This chapter is from the book
This chapter is from the book
This chapter is from the book
Bias Creates Noise
A form of cognitive dissonance is present in organizations when information emerges that differs from what is currently believed or accepted as truth. A certain discomfort happens when two opposing ideas are at play in the decision-making process. This friction is amplified when our actions do not match our thoughts and beliefs.
Many types of bias can lead to this friction between data, ideas, and actions. Following are a few types of bias that you need to be aware of as you work to create object narratives driven by data:
Confirmation bias occurs when people seek information that confirms their preexisting beliefs or assumptions while ignoring information that could contradict what they want to believe is true.
Anchoring bias occurs when people over-rely on the first piece of information they receive when making decisions, regardless of its relevance, accuracy, or source. This can lead to decisions based on poor information, leading to poor outcomes and decisions.
Availability bias occurs when people give undue weight to information that is readily available to them rather than considering the full range of available information. This can lead to a failure to identify long-term trends and create a bias toward short-term decisions and issues.
Overconfidence bias occurs when people overestimate their abilities or the accuracy of their judgments. When leads are too reliant on their gut feeling or intuition instead of data and objective information, there is a risk bias against considering alternative viewpoints and information.
Groupthink occurs when group members prioritize group harmony and consensus over critical thinking and independent decision-making. Groupthink leads to organizations that avoid conflict at the expense of good decision-making.
Sunk cost fallacy occurs when people continue to invest resources in a project or product, even when it is clear that the costs outweigh the benefits because they have already invested significant time, money, or effort into it. This bias is a leading cause of waste in organizations because leaders cannot cut losses and move on from failing projects.
These kinds of biases influence our ability to make objective decisions. When these forms of bias settle into an office environment, they are quite hard to break. Be cautious presenting objective data in these circumstances because it may lead to an emotional reaction you are unprepared for. Slowly combat these biases through a conversation around outcome-driven goals and ways to objectively measure them.