Beware biases in decision-making

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This article was published 20/07/2019 (2501 days ago), so information in it may no longer be current.

Today’s work world is getting more and more complex, which in turn makes decisions more and more complicated and difficult. One reason is that the people who need to be involved in the decision-making are often located in different offices, sometimes on an international scale. As well, workplace dynamics such as different personalities and competing personal objectives can inject political sensitivities and personal career goals into the equation. Finally, the various different approaches to decision-making, and the risk tolerance and personal fear experienced by some participants, can also affect the ability to agree on a specific direction.

Another complication in decision-making is the fact that our psychological biases often interfere in the overall decision-making process. Psychological bias is referred to as a personal preference or prejudice through which individuals filter any and all communication. In other words, people make decisions based on the perceived truths they learned from their background, social norms and personal experience.

The challenge is that a personal bias can be so strong that a decision-maker may stop seeking information as soon as the data confirms their specific point of view. As a result, psychological biases can create poor and very costly decisions.

There are a number of common biases that can steer decision-makers away from the facts and evidence. Take time to review the following and determine if any apply to you and how they have and or might impact your decision-making.

Confirmation bias: This occurs when an individual interprets and only accepts information that supports existing beliefs, even when evidence supports another viewpoint. Confirmation bias is one of the most frequent errors in decision-making.

Anchoring bias: This refers to making a final decisions based on first impressions. In other words, an individual jumps to conclusions after reviewing only one piece of information instead of looking at other possibilities. Usually, decisions are made hastily.

Availability bias: This mental shortcut causes a decision-maker to stop exploring and be dependent on the first information and/or evidence that quickly comes to mind. This prevents individuals from looking at all of the facts.

Overconfidence bias: Having faith in one’s own knowledge is one thing, but when you believe that your input is more valuable than others and/or the factual information collected, you are making a decision based on experience and your hunch rather than facts. More often than not, you will be wrong.

Conservatism bias: Some people are adamant about their personal beliefs and refuse to listen to alternative views. These conservative views cause them to deliberately shut out any new information and to ignore new facts.

Framing bias: Decision-makers are also influenced by how a message is framed and delivered. For instance, options that are presented in a negative and/or positive manner push individuals to make a decision based on personal gain or loss. They then rely on their emotions to make their decision.

Bandwagon effect: In this situation, individuals will make their decision based on what everyone else is doing rather than their own personal values and beliefs. The bandwagon often results from group pressure to belong and the fear of being left out.

Authority bias: Some individuals have a favourite authority figure either at work, at home and/or in the political arena. They look up to these individuals and follow their direction and decisions instead of valuing their own opinion. The result could be making a decision that is wrong for their personal circumstances.

Negative bias: A negative bias leads decision-makers to focus on negative elements of a decision requirement versus any positive elements. Therefore, any negativity in the environment will get exaggerated and will influence a decision.

Self-serving bias: This is a self-esteem issue where people attribute positive attributes to their own personal character. When something goes wrong, they suggest things were beyond their control and blame others and/or external circumstances.

Projection bias: This is also a self-esteem issue in that individuals seek approval from others and therefore overestimate how much people think like them and agree with their opinions and/or actions.

While this article only touches on the many examples of personal bias, a real question for readers is how to overcome biases in order to make the right decision and a good decision for your specific circumstances. The following tactics will help to steer you in the right direction:

Understand your own biases: Let’s face it, everyone has biases in their thinking. These are stereotypes and unconscious biases based on what you learned from your cultural upbringing and are now just how you live your life. You do things without thinking. Take time to reflect on your biases, make a list and then determine how they have affected your daily decision-making, your friendships and your career success. Ensure that your value system focuses on fair treatment and respect for others in your environment.

Recognize other biases: Once you are familiar with the various common biases, start trying to recognize them in daily conversations, work meetings, family gatherings, your formal reading list and in news reports. Identify the biases and provide counter-arguments, even if you have to keep them to yourself due to other political sensitivities.

Take a learning approach: No one is perfect, but in today’s world we need to be more open-minded to other viewpoints. Expose yourself to different people, learn more about them and think of yourself in their shoes. Take time to learn to recognize stereotypes and biased generalizations in others. Stop and ask yourself questions such as “who, what, why, where, how” to clarify what you’ve experienced. Stop and check the facts. Seek out new information to help bring about a broader understanding.

Apply a decision-making model: Most people are so accustomed to making decisions quickly that they don’t realize they are using assumptions and biases within their informal decision-making model. Check out the simple formal problem-solving methodologies available and train yourself to apply one with every decision.

It is understood that unconscious biases act as shortcuts and enable people to make quick decisions; however, these are often more wrong than right, and sometimes even defy common sense. The results, of course, are costly decisions that can affect one’s personal and professional life as well as that of the organization.

Source: 42 Types of Decision Making Cognitive Biases that affect your Life, Wisetoast.com.

Barbara J. Bowes, FCPHR, CMC, CCP, M.Ed., is president of Legacy Bowes Group, the author of eight books, a radio personality, a speaker, an executive coach and a workshop leader. Additionally, she is chairwoman for the Manitoba Women’s Advisory Council. She can be reached at barb@legacybowes.com.