October 19, 2010

Stress factor

"Because stress increases focus on the here and now, stressed people have a hard time thinking about the long term. The manager about to lose her job tomorrow has little interest in making a decision that will make her better off in three years. Psychological stress creates a sense of immediacy that inhibits consideration of options with distant pay-offs. The stress response — so effective for dealing with here-and-now risks — co-opts the decision-making apparatus and compels poor decisions". -- Michael J. Mauboussin