So how do you start thinking along a broader horizon?
In a recently updated version of “How Google Works,” Schmidt and Jonathan Rosenberg, adviser to CEO Larry Page, lay out how to plan your career.
Here’s how to apply their strategy:
- Think about your ideal job, and write a description for it. What does the job entail? What kind of organization is it for? How much do you want to make?
- Write down the personal strengths and weakness that could help or hurt your chances of getting that ideal job. Get external input from friends, family or people in your network.
- Invest in developing those skills or gaining the experience you need to get that job.
Focusing on the long-term isn’t just a good way to get ahead in your career, it’s a great way to build wealth.
When billionaire and legendary investor Warren Buffett decides to invest in a company, he doesn’t act on impulse or even the daily movements of the stock. Instead, he thinks long-term, a strategy for which he’s become famous.
Though people who invest long-term may miss out on the excitement of day trading, they are better protected from the psychological biases that can lead to poor decisions.
Research shows that recency bias (scoring twice in a basketball game and being confident that the next shot will be another score) can lead to overconfident decisions where people ignore probability and other factors impacting the result.
In addition, investors often fall prey to availability bias, where they overreact to bad news about a company, producing reactive decisions. To avoid this missteps in your finances and in your career, think more broadly.
“Especially under fear or anger,” Schmidt says, “you’ll make a decision you will regret.” (Life coach and bestselling author Tony Robbins agrees.)
“For anything important,” Schmidt says, “put it in a five year context.”
Check out the skill Schmidt says more employers will be looking for in the future.