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.
Disclaimer(s): Learn more about Capital One’s response to COVID-19 and resources available to customers. For information about COVID-19, head over to the Centers for Disease Control and Prevention (CDC).
These materials are for informational purposes only. These materials do not represent any opinion, guidance or recommendation, whether formal or informal, of Capital One, National Association, or any of its officers, directors, employees, advisors, attorneys, consultants, affiliates or subsidiaries (collectively, “Capital One”). Without limiting the generality of the foregoing, these materials do not represent legal advice or guidance by or from Capital One. In no event may the recipient of these materials rely on these materials for any purpose whatsoever. Nothing contained in these materials shall give rise to, or be construed to give rise to, any obligations or liability whatsoever on the part of Capital One. Nothing contained in these materials shall alter or modify, or be deemed to alter or modify, applicable law (including, but not limited to, the limitations under applicable law of Capital One’s obligations and/or liability in applicable matters). The recipient of these materials should consult the recipient’s own counsel to understand the recipient’s obligations and liability in applicable matters.
Capital One does not provide, endorse, or guarantee any third-party product, service, information or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners.