3 Biases That Affect High-Level Decisions

High‑level decisions shape companies, markets, and communities, and even experienced leaders can fall into mental shortcuts that cloud judgment.

Recognizing these biases is the first step toward better decisions.

1. Confirmation Bias We seek out information that confirms what we already believe, and filter out what doesn't fit.
   

2. Status Quo Bias We choose to stick with the familiar, even when evidence points toward change.

   
   

3. Overoptimism We overestimate positive outcomes and underestimate risks.

Confirmation Bias

EXAMPLE: Considering a new marl<et to expand, emphasizing supportive reports while minimizing studies showing low demand.

AVOID IT: Ask:, "What would change my mind?"before making a final decision."

Status Quo Bias

EXAMPLE: Keeping an underperforming product line because it's "always been part of the company", despite evidence a pivot could drive growth.

AVOID IT: Ask:, "Ifwe weren't doing this, would we

start today?"

Overoptimism

EXAMPLE: Approving a high-risk investment without contingency planning, assuming the "best case" will happen.

AVOID IT: Ask:, "What's the most realistic downside? Are we ready for it?"

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