![]() For instance, you may have decided to release a stationery product for school kids just before the pandemic, and by the time the product hit the shelves, the pandemic would have forced the schools to shut. Sometimes you may have made these projections based on current conditions, but after you proceed with the decision, conditions may have changed, leading to failures. ![]() Sometimes, you may misinterpret them or get them wrong. However, projections are not necessarily accurate all the time. While making business-critical decisions, you usually assess the implications of the decisions based on facts and numbers: you make projections and try to foresee the potential impact of the decisions. Hindsight bias can have a bad impact on decision making in organizations. How does hindsight bias work against decision making? As a result, hindsight bias is also known as the ‘knew-it-all-along’ effect and ‘creeping determinism’. Hindsight bias is a cognitive bias that drives one to look back at an event that could not have been possibly predicted and falsely believe that it was easily predictable. This psychological phenomenon is called the hindsight bias. During such times it is a human tendency to think back and believe that you knew all along that the decision you made in the past was wrong. There are instances where you make a choice, decide, and move ahead, only to find out later that it did not work and the organization has yet to produce the desired results. So the more significant the decision, the more sound it should be. When decisions are taken at the higher echelons of the hierarchy, they can have far reaching implications and impact. Running an organization is all about making choices and making decisions. Release Updates Outlined feature updates from our last releases.Help Center Endless support in case you are stuck.OKR Canvas Kick start your okr implementation right away.Answers (FAQs) Get instant solutions to your queries. ![]()
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