Have you ever wondered why some people tend to make absolutely irrational decisions? Yet a more difficult question to consider is, has anyone wondered that about you?
Dan Ariely wrote an interesting book titled Predictably Irrational. Ariely is an MIT behavioral economist who in his book “refutes the common assumption that we behave in a fundamentally rational way.” One example he used: why do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin?
We chose to use the word “obstinately” instead, because we have seen far too many business owners and entrepreneurs continue on an irrational course for their business even after seeing clear evidence that their course is wrong. Like the President of a manufacturing company who cut back on his sales staff because of the recession, yet his sales were strong, his competitors weakened by the recession and market research showed there was an opportunity to grow. He believed that he needed to conserve cash during the recession. Ignoring the evidence, he actually lost sales and lost revenue. Talk about notably repositioning your company…just not in the right direction.\
There is a part of us (some more than others) where we are so convinced we are smarter, more insightful, and right that we eschew any rational evidence to the contrary. We are more attached to our position and rightness, than doing the best thing. And we do so to our peril, and unfortunately we often don’t recognize we’re doing it.
Why is it that some people do better than we do when we believe they are nowhere near as smart and savvy as we are? Well, you have it wrong. They are smart and savvy – hard as that might be to accept. Why? Because they take the time to learn to be open to new ideas, new facts, and new ways of looking at issues. Creativity, innovation, and progress are the result of an open mind. Plainly speaking, righteousness and hubris cork growth.
We are, unfortunately, our own worst enemy. And the tragedy – we really don’t want it to be that way. If this describes you, then stop being obstinate, stop thinking you have all the answers and you just know, and start looking at the evidence and take action on it. If you don’t believe this describes you – test it and ask a friend, trusted colleague or advisor and make this decision based on evidence.
Copyright 2010 Kubica and LaForest
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