Professional Intuition In Decision-making
According To The Spirit Of Our Times
Part I., Chapter 2
Intuition From Economics Point Of View
Daniel Kahneman, the israeli american Nobel laureate economist is mostly famous of analyzing the links between life satisfaction and economics. In one of his famous papers (i) he writes about what is worthwhile in our lives. In his opinion, intuition is a simple tool for efficient decision-making and a long-term measure of life satisfaction. His thoughts can be summarized as follows:
From an economist's perspective, life is like capital that becomes available to us at the beginning of our lives in the form of time. We can't spend it or add to it. Time can be exchanged for life and life experiences. As our remaining years continue to decline, our experience continues to grow. As we get closer to the end of our lives, each and every hour will have a greater and greater value to us compared to the previous. At the same time, we can only gain less and less experience compared to the total experience we have had so far. In the terms of economics, we can say, that pay more and get less.
Therefore, it is worthwhile to be effective. We do not have much time, but we use what we have effectively. To do this, it is worthwhile first to look into what is really important for us in life and then to direct the focus of our decisions towards it.
Whenever this article writer asks business executives about why and for what purpose they work for, after the fifth or sixth answer after the “...and why do you do that?” question the picture gets clearer, thoughts get distilled down. In the end, in each case, we find that we are all, in fact, striving for long-term joyful contentment and responsible happiness, which we wish not only for ourselves but also for those around us. A previous articles of this well-meaning article writer about happy mindset(ii) and the view of responsible happiness (iii) may serve as additional source of thought in this topic.
So how can we become more effective in achieving this goal? With more efficient, faster decisions! However, this requires the development of both our awareness intelligence (iv) and happy mindset. The spontaneous intuition that develops within our awareness intelligence could be a good tool in this regard if we were able to use it according to our real capacities.
According to Kahneman, our desire for spontaneous intuition, our openness, is also demonstrated by the fact that we memorize stories, which are connected by both logic and association.
However, most of our present society usually suppressed intuition or did not develop it, so if we were to listen to our spontaneous insights at the moment, we would not always make the right decisions. In contrast, today, though it was not always like this, we tend to rely on a method that is much slower than intuitive decision-making and consumes a lot more of brain energy, that is intellectual thinking and logic.
On employee or management levels, we generally use this to justify the appropriateness of our decisions - to protect our noble back-parts -.
Of course, top leaders do not need to justify their decisions, so the use of intuition has become more widespread in their circles. Richard Branson, Bill Gates, the late Steve Jobs and many more are all promoters of intuitive decision-making. In addition, according to Forbes survey (v), 62 percent of top leaders listen to their intuition.
Since the recognition of our ever-present sense of intuition is not easy for us, first and foremost ′mechanical algorithms′ must be used instead of it.
With a great integrative thought, Kahneman calls for a bridge-like solution he calls the professional intuition. The essence of this is that on the one hand we accumulate a lot of professional logical knowledge and on the other hand we allow your intuition to choose the most appropriate solution of the moment from this collected practical toolbox. This suggests to use both our heart and our brain at the same time. As practice makes perfect, the reliable development and use of professional intuition requires the ability of continuous practice and to receive a proper feedback – says Kahneman -.
Therefore, intuition in this context can be seen as a as a master formula, that helps professional decision-making.
Given that even one of the best thinkers of our time, Kahneman suggests this, shall we, in the light of this, be curious whether there exists a real physical explanation and factual evidence of intuition? We will look into this in the next article.
Written by: Seal | Szilard Fodor (phd hc) and the colleagues of Happiness & Well-being Ltd.
Read the rest of the articles on ′Professional Intuition In Decision-making′, starting from HERE.