From Maria Popova in The Atlantic: Legendary Israeli-American psychologist Daniel Kahneman is one of the most influential thinkers of our time. A Nobel laureate and founding father of modern behavioral economics, his work has shaped how we think about human error, risk, judgement, decision-making, happiness, and more. For the past half-century, he has profoundly impacted the academy and the C-suite, but it wasn't until this month's highly anticipated release of his "intellectual memoir," Thinking, Fast and Slow, that Kahneman's extraordinary contribution to humanity's cerebral growth reached the mainstream — in the best way possible.
From Strategy+Business: The decisions made by powerful people in business and other fields have far-reaching effects on their organizations and employees. But this paper finds a link between having a sense of power and having a propensity to give short shrift to a crucial part of the decision-making process: listening to advice. Power increases confidence, the paper’s authors say, which can lead to an excessive belief in one’s own judgment and ultimately to flawed decisions.
From John Tierney in NY Times: Decision fatigue helps explain why ordinarily sensible people get angry at colleagues and families, splurge on clothes, buy junk food at the supermarket and can’t resist the dealer’s offer to rustproof their new car. No matter how rational and high-minded you try to be, you can’t make decision after decision without paying a biological price. It’s different from ordinary physical fatigue — you’re not consciously aware of being tired — but you’re low on mental energy. The more choices you make throughout the day, the harder each one becomes for your brain, and eventually it looks for shortcuts, usually in either of two very different ways.
From FastCompany: Why do you put things off, buy over-priced items, and stick with decisions that aren't paying off? Your strangely wired brain, silly. The author of You Are Not So Smart shows us a few common mental defects, fallacies, and traps to watch out for.
From Stanford: Baba Shiv delves into the surprising workings of the brain during his lecture. "Frinky", a combination of "freaky" and "funky" was an apt descriptor for the mental experiments he describes. Deftly incorporating the anatomy of the brain, Shiv makes the case that emotional responses are vital to responsible decision making, and that -- despite popular belief -- rational thought is perhaps not all it's cracked up to be.
From Seth Godin: Very often, we’re challenged to make decisions with too little information. Sometimes, there’s no information–merely noise. The question is: how will you decide?
From Jeffrey Hollender and Bill Breen in ChangeThis: Corporate responsibility — the notion that companies should include the public interest in all their decision-making — has never been so popular. Nor has it so often proved so phony. Despite the surging interest in conscientious capitalism, there remains a yawning chasm between what companies say they value and what they actually do. Or don’t do.”