Podcasts Business Onward Nation Episode 980: The science of decision-making in the new abnormal, with Dr. Gleb Tsipursky

Episode 980: The science of decision-making in the new abnormal, with Dr. Gleb Tsipursky

Published: Dec. 2, 2020, 9 a.m.

Avoiding business mistakes using the science of decision-making What You Will Learn:

  • How Dr. Gleb\u2019s family life as a child informed his decision to study the behavioral science of risk-taking and decision-making in his career
  • How Dr. Gleb\u2019s work lies in helping business owners identify and recognize the negative patterns within their decision-making processes that lead to\xa0business mistakes
  • How the \u201cgut instincts\u201d humans developed during our tribal stage of evolution often conflicts with the decisions we have to make in our modern world
  • How our tribal instincts sometimes lead us to unfounded cognitive biases that lead us to make decisions that make little sense for our businesses
  • Why entrepreneurs often lean toward \u201coptimism bias\u201d, and how that optimism bias can negatively impact their decision-making and risk-taking
  • What steps entrepreneurs can take to avoid making decisions based on optimism bias, and what key five questions you should ask yourself to make decisions more effectively
  • Why resilience is the key to dealing with the long-term, lasting effects of the global pandemic and the chaos it has brought to business owners
  • Why the ongoing global pandemic is the \u201cnew abnormal\u201d, and why our lives will likely be disrupted for as long as seven years until we\u2019re back to normal again
  • Why the logistics of the vaccines currently in development mean that even once a vaccine is created it will take a long time to deploy to a critical mass of the population
Avoiding business mistakes using the science of decision-making

Believe it or not, cognitive science can help us make better business decisions and avoid costly business mistakes. Dr. Gleb Tsipursky is a behavioral economist and cognitive neuroscientist who is an expert at helping business owners recognize and overcome their internal \u201ccognitive biases\u201d. In this episode of Onward Nation, Dr. Tsipursky explains the science of decision-making and shares how our tribal instincts often lead us to make the wrong \u201cgut decisions\u201d. He outlines a realistic timeline of the global pandemic and shares tips and strategies for better judgment and taking the right risks while avoiding the wrong ones so that your business can navigate the pandemic and come roaring out the other side.

The science of avoiding business mistakes and making better decisions

By our nature, most entrepreneurs are predisposed to see things from a more optimistic perspective. While this isn\u2019t inherently a bad thing, it can cause us to take unnecessary risks with our businesses. As Dr. Tsipsurky explains, many of the decisions we make are informed by \u201ccognitive biases\u201d, subconscious thought processes left over from mankind\u2019s early, tribal stage. These gut feelings are often ill-equipped to handle the complexities of modern life, yet we are inclined to \u201clisten to our gut\u201d even when it is leading us in the wrong direction. However, by asking ourselves the right questions, we can avoid the trap of the various kinds of cognitive bias that color our decisions. The five key questions Dr. Tsipsurky shared are:

  • What evidence didn\u2019t I take into account, and what information didn\u2019t I consider?
  • What dangerous judgment errors might be in play in this situation?
  • What would a trusted and objective advisor tell me?
  • How have I addressed all the ways this could fail?
  • What new information would cause me to change my mind?
The \u201cnew abnormal\u201d of the global pandemic

One of the most pronounced ways \u201coptimism bias\u201d expresses itself can be seen in how we view the global pandemic. Many people are inclined to hold steady and \u201cwait out\u201d the crisis, but as Dr. Tipsursky explained during the interview, the reality is that the chaos and changes wrought by the pandemic are likely to be with us for a long time. Due to the logistics of developing, storing, deploying and administering a potential vaccine, the challenges we are facing today are very likely to be the \u201cnew abnormal\u201d for the next several years. As business leaders, it is important to accept this and begin planning long-term strategy around the new reality of business. While an end to these challenging times is certainly in sight and offers hope for a bright future, businesses must be prepared to navigate the many challenges they face in the meantime. The steps entrepreneurs take today can help their businesses reach the light at the end of the tunnel even stronger than before, but only if we make the right decisions through clarity and intentionality.

How to Connect with Dr. Gleb Tsipursky: Additional Resources: