Impact Thinking 101: How to Become the Smartest Person in the Room

Read time: 4 minutes

I want you to become the smartest person in the room.

I hope that tapped into your ego, but in all seriousness, I really do. Here’s why. When I first started my business, I read a quote that changed everything for me:

“The greatest contribution of a leader is to make other leaders.” (Simon Sinek)

Read that again and substitute the word “leader” for whatever you want to be – and it tells you exactly what you need to do.

This is the reason I write this newsletter and why it’s called “Impact Thinking.”

Because the greatest contribution of an impact thinker is to make other impact thinkers.

And impact thinkers are the smartest people in the room.

In the 34 posts I’ve written to date, I haven’t once described impact thinking. Today, I want to share what it is and why it matters. Because once you do, you will leverage your mind in a radically new way.

Impact thinking is about turning mental firepower into wealth.

It isn't about getting smarter to show off; it's an action-based style of thinking.

It’s about finding the few moves that result in the biggest gain so you build wealth (however you choose to define it – be it money, time, or status).

The point of impact thinking is to cut through the noise.

Hard work is an essential characteristic of human potential.

But smart work is essential. The problem with hard work is that your effort is capped, and over time, you see diminishing returns. You need leverage.

And thinking is the greatest form of leverage.

Here's a truth that often slips beneath the radar: People underestimate the difference between A- and A+ work.

Sometimes, you read things that you can never unread – this is one of those things.

I learned this from James Clear, bestselling author of Atomic Habits. He explains that the gap between A- and A+ work isn't merely a slight improvement; it's a quantum leap (source credit: Creator Science Podcast).

The best in the world know that the results aren’t just 1x or 5x better – they are 100x or even 1000x better than those doing A- work.

That’s a big gap — for example, it’s the difference between $50 (1x) and $50,000 (1000x).

But it requires you to take the time to get it right.

That means having patience with results and persistence in the actions.

Why? Because the returns are always at the tail end.

And those who do A+ work know that results will compound faster if you use leverage as the force multiplier.

So, I’ll repeat it -- thinking is the greatest form of leverage.

Everyone thinks, but not everyone knows how to think with an impact.

Not all thinking is created equal.

There are three forms of thinking:

1. Critical thinking is about diving deep into the intricacies of a problem.

It’s about probing beneath the surface and asking the right questions.

• Evaluating evidence

• Breaking down issues

• Conducting rigorous analysis

Imagine a "problem" as a physical object on a table. A critical thinker would walk around that object, examining it from every possible angle to understand the depth of the problem.

They would consider, "What are all the potential solutions for this specific problem, and which one is the most effective?"

2. Strategic thinking is about zooming out to see how the problem is connected to everything else.

It's about understanding the directional impact and long-term consequences of the problem.

• Connecting the dots

• Playing with different scenarios

• Ensuring actions align with objectives

Imagine a "problem" as a physical object on a table once again. A strategic thinker would grab a ladder, examining it from above to understand the bigger picture.

They might consider, "What is the best solution to lead us toward our desired goal?"

3. Creative thinking is about developing innovative solutions for a given situation.

It’s about understanding the limitations and resources and breaking conventional wisdom.

Imagine a "problem" as a physical object on a table once again. A creative thinker would first place the object in a box. And would consider two trains of thought:

• Consider what resources they could use from inside the box to remove the object (problem)

• Construct unique ideas from outside the box they could use to remove the object (problem)

They might ask, "What is the best solution given the resources we have?"

A good thinker will use one of the three.

A great thinker can use two.

But an impact thinker engages all three to see the clear answer like a flashlight in the dark.

Now you may be wondering where the action is in the equation.

I started this off by talking about hard work. When the time comes, the impact thinker thinks from the lens of turning decisions into action. And they know how to do the work.

But it’s not about the hustle; it’s about the final key trait that sets the impact thinker apart.

When it comes to execution, impact thinkers rely on simplicity as a strategy.

They know that streamlined and efficient execution is the key to their success.

In a world of information and opportunity, they understand that complexity often hinders progress. So, simplicity becomes a guiding principle.

• Focusing on what truly matters

• Identifying the most critical impact

• Deploying resources effectively (and not getting lost in the secondary activities)

In essence, impact thinkers grasp that simplicity is the ultimate sophistication. It becomes their ally in their unrelenting pursuit of excellence.

This is how you do A+ work and become the smartest person in the room.

And when you do – it’s time to enter a new room.

Because with every new room, your wealth grows.

If you like this post, read 3 Frameworks to Help You Stay Focused, Avoid Overcommitting, and Make It Easier To Say No.

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Welcome to Impact Thinking.

Hi, I’m Peter. I quit my highly-regarded, 6-figure job at Harvard to build a strategy consulting company in 2019.

Hard work is a respectable characteristic, but it’s limiting. You need leverage. And I’ve seen first-hand that thinking is the greatest form of leverage.

Every Thursday, business owners, consultants, and executives learn to think with impact.

• Ditch the noise

• Ditch overthinking

• Ditch overcomplicating decisions.

Gain leverage and become an impact thinker to simplify decision-making, earn thought-leader status, and build bigger bank accounts.

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