The Strength of Making Decisions in Teams (Decision Series 8/8)

Every organization consists of teams that face grave challenges – how to innovate faster, build better relationships with clients, respond to competitive threats, decide which products to invest time into and which ones to abandon. How do you decide the best direction?

Here are some tips that help teams make the best decisions together:  

1. Get on the same page.  In 1999 NASA had a mission to study the climate on the planet Mars.  After 10 months of travel and 125 million, the spacecraft burned due to a navigational mistake, which was entirely preventable.  It turns out, multiple teams were working on the project, one group used the metric system, while the other used inches, feet, and pounds.  Some of the smartest people forget to check that both teams were using the same unit of measurement, and the consequences were catastrophic.  Before you embark on the decision-making process, take some time to cover the basics, get the small details right, and properly understand the problem before deciding on something and be sure to level set on the expectations, processes, and tactics.

2. Take time for independent thinking.  Spend some time individually to consider the problem and solutions so your ideas are not heavily influenced by anybody else’s.  This will allow for more variety in creativity and innovation because there will be an even larger pool of plans in which to choose. A common mistake that many people make is that they may share their idea with their teammate and then ask for their opinion, but they have already tainted the person’s thinking and may create an environment where the person does not want to disagree with you, especially if you are the boss. This is why as a leader it is important to go last so you can hear as many raw ideas as possible for you to share your perspective.

3. Share in small groups.  Form a series of small groups of 4-6 people within the larger team so all opinions can be put on the table and a consensus can be reached on the best way that the team can solve the problem.  According to a Ted Talk by Mariano Sigman, a leading figure in the neuroscience on decision-making space, he shows how crowds are wiser when they can talk to other people in small groups.  He ran an experiment where people provided an answer to a question about how tall the Eiffel Tower was and then they had a chance to discuss and debate.   The result was that the average of the group was more accurate than the average of the individuals.

4. Share in big groups.  Have a big group discussion where each team presents their ideas and then gets outside perspectives.  It allows you to go for a “robust average”  which gives a rough estimate of all the members’ answers while discrediting outliers. The old saying, “Two heads are better than one” is most true when you can extract each person’s untainted thinking first and then combine it with others to form even deeper insights.

5. Time for thoughtful disagreements.  If three groups within the team put forth their ideas, they can exchange in the thoughtful back and forth, while others can ask questions for clarity and provide a challenge to the ideas.   When you engage in quality discussions, people’s thinking can evolve and the best collective decision can be reached.   Ray Dalio uses a technique like this.  His goal is to attain an idea meritocracy, where the best ideas win out and have nothing to do with politics, personalities, status, or other influencers. 

6. Decide on a tiebreaker. You may have strong ideas, energy, and evidence for two dominant positions, but in the end, you need to decide once you have carefully considered all sides of the discussion. Usually, when there is a deadlock in ideas, the leader should weigh in and break the tie. However, use the approach that works best for your team, if it is strictly by consensus, you can opt for that method.

7. Disagree and commit. Used widely by Andy Grove and Jeff Bezos, they believed that once a decision has been made, regardless if it was yours or not, as a team player, you need to be behind it and hope for its success rather than being indifferent or worse, aiming to sabotage the idea.

8. Use timeframes. To facilitate the decision-making process, it is helpful to use timeframes. For example, maybe you allocate a week for the first phase which is about gathering information and discussing openly. For the second phase, you can allocate the necessary time to make the decision. Without timelines, you could get stuck in endless discussions and fail to move to the execution phase.

There are many techniques that you can use to make the best group decisions. By having clear processes that allow each person to contribute their best input, hard decisions become a little less hard.

Quote of the day: "My opinion, my conviction, gains immensely in strength and sureness the minute a second mind has adopted it." -Novalis, German Author and Philosopher

Q:  How do your teams make decisions?  What processes do you use?  Comment and share below, we would love to hear from you!

As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

 

What’s the best way to make group decisions?

What’s the best way to make group decisions?

What Comes After You Have Made a Decision? (Decision Series 7/8)

Congratulations, you have taken careful steps to make the decision that is right for you.  You got clear on your values, utilized effective informational and creative strategies, followed systems, and took action.  Now what?

Depending on your goal, whether it is about improving your decision-making skills, enhancing your current situation by reversing the decision, or just enjoying your peace of mind, you may consider the following:                                                                                                     

1. Reflect.  If you are interested in improving your decision-making abilities, carve out the necessary time to reflect.  After the choice, monitor it.  What is working?  What approaches, criteria, metrics, and systems did you use that were successful?  What did you overlook and may want to include next time you choose?  Mark Twain described the complicated nature of decision-making as follows: “Good decisions come from experience, but experience comes from making bad decisions.”  This is not to say that the only way to become a great decision-maker is to make a ton of mistakes; it just means that it is important to keep past decisions in the front of your mind to capitalize on the learning moment.

You can also do long-term reflection. You can do an annual review by asking - what was your best and worst decision you made last year? How do you know they were your best or worst? To answer these questions, most people follow a concept that Annie Duke describes as “resulting” - a decision was good if the outcome was good, but that is an incomplete way to evaluate. Just because you got home safely after drunk driving does not mean you made a good choice to jeopardize your life and the lives of others. Instead, what you can do is map out a few other choices you could have made and then evaluate them against the choice that you actually made. What did you wish you would have known at the time, how could you have found out that information, what will you do differently next time? Asking these kinds of questions will improve your decision-making processes.

2. Choose to reverse a big decision.  We think that when we make a selection, we have lost all agency, but we can always choose to course-correct if we have given it enough time and decided with all our minds and hearts that it is not right for us at this time.  Decisions are not permanent sentences and when we can get creative about having the confidence to tweak our choices or even reverse them, we can attain more happiness.

3. Enjoy the peace of mind of making a small, lasting decision.  Making some irrevocable determinations can bring more happiness.  Daniel Gilbert ran a study where at the end of his photography course, students had to choose which photo of the many to keep.  Group A was told that if they changed their mind later, they could swap the photo.  Group B was told their choice was final.  You would think that many people were happy in the first group because they preserved their options, knowing they could always trade their photo.  The study found that when people made an irrevocable decision, they rationalized it easily move forward.  Once something is gone forever, the mind gets to work, figuring out why what it has is better than what it lost.  But when a decision is irrevocable, you ruminate and think, do I like this photograph, maybe the other one goes better in my living room, I should take it back and upgrade.  When it comes to smaller decisions, set yourself up for ones that do not leave you with an out, at the end of the day, it is just a picture.

Depending on your goal, there are things you can do after a decision is made.  If you are trying to be a better decision-maker, you can reflect on your choice and monitor how it works out and what you did well in the process leading up to the decision.  If you are aiming for happiness, you may choose to alter or reverse the selection.  If you are interested in attaining peace of mind relating to small decisions, you may want to make irrevocable ones.

Quote of the day: “All life is an experiment.  The more experiments you make, the better.”  -Ralph Waldo Emerson

Q: How do you reflect on your decisions once you made them to improve your future decisions?  What was your best and worst decision of last year? Comment and share below, we would love to hear from you!

[The next blog in this series 8/8 will focus on decision-making in teams.] 

As a leadership development and executive coach, I work with leaders to help them make hard decisions and reflect on their process, contact me to explore this topic further.

How do you make decisions that make you  proud?

How do you make decisions that make you proud?

As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

Systems For Better Decision-Making (Decision Series 6/8)

To what degree do you think our decisions determine our lives?  Should we stay in a city we have known and enjoyed for a decade-plus or move elsewhere to shake things up? Take a high visibility job with additional responsibilities or focus more on enjoying a balanced and relaxed life? Know when it is time to quit our side hustle or persist? To be human is to be jostled by choice.  I have found that to have an edge in decision-making, we want to have a few systems in place to better guide us.

Here are some helpful systems to consider when we are contemplating making big decisions:

1. Expand your time horizons.   Suzy Welch, a former editor at the Harvard Business Review recommends conducting a 10-10-10 analysis.  For every choice we’re considering, ask ourselves: how will I feel about having done this 10 minutes, 10 months, 10 years from now?   This tool helps create psychological distance when you expand the time horizon and imagine how we would feel in the future.  A challenge we have when making a decision is the emphasis we place on immediate emotions so we avoid doing unpleasant things like asking for a promotion or breaking up with our partner because we may be blinded by the short-term fallout.  By considering how we will feel in the future, we can reduce the intensity of our current emotions and make sounder decisions.  You only have to deal with the short-term once, but the long run for the rest of your life.

A similar idea is to think about 2nd and 3rd order consequences or the downstream ramifications of your actions, which are not always obvious at first. You can decide to take up running and endure the initial pain of working out for the medium-term benefits of getting in shape and feeling great. You may also look further ahead to consider the joint pains you might incur from running on the pavement so perhaps you will want to have a plan to switch to a less impactful exercise such as yoga or swimming at some point since it will be lighter on your body but still help you attain your goal of healthy living. It is about being mindful of the long game.

Ask yourself, what advice would I give my friend.  Another way to gain distance from the problem is to imagine that your friend told you the same dilemma, what would you tell them to do?  This approach can help because when you picture yourself not involved, those highly charged emotions reduce their intensity.  You can see the problem more clearly for what it is minus the strong feelings.  Andy Grove, the former Intel CEO had a similar technique he used, which was to ask the question, “If I were replaced tomorrow, what would my successor do”?

2. Run an experiment.  In Stumbling Upon Happiness, Daniel Gilbert asserts that when we are thinking about making a decision and factoring in our happiness, we tend to be pretty lousy at predicting what will make us happy.  We may think to ourselves, “once I move out of the city and to the suburbs, it will be quieter, I will not hear the ambulance sirens, trucks, and unrelenting construction disturbances.”  But when we do it, we realize it is boring, we do not like it, and in fact, those background noises provided the occasional rushes. So, the best thing to do is to conduct small experiments.  Spend weekends or months simulating how we would be living.  If moving also means a job change, testing the assumption while we have a paycheck is most helpful because we will have an exit plan.

3. Do a pre-mortem.  It is human nature to strategize an approach and formulate all the ways we will be successful, but few people talk about what could go wrong.  The pre-mortem considers what failure would look like before even beginning the project.  This approach could have come in handy during the British colonization of India when officials were concerned with the number of venomous cobra snakes in Delhi.  To solve the problem, the government gave cash for every dead cobra.  While the plan was initially successful, ultimately it was a failure because they did not think about all the entrepreneurs who got into the business of breeding snakes to generate additional income.  When the government scrapped the idea, the cobra breeders let the snakes loose, and the population blossomed.  The solution was worse than the problem, and with a proper pre-mortem, maybe this could have been prevented.  It could be helpful to invest in the upfront time to generate a list of the ways a solution can fail.  A good question to ask to kick off this inquiry is: If this decision was a debacle one week, one month, or one year from now, what would be the causes of the failure?

4. Take a break.  When we find ourselves mulling over a decision and we feel like we have expended all our energy, hit pause.   Either do something else you enjoy like going for a run or playing catch with your kids or simply allow yourself to be bored so you can review the problem in new ways.  Einstein turned to his violin whenever stuck.  Woody Allen changed rooms and took multiple showers.  Beethoven took hour-long strolls.  When you get distance from the problem and do something completely different, you broaden your focus.  Author Ron Friedman says, “It’s only then, when you have some distance, that loose connections suddenly appear, making creative insights more likely.”  Our brain continues to mull over unresolved problems, even when we turn our attention elsewhere, and we can bring that additional insight into making better decisions.

5. Time-box your decisions.  Once you have gathered your information, instead of waiting for the moons to align, give yourself a window of time to make up your mind and set a date because then you will be more motivated to act.  In an article in the Harvard Business Review, Mark Chussil, Founder of Advanced Competitive Strategies, recounts wise words from his friend who said, “you should not spend your life making up your mind because things change, values change, and dreams change.  What broke your heart or made your day at age 25 is inconsequential at age 45.”  If the issue on the table has been reasonably vetted and the choices are equally attractive, it is time to decide, take action, and break the impasse. That dreaded feeling of being stuck could be corroding other areas of your life and draining your energy.

6. Avoid decision fatigue by automating.  Some decisions are minor, like what to eat and what to wear.  Others are more difficult, like deciding between two job offers; if you should move to a new country for someone you love; if you should cut a toxic friend out of your life, even though you share a rich history.  With so many decisions taking up your day, when you can turn the small ones into a routine, you can save your mental resources for the complex decisions.  It is the reason why Steve Jobs wore black turtlenecks, and Mark Zuckerberg dons hoodies.  Both men have stated that these decisions are the simple result of daily routines intended to cut down on decision fatigue.  Barack Obama said, "You'll see I wear only gray or blue suits. I'm trying to pare down decisions. I don't want to make decisions about what I'm eating or wearing, because I have too many other decisions to make."  Routines can prime your mental state for the best decision-making.

7. Make one big decision at a time.  Some people try to make 2-3 decisions at once.  How about just making one, waiting, and then seeing how the landscape changes.  You do not need to solve everything before you take action.  Similar to riding a bike, it is easier to steer and make turns once you are moving.  We cannot plan life just from the sidelines; we need to participate and adjust on the go.  Is there one decision you can make that can be a lead domino for three others?

8. Make decisions in advance.  When you decide now how you will act in the future, you set yourself up for success.  For example, if you want to go for a run in the morning, you can lay out your clothes in advance and be mentally prepared to know that you are going first thing in the morning.  You do not have to think about it at the moment when you may be sleepy and unmotivated.  With advanced planning, you can even anticipate the fatigue that you may feel, and how you will overcome it.

9. Aim for 80% or a good enough choice.  Many things we can be deciding on could relate to wicked problems with changing requirements that are often hard to recognize and numerous unintended consequences. Even with all the best research and strategies, there will always be information that eludes us.  Steven Covey says that trying to be perfect prevents action.  If you feel about 80% confident in your decision, go for it.  Any difficult decision may not be ideal, but we can go for a good enough choice. Choices are made depending on the estimation of how things will be in the future, but the future is ever-changing so decisions made today can be based on faulty information. In that case, it could be helpful to choose a direction rather than a destination because you become open to the possibility of adjusting as you go to better match the realities you will be given.

10. Examine tradeoffs.  Ray Dalio, Author of Principles said, “I learned that if you work hard and creatively, you can have just about anything you want, but not everything you want.  Maturity is the ability to reject good alternatives to pursue even better ones.”  When faced with a choice between two things that you need and that are seemingly at odds, try and figure out how much of each you can get and know when you say no to one thing, you can say yes to another in which you are more enthusiastic.

11. Avoid indecision.  When we are in the deliberation stage, we have stress and anxiety, but when we move into phase two of pulling the trigger, our mind moves into action mode; it convinces us that the thing we have is better than the thing we left behind.  We sometimes wonder, after the fact, how we were even having a tough time deciding in the first place.  The energy you save by not deliberating pointlessly will be useful for other things, so put a timer on your decision and go for it.

Hard decisions are hard when we are in the process of making them, but after that, it is just life.  When we have systems in place to help us with decision-making, we can find ways to make the process a little less strenuous on ourselves, so we can spend more time in action with the things we love, and less time stuck in deciding.

Quote of the day: “[People are] born to live and not to prepare to live” - Boris Pasternak, Russian Poet

Q: What is your favorite system that you rely on for good decision-making? Comment and share below, we would love to hear from you!

[The next blog in this series 7/8 will focus on the aftermath of a decision.]

As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

What’s your system for making decisions?

What’s your system for making decisions?

Use Your Head and Heart for the Best Decision-Making (Decision Series 5/8)

How wise are you at making decisions?  In choosing, do you rely more on cognition or intuition?  While some people would advocate for the evidence-based, logical approach, others would endorse the way of emotions and gut instinct.  Who’s right?

Let’s take a closer look at each:

For some people, rationality is the easy answer.  When entangled in a decision, they may make a long list of pros and cons, weigh their choices against a pre-determined set of criteria, evaluate their options objectively, step back, and decide.  After all, isn’t the Prometheus gift of reason precisely what separates humans from other animals, so shouldn’t we rely on that?

Plato has a great metaphor of the mind; he compares it to a charioteer controlling horses, which are representative of our emotions.  The best people or the Philosopher Kings in his time were the ones who kept the tightest reigns on their emotional horses, which can be impulsive and impetuous beasts that lead us astray.  Simply distilled, reason is good, emotions not so much.

The problem with rationality is that it can be faulty.  In Thinking Fast and Slow, Daniel Kahneman discovered cognitive biases, showing that humans systematically make choices that defy clear logic. He explains, “When humans are left to their own devices, they are apt to engage in several fallacies and systematic errors.”  To be better at decision-making, we need to be aware of these biases and seek workarounds.

In Favor of Emotions 

Those who love to be steered by their emotions in deciding would say that it is the superior method.  Our emotions are wise, especially when we have a good relationship with them.  We can recognize when we are in a bad mood and might lash out at others who are simply trying to help, or when we are feeling overconfident and might take more risks.  We have gut instincts, and when we listen to them, they can guide us carefully and diligently.  We already know the answer or at least one version of it because it is the accumulation of our memories and experiences, revealed unconsciously at speed.  So much of what we believe and do is driven by the unconscious; it is rooted in emotions that we sometimes cannot articulate, yet strongly feel.

In Johan Lehrer’s How We Decide, he recounts a story of Michael Riley, a radar operator in the British Navy during the Persian Gulf War.  On his second day, he picked up a blip on his screen, which could have been an incoming Iraqi missile or an American Fighter Jet, even though the two signals looked identical.  In seconds, he had to decide to receive a potential strike or destroy his fellow brothers.  He fired two missiles and single-handedly saved the battleship.  Initially, he could not explain why he felt confident that it was enemy fire.  It was not until years later that he discovered how he did it – that he unconsciously picked up a subtle discrepancy in the timing of the radar signal.  When we listen to our gut, we are rightly guided.  As explained by John-Dylan Haynes, a Cognitive Neuroscientist at the Bernstein Center for Computational Neuroscience in Berlin, “the unconscious brain is intelligent enough to select the best options.” 

While our emotions can be inexplicably powerful, there is a problem when we solely rely on them to guide our decisions.  This old saying rings true: “Don’t make permanent decisions based on temporary emotions.”  When we are overwhelmed by passions, it can cloud our abilities to make clear decisions.  Believe it or not, most managers are not good at even recognizing their emotions, let alone not being consumed by them.  TalentSmart has tested more than a million people and found that only 36% of us can accurately identify our emotions as they happen.  If we are unaware of our feelings or cannot properly label them, we may not be able to use them to our advantage.

Reaching the nexus of thought and feeling

The secret to good decision-making is to harness the power of both our cognitive and instinctual forces.  The world is a complex place, especially for any one-purpose solution, so how we decide should depend on what we are thinking about and in what context.  

You can cycle back and forth between cognition and emotions.  For example, we may start with cognition to analyze data, make a pro and con list, assign weight to each aspect, analyze charts and patterns, and then use the emotional and intuitive side to see what feels right.  After the passage of some time, we can step back into the rational mode and see how those feelings impact the way we are looking at the decision.  Finally, after some more thinking, we can check back in with our hearts. This neurological see-sawing can be most effective because usually when one side of the brain is activated, the other side is turned off so it forces us to have a more comprehensive consideration. For example, you may just be thinking logically when you want to fire your employee because sales are down dramatically and you need to cut costs. But how can you tap into the emotional side and be thinking about the person’s livelihood? If you decide the layoff is the right way to go, you can be sure to let the person go with grace and compassion and provide support as the person journeys to their next endeavor.

We have wisdom deep inside of us that we can access to guide our decisions when it most counts. 

Quotes of the day: "The essential difference between emotion and reason is that emotion leads to action while reason leads to conclusions." -Donald Calne, Canadian Neurologist

"Emotions have taught mankind to reason." -Luc de Clapiers, Marquis de Vauvenargues, French Moralist and Writer

Q: In making a decision, do you allow more of your emotions or reasoning to guide you?  What process do you put in place to cycle between the two to get all their benefits?  Comment and share below, we would love to hear from you!

[The next blog in this series 6/8 will focus on exploring systems for better decision-making]

As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

How do you utilize both sides of the brain for the best decision-making?

How do you utilize both sides of the brain for the best decision-making?

The Art Of Using Creativity In Your Decision-Making (Decision Series 4/8)

We make thousands of decisions each day, and we are always looking for an edge, a specific way to improve our decision-making abilities so we can have more life satisfaction.  

One way to improve our information strategy for better decision-making is to get creative about the problem.  Here’s how:

A. Challenge the limitations.  Matthew Confer, VP of Strategy at Abilitie offers a tip before deciding to challenge the constraints.  He argues that too many teams jump into solving a problem without first considering it.  He recommends starting by thinking about what barriers are holding you back and then see what is possible. At Sandford, students in an entrepreneur class were given $5 and a challenge to turn it into the most money possible and then present their ideas in the following class.  The winning team did not even use 1 cent; they sold the rights to their presentation to a company in town who were happy to pitch to Stanford students to recruit them post-graduation.  They challenged the constraints of that 5 bucks and maximized the real opportunity, the presentation.  Next time you are deciding, how can you question the limitations before you even begin?

B. Reframe the decision.  Sometimes a tweak in the wording of the question can jolt a new way of thinking.  Going from, “What can I do to cause the outcome I want,” to “What are the best and worst outcomes I can expect” can lead you down a more creative path.  You can also think “AND” not “OR.”  If you are contemplating a career shift, you might keep your current job AND volunteer a few hours somewhere else to gather more data before pivoting too hastily.

C. Consider the opposite.  This approach helps you think about the problem differently.  For example, if you are struggling to decide who to hire and are leaning toward one candidate, consider why that person is not the most appealing option.  If you are thinking about Iceland as your next place to visit, make a quick list of why this will be a bad idea and this step will lead you to more research in addressing those concerns, and ultimately more confidence in your decision.  

Another way to employ creativity for better decision-making is to find the sweet spot between widening and contracting your options.

A challenge with decision-making is that sometimes we can think in binary terms, especially when we are overwhelmed with emotion, our thinking becomes more rigid.  I get married or a breakup; I move to NYC or I stay in the suburbs.  When we expand our options to a manageable amount, it changes the problem and can enable us to decide more confidently.  To reach this end, we can think about the following: 

A. Create a Top 10 list of your best options.  Once generated, you can compare and contrast to spot patterns.  You can then narrow your choices to 2-3 by cobbling together the best features from the alternatives.

B. Crowdsource.  If you are trying to expand your choices, tap into the power of the collective.  In 2008, Starbucks created “mystarbucksidea.com,” a submission website where anybody could send their ideas.  About 10,000 ideas were submitted and 100 implemented, including a free beverage for every pound of coffee, unlimited brewed coffee, and free coffee on birthdays.  Sometimes when we are so close to the problem, we can be blinded by love and emotion, but when we invite outside views, we get ideas we could have never imagined.

C. Scrap your options.  You can throw out the current set of selections and create a new list.  Maybe you have an employee who is excellent with administration work but not socially friendly; binary thinking would be – fire her or deal with the mountain of paperwork, or keep her and deal with her social challenges.  You can throw those options out and come up with new ones.  What if we moved her away from interacting with others and just had her doing administration work and allowed the rest of the team to contribute one day at the front desk so they can be closer to the work by interacting with the customers?  What if you partnered her with somebody skilled with social interactions so she can learn from excellent examples. What other options are there to consider?

D. Contract options.  As the Paradox of Choice goes, the more alternatives we are given, the less satisfied we become with what we choose because we are aware of all the other opportunities we are forfeiting.  Once we have gone wide, we want to narrow down our options to a manageable amount – usually 3-5. 

To help with decision-making, you want to get creative about your strategy.  This may include challenging the constraints, reframing your options, or finding the sweet spot between widening and contracting your decisions. 

Quote of the day: “We are the creative force of our life, and through our own decisions rather than our conditions, if we carefully learn to do certain things, we can accomplish those goals” —Stephen Covey.

Q: How do you apply creativity in your decision-making? Comment and share below, we would love to hear from you!

The next blog in this series 5/8 will focus on the role of the mind and the heart in decision-making.

As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

How do you apply creativity to decision-making?

How do you apply creativity to decision-making?

Enhance your decision-making with strategy (decision series 3/8)

When you are thinking about a big decision, how do you decide?  What information strategy do you use?  Once you have done all the work in clarifying your values, style, and optimal energy state, how do you utilize your external resources to be in a better position to choose? 

Here are tips to strengthen your information strategy:

1. Learn more about the things you do not know by tapping into the collective intelligence of others.

A. Talk to people in your network who made that exact decision.  If you are thinking about leaving a big corporate job to start your practice, find somebody who traveled that path, and learn those lessons.  People do some version of this all the time, think about right before you go to a restaurant, you will check the Yelp reviews and see how satisfied people were with the meals.  Approach it with humility, do not rely on what you think something will be like, ask a range of questions, such as what are my blindspots around this decision so you can get the information you have not considered.

In an interview, Harvard Professor Daniel Gilbert shared with Shankar Vedantam of Hidden Brain that some people might dismiss this approach due to the “illusion of diversity,” which is the idea that we think we are utterly unique, that other people's experiences might tell us a little bit about ourselves, but not very much.  Gilbert disagrees with this assertion because we are more similar than we think.  This concept of surrogation, seeing how others like something, and allowing that to guide us can be a constructive way to decide.  Even spending time on internet searches can yield powerful results.  According to a study in the New England Journal of Medicine, 58% of tricky clinical diagnostic cases could be solved using internet search and surrogation.  If your dilemma is more common, the chances increase. It could be good to aggregate the opinions of people who have made the decision you are pondering as a guide for what is right for you.

B. Tap extended networks.  Chip and Dan Heath offer this method - send an email to 5 people in your circle who are not close friends or colleagues.  Describe your dilemma and ask if they know anyone who might have some insights.  The goal is to enter different systems since most of your friends and close colleagues probably know each other and have linked associations.  Plus, you probably already know what they know through your conversations so you want to explore those weak ties for fresh ideas.

C. Seek contrarian perspectives.  When approaching a decision, we tend to pick something and then find additional information to support it, which is known as confirmation bias.  Based on one study in the book Decisive, when doctors were sure of their diagnosis, they were wrong 40% of the time.  In another study, when university students believed that they had a 1% chance of being wrong, they were wrong 27% of the time.  We have a false sense of certainty because we avoid evidence that challenges our entrenched beliefs. 

A great way to avoid confirmation bias is to seek outside opinions from people who bring different perspectives to weigh your options more objectively and spot your subjective or irrational tendencies.  Who do you know that you trust and is an entirely different thinker than you or somebody who could occupy a devil’s advocate role to tell you why your leading decision is wrong?  In her study of Silicon Valley firms, Kathy Eisenhardt found that the CEOs who made the quickest, most effective strategic decisions had a senior counselor who knew the industry well and could provide trustworthy guidance.  When asking those experts for advice on your choices, do not just ask them, “What do you think?” or “Do you like my idea?” How about asking disconfirming questions: “What’s the biggest obstacle you see to what I’m trying to do?” “If I fail, what would be the cause?”

D. Triangulate responses.  A chief enemy of good decisions is the lack of sufficient perspectives on a problem. 

Maybe you are considering taking your business into the European markets, how about getting three area experts committed to their right answers, and having them make their case.  You can listen to the discussion, triangulate their responses, glean lessons, and make more comprehensive decisions.  The quality of your synthesis can determine the quality of your decision-making. 

When it comes to decision-making, there are things we do not know (known unknowns), and then there are things that we do not know what we do not know (unknown unknowns).  When we can spend some time seeking out other resources, both in and out of our network, it can help us learn more about the challenge and make decisions more easily.

Quote of the day: "Stay committed to your decisions, but stay flexible in your approach." -Tony Robbins 

Q: When was the last time you sought out people in and out of your network to help with a big decision?  How did it go?  Comment and share below, we would love to hear from you!

[The next blog 4/8 will focus on utilizing creative strategies for better decision-making.]


As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

What’s your strategy for making sound decisions?

What’s your strategy for making sound decisions?

To Make Better Decisions, Start With Knowing Yourself (Decision Series 2/8)

How confident are you in your decision-making skills?  Which principles guide you most when choosing?

Part of the struggle that we have in making decisions is that we do not know much about ourselves.  By taking time to explore our values, decision-making style, and optimal state for making choices, we will be much better at deciding with satisfaction. 

Getting clarity about ourselves in these areas can make decisions easier:

1. Know your values.  What is your vision for life?  Have you put in the work to carefully articulate your value system?  How can those decisions get you closer to what you want more of and away from what you want less of?  For example, if you know you value having a career and are planning to start a family, how can you still be able to work part of the time because that will fulfill you and make you an even better parent?  The best decisions reflect our values, and when they are aligned, choices are more comfortable.  When we are caught up in a decision, we may have our emotions pulling us in multiple directions.  Successful people know how to stick to their values and trust their guidance during stressful events fraught with fear and doubt.

If it aligns with your values and creates excitement, go for it!  If it does not, do not do it.  When deciding to do an event or to put something in his calendar, Derek Sivers has a simple rule – it is either hell yes or no, nothing in between.  Is there a rule you can use to make this type of decision easier?

2. Know your style.  When it comes to decision-making, are you a maximizer or satisficer?  Maximizers seek the ultimate benefit or highest utility; they aim to make the most intelligent decisions possible.  Satisficers, on the other hand, are looking to make choices that they are minimally comfortable with, perhaps determined by more modest criteria.  The concept was first proposed by U.S. Nobel Prize-winning economist Herbert Simon who combined satisfying and sufficing as a way of describing this form of decision-making.  For example, suppose you are looking to purchase a TV, you might spend significant time reviewing many other TVs, comparing price and quality until you find the absolute best one on the market, determined by a set of criteria.  In contrast, satisficers will review a few options within a given time and then decide because they got something they can enjoy, and that’s enough.

It may seem like maximizers are the way to go because they aim for the absolute best option, but the research points to the opposite.  Satisficers will be more content with their decision, even if it is not the best they could have hoped.  In contrast, maximizers experience pressure from the high expectations they impose; they are more prone to doubt because they fear that a better choice is always out there.  They envision their life if they had chosen a different path.  Using this framework, which style are you, and how is it serving you to bring peace to your decisions?

3. Know your optimal state for decision-making.  Our mood, energy, and willpower significantly impact decision-making and are heavily influenced by these crucial factors: sleep, exercise, and diet.

A. Sleep.  When you experience deep restorative sleep, you can tackle a problem with fresh eyes and have the clarity to make sound decisions; otherwise, if you are sleep-deprived, you could be moody, emotional, and reactive.  When making a decision, Jeff Bezos talked about prioritizing 8 hours of sleep to make better executive decisions otherwise he will be tired and grouchy.

B. Exercise.  The stress of a significant decision naturally produces cortisol, the chemical that triggers the fight-or-flight response.  Cortisol clouds our ability to think clearly and rationally.  When we find ourselves stressing about a decision, we can exercise to recharge and refresh the mind.  As little as 30 minutes is all it takes to get an excellent endorphin-fueled buzz and return to mental clarity.  Exercise also helps you get past that fight-or-flight state by putting the cortisol to practical use.  Research shows that long-term exercise improves the overall functioning of the brain regions responsible for decision-making.

C. Diet.  Similarly, your decisions are likely to be sounder after a meal.  In a study led by psychologists at Columbia Business School, researchers found that judges were significantly more likely to issue favorable rulings when they made their decisions first thing in the morning or right after lunch.  But the longer they waited to decide after they ate, the more likely the judges were to deny prisoners parole.  The reason is because the more decisions we have to make over the day, the worse we get at making decisions.  We are prone to taking shortcuts when we are tired or hungry.  For a judge, it’s easier to deny parole than to do the mental work of having to think about whether bail is justified, so they took the easy route, which was to default to a denial.  

If we want to make sensible decisions, we want to be at our best, but that time of day differs for everybody.  In the book, When by Daniel Pink, he argues that our energy levels and cognitive abilities are not the same throughout the day but change in dramatic and unpredictable ways.  Some people feel their best in the morning and should choose that time slot to tackle complex decisions while others’ energy levels dip in the afternoon, and that slot should be used to make small decisions when fatigue is greatest.  When our willpower is low, we fall back to our default setting; it is why we go for chips over carrots and why the judges denied parole.  You can manage your willpower better by sleeping well, exercising, and eating healthy.

Part of being an excellent decision-maker is knowing yourself, which can include your values, style of decision-making, and optimal state for choosing.

Quotes of the day: “When your values are clear to you, making decisions becomes easier.” -Roy E. Disney

"The truth of the matter is that you always know the right thing to do. The hard part is doing it." General Norman Schwarzkopf

Q: When do you make your best decisions?  Comment and share below, we would love to hear from you!

[The next blog in this series 3/8 will focus on enhancing your decision-making with strategy] 

As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

 

You can get clear with how you decide

You can get clear with how you decide

Why are some decisions just so hard? (Decision Series 1/8)

Throughout our lives, we will make our fair share of difficult decisions - what school to attend, career to pursue, who to marry, where to live, how many children to have? And there will be infinitely more smaller daily decisions – what takeout to order, what to wear to an important event, which gym to attend, how much time should be spent on watching tv or reading and so on.

Indeed, our days can sometimes seem like they are filled with a constant stream of decisions.  A Columbia University survey conducted by Sheena Iyengar, a Professor of Business at Columbia found that we are bogged down by 70 conscious decisions a day. 

How do we handle all of those decisions, and more importantly, how satisfied will we be with our choices?  According to Dan and Chip Heath in their book Decisive, it is common for people to make decisions they regret.  When people decide to go to law school, there is a 44% chance that they will not recommend becoming lawyers.  When the Philadelphia school system examined teacher retention rates, they found that teachers were twice as likely as students to drop out.  Knowing that a lot of people regret their decisions speaks even more to the challenge of deciding well.    

Let’s explore 3 key reasons why decision-making is just so hard:

1. We lack a strong understanding of ourselves.  Believe it or not, many of us walk through life not knowing what is most important to us - is it love, money, family, learning, fun, exploration, or something else.  What are our core values?  Where do they come from?  Do we have those values because it is what we feel we SHOULD or MUST be emphasizing or it is because of what we genuinely want?

When we know our values, it becomes so much easier to make a decision that aligns with them. For example, you value family so when you are presented with a new position that involves a two-hour commute each way, you realize that your quality family time will drop significantly.  If your family value is non-negotiable, the decision becomes clear on whether to take the job.  When we make decisions that support our values, we experience less stress and more happiness. 

2. We have a faulty information strategy.  When you feel like you do not have enough information or are still really confused about a problem, what methods do you pursue to gather more data and broaden your horizons?  Believe it or not, people rarely consider more than two options when making a decision.  In a study led by Ohio State University Professor Paul Nutt, he examined 168 decisions of big organizations and found that 69% only had one alternative.  Two-option decisions lead to unfavorable results 52% of the time.  But when they considered more than two options, they had a favorable outcome of more than 66%.  When our information strategy includes only two choices, we feel trapped and fail to see all the possibilities genuinely available to us, and that can create struggle, stress, and lead to decisions in which we are not proud. 

We also do not want to overload ourselves with too many choices because then we would suffer from what Barry Schwartz labels a Paradox of Choice.  The more alternatives we are given, the less satisfied we become with what we choose because we are aware of all the other opportunities we are forfeiting.  For example, the American Scientist Sheena Iyengar looked at behavior in supermarkets and found that if there are too few choices, we do not like to shop there because we wonder if another place has more items.  If we have too many selections, we look but do not buy because we experience choice overload.  When it comes to low-level decisions like which cereal to buy, the right amount of items that the human mind likes to choose between is 3 and 6.  Of course, life is not a supermarket, especially when it comes to the monumental decisions we need to make so when do we know when we know enough? This question will be covered later in the series.

3. We lack decision-making systems to guide us.  Some people make decisions out of gut instinct, and while emotions can give strong direction, it may be an incomplete way of pulling the trigger because we could be blinded by short-term satisfaction over long-term value attainment.  Having processes and systems in place can help us take a more comprehensive approach.  Methods such as gaining psychological distance, conducting experiments, and running a pre-mortem will be explored later in the series to make better decisions.

Decisions are hard, and for a good reason; some of them can significantly alter our lives and happiness.  I must confess, I struggled with deciding how to organize this blog series, but once I took action, got clear in my values, utilized an effective information strategy, and relied on some of my trusty systems, things seemed to fall into place.  Here’s hoping that a little regret does not seep in later on.

Quote of the day: “Most of the problems in life are because of two reasons: we act without thinking, or we keep thinking without acting.” -anonymous

Q: What are some other challenges you notice with decision-making?  Comment and share below, we would love to hear from you!

[The next blog in this series 2/8 will focus on knowing yourself to make the best decisions.] 

As a leadership development and executive coach, I work with leaders to help them make hard decisions, contact me to explore this topic further.

How do you make tough decisions?

How do you make tough decisions?