That in fact happened, and the backup plan, which would not have existed without a decision process that changed the angle of vision, “saved the company.”. Another fights pattern-recognition biases by asking managers who present a recommendation to share the raw data supporting it, so other executives in this analytically minded company can try to discern alternative patterns. Self-stimulation, when the behavior itself provides reinforcement. According to Kleiner Perkins partner Randy Komisar, for example, a contentious discussion over manufacturing strategy at the start-up WebTV11 11. Strong decision-making processes explicitly account for diverging interests. It has now gotten to the point where he quickly pulls his socks and pants off, as well, so the office will call his mother to take him home. The reverse is not true; superb analysis is useless unless the decision process gives it a fair hearing. During a structured observation, the therapist noticed that when the time for art approaches, Jeremy gets really agitated. Flip the odds. To support those new norms, we also need a simple language for recognizing and discussing biases, one that is grounded in the reality of corporate life, as opposed to the sometimes-arcane language of academia. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. An absence of dissent is a strong warning sign. In the antecedent, everything happens immediately before the behavior occurs. We asked respondents to assess outcomes along four dimensions: revenue, profitability, market share, and productivity. Similarly, populating meetings or teams with participants whose interests clash can reduce the likelihood that one set of interests will undermine thoughtful decision making. To communicate. This can help them see the benefit of replacing what they’re doing (yelling in an already noisy classroom, for instance) with a different behavior (calming down in a quiet space). Example 1: Jeremy has been taking his clothes off in the classroom. This is not to say that executives think their strategic decisions are perfect. The best we can do is to change the angle of vision by encouraging participants to see facts in a different light and to test alternative hypotheses to explain those facts. Carlos is an adolescent boy, and he wants the attention of pretty girls. The decision almost certainly involved some fact gathering and analysis. But as citizens, we can expect verdicts to be rendered by juries and trials to follow the rules of due process. In this article, we share the results of new research quantifying the financial benefits of processes that “debias” strategic decisions. This is another function of escape, though because of the consequence, one might say it is also indirectly attention since she gets the undivided attention of Mom when she gets home. This category includes anchoring—the powerful impact an initial idea or number has on the subsequent strategic conversation. Building such a process for strategic decision making requires an understanding of the biases the process needs to address. The question is which ones will. It has taken as much as a half hour to calm her down, but after attacking the other students, the principal has been sending her home with Mom, who she has to herself for the rest of the day. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Another useful means of changing the angle of vision is to make it wider by creating a reasonably large—in our experience at least six—set of similar endeavors for comparative analysis. We share this concern and do not suggest applying these principles to all decisions. When that realization came, he told us, there was immediately a “sense of exhaling in the room.” Managers with software experience were frightened about building hardware; managers with hardware experience were afraid of ceding control to contract manufacturers. He occasionally hits a boy with long hair, but his focus is usually girls. When one successfully identifies the function of the behavior, one can reinforce an alternate, acceptable behavior that will replace it.