When making a decision, it's important to recognize the traps you're likely to fall into and avoid them. For example, the status quo trap occurs when decision makers tend to favor alternatives that will maintain the status quo rather than those that will improve it. In this case, it's best to seek advice from objective sources and delegate the decision making process to someone else.
Overconfidence trap--A decision maker can fall into this trap by being overconfident in his ability to make accurate estimates. This can lead to costly errors of judgment. For example, a manager may make an optimistic estimate of the time required to complete a renovation project. However, he or she might not have enough knowledge to determine whether the estimate is realistic.
Hidden Decision Traps--These traps can lead to poor decision making. These mistakes can have a high impact on an organization. The wrong decision can lead to high costs and loss of business opportunities. The authors of Decision Traps suggest that it's important to have policies in place to guide decision-making.
Reframing--The most common mistake that many people make is to rely on information that confirms their current point of view. This is also known as the status quo trap. When this occurs, people tend to ignore information that contradicts their current viewpoint. This can lead to polarization and, ultimately, make it impossible to make rational decisions.
Reframing--In a situation where a decision must be made, it's best to analyze the alternative options that are available to you and your team. For example, maintaining the status quo might be the right decision, but if you're planning an acquisition strategy or succession planning, you might want to consider exploring other options.
Framing--Framing the question you're faced with will significantly impact your choices. It's critical to remember that the frame you create will greatly influence your choices, so it's critical to try and reframe the problem in a neutral or redundant way. By doing so, you'll avoid biases and embrace a wider range of reference points.
Failure to Keep Records--Failing to keep track of your decisions is another common mistake. Not only does this approach result in poor evaluation of issues, but it can also lead to inaction. This can cripple an organization's ability to make the right decisions.