Monday, May 27, 2013

Emotional Decision-Making

If you question whether our relationship to our things is emotional, consider for a moment how we talk about the things we own and use.

When was the last time you heard someone say, "I appreciate the utility of this cellular phone" or "The features of this automobile are not the ones I need."

We say "I love my phone!" or "I hate this car!"  And we mean it when we say it.

There is a reason Facebook has you "Like" something versus "Approve" or "Appreciate" something.

There is a reason that so many ads skip facts and details about the product or service.  Instead, they focus on the feeling you will get, or the status you will achieve, if you purchase Product A or use Service B.

We humans are emotionally driven animals.

Even in the costliest decision most of us will make, we base our decisions, when we are honest with ourselves, on our emotional responses.  When my parents made the decision to buy the last house of my childhood, they could tell us about the trees in the backyard and the color of the curtains in the family room - things that excited them emotionally - but they couldn't agree on how many bathrooms there were.

Although we like to pretend differently, emotions also drive decisions in business.  Most often, the reams of analysis and brainstorming ultimately end up supporting an emotionally driven decision.  Despite the window dressing of Gant Charts and regression analysis, decisions are made because "she had a good handshake" or "something in my gut tells me this is going to work" or "this is going to be good for my career" or "if I did that my boss will be angry."

I am not sure that this is a bad thing.  I don't think I want business decisions to be made in a dispassionate, totally data-driven environment.  Too many aspects of important decisions are difficult or impossible to quantify.  Too often, the implications of a decision are complex, multi-level, and involve countless variables.  I believe that our minds use our emotions as a way to summarize the complex morass of decision implications.

After all, think about the array of implications involved with something as simple as buying a pair of shoes.  Will I wear them?  Are they in fashion?  Will they stay in fashion?  Should I be spending this money on something else?  On someone else?  Will these shoes be comfortable?  Will they go with any of my clothes?  Will they last long?  Will they still look good in 6 months?  Do I need to get rid of a pair of shoes if I get these?  Is this store the best place to get these shoes?  Etc.

Imagine the variables and decision impacts around something like opening a new store, or adding a new feature to your widget!  The implications are astounding.

The challenge is to find a balance.  If the emotions that are controlling your business decisions and are mostly driven by self-preservation, it might call to question whether your decisions are as good as they could be for the company.  If your decisions are devoid of emotion (as if that were possible), one would wonder if consideration was given to impacts of the decision on "squishy" things such as employee morale, organizational image and customers' loyalty.

Using data to make decisions, especially big business decisions, is essential and logical.  I guess I would just encourage decision-makers to acknowledge, and incorporate their emotions, or gut, into their analysis.  You are doing it anyway.  You might as well acknowledge it!

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In the United States, today is Memorial Day.  I want to thank all the men and women who have served this country in the military for their service!
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