Managing Hindsight Bias Risk

People often believe that an outcome was predictable or even inevitable, after they know what that outcome was. When we do this, sometimes we're right, but often our sense of predictability or inevitability is exaggerated. This perception is so common that psychologists have given it a name: hindsight bias. Because of hindsight bias, we tend to see causal connections between antecedent conditions and outcomes, even when those supposedly causal connections are false. We tend not to recall conditions that would introduce uncertainty in the outcome, or which would tend to produce dramatically different outcomes. And we do recall elements that didn't exist if they support explanations that predict what actually happened.

For example, in a written evaluation of a subordinate's performance, a supervisor might observe, "George's impulsiveness created toxic conflict, not only involving George, but also between other team members." Toxic conflict might well have occurred, but was George's impulsiveness really the cause? Or was it an effect? A more useful comment would have provided evidence for the supposed causal connection, and it would have addressed alternative explanations for the toxic conflict that did occur.

Here are three suggestions for managing the risk of hindsight bias in the workplace.

Awareness is essential

Ignorance of hindsight bias allows it to thrive. Educate all those responsible for interpreting past events. Give them the tools they need to detect hindsight bias in themselves and their own thinking.

Accept that hindsight bias is a risk, and mitigate the risk

Although awareness and sensitivity can reduce the incidence of hindsight bias, total elimination is almost certainly impossible. Cooperative action is required. For example, in the performance appraisal process, supervisor and subordinate can be encouraged to discuss the possible presence of hindsight bias in the appraisal, and then come to agreement that they have dealt with those possibilities. Introducing this idea into the appraisal process is an example of mitigating hindsight bias risk.

Identify processes at risk of hindsight bias

Some processes are especially vulnerable to hindsight bias. The two mentioned here — performanceIgnorance of hindsight
bias allows it to thrive appraisal and project retrospectives — are merely examples. Strategic decisions, including decisions such as reorganizations, acquisitions, relocations, downsizing, outsourcing, and more, are often subject to evaluation, and therefore hindsight bias risk. An inventory of all processes for hindsight bias vulnerability is a necessary element of any program to address the effects of hindsight bias.

After identifying those processes most susceptible to hindsight bias risk, mitigation is the next step. Mitigation approaches must suit the process, but effective measures include checks and balances along the lines of the approach indicated above for risk management in the performance appraisal process. Multiple viewpoints and healthy, vigorous dialog are essential.  Top    Next Issue

Are your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!

Your comments are welcome

About Point Lookout

Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Emotions at Work:

What's So Good About Being Laid Off?

Layoffs during the holiday period of November 15 through January 15 are far more common than you might think. Losing your job, or fearing that you might, is always difficult, but at this time of year it's especially helpful to keep in mind that the experience does have a bright side.

Filtered Perceptions

How we see things influences how we see things, almost like a filter or sunglasses. What are your filters?

Social Safety Margins

As our personal workloads increase, we endure more stress and more time pressure. Inevitably, we have less time for the social niceties that protect us from accidentally hurting each other's feelings. When are we most at risk of incidental harm, and what can we do about it?

Making Memories to Cherish

We all have cherished memories — lovely moments we can replay whenever we want to feel happy. How would you like to have a lot more of them?

The Restructuring-Fear Cycle: II

When enterprises restructure, reorganize, downsize, outsource, lay off, or make other organizational adjustments, they usually focus on financial health. Here's Part II of an exploration of how the fear induced by these changes can lead to the need for further restructuring.

See also Emotions at Work, Personal, Team, and Organizational Effectiveness and Cognitive Biases at Work for more related articles.

Forthcoming issues of Point Lookout

Coming April 14: What Micromanaging Is and Isn't

Micromanaging is a particularly dysfunctional pattern of management behavior, involving interference in the work others are supposedly doing. Confusion about what it is and what it isn't makes effective response difficult. Available here and by RSS on April 14.

And on April 21: Choice-Supportive Bias

Choice-supportive bias is a cognitive bias that causes us to evaluate our past choices as more fitting than they actually were. The erroneous judgments it produces can be especially costly to organizations interested in improving decision processes. Available here and by RSS on April 21.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenGBFYqdeDxZESDSsjner@ChacmtFQZGrwOdySPdSsoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

• Get 2001-2 in Geese Don't Land on Twigs (PDF, )
• Get 2003-4 in Why Dogs Wag (PDF, )
• Get 2005-6 in Loopy Things We Do (PDF, )
• Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
• Get 2009-10 in The Questions Not Asked (PDF, )
• Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500-1000 words in your inbox in one hour. License any article from this Web site. More info

Public seminars

The Power Affect: How We Express Our Personal Power

Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.

• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   
• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   

Bullet Points: Mastery or Madness?

Decision-makers in modern organizations commonly demand briefings in the form of bullet points or a series of series of bullet points. But this form of presentation has limited value for complex decisions. We need something more. We actually need to think. Briefers who combine the bullet-point format with a variety of persuasion techniques can mislead decision-makers, guiding them into making poor decisions. Read more about this program.

• A recording of a program presented June 24, 2020, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   
• A recording of a program presented June 24, 2020, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.