Making the right decisions

Most people rely only on their intuition when making decisions. According to a study by Harvard University professor M.H. Bazerman this fact has not changed in the last 50 years despite increasing knowledge of management methods. This explains the very expensive and serious mistakes of many companies not least to be clearly seen in the current financial crisis. Although in our knowledge society we find today comprehensive possibilities to share information and facts for making secure logical and unbiased decisions. But managers act more intuitively neglecting facts, due to information overload, increasing complexity and time pressure. Successful decision making is based on logical, and not emotional thinking. It is rather slow, but deliberate, and relies on more detailed information. Furthermore it is helpful to follow consistently agreed decision criteria, to take the perspective of an outsider, to take the opposite role of a first desired decision, to be skeptical, to identify biases, collecting several expert opinions and ensuring completeness of all facts.

Comments are closed.