How Lean Thinking Reduces Bias and Errors in Decision-Making Amid Uncertainty
Mohammad Mehdi Gholami
![Mohammad Mehdi Gholami]()
Mohammad Mehdi Gholami
Product Manager | Entrepreneur | Electronic Engineer | Expertise in Strategy, Innovation, and Lean Product Development | Driving Growth & Efficiency in Tech and SaaS | Robotics Enthusiast
Lean thinking is not just beneficial for startups and production but also plays a crucial role in reducing biases, cognitive errors, and unexpertise in decision-making across various aspects of life. This article encapsulates my personal insights on lean thinking and decision-making systems, drawing from my experiences with Cheragh, Tarazo, and Soren Shayan Borna, as well as Daniel Kahneman’s work.
Before delving into the core message, let me clarify my perspective on evaluation and decision-making. Evaluation involves all actions like thinking, examining, inquiring, and observing that form the foundation of a decision. From my perspective, decision-making is a commitment: after evaluation, it involves consciously choosing a path or intention and being prepared to invest significant resources and accept costs to pursue this path.
This approach helps avoid common pitfalls like the "sunk cost fallacy," where people continue investing in unbeneficial activities due to past investments, and the "endowment effect," where people overvalue what they own. For example, staying through a boring movie to avoid wasting the ticket cost illustrates the sunk cost fallacy. Understanding these phenomena helps prevent wasting valuable resources such as time.
Daniel Kahneman’s book "Thinking, Fast and Slow" is highly recommended for managers and entrepreneurs. Kahneman’s dual-system theory involves System 1 (fast thinking) and System 2 (slow thinking). Lean thinking aligns with System 2, helping to mitigate biases from System 1. Lean thinking promotes quick, low-cost evaluations that provide clarity in uncertain situations, allowing for better decisions by feeding System 2 with essential information.
In summary, lean thinking facilitates optimal decision-making by providing clarity and minimizing biases, leading to informed choices in uncertain environments. My experiences with Cheragh (where I formulated and aligned comprehensive strategies), Tarazo (where I addressed market price instability and secured significant funding), and Soren Shayan Borna (where I developed innovative MVPs and managed product development) have reinforced the value of lean thinking.
I hope these insights help founders, managers, and leaders make better decisions and turn knowledge into practical skills.