The Saturday Evening Post published my latest column, How to Get Major Life Decisions Right. My column explores one simple, yet not easy, question: “How do I make the right decision that will have such a huge impact on my life when it isn’t at all clear what the best decision is?” There are no [...]
It’s one thing to say that you want to be the best athlete you can be. It’s an entirely different thing to actually do the things necessary to achieve that goal. In other words, talk is cheap! You have to want it and you have to want it bad! Why? Because the chances are that [...]
Is there anything more important to the success of a company than decision making? And is there any other process that occurs so often in a company that is accomplished so haphazardly? The decisions that are made, from the boardroom and the corner office on down, dictate the direction that the company goes. Yet, decision [...]
I’m often brought into a company to help them solve a problem. The problem might have to do with strategic planning, research and development, or entry into a new market. I’m no expert in any of these areas, but what I am pretty good at is helping companies understand and go through the best possible process for making decisions. The first thing I say is that this process isn’t about solving problems; it’s about decision making. When we think about typical problem solving, it involves a series of steps: 1) Identifying the problem…which involves making a decision on what the problem is; 2) Finding a solution…which means making a decision on what will solve the problem; 3) Implementing a solution…which means making a decision on how to put the plan into action. Therefore, when we talk about ‘problem solving,’ what we really mean is ‘decision making.’
Late last year, I wrote a blog post titled How Do You Make a Major Life Decision. In it, I describe my approach to making decisions and some of the potential obstacles to making good decisions. Here is an interesting article that explores some of the recent research on decision making and offers six science-based ways [...]
I recently had dinner with a former client whom I had worked with about 15 years ago. Cassie (not her real name) was in her teens then and she is now a grown woman with a great career and about to be married. She asked for my guidance to help her make a major career [...]
The conventional wisdom in classical economics is that we humans are “rational actors” who, by our nature, make decisions and behave in ways that maximize advantage and utility and minimize risk and costs. This theory has driven economic policy for generations despite daily anecdotal evidence that we are anything but rational, for example, how we invest and what we buy. Economists who embrace this assumption seem to live by the maxim, “If the facts don’t fit the theory, throw out the facts,” attributed, ironically enough, to Albert Einstein. But any notion that we are, in fact, rational actors, was blown out of the water by Dr. Daniel Kahneman, the winner of the 2002 Nobel Prize for economics, and his late colleague Amos Tversky. Their groundbreaking, if not rather intuitive, findings on cognitive biases, have demonstrated quite unequivocally that humans make decisions and act in ways that are anything but rational.
It’s a wonder that good decisions are ever made by the species known as Homo Sapiens. The reality is that the cards are stacked against us whenever we are faced with choices, especially when the decisions are of consequence. Think about all of the horrendously bad decisions that have been made in recent history and [...]
Good decision making is one of the most powerful skills your children need to learn to as they progress through childhood and transition into adulthood. But I promise you, it is not a skill that will develop readily on its own, particularly in the digital world in which they are growing up. You should teach your children why popular culture and technology can cause them to make poor decisions and guide them in learning how to make good decisions. Making bad decisions. Whenever I speak to a group of young people, I ask how many of them have ever made a bad decision. With complete unanimity and considerable enthusiasm, they all raise their hands. When I then ask whether they will ever make a poor decision in the future, the response is equally fervent. I also ask children why they make less-than-stellar decisions. Their responses include I didn’t stop to think; It seemed like fun at the time; I was bored; Peer pressure; I didn’t consider the consequences; To get back at my parents. Yet when I ask them if the faulty decision was worth it, most usually say, “Not really.” What this means is that there was glitch in their decision-making “program,” somewhere between input, processing, and output, that caused the bad decision. Because children lack experience and perspective, and, as I noted above in my previous post, their prefrontal cortex isn’t fully developed, they tend to make decisions that are egocentric, rash, and short-sighted. This absence of forethought can cause children to not consider all available information, engage in an incomplete cost-benefit analysis, and ignore long-term consequences.
