Levels of Understanding

In a world where information is a commodity, deep understanding is the most valuable resource.

Roger Penrose argues that understanding is what separates us from computers:

Intelligence cannot be present without understanding. No computer has any awareness of what it does.

Sometimes people view understanding as binary: UNDERSTAND <> DO NOT UNDERSTAND.

Yet, understanding is not a not like that. It is a spectrum. It ranges from shallow comprehension to profound insight.

The framework represents exactly this spectrum.

The Four Levels

1. Events

Observable things in our immediate environment.

They are singular incidents or phenomena that capture our attention:

news headline
sudden market fluctuation
personal experience

Little understanding is required here. Merely observing. We can recognize the significance of something, yet we are unable to explain it.

📉

Example: A company notices a sudden drop in sales in the last quarter.

2. Behaviors

Moving a layer deeper. Rather than isolated incidents, behaviors are sequences of events that reveal some regularities.

We usually view them as patterns and trends that emerge over time.

Understanding at this level → recognizing these patterns. And possibly using the patterns to try to anticipate future events.

🗓️

Example: Analyzing sales data over multiple quarters reveals a seasonal decline in sales happened before (2 times in the last 5 years). But it was less severe.

3. Structures

At this level we focus on systems and processes that produce observed behaviors.

Structures include:

organizational setups
market mechanisms
societal norms
economic policies
supply chain networks
urban planning

and many others.

Understanding structures allows us to:

see the cause-and-effect relationships
recognize interconnections & interdependencies
studying feedback loops
make sense of emergent properties
facilitate system optimization

📦

Example: After some investigation, company finds that winter weather disrupts its supply chain. It's the consequence of the company relying on a single, cost-effective, yet not reliable shipping method.

4. Paradigms

These are the core frameworks upon which structures are built and behaviors emerge.

They encompass the most fundamental principles that govern the entire systems:

essential human beliefs & values.
core doctrines that permeate every aspect of society
foundational principles & ideologies

Just as tectonic plates shape the physical landscape, paradigms mold the social, technological, political, and economic landscapes.

Shifting paradigms can lead to transformative changes.

🤑

Example: The company's vulnerability to seasonal disruptions is rooted in a Growth-At-All-Costs paradigm. It prioritizes rapid expansion and market share growth over building resilient business operations.

From Obvious to Deep

The framework represents a path from superficial observation to profound insight.

You can link each level to the question:

Events: What happened?

Behaviors: What patterns are emerging?

Structures: What is underneath these patterns?

Paradigms: What core principles & beliefs shape these systems?

Wrapping up

The framework outlines the structure of a continual process of inquiry and reflection. It challenges us to look beyond the obvious, to question our assumptions, and to seek nuanced deep understanding.