Thinking Fast and Slow by Daniel Kahneman
1) The general theme of this book is that everyone's behavior is based on two separate systems in your mind, one that is instinctual, automatic, and innate while the other is conscious and active. The first system involves your survival instincts, things you learn over the course of your life that become almost automatic. An example of this would be your automatic instinct to jump back out of the way when a car horn honks at you. This system is very useful and involves things you don't have to think about that assist in your survival. The second system is your conscious, aware state that allows you to actively make your own decisions. This system does not involve your survival and comes into play more in today's society with earning money, etc. Although these systems can compliment each other, they often clash.
2) This book is definitely related to entrepreneurship, and I think its ideas could definitely help any entrepreneur. As entrepreneurs, it's important that we are able to effectively manage our thinking and make sure we are approaching problems with the right mindset. Sometimes, we need to go with our gut and act instinctively, but other times we need to slow it down and think about things logically. When we choose to do what could ultimately determine successes and failures. So, learning when to use what system is something that's very important.
3) If I had to design an exercise based on this book, I would give a series of scenarios to the class. They would have to first quickly go through and think about from which system they would normally approach the scenario. Then, I would have them re-evaluate their choices to see if they think they made any mistakes. I think this would refine their decision making skills.
4) One of the most interesting things I learned was that Kahneman believes system 2, the conscious, active system, has only come into play for humans in the past few thousand years. He says this is because our priorities have shifted from survival (Food, water, shelter) to earning money, supporting a family, and fitting in to society. This is an interesting take on how society has changed, and it's definitely something to think about.
Hey Brandon, Think Fast and Slow is a book that I have had on my 'to read' list forever! I need to get to it, but your succinct summary of it was awesome and now I'm even more interested in reading the book! I read an autobiography about Ray Kroc (Mcdonald's) and I can see that he used both forms of thinking through out his career.
ReplyDeleteHi Brandon,
ReplyDeleteI'm really intrigued by this book choice and I think you have convinced me to read it sometime with this post. I agree, instincts are so important and valuable to an entrepreneur because they will assist our conscious decision making tenfold if our instincts are trained to be aligned with our goals. It can only make our progress move faster and more efficient. Think on your feet is something people always tell me, because the faster you can make the right choice, the better and easier life will be for you.