The Art of Decision-Making

Decisions and the Stories We Tell Ourselves: Why People Hesitate to Make Decisions in Business

Hello beautyfull People,

After starting my international business in Dubai, I noticed something interesting: Many of my entrepreneurial contacts come to me seeking answers and advice, but once they have those answers, they often fail to make a decision. This got me thinking. Why is that?

I wondered if I might be the reason for their hesitation. But then, I frequently encounter people who tell me, "Wow, look how far you've come in just two years!" I gratefully accept this reflection and realize: Yes, I have given it my all. Even during times when I felt a bit lost, questioned my own goals, and felt like I was in a fog, I still made a decision. I believe that is the most important thing in life.

We all know the feeling: a decision needs to be made, and suddenly countless reasons emerge for why this decision cannot be made right now. Whether in business or in personal life, decisions are often challenging. In this newsletter, we want to focus on the stories people tell themselves to avoid making decisions. We will explore the psychological reasons behind these stories and learn how to overcome these blockages.

The Stories We Tell Ourselves

People are masters at creating stories to avoid making decisions. These “bullshit stories” are often subconscious and serve as a defense mechanism to avoid uncertainty and fear. (Don't Miss out the Live SKILLOnAir on Wednesday to this?) Some typical stories often told in business are:

• “It’s not the right time.” Many believe they need to wait for the perfect moment to make a decision. However, in most cases, there is no perfect time – this story is just an excuse to avoid responsibility.
• “We don’t have enough information.” This is one of the most common excuses. Of course, information is important, but often this is used as a pretext to delay decisions. Complete information is rarely available, and decisions often have to be made based on incomplete knowledge.
• “It could go wrong.” The fear of failure is a powerful motivator to avoid making decisions. This story is based on the assumption that security is more important than progress, which often leads to stagnation.

Psychological Reasons for Hesitation

Why do people tell themselves these stories in the first place? The reasons are varied and deeply rooted in our psychology:

• Fear of Change: Change brings uncertainty, and many people prefer the status quo, even if it is suboptimal. Changes often mean we have to adapt to new circumstances, which can cause discomfort.
• Loss Aversion: People tend to weigh losses more heavily than gains. This means that the fear of losing something is often greater than the potential gain. This loss aversion leads to avoiding decisions where there is a risk of loss.
• Diffusion of Responsibility: In groups, people tend to delay decisions because they can share the responsibility. If no one is solely responsible, the decision is often postponed or not made at all.

Ways to Overcome Decision-Making Blocks

Now that we understand the stories and the psychological backgrounds, the question arises: How can we overcome these blocks and make better decisions?

• Encourage Self-Reflection: A first step is to become aware of the stories we tell ourselves. By asking whether these stories are actually true or just excuses, we can start thinking more clearly.
• Take Small Steps: Big decisions can be overwhelming. Instead, it can help to break big decisions down into smaller, manageable steps to reduce the fear of the unknown.
• Create an Environment of Accountability: A corporate culture that emphasizes clear responsibilities and accountability helps promote decision-making. When employees know that their decisions are valued and supported, they are more likely to take responsibility.

Wolfgang Grupp’s Story: An Example of Decisive Action

An outstanding example of decision-making in business is Wolfgang Grupp, the CEO of Trigema. Known for his clear views and leadership strength, Grupp has repeatedly shown throughout his career how important it is to act quickly and decisively – even when not all information is available.

The Story of the Midnight Decision

Grupp shares a vivid story that illustrates his philosophy: "Anyone who comes to my desk gets an answer." This expresses that decisions must be made immediately to keep operations running and avoid uncertainty.

He describes a situation where he comes home at night and receives a call from the dye works: "There are five tons of raw material, and we don't know how to dye it." Instead of deferring responsibility or postponing it, Grupp immediately gives an answer: "Green."

The dyer returns to the department and begins dyeing the fabric green. A few hours later, Grupp realizes that he actually needs red fabric for a specific customer. He calls the dye works again and orders them to dye some fabric red as well. This results in a double benefit: By the end of the day, Trigema has both green and red fabric that they can use or sell.

With this story, Grupp shows that it is more important to make a decision than to remain paralyzed by the fear of making a wrong one. Even if a decision turns out to be less than optimal, the company has still gained something. In his philosophy, not deciding means "getting nothing."

What We Can Learn from Wolfgang Grupp jun. 's Father

I met Wolfgang Grupp himself 2022 in Dubai live and this story showed me again, that making decisions – even under uncertainty – is a central aspect of successful leadership. Here are the key lessons:

• Decisions Must Be Made: Hesitation and uncertainty can paralyze operations. A quick decision, even without perfect information, ensures that the company remains operational.
• Accept and Adjust Mistakes: Grupp also shows that it is okay to make mistakes. The ability to correct decisions and adapt to new insights is crucial.
• Clarity and Leadership: A clear leadership style and the willingness to take responsibility create trust and foster a culture of action within the company.

Grupp's approach demonstrates that effective leadership often means having the courage to make decisions in uncertain times and to bear the consequences while also being willing to learn from these decisions and continue to evolve.

Conclusion: Making Decisions – A Path to Greater Success

Making decisions requires courage and confidence. It means facing one's own fears and breaking through the stories we tell ourselves. In a business environment, this can make the difference between success and failure. Let us all be encouraged to be bolder and make decisions that foster growth and innovation.

Thank you for reading, and see you next time!

Best regards, Angela Thomas.

P.s. did you discovered your own bullshit-story? I will Reveal my very personal own bullshit story from my foggy-days in Dubai in the Live on Wednesday. Let me know if you find excuses of your own or from your Clients and share in a comment.

P.p.s. of course I highly appreciate if you share this newsletter with those who might want to overcome this very reason of stagnation.