Information for decision making: Considering bias, prejudice and evaluation

Decisions

Evidence based

Supported by information that is credible, authoritative, reliable and current

How?

INDIVIDUAL

Gather date Decide

ORGANIZATIONAL

Gather data Share Discuss Decide

Barriers to effective DM

Bias and prejudiceMulti-layered process

How do businesses actually use information? Gather it? Analyze it? Decide with it?

Information, management and analysis Intimately tied together Example: Strategic Planning Gather information in order to make

decisions related to gaining competitive advantage

Scope of organizational activities Matching organizational activities to

environment Matching organizational activities to

resources Allocation of resources Values of the organization Organizational priorities

Strategic: Leaderships vision of where the organization should be headed

Tactical: Implementation of strategic by managers

Operational: Day to day activities

It’s hard for most people Too much work Lack of know how Pressure for quick judgment Highly ambiguous situation Incrementally received information Slow processing of data and information Bias and prejudice?

Successful insights that propel organizations forward via better decision making

Information analysis is the key to both information overload reduction and better decision making

Yet few people are good at it and it is difficult Like riding a bike

Analytical framework

(defined decision or purpose)

Information collection: What

are the facts?

What does the information/facts

mean?Implications

Facts are underpinnings of process So are opinions (expert, credible,

authoritative ones!) Developing comfort, self awareness and

critical thinking during execution of the process also related to accuracy

Escalating commitment: Too committed to the point where rationality loses out (Apple Maps?)

Groupthink: Poor decisions self replicate because no one is questioning premises or outcomes (Romney campaign?)

Prior hypothesis: Confirmation bias! (Student projects?)

Oversimplification: Failing to engage in rigorous application of data; Sloppy interpretation of meaning

Representativeness: Generalizations or inductive reasoning based on inadequate date (small sampling for example)

Recognizing the importance of data collection and analysis (analysis based upon data)

Creativity Deductive and inductive reasoning Alternative thinking/metacognition Understand the existing models (SWOT,

PESTLE, Porters 5 Forces) as well as newly created ones

Understand there will be gaps and blind spots Know when to stop!