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4 Habits of Bad Decision Makers

4 common mistakes that can trip you up

  1. Monumentalizing the Trivial. Place a limit on how long you're willing to spend addressing the issue. When the time ends, make your choice and move on.
  2. Dredging Sunk Costs. Estimate how much the decision would take in total to follow through. If the cost is higher than the benefit, change your decision.
  3. Drowning in Data. Identify less than 10 pieces of relevant data that will have a strong impact on your decision's outcome. Then forget everything else.
  4. Do-or-Die Mentality. Realize that every decision is temporary. Use an overall decision-making strategy that stretches over time, not that imagines each moment to be the most critical one for the business.

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IDEA EXTRACTED FROM:

4 Habits of Bad Decision Makers

4 Habits of Bad Decision Makers

https://www.inc.com/erik-sherman/4-decision-making-mistakes-to-avoid.html

inc.com

2

Key Ideas

Making decisions

Decision making is critical for entrepreneurs. Every day, you have to set out on a course of action, choose tactics, evaluate results, and otherwise choose from arrays of options.

4 common mistakes that can trip you up

  1. Monumentalizing the Trivial. Place a limit on how long you're willing to spend addressing the issue. When the time ends, make your choice and move on.
  2. Dredging Sunk Costs. Estimate how much the decision would take in total to follow through. If the cost is higher than the benefit, change your decision.
  3. Drowning in Data. Identify less than 10 pieces of relevant data that will have a strong impact on your decision's outcome. Then forget everything else.
  4. Do-or-Die Mentality. Realize that every decision is temporary. Use an overall decision-making strategy that stretches over time, not that imagines each moment to be the most critical one for the business.

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4 Common Decision-Making Mistakes That Are Holding You Back

4 Common Decision-Making Mistakes That Are Holding You Back

https://www.bustle.com/p/4-decision-making-mistakes-people-make-the-most-according-to-expert-8185640

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Every day, we make hundreds of little decisions, from whether or not to get up when our alarms ring to what to think about when we're lying in bed at night. So, it's unfortunate that decision-making mistakes are literally built into our brains....

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Key Ideas

Decision-making errors

Most decision-making errors boil down to:

  • logical fallacies (over-generalizations, comparing apples and oranges, circular thinking)
  • limiting beliefs (underes...
Confirmation Bias

If you already have an opinion about something before you've even tried to figure it out, chances are you'll over-value information that confirms that opinion.

Think about what kinds of information you would expect to find to support alternative outcomes.

Attribution Bias

The “fundamental attribution error,” is when we excuse our own mistakes but blame other people for theirs.

Give other people the chance to explain themselves before judging their behavior.

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4 Ways to Make Smarter Decisions

4 Ways to Make Smarter Decisions

https://www.inc.com/erik-sherman/4-ways-to-make-smarter-decisions.html

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Decision making is critical in a business, and entrepreneurs often pride themselves on decisiveness. But as Chip Heath, a professor at the Stanford Graduate School of Business, and McKinsey consultant Olivier Sibony discussed recently in McKinsey Quarterly, decision making in businesses is often poor because of both personal and systemic problems. For a smarter and more effective business, consider these four points from the discussion.

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Key Ideas

Bias is everywhere

Being aware of your own biases doesn't mean you will be free of them. You need a system that will help prevent your proclivities from taking control.

You're not as smart as you think

It wasn't an individual that got people to the moon. It was all of NASA. 

There should be recognition of how many people really should be involved and the need for mechanisms to deliver smarter decisions.

There is safety in numbers
According to Heath, one study at a mid-sized high tech company showed that a group of leaders thought decisions were six times more effective when they considered two alternatives instead of one. Instead of asking a group for its decision, request the two top choices.

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The 4 Key Components of the Art of Decision Making

The 4 Key Components of the Art of Decision Making

https://www.huffingtonpost.com/entry/the-4-key-components-of-the-art-of-decision-making_us_59d83d4de4b08ce873a8ce1e

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Which decision-making strategies yield the best results? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.

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The Art of Decision-making:
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  2. Focus on things that don’t change or change very slowly over t...
Decision-making cascades 

... through everything you do. That's the power of compounding. If you get 1% better at understanding how the world works, how human behavior works, how economic systems function, and understanding your own brain — that 1% improvement impacts everything you do. 

Study things that never change

The best kind of knowledge is not ephemeral junk , that will be useless in a few years, but the core pillars of human knowledge and the major academic disciplines. That knowledge changes very slowly over time  and it’s a core foundation that you can build upon and grow from. 

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