The Hidden Traps In Decision Making Analysis
Noteworthy is the following “When it comes to business decisions, there’s rarely such a thing as a no-brainer. Our brains are always at work, sometimes, unfortunately, in ways that hinder rather than help us. At every stage of the decision-making process, misperceptions, biases, and other tricks of the mind can influence the choices we make. Highly complex and important decisions are the most prone to distortion …show more content…
In my profession, the military and contract security operations (as well as each of your own individual professions), decision-making skills are one of the most important attributes that we can possess.
Wouldn’t you be more susceptible to a psychological trap “if” you could be manipulated quite easily? Psychological aspects, biases are all compounded by emotions, so therefore the ability to control one’s own emotions would factor into the equation.
As for examples of traps that we may have observed, the sunk cost trap was one that is quite common. I vaguely remember when I was working with International Wire and they were moving a particular manufacturing line to Durango, Mexico. The lines was operating, but had continuous manufacturing issues, customers were rejecting delivered wire (we had to restart our lines to accommodate orders) and demanding that they receive “no” wire from the Durango facility. We constantly sent individuals (technicians/supervisors) to their facility to attempt to remedy the situation without success. One key factor was the high turnover rate of personnel at the facility, but International Wire kept on pumping money into the facility. The project was started to lower costs in a move south of the border, and even though the outcome was not moving along as expected, they continued to invest in the facility in an attempt to justify their decision to move operations into a cheaper