Strategic Biases, Frameworks and Organizational Design for Change
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Cognitive and Strategic Biases
Biases appear in the strategic process because:
- They require higher levels of abstraction.
- They challenge the status quo of the organization.
Action biases
Action biases drive people to take action without the required levels of reflection.
Types:
- Excessive optimism
- Overconfidence
- Underestimating or neglecting competitors
How to address:
- Recognize uncertainty
- Encourage dissent and create a safe space for opinions
- Use tools that consider many potential outcomes (scenario modelling, SFA matrix)
Pattern recognition biases
Pattern recognition biases: team members see patterns where there are none or fail to recognize existing ones.
Types:
- Failing to see causal relationships
- Drawing wrong conclusions from observations
- Categorizing unproven