OVERCOMING DECISION MAKING BIAS

Have you ever made a decision that, in hindsight, you realized wasn’t the best choice? Maybe it was a snap judgment during a crisis or a decision driven by emotion rather than logic. As leaders, we like to think we’re always making rational, well-thought-out decisions. But the truth is, every decision we make is influenced by factors we often overlook—our emotions and the situations we find ourselves in.

Leadership isn’t just about making the right decisions; it’s about understanding why we make the decisions we do. And often, the answer lies not in the facts or figures, but in the hidden biases driven by how we feel in the moment or the pressures of the situation around us.

In this article, I want to explore the often invisible forces that shape our decision-making and offer some practical advice on how to lead with greater awareness and intentionality.

The Emotional Tug-of-War in Decision-Making

We’ve all been there. You’re faced with a tough decision, and suddenly you feel the weight of your emotions pulling you in one direction. Maybe it’s fear—fear of failure, fear of rejection, or fear of making the wrong choice. Or maybe it’s excitement, driving you to rush into a decision without fully considering the consequences.

The problem isn’t that we have emotions—emotions are a natural and important part of leadership. The problem is that we often let those emotions guide our decisions without realising it.

Consider a time when you were working on a critical project with a tight deadline. You had to choose between two strategies—one that was familiar and comfortable but offered limited potential, and another that was innovative but involved more risk. Even though the innovative option had greater long-term benefits, you hesitated. Maybe it was the pressure of the looming deadline or the uncertainty of the unknown that made you lean toward the safer choice. These are the emotional and situational biases that often slip into our decision-making.

Common Emotional Biases That Affect Leadership Decisions:

1. Fear of Loss (Loss Aversion): We hate losing more than we love winning. This bias makes us hold on to old strategies or projects simply to avoid the sting of failure.
2. Overconfidence Bias: When we’re emotionally invested in an idea or a plan, we tend to overestimate our ability to succeed. We might push forward with a project, ignoring the warning signs, simply because we’re emotionally attached to the outcome.
3. Anchoring Bias: This happens when we rely too heavily on the first piece of information we receive. If the initial data is favourable, we might overlook other important factors, leading to decisions that aren’t fully informed.

Situational Influence: The Invisible Force

Now let’s talk about context. It’s not just emotions that steer us,The situations we’re in—the pressure of a deadline, the expectations of others, the environment we’re operating in—also play a massive role in the decisions we make. The context matters. Where you are, who you’re with, and the pressure you’re under can all skew your perspective.

• Time Pressure: When decisions are rushed, we tend to rely on quick, instinctive judgments rather than taking the time to weigh our options carefully. This can lead to overvaluing immediate rewards and underestimating long-term consequences.
• Groupthink: When we’re in a team or a high-stakes meeting, the pressure to conform can be overwhelming. Groupthink is when we suppress our own opinions and go along with the majority, just to avoid conflict or stand out. We worry about rocking the boat or being seen as the outlier, so we keep our thoughts to ourselves.

How to Lead Beyond Bias: Steps for Better Decision-Making

As leaders, our role is not just to make decisions but to make better decisions. So, how do we lead in a way that transcends these biases?

Here are a few ways to navigate emotional and situational biases:

1. Recognise the Biases: The first step in overcoming emotional and situational biases is simply to recognise them. Ask yourself: Am I making this decision because it’s the best choice, or because it feels emotionally easier right now? Am I reacting to the situation, or am I leading with intentionality?
2. Pause and Reflect: In moments of high pressure or emotion, take a step back. Give yourself time to reflect. What’s really driving your decision? Are you making a long-term choice, or simply reacting to the moment? The best decisions often come not from rushing to act, but from taking the time to think.
3. Seek Diverse Perspectives: One of the most effective ways to overcome bias is to seek out different perspectives. Surround yourself with people who think differently from you—those who aren’t afraid to challenge your ideas. When you hear multiple viewpoints, you’re better able to see beyond your own biases.

At the end of the day, leadership is about making decisions that align with your purpose. But to do that, we need to be aware of the forces that are shaping our decisions. The truth is, emotions and situations will always play a role in our decisions. The goal isn’t to eliminate them—it’s to recognize them. We need to be honest with ourselves about the emotions we’re feeling and the pressures we’re facing.

When you lead with that kind of self-awareness, you’re not just making decisions—you’re making purpose-driven decisions that align with your long-term goals.

Nothing in life is as important as you think it is, while you are thinking about it - Daniel Kahneman