Deciding on a Management Style That Allows You to Pivot: The Power of Self-Regulation

Management Failures Begin with a Lack of “Thinking Monitoring”

“Why did I make that decision back then?”

Every business leader has experienced a decision they later regretted. When I served as a director during the COVID-19 pandemic, I nearly made a rash judgment in an emergency where sales dropped 70% year-on-year.

Fortunately, someone suggested, “Let’s pause for a moment,” and we avoided the worst outcome. But why do management decisions fail?

A press release from GTF Inc. offers intriguing insights. The company points out that among Facione’s “6 core skills,” the often-overlooked ability of “self-regulation” is what separates successful management decisions from failures.

This “self-regulation” is the ability to objectively monitor your own thought processes. It is a skill at the very core of a “reversible management” style.

What Happens When You Lack the “Ability to Monitor Your Own Thinking”

GTF’s release categorizes the types of management decision failures caused by a lack of self-regulation into four patterns. Here, I’ll explain them, drawing on my own practical experience.

The Trap of Overconfidence: Past Successes Distort Judgment

The first type of failure is “overconfidence.” This occurs when past successes warp your perception of the current situation.

For example, one client company tried to apply the same method for launching a new business that had worked in the past to a completely different market environment. Optimism prevailed internally, with the mindset, “It worked before, so it’ll work again.”

However, the business failed to adapt to market changes and was forced to withdraw. If self-regulation—questioning their own past success—had been at work, the outcome might have been different.

Confirmation Bias: Only Gathering Convenient Information

The second type is “confirmation bias,” the tendency to collect only information that supports your hypothesis while ignoring counter-evidence.

When I established a Malaysian subsidiary, I myself downplayed warnings about local regulatory risks, thinking, “It’ll be fine.” In the end, the withdrawal costs ballooned, resulting in significant losses.

At that time, if I had doubted my optimistic forecasts and actively sought out risk information through self-regulation, I could have increased the reversibility of my expansion decision.

How to Cultivate “Self-Regulation,” Essential for a Reversible Management Style

Self-regulation is not an innate talent. It is a skill that can be developed through training. Here are specific methods to enhance the reversibility of your management decisions.

The Habit of Setting “Withdrawal Conditions” in Advance

The simplest way to activate self-regulation is to decide on “withdrawal conditions” before starting a new business or investment.

Set concrete criteria, such as “withdraw if monthly sales don’t reach ¥1 million (approx. $7,000) in three months” or “transfer the business if profitability isn’t in sight within six months.” This allows for objective decision-making without being swayed by emotions.

This approach helped me when I dealt with the COVID-19 crisis at EYS-STYLE. By reviewing all our businesses and setting criteria like “withdraw if this condition isn’t met” in advance, we were able to make quick and calm decisions.

Set Aside Time to Search for “Counter-Evidence”

Before making an important decision, always set aside time to look for “possibilities that your thinking might be wrong.”

For example, after drafting a plan for a new business, deliberately list 10 reasons “why this business might fail.” From that list, identify realistic risks and consider countermeasures.

This process trains your self-regulation by monitoring your own thinking. It might feel uncomfortable at first, but with repetition, it becomes second nature.

Borrow an “Outside” Perspective

It’s difficult to self-regulate alone. That’s why dialogue with external advisors or leaders from other companies is crucial.

I recommend that my clients hold quarterly review sessions for their management decisions. In these sessions, they examine past decisions from the perspective of “what would you do differently if you could do it over?”

This habit leads to improved self-regulation and the realization of a “reversible management” style across the entire organization.

Self-Regulation Guides an Organization Toward “Reversible Management”

Self-regulation is a capability that should be cultivated not only by individual leaders but also across the entire organization.

For instance, at Atlassian’s conference, where leaders from companies like KDDI and Mizuho FG gathered, discussions were held on AI utilization and organizational transformation. Gaining an objective perspective on your own company’s decisions in such settings is an excellent opportunity for self-regulation.

Furthermore, the “Development Capital in the AI Era” project, which views development productivity as a management asset, aligns well with the concept of self-regulation. The attitude of objectively observing your company’s development processes and identifying areas for improvement is precisely organizational-level self-regulation.

Summary: Reversible Decisions Begin with “Monitoring Your Thinking”

Management decision failures often stem more from a failure to monitor one’s own thinking than from a lack of information or analytical errors. GTF’s press release sharply points this out.

To practice “reversible management,” make the following three habits part of your routine:

1. Set withdrawal conditions in advance.
2. Set aside time to search for counter-evidence.
3. Regularly borrow an outside perspective.

These habits will bring “reversibility” to your management decisions. Instead of fearing failure, create a system that allows you to pivot even if you fail. The first step toward that is enhancing your self-regulation ability.