Here’s what Notary2Pro CEO Michael Ray has to say on the importance of confidence in decision making:
I have been a sucker for the 2×2 matrix since the first time I read Stephen Covey’s classic “Habits of Highly Effective People.”
No doubt you have seen this nifty analytical tool a dozen times that allows us to categorize concepts into four groups in two dimensions. Whether it is the Eisenhower Matrix, the BCG Matrix, Ansoff’s boxes, or a classic SWOT, thinking about things in this way can open the mind and create new ways of thinking about common problems.
Apparently, there is a new 2X2 Matrix in town, and I cannot wait to learn more. In “The Confidence Map,” Peter Atwater delves into the profound influence of confidence on our decision-making. My copy is on the way, but according to Amazon, Dr. Atwater’s The Confidence Map illustrates:
· How psychological distance consistently affects the choices we make
· Why “Me-Here-Now” decision-making is such a powerful force
· What happens at confidence peaks that leads to our downfall
· The five ways we respond to extreme vulnerability
· When consumers’ feelings of certainty and control – not price – drive demand
Of course, there is nothing new in the idea that making decisions under stress, uncertainty, or out of fear can have a profound impact on the outcomes of those decisions. We know that fear-based decisions can lead to:
· Narrowing of Attention: Under stress or fear, the brain tends to focus on immediate threats and often overlooks peripheral information. This means missed opportunities and limited decisions.
· Extreme short-term Focus: Decisions made out of fear often prioritize immediate relief over long-term benefit. In short, fear-based decisions address symptoms, not root causes, and trade progress for relief.
· Impaired Cognitive Functioning: Chronic stress can impair the prefrontal cortex, a region of the brain responsible for executive functions like decision-making, impulse control, and emotional regulation. Put simply, stress makes you stupid and impulsive.
· Confirmation Bias: Under stress, we are more likely to seek out information that confirms what we already believe and limits our ability to absorb new information and to think critically or objectively.
To summarize, Your Mindset Affects Outcomes.
One of the most powerful advocates of this concept is Dr. Carol Dweck of Stanford University. Dr. Dweck identified two distinct mindsets: fixed and growth. People with a fixed mindset believe that their abilities are static and cannot change. In contrast, those with a growth mindset believe that their abilities can develop over time through effort, strategies, and help from others.
This Growth Mindset and a positive outlook leads to increased flexibility and adaptability, the ability to seize opportunities and not wallow in uncertainty. It helps develop resilience and the ability to overcome setbacks and push forward to the goal.
Whether you call it a Growth Mindset or something else, this positive outlook enhanced our problem-solving abilities, and it leads to more creative and expansive thinking. You can focus not on seeing obstacles but rather on solutions and alternatives.
And, not entirely surprisingly, this mindset leads to better physical health. The reduced stress reduces the risk for cardiovascular diseases, strengthens the immune system, and likely longer life. Sounds good to me.
I don’t know about you but this is much more motivating!
Mindset is far more than an individual sport.
We know that there is an Organizational Mindset and Culture that manifests these same factors on a collective level. Organizations with a fixed mindset are resistant to change, avoid taking necessary risks due to fear of failure, and absolutely do not prioritize employee development. In contrast, a growth-minded organization is more adaptable, values learning, and sees challenges as opportunities. Which would you rather be part of?
Leaders play a decisive role and well-documented role in setting the tone for the mindset of an organization. Without question, your approach as a leader to failures, feedback, and challenges can shape the mindset of the teams.
Exactly like an individual’s impaired decision-making under uncertainty, stress, and fear, the collective mindset of fear stifles innovation and adaptability and reduces learning and growth. A positive, growth organizational mindset does very much the opposite and what is more, leads to greater employee well-being and performance. For those of us involved in the Global Workforce, this translates into great engagement, lower turnover, and deeper commitment. All the good stuff.
This is where Dr. Atwater’s new work comes into the picture. He’s brought some new concepts and analytical tools to us to show us where we are in this landscape and how we can use that understanding to make better decisions. I am excited to get started. If you’ve read it or intend to, drop me a note!