In smaller, agile organizations, the decision-making burden may rest on one employee or a very small group of them, making it easy to fall victim to cognitive errors. “All or nothing thinking”  means small business owners may view things in more binary terms – thinking something is either completely good or bad. This means that change from the original choice can be perceived as a negative.

Psychological Barriers: All Or Nothing Thinking

There are several psychological factors — or mind traps — that business leaders fall into when making decisions about a digital strategy. These can vary depending on the size of the organization.“Group think” is one such trap and has the potential to be damaging. It can take hold when a leadership team remains introspective, without seeking insight from elsewhere in the company. Often it is the most cohesive teams that fall victim to this because there is no friction or difference of opinion to force new ideas.

Avoiding Mind Traps and Other Decision-Making Flaws

This uncertainty is common in the business world. Whether it’s a new tool, a new colleague, or shifts in the wider market, it’s natural to feel trepidation about the upcoming impact. 
It therefore stands to reason that no matter how much change someone has experienced, an unknown outcome is often the biggest barrier to action.

Uncertainty: The Main Barrier

For business owners and leaders tasked with driving digital strategy, it is their perception of risk that is more impactful on success than anything else. Deciding to incorporate digital tools or infrastructure can be daunting because of the unknown it represents, but shying away from the process can be a far riskier path. 
By understanding the psychological barriers behind digital decision-making, industry stakeholders can and should encourage technology adoption in small and medium-sized businesses — in doing so, they will strengthen the backbone of the global economy.

The Bottom Line

By applying the principles of nudge theory, it’s possible to persuade them. Many of these techniques play on core facets of human programming, such as the human fear of missing out. For example, comparing commercial progress or digital strategy with competitors can be an effective method to highlight the cost of inertia. It’s also important to make it clear that tech-driven strategy is the new standard. Instead of asking, “Do you want to adopt technology?” the question should be, “Which technology do you want to adopt?”

Thinking Past The Sale

Otherwise, we can prime business owners and leaders by sending them reminders (advertisements fall into this category) or asking them to imagine a scenario in which technology is or isn’t adopted. 
Appealing to the imagination in this way can be very effective — and can include prompting them to consider how decisions may impact loved ones or colleagues.

The Power Of Imagination

Given the near-constant state of flux, it would be fair to assume that they might be more willing to embrace new processes or tools to get themselves back on track, adapt and thrive in an expanding digital economy.Instead, many still opt to maintain the status quo. A great number of businesses still grapple with the “hassle factor” — a key behavioural barrier that sees them struggle to convince themselves that investment is worth the effort or potential risk, particularly if they don’t boast unlimited budgets.

Understanding Resistance to Change: The Hassle Factor

With so many hurdles to effective decision-making, it’s no wonder digital transformation is hard to get right. In addition, convincing budget holders to increase technology adoption is no easy task. 
But it can be done. Sometimes, rational explanations aren’t enough to get through to business leaders. Humans take time to change and so it takes a much longer-term approach to shift their mindset.

Overcoming Your Company’s Psychological Barriers

Of course, affecting change in business should be carried out entirely without manipulation. 
Whether you’re a government, tech vendor, or an industry body, there is a moral imperative that should govern efforts to influence tech adoption.

The Moral Angle

For business owners and leaders tasked with driving digital strategy, it is their perception of risk that is more impactful on success than anything else. Deciding to incorporate digital tools or infrastructure can be daunting because of the unknown it represents, but shying away from the process can be a far riskier path. 
By understanding the psychological barriers behind digital decision-making, industry stakeholders can and should encourage technology adoption in small and medium-sized businesses — in doing so, they will strengthen the backbone of the global economy.

The Psychological Barriers

Along with death and taxes, change is one of life’s constants. And just like those other two examples, it is something many humans fear. 
Theoretical models suggest this is due to the absence of control and a lack of understanding of what lies ahead. It’s simple, really. We are afraid of the unknown, which can cause us to make bad choices.

Why Leaders Resist Change

Overcoming resistance starts with understanding the psychological barriers at play.