Are you working in an organization where leaders make good decisions? Are the leaders in your organization able to view a problem from different perspectives?
One of the most powerful questions one can ask oneself is “Am I able to view problems from different perspectives and create appropriate solutions?” Inspiring leaders make good decisions by being open-minded.
Are you able to avoid faulty thinking? Do you think about a problem before asking for advice from others? Are you able to make better decisions by getting input from others?
The Anchoring Trap
When considering a decision, the mind gives disproportionate weight to the first information it receives. Initial impressions, estimates or data anchor subsequent thoughts and judgments. In business, a common anchor is a past event or trend. While relying on such may lead to a reasonably accurate estimate of future numbers, it also tends to give too much weight to past events and not enough to other factors. Especially in markets with rapid changes, historical anchors can lead to poor forecasts and misguided choices.
Because anchors can establish the terms on which a decision is made, they are often used as a bargaining tactic by savvy negotiators.
The Antidote
Anchors affect how managers, accountants, engineers, bankers, lawyers, consultants, stock analysts and virtually all professionals make decisions. No one can avoid their influence. But managers who are aware of their dangers can reduce their impact by using the following techniques:
• Always view a problem from different perspectives. Try using alternative starting points and approaches rather than sticking with your first line of thought.
• Think about the problem on your own before consulting others to avoid becoming anchored to their ideas.
• Be open-minded. Seek information and opinions from a variety of people to widen your frame of reference.
• Avoid anchoring your advisers, consultants and others from whom you solicit information. Tell them as little as possible about your ideas and estimates. If you reveal too much, your preconceptions may simply come back to you.
Working with a seasoned executive coach trained in emotional intelligence and incorporating leadership assessments such as the Bar-On EQ-i and CPI 260 can help you become a leader who makes good decisions. You can become a leader who models emotional intelligence, and who inspires people to become happily engaged with the strategy and vision of the company.
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