The Next Next Common Sense
3. Adaptive responses : The right model can be applied as con- texts change 4. Improved communication : Multiple models provide different ways to express ideas • Better risk assessment : Various models highlight different po- tential failure modes The challenge for leaders is not just developing multiple mental mod- els but knowing when to apply each one. This requires both self-awareness about your preferred models and humility about their limitations. Actions Depend on Interpretations Mental models aren’t academic abstractions—they directly drive business actions through the interpretations they generate. Consider how different interpretations of the same business reality led to dramatically different actions: In 1995, Netscape launched its web browser to great acclaim. At Microsoft, Bill Gates initially interpreted this as a minor development in a niche academic market—the internet was just a “toy” compared to the serious business of operating systems. This interpretation, shaped by Microsoft’s dominant mental model, led to minimal action. Meanwhile, the founders of Netscape interpreted the same technol- ogy as revolutionary, capable of fundamentally changing how people ac- cessed information. This interpretation led them to aggressive market expansion. When Gates finally reinterpreted the situation—famously issuing his “Internet Tidal Wave” memo—Microsoft’s actions changed dramatically. The company pivoted resources toward browser development, eventu- ally launching Internet Explorer and fundamentally altering its business strategy. The technology hadn’t changed. What changed was Gates’ mental model and the resulting interpretation of what the technology meant.
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