It was Charlie Munger of Berkshire Hathaway, the unrelenting American investor, philanthropist, and intellectual and investment partner of Warren Buffett who is well known for using mental models. Why are they important? He believed they were key to making better investment decisions. Charlie Munger “What you need is a latticework of mental models in your…

Vilfredo Pareto (1848–1923) was an Italian economist, sociologist, and philosopher. He is best known for developing the ‘Pareto Principle’. It is also called the ‘80/20 rule’. He observed that roughly 80% of effects come from 20% of causes. He for example found that at the time in Italy approximately 20% of the population owned 80%…

Getting along with people you don’t like at work can be challenging. Still, it is often necessary for maintaining a positive and productive work environment.  People behave the way they do for two main reasons. They either don’t know any different or their behavior helps them avoid situations they don’t want to be in. The…

Understanding Your Business Successful companies continually ask, “What is our business?” Complacency can easily set in with success, leading companies to believe that their winning streak will continue indefinitely. However, just as lottery winners don’t play the same numbers again, businesses shouldn’t assume that the same strategy will keep yielding victories. Challenging a successful formula…

The term “Frenemy” is a blend of “friend” and “enemy,” ingeniously capturing a new concept. It’s increasingly important to manage frenemies in the workplace. A frenemy can be: The famous military strategist Sun Tzu aptly said, “Keep your friends close, keep your enemies closer.” While many acknowledge the wisdom of this advice, few actually implement…