- Benjamin
๐ง๐ต๐ถ๐ป๐ธ ๐๐ผ๐โ๐ฟ๐ฒ ๐ฟ๐ถ๐ด๐ต๐? ๐ง๐ต๐ถ๐ป๐ธ ๐ฎ๐ด๐ฎ๐ถ๐ป.
๐ง๐ต๐ถ๐ป๐ธ ๐๐ผ๐โ๐ฟ๐ฒ ๐ฟ๐ถ๐ด๐ต๐? ๐ง๐ต๐ถ๐ป๐ธ ๐ฎ๐ด๐ฎ๐ถ๐ป.
Cognitive biases may unknowingly impact your decisions as a startup leader. Here are the main ones to consider.
๐๐๐ ๐๐ญ๐ข๐ฏ๐ข๐ญ๐ฒ ๐๐ข๐๐ฌ occurs when measuring two pieces of equal information where the bad one far outweighs the good one.
For instance, we linger on one bad comment in an otherwise fantastic review.
This bias makes us risk adverse and slow to act by dwelling on potential flaws.
It makes sense evolutionarily. Early humans who worried constantly were much more likely to survive many dangers.
In the news, negativity bias shows with hard-hitting headlines designed to grab attention and thus advertising dollars.
How do we respond to this bias?
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ด๐ฟ๐ผ๐๐๐ต โ Seek positive input from advisors, the team, and experts when tempted to ruminate on a mistake.
๐ง๐ฒ๐ฎ๐บ ๐ด๐ฟ๐ผ๐๐๐ต โ Recognize and announce achievements since it requires at least five to offset a single bad incident.*
๐ฃ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐ด๐ฟ๐ผ๐๐๐ต โ Record your accomplishments knowing it will take five of them to offset just one bad event.
If you want to prosper, recognize how biases can impact your behaviors and therefore your success.
* This article explains how five good encounters offsets one bad: http://bit.ly/3iH3EwI
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๐๐จ๐ง๐๐ข๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐ข๐๐ฌ describes when weโre inclined to find information and data which supports our own ideas.
This bias makes us less willing to accept othersโ ideas and rules out creative, game-changing recommendations.
In politics, if you see someone in your party say something clever, you think itโs wonderful, but if they make a mistake, you interpret that as theyโre just having a bad day.
How do we respond to this bias?
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ด๐ฟ๐ผ๐๐๐ต โ Encourage and test new ideas. If all ideas get ignored, the implied message will be only you are right.
๐ง๐ฒ๐ฎ๐บ ๐ด๐ฟ๐ผ๐๐๐ต โ Beware creating vanity metrics (instead of industry metrics) to defend growth. Solicit and compile all ideas from diverse sources to encourage innovation.
๐ฃ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐ด๐ฟ๐ผ๐๐๐ต โ Ask employees and peers, โWhat could I have done differently to make this better?โ in order to grow. This will help push past their desire to agree with you.
If you want to prosper, recognize how biases can impact your behaviors and therefore your success.
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๐๐ก๐ ๐๐๐ง๐๐ฐ๐๐ ๐จ๐ง ๐๐๐๐๐๐ญ is when judgement is made based on limited or prevailing information.
This bias causes us to ignore new information and strong ideas in favor of otherโs opinions.
Remember in high school when fashion trends raced through the halls? More seriously, this plays out when trial juries are heavily influenced by one or two members.
How do we respond to this bias?
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ด๐ฟ๐ผ๐๐๐ต โ Avoid following industry competitors all going down the same path if that path doesn't work for you.
๐ง๐ฒ๐ฎ๐บ ๐ด๐ฟ๐ผ๐๐๐ต โ Combat this bias in meetings by asking attendees to individually submit thoughts beforehand. After discussion, consider ranking priorities privately.
๐ฃ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐ด๐ฟ๐ผ๐๐๐ต โ Encourage a โdevilโs advocateโ when making serious decisions. People hesitate to offer contrarian beliefs, even despite serious consequences.
If you want to prosper, recognize how biases can impact your behaviors and therefore your success.
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๐๐๐๐ข๐ง๐ข๐ญ๐ฒ ๐๐ข๐๐ฌ is when we prefer people who appear and think like us.
This bias tricks us to believe that competent employees and great ideas are always objectively measured.
This plays out in discussions about racism and discrimination when unconscious decisions preference certain groups.
How do we respond to this bias?
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ด๐ฟ๐ผ๐๐๐ต โ Ensure hiring practices encourage diverse candidate sources, objective qualifications, blind screening, and unbiased interviews based on work-related criteria.
๐ง๐ฒ๐ฎ๐บ ๐ด๐ฟ๐ผ๐๐๐ต โ Beware promotions and bonuses being unknowingly influenced and check training, networking, and mentoring opportunities are fairly distributed.
๐ฃ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐ด๐ฟ๐ผ๐๐๐ต โ Know this bias likely affects you and your colleagues and confirm someone in the company is responsible for diversity and inclusion best practices.
If you want to prosper, recognize how biases can impact your behaviors and therefore your success.
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๐ ๐ซ๐๐ฆ๐ข๐ง๐ ๐๐๐๐๐๐ญ is the tendency to see any information through the lens by which it is presented.
This bias makes us ignorant to other options by seemingly presenting only one or two ways to view a problem.
The current pandemic is often framed in terms of either 'save the economy' or 'lock everything down'. However, local governments have applied a range of public policy options.
How do we respond to this bias?
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ด๐ฟ๐ผ๐๐๐ต โ When presented with a problem and single solution, open discussions by digging deeper into why there is concern (stepping back widens the perspective).
๐ง๐ฒ๐ฎ๐บ ๐ด๐ฟ๐ผ๐๐๐ต โ Frame job responsibilities in terms of achieving company goals, not in terms of whether the person is doing the work the way you would expect.
๐ฃ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐ด๐ฟ๐ผ๐๐๐ต โ Apply this framework in resolving your own problems. When faced with a tough decision, avoid constraining yourself to one or two options.
If you want to prosper, recognize how biases can impact your behaviors and therefore your success.
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๐๐จ๐ฌ๐ฌ-๐๐ฏ๐๐ซ๐ฌ๐ข๐จ๐ง ๐๐ข๐๐ฌ (also known as Sunk Cost Bias) is that once a decision is made, we would rather stick with it due to an emotional investment.
You may see this framed in terms of resources e.g. โweโve already spent so much on the project, why stop now?โ
This bias makes us hesitant to change course once started or to terminate a long-time employee who performs poorly or cannot handle new responsibilities as the company grows.
How do we respond to this bias?
๐๐๐๐ถ๐ป๐ฒ๐๐ ๐ด๐ฟ๐ผ๐๐๐ต โ Evaluate programs on a go-forward basis, starting from zero. Continue based on the programโs metrics.
๐ง๐ฒ๐ฎ๐บ ๐ด๐ฟ๐ผ๐๐๐ต โ Recognize your temptation to hold on to poor performers. One's loyalty should be respected, but others are impacted too.
๐ฃ๐ฒ๐ฟ๐๐ผ๐ป๐ฎ๐น ๐ด๐ฟ๐ผ๐๐๐ต โ Recognize this bias will make you and others want to stay the course on bad decisions. Momentum may be for the wrong reasons.
If you want to prosper, recognize how biases can impact your behaviors and therefore your success.
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For a full list of cognitive biases, check here: https://en.wikipedia.org/wiki/List_of_cognitive_biases
Illustration by Elisa Riva who can be found here: https://www.instagram.com/elisa_riva/