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Daily Briefing

3 ways to make better decisions


Self-serving bias — the tendency to interpret information in a way that confirms our beliefs and serves our own interest — can often lead to poor decision-making and potentially contribute to conflict. Writing for the  Harvard Business Review, behavioral scientist Francesca Gino offers three ways to overcome self-serving bias in order to make better-informed decisions.

3 ways to overcome self-serving bias

1. Consider the source of your information

When you consider the source of your information, you will likely reexamine the data you're relying on to make decisions, Gino writes.

Gino recalls when she once worked with a chain of retail stores who were trying to motivate their employees, and after a few unsuccessful attempts, found great results when they introduced clear performance guidelines, sales targets, and monthly bonuses.

But when the company looked closer at their data, they noticed that employees were hitting their sales targets primarily within the last week of each month, and the week after bonuses were paid out saw a spike in returned merchandise, meaning employees were purchasing large amounts of items to meet their goals and then returning them once they received their bonus.

"By considering the source of the information you're relying on, you can become more confident that in deciding on next steps, you're using relevant information to weigh others' thinking and actions, as well as your own," Gino writes.

2. Think critically about your past decisions

Thinking counterfactually and critically reviewing your choices allows you to consider different decisions you could have made, which can lead to a better understanding of what factors influenced your choices, Gino writes.

For example, if you missed a deadline on a project, you might consider how working harder, asking for help, or asking for a change in deadline could have affected your outcome.

Counterfactual thinking "can help you think through choices you've made by helping you expand your focus to consider multiple frames of reference beyond the present outcome," Gino writes. "This type of reflection encourages you to take note of different perspectives and reach a more balanced view of your choices."

3. Challenge your assumptions

By actively seeking out information that challenges your own beliefs and assumptions, you can also help fight against self-serving biases, Gino writes.

One way you can do this is by intentionally exposing yourself to different perspectives. When Satya Nadella became CEO of Microsoft, he determined the company needed a new strategy and that the culture needed to evolve.

To do this, Nadella sought out talent from different backgrounds and industries, and encouraged employees at Microsoft to take risks and experiment. Doing so exposed Nadella and his team to different perspectives and ideas, allowing Nadella to turn Microsoft into a more innovative and customer-focused company, focusing on cloud computing and artificial intelligence.

Research has  found  that people who specifically seek out new information that challenges their beliefs and assumptions are more able to update their beliefs in response to new evidence than those who don't, Gino writes. Seeking out diverse perspectives and ideas can help you overcome self-serving biases and make better decisions.

"Falling prey to self-serving biases only means we are human beings. Overcoming such biases in our work and life is not only critical to achieving better decisions — it's also very possible," Gino writes. "We can make better, more informed decisions — and unlock our full potential at work and beyond — if we make a regular habit of the above three strategies." (Gino, Harvard Business Review, 5/25)


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