Decisions, Decisions, Decisions

What do you do when waiting for your plane to arrive? Head over to the newsstand and get the latest Harvard Business Review* magazine.

The theme of the issue – “make better decisions.”  Well who wouldn’t be drawn to that headline!?

I clearly was, so I made the immediate decision to dive in. 

First you have to understand how decisions are made.  According to the article there are two main ways we make decisions.

1. System 1 thinking – Automatic, instinctual and emotional
2. System 2 thinking – Slow, logical and deliberate

And what also struck me was if I wanted to grow as a person (in life and in business), I have to be aware of what type of thinker I am.  I immediately realize in many situations I rely heavily on System 1 thinking.  

The truth is because we are human beings (with feelings) we tend to rely greatly on instinct and emotion versus logical and deliberate thinking.  And when you bring emotion into it, you tend to bring along a lot of bias.  This can in turn lead to poor decision making. 

Isn’t that a big part of our lives?   At every turn we have to make some decision.  And wouldn’t it be great to start making better decisions?  Well, I thought so – therefore I read on…

As I continue to flip through the pages, I’m getting a bit discouraged about my role as a decision making architect.  Feeling that my biases muddy my decision making process.  And per the article, even if  you rely on logic it can be lazy or flawed.  The truth is many of us do this.  We tend to not explore risks and uncertainties, and seek closure because frankly it is easier.  So the trick is to know which biases tend to trip us up and then outsmart them.

1. Think about the future. If you tend to think too narrow and on immediate outcomes you may be making a best guess and stop there.  So one trick is to do a premortem (yes I said PRE, not POST) – imagine a future failure and then explain the cause.     
2. Think about objectives in an expansive way. By doing this you avoid the trap of not considering all the possibilities. And if you limit the possibilities, you may be limiting the opportunities.  A great way to do this is SEEK ADVICE.  This will open your eyes and potentially round out your perspective.

Bottom line (as I’m about to board my flight) – I realize a few things.  First, I’m lucky enough to work in an environment with many people who tend to have System 2 thinking.  A big chunk of what we do at Butler/Till is deliberate and logical thinking.  Secondly, I realize that you need a balance of both.  But being more self-aware of which thinker you are, coupled with some tips and seeking advice from folks that offset your biases is a very good start.

Which thinker are you?

*Referencing Harvard Business Review May 2015 issue