Cognitive biases lead to typical business strategic analyses such as SWOT giving a false sense of comfort and security. The result? Appalling oversights that ruin profitable businesses and bring down high-flying careers.
Because we usually feel that everything is going to go according to plan, we don’t pay nearly enough attention to potential problems and fail to account for them in our plans. This problem stems from a dangerous judgment error called planning fallacy.
Avoiding Disastrous Decisions involves: 1) Deciding the decision criteria 2) Weighing importance of criteria 3) Grading your options using the criteria 4) Checking with your head and gut 5) Sticking to your choice
We intuitively overestimate how well others read us and how well we read others in negotiations, a dangerous judgment error called illusion of transparency. This mental blindspot leads to disastrous results in negotiations and other important communications.
To improve new member retention, associations need to avoid dangerous judgment errors. An example is the overconfidence bias, which causes association leaders to be excessively confident about what new members want.
Want to avoid the dangerous judgment errors that scholars in cognitive neuroscience and behavioral economics call cognitive biases in your work? This videocast and podcast will help you defeat all types of cognitive bias!
Get a free book sample at DisasterAvoidanceExperts.com/NeverGut. You can also get the book on links from that same website, or at a bookstore near you. I want you to take advantage of the strategies in this book to maximize your success and leave business disasters to your competition.
Consumers mostly make their shopping choices with their gut. As a result, they make many poor decisions. One of these decisions is to rely increasingly on online user reviews compared to recommendations from friends, even though user reviews are often misleading.
8-step decision-making process: 1) Identify need for decision; 2) Get relevant info; 3) Decide goals; 4) Develop criteria; 5) Generate a few viable options; 6) Weigh options; 7) Implement decision; 8) Revise implementation and decision as needed.
Effective leadership decision making on critical decisions involves: 1) Deciding the decision criteria; 2) Weighing importance of criteria; 3) Grading your options using the criteria; 4) Checking with your head and gut; 5) Sticking to your choice.