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Mental Model Library



MENTAL MODEL LIBRARY


Biology
Adaptation
Organisms adapt to their environment to enhance evolutionary fitness.

Evolution via Natural Selection
Heritable traits that enhance evolutionary fitness become prevalent.

Incentives
Contingent rewards are one of the most powerful drivers of behavior.

Niches
Species can flourish by specializing to dominate a subspace within their broader
environment.

The Red Queen Effect
Survival in a competitive environment usually requires adaptation and velocity,
so doing nothing often means being left behind.

Business & Management
(Customer) Segmentation
People have different needs and wants, so there is probably not a single best
answer for everyone.

(Portfolio) Diversification
Investing across a portfolio of separate, distinct, and uncorrelated assets
reduces your exposure to the riskiness of any single asset, while also tending
to yield higher long-term returns.

Barriers to Entry
Entering a new market often entails fixed costs and other obstacles that must be
overcome.

Business Case
Delineate the thorough, objective, logical reasoning for why a project or other
investment will produce specific, measurable business outcomes.

Churn
Customers tend to leave over time.

Directly Responsible Individual
Making a single person explicitly responsible creates clear accountability.

Forcing Function
Deliberate triggers can enable us to take necessary action to produce our
desired result.

Information Asymmetry
Situations where one party has more and/or better information.

Porter’s Five Forces
Industry attractiveness is driven by known, intelligible fundamentals.

Product-Market Fit
Discover congruence between a specific set of product features, an excited and
sizeable customer base, a feasible distribution channel, and a lasting business
model.

Technology Adoption Lifecycle
The adoption of new technologies typically follows a normal distribution, with
distinct user segmentation and ‘chasms’ between segments.

Chemistry
Activation Energy
A minimum energy must be available in a system to create a reaction.

Mental Model Library
Favorite Mental Models
About







MENTAL MODEL FUNDAMENTALS

by Teddy Daiell
Answer the question “How do I think well?” by leveraging timeless,
multi-disciplinary wisdom

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