Tag: Decision Making
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NET – No Earlier Than
NET, or “No Earlier Than,” is a time constraint used to define the earliest start date for tasks in various domains like project management and aerospace. It ensures orderly progress and efficient use of resources, with deviations potentially leading to delays and increased costs.
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Being Too Early is Indistinguishable from Being Wrong
An idea introduced too soon confronts economic, psychological, and societal hurdles that often render it indistinguishable from an incorrect or unviable concept, irrespective of its inherent merits.
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Cognitive Load
Cognitive load denotes the mental strain within working memory. It’s segmented into three kinds: intrinsic, based on subject complexity; extraneous, from delivery; and germane, fostering deep learning. Individual differences, such as age and expertise, and factors like task difficulty affect its impact.
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WYSIATI – What You See Is All There Is
The principle of WYSIATI highlights humanity’s propensity to draw conclusions from visible data while neglecting what might be omitted. Originally identified by Daniel Kahneman, this cognitive bias has significant ramifications across various fields, from politics to finance.
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Schelling Point
In game theory, a Schelling point describes an intuitive focal solution people gravitate towards without direct communication. Named after its progenitor, economist Thomas Schelling, its reach extends to realms like negotiations, economics, and international affairs, driven by common societal frameworks and references.
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Monte Carlo Simulation
Utilizing statistical sampling, Monte Carlo Simulation offers insights into risk and uncertainty within predictive models. By generating a spectrum of outcomes from random inputs, it finds applications in fields like finance and engineering. Its precision is contingent on the accuracy of the underlying model and inputs.
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Festina Lente
Stemming from the time of Roman Emperor Augustus, the maxim “Festina Lente” encourages a harmony between urgency and careful deliberation. This philosophy, meaning “Make haste slowly,” has left its mark on diverse fields from the arts to strategic planning.
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Pareto Principle
The Pareto Principle articulates that a select few causes often yield a majority of results. This rule of thumb, rooted in wealth distribution observations, provides a framework for efficiency across various fields. Despite its broad applicability, it remains a guiding heuristic, not an absolute law.
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Cognitive Bias
Cognitive biases, prevalent yet often unnoticed, shape decision-making processes. These systematic thinking errors—confirmation bias, hindsight bias, and more—affect individual choices, societal views, and interpersonal relationships. Strategies for minimizing their influence are part of a complex cognitive landscape.