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The Role of Cognitive Biases in Decision-Making ðŸ§
Decision-making, it’s the very heart of strategic thinking.
But, did you know your brain might be subtly influencing your decisions? Cognitive biases!
These are systematic errors in our thinking that can sway our decisions and judgements. They can be sneaky and pervasive, meddling with our strategic choices in ways we might not even realise.
Take the ‘confirmation bias’ for instance. This can lead us to favour information that confirms our existing beliefs and ignores contradictory evidence.
Imagine you’re a startup founder, and you’re certain that your product will do great in Tier-1 cities like Delhi, Mumbai, Bengaluru, Chennai or Hyderabad. You might unintentionally overlook data suggesting its potential in Tier-2 or Tier-3 cities because of this bias. While it might provide temporary comfort/results, this can hinder innovative thinking and lead to strategic missteps with long-term consequences.
Overcoming cognitive biases isn’t a walk in the park, but being aware of them is the first step. Start by questioning your assumptions, seeking diverse viewpoints, and fostering a culture of open dialogue within your team.
Will add more insights that can help in making more informed strategic decisions, getting back to writing online!
