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In business, we often focus solely on the outcome of choices – did it succeed or fail? While results are important, true growth relies on analyzing our decision-making processes. That’s where Step 7 of Enabling Empowerment’s Decision-Making Framework, “Show Your Work,” comes into play.

Hindsight Bias: The Enemy of Growth

Have you ever looked back at a past decision and been frustrated that you didn’t see the “obvious” choice? That’s hindsight bias – where knowing the outcome unfairly influences our judgment of the decision itself.

Example: A company faces two promising product choices:

• Product A: Highly likely (70% chance) to generate $1 million profit.
• Product B: Even more likely (80% chance) to turn the same $1 million profit.

The company selects Product B, but it unexpectedly yields a loss. Yet, their competitor later launches Product A, earning a huge profit. Was choosing Product B a bad call?

Don’t Judge a Decision by its Cover

We must not equate a decision’s quality with its outcome. Remember the casino gambler who bets big and wins – that’s luck, not a masterful strategy.

Documenting your decision-making process is powerful because it:

• Fights hindsight bias: Revisit your initial assumptions and analysis as circumstances change.
• Improves future decisions: Learn from what worked and what needs refining.
• Demonstrates accountability: Provides a clear trail of reasoning, especially in complex situations.

Practical Steps

Ready to start? Here’s how:

1. Capture: Write down the key factors, data, and assumptions you considered.
2. Analyze: Document your thought process. How did you weigh different options?
3. Reflect: After the results are in, honestly analyze your original decision-making process.

Template: I’ve created a simple MS Word template to help you document your decisions effectively. You can download it here.

The template uses tables and data from our DMF Financial Model which you can download for free here.

The Bottom Line

Documenting your work isn’t about placing blame or proving you were always right. It’s about becoming a more strategic, self-aware decision-maker. Let’s embrace the process, not just the results!

I’d love to hear your thoughts – how do you combat hindsight bias?

Would you like to delve deeper into strategies for empowering your team to make better decisions?  You can use this link to schedule a conversation with us. There’s no cost involved.

#enablingempowerment #decisionmaking #leadership #empoweremployees #culturechange

Christopher Seifert is a leadership consultant and author of “Enabling Empowerment: A Leadership Playbook for Ending Micromanagement and Empowering Decision-Makers.“

For more insights on creating empowered teams and driving cultural transformation, connect with him on LinkedIn or visit www.enablingempowerment.com.