How do we make decisions? For business buyers, the trade-offs should be limited to risk, timing, and price. But human bias tends to overweight everything except the numbers. Leaving prices overlooked.
Business’ can be more objective about their decision making by avoiding three behavioural bias’.
Conservatism skews risk analysis. Seen most obviously in media reporting. The disbelief of Donald Trump’s successful campaign is an echo of Bush’s winning over Al Gore back in 2000. Conservatism bias causes businesses to keep doing the same thing. Rejecting new information that says to do something different.
Planning fallacy impacts timing. People tend to think that projects can be finished quicker than they can. It leads to either disappointment as projects miss targets or are incomplete.
In business, the bias impacts the best professionals. But by letting the numbers lead and recognising bias businesses can be more successful.