Practical Intelligence: How to Think Critically, Deconstruct Situations, Analyze Deeply, and Never Be Fooled
Authors: Patrick King, Patrick King
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Overview
In this book, I aim to equip readers with a set of mental tools and strategies to enhance their practical intelligence. I argue that while education often focuses on acquiring knowledge, it often neglects the equally important skill of applying that knowledge effectively in real-world situations. My approach is rooted in critical thinking, skepticism, cognitive psychology, and multidisciplinary problem-solving. Throughout the book, I guide readers through a series of mental models, thinking techniques, and practical exercises designed to help them: (1) identify and overcome cognitive biases, (2) develop a more nuanced and accurate understanding of the world, (3) generate creative solutions to problems, and (4) make better decisions in all areas of their lives. This book is for anyone who wants to think more clearly, critically, and effectively. It is especially relevant for those in fields where navigating complexity, uncertainty, and rapid change is essential, such as business, technology, and policymaking. I believe that by developing practical intelligence, individuals can become more adaptable, resourceful, and successful in a rapidly evolving world.
Book Outline
1. Chapter 1. Look Beneath the Surface
This chapter challenges readers to look beyond superficial appearances and embrace a mindset of curiosity and skepticism. I emphasize that practical intelligence, or common sense, is a vital skill that is often overlooked in education. It is about understanding the world for what it is, recognizing complexity and nuance, and making the best decisions based on available information.
Key concept: Practical intelligence is about seeking truth, not prioritizing removing uncertainty over establishing certainty.
2. Chapter 2. Watch Yourself
This chapter delves into the inherent limitations and biases of the human brain. It explains the concept of two systems of thinking: System 1, which is fast, instinctive, and often error-prone, and System 2, which is slower, more deliberate, and analytical. Cognitive biases, like the availability heuristic, gambler’s fallacy, post-purchase rationalization, and confirmation bias, are explored as common pitfalls in decision-making.
Key concept: The brain’s search for shortcuts has led to two systems of thought—one focused on speed and conservation of energy, and the other on accuracy and analysis.
3. Chapter 3. Think in Models
This chapter introduces Charlie Munger’s concept of mental models, advocating for a multidisciplinary approach to thinking. Mental models, like the Pareto Principle (80/20 rule) or the concept of secondary consequences, help us understand and navigate the complexities of the world by providing frameworks for analysis and decision-making.
Key concept: “You’ve got to have models in your head. And you’ve got to array your experience—both vicarious and direct—on this latticework of models.
4. Chapter 4: Thought Divergence
This chapter focuses on divergent thinking and creative problem-solving. The SCAMPER method, a mnemonic acronym representing seven thinking techniques, guides readers in generating novel ideas and solutions by challenging assumptions and exploring unconventional approaches. Other methods discussed include the Medici Effect (combining ideas from different disciplines), thinking more “plainly” (using broader, more universal terms to describe problems) and using an Idea Box to foster creative combinations.
Key concept: The SCAMPER method stands for seven techniques that help direct thinking toward innovative ideas and solutions: (S) substitute, (C) combine, (A) adapt, (M) minimize/magnify, (P) put to another use, (E) eliminate, and (R) reverse.
5. Chapter 5. The (Un)Limited Brain
This chapter emphasizes the importance of optimizing physical and mental well-being for practical intelligence. It stresses the role of the circadian rhythm in energy management, the impact of stress (chronic and acute) on cognitive function, the restorative power of sleep for memory and learning, and the brain-boosting benefits of exercise.
Key concept: Sleep as much as possible, exercise often, and don’t sweat the small things.
Essential Questions
1. What is practical intelligence, and why is it important in today’s world?
Practical intelligence involves recognizing that the world is more complex than it appears and that snap judgments often lead to errors. It’s about seeking truth, not just the comfort of certainty. This means being curious, asking questions, and looking beneath the surface of things to uncover hidden details and nuances. It’s about challenging assumptions, being open to different perspectives, and withholding judgment until the evidence is clear. In essence, practical intelligence is about using your brain for good - to understand the world more accurately and make better decisions based on that understanding.
2. How do our brains’ natural tendencies hinder our practical intelligence, and how can we overcome them?
Our brains naturally favor speed and efficiency over accuracy and analysis, often leading to flawed thinking and poor decisions. We are susceptible to cognitive biases, mental shortcuts that distort our perception and lead us to jump to conclusions. To counter this, we must actively engage our System 2 thinking – slow, deliberate, and analytical – to challenge our assumptions, evaluate evidence, and make more informed decisions. We can retrain our brains to favor truth over speed through intentional repetition and practice, transforming critical thinking from a conscious effort into a more automatic habit.
3. What are mental models, and how can they enhance our practical intelligence?
Mental models are like cognitive frameworks or blueprints that help us make sense of the world. They are simplified representations of complex concepts or situations that guide our thinking and decision-making. By adopting a latticework of mental models from various disciplines, we can better analyze problems from multiple perspectives, identify potential solutions, and make more informed choices. Examples of mental models include the Pareto Principle, the concept of secondary consequences, and the idea of distinguishing between feeling and thinking.
4. How can we cultivate divergent thinking and creative problem-solving to enhance our practical intelligence?
Divergent thinking involves exploring a wide range of possibilities and generating new ideas, often by challenging conventional assumptions and connecting seemingly unrelated concepts. Convergent thinking, on the other hand, focuses on evaluating and refining those ideas to arrive at the best solution. By combining these two approaches, we can foster creativity and innovation while ensuring our solutions are practical and effective. Techniques like the SCAMPER method, the Medici Effect, thinking more plainly, and the idea box can help us unlock our divergent thinking potential and generate innovative solutions.
5. How does our physical well-being impact our practical intelligence, and what steps can we take to optimize our cognitive function?
Our physical and mental well-being are inextricably linked. Factors such as stress, sleep, exercise, and nutrition significantly impact our cognitive function and overall practical intelligence. Chronic stress can impair memory, reduce brain volume, and hinder decision-making. Sleep deprivation can lead to cognitive impairments similar to those experienced when intoxicated. Exercise, on the other hand, can improve memory, increase brain volume, and enhance cognitive function. By prioritizing a healthy lifestyle, we can optimize our brain’s performance and enhance our practical intelligence.
1. What is practical intelligence, and why is it important in today’s world?
Practical intelligence involves recognizing that the world is more complex than it appears and that snap judgments often lead to errors. It’s about seeking truth, not just the comfort of certainty. This means being curious, asking questions, and looking beneath the surface of things to uncover hidden details and nuances. It’s about challenging assumptions, being open to different perspectives, and withholding judgment until the evidence is clear. In essence, practical intelligence is about using your brain for good - to understand the world more accurately and make better decisions based on that understanding.
2. How do our brains’ natural tendencies hinder our practical intelligence, and how can we overcome them?
Our brains naturally favor speed and efficiency over accuracy and analysis, often leading to flawed thinking and poor decisions. We are susceptible to cognitive biases, mental shortcuts that distort our perception and lead us to jump to conclusions. To counter this, we must actively engage our System 2 thinking – slow, deliberate, and analytical – to challenge our assumptions, evaluate evidence, and make more informed decisions. We can retrain our brains to favor truth over speed through intentional repetition and practice, transforming critical thinking from a conscious effort into a more automatic habit.
3. What are mental models, and how can they enhance our practical intelligence?
Mental models are like cognitive frameworks or blueprints that help us make sense of the world. They are simplified representations of complex concepts or situations that guide our thinking and decision-making. By adopting a latticework of mental models from various disciplines, we can better analyze problems from multiple perspectives, identify potential solutions, and make more informed choices. Examples of mental models include the Pareto Principle, the concept of secondary consequences, and the idea of distinguishing between feeling and thinking.
4. How can we cultivate divergent thinking and creative problem-solving to enhance our practical intelligence?
Divergent thinking involves exploring a wide range of possibilities and generating new ideas, often by challenging conventional assumptions and connecting seemingly unrelated concepts. Convergent thinking, on the other hand, focuses on evaluating and refining those ideas to arrive at the best solution. By combining these two approaches, we can foster creativity and innovation while ensuring our solutions are practical and effective. Techniques like the SCAMPER method, the Medici Effect, thinking more plainly, and the idea box can help us unlock our divergent thinking potential and generate innovative solutions.
5. How does our physical well-being impact our practical intelligence, and what steps can we take to optimize our cognitive function?
Our physical and mental well-being are inextricably linked. Factors such as stress, sleep, exercise, and nutrition significantly impact our cognitive function and overall practical intelligence. Chronic stress can impair memory, reduce brain volume, and hinder decision-making. Sleep deprivation can lead to cognitive impairments similar to those experienced when intoxicated. Exercise, on the other hand, can improve memory, increase brain volume, and enhance cognitive function. By prioritizing a healthy lifestyle, we can optimize our brain’s performance and enhance our practical intelligence.
Key Takeaways
1. Evaluate Decisions Based on Process, Not Just Outcomes
It’s crucial to focus on the quality of the process, not just the final outcome. A favorable outcome doesn’t necessarily indicate a good decision, just as an unfavorable outcome doesn’t always mean a poor decision. By evaluating decisions based on the information available at the time, considering alternatives, and analyzing potential consequences, we can make more informed choices and improve our decision-making process over time, even if the results don’t always go our way.
Practical Application:
In product development, an AI engineer might fall into the trap of outcome bias when evaluating the success of a new feature based solely on user engagement metrics without considering the design process or user feedback. To overcome this, they could conduct A/B testing with different design variations and solicit user feedback throughout the development process, focusing on the quality of the design process rather than solely on the outcome of user engagement.
2. Embrace ‘Thinking More Plainly’ to Boost Creativity
When facing a complex challenge, it can be helpful to step back and reframe the problem in simpler, more universal terms. This can help break free from functional fixedness, the tendency to get stuck on the traditional use of things or concepts, and open up new possibilities for solutions. By thinking more plainly, we can stimulate creativity and generate a wider range of potential solutions.
Practical Application:
If an AI team is tasked with improving the accuracy of a machine learning model, instead of focusing on the complex algorithm itself, they might use ‘thinking more plainly’ to reframe the problem as ‘how to help the machine learn better.’ This shift in perspective could open up new avenues for exploration, such as exploring different data augmentation techniques, fine-tuning hyperparameters, or even considering alternative model architectures.
3. Distinguish Between Proximate and Root Causes
When analyzing a problem, it’s essential to go beyond the immediate, surface-level causes and dig deeper to uncover the root causes. By understanding the underlying factors that contribute to a problem, we can develop more effective and long-lasting solutions.
Practical Application:
An AI product engineer could utilize the ‘five whys’ method when debugging a complex system error. Instead of stopping at the immediate cause of the error, they could repeatedly ask ‘why’ to uncover the underlying causes. This could lead them to identify systemic issues in the code, flawed assumptions in the design, or even limitations in the underlying hardware that need to be addressed to prevent similar errors from recurring.
1. Evaluate Decisions Based on Process, Not Just Outcomes
It’s crucial to focus on the quality of the process, not just the final outcome. A favorable outcome doesn’t necessarily indicate a good decision, just as an unfavorable outcome doesn’t always mean a poor decision. By evaluating decisions based on the information available at the time, considering alternatives, and analyzing potential consequences, we can make more informed choices and improve our decision-making process over time, even if the results don’t always go our way.
Practical Application:
In product development, an AI engineer might fall into the trap of outcome bias when evaluating the success of a new feature based solely on user engagement metrics without considering the design process or user feedback. To overcome this, they could conduct A/B testing with different design variations and solicit user feedback throughout the development process, focusing on the quality of the design process rather than solely on the outcome of user engagement.
2. Embrace ‘Thinking More Plainly’ to Boost Creativity
When facing a complex challenge, it can be helpful to step back and reframe the problem in simpler, more universal terms. This can help break free from functional fixedness, the tendency to get stuck on the traditional use of things or concepts, and open up new possibilities for solutions. By thinking more plainly, we can stimulate creativity and generate a wider range of potential solutions.
Practical Application:
If an AI team is tasked with improving the accuracy of a machine learning model, instead of focusing on the complex algorithm itself, they might use ‘thinking more plainly’ to reframe the problem as ‘how to help the machine learn better.’ This shift in perspective could open up new avenues for exploration, such as exploring different data augmentation techniques, fine-tuning hyperparameters, or even considering alternative model architectures.
3. Distinguish Between Proximate and Root Causes
When analyzing a problem, it’s essential to go beyond the immediate, surface-level causes and dig deeper to uncover the root causes. By understanding the underlying factors that contribute to a problem, we can develop more effective and long-lasting solutions.
Practical Application:
An AI product engineer could utilize the ‘five whys’ method when debugging a complex system error. Instead of stopping at the immediate cause of the error, they could repeatedly ask ‘why’ to uncover the underlying causes. This could lead them to identify systemic issues in the code, flawed assumptions in the design, or even limitations in the underlying hardware that need to be addressed to prevent similar errors from recurring.
Suggested Deep Dive
Chapter: Chapter 3: Think in Models
This chapter lays the foundation for applying a multidisciplinary, model-based approach to problem-solving, a concept that is particularly relevant for AI product engineers who often work at the intersection of technology, human behavior, and business strategy. A deeper dive into this chapter would equip an AI product engineer with the mental frameworks necessary to tackle complex challenges, make informed decisions, and design effective AI-powered products.
Memorable Quotes
Chapter 1. Look Beneath the Surface. 8
Practical intelligence is about seeking truth, not prioritizing removing uncertainty over establishing certainty.
Chapter 3. Think in Models. 61
“You’ve got to have models in your head. And you’ve got to array your experience—both vicarious and direct—on this latticework of models.
Chapter 4: Thought Divergence. 95
taken from a psychological viewpoint, this combinatory play seems to be the essential feature in productive thought—before there is any connection with logical construction in words or other kinds of signs which can be communicated to others.
Chapter 4: Thought Divergence. 100
To get more creative, think more plainly.
Chapter 5. The (Un)Limited Brain. 117
Sleep as much as possible, exercise often, and don’t sweat the small things.
Chapter 1. Look Beneath the Surface. 8
Practical intelligence is about seeking truth, not prioritizing removing uncertainty over establishing certainty.
Chapter 3. Think in Models. 61
“You’ve got to have models in your head. And you’ve got to array your experience—both vicarious and direct—on this latticework of models.
Chapter 4: Thought Divergence. 95
taken from a psychological viewpoint, this combinatory play seems to be the essential feature in productive thought—before there is any connection with logical construction in words or other kinds of signs which can be communicated to others.
Chapter 4: Thought Divergence. 100
To get more creative, think more plainly.
Chapter 5. The (Un)Limited Brain. 117
Sleep as much as possible, exercise often, and don’t sweat the small things.
Comparative Analysis
This book shares common ground with other works focusing on critical thinking and cognitive biases, such as “Thinking, Fast and Slow” by Daniel Kahneman and “Predictably Irrational” by Dan Ariely. While these books delve deeper into the psychological mechanisms behind biases, “Practical Intelligence” distinguishes itself by providing a more practical and action-oriented approach. It not only illuminates the pitfalls of flawed thinking but also offers a toolkit of mental models and techniques to help readers develop their practical intelligence and apply it in real-world situations. The book’s emphasis on the interconnectedness of physical and mental well-being, particularly the impact of stress, sleep, and exercise on cognitive function, aligns with the growing body of research on the mind-body connection and its implications for optimal performance.
Reflection
This book offers valuable insights into the often-overlooked realm of practical intelligence, challenging the notion that raw intellectual horsepower is the sole determinant of success. It compels us to examine our ingrained thinking patterns and confront our cognitive biases. The book’s strength lies in its practicality, offering a range of actionable techniques and mental models that can be applied in various contexts. However, while the book emphasizes the importance of multidisciplinarity, it might benefit from delving deeper into specific disciplines and providing more concrete examples of how mental models from those fields can be applied. Also, some of the claims regarding the benefits of certain practices, such as intermittent fasting, may require further scientific validation. Nevertheless, “Practical Intelligence” serves as a valuable resource for anyone seeking to sharpen their thinking, improve their decision-making, and navigate the complexities of the modern world more effectively.
Flashcards
What is the availability heuristic?
A mental shortcut that leads to errors in judgment because it overemphasizes readily available information or memories.
What is the Gambler’s Fallacy?
The mistaken belief that past events influence the probability of future, independent events.
What is post-purchase rationalization?
The tendency to justify a decision or purchase after the fact to minimize regret.
What is confirmation bias?
The act of only seeking information that confirms our existing beliefs, while ignoring contradictory evidence.
What is a fishbone diagram?
A visual tool used to systematically identify the root causes of a problem by working backward from the effect.
What is outcome bias?
The tendency to focus on outcomes rather than the decision-making process when evaluating decisions.
What is satisficing?
Finding a solution that is good enough, rather than striving for a perfect or optimal solution, especially when time or resources are limited.
What is the availability heuristic?
A mental shortcut that leads to errors in judgment because it overemphasizes readily available information or memories.
What is the Gambler’s Fallacy?
The mistaken belief that past events influence the probability of future, independent events.
What is post-purchase rationalization?
The tendency to justify a decision or purchase after the fact to minimize regret.
What is confirmation bias?
The act of only seeking information that confirms our existing beliefs, while ignoring contradictory evidence.
What is a fishbone diagram?
A visual tool used to systematically identify the root causes of a problem by working backward from the effect.
What is outcome bias?
The tendency to focus on outcomes rather than the decision-making process when evaluating decisions.
What is satisficing?
Finding a solution that is good enough, rather than striving for a perfect or optimal solution, especially when time or resources are limited.