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How we make decisions

If you’re running a business you’re constantly making decisions. We tell ourselves that we make good decisions when we have clear goals, act logically and set our emotions aside.

Most of us like to think we’re capable of making rational decisions, but the truth is that although we are, most of the time we don’t.

Professor Daniel Kahneman of Princeton University and his late colleague Amos Tversky discovered that we have two ways of thinking, logical and intuitive, and that logical thought uses a lot of energy and is slower, while our intuitive mind is faster and almost automatic.

We tend to think that customers make decisions based on the story we tell – but we do, too.

Some of the best-presented logical decisions are based on gut feelings. If we spend so much time working on the story we tell our customers, why shouldn’t we spend the same amount of time or more to find out what story we tell ourselves about our product or business, so we can understand better how we make decisions?

What if we find that we’re not so rational at the end of the day? Learning the story behind your decisions will help you make better decisions.



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