Some of the biggest business catastrophes were caused – in part — by Confirmation Bias. The Great Depression. The Bernie Madoff Ponzi Scheme. The Real Estate Crash of 2008.
Our desire to be ‘right’ is so strong that we are ALL swayed by info that validates what we already think and believe and ignore anything that contradicts that. The problem is that any decision based on such information is likely to be flawed. For business, that spells Trouble.
So how has this common thinking error affected business in the past and how can leaders avoid it? Continue reading
Are you a rational decision-maker? Do you behave in ways that maximize your company’s advantage? Do you strive to minimize costs and risks? If you think so, you are likely mistaken. Every person’s thought process is fraught with over 180 different thinking errors that drive behavior.
One common thinking error is Confirmation Bias, and it’s a doozy!
Just what is Confirmation Bias and how does it affect business?
One thinking error that deeply affects every person’s perceptions and behavior is Negativity Bias. Last week, we looked at what Negativity Bias is and how it affects business. While Negativity Bias profoundly affects business in the areas of strategic planning, employee satisfaction, retention and productivity and customer behavior, the good news is that it can be overcome.
Here are 5 ways to mitigate the effect of Negativity Bias on yourself, your staff and your customers. Continue reading