Problem Solving and Decision Making – The bias blindspot and decision making

Although the brain is powerful, it has its weaknesses. One of the weaknesses is the bias blindspot named after the visual blind spot. Emily Pronin, a social psychologist from Princeton University created the term “blind spots”. Humans do not see reality as we think we do. We have blindspots that blocked us from seeing reality as it is. A well known example of blindspot involves Henry Ford whose success with the Model-T blinded him to the desires of his customers. As a result, General Motors was able to capture a winning share of the automobile market with a broader range of models and options.

To help be more aware of our blind spots, the acronym below is helpful:

B – Bad money after good (escalating commitment)

L – Limited frame of reference

I – Invalid assumptions (taboo or just wrong)

N – Non-statistically significant conclusions

D – Deal Maker’s Curse

S – Self-focus over organization

P – Problem framing (key issue and components)

O – Overconfidence

T – Tendency to avoid losses

S – Sending good news bias