{"id":53782,"date":"2021-12-20T14:07:10","date_gmt":"2021-12-20T21:07:10","guid":{"rendered":"https:\/\/gmatclub.com\/blog\/2021\/12\/emotion-has-a-huge-effect-on-decisions\/"},"modified":"2021-12-20T14:07:10","modified_gmt":"2021-12-20T21:07:10","slug":"emotion-has-a-huge-effect-on-decisions","status":"publish","type":"post","link":"https:\/\/gmatclub.com\/blog\/emotion-has-a-huge-effect-on-decisions\/","title":{"rendered":"Emotion Has a Huge Effect on Decisions"},"content":{"rendered":"

Nearly 95% of our decisions in life are rooted in emotion \u2014not logic. If that figure triggered a reaction of stunned disbelief, we’ll let a rockstar Stanford GSB marketing professor\/neuroscientist explain.<\/span><\/p>\n

\"\"<\/p>\n

\u201cFRESH IDEAS FROM THE BLACKLIGHT\u201d<\/strong><\/h3>\n
SBC\u2019s Weekly Newsletter for Professionals<\/h5>\n

\u201cThe rational brain accounts for only about 5% to 10% of human decisions by all estimates,\u201d says the Sanwa Bank Professor of Marketing Baba Shiv<\/a>. \u201cI\u2019m not saying you can ignore the rational side, but first and foremost, you need to play into what the emotional brain is looking for.\u201d<\/span><\/p>\n

Shiv teaches a wildly popular GSB course called the\u00a0<\/span>Frinky Science of the Human Mind<\/span><\/em><\/a>. Frinky, by the way, sits at the nexus of funky and freaky\u2014a portmanteau coined by Shiv and his son. Here are some fascinating conclusions from his research on the role of emotion in communication, negotiation, and decision-making.<\/span><\/p>\n

The \u201cIKEA Effect\u201d<\/h3>\n

B-school researchers dubbed the cognitive bias where people favor things they create or assemble themselves as the <\/span>IKEA effect<\/span><\/a>. Shiv says we can influence others to buy into our ideas by tapping into this subconscious tendency. Because whose opinion do we usually trust the most? Our own, of course.<\/span><\/p>\n

\"emotion\"<\/p>\n

\u201cWhenever the brain perceives that it is making an investment in something\u2014it could be mental, it could be physical, it could be monetary\u2014the brain gets invested in it,\u201d Shiv explains.<\/span><\/p>\n

\n

\u201cThere\u2019s a famous saying here in Silicon Valley that if you\u2019re a startup founder going to an investor for money, you\u2019re going to get advice. <\/span><\/p>\n

You go for advice, you\u2019re going to get money.\u201d<\/span><\/p>\n<\/blockquote>\n

Let your counterpart have ample talk time to share their opinions and suggestions. Inviting the other person into the creative process generates buy-in. Suddenly, Shiv adds, your idea becomes their baby as well.<\/span><\/p>\n

He also suggests presenting a rough prototype\u2014not a polished masterpiece\u2014when trying to get stakeholders on board with your plan. We\u2019re talking back of the napkin vs. a 30-slide deck. If your goal is to persuade someone, they\u2019ll be swayed by the imperfection because it offers room for them to contribute.<\/span><\/p>\n

\u201cWhen you present a polished prototype, others will only find flaws,\u201d Shiv warns. \u201cWhen you present a rough prototype, others will see potential.\u201d<\/span><\/p>\n

Time of Day Matters<\/h3>\n

During his conversation with Matt Abrahams of Stanford\u2019s\u00a0<\/span>Think Fast, Talk Smart<\/span><\/em><\/a>\u00a0podcast, Shiv explains why we should schedule important meetings in the morning. After a good night\u2019s sleep\u2014another of Shiv\u2019s must-do\u2019s\u2014serotonin levels are at their peak. That\u2019s when our minds are naturally more open to new ideas.<\/span><\/p>\n

\"emotion\"<\/p>\n

As the day goes on, serotonin levels drop, and we enter into a more risk-averse mindset. Since we can\u2019t call it a day at noon, we need to use specific strategies to counteract these biological factors and play into the emotional brain.<\/span><\/p>\n

To be a good communicator, your brain needs to be resilient to stress, says Shiv. \u201cThe way to switch the brain in to a more open, risk-tolerant mindset is to first and foremost, bring in a state of comfort to the brain,\u201d he adds. \u201cSo, how do you do that? You weave in the familiar.\u201d<\/span><\/p>\n

\u201cIt could be trust. Tried and trusted. That brings a lot of comfort to the brain. It could be validation. Testimonials. \u2018I\u2019m not the only one saying this. There are other people saying this\u2019,\u201d he notes. \u201cAnd, of course,\u00a0<\/span>laughter<\/span><\/a>\u00a0is one of the fastest ways to alleviate stress and get the person\u2019s brain into a more risk-tolerant type of mindset.\u201d<\/span><\/p>\n

\"\"<\/p>\n

Emotion and Decision-Making<\/h3>\n

Finally, Shiv has sage advice for anyone stressed out over whether a personal or professional decision they make is the right one. <\/span><\/p>\n

\n

\u201cIn the real world, there is no such thing as making the right decision. You make the decision and then make the decision right.\u201d<\/span><\/p>\n<\/blockquote>\n

That means you need to tap into those feelings of conviction and confidence. \u201cConstruct a narrative that showcases total success, that\u2019ll allow you to be confident,\u201d Shiv advises.\u00a0<\/span><\/p>\n

But the rational brain does have a role to play here, and that’s why he often recommends doing a <\/span>pre-mortem<\/span><\/a>. By looking ahead to anticipate any roadblocks that might crop up, you can address and prevent problems before they happen.\u00a0<\/span><\/p>\n

“So go ahead, make the decision, and invoke all these positive emotions,” Shiv says. “In order to get the best out of life, we have to expect the best out of life.”<\/span><\/p>\n

Huzzah! You made it to the end of the post!<\/em><\/h4>\n

This tip sheet on the role of emotion in our lives appeared initially<\/em>\u00a0on\u00a0the Blacklight<\/a>, our weekly newsletter for professionals. At\u00a0<\/em>the Blacklight, we\u00a0aim to illuminate<\/a>\u00a0with every dispatch that lands in your inbox.\u00a0<\/em>If you\u2019re thirsty for guidance to help you slay it at work or as a student and move your goalposts closer,\u00a0sign up<\/a>\u00a0today!<\/em><\/p>\n

<\/a><\/a><\/a><\/a><\/p>\n

The post Emotion Has a Huge Effect on Decisions<\/a> appeared first on Stacy Blackman Consulting - MBA Admissions Consulting<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nearly 95% of our decisions in life are rooted in emotion \u2014not logic. If that figure triggered a reaction of stunned disbelief, we’ll let a rockstar Stanford GSB marketing professor\/neuroscientist…<\/p>\n","protected":false},"author":122,"featured_media":0,"comment_status":"open","ping_status":"1","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,749,775,243],"tags":[],"class_list":["post-53782","post","type-post","status-publish","format-standard","hentry","category-mba","category-stacy-blackman","category-admission-consultants","category-blog","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n