Why People Fail to Make Important Choices
Decisions and destiny or how our choices define us.
Today, I was inspired to share my thoughts on Why People Fail to Make Choices. Important Choices. I’m pretty sure that everyone who will read or is reading this is fighting with their own decisions and variety of choices.
I will share an example of my day-to-day routine. So, I work with a large team of 300 people daily by focusing first on collaborating with my C-level Executives, Heads, and then with their teams.
When you're building a company (or anything basically) from scratch, you're constantly making choices. In the beginning, it's easier to justify these decisions. Are they good or bad? What results or harm do they bring?
At the current scale, as a CEO, I always have 10-20 important decisions on my plate. The most challenging part is not knowing whether they are good or bad in the moment. I only understand their true impact in the long run, typically after 3-12 months.
When I finally see the actual results, I often think, "Well, these are the consequences; perhaps another decision would have been better."
Having earned my 'street MBA' by making every possible mistake (which I truly value), I've learned a lot. I've gained insights into how to do things, work with people, build service and product companies, bootstrap, and more.
The most crucial lessons have been where to focus, whom to hire, which direction to pursue, and what to do.
Now, I have an amazing team that helps me handle these choices, with or without my direct involvement.
I've started to realize how difficult making choices can be and how people often prefer to share the responsibility or, in the worst-case scenario, avoid it altogether or just “point fingers.”
Taking ownership and dealing with the consequences is terrifying. For me, especially this past year, when all my initial plans were disrupted by the recession and the economy un, forcing me to make some very tough decisions.
All these challenging or negative experiences teach us resilience. And there is a question, right?
Why We Resist Of Choosing
Making decisions, especially important ones, can be frustrating. I've observed and experienced the challenges of decision-making. Here, Today, I wanted to simplify these challenges and provide fresh, relatable examples to guide you through making effective choices.
Choice Equals Loss: In "The Paradox of Choice" by Barry Schwartz, the concept of opportunity cost in decision-making is explored. This is a significant problem for entrepreneurs and business leaders. Let’s say, a software company choosing to invest in developing an AI-based product implicitly forgoes the opportunity to invest those resources in improving their existing products. This decision may streamline their path towards innovation in AI but at the cost of enhancing current offerings. This trade-off can be challenging as it involves sacrificing one viable path for another, potentially more uncertain one.
Fear of the 'Wrong' Choice: Many of us are hindered by the fear of making an wrong decision. This fear can be rooted in a phenomenon known as 'loss aversion'—a term coined by psychologists Daniel Kahneman and Amos Tversky, which suggests that people prefer to avoid losses rather than acquire equivalent gains. In a business context, this might manifest when a leader hesitates to pivot from a moderately successful strategy to a potentially more lucrative one due to the fear of losing what they've already built.
A classic example of this is Kodak's hesitation to embrace digital photography, fearing it would undermine their film business.
The Paralysis of Analysis: The difficulty in making decisions is often compounded when our desires are unclear or in conflict with our logical analysis. Author and psychologist Daniel Goleman discusses this in his book "Emotional Intelligence," emphasizing the importance of aligning decisions with our emotional insights. An example can be seen in professionals choosing careers based on societal prestige or financial gains, only to find themselves dissatisfied because the career doesn't align with their personal values and passions.
Uncertainty in Desires: Understanding what we truly want is often more challenging than it appears. In the decision-making process, rational analysis and emotional insight must coexist. A decision might logically seem correct but feel intuitively wrong. This disconnection can lead to choices that don't align with one's deeper aspirations or values.
For example, a professional might choose a career path based on societal expectations or financial incentives but find themselves unfulfilled because the role doesn't resonate with their inner passions or strengths.
The Comfort of the Status Quo: Sometimes, the resistance to make a choice stems from a preference for the familiar. The status quo bias, a cognitive bias that prefers the current state of affairs, can be a significant hurdle. Changing the course implies venturing into the unknown, which can be intimidating compared to the comfort of the known, even if the known is less than ideal.
Putting it into Practice:
Making decisions is risky, but not deciding is even worse. When facing a tough choice, ask yourself these questions:
What's the hardest part of this choice?
What am I saying "no" to by saying "yes"?
How does each option make me feel?
What would I choose if nobody knew about it?
What do friends or family think would make me happy?
If I were more open to fear and uncertainty, what might I do?
Learning to make good decisions is crucial, especially when the stakes are high. So, face your choices boldly. While success isn't guaranteed, it's better than doing nothing.
Post-Credit Scene
As we wrap up for today through the difficulties of choice., I want to leave you with something extra, like always. If you've ever stayed in a movie theater just a bit longer, hoping for that one last scene, this section is for you. :)
Whether you're unwinding after a day's work or seeking fuel for your next big decision, these resources are here to guide and inspire.
Videos & Podcasts:
TED Talk - "The Paradox of Choice" by Barry Schwartz: A thought-provoking talk on how having too many choices can create more stress than happiness.
Podcast - "How I Built This with Guy Raz" (NPR): Stories behind some of the world's best-known companies, offering insights into the crucial decisions that shaped them.
TED Talk - "Dare to Disagree" by Margaret Heffernan: Explores the role of conflict and disagreement in making sound decisions.
Books:
"Blink: The Power of Thinking Without Thinking" by Malcolm Gladwell: Delves into the power of intuitive decision-making.
"Predictably Irrational" by Dan Ariely: A fascinating look at the hidden forces that shape our decisions.
"The Art of Strategy: A Game Theorist's Guide to Success in Business and Life" by Avinash Dixit and Barry Nalebuff: Offers strategic thinking skills through the lens of game theory.
TV Shows & Movies:
TV Show - "Billions": A masterful depiction of strategy, decision-making, and power dynamics in the high-stakes world of finance.
Movie - "Moneyball": Based on a true story, it shows the power of data-driven decisions in baseball.
TV Show - "Mad Men": Offers a glimpse into the decision-making processes in the world of advertising during the 1960s.
Bonus - Online Courses:
"Critical Thinking & Problem-Solving" (Coursera): Enhance your decision-making skills through structured critical thinking.
"Negotiation, Leadership and Influence" (Udemy): Learn the art of making strategic decisions in leadership and negotiation contexts.
This edition is one of my most favorite so far
Agree with Michael, great article!