Management Perspectives

Throughout my career as a CEO and leader, it was a rare luxury to have all the relevant data before I was faced with making a decision. A large majority of the time I had to make decisions with incomplete information, sometimes going with my gut instinct instead of a well-thought-out plan of action.

Unfortunately, this type of approach to decision making left me open to a cognitive dissonance called “confirmation bias.” With confirmation bias, I found myself paying more attention to data that supported the decision I was thinking of making or had made, while dismissing data that did not.

When influenced by confirmation bias, decisionmakers will seek information that confirms their existing beliefs or biases, while ignoring or discrediting information that doesn’t support them. They will only look for evidence to confirm what they already believe, rather than looking at the available evidence.

We see this too often in our current political climate and social environment. However, confirmation bias can impact all aspects of our daily lives. People are unwilling to be openminded and inquisitive concerning their opinions, beliefs, or learned experiences. Instead, they hold onto preconceived thoughts or existing beliefs and go all in — even if evidence contradicts them.  

When afflicted with confirmation bias, we tend to rely on personal biases when searching for information. We selectively remember the information that supports our view while forgetting information that doesn’t. Human nature causes us to see what we want to see and look for and interpret information in ways that confirm our expectations.

In our personal lives, this leads us to choose a life partner or friends who have the same beliefs and values that we have. We seek information and other individuals that support our own beliefs. We surround ourselves with people who have the same interests, beliefs, and opinions simply because we want to validate our opinions and not have anyone challenge them. Instinctively, it’s just self-preservation. We want to feel good about ourselves, believing that we’re right and intelligent.

When this morphs over into our careers and how we select team members we’d like to work with, it can cause growth to stagnate.

If we only surround ourselves with likeminded people, how can we expect to learn about new ideas, new cultures, different perspectives, and alternative solutions to problems? A diverse workforce is one filled with ideation, creativity, and innovative thinking. If everyone thinks and acts the same way, we may stifle creativity and development.

An entrepreneur or organizational leader must become aware of the pitfalls that confirmation bias creates for their teams and their organization’s growth. These include:

Missing the big picture. Confirmation bias can narrow perspective by allowing only information that supports the decisionmaker’s beliefs and ignoring everything else — especially team input. This can limit understanding of complex issues and make it difficult to see alternative solutions to growth and problems.

Overlooking opportunities.
Confirmation bias can cause entrepreneurs to overlook opportunities that don’t align with their existing beliefs or opinions. This can prevent a team from discovering new information, exploring new ideas, or considering alternative approaches. Further it can lead to missed opportunities to solving a problem efficiently, growing revenue, or pursuing a joint venture with a beneficial partner — which can all have a significant negative impact on an organization.

Making flawed decisions. Entrepreneurs run the risk of making flawed decisions when they only consider information that supports their existing beliefs or opinions. By not taking into account all the available information, the leader or team may overlook important information or make assumptions that aren’t accurate. Missed diagnosis can cause catastrophic outcomes if the wrong decisions are made consistently.

Seeing things as black or white. As we see in our current political environment, confirmation bias can contribute to polarized views with no room for refinement, compromise, or adaptation. This creates a divisive atmosphere and negative work environment, and makes it difficult for an entrepreneur or team to find common ground with people who hold different views.

So how can we put ourselves in a position to make decisions that will avoid confirmation bias and lead to the highest probability of success? 

Challenge assumptions. First, look at an opinion or belief you hold firmly. Instead of considering the ways in which you may be right, search out ways in which you may be wrong. Ask questions like, “What evidence do I have to support this belief or assumption?” and “What evidence contradicts it?” Critically think about all supporting and conflicting evidence.

Seek out diverse perspectives. Expose yourself to contrasting sources of information that may challenge or contradict your assumptions. Don’t ignore or shut down new ideas or alternative solutions. Actively seek out perspectives from a wide range of sources, including those with whom you may disagree. Involve your team in constructive conversations or brainstorming sessions to avoid relying only on your existing ideas.

Survey all evidence. A third step in avoiding the pitfalls of confirmation bias is to gather all available evidence, even if it doesn’t support your existing assumptions or beliefs. This forces you to open your mind. Consider even including a few farout alternatives. Compare options side-byside to see the big picture clearly. Keep an eye out for evidence that supports any one of the available alternatives.

Our desire to defend our existing beliefs is a telling symptom of confirmation bias. We can avoid this by challenging our current beliefs, being open-minded and willing to consider new information, and evaluating all evidence objectively.