Research tells us that half of all business decisions are wrong. Therefore, good judgment goes beyond cognitive benchmarks — it should be defined as willingness to backtrack and fix problems instead of doubling down and repeating them. Judgment is a market innovation because it measures both cognitive ability and the personality characteristics that drive decision-making.
Other cognitive tests overlook the reality that most of our decisions tend to be rapid, biased, and rationalised after the fact. Knowledge of the unconscious biases that affect our decisions and post-decision reactions can improve future judgment, the integrity of future decisions and our reputations.
Instead of trying to get it right every time, decision-makers should focus on honing their ability to fix bad decisions and learning from mistakes. Judgment helps leaders understand their personal reasoning style from an outside view, which requires accurate insight.
20 minutes