Dr. Fred Petito
Emotions are so complicated that scientists struggle to define them. Even more difficult to comprehend is the function of emotions in decision-making. While decision-making is often regarded to be a logical process, emotions do play a crucial part in developing our conclusions.
The influence of emotions on our decisions is not limited to our personal lives; emotions play a big part in shaping executive decision-making. While the thought of our emotions swaying our business judgment may alarm some, the good news is that our understanding of how emotion impacts decision-making has evolved considerably in recent years. Though the research is not conclusive, there are evidence-based concepts that explain the link between emotions and judgment, as well as advice for reducing the negative (or harnessing the positive) influence emotions have on our decision-making.
5 Ways Emotions Shape Executive Decision-Making
- Emotions Related to the Topic at Hand Shape Decision-Making: While this seems obvious, what’s not so obvious is that the influence of emotions on our decisions often operates on a subconscious level. For example, an executive who is feeling anxious about the risks associated with a pending deal may be swayed by one or more cognitive biases that only cause to elevate their anxiety. For instance, they may overemphasize one data point about the deal (anchoring bias) because that data is easy to recognize and understand (saliency effect). What’s so stealthy about these biases, and the emotions they activate, is that they occur subconsciously and are very difficult to discern, hence the biased decisions they frequently cause.
- Incidental Emotions Influence Decision-Making: One of my doctoral professors used to joke that before making a big decision you should do something that makes you angry. This may seem like an odd suggestion, but there’s science behind this method. Researchers have found that emotions from one setting (for example, arguing with your spouse or partner) carry forward to unrelated situations and influence your disposition, thoughts, and behaviors regarding that unrelated situation. Specifically, people in good moods approaching a big decision are more likely to make optimistic assumptions. In contrast, people in bad moods are more likely to make pessimistic assumptions increasing the likelihood they will assess the decision with more scrutiny and take a harder negotiating position. Similar to cognitive biases, the carryover of incidental emotions typically occurs without awareness.
- Emotions Shape Decisions via the Depth of Thought: Emotions also influence how deeply people think about their decisions. Negative emotions (anger, anxiety, frustration) will likely trigger increased vigilance and a higher level of risk aversion. At the same time, positive emotions (happiness, interest, excitement) will likely trigger a more superficial and simplified decision-making process and a greater likelihood of taking on more risks.
- Emotions Related to Expected Outcomes Shape Decisions: Emotions experienced in anticipation of an expected outcome of a decision can strongly influence the direction a decision-maker will take when forming judgments. Often these anticipatory emotions are based on prior experiences or experiences with situations that are similar to the decision at hand.
- Emotions Determine What We Pay Attention to When Deciding: People tend to pay attention to some things while ignoring others. Our emotions often influence this attention bias. For instance, an anxious decision-maker will be motivated to reduce uncertainty and eliminate the things that cause them discomfort. Similarly, a decision-maker who is angry will narrow their attention such that current feelings, thoughts, and impulses will be given extra weight. In contrast, future goals, ambitions, or plans will seem less consequential. In both instances, these decision-makers will be guided by a more targeted consideration of alternatives to address their dominant emotional state.
How Emotions Show Up in Executive Decision-Making
- Bias and Subjectivity: Emotions can introduce biases and subjectivity into decision-making. Certain emotions, such as fear or anger, can lead to hasty or impulsive decisions, while positive emotions may cloud judgment and lead to overly optimistic assessments. Recognizing and managing these biases is crucial for executives to make objective and rational decisions.
- Risk Assessment and Risk Tolerance: Emotions can impact executives’ perception of and evaluation of risks. Emotional states can influence the perception of probabilities and potential outcomes, leading to variations in risk assessments.
- Group Dynamics: Emotions affect individual decision-making as well as interactions within teams. Executives must consider team members’ emotions and motivations when making decisions involving collaboration and consensus-building. Emotionally intelligent leaders can navigate and manage these dynamics effectively.
- Ethical Considerations: Emotions can also impact ethical decision-making. Emotions like guilt, empathy, or moral outrage can influence executives’ choices when faced with ethical dilemmas. These emotional responses can guide decisions that align with personal values or a sense of social responsibility.
5 Strategies to Reduce the Effects of Emotions on Decision-Making
Consider how emotions appear in your everyday life and affect your decision-making. With greater self-awareness and a more intentional mindset, you can harness and transform your emotions to improve your performance and the quality of your decisions. Here are five practices that can help.
- Slow Down: This is one of the simplest and most effective strategies for minimizing emotions’ impact on your decisions. However, this is easier said than done since the purpose of emotions is to stimulate a behavioral response. That said, most emotions are short-lived so waiting them out will serve decision-makers well.
- Check Your Instincts: While our intuition can be a great asset, especially when assessing and avoiding danger, following them slavishly is a game of chance. Over time our minds have learned to simplify the world around us to process the overwhelming volume of stimuli we experience at any given moment. This serves us well most of the time but can steer us wrong in unfamiliar situations. So while it may be safe to rely on your intuition in situations where you have skill and experience, avoid them in situations where you have limited experience and in games of chance (e.g., investing or gambling).
- Reframe the Emotions About the Decision: This strategy involves reappraising the emotions that are influencing your thoughts and feelings about a decision. Examples of this include reminding oneself about the broader context of the decision. For example, the gravity of the decision may not be as serious as your emotions lead you to believe. Similarly, reevaluating the worst-case scenario if the decision doesn’t go well is an effective reframing strategy. Often the worst case is not nearly as bad as our emotions would lead us to believe. Both approaches increase one’s objectivity about the decision and minimize the effects of emotions on one’s judgment.
- Narrow Your Options: This approach minimizes the impact of the well-known paradox of choice where the more options people are presented with make their decision-making more difficult due to the overwhelm they experience. Narrowing your options will not only save a lot of stress, but the research also says you’ll be happier with the choice you’ve made.
- Be Your Own Choice Architect: Choice architecture is the practice of designing the way choices are presented to decision-makers to simplify and improve the quality of their decisions. An example of choice architecture is where a decision-maker lists the pros and cons of multiple decision options, identifies the key variables that need to be considered regarding the decision, and then ranks each decision option on those variables. In this way, the decision-maker can minimize the influence of emotions and improve the quality of their decision.
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Website URL: https://attainleadership.com/
Professional Bio
Dr. Fred Petito is the Founder of Attain Leadership. As an executive coach and leadership advisor his mission is to help marketers and agency professionals advance their careers by cultivating the mindsets, behaviors, and strategies that drive success as a marketing leader.
Dr. Petito has over 20 years of experience as a C-level executive and senior leader with both startup and large global marketing services firms and has advised some of the largest global companies and brands. His experience spans multiple marketing disciplines including brand management, communications, and product, direct, digital, and social media marketing. He has worked in numerous industries including automotive, consumer goods, financial services, insurance, life sciences/health care, technology, and telecom.
Trained as a business leader, marketer, executive coach, and attorney, Dr. Petito integrates evidence-based methodologies, analytical skills, and a deep understanding of human and organizational behavior to help his marketing clients break through the barriers that limit performance in themselves and their organizations. He has coached and advised countless marketers across a wide range of performance, development, and career management topics.
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Fred Petito received his Doctorate in Marketing from Pace University and graduated from Columbia Business School’s Executive Development Program. He received his post-graduate Advanced Executive Coach training at the College of Executive Coaching and is a Board Certified and Leadership Challenge/LPI 360 Certified Coach. Formerly an attorney, Dr. Petito has been a speaker at numerous conferences including the Cannes Lions Festival.