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How To Overcome The Cognitive Biases That Are Affecting Your Business 

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How To Overcome The Cognitive Biases That Are Affecting Your Business 

June 24, 2022

What coffee chain sells the best coffee? 

Is it Starbucks? Tim Hortons? What about Second Cup? Maybe McDonald’s? 

The answer to this question will vary depending on the person. There are various different factors that can be taken into consideration when determining the answer, that’s what cognitive bias is:

The subconscious error in thinking that occurs while interpreting information around us. 

There are various ways in which cognitive biases can affect your business. Firstly, it hinders decision-making. This is important because this shows up in every aspect of your business. Determining strategies requires decision-making skills. Hiring new employees requires decision-making skills. Even picking a location for a team dinner requires decision-making skills. It’s something that is present in the day-to-day operations of your business that must be approached objectively with sufficient information. Poor decision-making is a major cause of cognitive biases that negatively impact your business.

Additionally, cognitive biases affect your ability to adapt to change. The way in which we do things is rapidly evolving and the introduction of new technologies has made many business processes more efficient. However, if you have an unconscious bias against technology it will affect your business. This is not only seen with digital transformations. 

In order to overcome this, you need to be aware of it. It’s easy to claim we are objective with our decision-making but that’s not always true. Even if it’s only a little, we all have some kind of bias when it comes to interpreting information. 

Once you’re aware of your cognitive biases, there are several steps you can take to mitigate it. To start, collaborate with your team with an open-mind. Truly approach all conversations with the attitude of there being no bad ideas. What you think is great could be average to a colleague and vice versa. Brainstorming together can not only reveal your biases but also help resist them. 

Sometimes no matter how hard you try, it’s hard to make an objective decision in your business due to your cognitive biases. That’s where a third party like Impact Signal comes in! We can help you understand your data and customers to reach your potential without being hindered by your cognitive biases.

Author

  • Thamilini is a Marketing Intern at Impact Signal. Currently, she is pursuing her undergraduate degree in Global Business and Digital Arts from the University of Waterloo. She has a passion for creative storytelling through various mediums such as videography, photography, creative writing and graphic design.



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