The Ten-Book Rule for Smarter Thinking: Combining Expert Consensus and Sense in Business Strategy

The Ten-Book Rule for Smarter Thinking: Combining Expert Consensus and Sense in Business Strategy

Understanding knowledge is a crucial step towards smarter thinking. However, it's important to recognize that understanding an expert consensus doesn't automatically make you an expert. In fact, understanding knowledge is much easier than creating knowledge or applying it successfully across different domains. To truly excel in any field, it takes more than just reading a few books.

The Ten-Book Rule by Scott H Young suggests that if you have a reasonable question that can be formulated by a layperson and if a good answer already exists, you can find a satisfactory answer by doing the work of reading ten books on the subject. While ten books may not make you an expert, they can provide you with enough knowledge to answer reasonable questions.

So, where should you start? The first step is to read up-to-date textbooks. Textbooks are valuable resources because they represent expert consensus. They are written to provide a comprehensive understanding of a subject, making them a great starting point for building your knowledge base.

In addition to textbooks, academic monographs can also be incredibly useful. While they may not offer a general survey of a field like textbooks do, monographs are more focused and can often provide you with closer answers to specific questions you may have. By delving into the depth of a particular topic through monographs, you can gain a deeper understanding of the subject matter.

When it comes to learning about the world, there are two broad approaches: building up from the basics or learning for specific ends. Both approaches have their merits, but after mastering the fundamentals, the volume of knowledge can become overwhelming. In such cases, it's helpful to ask more pointed questions to guide your learning.

Now, let's shift our focus to the realm of business strategy and the insights of Tadashi Yanai, the Chairman of Fast Retailing. According to him, strategy is not just a combination of different elements; it's a permutation that takes into account the element of time. Time is a crucial factor in strategic thinking, as it determines the depth and breadth of a strategy. A person who can consistently create narratives by considering the element of time is considered to have a great sense of strategy.

Having a sense of strategy means being able to abstract and grasp the essence of any situation. No matter how specific the circumstances may be, someone with a sense of strategy can abstract the underlying logic and interpret it in a way that can be applied to various scenarios. It's crucial to internalize this logic and be able to access it in any situation. This ability to oscillate between the concrete and the abstract, frequently and rapidly, is what defines a strong sense of strategy.

Connecting the dots between the Ten-Book Rule and the insights on business strategy, we can see that both emphasize the importance of knowledge and understanding. While reading ten books may not make you an expert, it can equip you with enough knowledge to answer reasonable questions. Similarly, having a sense of strategy requires a deep understanding of the underlying logic and the ability to apply it across different situations.

To put these ideas into action, here are three actionable pieces of advice:

1. Read ten books on a subject of interest: Start by selecting a topic that you want to gain expertise in. Find ten books that cover different aspects of the subject and commit to reading them. This will provide you with a solid foundation of knowledge to answer reasonable questions.

2. Embrace both textbooks and academic monographs: Textbooks offer a comprehensive overview of a subject, while monographs provide a more focused exploration. By combining both, you can gain a well-rounded understanding of a topic and find answers to specific questions.

3. Develop your sense of strategy: Practice abstracting and capturing the underlying logic of various situations. Train yourself to think in terms of time and consider the implications it has on your decisions. By honing your sense of strategy, you can make more informed choices and navigate complex business environments.

In conclusion, the Ten-Book Rule and the insights on business strategy highlight the importance of knowledge and understanding in smarter thinking. While reading ten books may not make you an expert, it can provide you with enough knowledge to answer reasonable questions. Additionally, developing a sense of strategy requires a deep understanding of underlying logic and the ability to apply it across different situations. By incorporating these concepts into your learning and decision-making processes, you can enhance your thinking and make more informed choices in various domains.