Leaders as Decision Architects

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Publication Date:
May 01, 2015

Everyone from CEOs to frontline workers commit preventable mistakes–from underestimating how long it will take to finish a project to focusing too much on information that supports their current view. It is extraordinarily difficult to rewire the human brain to undo the patterns that lead to such mistakes. But there is another approach: Alter the environment in ways that encourage people to make decisions that lead to good outcomes. Leaders can do this by restructuring how work is performed, say Harvard Business School’s John Beshears and Francesca Gino. In this article, they offer a five-step process for mitigating the effects of cognitive biases and low motivation on decision making: (1) Understand the kinds of systematic errors people make and the factors that affect motivation. (2) Define the problem to determine whether behavioral issues are at play. (3) Diagnose the specific underlying causes. (4) Design a way to tweak the environment to reduce or mitigate the negative impact of cognitive biases and insufficient motivation on decisions. (5) Rigorously test the proposed solution.

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Leaders as Decision Architects

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