From Max Bazerman's "Judgement In Managerial Decision Making" STRATEGY 6: UNDERSTAND BIASES IN OTHERS "The nature of managerial life requires you to work closely with the decisions of others, reviewing recommendations, transforming recommendations into decisions, and...
Uncategorized
Strategy 5. Take an Outsider’s View
From Max Bazerman's "Judgement In Managerial Decision Making" Take an Outsider's View (from page 232) Kahneman and Lovallo (1993) explain this apparent contradiction by theorizing that we all have two perspectives on decision making: an insider view and an outsider...
Thinking Fast and Slow by Daniel Kahneman
Daniel Kahneman is considered one the greatest and most influential living psychologist in the world. He is known for his work on the psychology of judgement and decision making. In 2002, he won the Nobel Prize for his work on how Biases and Heuristics affect Economic...
Strategy 4: Reason Analogically
From Max Bazerman's "Judgement In Managerial Decision Making" Reason Analogically (from p. 232) Analogical reasoning, or the process of abstracting common lessons from two or more situations, turns out to be a remarkably simple debiasing approach (D. Gentner, G....
Strategy 3: Debias Your Judgement
From Max Bazerman's "Judgement In Managerial Decision Making" Debias Your Judgement: (from p. 226) Debiasing refers to a procedure for reducing or eliminating biases from the cognitive strategies of the decision maker. Fischhoff (1982) proposed four steps that...
Strategy 2: Acquire Expertise
From Max Bazerman's "Judgement In Managerial Decision Making" Acquire Expertise (P. 223) Many of the biases we have examined in this book were identified in experiments with student participants who were not rewarded for accurate performance and who were making...
Strategy 1: Use Decision-analysis Tools
From Max Bazerman's "Judgement in Managerial Decision Making" USE DECISION-ANALYSIS TOOLS (P. 218) "Because we do not make optimal decisions intuitively or automatically, when decision quality really matters, it makes sense to rely on procedures that can help direct...
Beware of Overconfidence, the Mother of all Biases!
From Max Bazerman's "Judgement in Managerial Decision Making" Beware of Overconfidence, the Mother of All Biases! "Overconfidence. We lead with an exploration of this bias for two reasons. First, it is one of the most potent and pervasive biases to which human...
How to lessen “Noise”
From Kahneman's "Noise" How to Lessen "Noise" Select better judges. Click here to see how."A radical application of this principle is the replacement of judgment with rules or algorithms. Algorithmic evaluation is guaranteed to eliminate noise—indeed, it is the only...
What kind of people make better judgements?
From Kahneman's "Noise" What Kind of People Make Better Judgements? "Judgments are both less noisy and less biased when those who make them are well trained, are more intelligent, and have the right cognitive style. In other words: good judgments depend on what you...