We make thousands of decisions each day. Some are small and insignificant, but others have important implications. Should I sleep-in or get up early to accommodate 30-minutes of exercise before work? What task should I complete first? Should I make this decision alone or do I need to inform my supervisor? I often advise my children that good decision-making is critical to their success in life. So why is it some of the smartest people in the world sometimes make catastrophic decisions, which can cost careers and even lives?

In a recent article in the Australian Financial Review, Chad Slater described two corporate decisions with diabolical consequences.¹ The first was the collapse of Long-Term Capital Management (LTCM) taking the world to the brink of a GFC-style collapse in 1998. The second example was the NASA space shuttle Challenger, which killed all seven crew members onboard the fatal flight on 28^th January 1986. In both cases, the teams were led by some of the smartest people in the world. Perhaps, another more recent example of poor governance and decision-making is the royal commission into the banking sector. In each of these situations, what led these teams to make such disastrous decisions?

According to Slater, it was ‘stupidity’, or overlooking or dismissing conspicuously crucial information.²

Factors that increase stupidity²

According to Slater the following factors increase the risk of ‘stupid decision-making':

1. Social cohesion or group-think: where team harmony and agreement overrides individual thought or opinion
2. Authoritarian decision-making: A strong individual dominating all decision-making
3. Fixation on the outcome
4. Information overload
5. Rushing or urgency
6. Stress
7. Being outside your circle of competence
8. Overconfidence

Overcoming bad decisions

Slater’s practical suggestions for overcoming poor decision-making include:

1. Be wary of groups of experts offering strong opinions. Don’t be afraid to disagree with them
2. Keep a diverse group of friends
3. Be open-minded and develop a thirst for continual learning
4. Have a plan in advance or a checklist
5. Develop a keen sense of self-awareness
6. Do not make decisions when you are tired, rushed or stressed.

References:

1. Slater, C. ‘Stupid’ is not the opposite of ‘smart’: how to beat genius investors. https://www.afr.com/markets/equity-markets/stupid-is-not-the-opposite-of-smart-how-to-beat-genius-investors-20190428-p51hvw.
2. Robinson, A. How not to be stupid. https://fs.blog/2019/01/how-not-to-be-stupid/

In a time-poor society, an employee who exercises regularly while balancing work and home life commitments demonstrates high-level organisational skills. They get up early, or they make time during the day or after work, to fit in exercise.

Companies who invest in the health of their employees understand that promoting regular exercise not only provides staff with personal health benefits but can also improve overall productivity. Keeping fit and healthy reduces sick leave and lengthy absences from work.

People who exercise routinely can often see the ‘bigger picture’. They know long-term effort provides sustained results.

Regular exercise goers do not give up because they’re too busy, because of inclement weather, or because they’re bored or fear injury. They simply adjust their exercise routine to accommodate an injury, bad weather or a busy schedule. They know variety is the spice of life, and will often mix up their routine with various individual physical activities and team sports to help maintain motivation.

I am surprised how frequently creative ideas are spawned when I am out exercising. Simply stepping out of the work environment for 30 minutes can refocus energy and provide clarity of thought for solving problems or issues.

A person who prioritises regular exercise understands a balanced life is essential for health and wellbeing. Aside from work, we all need to include leisure time with family and friends, as well as making time for personal activities, exercise and reflection.

Someone who has exercised throughout life demonstrates discipline and the ability to commit and focus on achieving goals.

Whether a person engages in solo and/or team sports also provides insight into their behaviors and preferences. Someone who regularly participates in competitive sport understands that best results are achieved when everyone works as a team. People who enjoy individual exercise show independence and reliability in achieving goals.

On that note, it’s time for me to leave the keyboard and get out for a run.

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The drug, AdVince, was financed by 2000 people from 40 countries via an online campaign called iCancer. The drug is named after an oil tycoon, called Vince, who provided three-quarters of the total cost of the trial in exchange for being allowed to participate in the Phase I study. The drug is a ‘genetically modified oncolytic adenovirus’, in other words a modified flu virus that specifically ‘eats’ neuroendocrine cancer cells. Crowd-funding is an exciting option that could potentially raise much needed funds to enable more new therapies to reach the market faster. However, it may present some ethical challenges for the future. We must not ever compromise quality for speed. High quality medical research must remain equitable and should not discriminate on the basis of wealth.

I was taken aback the other day when my thirteen-year-old daughter advised, “You just fake it till you make it.” Should I be worried or encouraged by this cavalier philosophy? Is this catchphrase erroneously used to excuse duplicitous behavior?

The origins of the adage ‘Fake it till you make it’ are based on the power of conditioning your mind. It means ‘think it until you believe it’ and was coined to help people avoid getting caught in a self-fulfilling prophecy related to one’s fear of not being confident. I am a strong supporter of positive affirmations and an advocate for ‘believing in yourself’, which can boost confidence and help create a positive outcome. No doubt ‘putting on a brave face’ can assist with mustering courage to face a major hurdle.

However, above all else I value honesty, integrity and authenticity. I am concerned this catchphrase can be used as a euphemism to justify deceitful or disingenuous acts or just an excuse to lie. In the corporate environment, I’m bewildered when I hear people exaggerate their experience or hold back from telling the truth to an employer or potential client because they feel they can ‘learn on the job’ or teach themselves job requirements online. This laissez-faire attitude to ‘bend the truth’ and ‘fake it to make it’ I believe is dishonest and troubling.

Recent examples in the media highlight the audaciousness of some people and the measures they will take to ‘fake it to make it’. Andrew Flanagan landed a $400,000 annual package at Myer based on a false CV and dodgy references. It begs the question, how many other people embellish or even lie on their CV? What lengths should employers take to verify a candidate’s background? What should you do if you suspect spurious credentials?

Continuously faking it will only take you so far. As they say, ‘The proof is in the pudding.’ In the end people will form a judgement based upon the integrity of your behavior and actions, and the outcomes you achieve. Just like Andrew Flanagan, phonies will eventually be caught out.

More than ever there is a need to differentiate yourself from the pack. Gaining one or two degrees is no longer a rarity or assurance for career progression. So how do some people advance up the career ladder faster than others?

I’ve summarised seven tips required for a great career taken from an written by Jim Bright, in The Age, Saturday 28 May 2016.

1. Be perpetually curious and continuously learn

People with great careers never stop learning; they are continuously curious, honing and developing new skills. In his article Jim points out there is a tsunami of information washing over us, “We cannot master all of it, so we had better learn how to surf it”.

2. Build a strong support network

Successful people seek mentors, coaches and ‘heroes’ or other successful leaders to emulate and learn from. People with successful careers surround themselves with team members, staff, colleagues, friends and families.

3. ‘Connect’ with the community

“Great careers are built on service and contribution.” People with successful careers seek meaning in their work and understand how their work impacts the larger community. They connect with people and acknowledge the critical role of others in their career.

4. Possess self-discipline and sustain periods of intense focus

Jim states, “Great careers do not arise out of trying to be all things to all people, or trying to do everything. Distinguish the important things from the everythings, and let others do these other things.” People with successful careers are self-disciplined, resist ruminating about unnecessary or irrelevant things and remain focused on key goals.

5. Be flexible

People with great careers set goals, but remain flexible so they can overcome unexpected barriers and setbacks.

6. Be courageous and ride the waves

“Great careers are seldom, if ever, smooth sailing”, says Jim Bright. Courage is needed to critically self-evaluate, seek feedback and overcome barriers, self-doubt and insecurities. Courage is necessary to persist during fierce competition, turbulent markets and economies. People with great careers have the courage to acknowledge and learn from their mistakes, and to persevere even in the face of harsh criticism or obstacles.

7. Maximise opportunities and luck

Sometimes a great career involves a little luck! However, we can all take action to create our own luck, and seek out and maximise opportunities.