5.4 All decisions on new opportunities are evaluated against documented criteria | Made to Thrive 32/34
Welcome to video 32 in this series of 34, two minute videos detailing the key concepts in my new book, Made To Thrive.
Made To Thrive outlines the five key roles that a leader must undertake to transition from being a good leader to being a great leader.
Those five roles are accountability, ambassador, culture, strategy, and succession planning.
Today we’re talking about succession planning and in particular, 5.4. All decisions on new opportunities, new staff, or new investments are evaluated against a documented set of criteria.
In a survey of 950 CEOs, the National Bureau of Economic Research discovered that 71% of investment decisions are made based upon the reputation of divisional managers.
Furthermore, they discovered that half of all decisions made by CEOs are based on gut feel.
In his 2017 TED talk, Anil Seth explains that what we observe in the world is not actually reality, but it’s out interpretation of reality and that we make decisions based on a hallucination created by the brain.
There are two main problems here. First, the brain is filtering out thousands of inputs all the time to try to get to what it thinks is important.
Second, the brain is subject to factors that can affect the decision making process, such as emotions, medications, tiredness, or stress.
Therefore we can’t reliably depend on the brain to consistently make the right decisions and we need to invest in a process that will help us to consistently make the right decisions against a set of determined investment criteria.
If you’d like to learn more about Made To Thrive, you can watch all of these videos on YouTube, or you can buy the book now on Amazon and I’ll put the links below for both of those.
Learn where to order Made to Thrive below