7 Myths Of Decision Making

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Myth 1 Experts dont make disastrous choices 

• Often the most damaging decisions come from
  experts. Why does that happen?
• It happens because for many decisions that have
  very serious implications, we usually depend on
  experts.
• Due to such passive, unguarded acceptance, when
  the experts go wrong, their bad decisions can
  have devastating consequences.

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Myth2 Teams take wiser decisions than
individuals

• Team decision is defined as mode of thinking that
  people engage in when deeply involved in a
  cohesive in-group, when the members strivings
  for unanimity override their motivation to
  realistically appraise alternative courses of
  action.
• Groupthink cannot be countered by having more
  knowledgeable members in the team.
• Involvement of too many people can aggravate the
  chance of making mistakes.

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Myth3 No one remains locked in a bad decision,
knowingly

• When we make a choice that doesn't work out, we
  find it remarkably difficult to cut our losses
  and walk away.
• Whenever we overinvest our time, energy, or
  resources in a choice that falls short of the
  desired return, we have a tendency to stay locked
  in it in the anticipation of change of fortune.
• Many a time, we find ourselves so much committed
  to a decision that we are unable to walk away
  from it.

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Myth4 More information leads to better decision
making

• Giving people extra bits of information doesnt
  improve their chances of getting it right.
• It only improves their belief in the accuracy of
  their own opinion.
• Instead of seeking additional data utilize the
  existing data efficiently

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Myth5 Decision making is purely a logical
process

• Brain science makes it clear that mental
  processes, which were not conscious of, drive
  our decision making and logical reasoning and are
  often just a way to justify emotional choices.
• Research has also proved that no one makes a
  decision based on logic alone.
• Consciousness is no more than a passive machine
  running one simple algorithm to serve up whats
  already been decided, and take credit for the
  decision.

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Myth6 Good decisions bring predictable outcomes

• It is unwise to expect that good decisions will
  necessarily bring predictable outcomes.
• In a volatile, uncertain, complex and ambiguous
  (VUCA) environment, decision making largely
  depends on transformational thinking and
  risk-taking ability.
• Bad Outcomes raises an alarm on the fallacy of
  outcome-based mindset towards decision making.

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Myth7 Good decisions are independently vetted
by many

• J K Rowlings Harry Potter and the Philosophers
  Stone was rejected by 12 established publishers
  before Bloomsbury eventually accepted it.
• Clearly, in this case, all those 12 publishers
  independently arrived at a wrong choice.

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