HINDSIGHT BIAS PSYCHOLOGY EXAMPLE FULL

A co-worker borrows it off the office kitchen drying rack and subsequently breaks it. It’s perfectly shaped for your hand, it’s got a pithy phrase printed on the front, and was given to you by your best friend.

Just like that IKEA dresser from your college dorm room you can’t part with, your sentimentality is getting in your way. The IKEA effect is our bias towards something we’ve built ourselves.

While the IKEA effect might seem chuckle-worthy and nothing more, it’s a real bias and can get in the way of your work. Decide your next steps without taking that into consideration. Remember that the time, money, and effort that’s already been invested was the cost of learning from a failure. You can avoid the sunk cost fallacy by rationally assessing whether or not a project is successful. What do you do: re-do the app in a hurry to meet the release deadline or go back to the team and scrap the project? You ask for feedback from multiple test groups who all give you feedback that the app is poorly designed, not useful or valuable, and difficult to use. Your team has been building a new app that’s due to be released in a few months. The sunk cost fallacy is our tendency to consider what we’ve already invested into a project as valuable information and part of our assessment for whether or not we should continue. No one likes thinking about what bad things may happen, but it’s important for a team to consider all outcomes before choosing a plan of action so that the team doesn’t take risks that won’t pay off. While optimists might think of naysayers as pessimists, when combined, they form a reality-based team that will weigh all the options and make fewer risky decisions. The easiest way to avoid optimism bias is to have a balanced, diverse team. Everyone leaves the meeting feeling excited and ready to get started.

But, if successful, the ideas will pay for themselves, with more to spare-consider it an investment with almost guaranteed rewards. The team comes up with some exciting, cutting-edge ideas that will use up the entire year’s budget by the end of Q2. You’re in a meeting discussing the marketing plan for the following year. The reason we’re starting with optimism bias is that, according to Quigley, becoming aware of your optimism bias can help you to look at the world more critically and realistically, which can help you to avoid many of the other biases on this list. In the workplace, it can cause us to overestimate our own success in comparison to others. The optimism bias is all about seeing the world as slightly more rosy than it is.

HINDSIGHT BIAS PSYCHOLOGY EXAMPLE FULL

We all know there are those who look at the world as glass half full and those that see it as glass half empty. I’ll start it off with a classic cognitive bias that most of us are already familiar with. Here are some cognitive biases they highlighted and how they can impact your team and projects.

Johnson is also the co-founder of PopNeuro, a neuromarketing blog that helps companies to better understand their customers and improve marketing through the use of neuroscience. Quigley, an author and an expert in product development, cost improvement, and organizational learning, and Matt Johnson, PhD, a professor of psychology and neuroscience at Hult International Business School in San Francisco. To better understand how our cognitive biases affect the decision-making process in the workplace, I talked with Jon M. But, what are those instincts? Understanding our cognitive biases can help us avoid making mistakes as managers and as we make decisions. Or, more likely, their instincts, honed from previous experience. To make all those decisions, managers have to rely on their gut. Managers are expected to make split-second decisions, day in and day out, tracking who is working on what project, discovering whether or not a team member has made enough progress, deciding where to have the office holiday party, what to order for staff lunch next Friday, and everything else in between.

Hindsight bias psychology example