Decision-Making

The Upsides of Slowing Down

April 17, 2023 By Nagesh Belludi Leave a Comment

Making faster and faster decisions can look like the proper response in a culture obsessed with speediness and efficiency that bleeds into the reckless and hasty. But as investment banker turned-law educator Frank Partnoy’s Wait: The Art and Science of Delay (2012) argues, while fast thinking—like fast food—hits the spot on occasion, too much speed can, however, be counterproductive.

Today we jump faster and more frequently to firm conclusions. We like to believe there is wisdom in our snap decisions, and sometimes there is. But true wisdom and judgment come from understanding our limitations when it comes to thinking about the future. This is why it is so important for us to think about the relevant time period of our decisions and then ask what is the maximum amount of time we can take within that period to observe and process information about possible outcomes. … The amount of time we take to reflect on decisions will define who we are. … Our ability to think about delay is a gift, a tool we can use to examine our lives. Life might be a race against time, but it is enriched when we rise above our instincts and stop the clock to process and understand what we are doing and why. A wise decision requires reflection, and reflection requires pause.

Time pressure, high stakes, and emotionally charged situations make it more likely that we will deviate from rational decisions and fall back on heuristics—caveman thinking indeed. Mental shortcuts may have their place for helping us to navigate quotidian risks like crossing the road or boiling a kettle. However, for every decision that can be made in a moment, there are many others where a considered and judicious approach may save you from calamity.

Idea for Impact: The next time you feel pressured to make a quick decision in the face of the unexpected, try to slow down, take a breath, and ask yourself whether your natural desire to get on with it needs to be tempered with caution.

Knowing When to Give Up: Establish ‘Kill Criteria’

March 27, 2023 By Nagesh Belludi Leave a Comment

Quit: The Power of Knowing When to Walk Away (2022) by the professional poker player and “decision scientist” Annie Duke meditates on how you could become so wedded to some predetermined goals that you don’t reassess your ever-evolving values and priorities based on new information that you may unearth along the way.

Quitting isn’t bad, especially if you’re blindly heading toward a “fixed object goal” that’s perhaps no longer serving your values—even hurting you in some way you didn’t anticipate.

A Mental Model to Help You Cut Your Losses

Duke suggests instituting “kill criteria” in advance. Before a pursuit, ask yourself: what signals you could see in the future would tell you it’s time to quit or change course?

Before entering a marathon, for example, you could decide if the medical tent counsels that you’re hitting your physical limitations, you’d quit trying to push yourself and walk out.

In other words, every goal needs a resolute “unless” for every task, investment, and relationship. E.g., if you’re miserable at your job, you could give it three more months and pre-select some indicators that would tell you if things haven’t improved even after you’ve increased your efforts.

Idea for Impact: Know when to give up. Grit is great—but only for carrying on for hard things that are worthwhile. Beware of tunnel vision; don’t get so narrowly focused on a specific goal and overlook other opportunities or priorities.

First Things First

February 27, 2023 By Nagesh Belludi Leave a Comment

Most people have the disposition to work on easy, accessible, or pleasant tasks while putting off tasks that seem tedious or difficult.

Using minor tasks to put the big tasks on the back burner is a particularly deceptive form of procrastination. You pat yourself on the back for checking items off your to-do list, but all you’ve done is deferred the more critical, time-consuming work until the end.

Sure, you need to exercise, check your Facebook wall, run errands, tidy your desk, catch up with a buddy, and plan your next vacation. But don’t use these activities as excuses for not preparing the progress report whose due date is creeping up on you.

One of the self-help guru Stephen Covey’s familiar 7 Habits of Highly Effective People (1989) is the discipline of classifying essential things that need to be prioritized. Habit 3, “put first things first.”

Idea for Impact: Delaying a critical task hardly makes it easier. When tempted to procrastinate, first catch yourself making an excuse. Don’t let the little necessary tasks trivialize the more substantive work.

How to … Stop That Inner Worrywart

February 22, 2023 By Nagesh Belludi Leave a Comment

I’m one of those incessant worrywarts. Risk mitigation is a significant facet of my work. Thus, I worry about the prospect of non-optimal results; I worry about the unintended side effects of my decisions, and I worry about what people aren’t telling me. I even worry that I worry too much (now, that worry is entirely unfounded.)

If, like many people, you’d like to worry less, perhaps you may find the following approaches helpful. Most of my over-worrying comes from thinking ahead, but after a reasonable effort to understand risks and make plans to adapt more flexibly to developing situations, I’ll just let up. I’ll self-talk as though I’m addressing a team, “Not everything is within our control. We’ll cross that bridge when we come to it. Let’s deal with it as it appears and course-correct.” Beyond that, I’ll get really busy with something else that keeps me too occupied to fret about the previous thing that worried me.

How to … Plan in a Time of Uncertainty

January 25, 2023 By Nagesh Belludi Leave a Comment

In periods of uncertainty and ambiguity, move away from annual plans and focus on the next three months. Reflect on the unpredictability of the future and stay on your toes by forging plans for unexpected scenarios so you won’t be caught flat-footed when that time comes.

Establish “trigger points” and “accelerate, maintain, or terminate criteria” in advance and keep an eye on key indicators to “wait and see” or “stay the course” should one of your planned-for scenarios materialize.

Idea for Impact: When the horizon is much shorter, operate with agility and allocate your resources in real time.

Our 10 Most Popular Articles of 2022

December 30, 2022 By Nagesh Belludi Leave a Comment

Here are our most popular exclusive features of 2022. Pass this on to your friends; if they like these, they can sign up to receive our RSS feeds.

Choose a better response. Don’t accept reflexive reactions. Instead, learn to know there is a “space” before responding.
To be more productive, try doing less. The best way to get lots of things done is to not do them at all.
The good of working for a micromanager: be aware of the details your manager cares about and expect to learn a lot.
A hack to resist temptation: commit to not giving in for 15 minutes. Even a simple distraction can break the trance.
Get good at things by being bad first. If you aren’t willing to be bad initially, you’ll never get started on anything new.
Get rid of relationship clutter. Make room for more supportive and nurturing relationships.
Don’t be a prisoner of the hurt done to you. While you are the victim of another who has caused you some suffering, she herself is also a victim of suffering.
Nothing like a word of encouragement to provide a lift. Everyone needs hope. Look for honest ways to offer even a little nudge of encouragement.
The secret to happiness in relationships is lowering your expectations. You’d be happier to accept other people’s difficult behaviors when you expect less from them.
Cancel culture has a condescension problem. If we can’t stand up for the right to speech that we dislike, why keep the right to the speech we do like?

And here are some articles of yesteryear that continue to be popular:

We wish you all a healthy and prosperous 2023!

“Fly the Aircraft First”

December 29, 2022 By Nagesh Belludi Leave a Comment

Today is the 50th anniversary of the Flight 401 disaster. I’ve previously cited how the crew of the ill-fated Eastern Airlines Lockheed L-1011 got so single-mindedly preoccupied with tackling a nose landing gear indicator light malfunction that they didn’t pay attention to the fact that their airliner was descending gradually into the Florida Everglades.

In summary, the pilots were too distracted to fly the aircraft. Human factors, specifically cognitive impairments, can precipitate distractions away from vital tasks.

The incident led to a breakthrough called Crew Resource Management (CRM.) This “human nature innovation” actively orients pilots to prioritize tasks in order of operational safety. The adage “Aviate, Navigate, and Communicate (A-N-C)” reinforces the ‘fly the aircraft first’behaviors until they’re internalized and become routine.

The top priority—always—is to aviate. That means fly the airplane by using the flight controls and flight instruments to direct the airplane’s attitude, airspeed, and altitude. Rounding out those top priorities are figuring out where you are and where you’re going (Navigate,) and, as appropriate, talking to ATC or someone outside the airplane (Communicate.) However, it doesn’t matter if we’re navigating and communicating perfectly if we lose control of the aircraft and crash. A-N-C seems simple to follow, but it’s easy to forget when you get busy or distracted in the cockpit.

Idea for Impact: “Fly the aircraft first.” Know when to set aside the seemingly important things to accomplish the more vital ones.

Be Smart by Not Being Stupid

December 12, 2022 By Nagesh Belludi Leave a Comment

No superhuman ability is usually required to dodge the many foolish choices to which we’re prone. A few basic rules are all that’s needed to shield you, if not from all errors, from silly errors.

Charlie Munger often emphasizes that minimizing mistakes may be one of the least appreciated tricks in successful investing. He has reputedly credited much of Berkshire Hathaway’s success to consistently avoiding stupidity. “It is remarkable how much long-term advantage we have gotten by trying to be consistently not stupid instead of trying to be very intelligent.” And, “I think part of the popularity of Berkshire Hathaway is that we look like people who have found a trick. It’s not brilliance. It’s just avoiding stupidity.” They’ve avoided investing in situations they don’t understand or summon experience.

As a policy, avoiding stupidity in investing shouldn’t mean avoiding risk wholly; instead, it’s taking on risk only when there’s a fair chance that you’ll be adequately rewarded for assuming that risk.

Idea for Impact: Tune out stupidity. Becoming successful in life isn’t always about what you do but what you don’t do. In other words, improving decision quality is often more about decreasing your chances of failure than increasing your chances of success.

Change Your Mindset by Taking Action

November 17, 2022 By Nagesh Belludi Leave a Comment

While it is helpful to be motivated and get into the right mindset to, say, exercise, it’s far easier to just show up at the gym and get started on a small quest, even when you don’t really feel like doing it. You’re likely to habituate to new behaviors in a way that circumvents your innate resistance to change.

Minor adjustments can add up and make a big difference. As Harvard psychologist Susan David writes in Emotional Agility: Get Unstuck, Embrace Change, and Thrive in Work and Life (2016,)

Traditional self-help tends to see change in terms of lofty goals and total transformation, but research actually supports the opposite view—that small, deliberate tweaks infused with your values can make a huge difference in your life. This is especially true when we tweak the routine and habitual parts of life, which then afford tremendous leverage for change.

Idea for Impact: Waiting for the right mindset to “show up” can be a losing strategy. Taking action is often easier than controlling your mental state. Don’t overly focus on the very thing that’s harder to control. Take the next baby step forward.

Books in Brief: “Hell Yeah or No” Mental Model

November 15, 2022 By Nagesh Belludi Leave a Comment

American entrepreneur and blogger Derek Sivers popularized the “Hell Yeah or No” mental model (YouTube Synopsis): unless you’re super excited about something, don’t commit to it.

If you’re ready to say ‘yes’ to the things that aren’t that great, you won’t have time, energy, and focus for the “hell yeah” stuff in your life. Sivers has summed up,

We tend to say yes to too many things. And because of this, we’re spread too thin. We’re so busy doing average things that we don’t have time for the occasional great thing.

So instead I propose raising the bar as high as you can, so that if you’re feeling anything less than, “oh, hell yeah, that would be amazing,” then just say, no.

By doing this, you will miss out on many good things, but that’s okay because your time will be quite empty. So then by saying no to the merely good things, you’ll have the time and the energy and the space in your life to throw yourself in entirely when that occasional great thing comes up.

Recommendation: Read this insight-dense book. The “Hell Yeah or No” mental model will reframe how you control impulses and consider life’s big decisions.

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