Awareness of thinking traps in decision making

 Awareness of thinking traps in decision making 

(Emotional Management for Personal & Professional Growth Series)

As we have discussed the different types of thinking traps that affect our decision-making process, let us summarise the thinking traps and their influence on our decisions.

• Except for routine activities, most of us have decision dilemmas in all business decisions.

• We generally assume that we are logical thinkers and equipped with tools and techniques for decision-making. However, research says that despite all the resources on the rational decision-making process, we are unconsciously trapped into thinking bias which affects the quality of decision making, particularly in complex business decisions.

 
Some of the thinking traps we have discussed with examples are
 

• Giving excess weightage to the first information
• Maintaining the status quo even though it is not relevant now
• Seeking confirmation evidence for our initial thought from people who are favoring us
• Not clearly defining the problem itself
• Judgement trap either overconfidence or underestimating.

 
In every stage of the business decision-making process, we have more stakeholders, more assumptions, and inputs coming from different ends, leading to misperception. This bias influences our choices or decision-making quality.

Some of the above thinking traps can work in isolation, or they can work in combination.

For example, we give more weightage to the first information we receive, believe it true, and seek confirmation from the people in favor of our initial thinking. Then we take some decisions that will become status quo. We stick to it as our sunk cost mentality will not allow us to detach ourselves from our earlier decisions and finally get into the trap of living with the pain of our decision.

The only protection from the different thinking trap is AWARENESS.
 
Even though we cannot avoid the inputs/assumptions from different stakeholders, we can build tests and be disciplined enough in the decision-making process, which will help to get into the trap. That needs a step back and challenge our thought process while making decisions in important events.

More we take unbiased choices without a trap, our confidence improves.

It is easier said than done; however, it needs awareness and practice to take the unbiased, right decisions in a complex business environment.

Have a great week ahead.