IE Behavioral Economics Club’s Post

This post shares practices to thrive through change by building a relationship with our future self, managing our internal narrative, and conducting change audits to identify how we’ve grown. https://lnkd.in/gb2ktJqZ

Humans are naturally predisposed to some attitudes and behaviours which can close us off from good choices. 🤔 Have you ever experienced the weight of bias in decision-making and how it can contribute to a mediocrity cycle? Share your thoughts and experiences below.

How many mistakes are caused by assumptions? Far too many - Assumptions are silent disruptors – They can sabotage your work and relationships without you even realizing it. Assumptions fill in the gaps, but rarely with accuracy. And when we act on them, it costs us 🔴 Trust 🔴 Time 🔴 Results Consider this:

Have you ever made a decision only to realize later it was influenced by bias? You're not alone. In my latest blog post, I break down the six most common biases that shape our decision-making and offer practical tips for overcoming them. Whether you're in business, technology, or just want to improve your everyday choices, understanding these biases can make a huge difference. Read more and start making clearer, more objective decisions today. https://lnkd.in/eRajwKKa #biases #decisionmaking #selfawareness

The hindsight bias describes our tendency to look back at an unpredictable event and think it was easily predictable. It is also called the “knew-it-all-along” effect. this bias gets in the way by distorting the internal track-record we have of our past predictions. This can lead to overly confident future predictions that justify risky decisions with bad outcomes in both our personal and professional lives. More broadly, the hindsight bias prevents us from learning from our experiences. If we already feel that we knew something all along

Recency bias refers to the cognitive distortion where people give undue weight to recent events or experiences over more distant ones when making decisions or judgments. This can lead to skewed perceptions and decisions based on the most recent information, rather than a comprehensive view of all relevant data. For example, in investing, recency bias might cause individuals to overemphasize recent market trends and ignore long-term historical performance. Awareness of recency bias is crucial for making more balanced and informed decisions. Always Plan for unfavorable outcomes in the journey of Long term Wealth Creation!

Understanding how biases influence our decisions is essential for making better choices. In my blog post, I break down six key biases and how they impact both personal and professional decision-making. A must-read for those striving to improve their critical thinking! https://lnkd.in/eRajwKKa #DecisionMaking #BiasAwareness #CriticalThinking

Picture this: You're confident about acing a test, only to find out you barely passed. Welcome to the realm of overconfidence bias, where our belief in our abilities exceeds reality. This cognitive quirk leads us to overestimate our skills, knowledge, or judgments, often with detrimental consequences. For instance, investors may overestimate their ability to predict market trends, leading to risky financial decisions. Recognizing this bias is the first step to mitigating its impact, prompting us to seek feedback, consider alternative viewpoints, and approach decisions with a healthy dose of humility. After all, even the most confident among us can benefit from a reality check. There is recency bias in my post 😂😭🤪

Don't miss our final workshop of the year, CQ Your Bias! Through this event, you will learn how to: - Understand why bias matters - Recognize sources of explicit and implicit/unconscious bias - Identify systemic bias in our organizations/institutions - Practice culturally intelligent strategies to disrupt bias Sign up now: https://lnkd.in/gainKFRJ #personaldevelopment #CulturalIntelligence

Over the weekend, we saw a heinous act of violence at a rally for a former US president. Such vile acts have no place in this great country. My condolences go out to all those impacted by this tragic event. Last Saturday, as I watched social media channels for updates on what happened, it was interesting to see how quickly individuals on both sides of the political spectrum jumped to conclusions about what happened. Rather than suspending judgment and waiting for more details to emerge, many people immediately started speculating based on their desired or preferred narrative (“It was staged,” “It was Antifa,” etc.). In the days since the assassination attempt, we’ve learned a lot more about the shooter and what went wrong that day. Many more details will be forthcoming as the incident is further investigated. The late behavioral economist Daniel Kahneman (author of Thinking, Fast and Slow) noted that the human brain is more likely to jump to conclusions when information is scarce. In business, I equate this to taking the slide instead of the stairs. It’s much faster and less work to take the slide. You even get a small thrill from the ride as the narrative you form aligns with your existing beliefs or viewpoints. Conversely, gathering evidence (i.e., taking the stairs) is much more strenuous and time-consuming. Despite how tempting the slide may be, it’s important to “pause” before judging a situation and wait for ample data to be gathered before reaching a conclusion. This can be challenging in fast-paced business environments. However, we need to embrace and preach patience. Without a solid foundation of facts, speculation will lead to bad decisions and unfortunate mistakes. Yes, you may be unable to secure all the necessary facts to assess a situation fully. Nonetheless, I’d argue you’re still in a better position with limited data than no facts at all. How do you resist the urge to speculate and have the patience to seek more facts? How have you instilled this mindset in others? 🔽 🔽 🔽 🔽 🔽 Craving more of my data storytelling, analytics, and data culture content? Sign up for my brand new newsletter today: https://lnkd.in/gRNMYJQ7