Podcast Summary: Managing Your Practice

Episode: Building Brain Habits that Accelerate Your Team and Practice
Host: Kathryn Williams (Dimensional Fund Advisors)
Guest: Dr. Art Markman (Vice Provost of Academic Affairs, UT Austin; Author, Cognitive Scientist)
Date: June 21, 2024

Overview

This episode explores how financial professionals—and anyone leading teams or working in dynamic industries—can develop habits and mental frameworks that improve decision-making, foster growth, and enhance team and business performance. Dr. Art Markman shares the science behind "smart thinking" and habits, strategies for applying these ideas in practice, and ways to build a culture that encourages innovation and continual learning.

Key Discussion Points & Insights

1. The Science and Practice of Smart Thinking

• Smart thinking is not an innate gift but a set of habits and methods that anyone can develop.
• It involves:
  • Great habits of mind
  • Acquisition of high-quality, systematic knowledge
  • Adept use of that knowledge, including flexible problem-solving

"Effective thinkers have great habits, high-quality knowledge, and know how to use what they know when needed."
— Dr. Markman [05:57]

• Smart thinking is built over time by moving beyond surface expertise to understand broader systems and by being willing to be wrong to generate ideas (creativity through quantity).

2. Cognitive Peak and the Evolution of Expertise

• Cognitive speed peaks in early 20s but wisdom—integrative, multidimensional knowledge—takes decades to build.
• Experienced professionals succeed because they:
  • Know “a lot about a lot”
  • Are flexible in defining problems
  • Embrace vulnerability and the willingness to be wrong

"If we were at our smartest in our 20s, 20-year-olds would rule the world. And they don't."
— Dr. Markman [07:01]

3. Human vs. Artificial Intelligence: Lessons from Chess

• AI’s “brute force” approach contrasts with human experts, who rely on patterns and context.
• Experts remember and process information in meaningful “chunks” and distill key points, not endless details.
• Presentations or client meetings should focus on identifying and reiterating the three most crucial points.

"We remember about three things about anything... Presentations should intentionally shape what those three things are."
— Dr. Markman [15:30]

4. Building Smart Habits

• Most daily “decisions” are actually routines or habits.
• Habits free up cognitive energy for complex tasks.
• Smart habits for professionals include:
  • Habitually learning (e.g., reading, listening to podcasts)
  • Self-summarizing after consuming content
  • Using “self-explanation” to truly grasp new concepts (counteracting the “illusion of explanatory depth”)

"My habits ease the mental burden of the day—so I can think about the rest."
— Dr. Markman [18:06]

5. Path Dependence and Innovation

• Path dependence: Our systems and habits are rooted in past choices, which can prevent optimal progress.
  • Example: QWERTY keyboard remains the standard due to path dependence, not performance.
  • Organizations must occasionally challenge the status quo and question if they’re following a path simply because it's familiar.

"We have to ask—am I choosing this only because it’s the easiest step from where I am? Sometimes that’s right, but not always."
— Dr. Markman [23:07]

6. Driving a Culture of Smart Thinking

• True innovation requires downtime and slack in the system—organizations must not drive staff at 100% capacity if they want meaningful learning and creativity.
• Psychological safety is key: teams must feel safe to be wrong and to challenge existing views.
  • Dr. Markman shared UT Austin’s COVID planning: anonymous idea sharing encouraged wide participation without fear of blame.

"Psychological safety doesn’t mean never being uncomfortable; it means rewarding people for raising what’s on their mind—even if it turns out to be wrong."
— Dr. Markman [35:12]

• A leader’s job is to foster space for learning, experimentation, and regular re-examination of “why” things are done a certain way.

7. Similarities vs. Analogies: Tools for Problem Solving

• Most decisions rely on "literal similarity”—what have I done before that's just like this?
• When facing novel challenges, analogy allows you to find structure in past experiences even if the surface is different.
  • Example: The evolution from mail-order DVDs to streaming at Netflix stemmed from recognizing structural, not surface, analogies.

"Every once in a while, you want to disrupt things that seem to work perfectly—analogy helps you see new possibilities."
— Dr. Markman [29:03]

8. Practical Tips for Teams and Leaders

• Creating “desirable difficulties”: Tasks that require some mental stretch are more likely to be remembered and understood.
• Discouraging multitasking: The brain doesn’t truly multi-task—focus brings higher-quality output.
• Facilitating value alignment: A fulfilling career isn’t about loving every daily task, but about aligning your work with your values, which evolve over time.

"It’s not about loving every aspect; it’s about whether your job lets you reflect your values."
— Dr. Markman [45:42]

• Periodically reassess both individual and organizational values to ensure continued alignment and relevance.

Notable Quotes & Memorable Moments

• On Creativity:
  "The people who have the best ideas are the ones who have the most ideas… You have to go through a lot of junk to get to the gold." — Dr. Markman [08:31]

• On Leadership and Jazz:
  "Listen more than you play—your success depends on all the minds you’ve harnessed, not just yours." — Dr. Markman [39:57]

• On Decision-Making:
  "Past performance is not an indication of future returns… We need to take that seriously in our mental lives as well." — Dr. Markman [27:41]

Timestamps for Key Segments

• Intro and Dr. Markman’s Background — [00:06]–[05:49]
• What Is Smart Thinking? — [05:49]–[07:01]
• Cognitive Peak and Developing Expertise — [07:01]–[09:55]
• AI vs. Human Problem-Solving: Chess Example — [11:24]–[15:02]
• “Rule of Three” in Communication and Memory — [15:02]–[17:21]
• Building and Leveraging Smart Habits — [17:21]–[22:17]
• Path Dependence in Habits and Business — [22:17]–[26:58]
• Understanding Similarities vs. Analogies — [28:05]–[34:33]
• Fostering Smart Cultures & Psychological Safety — [34:33]–[41:56]
• Desirable Difficulties and Multitasking — [41:56]–[45:14]
• Values Alignment and Meaningful Careers — [45:14]–[49:24]
• Right-brain vs. Left-brain Myths — [49:24]–[50:58]
• Final Recommendations for Smart Thinking — [51:36]–[52:52]

Actionable Takeaways

• Practice self-explanation after learning something new.
• Distill communications to three core points—don’t overwhelm others (or yourself) with detail.
• Regularly ask “Why are we doing it this way?” to avoid unexamined path dependence.
• Schedule and protect time for learning/innovation—don’t over-optimize for today at tomorrow’s expense.
• Create spaces where it’s safe to be wrong and to challenge norms; leaders should cultivate silence and listen.
• Check in periodically with organizational and personal values to maintain alignment and motivation.

Recommended Resources

• Dr. Markman’s Books:
  • Smart Thinking
  • Bring Your Brain to Work
  • Brain Briefs (with Dr. Bob Duke)
  • Smart Change
• “Two Guys on Your Head” radio podcast (Dr. Markman’s show)
• Research on illusion of explanatory depth: Frank Keil and Leonid Rozenblit

This summary captures the essential content and energy of the discussion, providing practical insight and context, especially for leaders and teams in the financial industry or any fast-changing field.