In Risk Aversion, we explained how human biology works against us when facing tough decisions. We are hard-wired to eliminate uncertainty meaning that we tend avoid tough decisions or choose the traditional path because following this path feels safe. Taking even a small risk scares us. The consequences of succumbing to our biology are an […]
Archive | Ambiguity
Risk Aversion
By Eric Olive on April 23, 2015 in Ambiguity, Availability Bias, Bad Decsions, Risk Aversion, uncertainty
A Risk-Averse Business Climate “We’re afraid to take a chance,” replied the treasurer at a large, U.S.-based manufacturing firm. He was responding to my question about the biggest challenges he faced at work. Executives complain about a lack of fresh ideas from the front lines while employees lament the absence of bold leadership. “Where is […]
Why Biology and Decision Making Don’t Mix
On a cool January evening in Florida, NASA leaders held a teleconference to discuss a space shuttle launch scheduled for the next day. Engineer Roger Boisjoly argued that the low temperatures would likely erode the O-Rings, an essential part of the solid rocket boosters. If damaged, the O-Rings would fail, almost certainly leading to disaster. […]
Messy Minds and Mangled Communication
Mangled Communication: How and Why It Occurs “You know, that guy in that movie we saw last month! I can’t think of the actor’s name. I know you know it. Please tell me,” pleads her husband. “What are you talking about?” replies his spouse. “You know, that guy, in that movie…” “Honey, I have absolutely […]