Stress Influence
Stress amplifies other biases and impairs judgment.
Key Principle
Avoid major decisions under stress; build in recovery time.
Understanding Stress Influence
Stress doesn't just make us uncomfortable—it systematically impairs our thinking. Under stress, we become more susceptible to all other cognitive biases. We're more likely to doubt-avoid, to respond to social proof, to make snap judgments, and to hold onto losing positions.
Chronic stress is particularly damaging because it becomes the default state in which decisions are made. Leaders under constant stress make consistently worse decisions and often don't recognize it.
The implication is clear: major decisions should not be made under stress whenever possible. Rest, recovery, and clarity are not luxuries—they're prerequisites for good judgment.
Real-World Examples
- Panic selling during market crashes.
- Making important decisions during crises when calm is needed.
- Escalating commitment when under pressure to show results.
- Hiring quickly during growth spurts without proper evaluation.
How to Apply This
Delay important decisions when under acute stress
Build recovery time into schedules
Create decision-making processes that function during stress
Recognize when others are making decisions under stress
Common Mistakes to Avoid
- Treating stress as a badge of honor rather than a cognitive impairment
- Making permanent decisions based on temporary emotional states
- Not recognizing how stress is affecting judgment
- Failing to build in buffers for stressful periods
Notable Quotes
"Never make a permanent decision based on a temporary emotion."
— Unknown