Every day you are faced with multiple decisions, knowing that a single mistake can damage both your company's fortunes and your own. Each educational program focuses on different business topics and concepts related to the agribusiness industry you serve, including: marketing, sales, finance, talent management and strategy.Being a strategic leader isn't easy. #1. the anchoring trap professional#Learn MoreĬheck out our upcoming programs and exceed your professional development goals! Position yourself to excel in your career by attending one of our professional development workshops. Others include the sunk-cost trap, which can cause perpetuation of past mistakes the overconfidence trap, in which the decision-maker overestimates the accuracy of forecasts the recallability trap, which can cause decision makers to give too much weight to recent events and the prudence trap, which can lead decision makers to be overly cautious in making estimates.īeing aware that these traps exist and considering them throughout the decision process can ultimately help decision makers choose to pursue the most sound of the options for their businesses. These are just a few examples of psychological traps that decision makers fall into in the business world. “Always consider various ways to evaluate a situation.” Other Traps “Never look at a problem from only its original frame,” Widmar says. The framing trap happens when options are presented in ways that can change perspective. “When you seek input, avoid sharing your ideas first so the person giving the advice doesn’t fall into the anchoring trap.” Framing Trap “Don’t seek out one-sided information and advice you know will tilt the decision-making process,” Widmar says. The confirming evidence trap refers to seeking out biased advice or information that supports a particular option, and discounting any opposing information.Īvoiding this trap is about seeking out a variety of information from trusted sources and weighing it equally. Widmar says the key is to ask yourself, “If I weren’t currently choosing this option, would I choose it from my alternatives?” Confirming Evidence Trap Settling for what already is can blind the decision maker to superior alternatives. The status quo trap is one in which the decision maker is biased toward options that are similar to the current situation. “Carefully seek others’ input to compare and contrast with your own,” she says. The keys to avoiding them are open-mindedness and critical thinking. They could come from old data or even from stereotypes. In the words of Hammond, Keeney and Raiffa, “The anchoring trap leads us to give a disproportionate weight to the first information we receive.”Īccording to Widmar, anchors come in all forms. The original question surrounding the decision you are trying to make has already created an anchor. The anchoring trap is an easy one to fall for. #1. the anchoring trap series#Keeney and Howard Raiffa offer a series of common psychological traps that affect the way people make decisions. In their 2006 Harvard Business Review Article, “The Hidden Traps in Decision Making,” John S. “Understanding what these traps are and how they affect decision making is critical to understand how people arrive at their conclusions.” “Decision traps are built-in flaws in our thinking,” she says. Psychological traps are easy to fall for when it comes to making business (or any) decisions, says Nicole Widmar, associate professor of agricultural economics at Purdue University. Sometimes the fault for sub-optimal decisions comes not from the decision-making process, the intel gathered or the analysis completed, but rather, the mind of the decision maker. Even in circumstances where analysis is complete and the path forward seems relatively clear, decision-making can be a challenge.
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