Making an important decision is never easy, but making the right decision is even more challenging. Effective decision-making isn’t just about accumulating information and going with what seems to make the most sense. Sometimes, internal biases can impact the way we seek out and process information, polluting the conclusions we reach in the process. It’s critical to be conscious of those tendencies and to accumulate the sort of fact-based and unbiased inputs that will result in the highest likelihood that a decision actually leads to the desired outcome. In this video, Michael Mauboussin, Credit Suisse’s Head of Financial Strategies, lays out three steps that can help focus a decision-maker’s thinking.

Make the Right Choice: Three Steps to Effective Decision Making

Category: Psychology, Video

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2 Responses to “Mauboussin: Three Steps to Effective Decision Making”

  1. Manofsteel11 says:

    Great points.

    Having said that, Credit Suisse is cutting jobs and it’s stock has not done so well… Makes one wonder if there is more to it…

    My questions:
    a) how does one find effective talented experts who are great at analyzing AND facilitating the execution on the 3 points the presentation makes?
    b) what makes the interpretation of underlying causes, unbiased forecasts and well-focused recommendations translate into (1) buy-in across echelons and (2) lead to top-notch implementation delivering bottom line results?
    c) statistically, how often can such a strategic approach work when pre-planned as opposed to opportunistic ad hoc reflection on the causes of change?

    As somebody who has been involved in a number pre-planned paradigm shifts and business model innovation, I would say that it is rare to find professionals who can systematically and consistently re-conceptualize, articulate, build the necessary coalitions and enable the execution of such transformation.

  2. mpetrosian says:

    He reminds me of professors that really cared and made an impact on me. Another guy I’d do anything to smoke a J with.