Curated from: strategy-business.com
Ideas, facts & insights covering these topics:
8 ideas
·12K reads
46
Explore the World's Best Ideas
Join today and uncover 100+ curated journeys from 50+ topics. Unlock access to our mobile app with extensive features.
People are not accustomed to thinking hard. They are often satisfied with a plausible answer that comes quickly to mind.
The prospect theory - the empirical exploration of risk assessment, loss aversion, and reference dependence, explains why people consistently behave in ways that traditional economic theory could not predict.
222
2.81K reads
There are two thinking systems, each with distinct characteristics.
204
1.77K reads
In statistical thinking, professional statisticians informally think the degree of the probability distribution in a small group will closely resemble the probability distribution in the overall population.
In other words, even people who should know better make these mistakes. When they're not computing seriously in System 2 mode (reasoning), they rely on their intuitions for simple problems.
180
1.66K reads
The perception of and reaction to risk is often dismissed as emotional. The first thing that happens is you're afraid, and from that fear, you feel risk. So the view of risk is becoming less cognitive while emotion becomes dominant.
Emotion is about what might happen, not so much the probability. The more emotional the event is, the less sensible people are.
211
1.46K reads
185
1.17K reads
Both individuals and groups need mechanisms to review how their decisions are made.
189
1.01K reads
Decision making can be divided into three systems: Emotional, rational, and perceptual systems.
The rational model is one where the beliefs and desires are supposed to be determined, but decision analysis of the last thirty years has shown that it doesn't work. Even people who are explicitly trained to used System 2 thinking (reasoning) in problems don't do so, even when they know they should.
It doesn't mean you shouldn't take decision analysis, just that decision analysis are not effective if decision-makers do not want to relinquish the intelligence function to somebody else.
187
1.16K reads
Decision analysis is based on the idea that decision making is a choice between gambles. Managers think that they are fighting risk in a controlled way. The idea that you are gambling is an admission that you have lost control. It is detestable to decision managers, and the reason they reject decision analysis.
It is advisable for organizations to dedicate some effort to study their own decision processes and their own mistakes, and to keep track so they can learn from those mistakes.
185
1.02K reads
IDEAS CURATED BY
Learn more about problemsolving with this collection
How to balance flexibility and structure in a hybrid team environment
Understanding the challenges of managing a hybrid team
How to maintain team cohesion
Related collections
Similar ideas
5 ideas
5 Habits That Make Me Feel Like An Actual Adult
thefinancialdiet.com
2 ideas
15 ideas
13 Pieces of Wisdom from the 13th century
medievalists.net
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates