Recognizing Obstacles

We tend to subconsciously decide what to do before figuring out why we want to do it.


Decision making is made difficult by common, often unconscious, obstacles that frequently inhibit a decision maker’s ability to determine the optimal choice. Such obstacles include cognitive biases and unproductive group dynamics. While it is almost impossible to eliminate these obstacles, recognizing them in yourself and in the members of your group will help you make more objective decisions.

COGNITIVE BIAS – A system of error introduced into sampling or testing by selecting or encouraging one outcome or answer over others.

Here are some common examples of cognitive biases—distortions or preconceived notions—that people encounter when making decisions.

Bias toward the familiar and toward past successes. We tend to base our decisions on events and information that are familiar to us. For example, Sam, a brand manager, remembers his launch of a new product in a territory three years ago; it was his first big marketing success. He also vaguely remembers that a similar launch strategy was unsuccessful in number of other territories. Because his memories of the successful launch are so vivid, he emphasizes this experience and discounts the evidences of the unsuccessful launches elsewhere. When Sam tries to extend a new brand into another market, his efforts fail. While the strategy used for the first launch may have been a good starting point, his reliance on prior success led to incorrect assumptions about other markets.

Bias toward accepting assumptions at face value. We are generally overconfident in our assumptions and therefore generate too few alternatives. For example Ben purchases a software package offered by the larges vendor without collecting competitive bids. He assumes that the because the package works for other users in the same industry, it will work for him. He fails to investigate other software packages that might better meet his needs.

Bias toward the status quo. We have a tendency to resist major deviations from the status quo. For example, managers at BigCo are familiar with how to use a particular computer program and resist using an alternative, event though their program is outdated. Their resistance is driven more by their reluctance to learn something new than by the quality of the system itself.

Bias toward confirming our opinion. Once we form an opinion, we typically seek out information that supports our viewpoint and ignore the facts that may challenge it. For example, Dinah searches the Internet to find data supporting her preference for focus groups in market research, but she does not stop to read information that supports other approaches.

COGNITIVE BIAS – A system of error introduced into sampling or testing by selecting or encouraging one outcome or answer over others.

How do you prevent these biases from adversely affecting your decision-making ability?

ACTION POINT: Recognize cognitive bias and ensure that contrarian, diverse voices get introduced into the discussion.