A brief intro on various cognitive biases that hamper our rational decision making, especially in the context of Product design & development and how to deal with it. It was used during my talk at Agile India 2018
12. BRAIN’S TROUBLE…
Too much
information….
Not enough
meaning…
Need to act
FAST…
What to
remember..?
https://img.clipartxtras.com/bf38813f846f48c7f57182f1258340c7_confused-brain-clipart-confused-brain-clipart-royalty-free-rf-confused-brain-clipart_980-1024.jpeg
16. We notice things that are already primed in memory
or repeated often.
Availability heuristic,
Baader-Meinhof
Phenomenon,
Empathy gap,
Omission bias,
Base rate fallacy
17. Bizarre/funny/visually-striking/anthropomorphic things
stick out more than non-bizarre/unfunny things.
Bizarreness effect,
Humor effect,
Von Restorff effect,
Picture superiority effect,
Self-relevance effect,
Negativity bias
https://tafein2009.files.wordpress.com/2009/07/eat-mor-chikin.jpg?w=500
18. We notice when something has changed….
Anchoring,
Contrast effect,
Focusing effect,
Money illusion,
Framing effect,
Weber–Fechner law,
Conservatism,
Distinction bias
Image Source :- https://i.ytimg.com/vi/uvDtyJ5sg7U/maxresdefault.jpg
19. We are drawn to details that confirm our own existing
beliefs.
Confirmation bias
Congruence bias
Post-purchase
rationalization
Choice-supportive bias
Selective perception
Observer-expectancy effect
Experimenter’s bias
Observer effect
Expectation bias
Ostrich effect
Subjective validation
https://www.forbes.com/sites/peterlazaroff/2016/09/28/confirmation-bias/
20. We notice flaws in others more easily than flaws in
ourselves.
Bias blind spot,
Naïve cynicism,
Naïve realism
In a study — only one
adult out of 661 said
that he/she is more
biased than the average
person.
Image Source :- https://i.ytimg.com/vi/uvDtyJ5sg7U/maxresdefault.jpg
22. We find stories and patterns even in
sparse data.
Confabulation,
Clustering illusion,
Insensitivity to sample size,
Neglect of probability,
Illusion of validity,
Masked man fallacy,
Recency illusion,
Gambler’s fallacy,
Hot-hand fallacy,
Illusory correlation,
Pareidolia,
24. We simplify probabilities and numbers to make
them easier to think about.
Mental accounting
Normalcy bias
Appeal to probability fallacy
Murphy’s Law
Subadditivity effect
Survivorship bias
Zero sum bias
Survivorship
Bias:- People
systematically
overestimate their
chances of success
Image Source :- https://i.ytimg.com/vi/uvDtyJ5sg7U/maxresdefault.jpg
26. We project our current mindset and
assumptions onto the past and future.
Hindsight bias,
Outcome bias,
Moral luck,
Declinism,
Telescoping effect,
Rosy retrospection,
Impact bias,
28. 1. In order to act, we need to be confident in our ability to make an
impact and to feel like what we do is important.
Overconfidence effect, Optimism bias, Dunning-Kruger effect,
2. In order to stay focused, we favor the immediate, relatable thing in
front of us over the delayed and distant.
Hyperbolic discounting, Appeal to novelty, Identifiable victim effect
WHEN WE NEED TO ACT FAST…….
29. 3. In order to get anything done, we’re motivated to complete things
that we’ve already invested time and energy in. Sunk cost fallacy, Loss
aversion, IKEA effect, Processing difficulty effect, Unit bias,
4. We favor options that appear simple or that have more complete
information over more complex, ambiguous options
Ambiguity bias, Information bias, Belief bias, Rhyme as reason effect, Bike-
shedding effect, Law of Triviality, Delmore effect, Conjunction fallacy, Occam’s
razor, Less-is-better effect
WHEN WE NEED TO ACT FAST…….
31. 1. We edit and reinforce some memories after the
fact. Misattribution of memory, Source
confusion, Cryptomnesia, False memory, Suggestibility, Spacing effect
2. We discard specifics to form generalities. Implicit associations,
Implicit stereotypes, Stereotypical bias, Prejudice, Negativity
bias, Fading affect bias
3. We store memories differently based on how they were
experienced.
Levels of processing effect, Testing effect, Absent-mindedness, Next-
in-line effect, Tip of the tongue phenomenon, Google effect
WHEN THERE’S NOT ENOUGH MEMORY…….
34. Remember that..….
• Information overload sucks, so we aggressively
filter. Noise becomes signal.
• Lack of meaning is confusing, so we fill in the
gaps. Signal becomes a story.
• Need to act fast lest we lose our chance, so we
jump to conclusions. Stories become
decisions.
• This isn’t getting easier, so we try to remember
the important bits. Decisions inform our
mental models of the world and
change reality
35. Gottchaas to lookout for ……..
1.We don’t see everything. Some of the information we filter
out is actually useful and important.
2.Our search for meaning can conjure illusions. We
sometimes imagine details that were filled in by our assumptions,
and construct meaning and stories that aren’t really there.
3.Quick decisions can be seriously flawed. Some of the
quick reactions and decisions we jump to are unfair, self-serving,
and counter-productive.
4.Our memory reinforces errors. Some of the stuff we
remember for later just makes all of the above systems more biased,
and more damaging to our thought processes.
37. One of the hardest skills for a PM to learn is
to take their own emotions and feelings out of
the equation when it comes to decision-
making.”
- -Rian van der Merwe, Making It Right: Product
Management For A Startup World
38. WHY SHOULD WE CARE?
• Innovation or design requires deep understanding of
customers
• Our understanding is often clouded by our
unconscious biases.
• Knowing our biases help us understand self better,
therefore prevent decisions to be clouded.
• Better decisions & customer understanding àBetter
design & innovation.
42. Biases in our mind exist as these
associations or links.
|Stranger — Danger|
|Women Driver — Bad|
|Narendra Modi — <>
|PAPPU — <. > |
Disassociating the association
45. OVERCOMING BIASES
• Being Aware/ Spot the bias at play helps.
• Visit graveyards, often
• Challenge biases openly and its impact on decision
making.
• Build multiple hypothesis, test and reflect
• Outside Feedback
• Diversity
46.
47. 1. Daniel Kahneman – Thinking Fast & Slow
2. Buster Benson :- https://betterhumans.coach.me/cognitive-bias-cheat-
sheet-55a472476b18
3. Rob Dobelii – Art of thinking clearly
REFERENCES/ CREDITS