De-Bias Strategic Decisions Improve ROI by 7%
The McKinsey Quarterly has a good discussion on The Case for Behavioral Strategy. They argue that taking steps to mitigate the effects of known cognitive biases in your strategic decision making process can improve the effectiveness of those decisions (ROI) by 7%.
They reference additional resources for how to take the biases out of meetings and an interactive tool for understanding biases in group decision-making. Be sure to check out: A Language to Discuss Biases. It offers an executive overview of the types of cognitive biases and their impacts. They offer 17 biases in 5 categories including:
* Action-oriented biases that drive us to take less thoughtful action than we should
* Interest biases that arise in the case of conflicting incentives
* Pattern recognition biases that lead us to see patterns when there are none
* Stability biases that create a tendency toward inertia in times of uncertainty
* Social biases that arise from the preference for harmony over conflict.
This is a great quick reference guide for a cognitive designer working with biases on any project.
