Paramount to the success of any business is the ability to make strategic decisions. Bad decisions will result in financial loss; the worst decisions can be fatal, even for Goliath companies. The crux of overcoming bad decision-making is realizing what is behind those poor decisions in the first place. Understanding a pattern of deviation in judgment, known as cognitive bias, is an important first step in alleviating poor decision-making. The inqiri solution solves the issues generated by many of the common cognitive biases by removing the ability to form illogical inferences and approach a decision with a clear, concise, and systematic way.
According to an article written by “24/7 Wall St.” there are three categories to qualify the worst bad decisions: companies can be reckless, companies can be oblivious to shifts within their industries, or companies can lack a general foresight. Within all three of these categories was a company decision-maker who failed to correctly navigate out of a particular downfall.
That’s because, in order to make a decision, the mind has to curtail the effects of dozens of potential cognitive biases resulting in irrational mindsets. Cognitive biases can be the result of information-processing shortcuts; mental noise; the mind’s limited information processing capacity; emotional and moral motivations; and social influence. Two common biases are confirmation bias and availability bias. Confirmation bias occurs when the decision-maker tends to interpret information to confirm his or her preconceived notions. Availability bias involves a mental shortcut decision-makers arrive at after making judgments on the probability of events from thinking of examples. If a piece of information can be recalled, it must be important.
One important way the inqiri solution addresses these cognitive biases as well as others is removing the ability to form preconceived notions about a decision as well as quiet other mental noise. By selecting criteria, the decision-maker logically and systematically isolates the factors most important to his or her decision. Rating this criteria on a scale further eliminates the possibility for confirmation of preconceived notions.
The other important way the inqiri solution addresses cognitive biases is through the use of collective intelligence. Decision-makers using the inqiri tool for company decisions by harness the knowledge of an entire company, with the result being a complete analysis of how the group would approach the same decision.
A question recently asked about the inqiri solution: what is the shelf life of a good decision? The answer: inqiri is dynamic and fluid. The more people who use the inqiri solution for decisions, the better analytics that will result, and the more informed the decision-maker will be. With this ability to harness decision-making, companies will eliminate unnecessary cognitive bias and reduce the risk of making bad, or fatal, business decisions.