As I delved into the world of business education, the first course that truly captivated me was the “Analysis of Business Problems”. The inaugural case study was nothing short of intense, challenging me to transcend my default mode of thinking. Instead of relying solely on my instincts and prior experiences, I learned to embrace a more deliberate, analytical approach, allowing for careful consideration and problem-solving.
Little did I know, I was embarking on a transformative journey from what psychologists Daniel Kahneman and Amos Tversky coined as “System 1” to “System 2” thinking. Their dual-process theory of the mind proposes that human thought processes can be neatly categorized into two systems:
System 1: This is the fast, automatic, and intuitive mode of thinking. It operates effortlessly, drawing on heuristics and associations based on prior experiences. System 1 is deployed for tasks that demand less cognitive effort, such as recognizing familiar faces or reacting to immediate threats.
System 2: In contrast, this mode is characterized by its deliberate, analytical, and conscious nature. It involves careful reasoning, evidence evaluation, and complex decision-making. System 2 is summoned for tasks necessitating focused attention, like solving intricate math problems or meticulously weighing the pros and cons of a decision.
Transitioning from System 1 to System 2 thinking was a rigorous process, but it undeniably sharpened my decision-making abilities. In the office, I adopted a structured thinking process for meetings and discussions: “What is the problem statement?”, “What is the objective?”, “What criteria exist?”, and “What do the numbers tell us?”
Following an intense operations meeting, I received feedback from two team members. They noted that my questions to the team were notably more profound, analytical, and prompted the exploration of strategic options. I couldn’t help but smile and silently thank the LBS ABP class for this newfound clarity.
When enrolling in the MBA program, I set out with a clear objective: to stretch my understanding of Corporate Finance and Accounting. Previously, my familiarity with accounting figures was limited to basic metrics like Revenue, Cost, and EBITDA, presented after our accountant had meticulously combed through the data. This time, I resolved to delve deeper into the intricacies of those numbers, hoping it would bolster my strategic acumen in leading my business division.
The Corporate Finance Accounting module thrust me headlong into the realm of numbers. It quickly became evident that the fate of any company hinged on these numerical narratives, as opposed to the slew of System 1 thinking prevalent in social media and news commentary.
Assigned a Capstone project evaluating the financials of a pharmaceutical company in comparison to its industry counterpart, I was struck by the profound implications of recent decisions, such as the viral news surrounding the cessation of operations in Nigeria. Rather than hastily passing judgment, I let the numbers speak for themselves, leading to a more nuanced understanding of the situation.
In doing the capstone project, it was also amazing how learnings from Management Communication and Data Analytics also played out. The intentional integration of these courses became evident as I recalled feeling proud of myself while reviewing a report from the Business Analysis team. I executed a quick pivot table with the data they presented, garnering an impressed look from them as a competent manager. With precision, I formatted the Excel sheet using keyboard shortcuts and analyzed the top 10 paying consumers in a matter of seconds.
Thus far, my experience in the Modular Executive MBA program at LBS has been nothing short of extraordinary. The journey has only just begun, and I find myself on the precipice of a transformative learning experience that promises to shape not only my career but also my approach to decision-making and leadership.
