Overcoming Bias: How Business Owners' Subjectivity Can Hinder Growth and How to Rise Above It

Introduction

Have you ever made business decisions based on your feelings about a project or product, rather than the hard facts and figures? It's a situation we all find ourselves in from time to time, and it's a testament to the passion that fuels entrepreneurship. However, when subjectivity starts to overrule objectivity in business, it can become a stumbling block to growth and success.

In business, the adage 'beauty lies in the eye of the beholder' often rings true. As business owners, we love our creations - our products, services, brands, or unique processes. This passion drives us to work tirelessly, pushing boundaries and fostering innovation. But there's a catch. While it's perfectly normal to feel an emotional connection to your enterprise, letting these feelings dictate strategic decisions can put the brakes on your company's progress.

Subjectivity in business decision-making often stems from cognitive biases – the innate tendencies we have to process information based on our personal experiences, beliefs, and perceptions. These biases can colour our judgement and lead to decisions that are not in the best interest of the business.

For example, confirmation bias - the tendency to seek out and focus on information that confirms our existing beliefs - can cause us to ignore valuable feedback or market data that contradicts our assumptions. Similarly, the availability heuristic - our propensity to make decisions based on readily available information, rather than seeking out a comprehensive data set - can result in myopic decisions that stunt business growth.

In this article, we'll explore the ways in which business owners' subjectivity can inhibit growth, and we'll discuss strategies to overcome these biases, fostering a more objective, growth-oriented mindset. We'll draw on real-world examples to illustrate these concepts and provide actionable advice that can be applied to your business.

Unseen Barriers: The Hidden Consequences of Subjectivity in Business Decision-Making

Subjectivity in business decision-making, while seemingly benign, can pose serious challenges to a company's growth trajectory. It's often under the surface, subtly influencing our choices, and by the time we recognise its impact, it may have already done significant damage. The issue can be broken down into three key sub-problems: resistance to change, underestimating competition, and misunderstanding the market.

Resistance to Change

A common pitfall associated with subjective decision-making is resistance to change. When emotionally invested in our projects or processes, we're naturally reluctant to alter them, even in the face of compelling evidence that change is necessary. This resistance often stems from an over-reliance on past success. Business owners may think, "If it worked before, it would work again", disregarding the dynamic nature of business landscapes and the need for continual adaptation.

“People want security. Neurologically, humans want to reduce threats and achieve security.” Tracy Brower, PhD, Forbes

Unfortunately, this mindset can lead to stagnation and complacency, leaving businesses vulnerable to disruptive market forces. The ever-evolving nature of today's markets requires businesses to stay agile, adapting their strategies in response to changes in customer needs, market trends, and technological advancements. When a subjective attachment to the status quo prevents this adaptability, businesses risk being left behind.

Underestimating Competition

Subjectivity can also lead to an underestimation of the competition. Business owners often have a strong belief in the superiority of their products or services, which, while important for confidence and motivation, can result in a failure to objectively assess competitive threats.

There was a time when Blackberry boasted a user base of 80 million globally, with high-profile users such as the former U.S. President, Obama, who only parted ways with his Blackberry in 2016. During the mid to late-2000s, Blackberry Messenger served as the primary platform for personal and business communications, with everyone keen to share their pin.

As for their downfall: the short answer is the iPhone. Blackberry failed to adapt to touchscreen technology while Apple began to rule the mobile marketplace, encouraging Bring Your Own Device (BYOD) practices and policies within corporations. Rumours circulated in 2014 that Blackberry was developing a voice assistant similar to Siri, named Blackberry Assistant, three years after Apple integrated Siri into all their devices. This lack of innovation on Blackberry's part led to a precipitous fall to a mere 0.2% market share by the early months of 2016.

An inflated sense of one's offerings can lead to complacency, with businesses neglecting to keep a keen eye on their competitors' moves. Consequently, they might miss out on valuable insights that could inform their own strategy. They might fail to recognise shifts in competitive positioning, new product launches, or strategic partnerships that could threaten their market position.

Misunderstanding the Market

The third significant problem arising from subjectivity in business is a misunderstanding of the market. When we're deeply entrenched in our businesses, it's easy to lose sight of the broader market perspective. Business owners may project their own preferences onto their customer base, assuming that what appeals to them will naturally appeal to their customers too. This assumption, however, is often misguided.

Market trends, customer preferences, and buyer behaviours can vary greatly and change rapidly. Relying on personal assumptions rather than robust market research can lead to a severe misunderstanding of what customers actually want and need. This disconnect can result in ineffective marketing strategies, misaligned product development, and ultimately, unsatisfactory business performance.

In the following sections, we'll delve into the repercussions of these sub-problems, provide real-world examples of businesses that successfully overcame them, and outline strategies to foster a more objective approach to business decision-making.

The Ripple Effect: How Subjectivity in Decision-Making Undermines Business Growth

Understanding the damaging effects of subjectivity in business is crucial to combating it. Each of the problems outlined in the previous section - resistance to change, underestimating competition, and misunderstanding the market - can significantly impact a business's bottom line and future prospects.

The Consequences of Resistance to Change

Businesses that resist change based on personal biases often find themselves stuck in outdated practices that hinder productivity and innovation. What's more, these businesses may miss opportunities to capitalise on new market trends or technological advancements. This resistance, while providing short-term comfort, can lead to long-term stagnation and eventual decline.

“Resistance to change does have effects on organisational change management. Resistance emerges in different and unexpected forms. It can be individual or at organisational level; it may be organised or unorganised. It can be overt or covert.” Tahir Abbas, Change Management Insights

For instance, consider a business owner who steadfastly sticks to traditional advertising methods, rejecting digital marketing due to a personal dislike of social media. This bias can cause the business to miss out on reaching a wider audience and attracting new customers. In the long run, resistance to change can result in missed opportunities, decreased competitive advantage, and diminished market presence.

The Fallout from Underestimating Competition

Failing to objectively assess the competitive landscape can have serious repercussions. Businesses might overlook the need to innovate and differentiate their offerings, leading to a decline in market share as competitors take the lead.

Blockbuster once stood as a prominent film and video game rental service provider. At the height of its success, it had over 9,000 branches worldwide and employed 84,000 individuals. Their extensive and diverse range of titles set them significantly apart from most competing rental outlets.

However, the emergence of Netflix and the rise of on-demand streaming signalled the need for a shift in Blockbuster's business model, a change that regrettably never materialised. Blockbuster failed to adapt to the changing landscape, a trend that would eventually lead to its demise. In the words of their former Marketing Communications leader, Jonathan Salem Baskin: "While digital transformation undoubtedly affected Blockbuster's operations, it wasn't the cause of its downfall; the responsibility for that lies with Blockbuster itself."

Consider the case of a company that underestimates a competitor's new product, dismissing it as a passing fad rather than recognising it as a significant market disruptor. By the time they realise the product's impact, it might be too late to respond effectively. The result? Lost customers, eroded market share, and a tough uphill battle to regain their position.

The Damage from Misunderstanding the Market

Misreading market trends and customer needs can have devastating effects on a company's success. Businesses risk wasting resources on products or services that don't resonate with their target audience, while missing out on the chance to meet real customer needs.

For example, a business owner might launch a product based on their personal interests, without sufficient market research to validate demand. The result could be a lacklustre product launch, with low sales and negative customer feedback. The financial loss can be significant, not to mention the damage to the company's reputation.

In sum, the impact of business owners' subjectivity extends beyond the immediate decision-making process. It has the potential to influence the very trajectory of a company's growth and success. In the next section, we'll explore how businesses can rise above these challenges and make decisions that are grounded in objectivity and informed by data.

7 Ways to Mitigate Subjectivity and Propel Business Growth

Combatting subjectivity in business decision-making is not about eliminating emotion or personal investment from the equation; it's about balancing these elements with objectivity and a data-driven approach. Here are seven strategies that can help business owners mitigate the impacts of subjectivity, fostering a more balanced, growth-oriented decision-making process.

1. Embrace Continuous Learning

Cultivate a mindset of continuous learning and curiosity. Stay updated with the latest industry trends, technological advancements, and business strategies. This ongoing education can help to challenge ingrained beliefs and open up new perspectives.

2. Implement Data-Driven Decision Making

Make data your ally. Using data to inform decisions can help reduce the influence of personal biases. This could involve leveraging customer analytics, conducting market research, or tracking competitive activity. Make data analysis a routine part of your decision-making process.

3. Seek Diverse Perspectives

Engage with a diverse range of voices within and outside your business. Different perspectives can challenge your assumptions and provide a more rounded view of the business landscape. This could involve seeking feedback from employees, consulting with industry peers, or even hiring an external consultant for an unbiased assessment.

4. Cultivate Emotional Intelligence

Develop emotional intelligence to better understand and manage your emotions in decision-making. This includes being aware of how your biases can influence decisions, learning to regulate these biases, and developing empathy to better understand customers and competitors.

5. Practice Strategic Foresight

Strategic foresight involves anticipating future scenarios and planning accordingly. Regularly envision where you want your business to be in five, ten, or even twenty years, and consider what steps you need to take to get there. This can help to challenge short-term biases and foster a more forward-looking approach.

6. Encourage Innovation

Create a culture that encourages innovation and is open to change. Reward employees for suggesting new ideas or solutions. Recognise that failing is part of the innovation process, and use these experiences as opportunities for learning and growth.

7. Re-evaluate Regularly

Periodically reassess your business strategies and decisions. Are they yielding the expected results? If not, be willing to pivot and adapt. Constant re-evaluation helps keep your strategies aligned with market realities and ensures that decisions made in the past aren't limiting your future growth.

Implementing these strategies can help mitigate the risks of subjectivity in decision-making, fostering a more balanced, objective approach that aligns with your business's growth objectives. However, remember that change doesn't happen overnight; it requires commitment and persistence. In the following section, we'll share some real-world examples of businesses that have successfully navigated these challenges and reaped the rewards of objectivity in their decision-making.

Case Study: An Innovative Response to the Unprecedented Challenges of 2020

A prime example of a business navigating subjectivity and employing objective, data-driven decision-making is Zoom Video Communications. The year 2020 saw an unprecedented shift to remote work due to the COVID-19 pandemic, leading to a surge in demand for video conferencing software. Zoom, originally designed for corporate use, found itself in a unique position to cater to this new market demand.

“We ramped up to meet the incredible demand, working around the clock to add network capacity and provide support to everyone new to Zoom.” Eric Yuan, Zoom

Recognising the growing trend of remote work and online social events, Zoom adapted quickly. It temporarily removed its 40-minute limit for free meetings during global celebrations such as Thanksgiving, allowing people to connect with family and friends despite the pandemic restrictions. This move, while seemingly counterintuitive from a revenue perspective, helped Zoom to capitalise on a rapidly emerging trend and bolster its public image.

From a growth marketing perspective, Zoom demonstrated astute market awareness and agility in response to rapidly changing circumstances. Rather than sticking with their original corporate focus (which could have been a subjective decision based on past success), they acknowledged the new reality and adapted their product offering to cater to a broader user base.

Furthermore, Zoom bolstered its security measures in response to 'Zoombombing' incidents, demonstrating that they were listening to user feedback and were willing to make necessary changes - a testament to their commitment to continuous improvement.

By taking these steps, Zoom was able to significantly increase its user base, brand recognition, and market share in a short period. This real-world example underscores the power of objective, data-informed decision-making and how it can drive business growth despite unprecedented challenges.

Zoom's approach exemplifies how businesses can successfully overcome potential bias, be that resistance to change or a limited understanding of the market, and utilise objective analysis to navigate towards growth.

Key Insights to Overcoming Subjectivity in Business Growth

1. Awareness of Bias: Being aware of your subjective biases is the first step towards mitigating their impact. Remember, every business owner is prone to biases; what matters is how you address them.
2. Importance of Data: Utilising data in your decision-making process can offer an objective perspective, helping to balance personal biases and make informed decisions.
3. Value of Diverse Opinions: Encouraging diverse viewpoints can broaden your understanding and challenge preconceived notions. This could come from employees, external consultants, or even customers.
4. Need for Adaptability: Being open to change and ready to adapt is key in today's dynamic business environment. Embracing new trends and technologies can keep your business competitive and forward-looking.
5. Continuous Evaluation: Regular reassessment of your business strategies ensures they stay aligned with market realities. Be willing to pivot and adapt as needed.

The Path Forward: Inviting Objective Growth

As we've explored in this piece, the subjectivity of business owners can be a double-edged sword. On the one hand, it is that personal passion and unique vision that often drives a business's inception and early growth. On the other hand, unchecked personal biases can obstruct a business's potential for sustained growth and innovation.

But, fear not, the challenge of overcoming subjectivity is not insurmountable. By being aware of our biases, leveraging data, inviting diverse perspectives, fostering adaptability, and committing to continuous re-evaluation, we can ensure our businesses are not shackled by subjectivity, but propelled by informed, objective decision-making.

We live in a world that's more connected and data-rich than ever before. The tools to harness this data, and the expertise to analyse it, are more accessible than you might think. As business leaders, we have an incredible opportunity to use these resources to inform our decisions, shape our strategies, and ultimately, steer our businesses towards sustained growth.

This is where growth marketing comes into play. It's not just about generating leads or boosting sales in the short term. Growth marketing is about embracing a holistic, data-driven approach that fuels long-term business growth and resilience.

If you're ready to rise above personal bias and take your business to new heights, it's time to take the next step. It requires courage to accept that we don't have all the answers and humility to seek outside help.

Are you objective enough to admit that? If so, The Growth Guys are here for you. We are growth marketing specialists dedicated to helping businesses like yours harness the power of objective, data-driven decision-making. We offer tailored marketing solutions designed to unlock your business's true potential and set you on a path to sustainable growth.

Contact The Growth Guys today and discover how a fresh, objective perspective can fuel your business's growth online. Embrace the challenge, rise above subjectivity, and let's grow together.