Monday, December 24, 2012

Leaders think twice.


Our situation influences our decisions enormously.  One of the mistakes leaders make is the belief that our decisions are independent of our experiences.  ~Michael J.Mauboussin from Think Twice

While glancing through Michael J. Mauboussin’s book, Think Twice, I came across a study that I found fascinating.  The purpose of the study was to determine to what extent the situation and our experience influences our decisions. 

In a store that sold wine they had a display of French and German wine, the two wines were displayed next to each other.  For two weeks, they alternated what music was being played in this section of the store.  On some days the music was clearly French and on others it was distinctly German.  The result: when French music was being played 77% of the sales were French wine, when German music was being played 73% of the sales were German wine.  When questioned following their purchase, 86% of the customers denied that the music had anything to do with their decision.

This same phenomenon has been proven time and again in a variety of studies.  Yet, we still try to deny the conclusion that our experience (or lack of) really does have a significant influence on our decisions.  What if we just accepted this truth?

Reading this study caused me to think about the coming New Year.  What experiences should I intentionally pursue? What situation would enable me to make better decisions?  By better, I mean decisions that encompass a broad range of perspectives and align with my values.

One example that immediately came to mind was the number of clients I've worked with who say that diversity is important.  It may even be one of their espoused values.  However, when you look at their executive team it reflects a very homogenous group of individuals.  Because their experience does not include a great deal of diversity, they continue to make decisions that don’t really reflect diversity as a high priority.  If we want to make decisions differently in the future, then maybe we need to change our situation and expand our experiences.

A number of authors make the case that some of the most effective leaders are always learning something new, moving into a completely different industry, engaging in something others would consider adventurous.  They are constantly broadening their experience and, in a sense, expanding their situation.  Could this rich assortment of experience allow them to approach decisions differently than someone who is living more routine and habitual with a fairly narrow worldview?

If that's the case, then in 2013 what should we be doing to modify our situation or expand our experience?  Who are our primary mentors and confidants, do they need to change to include different perspectives?  What books are we reading?  Or maybe, are we reading?  What authors are we inviting in to our thinking?  When was the last time we learned something completely new and different? 

My intent was not to make 2013 sound daunting; but instead, to think about 2013 intentionally.  To embrace the fact that whatever experiences we choose and situations we create, they will have a significant influence on the decisions we make in the coming year.

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