Perceptive bias and decision making

22/04/2021 - 11:35

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We all impute, to a various extent, knowledge in ourselves. It is a reasonable thing to do. We perceive value in ourselves. It fosters self-worth and contributes to our validation of what we hold ourselves to be. In this article I write about how perception bias of self, impinges conceptual thought. Self-confidence is a vital ingredient to success in life, however when a person perceives more of himself that is even necessary or appropriate an overabundance of self-confidence becomes the enemy.

In a commercial sense, it all revolves around the reluctance to engage in independent due diligence as an aid to inform decision-making. The concept is all too often resisted vehemently by those that are reluctant to implement a team philosophy in the decision-making process. They perceive they know best and will go to great lengths to protect their fiefdom. They have a perceived bias towards their opinion and are unlikely to countenance that their view of looking at things may be incorrect. The extent of perceived bias permeates decision-making whether it be a Board of Directors of a publicly listed company, executive teams or a sole director of a small business.

A person may be very apt, and they generally are, to making decisions in relation to the doing or achieving a particular task, however that is not to say, and reluctantly my experience confirm same, they are apt to making strategic decisions in relation to commerciality in its various forms. They become single-minded perceiving the way forward only to find they have overlooked initial simple steps that silently cascades to frustrate outcomes.

In attempting to facilitate informed decisions the executive may draw upon a team made up of internal skills and expertise. As a matter of fact, research has shown internal skillsets bring perceived bias prejudicing impartiality*. A team structured facilitated in this way is minus the provocateur of thought. The promoter of thought that challenges the status quo of individual perceived bias. Independence of mind, when embraced, can represent the greatest force to produce balanced and reasoned decision making.

We are all possessed with wisdom but that is not to say we are possessed with all wisdom because perception of the latter is self-serving nonsense. In short, when next confronted by a strategic or operational decision, build the team with a member possessing impartial, unabashed and respectful independence of mind.

If you require further assistance regarding the above please contact Bill on 0447 733 372 or alternatively visit our website at www.fidesconsulting.com.au

*Dayeh, V., Morrison, B. (2020), The Effect of Perceived Competence and Competitive Environment on Team Decision-Making in the Hidden-Profile Paradigm, Dordrecht, Vol. 29. Iss. 6 (Dec 2000): 1181-1205

 

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