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 | Decisions
Two Steps to Better Design Decisions
By Eric Olive on July 9, 2015 in Availability Bias, Bias, Confirmation Bias, Decisions, Design, Design Decisions
While the human brain is our greatest design resource, it also erects barriers in the form of cognitive bias, or brain quirks. Sadly, such brain quirks are legion and include the optimism, overconfidence, availability, and confirmation biases. The confirmation bias presents an especially difficult challenge because it causes us to seek evidence that supports our […]
How to Establish a More Transparent Decision-Making Process
Decision Making: A Flawed Approach “Our say is so far removed from our do!” lamented an executive earlier this spring. In other words, executives were making decisions that violated the company’s values. Equally problematic was the decision-making process itself. In a culture where consensus supposedly reigned supreme, company leaders followed a nearly authoritarian decision-making model. […]
Intuitive Decision Process
In Intuitive Decision Making we referred to Gary Klein’s definition of intuition: “The way we translate our experience into action. Our experience lets us recognize what is going on (making judgments) and how to react (making decisions).” The next step is to think carefully about when intuitive decision making works well, and when it poses […]
Intuitive Decision Making
Gut check,” “I just knew…,” “A woman’s intuition,” It’s no accident that these expressions are part of the daily vernacular. In life and in business, many of us believe firmly in the power of our intuition. Myth? Fact? Somewhere in between? Can we rely on intuition when making important business decisions? One reason the answer […]
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. […]
Dicey Decisions—Why Good People Make Bad Choices
The Bitter Scent of a Floral Fiasco Cards and flowers, a match made in heaven, right? Hallmark executives certainly thought so when they lighted upon the idea of selling flowers in their card shops. What could be better? Hallmark already had a distribution channel with stores throughout the U.S. Customers loved Hallmark cards, and who […]
Perilous Predictions: Why You Might Be Happier in Topeka than Hawaii
“Lottery Loser!” A term so common we’ve heard it on the formerly popular TV show “House.” A lottery loser is someone who wins a great deal of money only to end up miserable and financially worse off than before winning the money. But, wait, this can’t be! While we know that money doesn’t buy happiness, […]
Decision Drivers: What Really Influences Your Decisions And Why You Should Care
Decision Drivers We are often unaware of significant and unconscious decision drivers. The five posts summarized below offer insight into the mysterious workings of the human brain and what truly drives our decisions. Are Human Decisions Eminently Rational, Hopelessly Irrational, or Neither? In this intriguing post, influence guru Robert Cialdini outlines the traditional poles in […]
Cognitive Biases—The Confirmation Bias
The confirmation bias refers to the tendency to favor information that reinforces our existing beliefs. As Andrew McVagh cleverly puts it in his post about the confirmation bias, “Did you know your brain is a yes-man, telling you only what you want to hear? He’s right, and we witness this bias in the current, highly […]