A mental model is a deeply ingrained assumption or generalization that affects how we interpret the world around us. It can also influence our actions and behaviors. Unfortunately, most of us are not aware of the effects of our mental models on our behavior.
The mental settings are deeply entrenched in our courses of action. Many insights into new management models can be used in different organizations fail to get implemented because they conflict with the powerful mental models.
During the 1970s, Royal Dutch Shell became one of the first major organizations to acknowledge the pervasiveness of mental models. Shell was able to significantly improve its performance during the unprecedented changes in the oil business. These changes included the emergence of the Organization of Petroleum Exporting Countries (OPEC), the collapse of the Soviet Union, and the volatility of oil prices. Learning how to use mental models to prepare for change was a key component of Shell's success.
During the 1980s, Arie de Geus, Shell's Group Planning Coordinator, said that continuous growth and adaptation in a company depend on the ability of its management teams to change their mental models. This process involves identifying and implementing new strategies and methods to improve the company's performance.This process of planning is consiered as an institutional.
It also involves developing effective conversations that encourage people to think critically and open their minds to the influence of others.
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