Mindset Is More Important Than Knowledge

Do you believe that people can achieve whatever they set their minds to? Do you believe that if you work hard, you will be rewarded? Do you believe that where there is a will, there is a way?

Your answers to these questions reveal a mindset. Mindset is a set of attitudes. So, what’s the big deal? The big deal is mindset is powerful. Mindset affects how we take in information, organize it, give meaning to what we observe, determine what we see and what we ignore, attribute motive to other people and how we decide what is important and what isn’t.

Mindset is so influential that it can overpower knowledge, convince us that facts aren’t, and falsehoods are true. Mindset can lead us down the path of irrational thinking and poor decision-making, without any intention or awareness. That is why mindset is so important.

A mindset fueled by over-confidence and hubris can lull leaders into thinking that the path to business growth is done most easily by acquiring other companies or merging. On paper, when presented with options, it can seem a reasonable choice. Strategically, it makes sense. Financially, the money to do a deal is available. A target is identified, information shared, negotiations completed, terms agreed to – why not proceed?

Here’s why. Until leaders understand their own mindset, dare to confront their own assumptions and have the courage to admit what is in it for them, the risks are higher than they need to be. Since deals so often fail to deliver projected results, it seems worth it to take a look at the less obvious aspects of decisions that lead to them.

These include: Beliefs, Cognition, Emotion, Motivation, and Resilience.

• Beliefs determine what we accept as true and what we discard.
• Cognition is part of how we evaluate what we see and experience.
• Emotion is the fuel for behavior and it is important to know what pushes us and what dampens.
• Motivation is the internal force that moves us – you can fan it, fuel it, or kill it but aligning it is the most valuable thing anyone can do.
• Resilience is important because there are always disappointments and setbacks which require us to see them as temporary and non-fatal if we are to continue pursuing our goals.