Tuesday 5 February 2013

Models and Assumptions

Assumptions form an integral part of mindset which shapes behavior. Our assumptions and world views are built on and defined by various models.

When we had the assumption that the world was flat, trade and exploration was defined by this model. Explorers and traders therefore never ventured far from the shoreline for fear that they would drop off the face of the earth. 

At the time, our assumption of the earth being flat defined our thoughts and our behavior. Our behavior was limited by this particular model. But once our assumption was proved false, the model was no longer relevant and the rules of the game changed. 

By adopting a new model (the earth is round) our worldview and premise shifted remarkably. New ways of seeing things and doing things opened up before our eyes and humans thrived from an evolutionary perspective by building assumptions on this new model. 

Thus, most of our assumptions are built on some form of model. And because models are always simplifications, they are never perfectly valid, there are certain limitations to all models. 

Some models are however, more useful than others. It's up to us to ascertain which ones serve us or not. If we step back and examine our current models from which stem systems and structures, can we truly say that these models are useful?

Our financial systems are models built on and driven by debt. Our economies have been running on the premise of endless growth. Yet we live on a finite planet and as non-renewable resources (oil & coal) become increasingly scarce, our model of economic growth becomes questionable. 

Crisis moments, such as the world financial crisis of 2008, bizarre weather patterns (tsunamis, super storms) or oil spillages such as in the Gulf of Mexico, allow us the opportunity to question our models and our assumptions which develop lines of logic that influences our thinking, behavior and outcomes. 

The questioning process breaks apart our assumptions and models to see if they fit well with our vision for the future. Do we currently have models in place, built upon certain sets of assumptions, that serve our well being, development and our environment? Or are these models no longer useful? Is it time to build more relevant models based on a new set of assumptions? 

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