Strategic management: mental traps against good decisions

Strategic management: mental traps against good decisions

That human beings are not completely rational is not news to anyone. However, we can never foresee that we are make mistakes even acting with total logic. And the source of those mistakes often is our emotions. So, we’ve selected some mental pitfalls to avoid, and to help you make a strategic management of your business and protect yourself from slips when making a decision.

1. Having overconfidence

Skepticism is the weapon against this trap. Doubting your own projections and consider pessimistic scenarios is fundamental to decide better.

2. Overestimating fame

Many successful professionals studied at Harvard. But that does not mean you will also be if you study there. For any project you get in, analyze your profile and be very critical before assume it.

3. Believing in unanimity

In 1950, the psychologist Solomon Ash studied how peer pressure spoiles reason. He did an experiment: a person assessed the size of some lines. When they were alone, they used to get it right. But, when he separated the room with an actor who answered wrong on purpose, they were more likely to err. In 30% of cases, the person agrred with the wrong answer. It is a weakness that needs attention: be wary of unanimity.

4. Seeing only successes

As success breeds more visible than failure, we tend to look more to the stories that have worked and less for projects, investments and careers that have stalled. So the best way to face it is to know both projects, companies and products that have gone wrong.

5. Feeling threatened by leaders

Keep in mind that leaders also make mistakes. Do not be tempted to take the thinking at a lower level not to contradict your boss. Keep critical and challenge who theoretically know more. This increases very much your sense of freedom and confidence.

6. Thinking that if did not happen, it will never happen

It is a dangerous mistake because it creates a false mental map of risks. Only the ones who live with people of different opinions and life styles escape from that: diversity is a shield.

7. Thinking that a lot of effort means good results

When someone devotes much energy to a task, he tends to overestimate the results, to justify all the dedication he had. So, the tip is: when analyzing something that demanded a great effort of yours, examine coldly the result – and only the result.

8. Not leaving a bad idea

The more energy you spend, the higher your mental pressure not to give up. The problem is that you walk in circles: a bad project leaves no room for a new better project. When deciding to continue or not with something, it doesn’t matter what has already been invested, but what is expected from the future.

9. Feeling safe because you are informed

Many believe the feeling that the more information available, the better the decisions taken. But don’t feel safe because you have all the data at hand. The best tip is to pay attention to the facts present at the time of making a decision.

Making better decisions requires of you a visionary mindset and a strategic management. In other words, it requires you to analyze the various sides of an issue, listen to your team and outsiders and align the desires of your audience to the expectations of your business. And one of the eternal expectations of a company formed by teams that deal with various clients is to keep its productivity and satisfaction high. Try Runrun.it, the tool for team management used by more than 150,000 companies from 130 countries. Try now for free: http://runrun.it

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