Avoid 3 Common Decision-traps

			
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			              Decision-making and Valuation > Best Practices > Avoid 3 Common Decision-traps
			            
			              Avoid 3 Common Decision-traps
Asim, Accountant, United Arab Emirates, Member
			                
			                Making decisions is your most critical job as a leader. The more high-stakes a decision is, the more likely you are to get stuck. Here's how to avoid three of the most common traps:

1. Anchoring Bias. Many people give disproportionate weight to the first information they receive. Be sure to pursue other lines of thinking, even if the first one seems right.

2. Status Quo Bias. Change can be unsettling and it's easy to favor alternatives that keep things the same. Ask yourself if the status quo truly serves your objectives and downplay the urge to stay in your current state.

3. Confirming Evidence Bias. If you find that new information continually validates your existing point of view, ask a respected colleague to argue against your perspective. Also try to avoid working with people who always agree with you (HBR).
			            
			                  			Use Six Thinking Hats to Avoid Cognitive Bias

															Gary Wong, Consultant, Canada, Premium Member
				                  		
Take a look at the Six Thinking Hats forum where members are discussing how using a hat sequence can avoid decision traps.
			                  		
			                  			Any Other Errors in Decision Making?

															James Allam Ejidio, Student (Other), Kenya, Member
				                  		
Are there anymore causes of decision-making errors in an organizations besides those already mentioned?
			                  		
			                  			Decision-making Errors

															Gary Wong, Consultant, Canada, Premium Member
				                  		
James: Advances in the cognitive sciences have revealed numerous decision-making errors that humans are prone to make. Have a look at the ones posted on the 12manage Cognitive Bias page.

What this means is that methods that reduce decision-making to scoring a rating system with weighted criteria are not as neutral and objective as one would think. The selecting of criteria and scores will be tainted with cognitive biases.

For example, if the first alternative you see is a good one, you will rate it 4 or 5 out of 5. All other alternatives should be scored independently but the mind will score them relative to the first one. This is called anchoring bias.
			                  		
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