Food processors and brand owners frequently need to deal with complex decisions. How can we increase output, reduce costs, sell more and improve profitability?
As we go through the decision making process, many biases affect the quality of our decisions. As a result, bad decisions can easily be made, even after analyzing a multitude of factors and investing time, money and resources.
Here are some techniques, courtesy of Stanford University’s Center for Professional Development.
Most biases fall into six categories:
There are three “megabiases” that can invade a company’s culture, becoming organizational biases that ultimately undermine performance.
1. ILLUSION OF DECISION QUALITY
As humans we have a tendency to believe we are making good decisions, when in fact we are not. Why does the quality of our decisions matter? Because a good decision is more likely to lead to a good outcome.
2. COMFORT ZONE
From an individual perspective, our personality dictates how we approach a problem and make decisions. We work within our comfort zone, the realm of our knowledge and experience. For example, when faced with the problem of reversing declining sales, a marketing professional would see it as a marketing problem, when in fact it could be a distribution issue.
3. AGREEMENT TRAP
When solving problems in groups, agreement is sought on decisions. It is assumed that when a consensus is reached, a good decision has been made. In reality, the quality of a decision is not related to achieving consensus. In a group dynamic, the pressure is on to take action and get the job done; add to that the common desire to be liked, by agreeing with our peers.
Next time you encounter a challenge, apply these tactics to improve the quality of your decisions, because better decisions make a better business.
As a packaged foods consultant, Birgit Blain makes food products more marketable. Her experience includes 17 years with Loblaw Brands and President’s Choice®. Contact her at BBandAssoc.com/contact-us/
© Birgit Blain