Decision Making: The Power of Confidence - Coggle Diagram
Decision Making: The Power of Confidence
Connection between emotion, decision making, and decision confidence
Three phases of structuring a decision
Techniques to structure a decision.
Q: Is emotion detrimental or
good for decision-making?
Emotion is bad because it will give rise to a whole host of biases
(First impression, Recency)
Sticking to the decision (being decisive), being confident
about the decision for which emotion is good
Confidence is a
double edged sword.
Persuasive, inspiring and engaging
All the signals suggest that you need to revisit the decision,
but you will begin to throw good resources
after what is turning out to be a bad decision.
Emotion is critical for decision confidence
Strong positive emotion
Not becoming rational
Even if you're having advantage of price, numbers, etc.,
never ever lead the chart with price and numbers.
This will make the buyer as rational
You will be more effective by
creating an emotional connection with the customer.
Once the emotional connection is made,
presenting price will get rationalized in your favor
Customer Value Propostion
Interesting finding: Beta is bigger for B2B as compare to B2C
Beta (Weightage to Emotion) depends on couple of factors
How important is the decision?
greater the importance, the bigger is the Beta
what is the degree of conflict?
greater the conflict, the bigger is the Beta
Vb (Value from benefits)
Vp (Value from price)
Weightage (Beta) associated with each factor
Structuring the decision
Emotion is detrimental while making the decision
because it will give rise to a whole host of biases.
while making the decision,
we need to keep emotion out of the picture as much as possible.
In order to emerge from the decision being confident and decisive,
emotion is beneficial.
One needs to know how to structure the decisions and
know how and when to pull the 1. rational lever and the 2. emotional lever.
(due diligence phase)
Keep emotion out
By converting everything into numbers
determine the weights for each criteria
Determine the threshold for an option to qualify.
Adopt rules to make the final decision
Invoke emotion to emerge
from the decision feeling confident.
How do you do that?
Imagine total success.
Emotional lever to remain confident about the course of action
Rational lever to evaluate the decision based on criteria that were determined before you made the decision.
Remember that in the real world there's no such thing as making the right decision, after all, you're dealing with too many uncertainties and ambiguities.
It is impossible to make the right decision, so don't fret about it, just make the decision and then make the decision right.
But to make the decision right, you need to be confident about the decision and confidence is rooted in emotion.