Method
Chapter 3 - Experiential Growth Method®
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Welcome to the Method page
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This is the last concept of the "Experiential Growth Method®".
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| Nature never betters one characteristic. It enhances the whole. In business, optimisation of the individual (with productivity as a goal) should be replaced by improving the team, the department, and the entire organisation. |
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Core ideas
The word "method" comes from the Greek word "methodos", which means "pursuit" or "way of going about something".
It refers to
- a systematic or orderly way of doing something,
- a process or procedure to achieve a specific goal,
- technique or approach to achieve a desired outcome.
The concept of method has been developed and refined through the centuries, and it has been considered an essential tool for achieving goals and solving problems. It has been used by many philosophers and scientists, from Aristotle to the present day, to develop systematic and reliable ways of acquiring knowledge and understanding the world around us.
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Deep dive
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Induction
Induction is a form of reasoning where you start with specific observations or examples and then use them to make a generalization or a general rule. It's like when you try new food, and like it, you might generalize that you like that kind of food. An example of this could be:
- This apple is red (specific observation),
- and this apple is red (specific observation),
- and this apple is red (specific observation),
- so all apples are red (generalization).
Induction focuses on generalizing from particular examples.
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Examples
An example of inductive reasoning in the business world might be identifying customer behaviour patterns. For example, a retail store might notice that customers who purchase a specific clothing item also tend to buy a particular brand of shoes. The store might then use inductive reasoning to generalise that customers who buy this clothing item are likely to be interested in this brand of shoes. Based on this generalisation, the store might decide to place the brand of shoes next to the clothing item in the store to make it more convenient for customers to find and purchase them. By using this strategy, the store is trying to increase the chances of selling the shoes, as it has been observed that customers interested in one product are likely to be interested in another one.
Another example could be a market research company observing an increasing demand for eco-friendly products. They might generalise that people are becoming more environmentally conscious, and therefore more companies might want to invest in eco-friendly products. They can provide that service to their clients.
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Pros and cons of inductive reasoning
Pros:
- Inductive reasoning allows for discovering new patterns, trends, and generalizations, which can be used to make predictions or develop new theories.
- It allows for flexibility and adaptability, as new observations can be incorporated into a generalization.
- It is often used in scientific research, where discoveries and theories are based on patterns observed in data and experiments.
- It can be used to identify potential relationships and correlations between variables.
Cons:
- Inductive reasoning can lead to overgeneralisation and false conclusions if not enough data is collected or the sample size is too small.
- It is not a guaranteed process, as it does not necessarily provide a definite conclusion but a probable one.
- Inductive reasoning can be affected by personal bias, so it's crucial to approach it with a critical mind and consider alternative explanations.
- It is not as precise as deductive reasoning, and the conclusions drawn from inductive reasoning are often less certain than those drawn from deductive reasoning.
Inductive reasoning can be a very effective tool. Still, it's essential to know its limitations and use other forms of reasoning, such as deductive and abductive reasoning, to understand a situation better. Also, it's important to note that the probability of the conclusion being true increases as the number of observations increases
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Abduction
Abduction is a type of reasoning we use to develop new ideas or explanations. Abduction is when you start with an observation or a problem and then try to come up with the best possible explanation. It's like trying to figure out why your computer is not working. You might notice that the screen is black and then use abduction to come up with different explanations, like maybe the laptop is unplugged or the screen is broken.
So in simple words, abduction is guessing the best possible explanation for something you see or understand.
It's different from induction, which is when you look at many examples and use them to generalise, or deduction, which is when you use facts you already know to come to a logical conclusion.
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Example
An example of abductive reasoning in the business world might be trying to figure out why sales for a particular product have decreased.
The business owner might start by observing that sales for the product have decreased over the past month. They might then use abductive reasoning to come up with different explanations for this observation. For example, they might consider factors such as changes in the economy, increased competition, or changes in consumer preferences.
After considering various possible explanations, the business owner might decide that the most likely reason is that the product's price point is no longer competitive and that they need to lower the price to attract more customers. So, in this case, the business owner used abductive reasoning to identify the most likely explanation for the decrease in sales and then used that information to make a decision, which was to lower the product's price.
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Pros and cons of abductive reasoning
Pros:
- Abductive reasoning generates new and creative ideas, which can be helpful in problem-solving and decision-making.
- It allows for considering multiple explanations, which can help identify the most likely answer.
- It is advantageous in fields such as science and business, where discoveries and explanations are often based on incomplete data.
- It allows for integrating multiple forms of information, including quantitative and qualitative data.
Cons:
- Abductive reasoning can be subjective, as it relies on the individual's judgment to determine the best explanation.
- It can lead to considering unlikely or implausible explanations, which can be time-consuming and unproductive.
- It can be affected by personal bias, so it's essential to approach it with a critical mind and consider alternative explanations.
- It does not necessarily provide a definite conclusion but a probable one.
Abductive reasoning can be a powerful tool for generating new ideas and explanations. Still, it's essential to know its limitations and use other forms of reasoning, such as deductive and inductive reasoning, to understand a situation better. It's also important to be mindful of potential biases and limitations that might affect the conclusion.
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Deduction
A deduction is a form of reasoning where you start with a general rule or fact and then use it to reach a specific conclusion. It's like using a map to figure out how to get to a particular place. You start with the big picture (the map) and then use it to find your way to your destination (the specific location). An example of this could be:
- All dogs are mammals (general rule/fact),
- and this animal is a dog (precise observation),
- so this animal is a mammal (specific conclusion).
A deduction is more focused on reasoning from a general rule to a specific conclusion.
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Examples of deductive reasoning in the business world
Budgeting and Financial Forecasting: Businesses use deductive reasoning to create budgets and financial forecasts. They start with assumptions about future revenues and expenses and use these assumptions to predict prospective financial performance. For example, a company might assume that it will have a certain level of sales next quarter and that it will have certain expenses. Based on these assumptions, the company can use deductive reasoning to calculate how much money it will have left over after paying its expenses and use this information to make budgeting decisions.
Legal compliance: Businesses must comply with a wide range of laws and regulations and use deductive reasoning to ensure that they comply. For example, a business might know that it must abide by a specific labour law, and it might use deductive reasoning to determine its actions to comply with the law.
Sales and Marketing: businesses use deductive reasoning to create sales and marketing strategies. They may start with assumptions about the target market and the product features, then use this information to create a strategy to sell the product. For example, suppose a business assumes that the target market for their new product is working mothers and the product is a time-saving kitchen gadget. In that case, they might use deductive reasoning to conclude that the most effective way to market the product would be through social media platforms and parenting websites, where working mothers are likely to spend their time.
In all these examples, businesses use deductive reasoning to apply general information to specific situations to come to a logical conclusion and make informed decisions.
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Pros and cons of deductive reasoning
Pros:
- It is a very logical and systematic way of thinking and is easy to understand and follow.
- It allows for precise and logical conclusions drawn from premises, which can be very helpful in making decisions.
- It helps to identify and eliminate errors in reasoning.
- It helps identify the necessary and sufficient conditions for a particular event.
Cons:
- It relies heavily on the accuracy of the initial premises and assumptions, so if these are inaccurate, the conclusion will also be wrong.
- It can lead to overgeneralization or oversimplification, which can limit the scope of the conclusion.
- It can be very rigid and inflexible, making it difficult to adapt to new information or changing situations.
- It can lead to a false sense of certainty because a conclusion we logically deduce from true premises is considered valid.
Deductive reasoning can be a very effective tool when used correctly. Still, it's important to remember that the accuracy of the conclusion is only as good as the accuracy of the premises. Therefore, it's also important to be aware of its limitations and use other forms of reasoning, such as abductive and inductive reasoning, to better understand a situation.
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