Liu Run's The Underlying Logic made me reevaluate the fundamental principles that govern life and work, helping me see beyond appearances to understand the essence of things, thereby enhancing both my personal skills and career performance. Drawing from his extensive experience as a business consultant, Liu offers readers a fresh perspective on how to better understand and navigate our rapidly changing world.

Book Overview

Liu Run, a former Microsoft China Strategy Director, has provided consulting services to major companies like Tencent and Baidu. In The Underlying Logic, he explores how understanding these foundational principles can help individuals adapt to changes in their personal lives, careers, and the business world. This book is not just a business guide but a reflective work that encourages readers to deeply understand their own situations.

Core Ideas of the Book

We often rush to find specific methods and solutions, but truly effective methodologies are composed of underlying logic and environmental variables. Environmental variables refer to external changes, while underlying logic is the constant— the basic rules governing the functioning of things. Liu emphasizes that only by mastering this underlying logic can we continuously adapt to changes and formulate appropriate strategies.

The book consolidates his views on the underlying logic of five key areas: values of right and wrong, how to think critically, how individuals should evolve, understanding others, and grasping the fundamental principles of social cooperation. These underlying logics provide us with a new perspective, enabling us to remain clear-headed in a complex world and make wiser decisions.

Work Attitude and Value Creation

Liu Run believes that we should view work as a game. He classifies work and play into four types: tedious and draining, draining but fun, tedious but creative, and both fun and creative. This classification reveals different attitudes toward work and explains why some people find immense joy and fulfillment in their jobs.

Take overtime work, for example. I used to see it as a tedious and dull task, something I had to do just to please my boss. However, when I changed my mindset and viewed it as a challenge—like simplifying complex technical issues to present to clients—I found that I not only completed the work better but also derived joy and satisfaction from it. This taught me that the key lies in how we perceive our work and whether we can find joy and value in it.

Liu Run’s perspective on work attitudes encourages us not just to complete tasks but to seek opportunities for creativity in the process. Viewing work as a game can not only improve our efficiency but also help us find more fulfillment and happiness in our careers.

Building Networks

The book points out that the essence of networking is value exchange. We need to enhance our value first to attract quality connections. It's crucial to distance ourselves from negative people and situations, rather than the individuals or problems themselves. When we become more valuable and capable, the quality of our networks will naturally improve.

This serves as a reminder that building networks isn’t about seeking external recognition but continuously enhancing our value. We should focus on improving our abilities and creating value, as this will attract genuinely valuable connections and create a positive cycle.

The Underlying Logic of Problem-Solving

The key to solving problems lies in seeing the essence of things, not just relying on experience or appearances. Liu Run illustrates this with an example from World War II, where the Allies mistakenly thought increasing armor on wings would improve bomber survival rates. A statistician later pointed out that they should instead reinforce the cockpit and tail. This example shows that we should avoid hindsight bias—making decisions based solely on experience or appearances—and instead use scientific methods to test and adjust our assumptions, leading to more effective solutions.

This principle is crucial in both work and life. We should learn to solve problems scientifically rather than relying on intuition and experience. Only by doing so can we see the essence of things and find truly effective solutions.

Financial Freedom and the Power of Compounding

The underlying logic of financial freedom emphasizes the importance of compounding, requiring time and the accumulation of capital, and stresses reducing unnecessary desires. Liu Run warns that the fallacy of periods and returns often misleads us, as excessively high returns are usually unsustainable, so caution is advised. Compounding doesn’t lead to overnight wealth; it’s a slow process that matures over time.

He emphasizes the need for patience and understanding the concept of "little by little" to truly achieve financial freedom. This concept is particularly relevant to young people in today’s society, where many are eager for quick wealth, often overlooking the long-term process of wealth accumulation.

Increasing Success Rate with Probability Thinking

The book also introduces how to use probability thinking to increase the success rate. Finding certainty in uncertainty is key, and the secret to success lies in doing the right thing repeatedly and minimizing the influence of luck. For example, if the success rate of an action is 20%, repeating it 21 times gives us a 99% chance of success.

I experienced this firsthand during my job search. After graduating, I sent out numerous resumes but received very few responses, which left me feeling discouraged. Later, I decided to adopt a more systematic approach, improving my resume and interview skills, and tailoring my applications for each company. Through continuous effort, I eventually secured several ideal job offers. This taught me that as long as we persistently strive and continually refine our approach, the chances of success will significantly increase.

Liu Run’s probability thinking helps us understand that success isn’t just about luck; it’s about continuously improving and applying the right methods to increase the likelihood of success. This mindset is crucial for pursuing success in any field.

Personal Evolution

In the section on personal evolution, Liu Run discusses how to enhance personal abilities, efficiency, and leverage. He introduces the "ability-efficiency-leverage" formula, emphasizing the ability to acquire new skills, choosing the right methods and tools, and using leverage like teams, products, capital, and influence to achieve success.

He cites examples of polymaths like Leonardo da Vinci, Herbert Simon, and Bob Dylan, who excelled across different fields because they had the ability to quickly acquire new skills. Their secret to success lies in continuous learning, deliberate practice, and leveraging external resources to amplify their impact.

These insights greatly inspired me. We should continually enhance our learning ability, choose the right methods and tools, and effectively leverage external resources to achieve greater breakthroughs in personal growth and career development.

Conclusion

The Underlying Logic is not just a book about business and personal growth; it’s a guide that teaches us how to navigate change and improve ourselves by understanding the essence of things. Through Liu Run’s in-depth analysis, we can see the underlying rules of things, make wiser decisions, and move toward success. This book is recommended for anyone looking to make breakthroughs in life and work. By understanding the underlying logic, we can find the unchanging foundation in this rapidly changing world, positioning ourselves for success.