Applied Financial Planning

How does it feel to be wrong?

BY   |  FRIDAY, 24 MAY 2024    8:00AM

Effective team decision-making hinges on a leader's skill in creating an environment where employees feel empowered to think differently and express divergent views. For business owners whose competitive advantage is their ability to out-think the competition, such skills need to be better understood.

It starts with learning how to think better in a team environment and for leaders, avoiding the default of 'trusting your gut'.

How does it feel to be wrong?

What does it feel like when you recognise that you were wrong - for instance, in drawing an incorrect conclusion? If you are running a business, you most likely understand the power of teamwork when working through problems and looking for creative solutions.

However the power of team-based decision-making stems from the team members and how that team approaches the thinking process - and this depends on the culture that the leader allows to exist.

Pitfalls for team decision-making

The following outlines a process for poor team decision-making:

Start with the assumption that the majority view is correct.

  • Support this assumption by concentrating on the issues the majority is focused on.
  • Actively search out information that corroborates this view.
  • Filter the discussion through this narrow perspective, without looking for the bias in the way the issue is being framed.
  • Avoid considering alternative views.
  • Look for ways to convince yourself of the truth of the decision you are supporting.
  • Where possible, seek to reinforce the group dynamic with known or malleable personalities.