Overcoming Cognitive Bias for Better Business Decision-Making

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.[1] 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.[2] 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.[3]

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.

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inqiri

inqiri is a web application on the leading edge of cognitive science. Combining the insights of collective intelligence with the power of synthetic intelligence, inqiri helps optimize the decision-making process.

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