A reminder about cognitive bias
What if the biggest threat to your business isn’t “out there”?
What if your greatest danger is internal? Like, in your head? A cognitive bias (or two) you don’t even realize you've got?
Here’s the truth: We pride ourselves on being rational and unbiased.
Unfortunately, we’re NOT objective. We routinely fall into wonky ways of thinking.
As Anais Nin famously put it, "We see things not as they are, but as we are."
In short, we're biased. All of us. And our biases, unconfronted, can wreak havoc on our lives and relationships.
Biases can also hurt our businesses. Here are ten common ones to look for:
Confirmation Bias is when we cherry-pick facts that support our desires and ignore data that doesn’t align with our wishes or goals.
Community Bias traps us in an echo chamber with like-minded people who reinforce our assumptions (and rarely challenge us to think in new ways).
Competency Bias gets us thinking, “I got this. I don’t need any help!” So, we stop seeking out mentors or addressing skill gaps that could potentially sink us.
Complexity Bias makes us susceptible to overly simplistic solutions (e.g., “If I only had a prettier website, I'd attract more customers”). It makes us reluctant to wrestle with deeper issues requiring more nuanced thought.
Comfort Bias gets us to put off difficult but much-needed changes, like pivoting our business model or letting go of an underperforming employee.
Cash Bias prompts us to say a knee-jerk “NO!” to any opportunity, no matter how promising, if it requires a hefty, upfront investment.
Complementarity Bias makes us more receptive to advice from people we like (and who are nice to us) than to those who dare to speak hard truth.
Contact Bias is when we don't interact with certain customer segments...and miss out on new market opportunities.
Confidence Bias can get us to fall for vendors, job applicants, and advisors who ooze confidence (but aren't as competent as they seem)
Conspiracy Bias is is when we look for a villain to blame rather than examine our own strategic missteps.
Should our goal be to eradicate these biases?
Nah. That’s futile. They'll always be lurking in the shadows.
Instead, we need to create systems that shine light on these insidious ways of thinking.
That might mean a diverse advisory board, regular customer feedback loops, a data-driven decision framework, or deliberate exposure to new and different viewpoints
The bottom line?
Cognitive bias, of any kind, is bad for your business!
Success takes more than good products and service. You first need to see things as they are, not as you wish they were.
P.S. Just curious…how many of these 10 biases do you see in yourself?
(If it makes you feel any better, depending on the day, I’m guilty of ALL of them!)