Confirmation Bias and Its Effect on Business

What is confirmation bias?

Confirmation bias is the tendency to process information and interpret it to be consistent with your already existing beliefs. Confirmation bias can lead to errors and is motivated by wishful thinking. Read more about what a confirmation bias is – here.

How can confirmation bias have an impact on business?

Confirmation bias can have a huge impact on business, it can stop you from moving forward with plans. Have you ever been sat in a meeting and had an uncomfortable feeling as someone has been discussing new ideas or process?

That feeling of being uncomfortable comes when already existing beliefs and theories are proven wrong. For example, if you think new technology is expensive and difficult to use, any ideas involving new technology will make you feel uncomfortable.

How can confirmation bias be overcome?

Being aware you have a confirmation bias can help you overcome it. If you are in a situation and feel uncomfortable or uneasy, take a step back and ask yourself why you feel that way. Make sure you get to the root of the problem.

If you need to make big decisions, consult your team ask them what they think. Try to avoid leading questions when consulting your team as they can sway decisions.

Rely on data and facts to reach conclusions over opinions this, in turn, should mean you make the best decision for the firm rather than the one you’re comfortable with.