How to Avoid Anchoring in Strategic Decision Making?


 
Anchoring Bias > Best Practices > How to Avoid Anchoring in Strategic Decision Making?

How to Avoid Anchoring in Strategic Decision Making?
Jos Nieland, Teacher, Netherlands, Premium Member
Recently, Taleb and Nobel prize-winning psychologist Daniel Kahneman together explored their differing approaches to unlocking the mysteries of decision making processes (in the New York Library). Taleb learned from Kahneman the idea of anchoring bias: when you ask someone the last four figures of his social security number and then how many dentists exist in Manhattan, there will be a correlation according to Kahneman.

People use available 'knowledge', information and forecasts (KIF) without any doubt. And the more complex the KIF presented, the riskier decisions people make! People are too 'gullible' (Editor: ~naive, unsuspecting) using KIF. Besides this naivety, sometimes it can also be very profitable for them to use complex KIF (think of bonuses a...Sign up
 

 
The Experience Factor in Strategic Decision Making..
Nhlanhla Sibisi, Student (University), Germany, Member
How is the 'experience factor' included in this (or our) decision making process? I strongly believe that experience plays a 'biased' role?
On th...Sign up
 

 
Role of Consciousness in Decision Making
srinivas, Lecturer, India, Member
I think if the decisions are based on consciousness then anchoring can be avoided.
There is ample number of quotes in the experiential sys...Sign up
 

 
Will Consciousness Help a Lot?
Jaap de Jonge, Editor, Netherlands
@Srinivas: Thanks for your contribution to this discussion. Perhaps making people conscious about the risks of Anchor...Sign up
 

 
Anchoring Bias and Influences
Ian van Jaarsveld, Strategy Consultant, South Africa, Member
@Jaap de Jonge (Editor): I think this comment is spot on, we are constantly building our own 'frames of reference' fr...Sign up
 

 
How People make Decisions
Marcel Wiedenbrugge, Consultant, Netherlands, Member
Kahneman's book 'Thinking, fast and slow' already explains...Sign up
 

 
Everything Anchors Bias; Consider 6TH
Tom Wilson, HR Consultant, United States, Premium Member
This issue is of the essence in all planning and decision making. To put it another way, what does not anchor bias, especially in the hothouse environ...Sign up
 

 
Decision Making - 6 Hats
Marcel Wiedenbrugge, Consultant, Netherlands, Member
I think 6 hats is certainly a nice model, but it does not tell me how to make decisions, it only structures the decision making process. Many business...Sign up
 

 
6TH Expands Decision Making
Venta Longman, Turnaround Manager, Jamaica, Member
KIF are definitely influencers in decision making but to the extent that we have to strategically sift these consciously or unconsciously in arriving ...Sign up
 

 
The WRAP Model of Decision-Making
Alan Kennedy
I think Mr. Wiedenbrugge makes an important observation. Decision-makers should understand concepts such as anchoring bias.
In their new book, Sign up
 

 
Understanding the Basic Power of Disagreement
J Braun, Entrepreneur, United States, Member
I work in a family organization, and it's a fair statement to say that my father and I are more than willing to share our opinions with each other.Sign up
 

 
Consciousness Based Decision Making
srinivas, Lecturer, India, Member
Hi @Jaap, it is true that information received first has a lot of influence since it makes an impression in the consc...Sign up
 

 
Experience in Decision Making
Makini, Business Consultant, Member
@Nhlanhla Sibisi: it's true that experience can guide decision making, but experience ALONE cannot help much.
Al...Sign up
 

 
Preparing for Downsides/ Sideeffects After the Decision
Jos Nieland, Teacher, Netherlands, Premium Member
De Bono's 6 Hats, Kahneman's book and Heath and Sibony's WRAP framework all give very important tools to decrease anchoring and make better decisions....Sign up
 

 
Constantly Operating Contingencies
Tom Wilson, HR Consultant, United States, Premium Member
@Makini: I agree completely. In fact, the more experience one has, the more one becomes aware of the shadow that fal...Sign up
 

 
Experience, Imagination, Creativity and Adaptation in Decision Making
Venta Longman, Turnaround Manager, Jamaica, Member
Experience is one of several variables in decision making based on choice. It contributes to the element of useful relations necessary for decision ma...Sign up
 

 
AB Can Be Avoided..
Jim Carwardine, Business Consultant, Canada, Member
Many decisions are made in a Problem-Solving (PS) mode or mindset, allowing AB to invade that mindset.
PS is based in a structural conflict where...Sign up
 

 
Creating a Mindset Begins with AB
Tom Wilson, HR Consultant, United States, Premium Member
@Jim Carwardine: All of these formulas for decision making tend to be diagnostic, which is to say, they benefit from...Sign up
 

 
Decision Making Viz-a-Viz Bias
Oluyemi Anjorin, HR Consultant, Nigeria, Member
Decision making requires critical thinking and critically observing facts. Critical/creative thinking is important in decision making. You may have th...Sign up
 

 
Objectivity and Self Inquiry
Damodaram Kuppuswami, Consultant, India, Member
One possible approach could be enhancing objectivity progressively. A major obstacle is being judgemental guided by one's own KIF. There must be mecha...Sign up
 

 
Anchoring Bias Can Be Avoided..
Jim Carwardine, Business Consultant, Canada, Member
@Tom Wilson: Point taken, Tom... My shorthand was a little too brief... Perspective is a good antidote, assuming as ...Sign up
 

 
Avoiding Anchoring in Strategic Decision Making
Mucherwa Oliver Ngoni, HR Consultant, Zimbabwe, Member
@Nhlanhla Sibisi: but how do you define 'experience factor'? Is it not the "knowledge", and "information" once again...Sign up
 

 
AB is a Characteristic of the Self-organizing Mind
Tom Wilson, HR Consultant, United States, Premium Member
@Mucherwa Oliver Ngoni: You have probably seen that pitcher-profile sketch that is used to demonstrate the figure-fi...Sign up
 

 
Irrational Elements Can Educated
srinivas, Lecturer, India, Member
@Tom Wilson: The irrational elements of the mind can be educated. I think it is the highest form of education that w...Sign up
 

 
The Unconscious Can Be Enriched Through Experiential Training
Tom Wilson, HR Consultant, United States, Premium Member
@Srinivas: I agree completely. As you say, that is the great virtue of experiential learning models. Role Play, in p...Sign up
 

 
Role of Good Association
srinivas, Lecturer, India, Member
@Tom Wilson: Does good association help with disassociation of an impression (data) in our consciousness? I think it...Sign up
 

 
Dissociation and Good Association
Tom Wilson, HR Consultant, United States, Premium Member
@Srinivas: This is getting a bit beyond my pay grade, but, yes, if you can construct preferential associations with ...Sign up
 

 
Decision Making, Age Contribute to Biasness
shashinhale Wanna, Project Manager, Tanzania, Member
I'm sorry to say that "the older people become, the more one sided they become". This brings bias in decision making. Many people of age prefer to say...Sign up
 

 
How do You Prevent Anchoring Bias (AB) from Occurring When Making Strategic Decisions in your Organization and if You Can`t How do You Counter These Severe Side Effects?
Jorge Garrido, Director, Mexico, Member
A lot of executives never played in a team when they were young. They spent most of their time in libraries alone or they were the owners and they wer...Sign up
 

 
Anchored Bias or Anchoring Bias. How to Avoid it?
Satya Nistala, India, Member
The question is: Are we anchored and thus make biased decisions or are we biased and therefore we anchor ourselves to a position?
IMO: Decision m...Sign up
 

 
Action as Meditation
Tom Wilson, HR Consultant, United States, Premium Member
@Satya Nistala: While I agree with you in the main, there is a bias towards action in Christianity. The Lord's Praye...Sign up
 

 
The Effect of Yoga on Avoiding Anchoring Bias
srinivas, Lecturer, India, Member
There is a knowledge body which is called kriya yoga. Can anchoring be avoided using this technique while performing day to day actions?...Sign up
 

     
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