Bad Decisions Don’t Just Happen - Michael Hyatt

Critical thinking, logic and reasoning are crucial elements of a decision, and sometimes get skipped due to our initial excitement coupled with intuition.

We fall into three basic traps of bad thinking, leading to wrong and often costly decisions: The Rosy Scenario Trap, The Wrong Ingredient Trap and The Binary Thinking Trap.

Any overly optimistic, idealistic or ‘positive vision’ decision can be a red flag of non-effectiveness.

Simply believing in a product does not guarantee high revenue. One has to get ‘nosy’ and not just ‘rosy’ in order to get towards reality.

While enjoying a ride in the sailboat of success, one can sometimes wrongly identify the ingredient that is responsible for the great outcome.

Misidentification or a wrong assumption of the key success ingredient is an easy mistake to make, and one has to do objective research to avoid major losses of a failure.

Decision-makers sometimes self-limit the available choices, making them fall into two extreme, oversimplified alternatives. The reason for this is the desire to be action-oriented and efficient.

Leaders need to understand that probability of the choices being simply 0 or 1 is rare, and there have to be more alternatives if they do the required critical thinking, which would lead to effective outcomes.