How often do business owners make decisions they later regret?

Whether it's hiring, investment, strategy, pricing or growth, most founders like to believe they make rational decisions. Yet the reality is that emotions influence almost every business decision we make.

In this episode of ScaleUp Radio, Kevin Brent is joined by psychologist, researcher and entrepreneur Magda Du Preez, founder of GetSense.net. Following years of academic research into decision-making and cognitive bias, Magda has developed practical tools that help entrepreneurs and leaders make better decisions under pressure.

The conversation explores why emotions are not the enemy of good decision-making, how confidence impacts business performance, and why creating clear decision rules can dramatically improve organisational effectiveness as businesses scale.

In This Episode

How one hiring decision nearly bankrupted a business

Magda shares the story that sparked her research journey. A client faced intense investor pressure to make a senior hire quickly. The decision was driven more by emotion than evidence and almost resulted in the collapse of the business.

That experience led Magda to investigate how emotions influence judgement and trigger cognitive biases, ultimately resulting in the creation of GetSense.net.

Why emotions matter in business decisions

Entrepreneurs rely on emotional energy to move quickly and seize opportunities. The challenge is not eliminating emotion but understanding how it affects thinking.

Magda explains that when emotions go unchecked, they can distort judgement, increase bias and create blind spots. Learning to recognise and manage these emotional influences is a critical leadership skill.

The FIRE framework for better decisions

Magda introduces her practical four-step framework:

F – Feel Recognise and acknowledge the emotion you are experiencing.

I – Inspect Examine what is triggering the emotion and how it may be affecting your thinking.

R – Respond Choose a deliberate response rather than reacting automatically.

E – Evolve Learn from the experience and continually improve future decision-making.

This process helps leaders create a pause between emotion and action, allowing better choices to emerge.

The one key thing

Appropriate confidence is the foundation of better decision-making.

According to Magda, appropriate confidence is the ability to accurately distinguish between what you know and what you think you know.

It acts as the gatekeeper to many other cognitive biases and can significantly influence business performance. Research highlighted in the discussion suggests that even modest improvements in appropriate confidence can correlate with substantial improvements in business growth.

Four decision-making capabilities every founder should develop

Magda identifies four critical areas:

Appropriate Confidence Accurately assessing your own knowledge and certainty.
Risk Appraisal Evaluating risk objectively rather than emotionally.
Objectivity Seeing through framing effects and cognitive distortions.
Decision Rules Creating clear guardrails that simplify and improve decisions.

Decision rules: the scaling tool most leaders overlook

One of the most practical discussions centres around decision rules.

Unlike values, which remain relatively stable over time, decision rules are temporary and contextual. They create clarity around priorities and empower teams to make aligned decisions without constantly seeking approval.

Examples include:

No capital expenditure this quarter
No hiring unless revenue targets are achieved
Customer retention before customer acquisition
Focus on recurring revenue opportunities only

By creating clear decision rules, founders reduce decision bottlenecks and free themselves from becoming the centre of every choice.

Practical tools you can use immediately

Magda shares several simple but powerful techniques:

The Reversibility Test

Ask yourself:

"Is this decision reversible?"

If it is not, slow down and spend more time evaluating options.

The 10-10-10 Method

Consider the consequences:

In 10 minutes
In 10 months
In 10 years

This creates perspective and reduces emotional overreaction.

Behavioural Circuit Breakers

Create simple interruptions when emotions are running high:

Take a sip of water
Step outside the room
Use visual reminders such as a FIRE note on your desk

Small actions can create enough space for better thinking.

AI as a thinking partner, not a replacement

Magda also discusses the role of AI in decision-making.

Rather than outsourcing thinking, leaders should use AI to challenge assumptions, surface blind spots and ask better questions.

One particularly useful technique is asking AI to critique its own recommendations from the perspective of a recognised expert. This helps improve the quality of insights while keeping the human firmly in control of the final decision.

Key Takeaways

Emotions drive far more business decisions than most leaders realise.
Appropriate confidence is a critical predictor of decision quality.
Better decision-making can be learned and improved systematically.
Decision rules help teams move faster while remaining aligned.
AI works best as a thought partner rather than a decision-maker.
Small behavioural interventions can dramatically improve judgement under pressure.

About Magda Du Preez

Magda Du Preez is a psychologist, researcher and entrepreneur. She is the founder of GetSense.net, a platform designed to help individuals and organisations improve decision-making through evidence-based frameworks, AI-assisted coaching and practical learning tools.

Scaling up your business isn't easy, and can be a little daunting. Let ScaleUp Radio make it a little easier for you. With guests who have been where you are now, and can offer their thoughts and advice on several aspects of business. ScaleUp Radio is the business podcast you've been waiting for.

If you would like to be a guest on ScaleUp Radio, please click here:

https://bizsmarts.co.uk/scaleupradio/kevin

You can get in touch with Kevin here:

kevin@biz-smart.co.uk

G90 Summit

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If that's you, the G90 Summit is worth a look.

A structured half-day where we work through everything competing for your attention, get clear on the three to five things that must happen in the next 90 days, then commit to them and build the system to make sure they actually happen.

Quarterly, virtual, £97 a seat.

http://Smart90.co.uk/summit

Magda can be found here:

https://getsense.net/contact - Don't forget to mention ScaleUp Radio to get a free trail!

Resources:

Noise by Daniel Kahneman - https://uk.bookshop.org/p/books/noise-daniel-kahneman/1584645?ean=9780008309039&next=t

Hammock Way of Life by Janet Tanguay - https://hammockwayoflife.com/store/