Body corporate meetings can often be a source of frustration, characterised by endless debates and decision-making stalemates. To address these challenges, a recent webinar, “The Hidden Traps in Decision Making,” provides valuable tools and strategies for owners and strata managers. Led by Chris Irons from Strata Solve and William Marquand, General Manager at Tower Body Corporate, the session explores the fascinating psychology behind body corporate decision-making.
Drawing upon concepts from the Harvard Business Review article of the same name The Hidden Traps in Decision Making by John S. Hammond, Ralph L. Keeny, and Howard Raiffa, the webinar aims to help participants understand the hidden factors influencing owner decisions and facilitate smoother, more productive meetings that drive progress within a body corporate community.
QLD The psychology of body corporate decision making | Strata Solve + Tower Body Corporate – Feb 2025
Understanding the psychology of decision-making
A key focus of the webinar was exploring the psychological reasons behind decisions made by body corporate owners. The presenters emphasise that cognitive biases, social influences, and risk perception can significantly impact how people vote. For instance, the “anchoring” bias, where the initial piece of information received can disproportionately influence subsequent decision-making, was discussed. Similarly, pride was identified as a factor, with committee members often driven by a desire to do the right thing and act in the best interests of owners.
The importance of framing issues correctly was also highlighted. Failing to do so can impede the decision-making process. Additionally, the presenters stress the need for decision-makers to have sufficient information to make informed choices. Transparency in the decision-making process was underscored as a means of building trust within the community. The webinar also touched on the concept of reasonable decision-making, emphasising that decisions should be based on available information and aligned with relevant legislation.
Practical strategies for improved decision-making outcomes
The webinar offers a range of practical strategies for improving decision-making outcomes in body corporate settings:
- Improve communication and build trust: Transparent communication and trust-building is important to foster positive change within the community.
- Understand motivations: An understanding of what motivates fellow owners can lead to more successful proposals.
- Provide adequate information: Ensure owners have enough information to make informed decisions. Ask “Have you got enough information in front of you to make a decision now?”.
- Frame issues effectively: Present issues in a clear and concise manner that facilitates decision-making. Where possible, avoid discussions that go on for 20 or 30 minutes with no outcome.
- Promote diversity on committees: Encourage diverse perspectives within committees to ensure balanced decision-making.
- Training: Encourage basic training for committee members. This can lead to more informed and supported participation.
Next steps for your body corporate community
The webinar also provided specific direction for lot owners, committee members, and strata managers.
- Lot owners: actively understand and participate in the strata decision-making process.
- Committee members: lead and influence positive outcomes for you community by being supportive and confident.
- Strata managers: utilise the psychology of decision-making to facilitate smoother and more productive meetings.
Taking responsibility and moving forward
Throughout the webinar, the presenters emphasise the importance of accepting responsibility and focusing on continuous improvement. Owners are reminded that owning property in a body corporate is a responsibility that requires active participation. The need to accept that decisions are made based on the information available at the time, even if they don’t always work out as planned, was also stressed. Rather than dwelling on past mistakes, participants are encouraged to focus on improving the scheme moving forward.
Finally, when facing difficulties, the presenters advised zooming out and considering the broader context before making a decision. Don’t be too hard on yourself or those around you if you think decisions are either not getting made or they’re not getting made well. Decision-making is tough work. Step yourself through a process, be methodical, work at it your community will see results.
By implementing these strategies and embracing a mindset of responsibility and continuous improvement, body corporates can navigate the complexities of decision-making more effectively, foster trust, and achieve positive change within their communities.
Resource material
Download the Presentation: The Hidden Traps in Decision Making
- The Hidden Traps in Decision Making – John S. Hammond, Ralph L. Keeney and Howard Raiffa
- Baden Central [2024] QBCCMCmr 270 (24 July 2024) There is a general requirement that a body corporate and its committee and act reasonably when making a decision.There is considerable case law on reasonable decision-making in bodies corporate. The test for whether a decision is reasonable is objective. It is a question of fact, having regard to all the circumstances. Reasonable decision-making “…involves an evaluation of the known facts, circumstances and considerations that tend to have a rational bearing on the issue…” and “…requires that all relevant matters are taken into consideration and irrelevant ones are left out”. The person challenging a decision bears the onus of establishing that the body corporate failed to act reasonably.
Presenters
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924
This article was written by The LookUpStrata Team.
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