Sample frameDay 062·Decisions · Judgement

Good morning. The call you are proudest of may simply have got lucky.

Decisions.

Decision Journals

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The question

Take the decision you rate most highly from the past year and ask honestly whether you rate it because the reasoning was sound or because the number came in. If the two have fused, your memory is not the problem — you kept the result and threw the reasoning away, and only one of those was ever yours.

The idea

In 1988 the psychologists Jonathan Baron and John Hershey published 'Outcome bias in decision evaluation' in the Journal of Personality and Social Psychology. Readers were given a medical decision to assess — the same odds, the same information available at the time — and then told how it turned out. Those who learned the patient had died rated the decision itself as worse than those told the patient had recovered. Nothing about the reasoning had changed; only the result had. Michael Mauboussin, the investment strategist and adjunct professor at Columbia Business School, prescribed the antidote in Think Twice (2009): a decision journal, written before the outcome is known, recording what you chose, what you expected, and why. Judging backwards from results — Annie Duke's Thinking in Bets (2018) calls it resulting — teaches you almost nothing, because in any business with luck in it, sound decisions sometimes lose and careless ones sometimes pay. Most people keep a record of what happened. Almost nobody keeps a record of what they thought would happen.

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