7 Ways for Leaders to Deal With Bias

Lead Change Blog

Psychologist Daniel Kahneman calls it “System 1” thinking, an “effortless, often unconscious process that infers and invents causes and intentions, neglects ambiguity, suppresses doubt, and uses similarity rather than probability.” Leadership Development Bias Daniel Kahneman

On Leadership, Feedback and the Fuel of Achievement

Linked 2 Leadership

“True intuitive expertise is learned from prolonged experience with good feedback on mistakes.” ~ Daniel Kahneman The experience of giving and receiving feedback at best is a wonderful and enlivening experience, and at its worst can de-motivate and drive wedges between managers and their reports.

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4 Secrets of Great Critical Thinkers

First Friday Book Synopsis

Bob's blog entries 4 Secrets of Great Critical Thinkers Daniel Kahneman Decision Sciences Decision Strategies International Decision Traps Inc. Here is an excerpt from an excellent article written by Paul J. Schoemaker and featured online at the Inc. magazine website. To read the complete article, check out other resources, and obtain deep-discount subscription information, please click here. * * * The best problem solvers see a complex problem through multiple lenses.

Superforecasting: A book review by Bob Morris

First Friday Book Synopsis

Bob's blog entries "Ten Commandments for Aspiring Superforecasters" "the robust beauty of simple linear models" Brooke Manville Crown Publishers Dan Gardner Dancing with Robots Daniel Kahneman Dr. Frank Stechon Expert Political Judgment: How Good Is It? Anshen Management and the Corporations McGraw-Hill MIT Urban Planning Report Nassim Nicholas Taleb Nate Silver Philip Tetlock Richard Murnane Herbert Simon “The Corporation [comma] Will it be Managed by Machines?”

You Don’t Need to Solve for 100%

Next Level Blog

Recently, for example, I found myself in a conversation with a management team that was feeling overwhelmed by all of the stuff that’s been added to their plate without anything coming off. In a presentation to the Conference Board last month, I shared conclusions from analyzing the data from over 1,800 manager and executive self assessments on leadership behaviors that are important for success at the next level.

What True Leaders Know About Emotional Intelligence

Lead Change Blog

True leaders at any level of the totem pole show their leadership primarily through managing their own emotions. True leaders show emotional intelligence by learning about the science-based patterns about how our emotions work and how to manage them.

Managing “Atmospherics” in Making Decisions

Harvard Business Review

Decision making Knowledge management One offshoot of the fast-advancing research in neuroscience is the growing body of literature on decision-making.

HBR’s 10 Must Reads On Making Smart Decisions: A book review by Bob Morris

First Friday Book Synopsis

HBR’s 10 Must Reads on Making Smart Decisions Various Contributors with Editors of Harvard Business Review Harvard Business Review Press (2013) Learn why bad decisions happen to good managers — and how to make better ones This is one in a series of volumes that anthologizes what the editors of the Harvard Business Review consider [.].

Managers Shouldn’t Fear Algorithm-Based Decision Making

Harvard Business Review

Tom Blaser and Linnea Gandhi, two managing directors at the consultancy The Greatest Good (TGG), are enthusiastic champions of algorithms. Their recent Harvard Business Review article, coauthored with Noble Prize–winning behavioral economist Daniel Kahneman and TGG’s CEO Andrew M. Managers can allow people to adjust an algorithm’s output, but there should be limits on either the magnitude or frequency of adjustments, as shown in recent research.

What To Ask Your Team Before Acting On Their Recommendation

Eric Jacobson

There's a great article in the June issue of the Harvard Business Review by Daniel Kahneman that includes a 12-question checklist that is designed to unearth cognitive biases of teams making recommendations that leaders take into consideration before they make their decisions. Kahneman is a senior scholar at the Woodrow Wilson School of Public and International Affairs at Princeton University, and a partner at The Greatest Good.

When Human Judgment Works Well, and When it Doesn’t

Harvard Business Review

A number of people noted that Nobel prize-winner Daniel Kahneman’s work, nicely summarized in his 2011 book Thinking Fast and Slow , influenced their thinking a great deal. My last post here, the descriptively-titled “Big Data’s Biggest Challenge?

Decision Bias

CO2

First, Arnott reviewed some of the most prominent taxonomies: Tversky and Kahneman (1974) Three General Purpose Heuristics. Isenberg (1984), How Senior Managers Think. by Gary Cohen. He who knows and knows that he knows, He is wise, follow him.

Is Facebook damaging your productivity?

Chartered Management Institute

Indeed I argued this very point in the latest issue of Professional Manager. After all, it's well known that when conducting difficult tasks, what Daniel Kahneman would call system 2 thinking, requires us to be free from distractions. Forging – where people integrate social media into their daily lives and it breaks out of a community manager/marketing dept responsibility. Lets get the caveat out of the way right from the start.

How Will You Be Remembered As A Leader?

Eric Jacobson

As reported in a recent issue of Harvard Business Review , research by the Nobel Prize winner Daniel Kahneman suggests that influence will be determinative. Nonprofit Leadership Management Leadership Eric Jacobson on Leadership and Management General Management Skills Leadership Skills

The Compound Effect

CEO Blog

There is another great thinker, Daniel Kahneman, who wrote an outstanding article in the NY times that challenges Blink. In the article he talks about the stock picker and fund managers and the people that manage them.

When Authenticity Does More Harm than Good

Harvard Business Review

Given management’s declared commitment to customer satisfaction and net promoter scores , I thought this a serious mistake; the move would undermine hard-won credibility and inhibit honest feedback from the firm’s smartest customers. Andrew Nguyen/HBR Staff.

The Hidden Indicators of a Failing Project

Harvard Business Review

Daniel Kahneman, in his book Thinking Fast and Slow , recounts a bit of a planning pickle he and his Israeli Ministry of Education colleagues encountered when estimating how long it would take to complete a high school textbook on judgment and decision making. Even more concerning was the fact that until Kahneman prompted his colleague, “there was no connection in his mind between his knowledge of the history of other teams and his forecast of our future.”

What Will Your Leadership Legacy Be?

Eric Jacobson

As reported in this month's Harvard Business Review , research by the Nobel Prize winner Daniel Kahneman suggests that influence will be determinative. Management Leadership General Management Skills Leadership Skills

12 Reads for 2012

LDRLB

A fantastic case for a better management perspective, mainly that little things like progress can affect big things like profitability. Perhaps the most under-rated book on evidence-based management. Thinking Fast and Slow by Daniel Kahneman. Our first release from LeaderLab gives you an outline of the significant research in leadership, management and organizational behavior while also giving you the warm feeling of supporting the site you love.

How to Improve Your Decision-Making Skills

Harvard Business Review

Daniel Kahneman, who won a Nobel Prize in economics for his work on cognitive biases, points out in an HBR article that a team that has fallen in love with its theories may unconsciously ignore or reject contradictory evidence, place too much weight on one piece of data, or make faulty comparisons to another business case that suits its bias. ” The first step, then, is to use a checklist to minimize decision biases, much like the one suggested by Kahneman.

The Hidden Danger of Being Risk-Averse

Harvard Business Review

As Nobel Prize-winning psychologist Daniel Kahneman has written, "For most people, the fear of losing $100 is more intense than the hope of gaining $150. Economy Managing uncertainty Risk management People are generally not all that happy about risk.

3 Ways to Make Less Biased Decisions

Harvard Business Review

Similar trends have been identified in virtually every aspect of the talent management system. It not only results in lack of equity in organizations, but in poor talent management practices. Talent management Race

Curiosity Is as Important as Intelligence

Harvard Business Review

but “Why are some people more able to manage complexity? In particular, there are three key psychological qualities that enhance our ability to manage complexity: . At face value, IQ tests seem quite abstract, mathematical, and disconnected from everyday life problems, yet they are a powerful tool to predict our ability to manage complexity. EQ relates to complexity management in three main ways. Managing yourself

Life is Luck — Here’s How to Plan a Career Around It

Harvard Business Review

Daniel Kahneman has claimed the following as his favorite equation: Success = talent + luck. Kahneman’s implication is that the difference between moderate and great success is mostly luck, not skill. As a product manager, you can run quick experiments to remove uncertainty from potential projects; as a middle manager, you can sponsor more than one project to increase the probability and magnitude of success on risky projects.

Reading List: What’s on yours?

CO2

Thinking, Fast and Slow by Daniel Kahneman. 12: The Elements of Great Managing by Rodd Wagner and James Harter (see my blog post on this topic here ). Reading List: What’s on yours? My reading list is usually longer than I have time to complete, but I always appreciate book recommendations. Today, I thought I’d share some of mine. I have been reading (or listening) to at least six business books per year for the last twenty years.

Instinct Can Beat Analytical Thinking

Harvard Business Review

This popular triumph of the “ heuristics and biases ” literature pioneered by psychologists Daniel Kahneman and Amos Tversky has made us aware of flaws that economics long glossed over, and led to interesting innovations in retirement planning and government policy. At times this belief has led the managing director of the Max Planck Institute for Human Development in Berlin into pretty fierce debates with his intellectual opponents.

Identifying the Biases Behind Your Bad Decisions

Harvard Business Review

By now the message from decades of decision-making research and recent popular books such as Daniel Kahneman’s Thinking, Fast and Slow should be clear: The irrational manner in which the human brain often works influences people’s decisions in ways that they and others around them fail to anticipate. Managers can use this knowledge to improve the effectiveness of a process or system inside their organizations. We commonly think of leaders as managers.

How to Regain the Lost Art of Reflection

Harvard Business Review

Brain science, popularized in Daniel Kahneman’s book , has shown that this type of “slow thinking” is negatively correlated with “fast thinking,” as might be employed when driving a car or solving a simple sum. But some CEOs have managed to resist these tendencies. ” Yana Kakar, Global Managing Partner of Dalberg, reserves 3 two-hour blocks of time for reflection each week. Managing yourself Leadership Strategic thinking Digital Article

What Will Your Leadership Legacy Be?

Eric Jacobson

As reported in a past issue of Harvard Business Review , research by the Nobel Prize winner Daniel Kahneman suggests that influence will be determinative. Eric Jacobson on Leadership and Management Leadership Leadership Legacy Leaving A Legacy

What I Didn’t Know About Becoming a CEO

Harvard Business Review

That doesn’t mean I was a novice in promoting an idea; as a young analyst at Fidelity Investments, I needed to convince the managers of the large mutual funds to buy my stock ideas. The company I co-founded is now ten years old.

How to Minimize Your Biases When Making Decisions

Harvard Business Review

Every day, senior managers are tasked with making very significant strategic decisions for their companies, which usually require support by teams of internal and external experts and a heavy dose of research. Decision making Risk management ERM

What Really Makes Customers Buy a Product

Harvard Business Review

On a cold English autumn evening recently, we three found ourselves together in the bar of our business school, Cranfield School of Management , along with some clients. Managers are instantly struck by the evident importance of this neglected touchpoint.

A Checklist for Making Faster, Better Decisions

Harvard Business Review

Managers make about three billion decisions each year, and almost all of them can be made better. The stakes for doing so are real: decisions are the most powerful tool managers have for getting things done. We need a new, scalable approach to managing decision performance.

Better Ways of Thinking About Risks

Harvard Business Review

As detailed in Daniel Kahneman's best-selling book, Thinking, Fast and Slow , it is only human to misjudge how much we know — and how much others know. Leadership Managing uncertainty Risk managementLeaders need to understand complex, uncertain dynamic environments well enough to anticipate how initiatives will fare. To that end, they must ensure that critical information is gathered and synthesized.

Staying Human in the Robot Age

Harvard Business Review

Drucker Forum 2015: Managing in the Digital Age. But space for “slow thinking,” in Daniel Kahneman’s term, has been systematically expunged from today’s high-pressure offices. One human agency is management, itself a technology in the broadest sense.

The CEO Who Led a Turnaround Wearing a Helmet

Harvard Business Review

Progress was stalled even though safety was emphasized in the charter and it was something he asked every senior manager about. Paul’s advice echoes Nobel Prize Winner Daniel Kahneman’s findings about the virtues of “thinking slow” – switching gears from a fast, automatic and mindless mode to a laborious, reasoned, deliberative, and conscious mode of thinking. Change management Organizational culture Risk management

Managerial Intuition Is a Harmful Myth

Harvard Business Review

I've been learning a lot from Danny Kahneman's great book Thinking Fast and Slow. Kahneman is the world's leading expert on human judgment and decision-making and the only non-economist to be awarded the Nobel Prize in Economics (he's a psychologist by training), so his insights and conclusions should be taken seriously. Kahneman's book lays out all these hard truths in great and unignorable detail, and I've written about them a bit ( here and here , for example).

Why Companies Are Betting Against Big Ideas

Harvard Business Review

This idea of prospect theory, developed by Tversky and Kahneman and reported in a classic 1979 article (for which the Nobel prize was awarded) demonstrated that individuals do not make decisions rationally by selecting options with the highest expected value, because they are risk-averse and 'losses loom larger than gains.'. Firms and their executives, like the subjects in the Tverskey and Kahneman experiments, have an aversion to losses, and a tendency to undervalue gains.

The Disciplined Pursuit of Less

Harvard Business Review

One particularly interesting study was conducted by Kahneman, Knetsch and Thaler (published here ) where consumption objects (e.g. Managing yourself Personal effectivenessWhy don't successful people and organizations automatically become very successful?

A Case for Group Risk-Taking

Harvard Business Review

There isn’t anyone successful at managing a mutual or hedge fund who avoids risk; we just need to face it carefully. When results are strong, the manager basks in the glow, prestige, and compensation attached to outperformance. When performance suffers, a situation experienced by anyone who has managed a fund for over ten years, you feel like an impostor and reach for the Pepto Bismal. Collaboration Decision making Risk management