Why You Believe The Things You Do: The Influence of Belief and Memory

Why You Believe The Things You Do: The Influence of Belief and Memory

Belief is a powerful force that shapes our perception of reality. What we believe to be true is often influenced by how much we want it to be true. It's not necessarily about what is objectively true, but rather what helps us deal with uncertainty. Visa Founder Dee Hock once said, “We are built with an almost infinite capacity to believe things because the beliefs are advantageous for us to hold, rather than because they are even remotely related to the truth.”

One reason we believe the things we do is that a belief's allure can overshadow its truth. The legal world has even coined a term for this phenomenon called Gibson's Law, which states that, "For every PhD there is an equal and opposite PhD." This means that no matter how well-established a belief may be, there will always be an opposing view with just as much credibility. Our beliefs can be swayed by what we find appealing or comforting, rather than what is supported by evidence.

Another factor that influences our beliefs is our memory. Psychologists Gordon Allport and Leo Postman discovered leveling and sharpening effects in memory. This means that we tend to emphasize certain memories (sharpening) and discard others (leveling) when we recall past experiences. Our perception of what is true is heavily influenced by what we've personally experienced, and we often remember the parts of our experiences that make good stories, confirm stereotypes, or connect dots between other experiences.

The scientific lifestyle encourages us to change our minds when faced with new information that challenges our beliefs. Intellectual flexibility is key to growth and progress. However, changing our beliefs can be difficult for several reasons. Firstly, it can feel like all the effort we put into establishing our previous beliefs was wasted. Secondly, it can be hard to take the new belief seriously, as changing beliefs offers proof that the new belief may be short-lived, especially in the eyes of others. Beliefs are not just about what we know; they also serve as social signals that convey information about our intelligence, confidence, and ability to discern reliable truths.

It's important to recognize that our beliefs are not always driven by a pursuit of truth. Often, we are more interested in eliminating uncertainty. The desire to have a sense of certainty can lead us to believe things that have little relation to reality. Acknowledging this inherent bias can help us approach our beliefs with a more critical mindset.

In the business world, beliefs also play a significant role in success or failure. Brian Balfour, an expert in business growth, highlights the importance of the four Fits in companies' ability to move up or down the market. The four Fits refer to the alignment of the market, product, channel, and business model. Balfour emphasizes that to successfully enter a new market tier, a company must ensure all four Fits are in place. This means potentially changing all four elements and building new expertise.

Many companies fail at moving up or down the market because they neglect the importance of the four Fits. They may focus solely on product-market fit, ignoring the other fits. However, to effectively target a specific market tier, all four Fits must be addressed simultaneously. Startups are often advised to focus on product-market fit in the early stages, but this should be done in the context of considering the other fits as well.

The business landscape is constantly evolving and changing. Elements such as the market, product, channel, and business model are not static. When one element evolves or breaks, it is crucial to revisit all four Fits and ensure they still align. This requires continuous evaluation and adaptation. Disproving a hypothesis or making a change in one area may necessitate reevaluating the entire system to maintain alignment.

In conclusion, our beliefs are influenced by a combination of factors, including our desire for certainty and the influence of memory. Beliefs can be subjective and often driven by what we find appealing or comforting. In the business world, the success or failure of companies in moving up or down the market can be attributed to the alignment of the four Fits. To navigate these challenges, here are three actionable pieces of advice:

1. Embrace intellectual flexibility: Be open to changing your beliefs when faced with new information. Avoid intellectual inertia and strive for growth and progress.

2. Seek truth, not certainty: Recognize that beliefs are not always driven by a pursuit of truth. Be mindful of the desire for certainty and approach your beliefs with a critical mindset.

3. Address all four Fits: In business, ensure that your market, product, channel, and business model align. Neglecting any of these elements can hinder your ability to successfully move up or down the market.

By understanding the factors that influence our beliefs and the importance of alignment in business, we can navigate the complexities of our own perceptions and the ever-changing landscape of the business world.