Case ID: R0601K     Solution ID: 35077

Hidden Traps in Decision Making HBR Classic Case Solution

Abstract

Awful choices can frequently be followed back to the way the choices were made- - the choices were not obviously characterized, the correct data was not gathered, the expenses and advantages were not precisely weighed. In any case, now and then the blame falsehoods not in the basic leadership prepare but instead in the psyche of the chief: The way the human mind works can attack the decisions we make. In this article, initially distributed in 1998, John S. Hammond, Ralph L. Keeney, and Howard Raiffa analyze eight mental traps that can influence the way we settle on business choices. The mooring trap drives us to give unbalanced weight to the principal data we get. The present state of affairs trap inclinations us toward keeping up the present circumstance - notwithstanding when better options exist. The sunk-cost trap slants us to propagate the errors of the past. The affirming proof trap drives us to search out data supporting a current inclination and to rebate contradicting data. The surrounding trap happens when we misquote an issue, undermining the whole basic leadership handle. The carelessness trap makes us overestimate the exactness of our estimates. The reasonability trap drives us to be overcautious when we make appraises about questionable occasions. What's more, the recallability trap prompts us to give undue weight to later, emotional occasions. The most ideal approach to stay away from every one of the traps is mindfulness: cautioned is forearmed. In any case, officials can likewise find a way to shield themselves and their associations from these mental breaches to guarantee that their essential business choices are sound and solid.


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