How to reduce decision biases

INDIVIDUALS tend to make biased decisions. For instance, heuristics guide our judgements to help us cope with human limitations in cognition and complex circumstances. Unfortunately, heuristics may result in cognitive biases that deviate from rational thinking with potentially severe errors.

Directors on corporate boards are no different. They also have decision biases. Working towards reducing decision biases should be a focus of high-impact boards. This is more important with the increasing volatility, uncertainty, complexity and ambiguity of the global business landscape.

Common decision biases in corporate boards

Research on human judgment and decision science has ident…