Mental Models

Local or Global

Local or Global — Repeatedly ask whether you’re optimizing a cog in a machine instead of the machine itself. The higher the level you optimize at, typically the greater your ROI.

Don't optimise the cog, optimise the machine. Take a pause and rethink the systems that make up your life. Optimise your problem by going high level. Don't fall prey to the flow. This gives you the highest possible leverage in achieving your desired outcome.

For example, if your goal is to increase your income, you can strive for a 15% raise in your current job (optimise the cog), or look for a job that pays much higher (optimise the machine).

After optimising the system by applying First Principles together with Local or Global, we apply Regret Minimisation to make better decisions.

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