Strategic planning is the process of creating a mission, objectives and then creating and implementing strategies to fulfill the mission and work toward objectives. Business managers often use a variety of management tools and techniques to aid in making strategic planning decisions.
We are overconfident in our ability to influence events. We disregard the impact of chance occurrences. How to spot it: Speaking with certainty and confidence is rewarded.
Making plans as if the environment was static and unchanging. How to overcome it: Map out the risks, uncertainties, and unknowns.
Consider a variety of outcomes: While still in the decision-making phase, embrace uncertainty and encourage dissent. Set up checkpoints and success metrics up-front so you can course correct when you're off track.
Self-Interest Bias Incentives that reward the wrong behavior; conflicting incentives. Silo thinking—not considering the big picture or other stakeholders. People are motivated to obtain a favorable outcome for themselves or their unit, at the expense of the organization as a whole. Different people view the same company goals differently because of their unique role or expertise.
Conflict around the correct course of action, though intentions and the desired end result may be similar. Competing interests will always exist—discuss them explicitly and openly. Define the criteria for decision-making up front and stick to it—this lessens the influence of creative debating later on.
Build a diverse decision-making team so the interests of one group do not dominate the process. We give more weight to recent events. We pay more attention to highly memorable events.
Confirmation bias — once we have formulated a theory, we pay more attention to items that support it and ignore evidence that disproves it. Analogies, comparisons, or examples are used to justify a decision. A compelling story is told in an attempt to persuade and influence. Drawing a comparison to a situation that is not quite analogous.
Look at the facts and evidence from a different perspective. Brainstorm alternative explanations and theories. Encourage out-of-the-box thinking, reframing, role reversal. Social Harmony Bias The influence of office politics.
We support our own group; we support our leader. Groupthink—we strive to reach consensus. Expectation to conform ; reward for agreement and support.
Everyone readily agrees; little to no conflict. People talk about what the leader thinks and wants rather than discussing facts and alternatives. The leader speaks first and makes their views and opinions known. There is a perception that the leader is unlikely to change their mind and not open to debate and suggestions.
Build a diverse decision-making team: Foster an environment of trust.
Make sure conflict is task-oriented. Disagree with ideas and course of action, not people. Leaders need to see themselves not as the decision-makers, but as the facilitators of a decision-making process.
Stability Bias What it is: We are comfortable with the status quo, especially when there is no pressure to change.The foundation of ethical decision-making involves choice and balance; it is a guide to discard bad choices in favor of good ones.
Therefore, in making ethical decisions, one of the first questions to consider is 'what a reasonable man would do in this situation?'For tougher decisions, advisors may find three rules of management helpful.
5 Biases in Decision Making - Part 2.
This post is part of a 3-Part series on the topic of Biases in Decision Making. change management Collaboration communication Decision Making team bias.
Subscribe to Quick Base Blog. Thank you! The information has been submitted successfully. In my experience decision-making can also be based on biases, past experiences, peer pressure, needs and even wants. Recently, I had to make a decision about a new job opportunity.
My employer offered me the opportunity to moving into a new job with new tasks and responsibilities. Organizational culture and leadership style together determine the process of decision making in any nationwidesecretarial.com may use a consensus-based approach, while others depend on a manager or management group to make all major decisions for the company.
DECISION-MAKING Washington Advisory Opinion (following policy adopted by presiding judge about continuances in criminal cases) (6/03) Washington Advisory Opinion (complying with appellate court decision) (6/03) COURT MANAGEMENT Alabama Advisory Opinion (bar association paying salary of judge’s research.
1. General Information. The course can be selected to complete the unit “ACM Advanced Accounting on specific topics I” or ACM15 “Electives on Accounting I”. 6 Credit points will be .