Post on 14-Apr-2018
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e Five Cognitive Distortions of People Who Get Stuff Done
012 by SAPM / Michael Dearing. All rights reserved. 1
2012 Michael C. Dearing
The Five Cognitive Distortionsof People Who Get Stuff Done
Summary 2,190 days, 2,481 companies, 4,515 founders, 62 bets
Some common patterns of automatic thought among those who geta lot of stuff done / create tons of value
Strong patterns of automatic thoughts = cognitive distortions
Cognitive distortions are filters or lenses that influence thinking,shape interpretation of reality, basis for action
The Big Five o Personal exceptionalism o Dichotomous thinking o Correct overgeneralization o Blank canvas thinking o Schumpeterianism
2012 Michael C. Dearing
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e Five Cognitive Distortions of People Who Get Stuff Done
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Classical model of getting stuff done
Information --> Observation --> Processing --> Conclusion --> Action
Rational
Classical model of getting stuff done
Information --> Observation --> Processing --> Conclusion --> Action
Rational
Information --> Observation --> Processing --> Conclusion --> Action
Rational
Information --> Observation --> Processing --> Conclusion --> Action
Rational
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Cognitive behavior model of depression
Information --> Observation --> Processing --> Conclusion --> Action
self imageworld-view
automatic thoughts
future expectations
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Context of depression
Observation distortions
Selective abstraction:Only some informationfragments are acceptedfor processing
Magnification /minimization: zoomingway in on some info or zooming out on other info
Conclusion distortions
Arbitrary inference: aconclusion that is not supportedby the evidence or for whichthere is no evidence
Personalization: "it's somethingI did" or "it's about me"
Dichotomous thinking: "it'scomplete sh*t" or "it'strue genius"
Overgeneralization: making auniversal judgment fromisolated incidents
Processing dominated byautomatic thoughts
Note: These types of cognitive distortions were described as "faulty information processing," in Aaron Beck, A. John Rush, Brian F. Shaw, Gary Emery, Cognitive Therapy of Depression , 1979, p. 14.
Cognitive distortions in humans
Founders
Colleagues Shareholders
Board
Members Suppliers
Competitors Employees
Customers
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Cognitive distortions in humans
Founders
Colleagues Shareholders
BoardMembers
Suppliers
Competitors Employees
Customers
Cognitive behavior model of work
Information --> Observation --> Processing --> Conclusion --> Action
self imageworld-view
automatic thoughts
future expectations
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Five recurring, automaticpatterns of thought (aka
cognitive distortions) amongpeople who get extraordinary
stuff done in Silicon Valley
Personal Exceptionalism
"I am special."
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Personal Exceptionalism
Definition - a macro sense that you are in the top of your cohort, your work is snowflake-special, or that you aredestined to have experiences well outside the bounds of "normal;" not to be confused with arrogance or high self-esteem
Benefit -
Personal ExceptionalismDefinition - a macro sense that you are in the top of your cohort, your work is snowflake-special, or that you aredestined to have experiences well outside the bounds of "normal;" not to be confused with arrogance or high self-esteem
Benefit - resilience, stamina, charisma
Deadly risk -
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Personal Exceptionalism
Definition - a macro sense that you are in the top of your cohort, your work is snowflake-special, or that you aredestined to have experiences well outside the bounds of "normal;" not to be confused with arrogance or high self-esteem
Benefit - resilience, stamina, charisma
Deadly risk - assuming macro-exceptionalism meansmicro-exceptionalism, brittleness
Macro versus MicroMacro POV
Micro POV
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Dichotomous Thinking
"X is sh*t. Y is genius."
Dichotomous ThinkingDefinition - being extremely judgmental of people,experiences, things; highly opinionated at the extremes;sees black and white, little grey
Benefit -
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Dichotomous Thinking
Definition - being extremely judgmental of people,experiences, things; highly opinionated at the extremes;sees black and white, little grey
Benefit - achieves excellence frequently
Deadly risk -
Dichotomous ThinkingDefinition - being extremely judgmental of people,experiences, things; highly opinionated at the extremes;sees black and white, little grey
Benefit - achieves excellence frequently
Deadly risk - perfectionism
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Correct Overgeneralization
"I see two dots and draw the right line."
Correct OvergeneralizationDefinition - making universal judgments from limitedobservations and being right a lot of the time
Benefits -
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Correct Overgeneralization
Definition - making universal judgments from limitedobservations and being right a lot of the time
Benefits - saves time
Deadly risk -
Correct OvergeneralizationDefinition - making universal judgments from limitedobservations and being right a lot of the time
Benefits - saves time
Deadly risk - addiction to instinct and indifference to data
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Blank-Canvas Thinking
"Painting by numbers isn't art. And Iwant to make art."
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Blank-Canvas Thinking
Definition - sees own life as a blank canvas, not a paint-by-numbers
Benefits -
Blank-Canvas ThinkingDefinition - sees own life as a blank canvas, not a paint-by-numbers
Benefits - no sense of coloring outside the lines, createssurprises
Deadly risk -
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Blank-Canvas Thinking
Definition - sees own life as a blank canvas, not a paint-by-numbers
Benefits - no sense of coloring outside the lines, createssurprises
Deadly risk - "Ars gratia artis," failure to launch, failure toscale
Schumpeterianism
"I am a creative destruction machine."
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Schumpeter on Capitalism
Capitalism matters - powers the miracle of productivity and wealth creation
Creative destruction powers capitalism
Creative destruction = foundationalchange (or as Clay Christensen might callit, disruptive innovation)
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Creative destruction
The opening up of new markets, foreign or domestic, and theorganizational development from the craft shop and factory to suchconcerns as U.S. Steel illustrate the same process of industrialmutation if I may use that biological term that incessantly revolutionizesthe economic structure from within , incessantly destroying the old one,incessantly creating a new one. This process of Creative Destruction isthe essential fact about capitalism. It is what capitalism consists in andwhat every capitalist concern has got to live in. . . .
Joseph Schumpeter, Capitalism, Socialism and Democracy (New York:Harper, 1975) [orig. pub. 1942], pp. 82-85.
SchumpeterianismDefinition - sees creative destruction as natural,necessary, and as their vocation
Benefits -
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Schumpeterianism
Definition - sees creative destruction as natural,necessary, and as their vocation
Benefits - fearlessness, tolerance for destruction and pain
Deadly risk -
SchumpeterianismDefinition - sees creative destruction as natural,necessary, and as their vocation
Benefits - fearlessness, tolerance for destruction and pain
Deadly risk - heartless ambition, alienation
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e Five Cognitive Distortions of People Who Get Stuff Done
Automatic Thought Patterns akaCognitive Distortions Personal Exceptionalism Dichotomous Thinking Correct Overgeneralization Blank-Canvas Thinking Schumpeterianism
What is missing? What resonates? What doesn't?
What would happen if you picked investments this way?
Thanks!
mdearing@stanford.edu