In the first part of this series, we explored how approximation can help guide business decisions when there isn’t a perfect answer. This article builds on that idea by examining how observation and experience shape better judgment over time, helping professionals make more informed decisions in future situations.
Why Observation Is Essential for Better Decisions
There’s a lot to learn in the way ancient mathematicians would draw inspiration from the world around them for their practice and study. It makes sense since back then, math was more driven to ease the pain of practical everyday problems: representing large quantities succinctly, how to divide up irregularly shaped land equally, calculating interest on loans, and so forth. The answers to these problems have many wider theoretical implications, but they were driven by real-world observations and helped to inform practices going forward.
You can’t always conjure up or recall some perfect formula or behavior to predict or explain everything. Especially when you don’t have the blessing of an additional 2 thousand years of mathematical progress and rigor to stand on. In our current age, we tend to scoff at anecdotal findings, and in many cases (mathematical, scientific, medical), that is absolutely true. But we’re not talking about that right now! Observation is a very powerful tool, perhaps the most powerful by a mile, in interpersonal relationships. These can be relationships within your company or external relationships with users, customers, or partners.
Using Experience to Improve Future Decisions
However, the big problem with observation is that it is inherently experiential. There is no way that you can try to observe something before it actually happens, and sometimes waiting until something actually happens to figure out what to do is too late.
This is where proactive calculation comes into play. You use your knowledge of similar situations to build an expectation of what you expect to happen, and you can prepare yourself ahead of time to address the situation and keep it guided towards your desired outcome. It’s no Pythagorean Theorem, but in the context of social and business relations, it is nonetheless still a very calculating approach.
The Cycle of Observation and Calculation
The two make a cycle. You observe something, you learn from it, that observation informs your future calculations, those calculations help you better prepare for future situations, and it goes on and on. It’s like a juggling act.
Applying Observation to Meetings and Business Relationships
With that in mind, you can start looking at how to apply it to your business and your relationships. Where do your observations come from, what are they observations of, and where are they recorded?
Most likely, they come from your meetings and engagements, so the observations will lie in your memories and (ideally) in recorded notes or minutes. As such, when you are structuring your notes and minutes, you should consider how to make the most of them as an archive of what you observed and experienced in the meeting.
Important items that you may want to record your observations of can include:
- Timing
- Observed culture
- Spoken history
- People in attendance (plus their responsibilities)
- Concerns presented
Then, when you have to do it again, you can look back at the observations and start asking questions like:
- “How can I do this better next time?” or
- “What will I do if they say <this> instead?”
Those are your calculations.
Building Better Business Judgment Through Experience
The best part is that for all the mind work, the hypothesizing, and the calculating, what you’re figuring out is still an approach to concrete real-world situations that you are going to experience. That makes it feel much more approachable, and it makes it very easy to see when and how it pays off as you start applying these lessons. Plus, maybe you’ll feel some comfort or even pride knowing you’re employing practices used and honed since antiquity! Just like the ancients, you’ll be pioneering your own theory of practice driven entirely by your experiences and observations of the world around you.
Author: Matthew Pollard
