There are other Mental Models that you can use vis-a-vis LPM (Lean Portfolio Management).
A Mental Model is a pattern your mind uses to understand the world. In a way, we all think, understand, behave, and act in a patterned way.
It is the way your mind understands how something works. It is like a mental map or framework you use to interpret the world, solve problems, and make decisions… without needing to analyze every detail from scratch.
Mental model = how you think.
A side note: Mental Model is not, however, a sense-making map… that is what Cynefin is for. Cynefin acts on top of Mental Models. Cynefin = when and where to use which type of Mental Model to use — very contextual. For example: if you are in a Complex domain (one of the 5 domains in Cynefin), then use a Mental Model appropriate for that domain… like “Agile Thinking.”
The more (and better) mental model(s) you have the better your judgement and problem solving becomes. Here are some useful Mental Models for LPM:
- Lean (Lean Thinking) and Agile (Agile Thinking)
- Systems and Science (Systems Thinking, Feedback Loop, Leverage, Game Theory, Entropy),
- General Thinking and Problem Solving (First Principles Thinking, Second-order thinking),
- Business and Economics (Opportunity Cost, Pareto Principle, Customer-centric prioritization, 2×2 Matrix),
- Psychology (Confirmation Bias, Loss Aversion. Social Proof),
- Strategy and Decision Making (Ockham’s Razor, Marginal Utility, Circle of Competence), etc.
