I was recently reminded how people can make things difficult. We’re biased! Sure, our bias may be hidden, unintentional and most times incognizant, but it can be very problematic. Being aware and understanding this human shortfall when making business decisions can inform behaviors that help re-frame, analyze and describe problems to incite a more rational response.
How people make things difficult:
1. People know more than they can say.
Imagine if someone instructed you verbally how to design a car. They told you everything verbally; everything that’s required. Would they tell you the windows need to go down? Would they tell you the steering wheel needs to turn the front wheels?
2. People have a greater aversion to loss than their propensity to gain.
When is the last time you flew down the highway at excessive speed to get to your destination 5 minutes early? How many times have you taken uncalculated risks to avoid being 5 minutes late?
3. People are great at recognizing patterns where there are none.
Where things occur randomly or without relation, people will recognize a pattern. Making matters worse, people are predisposed to recognize a pattern when they expect to see a specific pattern or outcome.
4. People have a tendency to discount the value of future rewards in proportion to the length of the delay.
For example, when offered $50 today or $100 a year from now, many people will choose the $50 today. However, offer $50 in five years or $100 six years from now and most people will choose the $100 in six years. The same decision is viewed differently when considered fives years in advance.
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