Not Making Good Decisions - Deepstash

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The Four Villains of Decision Making

Not Making Good Decisions

We are exposed to biases that influence our ability to make good decisions.
  • We are quick to jump to conclusions because we fail to search for information that might disprove our thoughts.
  • We're overconfident. We look for information that fits our ideas and ignore information that doesn't.

Knowing these and other biases is not enough. We need a framework for making decisions.

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The 37%

Mathematics dictates that you should take 37% of the time or options you have to simply look and after that, you should commit to the first option that is better than everything you’ve ...

The brain when we make decisions

The 2 systems of the brain that wok during decision making:

  • System 1 is automatic and quick (like "something feeling off").
  • System 2 is deliberate and slow (like an algorithm).

At times, these systems are at odds with each other, but research shows it's always best to trust an algorithm than your own gut.

Pros-and-cons lists are flawed

There are a few biases they don't address:

  • Narrow framing: the tendency to view an option as your only option.
  • Confirmation bias: our tendency to gather the information that supports our preferred option.
  • Short-term emotion: our tendency to have our judgment clouded when emotions run high.
  • Overconfidence: our tendency to make a decision with too much optimism about how things will play out.
A checklist for faster, better decisions
  • Write down 3 existing company goals impacted by the decision;
  • Write down at least 3 realistic alternatives;
  • Write down the most important information you...
Pretend You're Advising a Friend

Think outside yourself a little and pretend like you're offering advice. 

The reasoning here is really simple: your short-term emotions get in the way of decisions, and that clouds yo...

Limit The Information You Take In

We usually believe that the more information you have, the better decisions we can make. However, at some point, we cross a threshold where we have too much information. That's when we start to fill in gaps and add weight to information that doesn't matter. 

This makes decision making way more difficult.

Reverse Your Assumptions

You're so prone to continue making the same kind of choices throughout your life that challenging yourself and doing the exact opposite is often the best way to get around this problem. 

The idea here is to confront your default behavior, step outside your comfort zone, and use your imagination to test some completely new ideas.