We like to think that we can rationally compute information like a computer, but we can’t. Cognitive biases explain why we made a bad decision but rarely help us avoiding them. Better to focus on these warning signs something is about to go wrong.
I've taught thousands of people make smart decisions without getting lucky.
Here is a thread on 5 of the biggest reasons we fail to make effective decisions.
We like to think that we can rationally compute information like a computer, but we can’t. Cognitive biases explain why we made a bad decision but rarely help us avoiding them. Better to focus on these warning signs something is about to go wrong.
The rule: Never make important decisions when you’re tired, emotional, distracted, or in a rush.
The first person to state the problem rarely has the best insight into the problem. Once a problem is thrown out on the table however, our type-a problem solving nature kicks in and forget to ask if we’re solving the right problem.
The rule: Never let anyone define the problem for you.
We like to believe that people tell us the truth. We like to believe the people we talk to understand what they are talking about. We like to believe that we have all the information.
You know the person that sits beside you at work that has 20 years of experience but keeps making the same mistakes over and over. They don’t have 20 years of experience, but one year repeated 20 times. If you can’t learn you can’t get better.
Warning signs you’re not learning: You’re too busy to reflect. You don’t keep track of your decisions. You can’t calibrate your own decision making.
The rule: Be less busy. Keep a learning journal. Reflect every day.
The Learning Loop
— Shane Parrish (@ShaneAParrish) August 3, 2020
To better understand learning, let's break it into four components.
1. Experience
2. Reflection
3. Abstraction/Lesson
4. Action
This process creates a feedback loop so that you are continuously adapting and learning from your (or others) experiences.
Our evolutionary programming conditions us to do what’s easy over what’s right. Organizations encourage us to sound good over being good. After all it’s often easier to signal being virtuous than actually being virtuous.
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