CHAPTER 1
BELIEFS AND MENTAL MODEL
A mental model is an internal interpretation of an external reality. This personal interpretation of external systems typically forms the foundation on which we base our thoughts, ideas, and decision-making processes. A mental model explains the thought process behind an individual's perception of how things work. The mental model is created and developed by an individual based on their experiences, perceptions, and their understanding of the world around them.
These mental models determine how we think and understand situations as well as influence the way we look at problems, make decisions and identify opportunities around us. The creation of mental models involves the integration of acquired knowledge and past experience. This integration enables inferences to be drawn from our past experiences to help us understand current circumstances.
Experience is an important component in the structure of mental models. When you have experienced a particular situation in a certain way in the past, you will tend to evaluate similar occurrences based on that past experience. For instance, if you were attacked by a dog as a child you might be prone to developing a fear of all dogs. This is because every time you encounter a dog, your brain will interpret the situation as a dangerous situation because your past experience was not pleasant. It is therefore important to recognize that past experiences, whether good or bad, influence our thoughts and behavior.
Mental models enhance our understanding of different experiences and complex systems. These models also allow us to create hypothetical simulations that we can use to predict possible outcomes of certain courses of action. For instance, when faced with a decision, we usually run through the outcomes of what each particular choice would result in. This mental stimulation not only aids in making decisions but also helps us in preparing for the possible outcomes and probable consequences of those decisions.
By enabling us to create simplified internal representations of complex external situations, mental models increase our understanding by structuring and arranging knowledge in a way that we can understand, recall and use it. Without a solid understanding of what is going on around us and how things work, it becomes difficult to adapt to our environment, cope with situations or find our place in our ecosystem and the larger world. 
In the workplace, your ability to perform effectively will largely be determined by your understanding of your own role, how this role interconnects with those of your colleagues and ultimately how your function contributes to the general objectives of your company. Having a clear understanding of your place in a system is essential for personal growth, understanding the opportunities available to you and for creating sound relationships.
The human brain uses mental models as thinking tools or filters to simplify complex concepts and information into understandable and simplified concepts. Since the brain is not capable of handling all the information and details we see in the world around us, it creates models to simplify this knowledge into a thinking process that we can understand. The more models we are able to create in our brain, the better our overall understanding of different concepts will be.
Our judgment is positively impacted by having a broad base of mental models because they put us in a position where we can perceive, interpret and gain an understanding of a situation from multiple perspectives. This objectivity yields better thought processes because it ensures that beliefs, prejudices and emotions do not cloud our judgment. Bad decisions are more often than not borne of the failure to base our choices on fact and logic and relying on emotions to direct our thoughts.
Understanding of different mental models gives us insight not only into our own actions and behavior but also into why others act and behave the way they do. Our interpretations of the world vary from individual to individual based on our own unique experiences, attitudes, beliefs, preferences and, personality. Any new knowledge we acquire is filtered through the mental models we have created and developed in our minds. Hence your set of mental models will play a major role in your thinking and decision-making process.
Mental models are incomplete and constantly changing. Our understanding of the world is typically based on our experiences and the knowledge and information we are exposed to. As our environments and experiences change so does our view and perception of the world. Our mental models are therefore constantly evolving to keep up with our experiences and learning. We increase our models as we go through life so as to progressively improve our thought processes and deepen our understanding of the world and the systems around us.
When we are children, we have a basic understanding of things, but as we grow older and learn more, this understanding is bound to increase. For instance, a child of six knows that a car will get them from point A to point B, when they are twenty, they will probably have a grasp of how this movement is accomplished. And if they pursue that line of education they may eventually understand how the different parts of the car engine work to create motion. As we learn and have more experiences, our mental models expand and evolve to accommodate the increasing knowledge of different subjects. 
Mental models are not factual representations of reality. They are unique interpretations of phenomena that are based on a person's perception. Our perceptions and understanding of the world around us differ from person to person based on our individual experiences, views and beliefs; hence our mental models are not necessarily objective or factual. We each develop our models to explain our own view of how the world works.
A mental model is therefore not an objective view of reality but it is biased based on the individual's understanding. As such, it cannot be taken as a factual or comprehensive representation of reality. While all perspectives will have factual elements, they cannot be said to contain the entire truth. For a comprehensive understanding of reality, we need to utilize multiple and varied mental models that represent different points of view and that will equip us with a multi-dimensional outlook. 
Mental models simplify complex knowledge. A mental model is a thinking tool that is used to interpret different concepts and explain the relationship between things and how they work. In economics, the law of supply and demand is used to understand market dynamics. It helps you understand the concepts that affect the balance in the market place. One of the facts of this law is that if supply in a market of a particular product exceeds the demand, you should expect a fall in prices. On the other hand, when the demand for a particular product is higher than its supply, prices will undoubtedly rise. This business model is based on experience with market trends and is used to understand the dynamics in the business world.
Each mental model represents a possible outcome. We use mental models to create simulations of different scenarios and infer possibilities and probable outcomes that we could expect in any given situation. When you filter information through a particular mental model, the mind will arrive at a possible outcome based on the information at hand and past experience.
Mental models are predictive in nature. This is why they give us better clarity in decision making. By enabling us to foresee the possible outcome of a particular choice or action, they equip us to make choices with the full knowledge of what consequences we can expect. Mental models give an indication of what to expect in the future through mental simulations using different scenarios.
Core beliefs are often formed in childhood and reinforced throughout life. They can also form during traumatic events in adulthood, such as the death of a loved one, fighting in a war, or being the victim of a violent crime. We tend to accept evidence that supports our beliefs and reject evidence that does not, so we may hold our core beliefs strongly even if there is little evidence for them. We often support dysfunctional core beliefs by focusing on one or two areas of our lives that aren’t going well, rather than looking at our lives overall. However, with Cognitive Behavioral Therapy, you can challenge and change dysfunctional core beliefs. It’s important to remember that core beliefs are ideas, not facts. How strongly you feel something is not an indicator of how true it is.
In identifying your beliefs, you will have to do some digging within yourself. Some people have a hard time understanding how their thought processes connect to negative emotions, so it may be helpful to start by identifying automatic thoughts and assumptions before uncovering core beliefs. Some people may also find it painful to explore their core beliefs, so it may be better to start by addressing automatic thoughts.