Page 48 - engage workbook

Cognitive ease Cognitive bias

The brain’s tendency to short-cut Mental errors caused by our simplified
thinking processes. Sometimes called information processing strategies.
“heuristics”.

This is natural, and was immensely
useful to our ancestors when faced with
dangers where quick action was critical,
such as “fight or flight” situations.

In today’s environment, where people are busy and situations complex, these shortcuts
in thinking, although not always negative, can result in poor decisions and missed
opportunities.

How to address our natural biases?

Recent research and the resulting books by two Nobel Prize Laureates: Richard Thaler
(Misbehaving, 2015 and Nudge, 2008), Daniel Kahneman (Think, Fast and Slow, 2011),
and Professor Dan Ariely of Duke University (Predictably Irrational, 2008) suggest that an
important first step in beginning to address the subconscious influence of cognitive bias is
to be aware of your biases and face up to them.

Equally, a host of psychologists and social scientists agree that even if we are aware of
our biases, it may still be impossible to set them all aside and act and listen in a truly
open way.

In our business relationships and conversations cognitive bias impacts multiple aspects of
our approach: from account planning to questioning; analyzing buyers to listening; and
presenting ideas to pricing and other decision making.

There are many biases that have been identified, so the focus here is on understanding
and attempting to manage seven of the most significant.

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