Decision making: the games we play

Decision making: the games we play

4 months ago 0 0 44

This post is part of the series on decision making.  Building on the research around the factors of decision making open to influence, we explore 3 common decision scenarios (games as defined by Nash) and how you can improve your personal decision making. Scenarios for decisions: Consider the following situations: You win at the casino, and believe you have discovered a ‘method’ for winning every time you play. A relative passes away, and there is disagreement over the division of the estate, and the relationships are permanently damaged. You have a rival who would rather harm your chances more than get any benefit, as long as they do better than you they are happy to wear some pain, too. You are in a negotiation and you the other side is asking for and expecting impossible things from you, ensuring the negotiation goes nowhere even though the path seems obvious to

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Deciding to be a better decision maker

7 months ago 0 0 239

  Summary: Make better decisions by understanding them. What makes a good decision?  When is effortful decision making warranted? Know the problems in decision making that emerge from assumptions and predictions When you have an important or novel decision to make, employ these simple tips to make better decisions.   Are you struggling to make a good decision? Do you have trouble committing to a decision, or selecting from a range of options? You are not alone – Decision making is something we do in every context of our lives, with the potential for life-changing outcomes. Yet what do we really know about how and why we make decisions, and how can we make them more efficiently and effectively? What are the features of a high-quality decision? A decision is about making a choice following some consideration – that is, evaluating and choosing what to do then acting accordingly. Any

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The leadership decision ‘speed trap’

5 years ago 1 0 1346

Leaders need to know the difference between haste and speed, particularly when it comes to their thinking. In modern business, we seem to be in the habit of needing to be ‘fast’ to just keep up. However, going too fast can get leaders stuck in a ‘speed trap’ that can get you and your business into trouble. Feeling pressured to make fast decisions – and even feeling that you have to make decisions for others when they can make them for themselves – can be critical leadership errors that can impact upon your leadership (and whole organisation) performance. Decision making requires an appropriate amount of thinking. What we have learned through behavioural economics and psychology, is that there are common errors inherent in thinking. These errors, although well documented, are routinely made by almost everyone. Leaders, under pressure to take decisions, often fall foul of these errors, sometimes with catastrophic

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The stories that can ruin your business (part 1)

5 years ago 0 0 1122

I was presenting on culture and leadership at a recent conference (#100millionimpacts, for B1G1), and whilst facilitating a panel discussion, a common theme that emerged was the importance of the stories in business. In response to many questions after the session, here are a few thoughts on stories in business to extend that discussion further: Stories are powerful means of communication. Often, people believe that storytelling ends when the kids grow up. However, there are stories being told within your business – and about your business – that can either take it to new heights of success or lead it to ruin. What stories are being told about your business? People communicate through stories. As people communicate, they engage each other through analogy (this is like that), metaphor (the army of sales reps) and stories. Humans are always using these processes to engage their listeners, develop shared meaning and convey

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Stress is inevitable – how you respond to it is not

5 years ago 0 0 2566

Stress is inevitable, but can it enhance performance or does it always harm us? Stress is reported as one of the significant ‘modern diseases’. People are reporting feeling so ’stressed’ from their work and private lives that it making them physically and psychologically ill. When you consider performance, stress plays a massive role in dragging people out of their peak performance states into less resourceful ones. Stress is almost contagious, with people being influenced by stress that others experience to become stressed themselves. Have we created a world where stress is inevitable, and we are all just victims of our circumstance – or is there more to stress, and can we do more than just manage it? What is stress? Stress is the body’s response to being forced to operate outside its comfort zone. When we are in our comfort zone, we have the belief and expectation that we can

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Understanding the ‘Trumpnado’ – the social psychology of Donald Trump

5 years ago 1 0 1541

After it started as seemingly a bit of a joke, Donald Trump has catapulted into front-runner status for the Republican nomination for President in the United States. His extreme actions and language are completely at odds with the traditional political playbook. However, it seems to be working. Whilst it may seem completely illogical, there are compelling social psychology reasons why his approach is working – and there is a dangerous historical precedent. Where did the supporters come from? Donald Trump has drawn a large and passionate supporter base. Whilst Ted Cruz and Mark Rubio have fashioned messages to speak to a conservative mindset, Trump has spoken across classic voter categories. His supporter base was probably not even aware that they were Trump supporters, but his campaign has activated them. First to get on board were more extreme elements, but over time his activation has reached deeper and deeper into the

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Do you trust your intuition or use logical decision making?

5 years ago 0 2 6677

When you make a decision, how confident are you that you make it logically? Most people will say that they make most of their decisions using logic, weighing up the facts and figures and coming up with a reasoned, logical outcome. However, in reality, our brain is designed to short-circuit logical decision making and make emotional, non-rational decisions. We often call this ‘intuition’ or instinct. These instinctive decisions are critical to survival when there is little time. However, the benefit gained through the speed of response is traded off for accuracy. An experiment in thinking: Try these two tasks: Task one: What comes next? Apple, Orange, Banana …… Task two: without calculator or paper and pencil, find 23 x 17. • Which task was easier? • Which task was faster? • Which task has a ‘known’ answer, and which one did you create? • Can you explain why you gave

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Beyond logic to effective communication

5 years ago 0 0 1235

Have you ever noticed that sometimes- even when there is no logical reason for it- your staff or your customers simply won’t take actions that are clearly in their best interests? They have made their minds up about what is happening before you have had a chance to explain it, or they agree with what you propose, but just don’t seem capable of taking action. Regardless of the best intentions, our brains have a ‘fast’ decision circuit that leaps to conclusions before we can logically process information. If we don’t help our customers or staff to make the right ‘leaps’ and conclusions, their cognitive processing will often make a decision to avoid change, and therefore to not take the action which would be in their benefit. Beneath all of the logical processing that occurs in our minds runs a much deeper, almost primitive evaluation system. It is this system which

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How your behaviour is shaped by what happens in Paris

6 years ago 0 0 1005

The terrible incident in Paris, where a coordinated attack led to significant loss of life and injury, has been extensively reported and commented upon.  Whether you like it or not, it’s effects reach right around the world, and unconsciously impact many people’s behaviours and decision making.  Here’s how it is probably making an impact on you, whether you want it to or not. The risk / control equation: People are notoriously bad at assessing risk.  More than anything, a person’s perception of control modifies how much ‘risk’ they perceive.  For example, an Australian was 5 times more likely to die in a car accident, than a Parisian was to die in the recent terrorist incident.  However, we all have a ‘competency bias’ and believe that when we have control ( as we often believe when we are driving) our perception of risk is reduced.  A terrorist attack is designed to

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