How to Make Far Better Decisions

So you have a big decision looming, and you want to do the right thing? Too bad. Just by being human, you’re handicapped by numerous elements that cloud your judgment and push you away from a logical decision.

Don’t believe me? Here are some of the most important obstacles you must avoid…

Your own biases: You were raised in a solidly (liberal/conservative) household. You were taught that (young/old/poor/rich) people were irresponsible or insensitive. You’ve long been slightly suspicious of (men/women) who are too (warm/distant). You prefer numbers over anecdotes, or may it’s anecdotes over numbers.

You trust your gut.

You don’t trust your gut.

Everyone has biases. If you claim that you don’t, that simply means you are one of those especially vulnerable people who does not understand his or her weaknesses.

The better you understand your biases, the better able you will be to overcome them when making a critically important decision. So figure out what causes you to lean in a certain direction, and engage advisors who can nudge you the other way. 

Who you like best: When you walk into some businesses, pretty much everyone looks and acts the same. To generalize a bit, imagine a bunch of white guys sitting around a table talking about the Yankees, and you get the idea. It’s ridiculously easy to fall into a pattern in which you hire and trust people who come close to being your clone.

The more you do this, the more vulnerable you become. The world is far more complex than this, and by associating only with people you like, you are missing the substance of why the business world works the way it does.

Socialize with your friends, but work with the people who are the very best at their jobs.

P.S. It’s highly rewarding to socialize with others who have diverse experiences, otherwise you will be bored to tears by the time you turn 40 or 50.

Groupthink: “Everyone knows the stock market is the best investment these days,” a friend might tell you. Should you listen? Interest rates are close to zero, and the market keeps going up.

Why is the market a good — or even safe — investment? Do you know? Do you understand how it really works?

Unless you understand the critical elements around a decision, the odds are you are simply doing something because others would make the same decision because they, too, sense that others would make the same decision.

This often works, but sometimes you can get crushed. If you don’t believe me, look up the Great Recession of 2008.

Rush to judgment: Business today is all about speed and flexibility. You have to be nimble and responsive, right?

Well…

Speed is only a positive if you are moving in the right direction.

When you act without enough facts, you run the risk of going full speed ahead off a towering cliff. Recognize your biases, compensate for them, dig past groupthink, and you are almost ready to make a wise decision.

Conventional wisdom: Pretty much every big success you can name owes his or her achievements to the ability to look past conventional wisdom. There was a time that Warren Buffett seemed irrelevant in the face of the dot-com boom, but he ignored the new CW and kept making big money in the process.

CW will lead you to average performance. It is the safe choice, but not necessarily the right choice. Before you go along with conventional wisdom, ask yourself this: Will I be happy with an average result?

Bruce Kasanoff is a social media ghostwriter for entrepreneurs, investors, and innovators. Learn more at Kasanoff.com. 

An earlier version of this article appeared in Forbes.