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11 Myths About Decision-Making

Here is an excerpt from an article written by Cheryl Strauss Einhorn for Harvard Business Review and the HBR Blog Network. To read the complete article, check out the wealth of free resources, obtain subscription information, and receive HBR email alerts, please click here.

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Can you imagine life without your smartphone?

So many of us can’t. We depend upon them for everything from directions to telling us the temperature outside to tracking our daily steps and heart rate. Our “Hey, Siri” culture has conditioned us to equate speed with efficiency and efficacy — and it’s changing how we process information. Our brains have become conditioned to respond with pleasure to the bings, pings, and dings our phones and computers provide.

While Siri and Alexa and Google are great when we’re jonesing for Italian food and want help finding a restaurant, they’re not great, or even desirable, when it comes to complex decision-making. In fact, they help enable a series of counterproductive ideas and reactive behaviors that actually impair your ability to make informed decisions.

For example, let’s say you want to buy a car. Maybe you’re weighing a Prius versus a Crosstrek. Siri and Google can give you all sorts of information, such as fuel efficiency or the current interest rate on your loan. But a search engine won’t know why you’re buying the car, how you intend to use it, or what impact the purchase will have on your budget. Ultimately your decision needs to come from a clear understanding of your needs, values, and goals — information that’s outside the reach of their algorithms.

11 Myths About Decision-Making

I’ve been studying decision-making for more than 20 years and have identified a number of deeply ingrained and counterproductive myths that harm our ability to make decisions. The most common of these myths include [these three]:

1. I like to be efficient. So many of us think efficiency means jumping right in and making a decision. But to be truly effective, we need to be clear on what we are solving for. Rushing can lead you to make a decision based on the wrong factors, which ultimately will lead to regret. For example, walking into a car dealership and buying the first car you see may feel efficient, but may mean you end up with the car the salesperson wants to get rid of, not the car that best fits your needs and budget.

2. I’m too busy; I don’t have time to give to this decision. Putting off a decision is a decision in and of itself. However, intentionally slowing down to get clear on what you’re solving for will speed up your efficacy. You’ll save time later by spending quality time now to avoid having to revisit the decision. For example, taking a little bit of time to research prices before visiting a car dealership will better help you negotiate the price of the vehicle.

3. I just need to solve this problem at this moment. This is the classic example of “losing the forest for the trees.” Our problems sit in a context. A narrow focus may solve the wrong problem, or only partially solve the problem. If your car breaks down unexpectedly and you rush out to buy a new one, are you considering your needs beyond the present?

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Here is a direct link to the complete article.

 

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