EVOLVE Business and Professional Magazine August 2020 | Page 36

Emotional
Intelligence:
How Self-Awareness Impacts
Decision-Making
by Art Zimmet
Several years ago, I was lucky enough to experience a
significant investment loss. I say lucky because the resulting
teeth gnashing inspired a quest to understand the mistakes
so that I could avoid similarly disastrous future decisions.
My research led me to believe I had found my answer in the
disciplines of decision science, cognitive biases and mental models.
I thought that if I could understand and counteract the many
cognitive biases that lead to irrational decisions, then I could use
decision science and mental models to become a rational, optimal
decision-making superstar.
BIASES
For example, the confirmation bias is the tendency to search for,
interpret, favor, and recall information in a way that confirms our
pre-existing beliefs. The confirmation bias causes us to ignore or
discount evidence that disconfirms our beliefs.
The confirmation bias can be pernicious because falling victim
to it can appear very rational. Decision researcher Dan Lovallo
said “Confirmation bias is probably the single biggest problem in
business, because even the most sophisticated people get it wrong.
People go out and they’re collecting the data, and they don’t realize
they’re cooking the books.”
Charles Darwin was famous for methodically searching
for evidence to disconfirm his hypotheses as an antidote to the
confirmation bias.
Enthralled with this powerful tool, I too began seeking
disconfirming evidence when analyzing professional and personal
decisions alike. I proudly applied my newfound tools in every
situation I could.
PLAYING IN THE TREETOPS
Little did I know that I was naively playing in the treetops of
decision making, enjoying the sweeping vistas and sweet fruits,
unaware that I was ignoring the vast and critical root structure
below.
What I was so happily ignoring turns out to be the most
important factor in making good decisions – more important
than all other factors combined. The root and foundation of good
decision making is emotional intelligence.
We can apply the tools of decision science all we want, but if
we are not at least somewhat competent in the realm of emotional
intelligence, all that effort will be for naught.
ELEPHANTS AND RIDERS
Psychologist Jonathan Haidt analogizes our emotional and
rational brain systems to an elephant with a human rider perched
atop it.
The rider represents the rational system that plans and solves
problems. The rider may analyze a situation and decide to move
in a certain direction, but it is our emotional brain, our elephant,
that provides the power for the journey. The rider can try to lead or
drag the elephant, but if the elephant disagrees with the rider, the
elephant’s strength will take the rider wherever the elephant wants
to go.
| 30 | EVOLVE BUSINESS AND PROFESSIONAL MAGAZINE