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“The
first principle is that you must not fool yourself
and you are the easiest person to fool.”
--Richard Feynman
We
make decisions all day long. Good decisions, bad decisions, mediocre
decisions, decisions that have minimal impact on our lives and decisions
that are enormously important. Most of us imagine that we give significant
decisions the weight, thoughtfulness and care that they require,
but the truth is that despite our best intentions, humans fall blindly
into a range of decision traps that corrupt our thinking and deliver
poor results. Sometimes, despite ourselves, we end up making decisions
that actually run counter to our interests! And sometimes we make
self serving decisions that sabotage us in unexpected and enormous
ways down the line.
Behaviorists have demonstrated that when confronted with choices
that involve uncertainty (like most big decisions that give us pause)
people regularly employ heuristics – rules of thumb or mental
shortcuts—to simplify and oversimplify decisions. Our choices
are routinely skewed by a whole closetful of biases that cloud our
judgment.
Here are the most common traps to be alert for:

When you don’t take the time to frame your decision intelligently,
you can set out to solve the wrong problem because you have an inaccurate
framework for your decision. A poor frame can cause you to overlook
the best options or lose sight of important objectives.
Ask yourself: What is the problem? What do I (we) want? What
will a good decision accomplish?
Consciously or unconsciously we drag a problem into our comfort
zone cleverly enabling us to avoid big changes in thinking or behavior.
In the trap of the comfort zone we tend to do what comes naturally
instead of what is important. We hang on to false beliefs and fail
to learn even with strong evidence.
Ask yourself: What is my comfort zone in this situation.
Am I twisting information to match what is easiest for me? If I
were to step out of my comfort zone what different kinds of choices
would be possible?
People are susceptible to distorting their judgments in order to
look good and get ahead and fulfill personal ambitions. This self
serving bias motivates people to reach conclusions that favor them.
The motivational bias trap can cause us to escalate our commitment
to a given decision to protect an earlier choice—this is the
‘throwing good money after bad phenomenon.’ Studies
have shown that people are generally reluctant to accept a sure
loss, and therefore are willing to make unsound bets in the hopes
of breaking even. This decision trap can cause people to seek evidence
that confirms their own bias while ignoring information that contradicts
it.
Ask yourself: What would a person unaffiliated with this
situation say about the information I have been given? What is it
that I truly want from this situation? In the short term if I make
decision X what are my potential gains and risks. How about in the
longer term?
Perceptions are distorted because of the way our brains sense and
process information. For example, people tend to significantly overestimate
what they know—this leads to decisions made on guess-work,
faulty premises and overconfidence. Another way that information
gets distorted by our brains is that we tend to anchor judgments
on information that is easiest to recall—recent information,
dramatic information, information that tugs at our heart strings,
even ‘official’ information which is often heavily leaded
with its own set of motivational biases.
Ask yourself: On whose information am I anchoring my decision?
What kind of research/additional data will enable me to be certain
that I am starting my decision process from an intelligent and non-biased
place? If I were really honest with myself, what can I say with
confidence that I am certain of in this situation?
Casual reasoning can lead us to incorrect conclusions and yet we
often simplify inappropriately, substitute relative comparisons
for absolute measures and allow easy-going conversation about a
decision to take the place of vigorous and rigorous thinking. When
it comes to uncertainty few of us are able to reason with logic
— we form false beliefs based on random and explainable effects,
we try to solve complex problems in our head instead of working
out decision trees and probable outcomes on paper.
Ask yourself: What is measurable here? How can I put the
choices I am weighing on paper so that I can logically evaluate
possible outcomes? (If you’re not familiar with decision trees
and simple probability check out this web article which will walk
you through the basics): http://www.mindtools.com/pages/article/newTED_04.htm
Even though many of us feel safer making decisions in groups (less
individual responsibility and the comfort of thinking together)
groups not only combine individual distortions but add additional
distortions that arise due to group dynamics. In groups people tend
to: jump to conclusions prematurely or get bogged down and fail
to reach consensus; be reluctant to voice dissenting opinions; believe
falsely that everyone agrees with the group decision.
Ask yourself: If I were alone and not pressured by the energy
of the group, what is the decision that I would make? Do I have
enough information to make an informed judgment? Does the group?
Is my group suffering from groupthink? Is coming to consensus the
same as making a good decision?
However much we might like to believe that we make important decisions
well, the truth is that we are human—bounded by our emotions,
driven by desires and likely to do insufficient research to clearly
understand the situation we are assessing as fully as we need to.
If you use these decision traps as a starting point for your thinking
around decisions that have big impact and enduring consequence,
you will make better decisions and have greater confidence in your
choices.

The
best leaders of all, the people know not they exist.
They turn to each other and say ‘We did it ourselves.’
~ Zen Saying
Dina
Silver, MCC, is the Principal of Pegasus Coaching Group.
I specialize in leadership coaching working with senior executives
and their teams to create great leaders and high impact groups.
I have enjoyed success working with technically proficient people
who need guidance in developing the interpersonal skills that are
essential to effective and compelling leadership.
My background in the entertainment industry as a feature film and
interactive game producer effectively assists me in helping leaders
develop powerful executive presence so that ideas and challenging
initiatives are met with keen interest and excitement. In order
to lead, people must be excited to follow!
I have enjoyed trusted advisor status with high performance individuals,
teams and organizations, coaching in high tech, entertainment, banking,
and marketing.
I hold a B.A. in United States History from Princeton University.
I am a Master Certified Coach (MCC) and hold my credentialing through
the International Coach Federation. In addition, I am certified
in a range of assessment tools including DISC and PIAV, and am an
active member of Professional Coaches and Mentors Association (PCMA)
and the International Coach Federation (ICF). I am married, have
two teenage kids, two fat black cats and live in Santa Monica, CA.
If you are interested in learning more about how my work may be
of value to you and your organization, please get in touch. I am
happy to offer interested prospects a complimentary and confidential
half hour coaching session so you can take me and coaching for a
test drive.

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