No one has ever rolled out of bed, poured themselves a piping hot cup of coffee, and declared boldly to the world, “I’m going to make a whole load of bad decisions today.”
We all make mistakes. To err is human, and as leaders, to make a bad decision has bigger consequences than simply being embarrassed. We steer the ship, and when we chart a course in one direction, we’re bringing everyone with us, even if that means sailing into the raging storm that’s just over the horizon.
Not all bad decisions are avoidable, but we’ve identified three important things that tend to cloud judgement and push us down the wrong road. These include emotional, informational, and interpersonal that exists outside of a single problem and solution. Instead, they are typically reactive behaviors that manifest in many of our habits and pervert our day-to-day thoughts. We can’t get into the full psychology of these issues, but it’s worth working to apply these filters across the board, even when you’re walking up and sipping that first cup of coffee.
Imperfect Information. Too often, we take some kind of data and quickly make assumptions. It’s the classic ‘if/then’ thinking pattern. When the biggest decisions need to be made, we need to focus first on the problem. Is this all the information we have available? What is its source? Is there data that may conflict with this information? How does this data compare to older sources, or to information of our competitors?
To put it simply, just because your windshield wipers won’t work doesn’t mean the motor is broken; maybe instead of a $250 part, your solution is a $7 fuse. Evaluate your information and the problem even more closely than you measure and evaluate any potential solution.
Emotions. We all have emotional biases and tendencies. Even the penchant of some leaders to make decisions completely without emotion is, in fact, a decision that doesn’t incorporate an important element of a business’ direction, image, and its very soul. Most often, emotional decisions in the workplace come down to ego. We either want credit, or don’t want someone else to take credit. We feel the need to be right or, equally common, we abhor the idea of being wrong in the eyes of others. How we communicate and evaluate a problem often sets us up for emotional decisions.
One technique is to ban the “I” pronoun in meetings, especially when discussing a particular problem and measuring solutions. When it’s not one person’s thought or plan, it must be everyone’s. Using “we”, “us”, and other inclusive terminology can reduce tensions and remove the feeling of ownership when presenting a solution. You might find that some team members have a very hard time taking themselves out of the conversation; stay positive, and encourage a shared approach.
Pattern Recognition. This is often the toughest bias to fight off in decision making because it asks us to reduce not our instincts, but our experiences. Leaders have a tendency to forecast what happens next based primarily on what they’ve seen happen before. Right now, many business leaders are looking to their practices and policies from the 2008 financial crisis as the blueprint for surviving the current pandemic. From slashing marketing budgets, reducing operating expenses, and essentially instilling a sense of austerity, they’re taking what happened before to handle what comes next.
This problem is markedly different; lending rates are exceptionally low, financial institutions have remained incredibly strong, and unemployment has affected very different industries and occupations. Instead, many businesses should be investing in digital infrastructure and a robust online presence, not slashing budgets to essentially “hold tight”. While experience certainly matters, acknowledging new patterns to tackle new problems is much smarter.
Leaders will make mistakes. No one can predict the future. However, we can reduce the frequency at which mistakes are made by changing the processes by which they are shaped. One final tip for making a tough call; ask your team. As we’ve said many times before, your primary role as a leader is to surround yourself with smart, talented people and put them in a position to succeed. When things get tough, the answer should already be logged into your Zoom call.