Decision-making in Times of Extreme Uncertainty
Perspectives and takeaways from a conversation with renowned economist Mohamed El-Erian
The business landscape has become much more challenging. Customer and employee needs are changing rapidly. Companies are adjusting their strategies and adapting their business models. And decision-making is becoming much harder.
In this video, economist Dr. Mohamed El-Erian talks to Capital One’s Dave Kucera about the impact of decision-making under extreme uncertainty.
When adjusting to a different environment, these types of mistakes can be costly.
Decision-making under extreme uncertainty becomes harder, and the chances of making a mistake are higher.
Operating outside of our comfort zone is when we tend to make mistakes. The key is to become aware of our blind spots, avoid reframing—where you hear one thing and interpret something else—and break away from old ways of thinking.
“When adjusting to a different environment, these types of mistakes can be costly,” El-Erian says.
There are several ways to combat common behavioral mistakes.
1. Surround yourself with diverse perspectives.
Diverse perspectives come from diverse people with diverse backgrounds and ways of thinking.
2. Ask questions.
Bring in others and ask them, “What do you see that I don’t see?”
3. Increase your competitive analysis.
Gain a better understanding of the external and industry landscape by examining your industry peers.
4. Encourage honest internal conversations.
Create safe spaces for your employees to share feedback, and then use that feedback to take action.
More videos in this series
El-Erian discusses the global trends impacting business resilience
Dr. Mohamed El-Erian is a former chief executive officer, investment analyst, investor and market commentator. He was inducted as President of Queens College at the University of Cambridge in September 2020.
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