A technique for avoiding decision bias is to request that managers show more of their cards: some companies, for instance, demand that investment recommendations include alternatives, or “next-best” ideas. This approach is useful not only to calibrate the level of a manager’s risk aversion but also to spot opportunities that a manager might otherwise consider insufficiently safe to present to senior management.
Author: Dan P. Lovallo
Source: “Distortions and deceptions in strategic decisions”
Original Publication: The McKinsey Quarterly
Subjects: Finance, Management
Source: “Distortions and deceptions in strategic decisions”
Original Publication: The McKinsey Quarterly
Subjects: Finance, Management
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