Cognitive Biases at Work

Here are links to the previous issues of Point Lookout that touch on the effects of cognitive biases at work. Bookmark this page. Or browse the Point Lookout archive by date. Subscribe now.

Coming September 4: Beating the Layoffs: I

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily before the layoffs can carry significant advantages. Here are some that relate to self-esteem, financial anxiety, and future employment. Available here and by RSS on September 4.

And on September 11: Beating the Layoffs: II

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily can carry advantages. Here are some advantages that relate to collegial relationships, future interviews, health, and severance packages. Available here and by RSS on September 11.

Other topical archives:

April 10, 2024

Managing Dunning-Kruger Risk

A cognitive bias called the Dunning-Kruger Effect can create risk for organizational missions that require expertise beyond the range of knowledge and experience of decision-makers. They might misjudge the organization's capacity to execute the mission successfully. They might even be unaware of the risk of so misjudging.

September 6, 2023

The Risk Planning Fallacy

The planning fallacy is a cognitive bias that causes underestimates of cost, time required, and risks for projects. Analogously, I propose a risk planning fallacy that causes underestimates of probabilities and impacts of risk events.

May 17, 2023

Clouted Thinking

When we say that people have "clout" we mean that they have more organizational power or social influence than most others do. But when people with clout try to use it in realms beyond those in which they've earned it, trouble looms.

April 26, 2023

Confirmation Bias and Myside Bias

Although we regard ourselves as rational, a well-established body of knowledge shows that rationality plays a less-than-central role in our decision-making process. Confirmation Bias and Myside Bias are two cognitive biases that influence our decisions.

October 12, 2022

Downscoping Under Pressure: II

We sometimes "downscope" projects to bring them back on budget and schedule when they're headed for overruns. Downscoping doesn't always work. Cognitive biases like the sunk cost effect and confirmation bias can distort decisions about how to downscope.

September 28, 2022

The Illusion of Explanatory Depth

The illusion of explanatory depth is the tendency of humans to believe they understand something better than they actually do. Discovering the illusion when you're explaining something is worse than embarrassing. It can be career ending.

June 1, 2022

Mental Accounting and Technical Debt

In many organizations, technical debt has resisted efforts to control it. We've made important technical advances, but full control might require applying some results of the behavioral economics community, including a concept they call mental accounting.

February 2, 2022

The Risk of Astonishing Success

When we experience success, we're more likely to develop overconfidence. And when the success is so extreme as to induce astonishment, we become even more vulnerable to overconfidence. It's a real risk of success that must be managed.

September 15, 2021

Illusory Management: II

Many believe that managers control organizational performance more precisely than they actually do. This illusion might arise, in part, from a mechanism that causes leaders and the people they lead to tend to misattribute organizational success.

September 8, 2021

Illusory Management: I

Many believe that managers control organizational performance, but a puzzle emerges when we consider the phenomena managers clearly cannot control. Why do we believe in Management control when the phenomena Management cannot control are so many and powerful?

April 21, 2021

Choice-Supportive Bias

Choice-supportive bias is a cognitive bias that causes us to assess 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.

March 3, 2021

Risk Acceptance: One Path

When a project team decides to accept a risk, and when their project eventually experiences that risk, a natural question arises: What were they thinking? Cognitive biases, other psychological phenomena, and organizational dysfunction all can play roles.

February 24, 2021

Risk Acceptance: Naïve Realism

When we suddenly notice a "project-killer" risk that hasn't yet materialized, we sometimes accept the risk even though we know how seriously it threatens the effort. A psychological phenomenon known as naïve realism plays a role in this behavior.

October 7, 2020

Seven More Planning Pitfalls: III

Planning teams, like all teams, are vulnerable to several patterns of interaction that can lead to counter-productive results. Two of these relevant to planners are a cognitive bias called the IKEA Effect, and a systemic bias against realistic estimates of cost and schedule.

September 30, 2020

Seven More Planning Pitfalls: II

Planning teams, like all teams, are susceptible to several patterns of interaction that can lead to counter-productive results. Three of these most relevant to planners are False Consensus, Groupthink, and Shared Information Bias.

September 23, 2020

Seven More Planning Pitfalls: I

Planners and members of planning teams are susceptible to patterns of thinking that lead to unworkable plans. But planning teams also suffer vulnerabilities. Two of these are Group Polarization and Trips to Abilene.

September 16, 2020

Seven Planning Pitfalls: III

We usually attribute departures from plan to poor execution, or to "poor planning." But one cause of plan ineffectiveness is the way we think when we set about devising plans. Three cognitive biases that can play roles are the so-called Magical Number 7, the Ambiguity Effect, and the Planning Fallacy.

September 9, 2020

Seven Planning Pitfalls: II

Plans are well known for working out differently from what we intended. Sometimes, the unintended outcome is due to external factors over which the planning team has little control. Two examples are priming effects and widely held but inapplicable beliefs.

September 2, 2020

Seven Planning Pitfalls: I

Whether in war or in projects, plans rarely work out as, umm well, as planned. In part, this is due to our limited ability to foretell the future, or to know what we don't know. But some of the problem arises from the way we think. And if we understand this we can make better plans.

August 26, 2020

Motivated Reasoning and the Pseudocertainty Effect

When we have a preconceived notion of what conclusion a decision process should produce, we sometimes engage in "motivated reasoning" to ensure that we get the result we want. That's risky enough as it is. But when we do this in relation to a chain of decisions in the context of uncertainty, trouble looms.

August 19, 2020

Motivated Reasoning

When we prefer a certain outcome of a decision process, we risk falling into a pattern of motivated reasoning. That can cause us to gather data and construct arguments that erroneously lead to the outcome we prefer, often outside our awareness. And it can happen even when the outcome we prefer is known to threaten our safety and security.

August 12, 2020

Cognitive Biases at Work

Cognitive biases can lead us to misunderstand situations, overlook options, and make decisions we regret. The patterns of thinking that lead to cognitive biases provide speed and economy advantages, but we must manage the risks that come along with them.

July 1, 2020

On Standing Aside

Occasionally we're asked to participate in deliberations about issues relating to our work responsibilities. Usually we respond in good faith. And sometimes we — or those around us — can't be certain that we're responding in good faith. In those situations, we must stand aside.

May 13, 2020

Neglect of Probability

Neglect of Probability is a cognitive bias that leads to poor decisions. The risk of poor decisions is elevated when we must select an option from a set in which some have outstandingly preferable possible outcomes with low probabilities of occurring.

March 25, 2020

Bullet Point Madness: II

Decision makers in many organizations commonly demand briefings in the form of a series of bullet points or a series of series of bullet points. Briefers who combine this format with a variety of persuasion techniques can mislead decision makers, guiding them into making poor decisions.

March 18, 2020

Bullet Point Madness: I

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.

December 18, 2019

The Trap of Beautiful Language

As we assess the validity of others' statements, we risk making a characteristically human error — we confuse the beauty of their language with the reliability of its meaning. We're easily thrown off by alliteration, anaphora, epistrophe, and chiasmus.

December 11, 2019

The Rhyme-as-Reason Effect

When we speak or write, the phrases we use have both form and meaning. Although we usually think of form and meaning as distinct, humans tend to assess as more meaningful and valid those phrases that are more beautifully formed. The rhyme-as-reason effect causes us to confuse the validity of a phrase with its aesthetics.

August 21, 2019

Perfectionism and Avoidance

Avoiding tasks we regard as unpleasant, boring, or intimidating is a pattern known as procrastination. Perfectionism is another pattern. The interplay between the two makes intervention a bit tricky.

July 24, 2019

The Stupidity Attribution Error

In workplace debates, we sometimes conclude erroneously that only stupidity can explain why our debate partners fail to grasp the elegance or importance of our arguments. There are many other possibilities.

December 12, 2018

Effects of Shared Information Bias: II

Shared information bias is widely recognized as a cause of bad decisions. But over time, it can also erode a group's ability to assess reality accurately. That can lead to a widening gap between reality and the group's perceptions of reality.

December 5, 2018

Effects of Shared Information Bias: I

Shared information bias is the tendency for group discussions to emphasize what everyone already knows. It's widely believed to lead to bad decisions. But it can do much more damage than that.

February 21, 2018

The Ultimate Attribution Error at Work

When we attribute the behavior of members of groups to some cause, either personal or situational, we tend to make systematic errors. Those errors can be expensive and avoidable.

July 3, 2024

Additive bias…or Not: II

Additive bias is a cognitive bias that many believe contributes to bloat of commercial products. When we change products to make them more capable, additive bias might not play a role, because economic considerations sometimes favor additive approaches.

June 26, 2024

Additive bias…or Not: I

When we alter existing systems to enhance them, we tend to favor adding components even when subtracting might be better. This effect has been attributed to a cognitive bias known as additive bias. But other forces more important might be afoot.

August 23, 2023

Lessons Not Learned: II

The planning fallacy is a cognitive bias that causes us to underestimate the cost and effort involved in projects large and small. Efforts to limit its effects are more effective when they're guided by interactions with other cognitive biases.

August 16, 2023

Lessons Not Learned: I

The planning fallacy is a cognitive bias that causes us to underestimate the cost and effort involved in projects large and small. Mitigating its effects requires understanding how we go wrong when we plan projects by referencing our own past experience.

September 14, 2022

Unrecognized Bullying: III

Much workplace bullying goes unrecognized because of cognitive biases that can cause targets, perpetrators, bystanders, and supervisors of perpetrators not to notice bullying. The Halo Effect and the Horn Effect are two of these biases.

July 21, 2021

Be Choosier About Job Offers: I

A serious error some job seekers make is accepting an offer that isn't actually a good fit. We make this mistake for a variety of reasons, including hating the job-search process, desperation, and wishful thinking. How can we avoid the error?

April 7, 2021

Some Perils of Reverse Scheduling

Especially when time is tight, project sponsors sometimes ask their project managers to produce "reverse schedules." They want to know what would have to be done by when to complete their projects "on time." It's a risky process that produces aggressive schedules.

September 18, 2019

The Planning Fallacy and Self-Interest

A well-known cognitive bias, the planning fallacy, accounts for many unrealistic estimates of project cost and schedule. Overruns are common. But another cognitive bias, and organizational politics, combine with the planning fallacy to make a bad situation even worse.

September 4, 2019

How Messages Get Mixed

Although most authors of mixed messages don't intend to be confusing, message mixing does happen. One of the most fascinating mixing mechanisms occurs in the mind of the recipient of the message.