Tag Archive for 'Decision Making'

Motivational Quote Of The Day

It is in your moments on INdecision that your dreams are destroyed — Dr Marc Dussault

Dr Marc Dussault, Indecision, Motivation

As you must know by now, Exponential Mindset Thinking focuses on the positive, optimistic perspective. That being said, every once in a while, directing our attention to the “negative” can have positive benefits.

For example, this quote came to mind because when I stage my introductory presentations to prospective clients, I know that many participants “would like” their lives to change and their business results to improve, but they are unable to make THE decision to change their predicament.

Decision making is not easy – in fact I am giving a 3-hour course to my Platinum Program Members this month called Critical Thinking For Better Decision Making. I will highlight the biases and obstacles to good decision making. (Don’t look for the event on our website – it is NOT a public event. Most of our events are NOT public and reserved only for clients. If you want to attend, you need to contact us).

Anyway, back to the quote and why it’s so important.

People who “would like” their lives to change are destined for “failure” – it really is that simple, cut and dry. To be successful at anything, you have to make decisions, be bold and follow through.

When you find yourself hesitating to make a decision it’s because you are simply NOT committed to the ultimate outcome. You don’t want it bad enough.

I see it all the time – an entrepreneur who is “struggling” and is paralysed by indecision. In most cases, there is nothing that can be done short of an intervention. The psychic wound is an insurmountable barrier.

Exponential Tip Of The Day:
If you find yourself hesitating to make a decision you know you need to make, ask yourself just ONE question:

“Why don’t I want the outcome badly enough
to make this decision that I know I need to make?”

Even if you don’t make the decision, at least you’ll be one step closer to self awareness and realising YOU are your biggest obstacle to your own success.

By the way, this is not to be mixed up with procrastination – this example is different. This is NOT making the decision that you know you need to make. Procrastination is simply delaying it, putting it off. It may seem the same, but it’s not. These nuances are very, very important. If you would like to learn more about interesting things like this, contact us.

Why Accountants Kill Business Growth

Everyone’s heard of the the word Apprehensive. It’s an adjective often associated with accountants…*

Accountant, Doubtful, Timid, Scared

But the word prehensive is not so well known – the opposite of what accountants are…

So if you ever wondered why there is often a conflict between entrepreneurs and their accounts – look no further than the dictionary!

Decisive, Entrepreneur, Determined

Now you might thinks this is superfluous, but it’s not. We are all molded, trained and formed into a pre-defined ‘model’ by our education, training and experiences. To think otherwise is childishly immature.

However, as adults, we do have the power to determine our own destinies, but we can only exercise it by knowing where we ARE if we want to get to where we want to BE.

That’s a discussion well beyond today’s blog post, but I thought I would at the very least trigger the thought and enlighten you with a slightly expanded vocabulary!

* There are great accountants out there who are pro business growth and are not apprehensive about creating momentum. They are a minority, so you have to seek them out carefully. Of course be aware that if they don’t counter-balance your desire for ‘unlimited’ growth, you’ll need to get that balance elsewhere…!

Decision Making: Cognitive Biases

Decision making is one of those concepts that many people try to simplify when it fact it’s complex and must be treated in a multi-dimensional manner. There are many forces in play and today, I wanted to summarise a few cognitive biases that are involved. By knowing these exist, you can start to make better decisions.

  1. Sunk Cost Bias: Escalate the commitment of previous time, effort and money. Cutting your losses is harder than it appears. Trying to calculate marginal costs (forgetting about what’s already been spent) is a lot harder than it appears. Gamblers are notorious for abusing this bias when they are down on their luck. Sports teams will keep playing top salaried players even though they under perform lower paid players. Everest climbers have what’s called the turn around rule (when it gets too dangerous to continue) yet many who die ignored their own safety rule.
  2. Over confidence Bias: We are all systematically over-confident, hopeful and enthusiastic. When asked, 80% of people will answer that they are above average in something when statistically it’s impossible.
  3. Recency Effect Bias: An over reliance on recent events and activities will sway your decision making – much like a hot streak in sports or gambling.

There isn’t ONE thing that affect decision making, but a multiplicity of biases. On Mount Everest people die when they make a bad decision.

In business, the same is true. 80% of bankruptcies are due to management incompetence = poor decision making. The trouble is that unless you are aware of the REASONS for the mistakes, they will be repeated over and over and over again.

Today’s post is one of the many steps you need to make to improve your decision making. It’s always going to be a work-in-progress because there is NO silver bullet or perfect decision making process or ‘system’.

You have to find your optimal strategies to counteract biases and other obstacles.

Just remember you’re aiming for an optimal solution – not a perfect one.

That means the best solution “under the circumstances”…