??6 Cognitive Biases Impacting Leadership Effectiveness and Ways to Overcome Them

Welcome to the 'Power Series'; your monthly solution to Unleash, Radiate and Transmit Power in every area of your life Growing as a Mindful Leader.

Power of Unveiling Biases

We explore the 'Power of Unveiling Biases' in this week's 'Power series'. Do you consider yourself to be a biased leader? If you answered 'no' or 'rarely,’ I invite you to rethink it??. We consider ourselves rational beings driven by logic?? and reason; however, we all have biases - even the best leaders. Sal Mistry, assistant professor of business administration at the University of Delaware says that “The first thing is to realize we all have unconscious bias,??” even the best decision-makers are prone to biases. Make sure you understand that.” An interesting statement that caught my attention is, “If You Have a Brain??, You Have a Bias.”

What are cognitive biases?

Cognitive bias is a systematic error? in thinking, that affects how we process information, perceive others, and make decisions. It can lead to irrational thoughts or judgments and is often based on our perceptions, memories, or individual and societal beliefs.

Cognitive bias is often a result of our brain’s attempt to simplify information processing — we receive roughly 11 million bits ??of information per second. Still, we can only process about 40 bits of information per second. Therefore, we often rely on mental shortcuts (called heuristics) to help make sense of the world ??with relative speed????. As such, these errors tend to arise from problems related to thinking: memory, attention, and other mental mistakes.

Our brain makes mental shortcuts to reduce task complexity in judgment and choice. Also, to be efficient it speeds up the information processing ?? and decision-making process?. Most decisions we believe we make with a clear mind are actually controlled by mental shortcuts?. Thus, learning how to minimize their adverse impacts is vital to making better and more informed decisions. ?

Remember, not all cognitive biases are harmful. Making quick, fast-thinking decisions can be beneficial in dangerous situations.

?

As an organizational leader why should you prioritize awareness of your biases?

Cognitive biases can significantly hinder your leadership effectiveness, leading to several detrimental outcomes at both team and organizational levels. Some of the adverse outcomes are listed below:

• Lack of diversity ??????????♂???????in the team
• Low trust ??among team members
• Reduced team morale and productivity??
• Loss of time ?and resources
• A dearth of innovative Ideas??

?

As per the Forbes article, New Data Reveals the Hard Costs of Bias and How to Disrupt It, there is hard cost ??attached to bias. Employees who feel the burn??of bias downsize their contribution at work. The report states, “Those who perceive bias are more than three times as likely (31% to 10%) to say they plan to leave their current jobs within the year." Also, bias appears to sap innovation. "Those who perceive bias are 2.6 times more likely (34% to 13%) to say that they’ve withheld?? ideas and market solutions over the previous six months.”

?

The more we become aware of biases, the closer we get to reality — Peter Baumann

?

As a business leader here are two questions for you to ponder upon:?????

??1?? In what situations or decisions have you recently noticed biases influencing your judgment or actions?        

??2??How can you create a team culture that encourages open discussion of biases and fosters a more inclusive and innovative environment?        

?

Listed below are 6 Cognitive Biases Impacting Leadership Effectiveness and Ways to Overcome Them:

Affinity Bias

Affinity bias is the tendency to prefer people who share similar interests, backgrounds, and experiences like you??. It is similar to ‘like me’ syndrome where you may be surrounded with team members who think??, act and behave like you. Since it is easier to get along with people who share the same viewpoint as you and the possibility of conflict ??is much lower, it is expected that you will gravitate towards such individuals.

Solution: Scan your surroundings for diversity in your team, including members from varied backgrounds, genders, ages, beliefs, and experiences. Remember, a team with diverse ??????perspectives and experiences fosters greater creativity??, innovation??, and collaboration. Driving diversity and inclusion in your team enhances workplace likability fostering a culture of care and respect among team members.

?

Authority Bias

It is the tendency to be more influenced by the opinions and judgments of authority figures.???? This bias can lead you to accept information or follow instructions from crucial stakeholders or board members without critically evaluating the content simply because it comes from a perceived authority. ?In your team, it can lead to groupthink where if the team is under pressure to make the ‘right decision’ and not comfortable sharing honest opinions, they meekly agree to the authority figure.

?

Solution: ?Observe your team to see if there is a tendency to prioritize the opinions of HiPPOs, i.e., the Highest-Paid Person's Opinion. When making decisions, do you give more weight????♂? to valuable insights, data, and subject matter experts' opinions??, or do you gravitate toward information from an authority figure? To mitigate the authority bias, separate the content from the person delivering it. Foster a culture within your team that values critical thinking and the sharing of honest ????opinions over the need to always be right. Create an environment where every voice ???matters.

?

Actor – Observer Bias

According to this bias, people are more likely to attribute their actions to external circumstances rather than their personality????♀?. However, when in the role of the observer explaining the behavior of others, they are more likely to blame their character??????. An example here could be - You arrive late for a board meeting and attribute it to unforeseen traffic??. However, when a team member is late, you assume it's due to their lack of commitment. This bias can erode trust and morale within the team.

?Solution: Ask yourself if this hold true for you - When I'm at fault, it's the situation, but when someone else is at fault, it's their character. Empathy ??serves as one of the most effective remedies for this bias. Make an effort to put yourself in other person’s shoes??, imagine if roles were reversed you would probably want other people to give you the benefit of the doubt, and understand that your mistakes aren’t necessarily reflective of who you are as a person.

?

Confirmation Bias

It is the tendency to pay more attention to information that confirms one’s existing beliefs?. People tend to notice and focus on evidence that fits their existing beliefs and avoid evidence to the contrary. I like to call it the ‘I am right’ syndrome. Evaluating information contrary???? to one’s belief requires additional time and energy?, making focusing on what is already known easier. This results in poor decision-making, lack of innovation and a perception that the leader lacks open-mindedness.??

Solution: In any decision-making process, start with a neutral mindset, prepared to consider both sides ??of the argument or hypothesis. It's essential to seek data that actively challenges or contradicts your initial belief. Encourage a culture of curiosity?? and flexibility within your team as this will lead to uncovering more innovative solutions.

?

The Bandwagon Effect

The Bandwagon effect refers to our habit of adopting certain behaviors or beliefs because many other people ????????????do the same. It is similar to ‘herd mentality’. This phenomenon is particularly evident in today's social media ??landscape, where we often like a post or reel ???simply because it has garnered many likes ??????. It's common nowadays to hear about posts or reels going viral. This effect can severely impact innovation in an organization, as individuals may feel uncomfortable going against the flow????♀? and sharing their disagreement on a particular project, fearing rejection or isolation.

Solution: It is valuable to slow down?? and evaluate what are your true feelings about a decision or a situation. As said by Winstor Churchill, “Courage ???? is what it takes to stand up and speak; courage is also what it takes to sit down and listen." Be courageous to go against the flow if you feel that is the right thing to do. Foster psychological safety within your team, encouraging them to ask questions, share differing viewpoints and express disagreements.

??

The Halo and Horn Effect

An effect in which one person's judgment of another is unduly influenced by a first impression; it may be either unfavourable?? (horns) or favourable?? (halo). Remember the phrase, “First impression is the last impression.” A person may unconsciously be listening ????and entertaining ideas and suggestions from a specific few and disregarding the opinion of others. This behavior can lead to a feeling of favoritism in the team and significantly impact the members' morale ??. It can also hinder critical thinking during the appraisal process or hiring individuals, leading to incorrect decision-making.

Solution: To mitigate this effect, recognize that individuals are multifaceted. You should refrain from making snap???? judgments and instead acknowledge that everyone, including oneself, has strengths???? and areas for improvement ??. By practicing nonjudgment and striving to understand others better, this bias can be minimized.

As said by Henri Bergson, "The eye sees only what the mind is prepared to comprehend."

Thus, it is valuable to be aware of your beliefs and biases as they serve as a mental filter through which you perceive the world. You can expand your perspective and significantly enhance your leadership effectiveness by gaining a deeper understanding of these filters.

?

P.S. - There are more than 250 cognitive biases and you can learn more about them here by accessing the below link:

https://thedecisionlab.com/biases-index

More Power of ‘Unveiling Biases’ to you!??

Keep smiling and Keep shining…??

Based on the above article, take a moment to reflect on the cognitive biases that might be influencing your leadership decisions. Share your insights with us in the comments below. Understanding and addressing these biases can significantly improve your effectiveness as a leader.

Like what you read? Stay in the loop with the latest articles by subscribing to the 'Power series' newsletter. And if you found the insights beneficial, please share them with your network.????