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As an engineering leader, making decisions is a key part of your role. However, even the best leaders can fall into traps known as decision-making biases.
These biases can cloud your judgment and lead to poor choices.
Therefore, it is important to understanding common biases and how to overcome them for making better decisions.
Let us discuss the common biases and mitigation techniques next:
Common Biases and How to Mitigate Them
1. Confirmation Bias
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What It Is: Confirmation bias happens when you focus on information that supports your existing beliefs and ignore anything that contradicts them.
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How to Mitigate It: Actively seek out information that challenges your assumptions. Encourage your team to present different viewpoints, and consider all evidence before making a decision.
2. Anchoring Bias
- What It Is: Anchoring bias occurs when you rely too heavily on the first piece of information you receive (the "anchor") and use it as the basis for all future decisions, even if it’s not the most relevant.
- How to Mitigate It: Be aware of the first information you receive, but make a point to gather more data and perspectives before settling on a decision. Question the relevance of the anchor to ensure it’s not unduly influencing your judgment.
3. Overconfidence Bias
- What It Is: Overconfidence bias is when you have too much faith in your own knowledge, abilities, or predictions, leading you to underestimate risks or overlook important details.
- How to Mitigate It: Regularly check your assumptions and predictions against real outcomes. Encourage feedback from others, and be open to admitting when you might not have all the answers.
4. Availability Bias
- What It Is: Availability bias occurs when you base your decisions on information that is most easily recalled or recent, rather than on all relevant information.
- How to Mitigate It: Take the time to gather comprehensive data, not just what’s top of mind. Ensure that your decisions are based on a complete set of facts, rather than just what’s easily available.
5. Herd Mentality Bias
- What It Is: Herd mentality bias happens when you follow what others are doing or thinking, rather than making your own independent decisions.
- How to Mitigate It: Encourage independent thinking within your team. Make decisions based on your own analysis and the specific needs of your project, rather than simply following the crowd.
6. Status Quo Bias
- What It Is: Status quo bias is the tendency to prefer things to stay the same rather than change, even when change might lead to better outcomes.
- How to Mitigate It: Regularly question whether the current way of doing things is the best way. Be open to exploring new options and making changes when necessary, rather than sticking to the status quo out of habit.
7. Sunk Cost Fallacy
- What It Is: The sunk cost fallacy is when you continue with a decision because you’ve already invested time, money, or resources, even if it’s not the best option anymore.
- How to Mitigate It: Focus on future benefits rather than past investments. If new information suggests a change of direction is needed, don’t be afraid to cut your losses and move on.
How to Overcome Biases
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Awareness: The first step in overcoming biases is to be aware of them. Recognize when you might be falling into one of these traps and take a step back to reassess.
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Seek Diverse Perspectives: Involve others in the decision-making process. Different perspectives can help you see biases you might not notice on your own.
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Slow Down: Don’t rush decisions. Take your time to gather all the information, weigh different options, and consider potential biases.
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Use Decision-Making Frameworks: As discussed in earlier lessons, using structured frameworks can help reduce the influence of biases by focusing on data and logical analysis.
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