Bad Decisions: Why Do We Choose Wrong?

Making the right decision is as difficult as it is essential to move forward effectively. A poor decision in a company, at a specific moment and within a few hours, can undo days of work. Bad decisions made by top management have even led to the downfall of leading companies that once seemed unbeatable.

That’s why it’s so important to make a good decision every time we face a challenge or opportunity. But we don’t just face the difficulty of choosing well; we also need to make too many decisions about too many things throughout the day. Therefore, a good decision is not only the result of knowledge and experience, but also of the ability to “trigger” the ideal decision.

Below, we break down the main reasons why we make bad decisions, to help find the path to the right decision. Because everything follows a process, we can make good decisions by cultivating good habits.


1) FATIGUE

It is estimated that we make around 2,000 decisions per day. Most are small issues, like which shirt to wear or which seat to take on the subway. But no one has unlimited mental energy, so this high number of decisions impairs our ability to make them, making it harder to take good decisions on important matters.

How to avoid it:

  • Identify the important decisions you need to make and put them at the top of your priorities.
  • Schedule them during peak energy moments or plan relaxed times to think them through.
  • Eliminate decision-making on basic matters (e.g., create a clothing calendar or breakfast plan to decide only once in a while).

2) DISTRACTIONS

Many of us live in a constant state of distraction. It’s very difficult to focus when we’re continuously bombarded by messages, information, advertisements, and notifications. In fact, our brains need to process five times more information now than in the mid-1980s.

How to avoid it:

  • Set aside time each day to disconnect. Ignore your phone, social media, emails, or news, and simply meditate, walk, or relax.
  • Avoid multitasking. Focus on one thing at a time and finish it before moving to the next.
  • Try a productivity method to help focus on what’s most important at each moment (for example, the GTD Method).

3) INFORMATION

Many bad decisions are caused by a lack of information—or at least good information. Today, lack of information is rarely the problem; the problem is information overload.

How to avoid it:

  • Separate relevant from anecdotal information. You don’t need tons of data to evaluate a situation, just the influential pieces.
  • In business, use tools to find, clean, and analyze data (e.g., Business Intelligence or Business Analytics software).
  • Structure data from different sources to make a specific decision: it should be accessible, understandable, and reviewable.

4) EMOTIONS

Emotions, especially during moments of joy or anger, can impair our ability to make decisions. Emotions can be irrational, which is the opposite of a good decision.

How to avoid it:

  • Step back in emotionally extreme situations. Don’t reply to an email in anger or make a call in a state of euphoria.
  • Find ways to calm your emotions when facing a task or important decision.
  • Maintain emotional balance throughout the day. Certain activities, like physical exercise, can help regulate it even during emotional peaks.

5) PARALYSIS

There’s no limit to the information we can access or the number of decisions we must make. The more information and decisions there are, the longer it usually takes to resolve conflicts. And the longer we wait, the more information comes in and more decisions await.

How to avoid it:

  • Not everything requires detailed analysis. For trivial or recurring decisions, don’t waste time or seek more information.
  • Gather and review the relevant information you need at the moment, and set a deadline to resolve it.
  • Are you the one who must make the decision? If not, delegate.

The decisions we make determine our reality. They dictate what information we process or ignore, influence our energy and efficiency, and shape our relationships. Inevitably, we all make bad decisions every day. But if we’re not aware of the reasons behind them and don’t follow steps to avoid them, a good decision becomes a matter of luck. In this way, the positive impact on ourselves and our surroundings becomes left to chance.

Leave a comment