How to Overcome Judgement Noise

Cognitive Bias
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Chloe Xu
Director, Australia
As human beings, our judgements can be strongly influenced by irrelevant factors. Even professionals with rich experience on the job treat identical cases quite differently at different time points, according to studies. Kahneman et al. (2016) termed the chance of such variability as (judgement) noise, which has been identified by their study as one of the most prevalent but overlooked problems that harm companies' bottom line. WHAT IS NOISE? Like bias, noise (aka random error, random variation, variability) is a type of error in judgement and decision-making. However, biases cluster together while noises widely scatter when both are compared with what the accurate one is (variability). An increase in noise always harms accuracy when there is no bias in system. When bias is presented, increasing noise may actually cause a lucky hit. Of course, no organization would put its trust in luck, therefore noise is always undesirable. HOW TO MEASURE NOISE Unlike bias, noise is no (...) Read more? Sign up for free


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