Appointing board directors as CEOs was once a “break glass in case of emergency” strategy reserved for scandal, illness, or sudden resignation. While it remains a minority path compared with traditional internal promotions, it is no longer an anomaly.
New data from Spencer Stuart highlights the shift. Of the 168 new S&P 1500 chief executives appointed in 2025, the highest annual total since 2010, 19 were drawn from their own company boards, the most since 2020. Spencer Stuart classifies directors as outsiders because they lack day-to-day operating responsibility. Even so, more boards are turning to them.
The increase comes amid elevated churn. CEO departures in the S&P 500 reached roughly 13% in 2025, according to governance trackers, leaving boards to manage performance pressure and succession gaps simultaneously. Internal candidates, such as chief operating officers and division heads, still account for the majority of appointments. But in moments of strategic reset, boards sometimes look beyond executives associated with the existing plan. Meanwhile, several high-profile external hires have reinforced the risks of expensive searches that promise reinvention but deliver disruption.
The insider-outsider advantage
Against that backdrop, directors offer what board advisers describe as an insider-outsider balance. They understand the company’s strategy, capital allocation framework, and risk profile. Yet they are not embedded in a single operating silo. That distance can make it easier to reset priorities without discarding the broader plan.
Recent moves show how the model is playing out across sectors. At Constellation Brands, Nicholas Fink was named chief executive in February 2026 after serving on the board since 2021. Match Group elevated director Spencer Rascoff to chief executive in 2025 to accelerate product and artificial intelligence initiatives.
Other examples reinforce the pattern. Bed Bath & Beyond appointed Marcus Lemonis, its executive chairman, as permanent chief executive in January 2026 following the company’s emergence from bankruptcy. Science Applications International Corp. named James Regan permanent chief executive in February 2026, after he had served on the board since 2023.
These appointments do not signal a collapse in succession planning. Internal promotions remain the dominant route to the corner office. Instead, boards are broadening the pipeline and building optionality into leadership plans amid elevated executive churn.
The shift also reflects who now occupies board seats. A growing share of directors are active or recently retired chief executives with significant operating experience. That evolution has created a viable bench within the boardroom itself. Directors can be evaluated over years of strategy sessions and crisis deliberations before they are ever tapped to run the company. Governance advisers describe the approach as succession by design.
What it means for C-suite contenders
For aspiring chief executives, the competitive landscape has changed.
The bar for readiness is higher. Internal candidates are no longer competing only against peers down the hall. They may also be measured against directors who have already run public companies and have established credibility with investors. In volatile periods, that experience can appear lower risk.
Timelines are also compressing. If boards are informally cultivating potential successors in their own ranks, internal candidates must signal enterprise-level leadership earlier. Waiting for a formal succession process may be too late. Executives who want the top job need visibility in board discussions, exposure to enterprise risk, and a clearly articulated long-term strategy.
There is an opportunity in the shift as well. Boards that elevate directors are often looking for leaders who combine operational depth with governance sophistication. C-suite executives who engage proactively with directors, serve on external boards, and broaden their scope beyond a single function can strengthen their case. The more an executive already operates like a chief executive, the harder it is for a board to choose someone else—even one of its own.
You can only manage what you can see. Yet, many business owners are flying blind making decisions based on gut instinct rather than clear, reliable data. At first, it works. In the early stages, your intuition and hustle drive results. However, as your company grows, complexity increases, and the lack of visibility becomes more expensive. You start to notice surprises— missed deadlines, shrinking margins, cash flow issues, or client problems that reach you too late. The problem is not bad leadership. It is an information gap. If you do not close it, it can quietly stall your company’s growth.
Here is how to gain the clarity you need to make smarter, faster, and calmer decisions.
1. Identify your blind spots.
Start by asking yourself one simple question: “Where am I guessing?” If you find yourself saying things like “I think our sales are up,” “I think that project is on track,” or “I think our marketing is working,” that is an information gap.
Make a list of areas where you are relying on assumptions instead of verified data. Common blind spots include:
Once you see the gaps clearly, you can start closing them one by one.
2. Build dashboards that matter.
Not every metric deserves your attention. Many owners get lost in spreadsheets filled with data that looks impressive but offers little insight. Choose a handful of key metrics that give you a real-time view of your business. Focus on one or two leading indicators for each core function: sales, marketing, finance, operations, and customer experience.
Leading indicators predict outcomes. Lagging indicators only confirm what has already happened. For example, “number of qualified leads” is a leading indicator of future sales, while “revenue” is lagging. Build simple dashboards that show these metrics updated weekly or monthly. Review them consistently.
3. Measure the right things.
It is tempting to measure what is easy instead of what is important. The number of social media followers or raw website visits might look encouraging, but they may not connect to revenue or profit.
Focus on metrics that tie directly to business performance. Measure conversion rates instead of clicks, customer lifetime value instead of one-time purchases, and gross margin instead of total sales. The right data tells a story. The wrong data distracts you from what actually drives success.
4. Share data transparently.
Information loses value when it stays siloed. When your team has access to the same numbers you do, alignment improves. People understand how their work connects to outcomes.
Share your dashboards in team meetings. Discuss what the data means, where you are ahead, and where you need to adjust. This creates ownership at every level and turns metrics into motivation.
Transparency also builds trust. When people see that you make decisions based on facts not favoritism or guesswork, accountability becomes part of your culture. The companies that win in the long term are not always the biggest or flashiest. They are the ones that can see clearly, adapt quickly, and decide confidently.
Closing your information gap will not just protect your business. It will transform how you lead. Because the more you know, the less you have to guess and the faster you can grow.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
I found a habit hack that takes two seconds, feels silly, and has become one of the most reliable mindset tools I use. After an air-travel-heavy fall speaking season, I was seated at one of my last events of the year, sipping coffee before heading onstage. I opened my phone to check the week ahead and spotted something in my calendar that made me squeal in delight. “I scheduled a massage on Monday. Hell, yes, Past Henna! Smashed that.”
The two women next to me at breakfast burst into giggles. “Do you always thank ‘Past Henna’ when you see stuff like that?” I paused and realized, yes. Yes, I do. I realized I’ve been doing it for years without ever hearing anyone talk about it.
This silly ritual—thanking my past self for making a good decision—might sound like cute self-talk, but it’s not fluff. It’s a surprisingly powerful mindset tool with real scientific muscle behind it. Recent research shows that when you acknowledge a smart prior choice, you strengthen three internal drivers that shape how you plan, follow through, and make decisions in the future. Think of it as habit architecture with a personal twist.
You strengthen your sense of future-self continuity
Most people assume their future self is simply them, but older. The research suggests something different. Studies at UCLA have shown for more than a decade that many people relate to their future selves the way they relate to a stranger: vaguely, abstractly, and without much emotional investment.
An Inc.com Featured Presentation
Newer research deepens that insight. A 2022 study found that short rituals that emphasize the connection between past, present, and future selves tighten this “identity bridge.” When that bridge feels solid, you make clearer long-term choices and delay gratification more easily. Thanking my past self for scheduling that massage, finishing a deck early, or prepping travel details ahead of time creates a loop: past me, present me, and future me. That loop is a continuity cue, and continuity cues reduce the psychological distance that usually sabotages long-view thinking.
You reward identity, not just behavior
Most habit frameworks focus on a cycle of cue, routine, and reward. Helpful, yes, but the thing that truly takes root is identity-based reinforcement. “I’m the kind of person who follows through.”
A 2020 study found that small internal acknowledgments strengthen what researchers call self-congruence rewards. In summary, when your actions align with the type of person you believe you are, the brain treats it like a meaningful win.
When I say, “Thanks, Past Henna!” I’m not patting myself on the back. I’m reinforcing the belief that I am someone who plans. Someone who reduces friction for future me. Someone whose decisions line up with her values and goals. Identity rewards carry far more motivational weight than behavioral rewards. They shape how you act next time without needing a pep talk.
You reduce the mental drag of regret
Regret is a sneaky tax on your cognitive bandwidth. Not the dramatic kind—more the low-grade, “ugh, I wish I had set this up sooner” version that slows you down. When you acknowledge something past you did well, you’re sending a message to your brain: This kind of prep pays off. That tiny internal nod feels good, but more important, it reinforces the mental association between foresight and relief. Your mind starts keeping a friendlier scorecard, “Good planning helps me.” That kind of reinforcement is what people actually repeat.
You build self-compassion that improves follow through
Most of the time, the way you talk to your past self is unkind. Why didn’t I do this earlier? Why did I make that choice? Why wasn’t I more disciplined?
Flipping the script builds a soft skill with hard benefits. Kristin Neff’s work on self-compassion continues to show that treating yourself with care (even retroactively) strengthens resilience, increases follow-through, and protects against burnout. Gratitude toward your past self reinforces capability rather than deficiency.
Why this matters right now
In a world of compressed timelines, more change than clarity, and competing demands on your attention, anything that reduces mental friction is a strategic advantage. As planning horizons shrink—especially for Millennials and Gen-Z—tools that reinforce long-view thinking become even more valuable.
Even tech platforms are experimenting with this idea. New studies in human-AI interaction show that prompting people to message a future-self avatar increases feelings of calm, improves planning, and reduces anxiety spikes during tough decisions. Translation: Your brain loves continuity, and you don’t need an app to build it.
A quick example in practice
Earlier this year, I made a call six months ahead to decline a low-paying speaking engagement so I could free up space for a project that mattered more. When that project paid off, I whispered to myself, quietly but sincerely, “Thanks, Past Henna.”
That moment did three things: It affirmed the identity. It reinforced the timeline bridge, and it reminded me that caring for my future self is a high return-on-investment habit.
Find one thing—just one—that past you set in motion. Maybe you prepped for a meeting, blocked your calendar, saved a lead, or declined an invitation that would have drained your focus. Pause for a second, acknowledge it, and say thanks. It may feel a little awkward at first, but you’re doing it for clarity, not comedy. (It doesn’t hurt that it makes people smile, though!)
Try it once and watch what happens: Your past self might be the teammate you’ve needed all along.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
Many founders and CEOs are known for their high-octane morning routines. Not Jeff Bezos. The founder spends the first hours of his day “puttering.”
“I like to read the newspaper, I like to have coffee, I like to have breakfast with my kids before they go to school. Puttering time is very important to me,” Bezos explained back in 2018. According to his wife Lauren Sanchez, his mornings still focus on slow, offline puttering today.
Sipping your coffee while catching up on the news sounds pleasant. But Bezos doesn’t just putter around in the mornings because he’s a billionaire who can do what he pleases. In the same interview he explains that his relaxed morning routine helps him clear and center his mind so he can make high-quality decisions during the day.
To the productivity obsessed, puttering might sound like the opposite of focused effectiveness. But psychology insists Bezos is on to something. Puttering, by definition, may be aimless and small in scale. But science is clear it can also help our brains work at their best.
An Inc.com Featured Presentation
Puttering as mindfulness
The hectic modern world means most of us spend a large portion of our time ticking through a never-ending to-do list. This frantic turning of the mental wheels can be productive. But it doesn’t leave much room for reflection, creativity, or a simple appreciation of the small pleasures of the present moment.
Wandering around doing this and that, on the other hand, acts as a form of mindfulness. It turns off the churn in our brains for a bit, leaving space for ideas and even contentment to bubble up.
“Puttering is a gesture of respect from our brains to our physical selves. It’s not about thinking, or reading, or producing. Instead, we take on ‘mindless tasks’ that need only the most minimal participation of the brain. We acknowledge our surroundings, consider what makes us comfortable, and tend to those things, however aimlessly,” explains author Sophia Dembling in Psychology Today.
We grit our teeth through housework drudgery. Puttering, in contrast, is a series of low stakes wins we do for the sheer satisfaction they bring. Our attention is on the task as we do it. This present focus quiets the mind in a way that is “deeply therapeutic,” Dembling insists.
Set “free from all constraints, my brain meandered at its own pace and in its own way, unclenching and creating space through which fresh ideas wafted. It was relaxing, refreshing, and rejuvenating,” she writes of her own puttering.
Research supports Jeff Bezos
Studies agree with her (and Jeff Bezos) that puttering is a low-key but effective way to center yourself.
For one, researchers explained to volunteers that doing the dishes could act as a form of mindfulness if they simply focused on the sensory details of the task, the warmth of the bubbly water, the gleam of a clean plate. Afterwards, subjects reported that six minutes of this everyday chore reduced their nervousness by 27 percent and increased their inspiration by 25 percent.
Puttering, it turns out, is a state of mind, a way of approaching whatever minor job is in front of us. When we tackle these tasks in this unhurried way we gain some of the same calming, creativity-boosting effects as other more formal mindfulness practices, like meditation.
Perhaps that’s why, at least as late as 2014, Jeff Bezos also still claimed to wash the dishes himself every night.
Puttering as anti-anxiety intervention
“Puttering has to do with cleaning and organizing; but it isn’t those things. You begin by identifying an itch in your personal space: something like a jar that has a lot of different types of things in it, or a shelf of plates where you can see a layer of dust underneath everything,” cartoonist Sophie Lucido Johnson wrote in an ode to her husband’s gift for puttering on Medium.
One of the great pleasures of puttering, she continues, is the joy of scratching those itches. That ability to right a minor wrong, to remind yourself that you can be effective in the world, is another science-backed benefit of Bezos-style puttering.
“Unlike other distracting activities – such as playing computer games or watching trashy TV – puttering also has the advantage of being proactive and useful, increasing our ‘perceived control,’” explains the BBC. The small shot of agency when you organize the junk drawer, say, reduces physical markers of stress in the body, it reports.
“In general, you see much greater brain activity as you increase the number of distracting objects within a scene,” the BBC also notes. “This may lead your brain to tire so that it struggles to maintain its focus over long periods of concentration.”
If Jeff Bezos makes time to putter, so can you
Take all this together and you have strong evidence that Jeff Bezos isn’t just enjoying his life when he’s puttering around each morning. (Though he’s probably doing that too, which is a perfectly excellent goal.) He’s also practicing a low-key, practical form of mindfulness that helps to reset and prepare his brain for the day to come.
If a titan of industry like Bezos can justify spending time puttering each day, certainly you can give yourself permission to putter too. Your brain will probably thank you.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
Every founder eventually hits the same growth killers—isolation, decision fatigue, skill overload, stalled momentum, and a lack of real accountability. In this on-demand session you’ll see why these five barriers show up and why quick fixes rarely stick.
You’ll also be introduced to The Boardroom, Entrepreneur Media’s new six-month mastermind that pairs you with a hand-picked peer group and expert mentors who turn those obstacles into weekly breakthroughs.
Key takeaways:
Replace isolation with a curated advisory board
Slash decision fatigue using repeatable frameworks
Escape skill overload through expert playbooks
Restart stalled growth with high-leverage tactics
Close accountability gaps so goals become wins
Register now for instant access and start mapping your path from bottleneck to breakthrough.
About the Speakers:
Jason Feifer is the editor in chief of Entrepreneur magazine and host of the podcast Problem Solvers. Outside of Entrepreneur, he writes the newsletter One Thing Better, which each week gives you one better way to build a career or company you love. He is also a startup advisor, keynote speaker, book author, and nonstop optimism machine.
Jacqueline “JJ” Jasionowski blends luxury-brand rigor with entrepreneurial speed. After 17 years at BMW Group leading growth, training, and CX initiatives, she launched Shift Awake Group to deploy tech-forward training that lifts customer satisfaction and revenue. A Certified Professional Coach and expert facilitator, JJ builds behavior-shifting systems—reducing friction and driving measurable outcomes.
Every founder eventually hits the same growth killers—isolation, decision fatigue, skill overload, stalled momentum, and a lack of real accountability. In this on-demand session you’ll see why these five barriers show up and why quick fixes rarely stick.
You’ll also be introduced to The Boardroom, Entrepreneur Media’s new six-month mastermind that pairs you with a hand-picked peer group and expert mentors who turn those obstacles into weekly breakthroughs.
OpenAI CEO Sam Altman says his experience of becoming a father earlier this year has profoundly affected his outlook and has reframed how he thinks about the far-reaching implications of his work in artificial intelligence.
Altman and his husband, Australian software engineer Oliver Mulherin, welcomed a baby boy in February via surrogacy. Altman and Mulherin, both 40, got married in Hawaii last January.
“I don’t think I have anything non-cliché to say here, but it is the best, most amazing thing ever. And it totally rewired all of my priorities,” he said. “I remember in the first hour, I felt this neurochemical change and it happened so fast. I was like, oh, I get to like observe this. Like, I am being like neurochemically hacked, but I’m noticing it happening. I’m totally fine with it. That’s great. But everything is going to be different now.”
Chang pressed Altman on how, if at all, the experience of parenthood has changed his perspective on building advanced artificial intelligence. “A lot of people have said, I’m very happy you’re having a kid, because I think you’ll make better decisions for humanity as a whole,” Altman said. “I really wanted to get it right before, and do the best I could. I still really want to now.”
His decision-making abilities have been both praised and criticized throughout his tenure as OpenAI’s CEO. In November 2023, Altman was ousted by OpenAI’s board of directors, who cited a lack of confidence in his leadership and raised concerns about his transparency, communication, and the company’s safety processes.
Despite the controversy, Altman’s boosters say the CEO has been instrumental in driving OpenAI’s financial success, helping it transition from a non-profit research lab to a global leader in artificial intelligence, ushering in commercially successful products like ChatGPT and forging high-profile partnerships, including a landmark multibillion-dollar investment from Microsoft.
Altman’s reflections as a new parent come as OpenAI rapidly expands its ambitions, including the President Trump-backed Stargate initiative, which he called “the biggest infrastructure project in history” in the Bloomberg interview.
Stargate, for the uninitiated, is OpenAI’s next-generation data-center project that’s designed to address the surging demand for AI computing power. It’s envisioned as a cornerstone for the future of AI development, both in terms of scale and technological innovation.
When asked about the scale and speed of change in the AI sector, Altman likened the experience to “watching your own kid grow day to day. You just see every change. And so it’s, like, not as striking. It does feel like it’s going very fast.”
Opinions expressed by Entrepreneur contributors are their own.
Do you remember the times you were at a crossroads, debating with yourself about a choice that challenged your personal values and your business objectives? You’re not alone. Most entrepreneurs experience this kind of strife, but not every entrepreneur will verbalize all of the conflicts.
It is a sophisticated battleground with the lines between correct and wrong so fuzzy, and the choices you make can shape your history. In this article, I’ll share a few valuable tips you can use to navigate these situations.
Determining your core values is a prerequisite in facing ethical obstacles. As a leader, values like integrity, transparency and sustainability can be your guiding principles, which you set not only for yourself but also for your company. When these values are clear and communicated correctly, they become a beacon, helping decision-making processes to be simpler and well-managed. The unambiguousness of those values serves as a yardstick to which all company actions are compared, and thus, everybody in the organization knows what is expected of them.
2. Understand the baggage right away
One of the most important skills for any leader is to be able to tell when his/her personal beliefs are at odds with business decisions. A lot of times, the first indication of an ethical challenge is a feeling of discomfort. This unease is not just a matter of emotion; it is a sign of your conscience, which is telling you that your values are being compromised. Acknowledging it early on is a must for you because it gives you the time to analyze the situation carefully, and you won’t make any rash decisions. It gives you an opportunity to form a strategy that is in line with your moral values.
3. Seek multiple perspectives
Ethical problems frequently do not yield simple responses, and what looks right one way around may not appear to be so from another point of view. Therefore, seeking several points of view is necessary. Connect with mentors, friends or any group with different perceptions to have more diverse opinions. Such a process can disclose new insights and may even bring in solutions that you would have never thought of. Another key advantage is that it makes sure the decision-making process is not only based on one set of experiences and backgrounds, which helps prevent the risk of bias.
4. Evaluate long-term impact
It may be tempting for a moment, but these shortcuts have long-term effects. When faced with a decision, it’s important to ask yourself about the long-term impacts: What is the consequence of this choice on my business in the next five, ten and twenty years? Would it hurt my reputation or my relationship with other people? Such aspects are crucial because they facilitate the drive toward sustainable growth and the observance of ethical standards, which are usually the pillars of longevity.
5. Create ethical safeguards
To avoid ethical conflicts and have your decisions a posteriori, that is, consistent with your business ethics, put in place robust ethical safeguards in your business operations. This could be a part of the process of creating an ethics committee or establishing a decision framework that focuses on your core values. This way, ethical principles are practically accessible to everyone through the organization’s hierarchy, and every decision is subjected to ethical scrutiny.
Transparency forms the basis for the establishment and strengthening of trust among team members. When an ethical crisis emerges, admitting the difficulties and how they might affect both personal and business values establishes a precedent of transparency and openness. Such honesty and openness will become a criterion for your enterprise culture. This is not just about trust building but also helping to develop a more engaged and ethically aware employee.
7. Integrate ethics into your brand
Nowadays, consumers are more and more inclined to buy from companies that have a code of ethics. Incorporating ethics into your brand’s storyline will make your business stand out and increase consumer confidence. This synergy builds a deeper connection with the audience because they believe that they are interacting with a brand that reflects their virtues.
8. Get ready to make tough decisions
Balancing personal ethics with business decisions sometimes demands making tough decisions. This might imply declining attractive chances or dissolving cooperation with efficient associates. These decisions are always hard, but they usually have to be done to preserve one’s integrity. The respect and loyalty gained from customers and employees in making these decisions can often far exceed the costs involved.
9. Consider and memorize every decision
Every decision is a learning experience. Analyzing the effectiveness of your choices — what worked, what didn’t and how you can improve — contributes to enhanced decision-making skills. Such a learning process is of utmost importance for more successful and confident dealings with future ethical issues.
10. Lead by example
Leadership is more about walking the talk than giving orders. Through constant decision-making that supports your ethical principles, you become an effective role model for your team. This leadership style not only cultivates an ethical positive climate but also inspires your team to uphold these standards in their own decision-making.
It is not easy to navigate the dangerous waters where personal values and business decisions come together. Nonetheless, when you remain true to your core values, look for different opinions and consider making tough decisions, you can be assured that your business not only prospers but also contributes positively to the world around you.
Do not forget that the purpose of your business is not only to be successful but also to create a business that will speak for your values. This approach does not merely resolve clashes; it turns them into opportunities for growth. Rely on your ethics, and you will build a better business world with more ethical and prosperous firms.
Opinions expressed by Entrepreneur contributors are their own.
We live in a corporate world driven by data. Why, then, do 85% of business leaders report feeling uneasy about the choices they’ve made recently based on cold, hard facts? It’s because data only tells half the story, which is where intuition fits in.
Intuition fills in the gaps and picks up where data leaves off. Have you ever “felt” someone staring at the back of your head? How did you know the person was there? It wasn’t data. It was intuition. You have about 120 billion neurons in the “first brain” within your skull and 100 million neurons in your “second brain” (aka, your gut). If you’re only focused on one of those brains, you’re apt to make poorly informed decisions.
For those just starting out on their entrepreneurial journeys, trusting your “gut” or intuition can feel daunting. You’re often bombarded with a flood of information, conflicting advice and new experiences. In this whirlwind, leaning on your gut might feel like navigating without a map. However, developing this trust in your intuition is crucial. It’s about honing an inner compass that guides you through decisions when clear-cut answers might not be apparent. Over time, as you gain more experience and learn from both successes and failures, what once felt like an overwhelming reliance on an unknown force will start to feel more like a trusted ally in your decision-making process.
I don’t mean to suggest that data isn’t important. It is. However, trusting your gut is just as important. Your gut can speak volumes. You just have to learn how to marry it with data to drive an informed conclusion. If you’re new to allowing intuition into your decision-making process, follow these steps:
When you have a problem to solve, don’t just pore over spreadsheets and charts. Look for innovation elsewhere.
Once, I was part of a group asked to increase the penetration of the Hispanic marketplace at Disney. To find ideas in unusual places, our group spent a day with three different types of people: a “weird,” a “deep” and a “normal” (for context, a “weird” is someone who has a tangential relationship to your challenge but is from a different industry. A “deep” is someone who works in your industry but doesn’t work for you. A “normal” is someone within your industry and company sphere).
My “weird” was a Hispanic car dealer. He and I drove a car to a Hispanic family so they could test it out. The car dealer noted to me that there would be more than 20 people in the kitchen when we arrived. He was right. I considered this a clue, so I wrote it down. Another clue happened when the abuela casually mentioned: “When there’s a fiesta, we fiesta; when there isn’t one, we make one.” Her words were met by laughter, and the laughter kept coming as more of the family loaded into the car.
Next up was my “deep,” a theme park industry travel agent who catered to Hispanic families. I watched as she talked with a couple about a 50th wedding anniversary cruise. All they cared about was having five tables of 10 people together for dinner on the cruise ship. They didn’t care about the ports or the cruise line. Another clue.
Finally, I met up with a “normal.” This was a Hispanic woman celebrating her son’s first birthday. Tons of friends and family members were there, but she lamented that the party wasn’t complete because her brother was missing. Now, the clues came together: Hispanic families wanted a place where they could gather together in large numbers. Therefore, if we could create a series of packages to meet that need, we could better attract and serve the Hispanic market.
Our experience of reaching out in unusual places resulted in a bucketload of ideas. Those ideas couldn’t have seen the light of day without being prompted by the intuition that our data wasn’t telling us everything we wanted to know.
It’s one thing to believe in the power of intuition. It’s another thing to embrace it wholeheartedly at work. So, how can you cultivate it in yourself and those around you? Start by integrating it into your discussions, especially during meetings or planning sessions. While it’s important to respect and understand data, also open the door to conversations focused on the human element of whatever you’re trying to figure out.
Listening is a critical aspect of these intuitive-based discussions. Ask open-ended questions to push people to provide more information that feeds into your intuition. And don’t just listen to what they’re saying; observe their body language and how they’re interacting with the world around them. Something invaluable I learned early in my career at Disney was to speak last. Listen to everyone in the room so you can gain the insights needed to more intuitively contribute to the conversation. Avoid overthinking it; instead, let your intuitive voice speak to you and guide you.
Remember: Your competitors probably have a lot of the same data as you. However, they don’t have your and your team’s unique, intuition-derived insights. By trusting these insights, you can uncover emotional connections and consumer needs that aren’t evident in the data alone, giving you a competitive edge. Invite couples into the conversation when you’re seeking these intuitive nuggets. Often, couples will police each other’s responses, ensuring authenticity as one partner corrects the other if they stray from the truth. This dynamic allows you to glean deeper information than you might from individuals alone.
Furthermore, take the opportunity to step out of your usual office or focus group settings and visit the living spaces of your consumers. Observing them in their natural surroundings can reveal additional intuitive insights, as you’ll notice things in their environment that either confirm or challenge your preliminary thoughts. This approach not only enriches your understanding but also strengthens the human element in your research, providing a robust foundation for making more empathetic and consumer-focused decisions.
For entrepreneurs, mastering the balance between data-driven insights and intuitive thinking is a powerful stepping stone toward effective decision-making. While data provides a solid foundation, embracing your intuition adds a critical dimension, allowing you to see beyond the numbers and make connections that might otherwise go unnoticed. I encourage you to trust your gut feelings, as they are invaluable in navigating complex situations where data alone may not provide all the answers. As you continue to grow your business, combining these skills will not only boost your confidence but also distinguish your approach, helping you craft innovative solutions and forge meaningful connections.
There might be affiliate links on this page, which means we get a small commission of anything you buy. As an Amazon Associate we earn from qualifying purchases. Please do your own research before making any online purchase.
Let’s solve a quick math problem.
A bat and a ball cost $1.10. The bat costs $1.00 more than the ball. How much does the ball cost?
Ten cents, right?
At least that’s what first came to mind for me when reading this first question in a series of three in the Cognitive Reflection Test.
But the intuitive answer of ‘ten cents’ is wrong, and if you are one to solve problems analytically, you would know this immediately. Let’s look at the logic:
If the ball was 10 cents and the bat was one dollar more than the ball, the bat would cost $1.10. Adding the presumed price of the ball on top of this would give you a total of $1.20. This means the ball has to cost $0.05, and the bat has to cost $1.05, which comes out to $1.05 + $0.05 = $1.10.
If you initially got the answer wrong like I did, the explanation for the correct answer makes obvious sense–but why was this not obvious in the first place?
We often simplify complex problems so we can solve them quickly. In the case of the ball and the bat, it’s common to unconsciously replace “$1.00 more than” with the absolute statement of, “The bat costs $1.00.” This math is simpler–if the two items cost $1.10 and the bat is one dollar, the ball has to be 10 cents.
So, what’s the point?
There are a lot of reasons that we take “mental shortcuts” when making decisions or judgments, which are called cognitive biases. Often, these quick mental processes have to do with relating the problem at hand to past experiences or making sweeping generalizations.
In this article, we are going to define cognitive biases and then look at 15 examples of common biases that many people hold onto that can cloud rational thinking.
Let’s get to it.
What Are Cognitive Biases?
Cognitive biases are mental mistakes that people make when making judgments about life and other people. They typically help us find shortcuts that make it easier to navigate through everyday situations.
However, as people use their own perceptions to create what they believe to be a reality, they often bypass any rational thinking.
People tend to use cognitive biases when time is a factor in making a decision or they have a limited capacity for processing information. And, without considering objective input, one’s behavior, judgment, or choices may end up being illogical or unsound.
Like most things, cognitive biases have their benefits and their drawbacks. For example, imagine that you’re walking home alone late one night and you hear a noise behind you.
Instead of stopping to investigate, you quicken your pace with your safety in mind. In this case, timeliness is more important than accuracy–whether the noise was a stray cat rustling in some leaves or it was a perpetrator trying to harm you–you’re not likely to wait around to find out.
Alternatively, think of a jury judging someone who is being convicted of a crime. A fair trial requires the jury to ignore irrelevant information in the case, resist logical fallacies such as appeals to pity, and be open-minded in considering all possibilities to uncover the truth.
However, cognitive biases often prevent people from doing all of these things. That said, because cognitive biases have been studied extensively, researchers know that jurors often fail to be completely objective in their opinions in a way that is both systematic and predictable.
Let’s take a look at 15 specific cognitive biases that many people experience. After reading this article, you will be able to spot these biases in your everyday life, which can prompt you to take a step back and further analyze a problem before coming to a conclusion.
15 Common Cognitive Biases Many People Have
1. Bandwagon Effect (AKA “herd mentality” or “groupthink”)
The bandwagon effect is a cognitive bias that occurs when people place a greater value on conformity than expressing (or having) their own opinions, which can result in irrational decision-making.
The desire for cohesion in a group may lead to a tendency for its members to agree with the group at large without doing any critical thinking individually to come to their own conclusions.
The bandwagon effect, which is similar to the bandwagon fallacy, averts individuals from exploring alternative solutions or questioning the norm–often through feelings of peer pressure.
People tend to avoid ruffling any feathers in a group in fear of being perceived in a negative way by other members–or, people just assume that the right conclusion has been made since so many people agree with it.
Without new, constructive opinions being presented, groups are hindered from achieving any type of growth, which can be especially costly if they’re facing new challenges.
In fact, studies have shown that if a group or organization is facing an external threat or is under a significant amount of stress, they tend to make more errors in their decision-making and even make repeat decisions that they know have been ineffective in the past.
The bandwagon effect can also lead to risky behavior due to the overestimation of the group’s power, inflexible attitudes, and a lack of group members’ freedom of expression.
Of course there are extreme examples of this cognitive bias such as cult followers, but you may also see this type of cognitive bias in everyday decisions such as fashion trends, diet fads, or political votes.
2. Choice Supportive Bias
People often defend their choices after making them and may even remember their choices as being better than they really were.
For example, let’s say that even though most of your friends own an iPhone, you decided to buy a Google Pixel. After doing so, you may be more likely to ignore any faults that you find in your Pixel but be quick to notice the downsides of having an iPhone.
Similarly, you may convince yourself that the “advantages” of having an iPhone are not really that great, but be eager to brag about the advantages of your Pixel when talking to other people.
People don’t like to admit that they made a bad decision (if, in fact, your decision turned out to not be as great as you were expecting). And, once you make a decision, your evaluation of the quality of the choice may become biased, and subsequently influence your decisions in the future.
3. Dunning-Kruger Effect
The Dunning-Kruger effect is a cognitive bias that describes situations in which people overestimate their ability to do something or their knowledge about a certain subject. This typically happens due to a lack of self-awareness, preventing someone from accurately evaluating their own skills.
As it turns out, many people mistakenly consider themselves to be above average in a variety of skills.
According to the researchers, this is because they lack metacognition, which is the ability to look at one’s own abilities in an objective way. And, those with the least amount of metacognition are also those who are the most likely to overrate their abilities.
4. Egocentric Bias
The egocentric bias leads to the projection of one’s own thoughts, beliefs, and feelings onto others, particularly when the people are close friends or family.
The egocentric bias can also lead people to believe that outcomes that are in their favor are fair–knowing full well that if that same outcome were to have favored others instead, they would have considered it to be unfair.
The egocentric bias leads to the projection of one’s own thoughts, beliefs, and feelings onto others.
For example, people with egocentric bias may believe they deserve more than others when divvying up positive rewards, such as profits.
However, if that same group is instead receiving blame because they failed, this person would believe they deserved less blame than the others and refuse to take responsibility for any mistake that was made.
5. Survivorship Bias
Survivorship bias is a cognitive bias in which we place undue emphasis on success stories without taking past failures into full account. Consider this: for every major success in the world, there are thousands of failures who started out with the same goal.
But stories of failure are not as widely talked about as those of triumph, so they often don’t get taken into account. As we hear one success story after another, we start to overestimate the likelihood of being successful as we disregard the initial number of players.
Take some well-known success stories for example, like Bill Gates, who dropped out of college. He went on to become a billionaire, but most people who dropout of college don’t experience this same success.
And while people can learn from the work ethic and habits of Bill Gates, you can’t expect to achieve the same results by doing exactly what he did.
Survivorship bias leads to false beliefs of cause and effect. People believe correlation exists without considering all of the factors. And while success stories of beating the odds are encouraging, we can’t forget about those who failed and assume beating the odds is the norm.
6. Pessimism Bias
The pessimism bias leads people to overestimate the likelihood that something negative will happen and underestimate the likelihood that something positive will happen, especially when it comes to considering the potential outcome of future events.
For example, this cognitive bias may lead someone to believe they’re going to get fired for making a mistake, even though all of their other work up to that point had been great. Or, it may make someone give up on trying to reach their goals by making them believe they won’t succeed no matter how hard they try.
The pessimism bias can cause people to make irrational decisions and potentially lead to a variety of mental health issues and poor emotional outcomes.
Quick question: Do you know how many people climbed Mount Everest in 2018?
Unless you’re an expert in this field, you would likely have to take a guess–which can be tough if you have little (or no) factual information to go on.
So, to come up with a guess, we have to be resourceful by relying on mental shortcuts to estimate the answer. However, doing so doesn’t always produce an accurate response, and cognitive biases often influence our answers.
The anchoring bias is one that occurs when we consider what information we do know to give us a starting point or a baseline to make a judgement. The problem with this is that we aren’t picky when determining a focal point, and often rely on the first point of reference we can think of.
Anchoring bias occurs when we consider what information we do know to give us a starting point or a baseline to make a judgement.
Psychologists Amos Tversky and Daniel Kahneman conducted a study on the anchoring bias by having participants spin a wheel of numbers before estimating the percentage of countries in Africa belonging to the UN.
The researchers found that those who landed on a higher number when spinning the wheel made much higher estimates for the percentage of UN countries in Africa than those whose wheel stopped on lower numbers.
The entirely unrelated number on the wheel provided participants with a cognitive “anchor” for the answer to the unconnected geography question.
8. The Framing Effect
This cognitive bias occurs when one’s decisions are swayed depending upon how information is presented through different phrasing or emphasis. This is a great tool for advertisers to use when trying to sell a product.
People tend to avoid potential loss, which is why we find it attractive when positive features of an option are highlighted rather than negative ones.
Consider this: Let’s say you’re presented with two identical bottles of hand sanitizer, but one says, “Kills 96% of germs” and the other says, “4% of germs are unaffected by this product.” Do you think you would be more inclined to buy the first bottle?
Researchers have found that people perceive losses as being more significant than equivalent gains–so if you lose $10, your feelings of frustration will be stronger than your feelings of joy if you win $10.
Because we want to avoid loss, we tend to look for options that guarantee a gain of some sort, and the wording of a claim can impact whether or not we believe it will produce a gain or a loss.
So, the framing effect “frames” statements in a way that can potentially convince you of something one way or another.
9. Recency Bias
Recency bias explains the phenomenon of remembering something that has occurred recently more easily than remembering something that happened a while ago.
This bias can have a negative impact on investors who fail to look at the bigger picture of financial trends when making trading decisions and only focus on what the market has done in the past few months.
The recency bias may also impact employees during a review period if their supervisor makes this cognitive mistake.
If an employee has made a recent error, but their overall performance is good and they have done several impressive things over the past quarter, their supervisor may put undue focus on their mistake without putting it into proper perspective with their comprehensive work performance.
This could also work the opposite way for an employee who has struggled in the past, but has made a recent “win” for the company.
10. Status Quo Bias
People are often resistant to change, but the status quo bias takes this idea to the next level. It states that even when only a small transition cost is required to make a change that will have a big impact, people still default to the “status quo” or whatever they’re familiar with.
The status quo bias could be explained by people’s feelings of loss aversion, the sunk cost fallacy mindset, a desire to feel in control, or the action-effect, which is based on an observation that people feel more regret after taking new actions that result in bad outcomes than they do for bad consequences that result from inaction.
While the status quo bias is often seen as being irrational, standing by seemingly safe choices that have worked in the past is common when one is faced with a high amount of uncertainty or is overwhelmed with too many choices.
11. Empathy Gap
The hot-cold empathy gap is a cognitive bias that leads to a difficulty in understanding the current feelings or emotions of others who are in a different mental state than oneself.
The video below give a quick overview of the hot-cold empathy gap and how it can often destroy your attempts to break a bad habit.
Empathy gap can prevent people from considering how certain mental states influence other people’s behavior and judgments. Essentially, this means that when person A is happy, he has a hard time understanding the perspective or predicting the actions of person B, who is having a very stressful day.
When it comes to misunderstanding others, the empathy gap can cause someone who is having a hostile reaction to an issue in a meeting to struggle to comprehend the perspective of a colleague who is looking for a peaceful resolution.
This cognitive bias can also make it difficult for someone to understand their own future perspectives. So, if a person feels relaxed right now, the empathy gap can make it hard for them to imagine feeling angry.
It’s important to understand the empathy gap because it has strong implications regarding the interpretation and prediction of your own behavior and that of other people.
12. The Outcome Bias
Let’s say you decide to invest some money in real estate after finding out a friend made a large return on their investment from buying real estate when interest rates were very low.
But, instead of looking at all of the factors that went into your friend’s success such as the location of the property, any upgrades that were made, or the timing of the sale, you focus solely on the fact that your friend made money.
Fast forward a few years and you, too, have ended up with a financial gain from your investment. When thinking in terms of the outcome bias, this means you’ll consider your initial decision to be a good one, regardless of the fact that it was uninformed.
Alternatively, let’s say you lost a lot of money. You would then think your decision to invest in real estate was a bad idea. But, you’re only making this judgment after all is said and done instead of equipping yourself with enough information from the beginning to make an informed decision.
Outcome bias can occur when you place too much emphasis on a past positive outcome.
People tend to determine the quality of their decisions after seeing the results rather than analyzing the current circumstances and trying to predict the impact of their actions.
This is erroneous because without analyzing all of the influential factors, you can’t make an informed decision as to whether or not the outcome is likely to be good.
Placing too much emphasis on a past positive outcome and assuming conditions have remained the same, meaning the decision is still a good one is what defines outcome bias.
13. Confirmation Bias
People tend to pay attention to things that confirm what they already know (or believe) to be true or interpret information in such a way that it lines up with their existing beliefs. Similarly, people often undervalue or reject information that goes against their beliefs.
Consider the way people choose one news source over another–they want to read (or watch) whatever aligns with their perspectives. Many news sources are heavily biased, even when presenting the same topics as other sites or channels, so people tend to watch news from a source that validates their beliefs.
The need for an efficient way to handle new information- We have endless amounts of information coming at us from all directions, it would be impossible to analyze all of it to form a completely unbiased opinion about anything. Because of this, people tend to only look for information that they want or need in order to inform their decisions.
To preserve one’s self-esteem- People seek out information to support the accuracy of their beliefs to make themselves feel competent and confident.
To reduce cognitive dissonance- Cognitive dissonance is the mental conflict that results from believing two contradictory ideas. The confusion that occurs when one is exposed to disconfirming information leads to psychological stress, which can be avoided by simply pursuing reinforcing evidence of a single belief.
Confirmation bias is especially present–and dangerous– during presidential campaigns. When there is an election on the horizon, people pay attention to the information that confirms their opinions about certain candidates while ignoring information that goes against their views.
Obtaining information in such a subjective way can cause people to pick and choose what they believe about a candidate, which will influence their vote and ultimately determine who leads our country.
14. The Ostrich Bias
Have you ever left a bill sitting unopened on the counter because you knew it was going to be high, but you didn’t want to know just how high it was? Maybe you wanted to live in blissful ignorance for just a few more days?
The ostrich bias takes confirmation bias one step further by choosing to ignore negative information that is clearly present–often in hopes that if the information is ignored, it will go away.
Consider the ostrich effect when it comes to people’s decisions regarding when to seek formal diagnoses when they’re experiencing troubling health symptoms.
One study found that people’s fear of getting a serious diagnosis can lead them to ignore the health issues that they’re clearly facing, even though learning the truth sooner rather than later may be critical to their long term wellbeing.
So, let’s say your goal has to do with losing weight, but lately, your efforts have been lacking. If you think in terms of the ostrich bias, you will avoid weighing yourself or stop maintaining an honest food journal.
The ostrich bias occurs in situations in which people have emotional ties to information, and they also have some control over protecting themselves from it.
This is true even when avoiding the information will almost certainly reduce the quality of the person’s ultimate outcome. This is because being cognizant of the information may force the person to face disappointments that are mentally easier to avoid.
15. Availability Bias
The availability bias occurs when people overestimate the importance of the information that they have. For example, many people live in fear of dying from a terrorist attack because these stories are so often covered extensively on the news.
But people don’t often form their beliefs upon facts, rather they hear stories on the news or from other people and narrow their thinking to this information.
Because of the fear that they incite and the loss of control people feel over their safety, terrorist attacks are frequently talked about many times over, which puts this scenario at the front of people’s minds.
However, that person who died from being crushed to death by a falling television won’t get nearly as much on-air attention as the most recent terrorist attack on our citizens.
Thinking in terms of the availability bias prevents you from taking an all-inclusive look at something by considering all of the facts.
Learn More About Other Logical Fallacies
Final Thoughts on Common Cognitive Biases
Can you think of some times in your life where you have thought in a way that lines up with some of these biases? Hopefully after recognizing that these are examples of faulty reasoning, you will know in the future to take a step back and make further considerations before coming to any type of conclusion.
You can also use this list to help you identify when other people are thinking in terms of a cognitive bias so you can be better prepared to make your own conclusions when someone is making an argument or trying to convince you of something.
Connie Mathers is a professional editor and freelance writer. She holds a Bachelor’s Degree in Marketing and a Master’s Degree in Social Work. When she is not writing, Connie is either spending time with her daughter and two dogs, running, or working at her full-time job as a social worker in Richmond, VA.
There might be affiliate links on this page, which means we get a small commission of anything you buy. As an Amazon Associate we earn from qualifying purchases. Please do your own research before making any online purchase.
Thinking back to your childhood, do you remember your parents ever asking you, “If all of your friends jumped off a bridge, would you do it too?”
I know this fictional scenario was often presented to me when I argued to do something “because everyone else was doing it” but it didn’t often work very well.
As adults, the term “jumping on the bandwagon” is a commonly used phrase expressing our tendency to do something just because “everyone else” is doing it.
We tend to like conformity because agreeing with other people is helpful as it allows us to coexist and cooperate with each other. According to the Asch Conformity Experiment, this is because of two things:
We want to fit in and are therefore influenced by norms
We believe a group of people must be better informed than we are as individuals so we are quick to change our minds if the majority of people all believe the same thing
People often use this false reasoning to talk others into taking a certain action or believing something just because it’s the common thing to do. However, this is flawed logic and can have negative consequences, so it’s important to be able to identify the bandwagon logical fallacy so you don’t fall into its trap.
In this article, we will look at what the bandwagon fallacy is and then review nine examples that may come up during an argument so you can know exactly what you’re looking for when trying to spot this logical fallacy.
Let’s get started.
What is the Bandwagon Fallacy?
The bandwagon fallacy is based on the assumption that the majority’s opinion is always valid. This has a peer pressure component to it, as it argues that if everyone else believes something, you should too.
However, this logic only proves that a belief is common, not that it’s accurate. This logical fallacy is used in arguments to convince others of something when there is no factual argument to use to prove the topic at hand.
This faulty method of reasoning is common to come across, whether it’s being used unintentionally or on purpose for someone’s benefit.
Advertising is especially filled with examples of the bandwagon fallacy because it’s a good way to make potential customers believe they could become part of a larger group who already benefits from using a certain product or service.
The bandwagon fallacy has 18th century political beginnings, as musicians would ride on a bandwagon ahead of a crowd when they were going to a political rally, which would gather more and more people because of the excitement.
The idiom that has come from this suggests that people will follow anything if it’s garnered a lot of people’s attention, even if they have no idea what it is or whether or not it’s true. The bandwagon fallacy has a snowball effect, meaning as more and more people jump on the wagon, others will continue to do so as well.
This saying transitioned to the figurative term we use today by the 1890s.
The bandwagon fallacy is especially powerful when the person who is on the receiving end of it wants to be popular or to feel like they are a part of a group. It’s also effective at tricking people who aren’t good at making their own decisions or they’re hesitant to try anything new.
This fallacy is often used in the following situations:
When a trend emerges in society (like eating a gluten free diet)
When something or someone is increasing in notoriety (like Justin Bieber several years ago)
When an audience doesn’t know which product is best
A new product or service comes out
You know your audience want to be a part of something bigger
Its typical form is:
Everyone likes X
Popular things are always good
X must be good (or true)
The bandwagon fallacy goes by several other names, such as the “argumentum ad populum” (appeal to the people), “authority of the many” and “appeal to popularity”.
These terms are often used interchangeably, but in this article, we will stick with the most common name and definition of this fallacy without digging into the slight differences that others may have.
Let’s take a look at some examples of bandwagon fallacies so you can get a comprehensive understanding of how to spot them.
9 Bandwagon Fallacy Examples to Spot During an Argument
1. Fitness and Health Trends
Caroline eats a well-rounded diet and exercises on a regular basis. However, all of her friends at work are starting a low-carb diet that consists mostly of protein shakes.
Her officemate tells Caroline about their plan and how they’re going to all keep each other accountable, so she should join in. Caroline decides this must be the healthy thing to do so she agrees to do this special diet along with everyone else.
This may be harmful for Caroline, especially if her coworkers aren’t very knowledgeable about health and fitness and they’re mainly aiming to lose weight. Caroline’s weight may already be ideal and eating a more well-rounded diet is probably in Caroline’s best interest considering her exercise schedule.
Fitness and health trends are often examples of the bandwagon fallacy, because things become popular even if they aren’t good for everyone. Recent examples of this include specific diets like the gluten free diet, the paleo movement, eating vegan, etc.
Also, diet aids (such as ephedra) have caused a harmful bandwagon fallacy effect. Ephedra became popular without people paying attention to dosing, which ultimately led to fatalities.
2. Going to College
“Because everyone else goes away to college, it must be the right thing to do.”
Our country does spend a disproportionate amount of money on those who attend college than those who choose not to. However, the vast majority of people do not even end up achieving a bachelor’s degree.
There is a lot of debate on whether or not going to college is extremely necessary for most people, but there isn’t much debate about the fact that there are exceptions to this, and there are many people who have become very successful in life without attending college.
3. Advertising
Advertising in general often uses the tactic of making something seem popular, therefore making it appealing. Take a look at this ad for toothpaste as an example:
The ad suggests that you’re already behind the curve because so many people have already switched, which is an appeal to have you “jump on the bandwagon” so to speak.
4. In History
Most people believed the earth was the center of the universe until the 16th century, which we now know isn’t true.
The “geocentric” model that was once commonly believed was a faith-based observation that was mostly accepted because others claimed it to be true without making their own observations or calculations.
Those who eventually uncovered the truth like Galileo and Copernicus were people who would not appeal to what everyone else believed (i.e. they didn’t jump on the bandwagon) just for the sake of it.
5. In Movies
The bandwagon fallacy often arises in movies. If you’ve seen Mean Girls, you can probably remember a scene where everyone in the high school was copying the things the antagonist, Regina, was doing.
No matter how ridiculous her actions seemed, everyone was following Regina’s lead just because Regina was so popular. As her actions and fashion statements started to be mimicked by others, more and more people jumped on that bandwagon so they could fit into the crowd.
In the movie, Mean Girls, no matter how ridiculous Regina’s actions seemed, everyone was following her lead just because she was so popular.
6. In Fashion
Fashion trends come and go…and come back again. And with as much as 90’s fashion has been ridiculed in the media in the mere two decades since it was the norm, I will never understand how–or why– it returned so quickly.
As I walked through college campus last year seeing a huge number of people following this trend, I had to wonder how many of them actually felt like they were expressing themselves exactly how they wanted to…and how many were following this growing fashion trend just because other people were doing it.
I feel for those who will inevitably look back on their pictures from college 20 years from now, wondering WHAT they were thinking…but I have to assume as trends change, that will always be the case.
7. Social Media Use
Sarah believes social media is damaging to relationships. She prefers face-to-face interactions and thinks communication can be misunderstood through social media.
However, because all of her friends have joined and talk to each other through this medium, Sarah has decided it must not be that bad and creates an account.
Sarah has decided to abandon her values and beliefs in favor of her friends’ behaviors. She doesn’t have evidence that social media is either good or bad for relationships, but she assumes it must be alright since everyone else is doing it. So, Sarah has jumped on the bandwagon.
8. Buying the Latest Gadgets
“Everyone is getting the new smartphone that’s coming out this weekend, you have to get it too!”
This is a type of peer pressure that falls under the bandwagon fallacy. The speaker is trying to convince someone that they should do something because everyone else is, so it must be a good idea.
However, if the person has a phone that works perfectly well for them and they don’t have a need for a new one, the fact that other people are buying it doesn’t create a need–it may create a want–but that doesn’t make it necessary.
Plus, if their budget doesn’t allow for it, following the crowd with this one can be harmful.
9. Sports
When it comes to cheering on sports teams, spectators have been known to start following a team when they become successful–even if the team has been around for a long time.
Then, if that team becomes less popular or has an unsuccessful season, the sports lover moves on to become a fan of the next team that is successful or popular.
In this case, the fan’s belief that the team they’re rooting for is the “best” is based solely upon their observation of other people’s growing enthusiasm for the team.
Whether or not the team should be their favorite is irrelevant, it’s their reasoning behind rooting for the team–believing they should because more and more people are doing it– is what makes this an example of a bandwagon fallacy.
Read More About Logical Fallacy Examples
Final Thoughts on Spotting the Bandwagon Fallacy
This fallacious line of reasoning presents an argument without proof of its validity– it only recognizes popularity.
While there are a lot of popular beliefs that are, in fact, true–it’s the facts that support the beliefs that make them true, not the idea that they’re popular.
You have probably noticed that the bandwagon fallacy doesn’t take any contrary evidence into account when making a claim, which is not only irrational, but can also be dangerous.
Be on the lookout for this type of argument in the future so you can spot it and recognize the fallacy rather than fall into its trap.
Connie Mathers is a professional editor and freelance writer. She holds a Bachelor’s Degree in Marketing and a Master’s Degree in Social Work. When she is not writing, Connie is either spending time with her daughter and two dogs, running, or working at her full-time job as a social worker in Richmond, VA.
Opinions expressed by Entrepreneur contributors are their own.
Hold on to your hats, you business visionaries! Today, we’re diving headlong into a subject that’s as intriguing as it is underappreciated — the butterfly effect in business. This isn’t merely about decision-making; it’s about understanding that the subtlest shifts in your strategy could set off a cascade of events, potentially transforming your enterprise from an upstart to a unicorn — or vice versa. Intrigued? You should be.
Years ago, as an aspiring entrepreneur, I was awash with innovative ideas and a clear-cut business plan … or so I thought. What was not in my plan? Accounting for the power of tiny, seemingly inconsequential decisions that eventually turned my business on its head. Sounds like a Shakespearean tragedy? Well, it’s more of an eye-opener.
The butterfly effect originates from chaos theory, a discipline that deals with systems sensitive to initial conditions. The concept is quite simple: A butterfly flaps its wings in Brazil and sets off a tornado in Texas. It suggests that a tiny change can lead to substantial future consequences. In a business landscape, you, my friend, are that butterfly, and your flaps could either spin a web of success or entrap you in failure.
Let’s take a stroll down memory lane. Blockbuster, the undisputed behemoth of video rentals, had the opportunity to buy a fledgling company called Netflix for a paltry $50 million. The then-CEO of Blockbuster laughed it off. The result? Netflix has disrupted how we consume content, achieving a market capitalization in the hundreds of billions. At the same time, Blockbuster has been relegated to business school case studies on what not to do. Small choices, massive ramifications. That’s the butterfly effect at play.
Case study 2: Kodaks’s digital downfall
Another iconic example is Kodak. This once-mighty photography giant invented the digital camera way back in 1975. Afraid this new invention would cannibalize their film-based business, they chose not to prioritize it. Kodak’s hesitance allowed competitors to swoop in and dominate the digital landscape, driving the company into bankruptcy. A seemingly cautious decision led to a disruptive catastrophe.
Decisions, decisions: Rethink your strategy
Now that you’ve felt the heat, let’s talk solutions. Every decision, every email, every hiring or firing, every strategy alteration holds immense potential energy — like a coiled spring. So, how can you navigate this labyrinth of endless choices without stumbling?
1. Data-driven yet intuitive:
In an age where data analytics offer incredible insights, it’s easy to get stuck in a loop of analysis paralysis. While analytics are indispensable, they’re not a substitute for human intuition. Marry your gut feeling with raw numbers for a well-rounded decision-making process.
2. Assemble a stellar advisory team:
An echo chamber of yes-men is a ticking time bomb. Your advisory team should be a blend of seasoned professionals and fresh minds who can offer a myriad of perspectives. The beauty of collective wisdom is that it provides a safety net for your decisions. Don’t be afraid to seek advice, but remember: The final call is yours, so make it count.
3. Embrace risks as opportunities:
It’s a common misnomer that entrepreneurs are daredevils. In truth, the most successful business leaders are meticulous risk-assessors. Instead of shying away from risks, they embrace them as an integral part of the entrepreneurial landscape. Consider the pros and cons, consult your team, and then take that calculated leap. Who knows? It might just be the flap that leads to your tornado of success.
You can either lament the inherent uncertainties in business or embrace them as opportunities for unique differentiation. Let’s explore how to turn the butterfly effect to your advantage.
1. Future-proof like a fortune teller:
No one can predict the future, but you can prepare for it. Instead of focusing solely on this quarter or year, align your strategies with a long-term vision. Whether it’s investing in sustainable technologies or focusing on revolutionary product innovations, make choices that future-proof your business.
2. Be your toughest competitor:
The enemy of sustained success is complacency. To keep the butterfly effect working in your favor, constantly strive to outdo yourself. The market is ever-changing, and yesterday’s laurels are today’s compost. Keep setting new benchmarks, and strive to surpass them.
3. Take the road less traveled:
Conventional wisdom has its merits, but unconventional wisdom can change the world. When faced with critical decisions, dare to challenge the status quo. Your audacity to step off the beaten path can stir ripples that set you miles apart from the competition.
The curious case of social media: Virality or obscurity
Let’s talk about the modern problem that every entrepreneur faces today — social media. A single tweet, a LinkedIn post or Instagram story can skyrocket your brand to viral fame or sink it into obscurity. Remember the notorious Pepsi commercial that faced severe backlash? On the flip side, think about the Airbnb “Belong Anywhere” campaign, which was a massive hit. Both brands took a gamble with their social media choices; one led to a public relations nightmare, and the other set the benchmark for clever marketing. The butterfly effect isn’t just old-school; it’s as contemporary as your latest tweet.
Leverage thought leadership
In today’s highly competitive landscape, your brand is often as important as your company’s. And guess what? Every blog you write, every podcast you feature in and every panel you speak on matters. Become a thought leader in your industry. Share unique insights only you can offer with your experience and expertise. This isn’t just about ego; it’s about strategically positioning yourself as an authority. That, in turn, lends credibility to your business. One well-placed article or a groundbreaking keynote could be the wing-flap that propels your business into the stratosphere.
Entrepreneurs heed this: The butterfly effect is not just some obscure theory conjured up in scientific laboratories. It’s a palpable force shaping your business with each decision you make. Your ability to foresee, assess and wisely act on these decision-making moments will determine your legacy in the business world.
So, what’s it going to be? Will your next decision be a mere whisper, or will it echo through entrepreneurial history? Make it count because, in the business world, the flap of your wings today could be the tornado — or the rainbow — of tomorrow.
Opinions expressed by Entrepreneur contributors are their own.
Business owners and managers often face difficult decisions that involve weighing ethical and unethical options. However, making choices that consider ethics can have significant long-term benefits for a company.
When employees feel their company prioritizes ethics, it fosters trust and loyalty. They’ll be more motivated to give their best work. Customers also care deeply about supporting businesses with strong values. An ethical reputation builds goodwill that leads to repeat customers and word-of-mouth marketing.
Moreover, in today’s transparent world, unethical actions usually don’t stay hidden for long. A single lapse in judgment can go viral on social media and seriously damage a brand. Several large companies have suffered enormous financial losses due to ethics scandals. Clearly, incorporating ethics into decision-making is simply a good business strategy.
Still, ethics are not always black and white. Managers must thoughtfully weigh various factors like short-term profits versus long-term impacts. Here are some practical considerations to guide them.
Many business owners fall into the trap of focusing exclusively on financial outcomes when making choices for their companies. While profits are important, they should not be the sole criteria against which options are judged. Remember that your business does not operate in a vacuum — it has an impact on employees, customers, suppliers and the wider community. Ignoring ethics can seriously damage relationships and goodwill over time.
For example, cutting corners on product safety or quality to reduce costs may lead to higher profit margins in the short term. However, it also risks harming customers, resulting in negative publicity, and losing the trust that has been built up. In contrast, prioritizing ethical practices shows stakeholders that you value more than money and helps ensure the sustainability of the business.
Most organizational decisions are complicated, with outcomes that are difficult to predict with certainty. Hasty or self-interested choices often fail to consider all angles. It is wise to carefully weigh both intended and potential unintended consequences before acting on an idea.
Imagine, for instance, a clothing company that decides to significantly lower the wages of its factory workers abroad to reduce production expenses. While this may boost profits in the accounting ledgers, have leaders fully contemplated how it impacts livelihoods and morale? Have they accounted for the possibility of quality or retention issues down the line from unhappy employees? Stepping into others’ shoes and viewing decisions from their perspective can surface important uncertainties or ethical issues to address.
Staying consistent with core values
Establishing a strong set of values and operating principles for a business is crucial. These provide an agreed framework and shared understanding for navigating complex choices. However, values only matter if teams consistently work to uphold them in both good times and bad.
When under pressure to cut costs or hit unrealistic targets, it is all too easy to compromise on ethics “just this once” and rationalize it away later. Over time, these mini-exceptions can erode the integrity of an organization. By openly discussing values as part of decision-making, leaders can ensure options align with what the company stands for – not just what seems expedient right now but damages credibility in the long run.
No business exists in isolation from those it interacts with. Customers, employees, and community members all have useful perspectives informed by their experiences. Making time for open communication and stakeholder feedback can be eye-opening, revealing both future opportunities and potential pitfalls that leaders may have overlooked.
For instance, regularly surveying frontline workers gives insight into day-to-day operational realities and early warning of any brewing issues. While undesirable information requires courage to hear, ignoring problems often makes them worse. Building a two-way dialogue shows respect for others and improves the quality of choices by grounding them in reality.
Many ethical lapses occur due to a narrow focus. It’s important to map how decisions reverberate throughout extended networks. For example, while optimizing one department may slightly benefit shareholders, what consequences ripple to suppliers, the environment or society? Taking a systems view ensures no one is left shouldering undue risks or costs.
Review with hindsight
Revisiting earlier choices allows for spotting patterns and blind spots. What could have been done differently with the benefit of hindsight? Lessons learned should inform future policy settings and discussions. It also reinforces wisdom gained over time. Through experience, judgment improves at building ethics seamlessly into a business’ strategic priorities and daily operations.
Weighing ethical considerations cannot be set aside or delayed when times get challenging. On the contrary, it becomes even more crucial. Leaders who thoughtfully consider the impacts on all stakeholders, stay consistent with core values, and invite diverse input tend to build businesses that endure because they have wisely constructed strong foundations of integrity and trust.
In the end, the most successful organizations are usually those deliberately guided not only by profits but also by principles.
Opinions expressed by Entrepreneur contributors are their own.
Whether you’re an entrepreneur, leader or just starting out, effective decision-making is a cornerstone of success in business. Every choice made, from routine operational tasks to major strategic moves, plays a pivotal role in shaping the trajectory of an organization.
However, decision-making isn’t just about intuition; it requires a blend of critical thinking, analysis and a touch of wisdom. That’s why we will delve into actionable steps that can help individuals enhance their decision-making skills in a world full of seemingly limitless options.
Effective decision-making serves as a compass that guides entrepreneurs through the complex landscape of business. Well-thought-out decisions not only impact immediate outcomes but also cultivate a culture of clarity. When leaders consistently make decisions that are grounded in careful thought and aligned with the organization’s principles, it creates a pattern of clear decision-making. This consistent clarity signals a sense of purpose, direction and unity for the team. In this environment, employees gain a deeper understanding of the rationale behind choices — eliminating ambiguity and enabling team members to comprehend not only what decisions are made but also why they are made.
Financially, sound decisions lead to optimized resource allocation, reduced risks and increased profitability, attracting investors and partners. By enhancing decision-making skills, entrepreneurs and leaders can unlock benefits that positively influence every facet of their business.
Actionable strategies for effective decision-making
1. Embrace the big picture
Effective decision-making for entrepreneurs and leaders starts with understanding the broader context. It’s easy to get lost in the details, so take a step back and consider the larger picture. Ask yourself: How does this decision align with the overall goals and values of my business? By grounding your choices in the organization’s mission and vision, you can ensure that your decisions are consistent and ultimately purpose-driven.
2. Gather diverse perspectives
Encourage diversity in your decision-making process. As an entrepreneur or leader, you have a team of individuals with various backgrounds, experiences and expertise. Their unique viewpoints can shed light on aspects you might have overlooked — enriching your understanding of the situation. Remember, the collective intelligence of a diverse team often leads to better decisions.
Data-driven decisions are powerful. In today’s digital age, data and technology provide insights that can inform your choices. Use analytics to track market trends, customer behaviors and industry benchmarks. By harnessing data, you can make informed decisions that are grounded in objective information.
4. Avoid analysis paralysis
While data is essential, it’s important to strike a balance between analysis and action. Set a reasonable time frame for gathering information, and once you have enough data to make an informed choice, move forward confidently. Trust your judgment and remember that not all variables can be predicted or controlled.
5. Cultivate resilience by overcoming fear of failure
Entrepreneurs and leaders understand that not every decision will lead to a favorable outcome. Instead of fearing failure, embrace it as a valuable learning experience. Analyze what went wrong, identify the root causes and determine how you can avoid similar pitfalls in the future. Failure cultivates resilience and sharpens your decision-making skills over time.
6. Practice decision-making consistency
Consistency in decision-making is key to building trust and credibility among your team. If your choices waver based on mood or circumstance, it can create confusion and erode confidence. Develop a decision-making framework that considers the same factors each time, ensuring fairness and reliability in your judgments. Here are two techniques you can use to help develop a solid framework.
The Eisenhower Matrix, devised by former President Dwight D. Eisenhower, plays a pivotal role in decision-making by providing a structured approach to prioritizing tasks. Decisions often involve evaluating multiple options and determining which actions to take. By categorizing tasks within the matrix based on 1) urgency and 2) importance, leaders can make informed decisions about where to invest their time and resources. In essence, the matrix enhances decision-making by offering a clear framework to manage choices effectively.
The 10-10-10 Rule, coined by Suzy Welch, offers entrepreneurs a unique perspective on decision-making. This asks: “What will be the consequence(s) of my action/decision in 10 minutes, 10 months and 10 years?” This approach encourages you to think beyond immediate gains and consider the broader implications of your choices. It prevents hasty decisions that might yield short-term benefits but lead to long-term setbacks.
While data-driven decisions are crucial, intuition also has a role to play for entrepreneurs and leaders. As you accumulate experience, your subconscious mind develops a sense of pattern recognition. This intuitive sense can guide you in situations where data is scarce or ambiguous. Nurture your intuition by reflecting on past decisions and their outcomes.
For entrepreneurs and leaders, decision-making is a blend of art and science that requires constant honing. It’s a skill that goes beyond algorithms and spreadsheets — it’s about understanding the human element, accepting risk and seeking wisdom from both data and intuition. By adopting a holistic perspective, leveraging diverse viewpoints and integrating data-driven insights, leaders can improve their decision-making skills. Remember, the journey towards mastering this skill is continuous, but the rewards it brings are immeasurable.
Opinions expressed by Entrepreneur contributors are their own.
No company can rely on a single person to make decisions. According to a study by McKinsey, managers at a typical Fortune 500 company waste more than 500,000 days a year on ineffective decision-making. The more diverse your team, the better their decisions, so it pays to empower all your team members to make decisions autonomously.
As the CEO of an 8-figure technology company responsible for hitting the KPIs of our publicly traded parent company, I see firsthand the benefits of getting this right. Our unique approach to leadership has led directly to 7-figure annual growth year over year, even during a market downturn.
From the start, my leadership philosophy is that no single person should be burdened with all the decision-making. This can create a bottleneck and limit what your team can accomplish. Instead, it’s vital to create frameworks for decision-making that empower each individual on the team to make consequential decisions while still being accountable to me as a leader.
If you want to increase the efficiency of your teams, read on for my five-step process to take you out of the day-to-day and accelerate your business growth.
The key to successful decision-making lies in trust. You need to empower your team members to make decisions while still giving them the guidance and authority they need to do so correctly.
This means that you have to be clear about expectations from the start by setting up an environment where everyone is aligned around a common goal and vision for the company’s growth and development.
One of our main strengths is that we are a small, flexible and agile organization. We have a startup culture where the structure needed to be established from the ground up, and establishing the foundational framework has helped to shape the organization. We don’t have too many layers of bureaucracy, so our team members are able to act on their decisions quickly and efficiently.
Build a system to your company’s method for making decisions, such as “anything under $500 to fix, decide for yourself” or other types of guidelines. This demonstrates that you trust their ability to make decisions and bolsters the team’s trust to carry out their roles and responsibilities.
Without some level of autonomy, decision-making can become bogged down and slow. And that’s the last thing you want regarding business growth.
Compartmentalizing responsibility
The great thing about creating frameworks for decision-making is that each team member has a defined role and responsibility. This makes it easier for them to make decisions without worrying about stepping on someone else’s toes.
For example, each member of our sales development team is expected to work on their own initiative to identify potential leads, develop relationships and close deals. This allows everyone on the team to focus on what they do best and act quickly without having to check with me for approval every time. Plus, it also creates a sense of ownership among team members. Everyone feels like they have a stake in the success of the company and are doing their part to contribute.
Establish a balanced combination of servant, situational and adaptive leadership to build your decision frameworks. The focus is on solving problems with innovation. For example, stay involved in the training process upfront for the team to activate around customer acquisition and sales, instead of taking a permanently directive “ivory tower” approach. Once they understand the structure and how you think, each member of the team can take their role and run with it. That way, you understand the intricacies of their day-to-day overall operations and understand every decision the team makes over the long term. This helps to bring everyone together and communicate clearly.
Of course, that’s not to say you should throw caution to the wind and let your team run wild without oversight.
On the contrary, setting boundaries and managing risk is essential when creating decision-making frameworks for your team. Outline a transparent chain of command so everyone has a sense of who is responsible for what and when. If something goes wrong, each team member knows who to turn to first and who will ultimately be held accountable.
It’s essential that your staff know when they can act independently and when they need to refer a decision up the chain. This gives them a sense of freedom while also providing guidance and structure in their decision-making process.
Setting boundaries for an autonomous team requires trust, effective communication and a commitment to a shared purpose. By providing guidance and structure while respecting their decision-making capabilities, you can create a team that excels while maintaining a healthy level of autonomy.
I provide a clear understanding of the team’s overall goals and objectives. When team members know what KPIs they are working towards, they can make decisions that align with these goals. I also give team members access to relevant information, data and context that can aid in their decision-making process. This enables them to make well-informed choices within the defined boundaries.
Building a culture of trust
The greatest asset of any company is its people; creating an environment of trust is essential for successful decision-making. It starts with communication — keeping your team informed about updates and changes.
Schedule regular daily, weekly or monthly check-ins with the team, formally and informally. This helps you keep abreast of any issues they might face and offer guidance when needed. Consider quarterly strategy meetings to evaluate the progress in relation to the KPIs and highlight any areas of improvement.
Finally, celebrate successes and recognize individual contributions. People need to feel appreciated for their efforts in order to stay motivated. A culture of trust and respect will also encourage open dialogue, feedback and collaboration, which is essential for innovative decision-making.
The key to successful decision-making is a framework that lets your team make powerful decisions while still being accountable for them. Empowering each individual on your team by giving them clear expectations and autonomy is essential in creating an environment of trust.
Ultimately, by creating transparent decision-making frameworks, you can foster an environment of collaboration and innovation that will drive your business growth and success for years to come.
By setting clear expectations, compartmentalizing responsibility, building a culture of trust and managing risk through clear boundaries, you’ll be able to ensure that each team member is making the right decisions, on the right subjects, at the right time, to help your business excel.
When my 5-year-old daughter and I got hit with a virus, I moved my clients and we kept her home from camp. With canceled appointments and a mini-me to entertain, I decided to turn our now-free afternoon into a “pretend” trip to the beach. I packed the essentials — towels, books, snacks and drinks for our excursion, which was really a trip to our backyard. My daughter packed books, markers, paper, detangler, brushes, hair clips, ponytail holders and whatever else she could fit into her backpack. Our “pretend” beach day quickly transitioned into a full-blown salon extravaganza.
Now, before I go any further, I have to say this kiddo has an uncanny knack for hair styling. Her colorful and innovative creations with accessories would make any fashionista proud. One time, she managed to arrange her hair clips in such a way that it looked like she was wearing a headband. Only upon closer inspection, could you see her clever assortment of tiny clips. Over the past year, doing her hair, and my own, has become one of her most cherished creative outlets.
So there we were, enjoying the fresh air, reading books and eating ice pops, when she wanted to play salon and style my hair. She used several hair ties to complete my look and took a picture of her masterpiece on my phone. I was in the middle of telling her how hard I could see she worked on my ponytail, and complimenting her photography skills, when out of nowhere, I heard snip.
My heart skipped a beat, and I slowly turned around to face the aftermath.
“Love, did you just cut mommy’s hair?
I saw my hair in her hand and watched it fall off the scissors as she said, “yes.”
I could have interrogated her, demanding an explanation for this unexpected haircut, but I thought about the prompts I’ve learned to use from the child psychologists I follow on Instagram. Instead of asking why she did what she did, I simply asked “What were you thinking when you cut mommy’s hair?” in a genuinely curious tone.
Without missing a beat she said, “I was thinking your hair would look better one inch shorter!” Talk about a phenomenal answer.
I had to hold back my laughter because while I appreciated her artistic flair and her opinions about my hair length, we needed to have a meaningful conversation about the incident and why we couldn’t repeat it. One day when she’s older, I’ll gladly share my own bang-cutting escapades from when I was her age, but I left out those details, so she doesn’t go after her baby sister’s curls anytime soon.
We packed up our things and went back into the house. As I reflected on the incident, this unexpected curveball got me thinking about the way we handle mistakes in our professional lives.
How often do we find ourselves exclaiming, “Why did you do that?” after someone has made a mistake? What if he swapped that with, “What were you thinking?”
No, this isn’t an invitation to engage in a berating monologue. It’s an invitation to reflect. Just as I’ve learned from the child psychologists I follow on Instagram (I’m looking at you Dr. Becky), the reflective sense of the question, “What were you thinking?” can provide valuable insights into someone’s intentions and decision-making processes.
In my role as a media trainer, I coach from this place often. When I review my clients’ media clips before our first session, I don’t focus on the “why” behind their choices and shame them when we meet. Instead, I urge them to share what they were thinking at the time of their interview, which allows me to understand what they were trying to achieve. This information helps me provide guidance and support, enabling them to make better choices in the future. It’s that simple shift from harsh interrogation to inquisitive that opens up a world of possibilities.
So, the next time someone in your world makes a mistake, resist the temptation to blurt out a frustrated “Why did you do that?” Instead, approach the situation with genuine curiosity and see what revelations unfold.
Every mishap holds the potential for growth and improvement. The “snips” and the unexpected turns are often invitations for us to grow. So the next time you’re in this situation, keep in mind that curiosity can pave the way to our next big breakthrough — and always remember, every “haircut” has a story to tell.
Opinions expressed by Entrepreneur contributors are their own.
When it comes to marketing any business, data never lies. However, it is easy to let our personal tastes and inner voices prevail, even if we do not have the data to back it up. The business owner’s opinions certainly have a place in devising their marketing plans, but they should never become an obstacle to success. And that is why I always use hard numbers to guide my marketing plans rather than gut feelings.
Opinions are great, but facts are better
Working with a variety of clients across the country, I see a variety of personality types, not only in the business owners themselves but in their businesses as well. I always want to respect my client’s input. After all, they know their business and clientele best. However, most of the entrepreneurs I encounter are looking for a noticeable improvement in their bottom line, and to make that happen, they must be willing to accept that they do not always know best when it comes to marketing.
Often, the results the business owner perceives are not the whole picture. For example, they may believe that they are getting more “duds” than quality leads when in reality, the number of quality leads they are getting has increased month to month. This skewed perception may occur because negative experiences tend to leave a more lasting impression than positive ones do. The business owner may be overhearing snippets of conversations that lead them to believe that incoming leads are lower quality than what they would like, or their front-office staff may be talking more about the so-called “bad” leads than the good ones.
It could also be that quality leads are coming in but are not converting because the staff has not been trained well on how to handle them correctly. Whatever the case may be, many business owners will make a blanket statement about the quality of leads they are getting based on incomplete information and then jump to the conclusion that the marketing is not working.
Business owners like to have a say in how their marketing looks and feels, which is certainly acceptable and very much encouraged, especially at the beginning when I am getting to know them. However, there comes a point when the marketing professional needs to take the reins, and some business owners have a hard time relinquishing control. They would rather rely on their own feelings and tastes to determine whether a marketing campaign will work or not.
They also fail to consider that their target audience may not think or react the same way they do — and that just because they find something appealing does not mean it will work from a marketing perspective. I see this often with highly technical services. The business owner, who is naturally an expert, wants to include a lot of industry-specific terminology in the marketing because that is what appeals to them as a professional. They do not realize that technical language will not resonate with their target audience, which consists of non-professionals who know little to nothing about their field.
Why data matters
Marketing is a science as much as an art. Especially today, with digital technology, there are countless ways to test ideas and track results. With modern technology, there really is no reason not to make marketing decisions based on data. In fact, I always test my ideas before implementing them on a large scale, because there have been times when I thought an image or an idea would be a hit, and it turned out to be a complete miss. Testing saves time and money and leads to more successful marketing strategies and happier clients.
I also use best practices and tactics I know that work from experience and previous testing rather than going with my gut or basing decisions on what I like or dislike because I am not the target audience, so my personal opinions are mostly irrelevant. I gather as much data as possible before, during and after a campaign and use it to make future decisions for my clients. And while my clients’ feelings are always important to me, I find that numbers and revenue make a more compelling argument when deciding whether to discontinue a marketing strategy.
A sole proprietor may not have the means to establish an internal marketing department for their business, let alone the time and energy to conduct testing for every marketing decision they make. Business owners are spread especially thin without also having to take on the added burden of creating, implementing and tracking their marketing campaigns. That is why outsourcing all marketing to a professional who not only knows how to do those things but also understands how to interpret the data on the back end is always a good strategy no matter what stage of growth your business is in. Unless you have a marketing degree, it is unlikely that your expertise and experience extends to understanding marketing metrics and testing. Relying on a reputable marketing professional saves valuable time, expense and a lot of stress.
As a marketing professional, I appreciate my clients wanting to be actively involved in their marketing strategies, but I am also not afraid to hit them with some hard data when their personal opinions start to impede their success. The numbers will always tell the unvarnished truth, giving me and my client the ability to make better, more informed marketing decisions. The best and most rewarding scenario is when the client and the marketing agency understand each other’s roles and work together to make choices based on facts rather than feelings.
Opinions expressed by Entrepreneur contributors are their own.
CEOs are in the business of making decisions. Leaders make dozens of decisions every day, many of which could have major and lasting impacts on the success of their companies and teams. Whether it’s deciding to make a change in a key position, to take a chance opening in a new market or to test out a different product line, great CEOs know that decision-making often involves a nuanced and thoughtful approach.
Most leaders don’t take the decision-making process lightly. And sometimes the fear of making the wrong decision can lead to leaders making no decision at all. When looking at a wide variety of possible solutions, leaders can feel stuck. That’s when a sense of decision fatigue can set in.
Decision fatigue is ambivalence at its core, and while it may not be preventable, the good news is there are solutions to overcome it. Below are tried-and-true methods — from some of the best leaders I’ve met in my career — to combat decision fatigue.
Decision fatigue occurs when leaders don’t use strategy as a guide. Before leaders can make any decision, it’s important to first have a strong foundation by defining the company’s mission, vision, values, purpose and operating principles. Then, when presented with several options, it becomes crystal clear which choice best aligns with the company’s mission.
Successful leaders don’t just create the company’s principles and values and then leave them on the wall; they use them to evaluate each decision they make. As they make a decision, they weigh whether the outcome supports the company’s mission and honors its principles and values. Pinpointing these principles also creates clarity among employees. When employees are able to apply the company’s values to their own decision-making, it ensures alignment throughout the organization.
2. Identify your biases by connecting with peers
It can be difficult to identify blind spots and self-monitor how biases are playing a role in the decision-making process. Having a trusted group of smart, supportive individuals who can offer diverse perspectives allows leaders to challenge biases and gain new insights. Learning to ask for and accept feedback is one of the biggest hurdles — and most important aspects — of being a leader.
One similarity between all the great CEOs I’ve known is that they want to get better as leaders. Instead of immediately becoming defensive, the best CEOs lean into diverse points of view. Even if they disagree with someone’s assessment, they ask questions, and they explore it with curiosity and humility. They leave their preconceived notions at the door and approach these conversations with an open mind. These leaders work hard to avoid confirmation bias or presenting information in a way that is slanted toward their desired outcome. When CEOs have the opportunity to honestly discuss issues with peers who have faced the same challenges, their peers help them to frame what the true issue is.
3. Create space to make a decision
Effective CEOs know it’s critical to delegate decisions to their team and empower them to make decisions aligned with their strategy. But there are some decisions that only the CEO can make. And when that’s the case, it’s okay to take time and space to make a decision. I used to think it was a weakness to say, “I need more time,” but now I’ve learned it’s a strength. Taking the time to carefully consider the solution with a fresh perspective always ends up leading to a better outcome.
4. Understand no two decisions are the same
Part of what makes the business environment so challenging and exciting is that no two situations are ever exactly the same. Great CEOs evaluate each situation against the company’s mission based on the present factors rather than just relying on what did or didn’t work last time.
The stakes are high. In this current environment of inflation and economic uncertainty, set against a strong labor market, it has never been more difficult, nor more important, to be skilled at decision-making. Leaders may be afraid to make the wrong decision. But decision-making is not always black or white — there can be an infinite number of right decisions. Instead of thinking there’s a right or wrong decision, effective leaders consider that there may just be a better or best solution.
So much of the success of any decision connects to applying rigor and diligence upfront and then fully believing in the decision and putting effort toward ensuring it’s successful. It can be tempting to abandon a decision the moment it doesn’t go quite as planned. But successful leaders are those who can push through the noise, fear and decision fatigue to rally the team around the mission and move the business forward.
Opinions expressed by Entrepreneur contributors are their own.
The digital age has ushered in a new era where data reigns supreme, providing businesses with valuable insights into customer behavior, market trends and overall business performance. In order to thrive in today’s highly competitive landscape, entrepreneurs must not only recognize the significance of data analytics but also leverage its power to drive their organizations forward.
At its core, data analytics involves the systematic examination of raw data with the purpose of drawing meaningful conclusions. By embracing this approach, businesses gain the ability to understand their operations at a granular level, make data-driven decisions, accurately predict future trends and ultimately foster growth and profitability. Let us delve deeper into the ways in which data analytics can revolutionize your business.
One of the greatest benefits of data analytics lies in its capacity to help businesses better comprehend their customers. By analyzing various data points, such as purchasing habits, social media interactions and website visits, organizations can create comprehensive profiles that encompass customers’ preferences and behaviors. Armed with this knowledge, businesses can tailor their product offerings, personalize marketing messages and ultimately enhance the overall customer experience. Consequently, this leads to increased customer satisfaction, loyalty and a competitive edge in the market.
Streamlining operations:
Data analytics serves as a powerful tool for uncovering inefficiencies within a business’s operations. By examining production data, for example, businesses can identify bottlenecks within their manufacturing processes. Similarly, studying sales data may shed light on underperforming products or regions. Armed with these insights, businesses can take the necessary steps to streamline their operations, reducing waste and enhancing overall efficiency. Ultimately, this results in cost savings and improved productivity, thereby giving businesses a competitive advantage.
Mitigating risks:
Inherent to any business endeavor is an element of risk. However, data analytics empowers businesses to anticipate and mitigate potential risks effectively. By closely analyzing data, businesses can identify patterns and trends that may indicate forthcoming issues. This allows organizations to take proactive measures, ranging from real-time detection of fraudulent transactions to predicting future market volatility. By staying one step ahead, businesses can better protect their interests, reduce financial losses and ensure long-term stability.
Guiding strategic decision-making:
Data analytics eliminates much of the guesswork associated with decision-making processes. By providing factual insights, it serves as a reliable guide when it comes to making strategic choices. Whether it involves entering new markets, launching innovative products or investing in cutting-edge technology, businesses can rely on data-driven decision-making to reduce uncertainty and increase the likelihood of success. Armed with accurate information, entrepreneurs can make informed choices that align with their long-term objectives.
How can you effectively harness the power of data analytics within your business?
Embrace a data-driven culture:
To embark on a successful data analytics journey, it is crucial to foster a data-driven culture within your organization. This entails training employees to understand and utilize data in their day-to-day work, encouraging them to base their decisions on concrete data rather than relying solely on intuition.
Invest in the right tools:
The market offers a wide array of data analytics tools, catering to various business sizes, industries and specific needs. From robust business intelligence platforms, such as Tableau and Power BI, to advanced machine learning tools, it is essential to carefully select the tools that align with your organization’s unique requirements.
Hire or outsource expertise:
Interpreting data and extracting meaningful insights necessitates specific skills. If your organization lacks in-house expertise, consider hiring data analysts or data scientists to fulfill these roles. Alternatively, you may choose to outsource your data analytics needs to specialized firms that possess the necessary knowledge and experience.
Prioritize data privacy:
In an era marked by frequent data breaches and privacy scandals, handling data responsibly is of paramount importance. It is crucial for businesses to ensure that their data practices comply with relevant regulations and industry standards. This includes implementing robust data privacy measures to protect sensitive information and maintaining transparency in how customer data is collected, stored and used. By prioritizing data privacy, businesses can build trust with their customers and safeguard their reputations.
In conclusion, data analytics has the potential to be a game-changer for businesses in today’s information-driven landscape. By harnessing the power of data, organizations can gain valuable insights into customer behavior, optimize their operations, mitigate risks and make informed strategic decisions. However, reaping the benefits of data analytics requires a deliberate and strategic approach.
It begins with embracing a data-driven culture within the organization, where employees are empowered to utilize data in their decision-making processes. Investing in the right data analytics tools is crucial, as it enables businesses to effectively collect, analyze and interpret data. Depending on the organization’s resources and expertise, hiring data analysts or outsourcing data analytics services may be necessary to extract meaningful insights from the data.
Furthermore, businesses must prioritize data privacy and ensure compliance with relevant regulations. Protecting customer data and maintaining their trust is essential in the age of increasing privacy concerns. By adopting these practices, businesses can unlock the full potential of data analytics and drive growth, efficiency and innovation.
In today’s digital landscape, data is no longer just a byproduct of business operations. It has evolved into a valuable asset that holds the key to unlocking opportunities and staying ahead of the competition. Embracing data analytics is no longer an option but a necessity for businesses that aim to thrive in this dynamic and data-centric environment.
So, seize the power of data analytics, and embark on a journey to transform your business. Embrace the insights that data can offer, streamline operations, enhance customer experiences, mitigate risks, and make informed decisions that propel your organization toward success. Remember, in the age of data, the possibilities are endless, and the businesses that effectively leverage data analytics will gain a significant competitive advantage in the marketplace.
Opinions expressed by Entrepreneur contributors are their own.
Attention spans aren’t what they used to be, ranging from 20 minutes to just two seconds — which was just enough time to read that sentence. Throw in the paradox of choice, and it’s no wonder there’s so much indecision going on. One of my favorite pieces of research on this topic is the Jam Experiment. Shoppers were presented with a display of 24 different types of jams, which seemed like a great way to cater to everyone’s taste buds. But when presented with a display of only six options, shoppers were 10 times more likely to buy jam. The abundance of options attracted attention but stifled decision-making.
That’s not to say businesses should eliminate choice. That, too, can pose a problem, as customers often research before making decisions. They know other options exist, so quickly removing so many options can leave them questioning your recommendations. Generally speaking, the businesses that win are those with teams playing more advisory roles in the relationship — the relationship isn’t about pushing a sale but enabling decision-making.
As a customer, I certainly prefer to engage in conversations about my challenges and goals but also want someone to advise me, not sell me on some product or service. Whether B2B or B2C, customers want businesses to inform them on which direction to consider and how to get there. This can only happen once you’ve built trust based on humility, empathy and kindness. It’s all about becoming a clear expert at what you do.
Of course, there’s a learning curve. You must first become a student of your own industry — or at least advise from an informed position. Allowing yourself to be a sponge as you’re exposed to everything associated with the industry will better equip you to share your educated point of view. Clients are looking for advisors, and the following can help you help them make better decisions:
Most people have more expertise than they give themselves credit for, no matter their role. Let’s say you’re a project manager. That role has exposed you to different projects for different departments and stakeholders for various companies or industries. That experience provides a unique perspective for clients.
If you need reassurance, write down what you’ve worked on over the years (tasks, projects, clients and so on). Think about the hours you’ve spent working on proposals, talking with clients, planning executions and managing projects. Seeing what you know will increase your confidence to advise and believe in what you have to offer. And that confidence will improve your job performance overall. In fact, 98% of workers surveyed by Indeed said they performed better when they felt confident. While clients might have the last say, that doesn’t take away from your expertise. Start recognizing — and being proud of — what you bring to the table.
2. Become a genuine, active listener
If you want to take on a more advisory role, you need to understand the client’s situation before making recommendations. That requires active listening. Consider the example of when I started running and went to the store to get a pair of running shoes. The choices felt endless. The sales associate could read the uncertainty on my face, so he approached me with one question: “New to running?” I nodded, and he posed a series of additional questions — some of which would have never crossed my mind. He even asked me to jog to see how my foot struck the ground. All that information helped him narrow down my selection to three running shoes.
What he did applies to interactions you might have with a client. Not only are you listening to the client’s answers, but you’re also watching how they respond to what you’re asking. Research has shown that communication is 55% nonverbal, 38% vocal and only 7% words. So, ask questions, look at the client’s reactions, listen to their answers and follow up with more questions. Then, when you make a recommendation, the client knows it’s based on a true understanding of their situation.
Making recommendations to clients is one thing. Telling them what they should do is another, as it can force them into a decision. This isn’t to say your background doesn’t bring an understanding of what’ll best suit their needs. But, as an advisor, you want to keep clients in the driver’s seat. So, offer multiple options to choose from. You can do this in the form of a question, such as “What about X?” or an affirmative, such as “Perhaps we could try Y.”
If they ask for your opinion, don’t shy away from giving it. That right there shows how well you’ve established yourself as an advisor. Tell them what you would do if you were in their position. If necessary, steer them in the best direction, proposing it as a suggestion and offering your input on the value of that option. Just make sure the final decision is in their hands.
While getting a contract signed might be the final step in the process for you, it’s the first step for your client. I’m a big fan of high-level timelines, as it puts some shape and objectivity around critical steps. But don’t make the mistake of putting a signed contract at the end of the timeline. Share some key steps that will happen after project approval, so the client is aware that those steps can’t occur until an agreement or proposal is approved.
A timeline such as this takes the pressure off you to “close the deal” and puts more of the onus on the client to get approval, so you can get on with the initiative, and the client can start seeing value.
Taking on an advisory role puts the client front of mind, where they should be. It comes down to remembering your role in the relationship. Use your background to provide options, letting your recommendations guide the direction to making better — and faster — decisions.
