Decision Making for Spa Management

topics related to decision making process - uncertainty, alternatives, risk consequences, complexity, personal issues; white chalk handwriting and color sticky notes on blackboard

Decision making for spa management can be tricky.  However, there are common biases that can be avoided when management is making crucial decisions. Psychologists, cognitive theorists and businesses experts have honed in on a variety of biases that weave their way into our perceptions.  A few of the most common are:

Action-Oriented Biases

Excessive optimism about the outcome of planned actions makes the spa vulnerable for failure.  Within the wellness industry this can translate into management being overly optimistic about management systems, planned events, service packages or new products within the facility.  This natural human tendency is to overestimate the likelihood of positive events and underestimate that of negative ones.  Furthermore, overconfidence can lead to overestimating one’s skill level relative to others’ and consequently our ability to affect future outcomes. We take credit for past positive outcomes without acknowledging the role of chance.

Perception and Judgement Biases

Placing extra value on evidence consistent with a favored belief is a natural tendency.  However, it is crucial to also search for contradictions in the decision based on evidence. In our democratic system of thought as a society it is natural that we sway heavily on groupthink and lean in to consensus at the cost of a realistic appraisal of alternative courses of action.  The group can focus too narrowly on  our own perspective without considering how others might be affected by our decisions.  There can be an egocentric assumption that everyone has access to the same information that we do.

Biases Related to the Framing of Alternatives

We can feel losses more acutely than gains of the same amount, which makes us more risk-averse than rational calculation would recommend. We can weigh too heavily on historical wins and loses without considering future courses of actions that will benefit the organization in years to come.  Due to past commitment

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