What Good Decision Making Looks Like
No one wakes up thinking, “I am going to make bad decisions today”. But guess what? We all make them. When we make decisions, we make mistakes. We all know this, of course.
In a world with imperfect information and subject to randomness, good decisions do not guarantee good outcomes. While people should make rational decisions only if they had enough information, Kahneman’s “Thinking fast, and slow” proves how people can decide against their economic interest even when they know better.
This week’s EDebrief focuses on Decision Making and Decision Making Process. Enhancing the quality of one’s decision process as a means to increasing the probability of a superior outcome.
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Startups & Product Management 🚀
- 13 min read – Being consistently right matters, a lot. But we live on a world with imperfect information. In such context, the ability to make good decisions depends on choosing the right amount of information and taking them at the optimal speed [via Brandon Chu]
- 5 min read – Different problems might require different thinking processes and actions to resolve them. Applying the Cynefin framework to understand the complexity of a problem [via BitGenics]
- 5 min read – Not all decisions are set in stone. In fact, being able to pivot frequently will build resilience in the decision making process and increase the probability of good outcomes. A compilation of visualizations to understand current activities and the trade-offs to be made to reduce churn when shifting direction [via John Cutler]
Digital Strategy and Trends 🔀
- 20 min read – Companies with a well-functioning decision making process have a bigger probability to succeed. Understanding what kind of decision needs to be made, by whom and how quickly is at the root of this process [via McKinsey Insights]
- 5 min read – Americans’ proclivity for eating bananas has helped make them the second most valuable fruit crop in the world. And the reason why people tend to eat more bananas than, let’s say, apples is simple: they are easier to peel. If you want to drive decision making, make decisions easy to take [via Harvard Business Review]
Must-listen Podcasts 🎧
- 50 min listen – Life is series of decisions. But life is filled with complexity, randomness and uncertainty. Annie Durke, a former World Series Poker champion, talks about how to make decisions when lacking perfect information to do so [via The Art of Manliness]
Interesting Reads 🤓
- 6 min read – In recent decades researchers have discovered mental errors that lead us to think incorrectly in a given situation. These are some of the most common mental biases that sway you from making good decisions [via James Clear]
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