Does the way that we think negatively affect outcomes? If you think that all relationships are linear you will be setting yourself up for failure.

A recent article I read got me thinking about how linear thinking can affect the outcomes of situation to the detriment of business owners. One of the example discussed is how thinking linearly about customer rating your services/product along a scale. If you think that a customer moving from 1 to 2 and 4 to 5 have the same magnitude this linear thinking may get you in trouble.

According to the researchers the magnitude of the change depends on the competitiveness of the industry. In a non-competitive industry moving consumers from 1 to 2 will achieve the best results, but in an ultra-competitive industry moving consumers from 4 to 5 will achieve the best results. This is why understanding the market is so critical to business success. Are you focusing on the maximising your growth by target the best marginal customers?

Read the article and go through do the test for nonlinear aptitude, it can be an eye opener. The article can be found here.