is one of the most effective things you can do in business and in life.

The optimal way of exploring your options is to take all the relevant factors into account. You can’t do this without considering opportunity costs.

There are two principles concerning opportunity costs.

  1. The Opportunity Cost Principle: Consider what opportunities you’re forgoing when you choose one option over another.
  2. The 3-Lens Principle: View opportunity costs through these three lenses: (1) Compared with what? (2) And then what? (3) At the expense of what?

TIP: If you’re having trouble assessing opportunity costs, it sometimes helps to put a price on them. For example, putting a price on those extra two to three hours a day spent commuting will make them more visible and easier to assess.

Stage 3: Evaluate the Options

You’ve worked out some potential solutions in detail. Each suggests a course of action that might work.

You now need to evaluate the options and pick the one most likely to make the future easier.

There are two components here:

  1. Your criteria for evaluating the options
  2. How do you apply them?

Each problem has its own specific criteria.

If you find yourself struggling to determine specific criteria, it’s a sign either that you don’t really understand the problem, or that you don’t understand the general features that criteria are supposed to have.

Those features include the following:

  • Clarity: The criteria should be simple, clear, and free of any jargon. Ideally, you should be able to explain them to a twelve-year-old.
  • Goal promotion: The criteria must favour only those options that achieve the desired goal.
  • Decisiveness: The criteria must favour exactly one option; they can’t result in a tie among several.

Defining the Most Important Thing

Not all criteria are the same.

There might be a hundred variables, but they are not equally important. When you’re clear on what’s important, evaluating options becomes easier.

Many people are shy to pick out the most important thing because they don’t want to be wrong.

How to Safeguard the Evaluation Stage

There is only one most important thing in every project, goal, and company.

If you have two or more most important things, you’re not thinking clearly. Often, when we start pursuing an option, we find that we have to rank one criterion above another—even if only slightly.

Most of the time, making your criteria battle is about calibrating shades of gray. It’s a mental exercise that takes you out of reactive mode and moves you toward deliberative thinking.

Once you’ve settled on your criteria and their order of importance, it’s time to apply them to the options.

Doing so requires that you have information about those options that meets two conditions: it’s relevant, and it’s accurate.

Most Information is not Relevant

When it comes to getting information that’s relevant to the decision, remember this:

The Targeting Principle: Know what you are looking for before you start sorting through the data.

 

Make Better Decisions by filtering irrelevant information

Make better decisions by filtering irrelevant information

People who can quickly distinguish what matters from what doesn’t gain a huge advantage in a world where information flows endlessly.

How to Get Accurate Information from the Source

When it comes to getting accurate information, there are two principles you should know: the HiFi Principle and the HiEx Principle.

The first will help you find the best intel possible from within any given situation, and the second will help you find the best intel possible from outside of it.

The HiFi Principle

Get high-fidelity (HiFi) information.

This is information that’s close to the source and unfiltered by other people’s biases and interests. The quality of your decisions is directly related to the quality of your thoughts. The quality of your thoughts is directly related to the quality of your information.

How do you get better information?

If you want to make better decisions, you need better information.

To get this, the person closest to the problem often has the most accurate information about it. What they tend to lack is a broader perspective.

Making Sure You Get HiFi Information

Now that you understand the importance of HiFi information, here are the safeguards for ensuring you always get it.

SAFEGUARD 1: Run an experiment. Try something out to see what kinds of results it yields.  An experiment is a low-risk way of gathering important information.

SAFEGUARD 2: Evaluate the motivations and incentives of your sources. Remember that everyone sees things from a limited perspective.

To get a clearer picture of the concrete reality, consider how each person stands to benefit from the information they give you, and weave those perspectives together.

When you’re getting information from other people, you need to keep an open mind. That means withholding your own judgment as long as possible.

People often undermine the information-gathering process by subjecting others to their judgments, beliefs, and perspectives.

SAFEGUARD 3: When you get information from other people, ask questions that yield detailed answers. Don’t ask people what they think; instead, ask them how they think.

Your goal in decision-making is not just to gather information, but to gather information relevant to our decision.

That requires more than building an inventory of data points; it requires understanding the why and how behind those data points—the principles that good decision-makers use in this area.

Getting at those principles requires asking the right kinds of questions. Here are three recommended questions.

Question 1: What are the variables you’d use to make this decision if you were in my shoes? How do those variables relate to one another?

Question 2: What do you know about this problem that I (or other people) don’t? What can you see based on your experience that someone without your experience can’t? What do you know that most people miss?

Question 3: What would be your process for deciding if you were in my shoes? How would you go about doing it? (Or: How would you tell your mother/friend to go about doing it?)

The High Expertise (HiEx) Principle

The second principle for getting accurate information is getting highly expert information.

Get high-expertise (HiEx) information, which comes both from people with a lot of knowledge and/or experience in a specific area, and from people with knowledge and experience in many areas.

Experts can increase the accuracy of your information and decrease the time it takes to get it. Getting even one expert’s advice can cut through a lot of confusion and help you quickly formulate and/or eliminate options.

Even one expert’s opinion can be more helpful than the thoughts and guesses of dozens or hundreds of amateurs. But how do you recruit one to work with you?

Getting Experts on Your Side

The first thing to understand is that experts love sharing what they’ve learned when they know it’ll make a difference.

Here are five tips on how to approach an expert in a way that will set your request apart and get people excited to help you.

  1. Show that you have skin in the game: When you reach out to an expert, make them aware of the time, energy, and money you’ve already invested in the problem. Let them know you’ve done the work and that you’re stuck.
  2. Get precise on your ask: Be very clear about what you’re looking for. Are you looking for them to review your plan and provide feedback? Are you looking for them to introduce you to people who can solve the problem? Whatever it is that you want, just be clear.
  3. Show respect for their time and energy: Explicitly stating that the person you’re reaching out to is an expert whose time and energy you respect goes a long way to secure their goodwill. You should also demonstrate your respect for them, though. For instance, do not ask for fifteen minutes to pick their brain; instead, ask if they offer one-off consulting sessions and how much they charge for them.
  4. Ask for their reasons and listen: Don’t just ask experts what they think, ask them how they think. Use them as a resource to train yourself in how to evaluate things so that you can start embodying an expert way of operating. You don’t have to agree with what they’re saying, but remember: your goal is to learn from them how to think better, not to have them solve your problem for you.
  5. Follow up: If you want to build a network and make this more than a transactional request, follow up to report on your progress, no matter what the outcome is. Whether their advice helped you in this case or not, following up and keeping them updated on your progress primes them to help you in the future. When they see that you took their advice seriously, they’re going to want to help you again.

How to Tell the Difference Between Experts vs. Imitators

Getting HiEx information requires that you get help from real experts.

SAFEGUARD: Take time to distinguish real experts from imitators. Not everyone who claims to be an expert is. Take the time to know the difference.

Experts are usually enthusiastic about their area of expertise. That’s why they’re good at it: they spend even their spare time mastering and refining their knowledge and skills, and it shows. Imitators are less concerned with being great and more concerned with looking great. That concern makes it easy for the ego to take over.

Imitators can’t answer questions at a deeper level. Specific knowledge is earned, not learned, so imitators don’t fully understand the ideas they’re talking about.

Imitators can’t adapt their vocabulary. They can explain things using only the vocabulary they were taught, which is often full of jargon.

Imitators get frustrated when you say you don’t understand. That frustration is a result of being overly concerned with the appearance of expertise, which they might not be able to maintain if they have to really get into the weeds with an explanation.

Experts can tell you all the ways they’ve failed. They know and accept that some form of failure is often part of the learning process. Imitators, however, are less likely to own up to mistakes because they’re afraid it will tarnish the image they’re trying to project.

Imitators don’t know the limits of their expertise. Experts know what they know, and also know what they don’t know.

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Safeguards: Turning Your Weaknesses and Mistakes into Strengths

Safeguards are tools you must master to stay in control and manage your weaknesses.

A part of taking control of your life is controlling the things you can.  Another part is managing the things you can’t. This includes your vulnerabilities or weaknesses.

James Clear rightly put it as “Life gets easier when you don’t blame other people and focus on what you can control.

Knowing Your Weakness

We all have weaknesses, and most of them are built into our biology.

For instance, we can become hungry, thirsty, fatigued, sleep-deprived, emotional, distracted, or stressed.

In most situations, all these conditions prompt us to react without reason. And instead of thinking clearly in these situations, it can blind us to the deciding moments of our lives.

Yet, some of our weaknesses aren’t built into our biology.

Instead, they are acquired through habit and stay with us by force of comfort. For example, if you drink a bottle of Coke or skip a workout today, you’re not going to go from healthy to unhealthy suddenly.

However, these choices can end up becoming bad habits through repetition and accumulate into a disaster.

Because bad habits are easy to acquire when there is a delay between action and consequence.

Don’t make Bad Choices all the time

The formula for failure is to consistently repeat a few small errors.

Just because the results aren’t immediately felt doesn’t mean consequences aren’t coming. Be smart enough to know the potential results of decisions. While good choices repeated make time your friend, bad ones make it your enemy.

Whatever your weaknesses and whatever their origins, don’t let the autopilots take command of your life.

The autopilots are the enemies stopping you from making the right decisions, and they are:

  1. The Emotional Autopilot: We react based on how we feel instead of what’s true.
  2. The Ego Autopilot: We get defensive when our ego or status feels attacked.
  3. The Social Autopilot: We go along with what everyone else is doing.
  4. The Comfort Autopilot: We stick with what’s familiar and avoid change.

I explained this in full detail in a previous article HERE.

The Two Ways of Managing Your Weaknesses

There are two ways to manage your weaknesses.

  1. Build your strengths to help you overcome the weaknesses you’ve acquired.
  2. Implement safeguards to help you manage any weaknesses you’re having trouble overcoming with strength alone.

The formula is simple: To think clearly and make good life-changing decisions, manage your inbuilt Weaknesses (e.g. hunger, thirst etc.) with safeguards. Then manage your acquired weaknesses (e.g. refusing to start something because of fear or coasting on your talent without hard work) by combining your safeguards with your strengths.

Safeguards: The Two Ways of Managing Your Weaknesses

Safeguards: The Two Ways of Managing Your Weaknesses

But there is something you must understand first…

Why We Fail to See Our Weaknesses?

We fail to see our own weaknesses for three main reasons.

  1. These weaknesses can be hard for us to detect because they’re part of the way we’re accustomed to thinking, feeling, and acting.
  2. Seeing our weaknesses bruises our egos. especially when they are behaviours that are deeply part of us.
  3. We have a limited perspective because it is very hard to understand a system that we are a part of.

When we fail to see our weaknesses, there is a gap in our thinking that comes from believing that the way we see the world is the way the world really works.

3 Main Reasons we Fail to See our Weaknesses

It’s only when you change your perspective and look at the situation through the eyes of other people; that’s when you realize what we’re missing. You begin to appreciate your own blind spots and see what we’ve been missing.

What are Safeguards and How to Protect Yourself with Them

Safeguards are tools for protecting yourself from yourself.

They help you overcome weaknesses that you don’t have the strength to overcome. Safeguards increase the amount of “friction” required to do something that’s contrary to your long-term goals. Removing all junk food from your house to encourage healthy living is an example of a safeguarding strategy.

Here are a few safeguards to consider.

Safeguard Strategy 1: Prevention

This aims to prevent problems before they happen.

One way to do this is to avoid decision-making in unfavourable conditions. You can use the principles behind HALT as a safeguard for making better decisions. HALT is an acronym for Hungry, Angry, Lonely and Tired.

If you have an important decision to make, ask yourself:

  • Am I hungry?
  • Am I angry or emotional?
  • Am I lonely or stressed by my circumstances, such as being in an unfamiliar environment or pressed for time?
  • Am I tired, sleep-deprived, or physically fatigued?

If the answer is yes to any of these questions, avoid making the decision if you can. Wait for a more opportune time. Otherwise, your autopilots will take over.

Safeguard Strategy 2: Automatic Rules for Success

There is an unexpected way to improve your decision-making processes and think clearly.

Replace your decisions with rules. Nothing forces you to accept the default behaviours and rules from your upbringing and life circumstances. You can decide to eliminate them at any time and replace them with better ones.

It turns out that rules can help automate your behaviour to put you in a position to achieve success and accomplish your goals.

Have you noticed that when you make decisions, you often think of the goals you want to achieve and work backwards to identify the means of achieving them?

If you want to save more money, you might hide part of your salary from yourself at the end of the month. You use your willpower to accomplish these goals. Once they’re accomplished, you often go back to the default behaviour you had before.

Eventually, you realise you’re back where you don’t want to be and begin the entire process again.

The Benefit of Automating Your Behaviour with Rules and Safeguards

This approach is flawed because it involves constant decision-making and effort. Choosing goals is necessary but not sufficient for accomplishing them. You also need to pursue those goals consistently and make daily choices in pursuit of your goals.

As these choices add up, it becomes harder, not easier, to consistently make choices that move you toward your goals and not away from them.

Why not bypass individual choices altogether and create an automatic behaviour that requires no decision-making in the moment and that gets no pushback from others? This automatic behaviour becomes a rule.

For instance, let’s say your goal is to drink less soda.

Rather than deciding on a case-by-case basis whether you’re going to drink soda (something that requires a lot of effort and that is prone to error), make a rule instead.

For example, “I only drink soda at dinner on Friday,” or maybe, “I don’t drink soda at all.”

Having a rule means not having to decide at every meal. The execution path is short and less prone to errors.

Safeguard Strategy 2 (Example): Automatic Rules for Success

Safeguards Strategy 2 (Example): Automatic Rules for Success

Creating personal rules is a powerful technique for protecting yourself from your own weaknesses and limitations. Sometimes those rules have surprising benefits.

Safeguard Strategy 3: Creating Friction

Another safeguarding strategy is to increase the amount of effort it takes to do things that are contrary to your goals.

If there were a recipe for accumulated disaster, it would be giving the best of ourselves to the least important things and the worst of ourselves to the most important things.

The path to breaking bad habits is making your desired behaviour the default behaviour.

It’s easy to underestimate the role ease plays in decision-making. Since behavior follows the path of least resistance, a surprisingly successful approach is to add friction where you find yourself doing things you don’t want to do.

Safeguard Strategy 4: Putting in Guardrails

Another safeguarding strategy is to create operating procedures for yourself because you know from hard experience when your autopilots tend to override your decision-making.

The autopilots prevent us from seeing what’s happening and from responding in ways aligned with our best self-image.

Checklists, for instance, offer a simple way to override your autopilots.

Pilots go through a preflight checklist every time they fly. The checklist acts as a safeguard, forcing us to slow down whatever we’re doing and go back to basics:

  • What am I trying to accomplish?
  • And what are the things I need to accomplish it?

Questions like these are the guardrails that will keep you on the road to success.

Safeguard Strategy 5: Shifting Your Perspective

Each of us sees things only from a particular point of view.

Nobody can see everything. That doesn’t mean, however, that we can’t shift the way we see things in any given situation. Having an outside perspective on your situation allows you to see more of what’s happening.

Changing your perspective changes what you see.

How to Handle Mistakes

Mistakes are an unavoidable part of life; even the most skilled people make mistakes.

Most times, mistakes happen because there are so many factors beyond our knowledge and control that impact our success. This is true especially when we’re pushing the boundaries of knowledge or potential.

If you got some results you didn’t want, the world is telling you at least one of two things:

  1. You were unlucky
  2. Your ideas about how things work were wrong.

If you were unlucky, trying again with the same approach should lead to a different outcome. When you repeatedly don’t get the outcomes you want, though, the world is telling you to update your understanding.

Mistakes Present Us with a Choice

As with anything else, there are better and worse ways of handling mistakes.

The world doesn’t stop just because you made a mistake. Life goes on, and you need to go on too. You can’t simply throw your hands up and walk away.

There are other decisions to make, other things to accomplish, and hopefully you won’t repeat that kind of mistake in the future.

Everyone makes mistakes because everyone has limitations. Even you. Trying to avoid responsibility for your decisions, your actions, or their outcomes, though, is equivalent to pretending you don’t have limitations.

One thing that sets exceptional people apart from the crowd is how they handle mistakes and whether they learn from them and do better as a result.

Mistakes present a choice: whether to update your ideas, or ignore the failures they’ve produced and keep believing what you’ve always believed. More than a few of us choose the latter.

The Biggest Mistake That You Can Make

The biggest mistake people make typically isn’t their initial mistake.

It’s the mistake of trying to cover up and avoid responsibility for it. The first mistake is expensive. The second one costs a fortune.

There are three problems with covering up your mistakes.

  1. You can’t learn if you ignore your mistakes.
  2. Hiding them becomes a habit.
  3. The cover-up makes a bad situation worse.

Admitting errors and correcting yourself is a time-saver that empowers you to avoid making more mistakes in the future.

However, mistakes also provide rare opportunities for getting closer to the kind of person you want to be, should you choose to heed their lessons.

Use those opportunities wisely! Don’t squander them.

The Four Steps to Handling Mistakes

The four steps to handling mistakes more effectively are as follows:

  1. Accept responsibility
  2. Learn from the mistake
  3. Commit to doing better
  4. Repair the damage as best you can.

Step 1: Accept Responsibility

If you’ve taken command of your life, you need to acknowledge any contribution you’ve made to a mistake and take responsibility for what happens afterwards.

Even if the mistake isn’t entirely your fault, it’s still your problem, and you still have a role to play in handling it.

Step 2: Learn from the Mistake

Take time to reflect on what contributed to the mistake by exploring the various thoughts, feelings, and actions that got you here.

If it’s an emergency, and you don’t have time to reflect now, be sure to come back to it. If you don’t identify the problem’s causes, after all, you can’t fix them.

And if you can’t fix them, you can’t do better in the future. Instead, you’ll be doomed to repeat the same mistake.

If you reach this stage and you find yourself blaming other people or saying things like, “This isn’t fair!” or “Why did this happen to me?” then you haven’t accepted responsibility for the mistake. You need to go back to Step 1.

Step 3: Commit to Doing Better

Create a plan for doing better in the future.

It could be a matter of building a strength like greater self-accountability or greater self-confidence. This step focuses on planning to do better in the future and follow through on that plan.

Only then will you be able to change how you do things and avoid repeating the mistakes of the past.

Step 4: Repair the Damage as Best You Can

The key here is not letting a bad situation become a worse situation.

Mistakes turn into anchors if you don’t accept them. A part of accepting your mistakes is learning from them and then letting them go.

You can’t change the past, but you can work to undo the effects it’s had on the future.

PS.: This is Part 3 for my review on the Book – Clear Thinking: Turning Ordinary Moments into Extraordinary Moments by Shane Parrish. 

In case you missed the previous parts before learning about safeguards, here are the links:

Part 1 – Clear Thinking: How and Why Do People Make Bad Decisions?

Part 2 – High Standards: Building Strength for Clear Thinking

Whenever you’re ready, there are 3 ways I can help you:

  1. Become Your Highest Self: Every Sunday, I share actionable tips from successful people on how to master money, mindset and meaning. (Please confirm your subscription on the first mail received so the newsletter does not go to junk.)
  2. Fast Track Book: Stay relevant, master new skills, and be ready for whatever life throws at you.  This is the complete roadmap to speed up your learning process and expand the opportunities available to you. Available on Amazon.
  3. Personal Wealth Maximizer: Take control of your finances and build financial freedom. The Personal Wealth Maximizer give you the exact knowledge and tools to break free from money struggles and build financial confidence.

High Standards: Building Strength for Clear Thinking

Developing high standards for yourself begins by building strength to counter the forces that hinder your clear thinking.

It takes more than willpower to defeat the enemies of clear thinking.

The enemies stopping the rest of us from thinking clearly are these four major autopilots:

  1. The Emotional Autopilot: We react based on how we feel instead of what’s true.
  2. The Ego Autopilot: We get defensive when our ego or status feels attacked.
  3. The Social Autopilot: We go along with what everyone else is doing.
  4. The Comfort Autopilot: We stick with what’s familiar with and avoid change.
The Four Enemies of Clear Thinking

The Four Enemies of Clear Thinking

We must harness equally powerful biological forces to prevent our “autopilots” from standing in the way of sound judgment.  The same forces that the “autopilots” would use to destroy us must be used to our benefit.

The force of comfort is the most important of these.

There are two sides to comfort.

Comfort is the tendency to keep things as they are.

It works against us if the current situation is dysfunctional or suboptimal. However, the current situation need not be less than ideal.

Comfort becomes an almost invincible force that unlocks your potential if you train yourself to continuously think, feel, and act in ways that advance your most important goals. This only happens if you build strength.

Strength is the ability to use sound judgment and override your autopilots.

It makes no difference how unfair things may appear or what is happening in the world. Your feelings of embarrassment, threat, or rage are not important.  More importantly, the person who can step back, centre themselves, and step out of the moment will perform better than the one who is unable to do so.

Here are four key strengths you’ll need to override your autopilots:

  1. Self-Ownership: Taking responsibility for your growth and using your brain instead of letting autopilots run the show.
  2. Self-Awareness: Knowing your weak spots and recognising when your autopilots are trying to take over.
  3. Self-Discipline: Controlling your emotions and impulses so they don’t hijack your thinking.
  4. Self-Assurance: Believing in your worth so your ego doesn’t need to constantly prove itself.

Key Strength #1: Self-Ownership

Having a sense of ownership means taking accountability for your actions, shortcomings, and skills. You might never succeed in life if you are unable to do this.

It doesn’t matter if you don’t have someone in your life who holds you accountable. You can hold yourself accountable. Hold yourself to a high standard, even if others don’t.

You don’t need to be rewarded or punished by anyone else.

Although external rewards are nice, you don’t need them to give it your all. Your honest assessment of yourself is more important than those of others. When you make a mistake, dare to acknowledge your own fault and say, “This is my fault. I must perform better.”

You have more control over your life than you may realize, even though you may never have asked for it.

You can always improve your position tomorrow by doing something right now. Even if you are unable to solve the issue, what you do next will either improve or worsen the situation. Every action you can take, no matter how small, contributes to your growth.

It’s Not Your Fault, but It’s Still Your Responsibility

Even if something happened that was beyond your control, you still have a responsibility to handle it as best as you can.

Most times, we are unable to grow because of our need to defend ourselves. It’s easy to throw your hands up and say you have no control over the problems you’ve found yourself in. However, complaining doesn’t make the current circumstance you’re in any better.

Nothing gets better when you think about how it wasn’t your fault.

You still must deal with the consequences. So, instead focus on the next action that will bring you closer to your goal. Choosing to take responsibility for your actions regardless of the circumstances is the first step towards becoming exceptional.

Exceptional people don’t waste time hoping for a better hand because they understand that they can’t change the one they’ve been dealt.

Instead, they focus on how they will use the cards at their disposal to get the best outcome. They don’t hide themselves from the spotlight. Whatever the challenge, the best people take it on.

When you give up negotiating and begin to accept the situation as it is, solutions become easy to see.

This is because focusing on your next course of action rather than how you got here in the first place gives you a lot of options.  You get better results when you prioritize results over ego.

Things can always get better or worse depending on how you react.

Although you have no control over everything, you do have control over how you react, which can either improve or worsen the situation.

Every action you take affects the future, bringing you one step closer to or one step farther from the results and person you desire.

“Will this action make the future easier or harder?” is a useful question to ask yourself before taking any action.

By asking this unexpectedly straightforward question, you can shift your viewpoint and prevent things from getting worse.

Complaining does not Solve Anything

I know it’s difficult to face reality.

So, it’s much simpler to point the finger at circumstances beyond our control than to examine our own involvement. But it is not productive to complain. Complaining merely deceives you into believing that the world ought to operate differently than it does.

Solving problems also becomes harder when you distance yourself from reality. However, you can always do something today to ease the burden of the future, and the moment you stop whining, you begin to find it.

Complaining tries to confirm that you had little control over the result when you are always blaming other people, the environment, or the circumstances.

But that wasn’t the case.

The fact is that we make the same decisions repeatedly in life. Those decisions turn into habits, which in turn shape our paths and, ultimately, our results.  We release ourselves from any accountability for causing those undesirable results when we rationalize them away.

The things you decide not to do are just as important as the things you decide to do.

The true measure of a person’s character is how much they are prepared to deviate from the norm to do the right thing.

Self-ownership is the strength of understanding that, despite your lack of control over everything, you do have control over how you react to it.  It’s an attitude that enables you to act rather than merely respond to life’s challenges. It turns challenges into chances for development and learning.

Self-ownership is understanding that how you handle adversity has a greater impact on your happiness than the adversity itself.  It is also realising that sometimes the best course of action is to simply accept things and move on.

Key Strength #2: Self-Awareness

Understanding what you can do and what you can’t do is a key component of self-awareness.

You need to be aware of your strengths and weaknesses, your limitations and abilities. Know what you can and cannot control. Be aware of your own knowledge and ignorance.

Asking yourself how often you say “I don’t know” throughout the day will help you better understand your level of self-awareness. You’re probably ignoring things that surprise you or minimising results rather than comprehending them if you never say, “I don’t know.”

The secret to playing games you can win is knowing what you know and don’t know.

How you use your knowledge matters more than how much you know.

One of the most useful skills you can possess is the ability to identify what you know.

When you play games where other people have the aptitude and you don’t, you’re going to lose. You have to figure out where you have an edge and stick to it. – Charlie Munger

Knowing the limits of your knowledge is far more important than the extent of your knowledge. Because understanding your capabilities and their limitations, as well as your strengths and weaknesses, is crucial to overriding your autopilots. Your autopilots will take advantage of your weaknesses to take control of your situation if you are unaware of them.

Key Strength #3: Self-Discipline

The capacity to master your desires, fears, and other emotions is known as self-discipline.

The goal of self-discipline is to make room for reason rather than heedlessly following gut feelings. It’s about being able to see and control your feelings as though they were inanimate objects. Self-discipline is about separating yourself from your feelings and understanding that you oversee how you react to them.

When your emotions feel overwhelming, you have two options:

  1. Respond when they ask you to or
  2. Take a step back and decide if it’s worthwhile to follow them.

Without any conscious thought, the emotional autopilot sets off a reaction to eliminate any separation between you and your feelings.  Even if it means undermining the future, its goal is to win and control your everyday moments. However, self-discipline enables you to control your emotions.

Being able to exercise self-discipline to complete tasks regardless of your current motivation is a major component of success. Because in the long term, disciplined consistency is far more important than emotional intensity.

Persistence and routine are what keep you going until you accomplish your goals, even though inspiration and excitement may get you started.

While anyone can stay motivated for a short while, the longer a project takes, the fewer people who can stay excited.  Those who achieve the greatest success possess the self-discipline to continue regardless. They still show up, even though it’s not always thrilling.

Key Strength #4: Self-Assurance

Being self-assured means having faith in your skills and your moral principles.

To think for yourself and to maintain your composure in the face of emotion, ego, comfort, or social pressure, you need self-confidence. You must realize that not all outcomes are immediate and focus on doing the necessary work to eventually obtain them.

Self-assurance encourages adaptability in the face of shifting conditions and resilience in the wake of unfavourable comments.

Whether or not other people value your skills, be aware of them and how they contribute to the work you do. You will be able to overcome any new obstacles and challenges if you have developed a strong sense of self-assurance.

Know the Difference Between Confidence and Ego

Self-assurance is what makes you make tough choices and grow in self-awareness.

Your ego will do everything in its power to keep you from admitting your shortcomings, but self-assurance gives you the courage to do so. This is how you learn humility. Overconfidence is a weakness rather than a strength, and confidence without humility is the same thing.

Confident people can ask for help when they need it, own up to their shortcomings and vulnerabilities, and accept that others may be more skilled than they are at a particular task.

Having doubts about your ability to perform a task happens to everyone. Even the most competent people occasionally question this. However, people who are confident in themselves never succumb to feelings of hopelessness or inadequacy.

Instead, self-assured individuals remain committed to finishing the task at hand, even if it necessitates seeking assistance from others. Your self-assurance grows with each accomplished task, and confidence is earned in this way.

Self-Assurance also Comes from How You Talk to Yourself

Lack of self-assurance kills more dreams than a lack of competence.

Although self-assurance is frequently a result of our achievements, it also comes from the way you speak to yourself. Talking to yourself about your past struggles is important because it gives you the courage to face challenges in the future.

Self-assured people don’t fear reality because they know they can manage it. People who are self-assured don’t give a damn about what other people think of them, they don’t mind being different, and they’re willing to take the chance of looking foolish while trying something new.

They have sufficiently rebuilt themselves after being beaten down to know that they can do it again if necessary.  Self-assured people take their feedback from reality, not popular opinion.

The voice that reminds you of everything you’ve done in the past is the most important one to pay attention to. Even though you may not have done this specific task before, you can figure it out.

Your Self-Assurance is Linked to Honesty

The ability to accept uncomfortable facts is another aspect of self-confidence.

The world is not how we would like it to be, and we must all deal with it as it is. The sooner you respond to challenging realities and cease denying uncomfortable facts, the better.

Self-assured people are honest about their own intentions, deeds, and outcomes. They can spot instances in which the voice in their head may be disregarding reality. Additionally, they pay attention to what the outside world has to say rather than seeking out various opinions.

You must be open to changing your mind to be right.  Or you’ll be wrong a lot if you’re not open to changing your mind.

Those who are unable to zoom in and out and view the issue from various perspectives are the ones who are usually on the wrong side of the spectrum. They become stuck with their own viewpoint. Blind spots occur when you are unable to view an issue from several angles. Blind spots can lead to problems.

Admitting your mistakes is a sign of strength, not weakness.

Being flexible is demonstrated by acknowledging that someone has a better explanation than you.

It takes courage to face reality. It takes guts to change your mind or reconsider something you believed to be true. Admitting that something isn’t working requires guts. To take criticism that damages your self-esteem requires bravery.

The challenge of facing reality is ultimately the challenge of facing ourselves.

We must acknowledge the things we cannot control and focus our efforts on managing the things we can. Facing reality demands acknowledging our mistakes and failures, learning from them, and moving forward.

Self-assurance is the ability to own up to your mistakes and have the strength to change your mind.

It’s the strength to focus on what’s right instead of who’s right. Self-assurance is the strength to face reality. Self-assurance is what it takes to be on the right side of right.

How to Set High Standards for Yourself

The first step to building any of your strengths is raising the standards to which you hold yourself.

Start this by looking around at the people and practices that happen in your day-to-day environment. Our surroundings influence us, both our physical environment and the people around us.

We unconsciously become what we’re close to.

You gradually start to think, feel, act, and hold yourself to the standards of those around you. The changes are too gradual to notice until they’re too large to address. You eventually come to adopt the standards of those around you if you want to become like them.

If all you see are average people, you will develop average standards.

However, available standards won’t help you achieve your goals. Because standards become habits, and habits become results.

High Standards are Consistent Across Top Performers

Few people are aware that those with higher-than-average standards nearly always produce exceptional results.

The most successful people hold themselves and others to the highest standards. Champions don’t create the standards of excellence. The standards of excellence create champions.

Top performers are held to the same high standards.

Any team or athlete that performs at a level above and beyond what can be attributed to skill or luck demonstrates a dedication to high standards.

Why We Don’t Have High Standards

When we accept poor quality work from ourselves, it’s usually because we don’t care about it.

We convince ourselves that it’s adequate or the best we can do in the time we have available. But the truth is, at least in this activity, we’re not committed to excellence.

The same thing happens when we accept poor work from others: we’re not totally committed.

Nobody on your team can fall short when you’re dedicated to excellence. You set the high standards and demand that everyone who works with you put in the same amount of effort and rise to your level or higher. Anything Less is not acceptable.

Excellence Demands Excellence

Masters of their craft don’t just want to cross something off a list and move on.

They endure because they are committed to their work. Because master-level work demands almost fanatical standards, masters set the standard for us.

Unless we elevate ourselves and what is possible, we will never be exceptional at anything.

That sounds like a lot of work to most of us. We tend to be docile and comfortable. We prefer to coast. It’s okay.  Just keep in mind that you can anticipate the same outcomes as everyone else if you follow their lead.

You must raise the bar if you want different results.

The best education comes from working directly with a master; it’s the most reliable way to raise the bar. You must be as excellent as they are. However, most of us are not fortunate enough to have that chance.

Not everything is lost, though. You can still surround yourself with people who have higher standards by reading about masters and their work, even if you don’t have the opportunity to work with them directly.

Maintain High Standards by Choosing and Practising with the Right Role Models

There are two parts to building strength when maintaining high standards:

  1. Pick the right role models — those that help you improve. This can be coworkers, individuals you look up to, or even historical figures and iconic anime characters. It makes no difference. What counts is that they improve you in a particular area, such as value, skill, or trait.
  2. Get comfortable copying them in specific ways. Make time to consider what they would do if they were in your shoes, then take appropriate action.

The people who wind up around you will be there by accident rather than on purpose if you don’t choose them. Your family, friends, parents, and coworkers are all members of that group.

Your high school friends were likely average, even though they may be excellent examples of morality and intelligence. Although your parents may be among the world’s most brilliant businesspeople, likely, they’re not.

Controlling your environment simply involves purposefully including the right role models in the mix; it doesn’t mean you should cut these people out of your life.

Choosing Your Role Models

Instead of just hoping you wind up working with one of your role models, you can choose the people whose behavior you emulate.

You can surpass the standards you’ve inherited from your parents, friends, and acquaintances when you choose the right role models — people whose standards are higher than yours. You can see what your standards ought to be from your role models.

No technique has been more responsible for my success in life than studying and adopting the good models of others. – Peter Kaufman

The individuals we select as our role models embody the values, the determination, and the general thought, emotion, and behavior patterns that we wish to adopt. We can navigate the world by following their example. This turns into our North Star.

Choosing the right role models imparts knowledge and insights that would otherwise take a lifetime to acquire.

Find the best examples of people who possess the qualities you wish to develop; these are the people whose default behaviour is the behaviour you want to adopt. They are the ones who motivate you to improve yourself and set high standards for yourself.

Your role models do not need to be alive. They can be either dead or fictional, as well. We can learn from both Richard Feynman and Naval Ravikant, along with Goku and Batman.

It’s up to you.

Employ your Board of Directors

Put all your role models on your “personal board of directors.”

A combination of high achievement and high character can be found among the role models on your personal board. All you need is for them to possess a talent, mindset, or personality that you wish to develop in yourself. They are not required to be flawless.

Everybody has imperfections, and your personal board will be no exception.

However, everyone is superior to us in some way. It is our responsibility to identify that something, learn from it, and disregard the rest.

Your personal board of directors should also be dynamic.

People come and go. Sometimes you want to replace someone because you’ve learned as much as you can from them. One person can also lead to the next.

You’re always modifying your list of the board of directors.

There are no Limits when choosing your Role Models that raise your High Standards

You can literally reach the smartest and wealthiest people in history, living or dead, with the phone in your pocket.

You can frequently hear them speak in their own words even if you don’t have direct contact with them! Take a moment to consider that. You have the chance to hear your role models explain things in their own words for the first time in history, without anyone interfering.

You can choose among the greats of history: Richard Feynman, George Washington, Steve Jobs, Jesus Christ, Charlie Munger, Marie Curie, and Marcus Aurelius.

All of them are ready to accept your invitation to be on your personal board. All you need to do is collect the best of them together and unite them in your mind.

If you have a personal board of directors, you’re never alone.

They are constantly present. You can picture them observing your choices and power struggles. Your personal board of directors will assist in establishing the high standards you aim to meet and provide you with a benchmark by which to evaluate yourself.

If you don’t succeed — if you don’t write a best-selling book, make a billion dollars, or work out every day — you’re not a failure. Your role models are not your competitors.

You are only competing with the version of yourself from yesterday. Being a little better today is already a win.

Build a Database of Good Behaviour

Choosing the right role models helps create a database of “good behaviour.”

You start to compile a storehouse of scenarios and reactions as you read what others have written, converse with them, and gain knowledge from both their and your own experiences. One of the most crucial things you will ever do is to build this database since it gives your life more room for rationality.

Rather than responding and merely imitating those around you, you consider, “This is what the role models do.”

You have a list of the reactions of the most successful people to similar circumstances when you encounter a new one. From good to great. From reaction to reason. This is how your baseline response progresses.

Despite your instincts, your board can guide you in the correct direction. We will ultimately aspire to be the best versions of ourselves if our board is full of high-character individuals.

You have the courage and wisdom to swim in the best direction thanks to your board of directors.

Follow and Act in the Footsteps of Your Selected Role Models

It’s not enough just to select role models and put together a personal board of directors.

Additionally, you must repeatedly follow their example, not just once or twice. You will only become the type of person you wish to be when you internalize the values they represent. Imitating your role models means making time in the present to use reason and assess your feelings, ideas, and potential actions.

By doing this, previous behavioural patterns are retrained to more closely resemble those of your role models.

Asking yourself what your role models would do if they were in your shoes is one way to make room in your mind for reason. It’s the logical next move. You make choices and act on them after you picture them observing.

You are more likely to do everything you know your role models would want you to do and stay away from anything you know would get in the way if they were watching you.

It’s critical to frequently perform this deliberate exercise. You must continue until you develop a new way of feeling, thinking, and acting.

Continue practicing until you find that the pattern is a natural part of who you are, not just who you wish to be.

Setting High Standards: A Recap

Developing high standards isn’t about perfection; it’s about building the strength to override the autopilots that keep you stuck in mediocrity.

The four autopilots — emotional, ego, social, and comfort — will always try to pull you away from clear thinking. But you can harness equally powerful forces to counter them. The key lies in developing four fundamental strengths:

Self-Ownership means taking full responsibility for your responses, regardless of circumstances. It doesn’t matter if something wasn’t your fault — you still control what happens next. Every action either makes your future easier or harder.

Self-awareness is knowing what you know and what you don’t know. The secret to winning is playing games where you have an edge, not where others are stronger. Your limitations matter more than your knowledge.

Self-discipline gives you the power to step back from overwhelming emotions and choose your response. Disciplined consistency beats emotional intensity every time. Show up regardless of how you feel.

Self-assurance comes from facing reality honestly, admitting mistakes, and having the courage to change your mind. Confidence without humility is just ego in disguise.

High standards become habits, and habits become results. If you surround yourself with average people, you’ll develop average standards. But you can choose better role models — living or dead, real or fictional — and build your personal board of directors.

Study the best examples of what you want to become. Ask yourself what they would do in your situation. Then act accordingly. Do this repeatedly until their patterns become your patterns, their standards become your standards.

You’re not competing with your role models — you’re competing with yesterday’s version of yourself. Being a little better today is already a win.

The choice is yours: accept the standards of those accidentally around you, or deliberately choose the standards of those who achieved what you want to achieve. Your future depends on which path you take.

Whenever you’re ready, there are 3 ways I can help you:

  1. Become Your Highest Self: Every Sunday, I share actionable tips from successful people on how to master money, mindset and meaning. (Please confirm your subscription on the first mail received so the newsletter does not go to junk.)
  2. Fast Track Book: Stay relevant, master new skills, and be ready for whatever life throws at you.  This is the complete roadmap to speed up your learning process and expand the opportunities available to you. Available on Amazon.
  3. Personal Wealth Maximizer: Take control of your finances and build financial freedom. The Personal Wealth Maximizer give you the exact knowledge and tools to break free from money struggles and build financial confidence.