We recently hosted a conversation between Chris Cochella, Executive Business Coach at Sequoia Group, and Adam Berk, Lean Startup Co. Faculty Member, about the value and application of mental models for extremely uncertain Lean Startup situations.
In Chris and Adam’s conversation, they discuss:
– What is a mental model and how can they help you?
– What is first conclusion bias and how can it help and/or hurt you?
– Three critical mental models that can help the Lean Startup entrepreneur subvert the first conclusion bias.
And much, much more…
Lean Startup methods are intended to reduce uncertainty in a highly uncertain environment. Warren Buffett likes to say, “I don’t look to jump over 7-foot bars, I look around for 1-foot bars that I can step over.” As entrepreneurs, we are looking to lower the height of the uncertainty hurdle while making decisions and moving forward. Another way to look at this approach is to create a situation where: heads, I win; tails, I don’t lose much. The Lean Startup approach is all about using all available tools to reduce the hurdle height and increase the likelihood of winning. It’s about stacking the odds in your favor.
Lean Startup is a toolbox full of mental models to stop and interrupt the waste caused by simplistic, fast, and easy “first order thinking” like cognitive biases. Applying Lean Startup mental models helps to provide deliberate, valuable “second order thinking” to the entrepreneur and intrapreneur that will help reduce uncertainty. While many people are familiar with mental models, we will highlight the value and application of mental models for extremely uncertain Lean Startup situations.