How often do you make a gut decision and have it play out the way you intended?
One in every five decisions? Five in five?
What about your hit rate when using logical analysis?
Both approaches have a place in decision-making, but what should you consider before deciding which way to go?
Type of environment
Gut decisions are driven by heuristics.
They work better in slow-growth environments, with single-level decision making.
In fast-growth environments there is a second layer to our decisions that relates to growth, making heuristics more hit-and-miss.
So, are you making a decision in a slow or high growth environment?
Reversibility of decisions
Reversible decisions allow for backsies.
This is similar to when you install a system update and experience negative consequences (new bugs or something breaking). The system usually gives you an option to reset to the previous version and undo any damage caused. If a decision can be reversed, this reduces the magnitude of the risk.
With reversible decisions, which way you go depends on how much time you have to make the decision – plenty of time; do the full analysis, short for time; make a gut call. Either way, you can go back and have a re-do.
Using your slow brain to think fast*
Practice makes perfect? No, practice makes fluent!
And fluent makes fast! Once you gain fluency in a logical thinking toolset – any systematic decision-making method – you will have the ability to do a logical analysis very quickly. Kind of like those viral YouTube videos of a girl doing complex math in her head, in a matter of seconds.
In essence, logical thinking becomes your heuristics! (This is the holy grail of decision-making and a source of true competitive advantage)
Our BBIT courses teach fluency in thinking frameworks that that you can use to make better-informed decisions, quicker. Check out our upcoming cohorts if you want the group experience or DIY it with a self-paced course!
*Reference from Thinking, Fast and Slow by Daniel Kahneman where he explains the two systems that govern the way we think and make decisions. One system is fast and intuitive, the other is slower and more logical.
Mirta is a Director of ViAGO Limited, a behavioral science enthusiast, and a mum to three boisterous boys.