Confirmation Bias

What it is:

Confirmation bias, also called opinion bias, is the tendency to search for and interpret information in a way that confirms one's own beliefs or hypotheses. A series of experiments in the 1960s suggested that people are biased toward confirming or proving their existing beliefs. Later experiments reinforced these findings and showed that many people have a tendency to unconsciously produce positive reinforcement towards their existing beliefs or opinions while unconsciously disputing alternatives or ignoring them altogether, regardless of fact or reason.

We all have it:

Confirmation bias is a part of our human nature; nobody is immune from it. In the business world, I see it all the time, and I find that executives that have adapted to recognize confirmation bias become far more successful. I can’t stress enough how important it is that decision makers within a business are aware of this bias when faced with important decisions, as it can result in poor decision making.

Tips for avoiding Confirmation Bias

I suggest that the decision makers consider the following remedies:

1. While processing an important decision, list (in writing) as many potential positive and negative effects of the decision.

2. Ask others familiar with the situation to add to your positive/negative effect list

3. Share your list with others and ask for their opinion; do they agree with your decision? If not, be open to new ideas.

4. Try not to be defensive when listening to points of view which differ from yours. Listen attentively and carefully consider other viewpoints.

5. Identify any emotions that may be playing a part of your decision. This can be incredibly difficult, especially when dealing with employee or customer decisions.

6. Always consider whether your decision follows the company vision, even if it’s a hard or difficult decision to make.

A business owner who follows this advice when making important decisions will make better decisions on behalf of their business. Also, taking the time to listen to other viewpoints within the company (especially employees) will help create an inclusive team environment.

I am regularly discussing business life, strategies, and decisions with other entrepreneurs. Whether you facing an existing obstacle, or perhaps an ongoing concern, sometimes an outside viewpoint that otherwise may not have been considered may be the difference of where your company will be headed tomorrow. The approaches to making decisions and strategizing your business is almost unlimited. If you would like further ideas or guidance, feel free to contact Jim Schmitz for additional information by submitting this contact form. Jim will be in contact with you promptly.

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