Jonah Lehrer always has fantastic columns. On Frontal Cortex, he discusses some recent neurological studies having to do with the mindset after making a mistake. We all make mistakes; the important thing is how or if we learn from them. It turns out that mindset has a lot to do with whether you learn from your mistakes or not.
The neurological research builds on the work of Carole Dweck, whose book Mindset should be required reading for every parent and teacher. Seriously, if you haven’t read this book you are missing the boat.
In her influential research, Dweck distinguishes between people with a fixed mindset — they tend to agree with statements such as “You have a certain amount of intelligence and cannot do much to change it” — and those with a growth mindset, who believe that we can get better at almost anything, provided we invest the necessary time and energy. While people with a fixed mindset see mistakes as a dismal failure — a sign that we aren’t talented enough for the task in question — those with a growth mindset see mistakes as an essential precursor of knowledge, the engine of education.
In her own research, Dweck has shown that these mindsets have important practical implications. Her most famous study, conducted in twelve different New York City schools along with Claudia Mueller, involved giving more than 400 fifth graders a relatively easy test consisting of nonverbal puzzles. After the children finished the test, the researchers told the students their score, and provided them with a single line of praise. Half of the kids were praised for their intelligence. “You must be smart at this,” the researcher said. The other students were praised for their effort: “You must have worked really hard.”
The students were then allowed to choose between two different subsequent tests. The first choice was described as a more difficult set of puzzles, but the kids were told that they’d learn a lot from attempting it. The other option was an easy test, similar to the test they’d just taken.
When Dweck was designing the experiment, she expected the different forms of praise to have a rather modest effect. After all, it was just one sentence. But it soon became clear that the type of compliment given to the fifth graders dramatically affected their choice of tests. When kids were praised for their effort, nearly 90 percent chose the harder set of puzzles. However, when kids were praised for their intelligence, most of them went for the easier test. What explains this difference? According to Dweck, praising kids for intelligence encourages them to “look” smart, which means that they shouldn’t risk making a mistake.
Dweck’s next set of experiments showed how this fear of failure can actually inhibit learning. She gave the same fifth graders yet another test. This test was designed to be extremely difficult — it was originally written for eighth graders — but Dweck wanted to see how the kids would respond to the challenge. The students who were initially praised for their effort worked hard at figuring out the puzzles. Kids praised for their smarts, on the other hand, were easily discouraged. Their inevitable mistakes were seen as a sign of failure: Perhaps they really weren’t so smart. After taking this difficult test, the two groups of students were then given the option of looking either at the exams of kids who did worse or those who did better. Students praised for their intelligence almost always chose to bolster their self-esteem by comparing themselves with students who had performed worse on the test. In contrast, kids praised for their hard work were more interested in the higher-scoring exams. They wanted to understand their mistakes, to learn from their errors, to figure out how to do better.
The final round of tests was the same difficulty level as the initial test. Nevertheless, students who were praised for their effort exhibited significant improvement, raising their average score by 30 percent. Because these kids were willing to challenge themselves, even if it meant failing at first, they ended up performing at a much higher level. This result was even more impressive when compared to students randomly assigned to the smart group, who saw their scores drop by nearly 20 percent. The experience of failure had been so discouraging for the “smart” kids that they actually regressed.
The problem with praising kids for their innate intelligence — the “smart” compliment — is that it misrepresents the psychological reality of education. It encourages kids to avoid the most useful kind of learning activities, which is when we learn from our mistakes. Because unless we experience the unpleasant symptoms of being wrong — that surge of Pe activity a few hundred milliseconds after the error, directing our attention to the very thing we’d like to ignore — the mind will never revise its models. We’ll keep on making the same mistakes, forsaking self-improvement for the sake of self-confidence.
I’ve quoted liberally from Mr. Lehrer here, simply because he writes so well that it is almost impossible to summarize it more concisely, and because his work deserves the widest possible audience (although the bold is mine).
You’ve got to feel the failure before you can learn from it. Fake self-esteem isn’t worth a damn if you keep making the same mistakes. I think this is a real problem in the financial community. Unfortunately, clients expect advisors to be omniscient and some advisors are all too willing to play that role. Instead of making it clear to clients that no one knows what the outcome of any particular situation will be and that their personal opinion could well be wrong, Wall Street often tries to cover up its errors by “revising their estimates” or explaining that they aren’t really wrong but merely early.
Guess what? Being early is indistinguishable from being wrong. Just deal with the mistake and learn from it. It’s the wrong mindset that causes investors to make the same mistakes cycle after cycle, always blaming someone or something else for their poor decisions. Investing well is really, really hard and investors need to learn to fail better to improve at it.
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