Overcoming Anchoring, Illusion of Control, and Information Bias to Manage Organizational Change Effectively
We have a bunch of fun/interesting/curious biases to explore this year. The anchoring bias, the illusion of control bias, and the information bias are all cognitive biases that can influence people's decision-making and problem-solving. These biases all involve how people's thoughts and perceptions can lead them to make judgments and decisions that are not logically sound or based on incomplete or irrelevant information.
Anchoring Bias - The anchoring bias is a cognitive bias that occurs when people rely too heavily on the first piece of information they receive (the "anchor") when making decisions. It can lead people to make judgments that are not logically sound because the initial anchor overly influences them. In change management, this can impact our efforts if the initial plan or approach to the technical change is perceived as the "correct" or "best" way to proceed; decision-makers may anchor on this initial plan and fail to consider alternative approaches or solutions. It can lead to a suboptimal outcome, making the change process more successful.
The illusion of Control Bias - The illusion of control bias is a cognitive bias that occurs when people overestimate their ability to control events or outcomes outside their control. This can lead people to make irrational decisions and take unnecessary risks because they believe they have more control over the situation than they do. In change management, this can lead to decision-makers overestimating their ability to control the outcome of the technical change and may take unnecessary risks or make unrealistic plans. This can lead to problems or setbacks during the change process.
Information Bias - Information bias is a cognitive bias that occurs when people seek out more information than is necessary or helpful in making a decision. When working on change initiatives, decision-makers may seek out more information than is necessary or become overwhelmed by the amount of information available, leading to delays or difficulties in making decisions and implementing the technical change. This can lead people to waste time and resources gathering unnecessary information, and it can also lead to analysis paralysis, where people are only able to decide if they have more information to process.
All three biases can lead people to make irrational decisions and can have negative consequences, such as overpaying for goods or services, making poor sub-optimal decisions, or wasting time and resources.
One way in which these three biases are related is that they can all be influenced by how information is presented or framed. For example, an initial anchor (such as an initial bid in an auction) can set the stage for the anchoring bias, and the way that information is presented (such as the "one size fits all" framing of a change management process) can contribute to the illusion of control bias. Similarly, the way that information is presented can influence the extent to which people feel the need to seek out additional information, leading to information bias.
There are many researchers and authors who have explored the anchoring bias, the illusion of control bias, and the information bias in the field of psychology and behavioral economics. If you want to read more on these, there are several notable authors in this area, including:
Amos Tversky and Daniel Kahneman introduced the concept of the anchoring bias and made significant contributions to the field of behavioral economics.
Ellen Langer and Jane Roth introduced the concept of the illusion of control bias.
Daniel Kahneman has written extensively about the role of cognitive biases in decision-making and has won a Nobel Prize in Economics for his work.
Richard Thaler, has written extensively about the role of behavioral economics in decision-making and has won a Nobel Prize in Economics for his work.
Daniel Gilbert has written about the role of cognitive biases in decision-making and has popularized the concept of information bias in his book "Stumbling on Happiness."
Many other researchers and authors have made significant contributions to the study of these biases and their impact on decision-making. These researchers come from a variety of disciplines, including psychology, economics, and business, and their work has had a significant influence on our understanding of how cognitive biases can influence our thoughts and actions.
