When you are The Decider

QuizzicalGnome

I like to think that I base most of my workplace decisions on facts, not biases, but there’s no denying that we humans are imperfect. How might subconscious biases affect the decisions or judgments we make in workplace communication? You may be surprised.

A couple of months ago I wrote about The Halo Effect. This week, I read a terrific related article by Buffer’s Belle Beth Cooper. Citing numerous examples and experts, Ms. Cooper describes eight ways our minds can play tricks on us. I’ve added some workplace context to each of her points, but I’m greatly indebted to her for pulling together all of the research!

1. Confirmation bias happens to the best of us. Confirmation bias happens when we gravitate toward those who think like us. Ms. Cooper acknowledges the need for confirmation of our beliefs and acceptance by our peers, but there is a downside to this need. Gradually we tend to ignore or dismiss anything that doesn’t match up with our own beliefs. Considering the rate of change we deal with in most modern workplaces (technology, globalization, economics…), a confirmation bias can lead to significant problems down the road.

2. We confuse selection factors with results. This one is sort of a “chicken and the egg” situation. Ms. Cooper gives the example of a swimmer’s body: did the body become suited to swimming after training began, or was it already naturally suited to the sport because of broad shoulders, strong arms, etc.?

Or consider a high-performing university. Is it a result of great teaching or the careful selection of great students? Even if the answer is not completely clear, it’s important to understand how people (particularly advertisers) are prone to blurring the lines between causation and correlation. If you are marketing your company’s product, you may need to make the distinction at some point.

3. We fall for the sunk-cost fallacy. This one is tough to overcome. We are hard-wired to feel loss very strongly, and we can make some pretty poor decisions based on this feeling. Ms. Cooper cites the example of buying a ticket for a movie, only to belatedly realize that the movie is terrible. Should you stay to “get your money’s worth” or cut your losses and leave? Most of us would probably stay. But a more reasonable response might be to let go of the monetary investment–it’s over and done–and just move on.

In the workplace, we hang on to sub-standard software, hardware, processes, and many other things just to prove to ourselves that the investment was worthwhile. When do we make the decision to kiss that investment goodbye and cut our losses?

4. We fall for the gambler’s fallacy. If you play cards, this one is probably well-known to you. When you’ve lost, say, five hands in a row, you figure that the odds are in your favor for that sixth hand–surely this will be the winning hand–it has to be!

But probability doesn’t work that way. A coin toss has a 50/50 chance of landing on heads, no matter how many consecutive times it lands on tails, right? The lesson is that in both cards and the workplace, we can’t rely on luck or hope to turn things around. It usually involves a tough decision and some hard work.

5. We avoid cognitive dissonance by rationalizing our behaviors. This is a fancy way of talking about how we deal with situations that induce “buyer’s remorse.” To resolve the mental discomfort (cognitive dissonance) when we make a bad purchase, we either find a way to justify it (“I needed a new Porsche for my commute to work”), or censure ourselves for poor judgment (“I can’t be trusted with money.”) It’s important not to let one bad decision convince us (wrongly) that we’re bad decision-makers.

While it’s also important to avoid “analysis paralysis” in decision-making, it’s almost comforting to know that a certain amount of post-mortem rationalization will be in store when decisions don’t pan out; cut yourself a break when it happens.

6. We get fooled by the anchoring effect. As explained by Dan Ariely, we tend to make decisions by comparing the value of two or more options rather than making a decision based on pure value for investment. We do this all the time in the workplace. Whenever we choose the lowest bid simply because it is the lowest bid, the anchoring effect is at play. Lowest cost does not always equal the best value.

The takeaway: Calculate the value and cost of any option independently from its competitors. Then begin the process of choosing the winner.

And as Ms. Cooper notes, any marketer knows that the word “free” is a surefire hit. Even if what we’re getting for free is not so hot, we consumers can’t resist when the headline includes that magical word. If you are the marketer in your company, use this power wisely.

7. Memory and gut instinct can be wrong. It’s more than a little disheartening to realize that we don’t always remember things reliably. If you need to make decisions in the workplace, look at the facts and data to confirm what you think that you know. While gut instinct can be spot on, you’ll rest easier knowing that you can back up your decision with facts.

8. The conjunction fallacy leads to illogical thinking. This one has to do with the way preconceived notions and a love of detail affect our thinking. The conjunction fallacy was documented years ago by Israeli psychologists Daniel Kahneman and Amos Tversky. As stated in Michael Lewis’s fascinating Vanity Fair article about Daniel Kahneman,  “The human mind is so wedded to stereotypes and so distracted by vivid descriptions that it will seize upon them, even when they defy logic, rather than upon truly relevant facts.”

Relying on stereotypes that assume that people are always logical and uniform in their thinking is bound to cause problems. Popular culture offers stereotypes ranging computer programmers (nerdy, pudgy guys who play World of Warcraft) to uptight librarians (ask any modern librarian if he or she goes around “shushing” the patrons, and you’ll get an earful.)

Well, that’s where my mind is today. Let me know where your mind is in the comments below.

 

Photo credit: unknown

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