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Don't Let Your Emotions Make Your Decisions. Try The Revolving Door Test For Decision-Making.

The Peer-Group Syndrome

Peers tend to look for a more senior manager, even if he is not the most competent or knowledgeable person involved, to take over because they are afraid to stick their necks out.

You can overcome the peer-group syndrome by fostering self-confidence, which stems from being familiar with the issue under consideration, experience and the realization that nobody has ever died from making a wrong business decision.

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IDEA EXTRACTED FROM:

Don't Let Your Emotions Make Your Decisions. Try The Revolving Door Test For Decision-Making.

Don't Let Your Emotions Make Your Decisions. Try The Revolving Door Test For Decision-Making.

https://medium.com/swlh/dont-let-your-emotions-make-your-decisions-try-the-revolving-door-test-cdd1e567fa51

medium.com

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Key Ideas

The Ideal Decision-Making Process

  1. Free discussion: all viewpoints and different aspects of an issue are openly debated and where everyone has a chance to speak or express their opinions.
  2. Reaching a clear decision. The terms of the decision should be framed with utter clarity.
  3. Everyone involved must give the decision reached by the group full support. This does not necessarily mean agreement: so long as the participants commit to back the decision, that is a satisfactory outcome. 

The Peer-Group Syndrome

Peers tend to look for a more senior manager, even if he is not the most competent or knowledgeable person involved, to take over because they are afraid to stick their necks out.

You can overcome the peer-group syndrome by fostering self-confidence, which stems from being familiar with the issue under consideration, experience and the realization that nobody has ever died from making a wrong business decision.

Striving for the Output

Before jumping into any decision-making process, ask:

  • What decision needs to be made?
  • When does it have to be made?
  • Who will decide?
  • Who will need to be consulted prior to making the decision?
  • Who will ratify or veto the decision?
  • Who will need to be informed of the decision?

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Decision-making rules

Write a clear, objective set of rules to guide future decisions.

It will enable you to make a decision that is detached from the emotion of the moment.

Don't decide alone

Never make an onerous decision by yourself. Tap into the wisdom of the company's internal crowd.

The 'revolving door' approach

... is a technique that relies on using an outside perspective. 

If you're stuck in a big decision, you have to pretend you're a new CEO or a turnaround manager who can "see things more clearly." Adopting a third-person perspective helps you tap into an objective mode of judgment--one based on facts and an understanding of the consequences.

Overlooking Failure

Societies with a bias towards success, that are idolizing of successful people usually overlook the decisions that led to failure.

We tend to overlook cases that did not come with a successfu...

Mental Models

The way you look at how something works in the real world is called a mental model. It’s your thinking framework about something.

But when we make decisions, we often don’t think about our framework and immediately jump to a discussion about potential outcomes.

Fyodor Dostoevsky

Fyodor Dostoevsky

“Everything seems stupid when it fails.”

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The ABCDs of categorizing decisions

The ABCDs of categorizing decisions
  • Big-bet decisions: infrequent and high-risk - from major acquisitions to game-changing capital investments;
  • Cross-cutting decisions: frequent and high-risk - think pricin...

Approaching big bet decisions

  • Appoint an executive sponsor to work with a project lead to frame important decisions for senior leaders to weigh in on;
  • Break things down (with decision meetings at each stage), and connect them up.
  • Focuses on debating the solution (instead of endlessly elaborating the problem) and gather the right people.
  • Move faster without losing commitment: get comfortable living with imperfect data and being clear about what “good enough” looks like.

Approaching cross-cutting decisions

  • Identify decisions that involve a cross-cutting group of leaders, and work with the stakeholders of each to agree on what the main steps in the process entail.
  • Work through a set of real-life scenarios to pressure-test the system in collaboration with the people who will be running the process.
  • Limit the number of decision-making bodies, and clarify for each its mandate, standing membership, roles etc.
  • Create shared objectives, metrics, and collaboration targets.

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