When leaders do not recognise their cognitive biases, it can be extremely dangerous, not only to them, but the team, and the organisation.

Leaders must remove their blinkers and be aware of their biases, how to avoid them, and how to overcome them.

Cognitive biases

We can look at the impact of cognitive biases regarding System 1 and System 2 thinking. Daniel Kahneman wrote about the two types of thinking in his 2011 book, “Thinking, Fast and Slow.”

System 1 thinking is near instantaneous, automatic, fast, and associative. It takes place with little effort. It is driven by instinct and prior learning.

An example is understanding a simple sentence. It knows fire is hot and ice is cold. It knows that the 6ft 5” male person with grey hair, brown eyes, and a square chin, is your manager. It can locate the source of a specific sound. It can solve 2+2=?

System 2 thinking is slower and driven by deliberation and logic. System 2 thinking is used when you need to work something out. It is conscious and logical.

An example is playing chess, counting the number of the letter A in the word abracadabra, and solving 17x24=? and parking in a narrow space.

The challenge is that our brains are lazy and will revert to System 1 thinking for answers. System 1 is where our unconscious biases lurk. Most of us would like to identify ourselves with System 2, but a vast amount of research shows that System 1 is in charge 95% of the time.

Kahneman said:

“We are vulnerable to biases when System 1 thinking forms a narrative that conveniently connects the dots and doesn’t express surprise. Because of the cognitive ease by System 1 thinking, System 2 is not invoked to question the data. It merely accepts the conclusions of System 1.”

Therefore, if we cannot acknowledge our cognitive biases, and remove our blinkers, they can lead to poor decision-making, bad planning, and ineffective leadership.

In this week’s, newsletter and next week's, I want to explore ten of the cognitive biases I believe every leader must be aware of. Next week I will explore some more but also look at how you can avoid them or overcome them.

Here are the first six.

·       Proximity bias

·       Confirmation bias

·       Affinity bias

·       Bandwagon bias

·       Status quo bias

·       Blind spot bias

Proximity bias

Proximity bias occurs when you give preferential treatment to those who are physically closest to you. This has become particularly prevalent in remote working arrangements.

It is dangerous because it can create a two-tier system – those working in the office and those working remotely.

Research has shown that many employees are concerned that working remotely will negatively impact their career progression due to proximity bias. They fear that the boss (note not using term leader) will favour those they can see and will give them good assignments, furnish them with the best projects, and put them forward for promotion.

A Unispace 2023 survey “Returning For Good” across 9,5000 employees, 6,650 employers, and 17 countries worldwide, found 84% of employers indicated that the chance to progress in their role will be limited for those employees who are not in the office.

The 2023 Future of Work and Learning Report found that 71% of senior HR leaders and 62% of senior business leaders agree or strongly agree that in-person workers probably benefit from a proximity bias.

Proximity bias can become evident in meetings when some attendees are dialled in remotely and the rest are physically co-located with the boss. Not only does the boss favour the contribution of those in the room, but also assigns tasks to those in the room rather than a remote worker who would be better suited to undertake the task.

Proximity bias is fuelled by the deluded boss’s belief that employees they can see are more productive than those they cannot see, despite research showing that productivity is higher in remote workers than their office counterparts.

Proximity bias is an out-of-sight, out-of-mind mentality.

The tradition of employee in-person and constant presence that permeated our organisation pre-pandemic, formed a mindset that wants to see employees (in the same physical location), manage, and control them. It is an ingrained mindset that must change.

Confirmation bias

Confirmation bias is the tendency to search for, interpret, favour, and recall information in a way that confirms or supports one's prior beliefs or values.

We search for information that supports our pre-existing opinion. We start with a particular viewpoint about something and then search for information that will uphold that view.

Imagine you are watching your sports team, and the referee makes a call that benefits your team. You believe that is a good call. When the referee makes a call that goes against your team, you see that as a bad call. That is confirmation bias at play.

If you have ever conducted research, you know that you should read all the studies that have been undertaken with an objective mindset. The chances are, however, that you have a theory about what you are researching, and confirmation bias can lead you to uncover the studies that support your theory. You may put in terms that favour your theory into search engines. You may closely examine studies supporting your theory and disregard the details in the ones that don’t.

This could play out in the workplace when the CEO has a preconceived belief that investment in a particular ERP system will deliver the biggest benefits. The CEO gathers and directs a team to carry out market research on this system and compare it with others. The research team gathers the data. The CEO’s confirmation bias means that he only wants to get the data from the research that supports his belief. The CEO’s confirmation bias also influences the research team, and they know that the CEO wants a particular set of data to confirm his beliefs. The result is research that is skewed to give the answers that the CEO wants.

Confirmation bias does not allow you to change your perspective and adapt your mindset to the environment.

If you also have affinity bias (coming up next) and you favour a job applicant as a result you may use confirmation bias to ask the types of questions that will enable that person to present themselves in the best light and be awarded the position.

Affinity bias

This is the predisposition we all have, to favour people who remind us of ourselves. We favour those who think like us, look like us, have similar backgrounds and experiences to us, have the same beliefs and value system, share the same educational structure, have the same religion, and share the same interests etc.

When applied to the workplace this can have an impact on the hiring process. Affinity bias can mean that you employ people who think and look like you or went to the same school.  It can influence who you recognise, reward, and promote.

Affinity bias leads us to like, associate with, and recruit people to whom we feel most similar. When we meet someone, we often unknowingly assess how different or similar they are to us. Similarity provides comfort whilst differences can make us feel threatened. We deal with this by living in bubbles We surround ourselves with people who are like us. This bubble will stop you from being a good leader. It results in groupthink as you surround yourself with people who think like you do.

You won’t hear diverse viewpoints or opinions that are different from your own. The like-minded people we associate with confirm what we are thinking. It is dangerous to isolate yourself from ideas that are different to yours and voices that will challenge your thinking. Your affinity bubble will stifle creativity and innovation. You cannot allow affinity bias to influence who you hire, recognise, promote, and reward.

Bandwagon bias

This bias is a form of groupthink. It is when you believe something because other people believe it. It stops you from thinking for yourself and being creative. It stops you from questioning or challenging. It prevents you from making sound decisions.

You adopt a certain mindset, behaviour, or attitude, simply because everyone else is doing it. The more people that do it, the more likely it becomes that more people will “jump on the bandwagon.”

It is important to note that the bandwagon bias may not always be incorrect. What everyone else believes and is saying may be the truth. But, when the bias is wrong, it is dangerous.

Most of us want to conform, be a part of the group, and share the thoughts and ideas of others. We want to fit it.

An example of bandwagon bias is when the executive team must make an important decision. Most of the executive team is in support of one option that is on the table. There are others who have real reservations and concerns but because of bandwagon bias (groupthink), they do not speak up. The decision made turned out to be a disastrous one for the business and could have been avoided if it had been questioned.

Status quo bias

Status quo bias is an emotional bias; a preference for the maintenance of your current or previous situation, or a preference to not undertake any action to change this current or previous state.

This could manifest when you are given the opportunity to take up a new role in another team at your organisation. You become so worried about making the move to the new role, that you reject the opportunity.

It is the status quo bias that makes people resist change. They just want things to stay the way they are. This becomes more prevalent when a large change is underway.

When you have status quo bias, you will see the losses as bigger than the potential gains from a change. You will focus on what you could lose rather than how you may benefit.

Blind spot bias

This bias causes you to be less aware of your own biases than those of others, and you assume that you are less susceptible to biases than others.

The danger of blind spot bias is that you fail to see the impact of biases on your own judgment and decision-making.

An example of this bias playing out is when you review a conflict that has taken place in the workplace. You will believe that your interpretation of it will be fair, while others will be biased.

You could put all the blame for a project failure on your colleagues, failing to recognise the part you had to play in the setback. When you dismiss your personal responsibility, you are exhibiting blind spot bias.

Conclusion

Next week I will look at more biases that leaders can succumb to, and I will also explore how you can avoid or overcome them.