Linear Thinking in a Nonlinear World

Decades of research in cognitive psychology show that the human mind struggles to understand nonlinear relationships. Our brain wants to make simple straight lines. But in business there are many highly nonlinear relationships, and we need to recognize when they’re in play. This is true for generalists and specialists alike, because even experts who are aware of nonlinearity in their fields can fail to take it into account and default instead to relying on their gut. But when people do that, they often end up making poor decisions.

HT to Social Capital's Snippets, this is my send-to-friends-to-seem-intelligent link of week.


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