As we’re battling a virus that scientists still don’t fully understand, watching the stock market sink, then soar, then sink again, and facing a contentious election, the future seems completely unpredictable (instead of merely as unpredictable as it has always been). When we feel such heightened uncertainty, our decision-making processes can break down. We may become paralyzed and afraid to act, or we may act on the basis of bias, emotion, and intuition instead of logic and facts.
How to Make Rational Decisions in the Face of Uncertainty
A four-step approach.
August 28, 2020
Summary.
We’re all used to operating with a degree of uncertainty, but between the Covid pandemic and a contentious election year, 2020 is shaping up to be even more unpredictable than usual. When we feel such heightened uncertainty, our decision-making processes can break down, and we may act based on bias, emotion, and intuition instead of logic and fact. The author offers a four-step framework to pause and assess ambiguous data: 1) Identify which data you’re working with; 2) Recognize which cognitive biases might accompany that data; 3) Invert the problem to identify what you really need to know; and 4) Formulate the right questions to get the answers you need.
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New!
HBR Learning
Decision Making Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Decision Making. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Practical ways to improve your decision-making process.