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Thinking Errors You Need To Know To Avoid For Superior Decision-Making

In our hectic world, sharp and clear decision-making has become incredibly important. Yet many of us overlook a critical barrier: thinking errors. These are those sneaky mistakes in our judgment that can lead us off course. Understanding these errors is far more than just theory—it’s a tool that can revolutionize both our work and personal life. Left unchecked, these errors can wreak havoc on our mental and emotional balance. In the following article, I’ll break down what these thinking errors are, sharing 11 common types along with real-life examples from the boardroom to the living room.

“A great many people think they are thinking when they are merely rearranging their prejudices.”

William James

What Are Thinking Errors?

thinking errors

Simply stated, thinking errors are systematic ways that our mind makes poor judgments. Further, thinking errors can affect us both professionally and personally. Worse, they can have catastrophic consequences for both businesses and for society. In the area of cognitive behavior therapy (CBT), Aaron Beck (1963) initially identified thinking errors as the sources of both mental and emotional issues. For more details on thinking errors from a CBT perspecitive see, TherapyCentral’s What are Thinking Errors in CBT (and how to manage them).

So, thinking errors are flawed patterns of reasoning that convince us of falsehoods. In other words, creating a reality that doesn’t really exist. Moreover, it is important to identify these thinking errors not only to improve our day-to-day decision-making, but also for our mental health.

Thinking Errors Affect Good Decision Making and Even Our Mental Health.

Thinking errors can be insidious, often going unnoticed as they quietly undermine our decision-making capabilities. These cognitive distortions can lead to a cascade of poor choices. Indeed, as one distorted thought begets another it creates a domino effect that can sabotage our personal and professional goals. Beyond decision-making, thinking errors can have a profound impact on our mental health, contributing to stress, depression, and anxiety. By recognizing and addressing these cognitive distortions, we can preserve not only the clarity of our decisions but also our overall well-being.

So, this makes it even more critical for us to identify thinking errors not only in ourselves, but others. It is surprising that these same thinking errors contribute both to bad decision-making and poor mental health. In fact, it is just a matter of degree when our bad thinking can turn from just flawed judgment to serious mental and emotional issues. For instance, cognitive behavior therapy identifies thinking errors as a major contributor to many mental and emotional problems. These include addiction, anxiety, depression, suicidal thinking, and even post-traumatic stress disorder (PTSD). For more detailed discussion on cognitive distortions and the effect they have on your mental health, see VeryWellMind’s 10 Cognitive Distortions That Can Cause Negative Thinking.

11 Examples of Thinking Errors.

So, thinking errors are a major contributor to poor decision-making as well as mental and emotional issues. When navigating through the complexities of life, our thoughts often steer the wheel of our emotions and behaviors. These “Thinking Errors” are common traps that can lead to stress, anxiety, and misunderstandings. Additionally, they shape our world in subtle but profound ways, often without us even realizing it. Below are 11 examples of thinking errors, illustrated with practical examples. These 11 types of thinking errors with examples shed light on how they can manifest in everyday life, both personal and business. Additionally, these example offer insight into recognizing and rectifying these patterns of erroneous thinking.

1. All or Nothing Thinking.

First, all or nothing thinking is a binary way of looking at situations, where things are seen in black and white, with no gray area in between. For instance, Paul has been diligently dieting for weeks but gives in to temptation one evening and eats a slice of cake. He immediately considers his entire diet a failure and decides to abandon it completely, thinking, “I’ve already messed up, so I might as well eat whatever I want.”  

In a business situation for example, a startup founder might scrap a product feature entirely after receiving a bit of negative feedback. This is because they believe it’s completely flawed. They do not even consider a more moderate approach of refining and improving the feature.

2. Overgeneralizing.

Overgeneralizing involves drawing broad conclusions from a single or few events. For example, Sarah went on a date that didn’t go well. She concludes, “All my dates are disasters; I’ll never find someone compatible.” This sweeping statement ignores any positive dating experiences she may have had. Thus, she discourages herself from continuing to try in the future.

For a business illustration, a manager who had a bad experience with one remote worker may conclude that all remote workers are unproductive. Hence, this leads to a policy that unnecessarily restricts remote working options and limits talent acquisition.

3. Over Filtering the Positive or Negative.

When one filters their experiences, they tend to focus solely on the negative or positive aspects, ignoring the other. For example, Jane, a new writer, receives feedback on her novel. Despite most reviews being positive, she fixates on the one negative critique and believes her writing is terrible. Thus, she overlooks the majority of positive responses.

Another example for businesses is where during a quarterly review, a CEO might focus only on the negative sales figures from one region as the basis for making a decision. As a result, they decide to pull out of the market entirely, while ignoring the positive growth trends in other regions that suggest overall company health.

4. Catastrophizing and Over Magnifying.

Catastrophizing involves expecting the worst-case scenario to occur, while over magnifying involves exaggerating the importance of negative events. For example, after noticing a minor mistake in his report, Ben becomes convinced he will be fired, believing this small error will ruin his entire career.

In another example, an IT manager may overestimate the impact of a minor security breach and decide to overhaul the entire IT system. Hence, this decision incurs unnecessary costs and downtime instead of addressing the specific vulnerability.

5. Jumping to Conclusions.

This thinking error is when conclusions are made without sufficient evidence. For example, when Emily’s friend doesn’t return her text immediately, she assumes the friendship is over and that she must have done something to offend her friend. This is in spite of there being numerous other reasons for the delayed response.

In another example, a marketing team might assume a campaign is a failure after a single day of poor metrics without waiting for more data. Thus, this leads to the premature cancellation of what could have been a successful long-term strategy.

6. Reasoning By Emotions.

Reasoning by emotions is when feelings are used as evidence for the truth of a belief. For instance, Mike feels incompetent, so he concludes that he must indeed be incompetent. The problem with this conclusion is that he disregarded evidence of his past successes and competencies that contradict his feelings.

Another example is a business owner feeling anxious about the economy. As a result, they decide to hastily sell off parts of the business out of fear. This is despite that their financial advisors indicating that the market will likely recover.

7. Labeling and Mislabeling.

Labeling involves attaching a negative label to oneself or others based on a single characteristic or event. For example, after failing to meet a work deadline, Lisa labels herself as a “complete failure”. The problem with this conclusion is that she is ignoring all other areas of her life where she has been successful.

In another example, a sales director who didn’t hit the last quarter’s target might be labeled as “incompetent” by upper management, leading to their dismissal. This is despite the director had a long track record of success and extenuating circumstances in the previous quarter.

8. Cognitive Bias, Not Impartial.

Cognitive biases are tendencies to think in certain ways that can lead to systematic deviations from rationality. For example, Mark has a strong belief that his political views are the most informed. As a result, he dismissively interprets any opposing evidence as flawed without truly considering it, exemplifying confirmation bias. Indeed, we all have biases to some degree. It is a human condition. Other instances of biases include self-serving, in-group, and maintaining the status quo to name a few. For a list of 11 types of bias with examples, see my article, Bias With Examples – Everything You Need To Know.

9. The Fallacy That You Can Control Everything.

This fallacy is the belief that one has more control over events than is actually the case. For instance, Angela spends hours excessively trying to prevent any potential problems at her upcoming event. This is because she believes that she can control all variables to ensure success. This is very noble of her, but at some point there are diminishing returns where she could have better spent her time on something else.

In another example, a project leader might insist on micromanaging every detail of a project, believing they can control all outcomes. The problem is that his actions could very well stifle team creativity and lead to missed deadlines due to bottlenecks.

10. Rigid Thinking and Over Reliance on “Should” Statements.

Rigid thinking is inflexible and often involves “should” statements that dictate a strict code of conduct. For example, Jason believes he should always be the one to solve his family’s problems. When his sister handles a situation without his help, he feels unnecessary and guilty. Hence, he is unable to see the benefits of shared responsibility.

In a business example, a finance department might stick rigidly to a budgeting process “because that’s how its always been done”. At some point, this will result in missed opportunities for innovation in financial strategy that could save the company money.

11. Shallow Thinking: Descriptive Versus Analytical.

Shallow thinking involves remaining on the surface level without delving deeper into the underlying issues or reasons. Another way to say this is over focusing on the “what” and less so on the “how” or “why”. As an example, during a debate, instead of analyzing the complexities of the topic, Hannah simply repeats popular opinions she has heard. This is because she thought maybe she could get by without truly engaging with the material to form her own reasoned stance. In another example, a person can form an opinion on immigration policies based solely on sensational headlines, without delving into the nuances and implications.

In a business example, the leadership team might decide to enter a market because it’s the latest trend. Indeed, they do this without a thorough analysis of the market’s demand or the company’s capacity to meet that demand. As a result, this leads to a failed expansion and financial loss.

For more information on different types of thinking errors, see PyschologyToday’s 10 Thinking Errors That Will Crush Your Mental Strength and IQMatrix’s 10 UNHELPFUL THINKING STYLES SABOTAGING YOUR SUCCESS.

Thinking Well: Get the Right Attitude, Knowledge, and Skills.

To combat thinking errors and foster sound decision-making, it’s essential to adopt the right attitude, acquire knowledge about these cognitive pitfalls, and develop the skills to counteract them. This involves cultivating a mindset of curiosity and open-mindedness, learning about common thinking errors and their effects.

Further, this new mindset needs to result in new habits. Through mindfulness, critical thinking, and a commitment to personal growth, we can train our brains to recognize and rectify these thinking errors, leading to wiser decisions and a more fulfilling life. As a result, you can develop critical thinking habits to combat thinking errors. For more about critical thinking habits, see my article, Think Critically: It’s More Than A Process, It Is A Perspective That Will Empower Results.

Think Critically: It’s More Than A Process, It Is A Perspective That Will Empower Results.

Critical thinking goes beyond just being a method or process in our lives – it’s a presupposed mindset that enables you to think critically. By embracing critical thinking as a mindset, you open doors to amazing results and achievements. Indeed, it allows you to closely examine your surroundings and experiences, challenge the norm, and discover creative solutions. This empowering way of thinking transforms how you handle problems and boost your success.

Click here and I’ll explain the essential aspects of critical thinking, clarify what it isn’t. Moreover, I’ll reveal 9 ways for you to make critical thinking a habit.

For more from Unvarnished Facts, see the latest on these topics, Bias and Decision-Making.

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