Making decisions lies at the heart of all businesses. Thousands of decisions get made by everyone in your business every week. The problem is we generally stink at making good decisions. Why?
First of all, we're basically lazy thinkers. As Daniel Kahneman says in Thinking Fast and Slow, we rely too much on our intuitions. And despite what Malcolm Gladwell may lead you to believe, that is a bad thing in the majority of cases.
"..many people are overconfident, prone to place too much faith in their intuitions. They apparently find cognitive effort at least mildly unpleasant and avoid it as much as possible."
Secondly, when we do engage actively our brains, we have a whole host of built-in biases that we have to overcome in order to make decent decisions; including anchoring, status quo, sunk costs, confirming evidence, and estimating and forecasting biases.
In our business, people tend to think of the term technology to mean hardware or software, but technology means more than that.
The practical application of knowledge is a technology in itself. And we need to start applying what we know about the way we think and our biases, to make better business decisions.
Everyone benefits if we do.
Less Noise. More Signal:
Apply the WRAP process from Decisive (the Heath Brothers' latest book)
- Widen Your Options
- Reality-Test Your Assumptions
- Attain Distance Before Deciding
- Prepare to Be Wrong
For more details and research, see:
Daniel Kahneman, Thinking Fast and Slow (New York: Farrar, Straus and Giroux, 2011)
Chip Heath and Dan Heath, Decisive: How to Make Better Choices in Life and Work (New York: Crown Business, 2013)
J. Edward Russo and Paul J.H. Schoemaker, Decision Traps: The Ten Barriers to Brilliant Decision Making and How to Overcome Them (New York: Simon & Schuster, 1989)