Mental models describe the world around us and sometimes they are accurate and sometimes they are inaccurate. Much of that depends on intelligence as well as emotions. Intelligence allows you to differentiate the factors that go into decision making while emotion allows you to create trajectory/motivation. Both lead to a mental model. This is why IQ and EQ are related for long term success (Depending if the environment allows that or not).
Let me give you two examples of which one is business and the other more everyday stuff.
1. Business Example: A business wants to grow but needs resources. Other business owners are spending alot of their money to look successful. They brag, buy expensive things, compare, etc. Their decisions and choices on what type of business to start are based in their capacity to understand the market as well as their emotions on dealing with their success and failures within that market. Long-term it is those who can understand how their emotions impact their choices and who have the intelligence to make decisions based in evidence and strategy for the long term that are most likely to succeed.
2. Everyday Example: You start dating someone and they expect that you don't hang out with certain friends of the opposite sex despite having been friends with them for years. The person has pushed their insecurities onto the other person and is willing to stretch some of the truth to manipulate and justify those feelings. Instead of getting into a boundary battle you just sort of bow out politely knowing that things are deeper than you understand. The other person feels rejected and starts getting people involved and you respond with silence on the topic (people are going to think what they want...that is life so get used to it.) While you can't control others emotions you can do what is best.
It might not seem like it but the choices we make are part of who we are and they come to define us. Our IQ allows us to understand the different pieces of the environment. Over the years you have built a way of looking at these things and the weaknesses other people and yourself hold. The short term choices become less of a concern when compared to the long term outcomes.
The models we create of our environment allow us to predict the environment. When we are more accurate we will make better decisions. Hard work equals reward/no reward, honest equals integrity/no integrity, spending resources wisely leads to success/non success, etc.. Thus, using strategy based on updatable models and checking in with how one feels about those choices helps us make short term decisions that lead to stronger long term results.
Whether you are working with business or personal matters we use models to understand our environment and our IQ and EQ mitigate some of our choices.
2 Mental Models For Intelligent Decision Making—By A Psychologist
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