The world is very confusing, and we end up only seeing a tiny sliver of it, but we need to make some sense of it in order to survive. Once the reduced stream of information comes in, we connect the dots, fill in the gaps with stuff we already think we know, and update our mental models of the world.
It hasn't gained any traction. And yet, you're still putting time, money, and sweat into the failing proposition. We've already invested so much. And although cognitive biases exist only in our heads, they affect everything around us, including our work.
What Is Cognitive Bias? Cognitive biases are common thinking errors that hinder our rational decision-making. We don't always see things as they are. We don't simply glean information through the senses and act on it; instead, our minds give that info their own spin, which can sometimes be deceptive.
The inner experience is not always Cognitive bias perfect sync with what's going on in the outer world. The concept of cognitive bias was introduced in through the Cognitive bias of researchers Amos Tversky and Daniel Kahneman and was later popularized in the bestseller Thinking, Fast and Slow.
Scientists such as Richard E. Nisbett and Nassim Nicholas Taleb have expanded upon it, and authors such as David McRaney have helped bring it into the mainstream. As humans, we didn't evolve to make logical decisions—we evolved to survive. And cognitive biases may have helped serve that purpose.
But Cognitive bias modern world presents many scenarios that demand more rational calculations, and we're often left frustrated, wondering why our best thinking doesn't get us the results we want. The bad news is that we can't get rid of cognitive biases.
The better we understand them, the more often we can subvert them—or even leverage them for our own benefit. The first step toward overcoming cognitive biases is to acknowledge that we have them. The most sophisticated thinkers fall prey to their own cognitive biases, so at least we're in good company.
The second step is to take advantage of tools that can help balance out our own irrational tendencies. Nothing cools a hot head like an ice-cold algorithm.
With that, here are eight common cognitive biases and some tools that can help you overcome them—or use them to your professional advantage. Optimism Bias Optimism bias is our tendency to overestimate the odds of our own success compared to other people's.
Think of the Silicon Valley entrepreneur who's sure that their new startup will succeed in a crowded market in which the vast majority of competitors fail.
It makes sense that we think this way. Evolution generally favors optimists: Those who take risks and believe they can succeed are more likely to pass their sunny genes on to the next generation. And entrepreneurs and leaders are required to bet against the odds, avoid analysis paralysisand drive innovation.
So when the stakes are high—which they usually are in business—optimism bias is bound to be part of the game. But optimism is strong medicine, and a little goes a long way. Overly optimistic predictions can be dangerous, leading us to waste time and resources pursuing unrealistic goals.
In the real world of business, things don't always work out for the best, and it serves us well to know when conditions are not on our side. How to control your optimism bias To fight the potentially adverse effects of optimism bias, be skeptical of your own rosy expectations for your work.
Assume projects will be more difficult and more expensive than you initially think they will. Don't trust your good ideas to manifest through positive thinking—be ready to fight for them. But most importantly, trust the numbers. Numbers are firm but fair, and getting intimate with your business's cash flow can help you make more rational decisions.
PlanGuru is the most robust and detailed financial forecasting software for businesses. It can help you separate daydreams from possibilities and get a realistic picture of what sacrifices need to be made.
Or make use of a broader business dashboardwhich will give you a big-picture look at how your company is doing according to a variety of metrics. Negativity Bias Negativity bias is the tendency to change our thought processes and behaviors more because of negative things than we do because of neutral or positive things.
Unfortunately, negativity bias doesn't cancel out the optimism bias: Various cognitive biases work in concert even when they're inconsistent. Just as we're primed to assume things will fare better for us than they will for others, we also tend to dwell on the negative when it doesn't go that way.Cognitive biases influence how we think and can lead to errors in decisions and judgments.
Learn the common ones, how they work, and their impact. I’ve spent many years referencing Wikipedia’s list of cognitive biases whenever I have a hunch that a certain type of thinking is an official bias but I .
rows · In psychology and cognitive science, a memory bias is a cognitive bias that either enhances or impairs the recall of a memory (either the chances that the memory will be recalled at all, or the amount of time it takes for it to be recalled, or both), or that alters the content of a reported memory.
There are many types of memory bias, including.
|Every Single Cognitive Bias in One Infographic||The inclination to see past events as being more predictable than they actually were; also called the "I-knew-it-all-along" effect.|
|Cognitive Bias: How Your Mind Plays Tricks on You and How to Overcome That at Work||These biases can lead to us extrapolating information from the wrong sources, seeking to confirm existing beliefs, or failing to remember events the way they actually happened!|
|List of cognitive biases - Wikipedia||Corinne Bernstein Share this item with your network: Cognitive bias is a limitation in objective thinking that is caused by the tendency for the human brain to perceive information through a filter of personal experience and preferences.|
You’ve always considered yourself a sound decision-maker. From that heavily researched car that you drove to work this morning to the carefully prepared meal you’ll cook up for dinner this. Cognitive biases are errors in thinking that influence how we make decisions.
Learn more about cognitive bias from examples, and test your knowledge with a quiz.
Here, we've rounded up the most common biases that screw up our decision-making. Samantha Lee/Business Insider. Gus Lubin and Drake Baer contributed to this article.