Scholarly economic theory applies to more than just business. The same causal mechanisms that drive big corporations to success can be just as effective in driving our personal lives, says Professor Clayton M. Christensen. Key concepts include:
- In evaluating major life decisions, it’s helpful to employ a tool called discovery-driven planning, which essentially boils down to a single question: What assumptions must prove true for this plan to work?
- Incentives are not the same things as motivators.
- Marginal thinking can be dangerous. It’s safer to decide early on that you’ll stay true to your commitments 100 percent the time, rather than assess the risk of every “just this once” possibility that comes along.