Reducing the risk in decision making

Tuesday 8 January 2013

Business leaders can take a number of steps to improve their decision making skills, it has been claimed.

Writing for Terra, Gwen Moran said intuition and instinct always have a key role to play in deciding on the best course of action.

"But it's also true that discarding reason and experience in favour of hunches often results in bad business decisions," she stated.

Ms Moran drew attention to the book 'Blindsided: How Business and Society are Shaped by Our Unpredictable and Irrational Behaviour', written by marketing and media consultant Jonathan Gifford, which offers tips on merging "mind and gut instinct".

In the publication he urges executives to analyse the risks, examining particular ideas from an analytical viewpoint.

Mr Gifford also urges businesspeople to examine the motivation for making a particular decision.

"People are perfectly capable of making rational decisions, listing pros and cons and weighing potential benefits, but in everyday life we rarely do this," the writer notes.

In many situations, emotion and instinct rule, he adds.

Mr Gifford also says executives should avoid committing to a particular course of action simply because everyone else is doing so.

"Allowing fear of 'missing out' to drive your decision making is dangerous," he warns.

Posted by Sarah Parish