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Hogan Judgement Report
The judgment of leaders is reflected in their decisions. Although leaders’ decisions determine the fate of their organizations, on average, half of their decisions will be wrong. Therefore, good judgment involves not only making good decisions, but also responding appropriately to bad ones.
Because bad decisions are so common and have grave consequences, it is essential to try to improve decision-making. Becoming aware of one’s decision-making style and becoming more coachable can help people make better decisions and correct bad ones more quickly. The Hogan Judgment Report describes the decision-making style in terms of three components.
Threat Avoidance vs Reward Seeking
Some people make decisions based on a desire to avoid financial, legal, physical, and other threats; they focus on the negative side of the risk-reward equation and try to minimize their potential losses. Other, people make decisions based on a desire to pursue all possible rewards. They are attracted to the positive side of the risk-reward equation and consistently try to maximize their gains.
Tactical vs Strategic Thinking
Some people make decisions focusing on the immediate context and relevant details. They focus on short-term issues such as cost, implementation, and crisis management, and may be less concerned about larger strategic issues. Other people make decisions based on a future-oriented, big picture perspective. They focus on generating new possibilities, and may be less concerned about practical issues such as cost and implementation.
Data Driven vs Intuitive Decisions
Some people make decisions by carefully reviewing relevant data and other facts. They may also review their past decisions periodically to adjust them based on updated data. Other people are more intuitive in their approach; they often make decisions based on their past experience and move on.
People can be placed into one of four categories based on how they process the information needed to make decisions. Each of these groups has characteristic strengths and shortcomings in terms of solving problems and making decisions, primarily because the people in each group are interested in solving different kinds of problems.
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