ISB Special

1. - What The Faff!!
Contents
Individual Decision-Making Biases ................................................................................................................ 1
Action Bias- ............................................................................................................................................... 1
Default Bias ............................................................................................................................................... 1
Confirmation bias ...................................................................................................................................... 2
Types of decision-making tasks..................................................................................................................... 2
Disjunctive................................................................................................................................................. 2
Conjunctive/Additive ................................................................................................................................ 2
Compensatory/ Synergistic ....................................................................................................................... 2
Individual Decision-Making Biases
Action Bias- biased toward action rather than inaction
Diego Forlan kick in 2010 Worldcup. During a penalty kick, the ideal strategy should be to stay put in the
center. But goalkeepers make up their mind which way to jump, probably observing the foot of the
shooter and making an assumption. This is Action Bias.
Default Bias - Tough to move from the default option

2. Related terms are cognitive inertia and status quo bias. (Man I love MBA jargons!)
You always prefer the default option. Say you go for a Full mean Thali
This thali has one default sweet- Laddu. But say they also offer another laddu for an extra 10 bucks.
Chances are you may settle for one laddu because that is default with the thali.
For a practical application of this bias in policy-making, see article
http://www.newyorker.com/talk/financial/2012/08/13/120813ta_talk_surowiecki
Confirmation bias- Kitni baar bolun! Don't you know that Men are SHY!
Types of decision-making tasks
Disjunctive- One right answer- Minimum evaluation function
Conjunctive/Additive- needs everyone’s inputs-maximum evaluation function
Compensatory/ Synergistic- Strengths and weaknesses of individual team-members
complement one another. Diversity rocks! Think also in terms of consumer evaluating a brand in terms
of various attributes and selecting a brand with the highest score (SMART..rings a bell?)

3. Groupthink - It is the mode of thinking that happens when the desire for harmony in a decision-making
group overrides a realistic appraisal of alternatives. Group members try to minimize conflict and reach a
consensus decision without critical evaluation of alternative ideas or viewpoints.
In short, "Chodna yaar! Just finish it!" attitude
Strategies for a Good Decision
Bottomline...DIVERSITy Rocks!
successful
Minority
Dissent
Participation in
decision making
Brainstorming
Seven Rules
Q-DOW-FOBe
Quantity over quality - zyada hai toh behter hai
Defer Judgment - Gives room for prejudice
Others' Ideas - Think of ur boss!! :P
Focus on the Idea- Else at the end of u'll say Kya Socha kya ho gaya!
One Conversation at a time (No Fish Market!)

4. Be Visual- In live brainstorms we use coloured markers to write on Post-its that are put on a
wall. Nothing gets an idea across faster than drawing it.
The Good: No pressure to have conformity (in fact, the converse is true)
The Bad: production blocking and also social inhibition by some group members
The Ugly: You mean more than this and INVA sums?