The Brain Science of Bad Decision Making
Are you working in a company or law firm where executive coaches help leaders become more capable decision makers? Does your company or law firm provide executive coaching and leadership development for high performing leadership talent?
One of the most powerful questions you can ask yourself is “Do I have safeguards that red-flag conditions that may lead to bad decisions?” Emotionally intelligent and socially intelligent organizations provide executive coaching and leadership development for leaders who make decisions at all levels of the organization.
Safeguards
The brain’s way of working makes it particularly difficult to correct our own mental processes. Like a goldfish in a bowl, how can we know we’re wet?
When no red flags exist, the decision-making process can be fast and simple. When we spot red flags, we can design appropriate, effective safeguards that are less likely to demotivate everyone involved in the decision process. We enjoy targeted processing, instead of suffering increased bureaucracy and time-consuming conflicts.
Safeguards reduce the risk that red-flag conditions will lead to a bad decision. While it may not be possible to eliminate all risks, we can greatly improve the odds of making sound decisions with fewer mistakes. Four types of safeguards counterbalance and defend against errors:
1. Experience, Data and Analysis: In business, there are many ways data can be collected and experience broadened. Discussion with key customers can provide valuable feedback. Consultants can be hired to offer objectivity and outside perspectives.
2. Group Debate and Challenge: The process of debate can help expose assumptions and beliefs. It’s vital to choose the right participants, as the group must identify appropriate challenges that meet organizational goals.
3. Governance: It may be necessary to set up a separate governance team if one doesn’t exist apart from the decision-making team. The new team should be designed as a vital backstop to stand in the way of any flawed judgments that make it past the decision team.
4. Monitoring: The monitoring process tracks the progress of the decision. Awareness of monitoring encourages decisions makers to think carefully before making their recommendations. If decision makers know the outcome will be recorded and publicized, they will be motivated to think—and rethink—their positions.
Monitoring offers a quick solution to a bad decision. Early progress reports let you know if course corrections are needed. Monitoring can catch any problems the first three safeguards miss.
Identify Biases and Implement Safeguards
Most large organizations already have structured decision processes with built-in safeguards, which were likely implemented to correct past mistakes. Decision processes, however, must be tailored to flag conditions that may distort perceptions. By identifying biases, we can select specific safeguards that target our cognitive and emotional vulnerabilities.
There aren’t any foolproof guarantees against bad decisions. Life’s complexities ensure we’re never going to get everything right. Keep these summary points in mind:
• It’s possible to improve your decision-making abilities and continually grow.
• There are specific, identifiable steps you can take to prevent bad outcomes and reduce your risk of making bad decisions.
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 company leaders develop safeguards to red-flag poor decision making. You can become a leader who models emotional intelligence and social intelligence, and who inspires people to become fully engaged with the vision and mission of your company or law firm.
I am currently accepting new executive coaching and career coaching clients. I work with both individuals and organizations. Call 415-546-1252 or send an inquiry e-mail to mbrusman@workingresources.com
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