S4E08 - Don Moore on confidence and decision leadership
Confidence is a critical part of decision making and being an effective leader. Not enough confidence and you won't move a decision to the action or be able to cultivate the support needed to move it forward.
Too much confidence and you could make decisions that unnecessarily put you and others at risk. So how do you walk the line of having just the right amount of confidence?
Today, I speak with Don Moore: confidence expert, UC Berkeley Haas School of Business professor and author of the book, Perfectly Confident. We discuss the different types of overconfidence we should be aware of as well as ways that decision makers can better calibrate their confidence. He'll also share insights from his latest book Decision Leadership, which helps leaders think about how to empower people within their organizations to make better choices.
Topics Covered
03:02 What is at stake when confidence is not well calibrated?
04:52 Defining confidence
06:31 Confidence, reality, and the downsides of overconfidence
08:56 Calibrating confidence among startup founders
10:32 The 3 types of overconfidence
11:05 How to better calibrate your confidence
14:01 The importance of probabilistic thinking
15:52 Making decisions by calculating expected value
18:11 Beware of hindsight bias + Importance of documenting
19:44 What role should intuition play in decision making?
22:54 Some ways in which intuition is predictably biased
23:32 What decision makers should keep in mind - think beyond yourself
25:05 Leader as decision architect
28:03 Other ways leaders can positively influence the quality of decisions in their org
29:23 What to track
31:02 Choosing when to stop gathering information
32:49 Don't fall into the trap of focusing solely on what's easy to quantify
34:03 The downsides of underconfidence
Guest Bio
Don Moore is a professor of management of organizations at UC Berkeley's Haas School of Business. He is the author of Perfectly Confident and a co-author of the books Judgement in Managerial Decision Making and Decision Leadership. His expertise and research interests include overconfidence, ethical choice, decision-making, and negotiation. He is only occasionally overconfident.
Resources
To learn more from Michelle about decision making, check out
The Ask A Decision Engineer website
Her self-paced course Decision Toolkit for Personal Decisions
Her Decision Toolkit for Coaches and Counselors virtual workshop on Maven
