Knowledge sharing is essential to organizational success, since it facilitates decision-making capabilities. To aid humane societies, our knowledge sharing initiative builds upon Nonprofit & Master of Education perspectives, utilizing Instructional Design (ID) and Human Performance Technology (HPT) methodologies.
A humane society expanded to a remodeled building that became a new 10,000 sq. ft. clinic. The Board of Directors voted to name the clinic "The Pet Health Center". A street sign was purchased for approximately $8,000. The following year, a new Executive Director was hired and decided to change the name of the clinic to "Veterinary Clinic". The new Executive Director provided no supporting data that the name change would be financially beneficial. He offered only anecdotal statements that the new name was better. He "felt" the new name was better. His decision was a "gut" decision. Surprisingly, he was able to persuade the Board of Directors to change their minds from the previous year and spend another $8,000 on another sign. The following year (2017), the clinic had a deficit of $565,106! Did the sum of the Executive Director's "GUT" decisions contribute to this result?
What is a gut decision? A gut decision stems from thinking fast, system 1 thinking, a concept proposed by Nobel Laureate Daniel Kahneman.
People who make gut decisions tend to seek guidance from what they feel. In contrast, those who rely heavily on their cognitive assessment of situations look for validation for what they think. Most people who rely on their gut feelings do not deliberately think about how it works, but they trust the process. Source: Businessinsider.com Jul 27, 2018.
How a person makes decisions are usually revealed daily. In the above example, the Executive Director revealed his gut (thinking fast, system 1 thinking) decision. Had the Broad of Directors been exposed to organizational performance methodologies, they would have asked for supporting data on how the name change would favorably impact revenue. After the name change, the Executive Director’s estimated revenue could have been compared to actual results. If a large discrepancy was discovered, it may signal the Executive Director’s deficiency in predictive estimates.
Content shared may help humane societies make better decisions. Topics: How self-interest drives behavior, Thinking Fast and Slow by Daniel Kahneman (System 1 & System 2 Thinking), Bloom's Taxonomy Higher Order Thinking Skills (H.O.T.S) & Lower Order Thinking Skills (L.O.T.S.), Cognitive Load Theory by John Sweller, Instructional Design, Human Performance Technology, Hiring With Your Head by Lou Adler, Humane Society Financial Health Grading Rubric, Financial Health Report Card, Grade Graphs, and Humane Society Maturity Model.
Leadership At The Top