Cognitive biases lead to typical business strategic analyses such as SWOT giving a false sense of comfort and security. The result? Appalling oversights that ruin profitable businesses and bring down high-flying careers.
Because we usually feel that everything is going to go according to plan, we don’t pay nearly enough attention to potential problems and fail to account for them in our plans. This problem stems from a dangerous judgment error called planning fallacy.
Avoiding Disastrous Decisions involves:
1) Deciding the decision criteria
2) Weighing importance of criteria
3) Grading your options using the criteria
4) Checking with your head and gut
5) Sticking to your choice
How can you make everyday decisions quickly? Answer 5 key questions: 1) What info do I need? 2) What cognitive biases might harm me? 3) What would a trusted adviser say? 4) How might this fail? 5) Why might I revise this decision? This episode of the “Wise Decision Maker Show” provides a videocast and podcast about these 5 key questions that you can use to ensure you make the best everyday decisions, in business and in life.
In order to make the best decisions, follow these decision-making process steps:
1) Identify need for decision
2) Get relevant info
3) Decide goals
4) Develop criteria
5) Generate a few viable options
6) Weigh options
7) Implement decision
8) Revise implementation and decision as needed
To improve new member retention, associations need to avoid dangerous judgment errors. An example is the overconfidence bias, which causes association leaders to be excessively confident about what new members want.
Get a free book sample at DisasterAvoidanceExperts.com/NeverGut. You can also get the book on links from that same website, or at a bookstore near you. I want you to take advantage of the strategies in this book to maximize your success and leave business disasters to your competition.
Consumers mostly make their shopping choices with their gut. As a result, they make many poor decisions. One of these decisions is to rely increasingly on online user reviews compared to recommendations from friends, even though user reviews are often misleading.
To make changes, the rewards must be a 2 or more or you might as well consider other potentials. On the negative side if the potential downsides are nearly a 4 or more then you may want to forget about taking such a risk.
To avoid decision disasters and defeat cognitive biases, develop the 12 critical skills that cognitive neuroscience and behavioral economics show are needed for mental fitness.