Making good decisions is highly challenging. Difficult choices with far-reaching implications often have to be made very quickly, with limited information, and in the face of disagreement about the best course of action. Complicating this further, decisions are not made in prejudice-free or value-free vacuums but are heavily affected by many cognitive, emotional, and organizational […]
The evaluation of leaders has historically been heavily biased toward results: the leaders of well-performing institutions are assumed to be good and the leaders of poorly performing institutions are assumed to be bad. But are results alone the best measure of leadership performance? On many occasions, leaders play little role in a company’s success and […]
Algorithms are very powerful search tools: they have the ability to almost instantaneously sift through massive numbers of data points and order that information into a form that can help answer questions and decide courses of action. Despite their many positive uses, algorithms can generate self-supporting conclusions which, over time, can progressively narrow search outcomes […]
An important component of business and human progress is framing and acting on the lessons that are drawn from experience. While every approach to interpreting experience has its own strengths and weaknesses, I believe that the best approach is a process of structured reflection where we do not merely react to information based on intellectual […]
A business plan is an organizational roadmap to take a company from where it is today up the often steep mountain to a distant corporate goal. This roadmap, with its vision of the future, milestones and measurements of success, is a vital part of corporate strategy execution. A good business plan has many elements, including […]
Part 1 of this article looked at general biases in decision-making, Part 2 set forth biases that can affect perceptions of market and investment dynamics and Part 3 discussed biases that can be found in the process of investment selection and valuation. This final Part 4 of the article will discuss ways to reduce investment […]
Part 1 of this article identified general biases in decision-making and Part 2 set forth biases that can affect investors’ perceptions of market and investment dynamics. This Part 3 of the article will discuss biases that can be found in the process of investment selection and valuation. Investment Selection ● Market Point of View Bias. […]
Part 1 of this article identified some general types of bias that can have a significant impact on decision-making. This Part 2 of the article will look more specifically at how biases can affect decision-making in the area of investments. Market and Investment Dynamic Biases While some investment decisions are made on impulse, most investments […]
A very colorful component of the Chinese language is what are known as “chengyu” (成語) which are four character maxims that pithily express philosophical, moral and practical insights. There are thousands of these maxims that can be applied to all types of situations. One well known chengyu is “jing di zhi wa” (井底之蛙) which literally […]
