Making Decisions That Matter

Principle

Meet Dan Ariely, a rockstar in the world of behavioral economics.

He's spent years studying why we do the things we do, especially when they make zero sense on paper.

For example, why do we go up for second helpings at a buffet when we are already full?

His book, "Predictably Irrational," explores the hidden forces behind our decisions.

Why does this matter?

Because it is crucial for leaders to optimize their decision-making processes in the face of human psychology's complex, often counterintuitive nature.

Ariely reveals that contrary to the classical economic theory positing humans as rational agents, our decisions are frequently anything but rational.

They are influenced by a myriad of unseen factors: social pressures, emotional states, and cognitive biases, to name a few.

Persisting in the belief of our infallible rationality—sets us up for a series of preventable failures and missed opportunities.

Professionally:

• Strategic missteps

• Ineffective policies

• A culture that undervalues critical thinking

Businesses might persist in using outdated models of consumer behavior, design products that don't meet real user needs, or fail to innovate.

On a personal level:

• Poor financial choices

• Strained relationships

• Unfulfilled life goals

Obviously, we want to avoid these at all costs.

So, what can we do?

At Work

1) Spot the Biases

First off, know the enemy.

Biases like favoring the familiar or going with the gut can mess up decision-making.

How to beat this?

Start meetings with a “bias check” – a quick run-through of common traps to watch out for.

2) Dissect Decisions

Got a big decision?

Break it down.

Why are we choosing this?

What are we missing?

Make this a habit, and you’ll dodge a ton of bullets.

3) Debate

Encourage your team to challenge ideas, respectfully.

It’s like iron sharpening iron; you’ll all get sharper, smarter.

At Home

1) Family Pow-wows

Once a week, gather around.

Talk about decisions coming up – whether it’s a big purchase or where to go for dinner.

Lay out the pros and cons, and decide together.

2) Tech Timeout

Pick a day or a couple of hours where screens are a no-go.

You’d be surprised how this little break can lead to better choices and more meaningful family time.

3) The Money Game

Saving for something big?

Make it a game.

Set a goal, track progress on a chart where everyone can see it.

Celebrate small wins to keep the motivation high.

Further Learning

If you’re intrigued and want to learn more about the intricacies of rationality and irrationality, here are my recommendations:

• “Predictably Irrational” - Dan Ariely

• “Thinking, Fast and Slow” - Daniel Kahneman

Also, if you missed them, be sure to check out the last couple of weeks newsletters:

• Innovating in All Areas of Life

• Navigating the New Norm of Remote Work

Concluding Thoughts

• We’re not as logical as we think. Accept it, and let’s work with what we’ve got.

• Small steps, big impact. Whether it's calling out biases or setting tech-free zones, the little things add up.

• Learning is key. The more we know about our quirks, the better we can navigate through them.

This is not about being perfect.

Just don’t coast through on autopilot.

Be aware and make slightly better choices every day.

Until next week,

Roger

Founder of The UnThinkable

P.S.

I’m hosting a LinkedIn live event titled “Save 4 hours per Week - Top Time Management Tools” tomorrow (11th of March) at 12PM.

P.P.S. A huge welcome and thank you to all new subscribers this week!