Decision making infographic8/11/2023 Biases are likely embedded in each of the answers, so knowing where to challenge or probe will help test if the recommendation is sound. If you are the decision-maker, by the time you get to the last why, it should be clear what is really needed and if the recommended approach will get there.īut there is an important note of caution: Why is only one of the questions that need to be asked before a decision is made. If you are the one with the ask, the clarity gained from asking the five why’s before presenting the information to the decision-maker makes the communication more concise and compelling. Those are the key differentiators that make it easier to make those decisions. Asking why helps break the problem down into only the essential pieces. The five why’s aim to uncover biases in decision-making by boiling everything down to the essentials – in operations, it’s called root cause in marketing, the core message in sales, the pitch, in product development, the MVP, etc. Was it the evidence or the story that was more compelling? If an executive has a bias going in, will she be more likely to change her mind in light of new evidence or will she explain that evidence away to fit how she sees the world?Īvoiding bias is as much about the effort you make to become aware of where your biases are as the techniques you use to try and prevent them. We predict what revenues will be based on market trends and past company performance, we predict what the expenses will be based on what we can find out about supply, production and distribution costs, and we evaluate if we should pursue it by looking at metrics like return on investment.īut hypothesis testing can still be biased. Stepping away for a few moments can keep you from making poor decisions (like rushing through to finish). Sometimes projects are incredibly lengthy and time involving, and sometimes you just aren’t into the subject matter personally. Essentially, it involves making a prediction (or an assumption) about what is going to happen, collecting unbiased information to prove or disprove it, and then evaluating whether or not the information supports the prediction.īusinesses use hypothesis testing as well whenever they vet an investment or fund a business, for example. Infographic creation is hard work, go ahead and take a break. If you’ve ever taken a statistics class (or were taught the scientific method), you’ve heard about hypothesis testing.
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