Nobel Prize-winning psychologist to CEOs: Don’t be so quick to go with your gut
Taking a more disciplined approach to decision-making won’t be easy for many executives. “It’s quite hard because you tend to form a global impression unless you make a special effort not to form a global impression,” Daniel Kahneman said.
“One of the essential purposes of MAP is basically to delay intuition,” Kahenman said in a recent interview with The Post and his co-author Sibony. The structured process calls for analyzing a decision based on six to seven previously chosen attributes, discussing each of them separately and assigning them a relative percentile score, and finally, using those scores to make a holistic judgment.
“When you’re making an important decision, any option is like a candidate,” he said. “You should think of what are the essential dimensions that would make a difference between a good option and an option that should be rejected, and you should look at those dimensions one at a time.” Sibony, a former leader of McKinsey & Co.'s corporate strategy practice and now an affiliate professor at HEC Paris, said that while many companies have detailed processes in place for making lower-level decisions, ones made at the higher level can be subject to more gut-based instincts.
“They are made at the top of the organization," he said,"and if you are at the top you tend to trust the other people who are at the top,” unlike on decisions that are delegated to underlings. One example comes from Kahneman’s own career, and goes back more than 60 years. When serving in the Israeli army, Kahneman came up with a new way to help predict who might make a good combat soldier.
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