6 Reasons We Make Dumb Decisions – and Fixes for Each

Why do we make dumb decisions sometimes — ones we regret after they’ve played out?

The answer is this reassuringly simple: No one’s perfect. Everyone makes mistakes.

Great leaders — from front-line managers to the CEO — try new things and push boundaries.

They make mistakes. And that’s how they learn what works and, more importantly, what doesn’t.

What Works After Dumb Decisions

Here’s what most great leaders have in common: They don’t dwell on the failure. Instead, they see it as a stepping stone to bigger and better things.

On the other hand, leaders who stick with the status quo and don’t experiment, usually become stagnant and ineffective.

So why do some leaders make more than their fair share of bad decisions? And why don’t they learn from those and charge ahead.

There are a lot of reasons this happens. But these are the most common reasons we make dumb decisions. We’ve included tips on how to avoid them.

1. We Rely Too Heavily on Past Experience

Experienced leaders add a lot to a company, but only if they can adapt their experience and apply it to new situations.

Just because an approach worked in the past doesn’t mean it’ll work again. That would mean all things involved remained the same. And that doesn’t happen often … or ever!

Leaders who make bad decisions use the same data and/or way of doing things that worked in the past are destined to go wrong.

The reason: They’re based on old assumptions that no longer exist. They don’t look for better ways or answers.

2. We Let Loyalty Blind Us

It’s great to work with people you like. But leaders need to make unbiased decisions when it comes to staff, vendors, etc.

Blind loyalty causes leaders to overlook problems, even when others see them vividly.

This can affect decisions in a negative way because you may keep someone who isn’t working out and let someone go who is.

And it can cause resentment among others, making anyone a less effective leader.

3. We Think Too Highly of Ourselves

When leaders make decisions based on their personal preferences instead of what’s best for the situation, the results usually aren’t good.

Again, all the factors affecting the situation need to be taken into consideration for that specific time and place.

When leaders have a very high opinion of themselves, they don’t account for everything because they might feel they don’t need to since everything is going well.

And when their decisions go bad, they blame it on other people because it couldn’t possibly be their fault.

Their arrogance also causes them not to listen to the people around them, especially if those people have conflicting opinions.

4. We’re Too Lazy to Do the Work

Bad decision-making also comes from laziness.

If leaders aren’t willing to do the work, check data, gather additional information, etc., there’s very little chance the outcome will be a successful one.

If all the pieces of the puzzle aren’t gathered, we don’t have a complete picture and can’t make an educated/smart decision.

5. We’re Indecisive or We Overthink Things

While some leaders think they know it all and don’t need help, there are those who listen a little too much, study the data a little too long and overanalyze everything.

This indecisiveness can also lead to bad decisions.

Wait too long to make a decision and the opportunity is gone. Overthinking causes confusion, which clouds judgment.

6. We Lose Sight of the Mission, Lack Purpose

Leaders who lose touch with their core values also make bad decisions.

Clarity of purpose allows leaders to see the mission at hand and act accordingly. They see the company’s mission and can align it with their own.

But when leaders lose sight of their core values, they make decisions without the resources they need to do so soundly and fail to align issues with the company’s overall strategy.

How to Avoid Making Bad Decisions

So how do you go about making as few bad decisions as possible?

• Be open-minded. Leaders who are effective and make far fewer bad decisions, first and foremost, are open-minded. They don’t have a “my way or the highway” attitude. They listen to others, weigh their options and decide from there what to do.
• Own up to mistakes. If you still make a mistake, own up to it. Don’t blame someone else. They take responsibility for their decisions and figure out what went wrong so they don’t make the same mistake in the future.
• Surround yourself with good people, not “yes people.” Good leaders know they need people who will challenge their opinions and aren’t afraid to disagree with them. When people are bobbleheads and just nod in agreement, only the leader’s opinion is ever heard. Good decision-makers need smart, strong people around them to present alternative ideas that may work better.
• Have a backup plan. Looking at the “what ifs” isn’t a bad thing, as long as you don’t get stuck in them. They allow you to switch directions in midstream if things start heading south.