How Unconscious Patterns Shape Billion-Dollar Decisions

Jul 19

In the corporate world, decisions worth billions of dollars are made on a daily basis. Mergers, acquisitions, market expansions, and product launches shape industries and economies. They also influence the lives of millions of people. Executives or leaders in big corporations don’t just rely on data-driven strategies to make billion-dollar decisions – the hidden force behind these power moves is the unconscious mind. Unconscious patterns silently steer monumental decisions, but they are not widely discussed. Learn more about how unconscious patterns shape billion-dollar decisions in the article below.

Table of Contents

Does unconscious make our decisions?
Emotional triggers in executive decision-making
Repetition compulsion
Herd mentality
Ego and identity
Tips for more conscious decision-making
Conclusion
References

Does unconscious make our decisions?

The human brain processes around 11 million bits of information per second, but interestingly, the conscious mind can handle only 50 to 60 bits of information a second. That means our brains may take cognitive shortcuts that result in unconscious patterns in decision-making.

Unconscious mechanisms set us up for the action we decide to take through the preparation of neuronal activity. This preparation occurs before we consciously experience the intention to do something. More precisely, the unconscious rules all actions that people take. In fact, people tend to make a lot better choices when not thinking at all, particularly in complex consumer settings. The reason is that our unconscious processes are less constrained than their conscious counterparts, which makes huge demands on the cognitive system. Intuition and other unconscious processes function in a manner that automatically and quickly synthesizes a large quantity of complex information, and that is superior to thinking deliberately.

A great deal of our cognitive activity takes place under the surface and is shaped by mental shortcuts that simplify complex decisions. Although these shortcuts are revolutionary and adaptive, they can lead to systemic errors in judgment, particularly in high-pressure environments where billions of dollars are at stake.

Emotional triggers in executive decision-making

Emotions are often dismissed as irrelevant in business decisions because these power moves are supposed to be “rational.” However, emotions are powerful drivers of unconscious behavior. Overconfidence, fear, greed, and other emotions often take the form of strategic thinking. For instance, fear can paralyze decision-making or push leaders toward overly conservative choices. Overconfidence and greed can fuel billion-dollar decisions that aren’t quite thought through.

Moreover, in leadership settings, common emotional triggers include stress from high-stakes decisions, interpersonal conflicts, feedback, and organizational changes. These triggers can evoke emotions such as excitement, frustration, or anxiety, which can have a major influence on the decision-making process.

Repetition compulsion

Repetition compulsion is defined as the unconscious tendency to repeat painful events or their circumstances in an attempt to gain mastery over their trauma. Coined by Sigmund Freud, repetition compulsion is described as the desire to return to the earlier state of things. In the business setting, repetition compulsion appears when executives constantly repeat similar mistakes, chase deals that mimic past traumas or failures, or hire the same type of dysfunctional team members.

For example, an investor who once suffered a public failure and lost millions of dollars may seek redemption through even bigger and riskier ventures without realizing it. That’s why unconscious pattern affects decision-making even at the highest levels.

Sometimes the unconscious patterns become tricky to recognize because they may feel logical or justified by market dynamics, even when they are driven by strong emotions.

Herd mentality

Herd mentality is a psychological phenomenon where people in a group often adopt behaviors and attitudes that differ significantly from their personal beliefs and morals. They do so in order to conform and fit in. Also known as crowd or mob mentality, herd mentality has a major influence on human behavior. In a business setting, herd mentality drives leaders to follow industry trends without scrutiny.

Herding can be considered a response to the uncertainty of a person’s perceptions of their ignorance. In other words, they may follow the crowd, thinking other people are better informed. Doing so can create instability and, in financial markets, it generates speculative episodes. For some leaders in the corporate world, it is better to be conventionally wrong than unconventionally right because following others may help a person maintain good relationships. In this scenario, it may seem logical to follow the crowd because there is safety in numbers.

Following herd mentality is an unconscious pattern; many don’t do it on purpose but rather choose to go in a certain direction because it may seem like the safe bet or the logical idea.

Ego and identity

At such a high level and billion-dollar market, decisions aren’t always about money itself. They are also about dominance, legacy, and identity. The more a businessperson identifies with the role (e.g., of an executive, investor, leader, or founder), the more likely unconscious patterns will dictate their actions.

On the other hand, the desire to be perceived as a visionary may lead an owner of a big corporation to agree to an ill-advised deal. The fear of looking weak may push a CEO to resist restructuring. In these cases, decisions aren’t being made in the service of the business, but in the service of someone’s ego or unresolved identity wounds.

Tips for more conscious decision-making

Unconscious patterns play a major role in decisions we make, and billion-dollar corporations aren’t the exception to this rule. Leaders and executives in big companies behave in a certain way due to unconscious patterns, but there are several things you can do for a more conscious decision-making process. These include:
● Diversifying perspectives by including diverse voices across gender, expertise, and cultural backgrounds
● Putting big ideas and plans to the test, where a group of selected people criticizes them to expose blind spots
● Allowing emotions to settle and biases to surface before making big decisions
● Questioning data sources and interpretations to avoid anchoring or confirmation bias
● Consulting external experts to validate the strategic fit of a certain deal

Conclusion

To an untrained eye, it may seem that the decisions on the highest corporate levels are only made with logic and reason, i.e., they are purely intentional. The reality is that unconscious patterns, such as emotional state, past experiences, and behavior of others, can shape billion-dollar decisions and thereby contribute to the success or failure of the corporation and its leaders. This just shows the complexity of the decision-making process and why it is important to take your time and consider the implications of such a decision from different perspectives.