trendsIf you have seen commercials for financial advisors, there is usually a line that says “past results do not guarantee future performance.” This doesn’t just apply to the stock market.

One of the most common habits that leads to terrible decisions is remaining locked in the past. We rely on the same old data or processes, failing to understand that they may be based on assumptions that are no longer true. It’s important to keep those base assumptions in mind when applying the tried and true.

  • Question the data and processes you’re used to, and ask whether they can be updated or improved. Just because they worked in the past doesn’t mean they’ll work in the future.
  • Ask why you are doing what you are doing. If the answer is because we’ve always done it, it’s time to take a look at whether it is still needed.

If you continue to do this, you can avoid the stuck-in-the-past pitfall and become a more effective decision maker.