Cognitive Bias in Decision Making: Traps to Avoid and Tools to Support Successful Strategies

  • Authors: Diana Del Bel Belluz & Erik Schneider (Claridec)

  • Abstract:

  • The failure of corporate strategies has been linked to common weaknesses in organizational decision-making. Survey data shows that the following decision-making weaknesses are implicated in 20-60% of failed corporate strategies: underestimating risks, overestimating rewards, overestimating management’s ability to predict and control future events, and leaders taking too much or too little risk given the risk and rewards expected.

The poster will:

  • illustrate how cognitive biases seep into typical organizational decision processes to form decision traps
  • propose an alternative decision model that integrates lessons from decision sciences and risk management to target common decision traps
  • share powerful and practical strategies from the fields of decision, and sciences, neuroscience, and risk management that have been proven to de-bias decisions.

Key takeaways readers of the poster can expect to come away with are:

  1. a deeper understanding of the way the traditional decision model many organizations use is so prone to common cognitive biases that cause chaos in decision-making;
  2. an enhanced ability to detect and name common decision traps that they previously recognized intuitively but were unable to address because they lacked a language to communicate about these common traps with others in the decisions they play a role in, and
  3. a broader awareness of strategies they can apply immediately to enhance their organization’s decision-making.