cognitive bias - exploring what goes on between your ears

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Presented by Cognitive Bias Exploring what goes on between your ears Dan Neumann AgileIndy 2016

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Page 1: Cognitive Bias - Exploring What Goes on Between Your Ears

Pre s e n t e d b y

Cognitive BiasExploring what goes on between your ears

Dan Neumann

AgileIndy 2016

Page 2: Cognitive Bias - Exploring What Goes on Between Your Ears

Your Greatest Tool

https://www.flickr.com/photos/learningissocial/

Page 3: Cognitive Bias - Exploring What Goes on Between Your Ears

Dan Neumann

If you have questions or would like more information, feel free to contact me.

• www.agilethought.com• [email protected]• www. linkedin.com/in/meetdanneumann• @DanRNeumann• 574-514-3285• http://neumanagementllc.com/blog/

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Page 4: Cognitive Bias - Exploring What Goes on Between Your Ears

Imagine…

Page 5: Cognitive Bias - Exploring What Goes on Between Your Ears

Anchoring•Over-Weight the First Information•Make Decisions while Anchored•Especially a problem under pressure

https://www.flickr.com/photos/chris_cardew/

•Planning Poker•Silent Writing•Start with “Why”•Sleep on it

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Two Categories

https://www.flickr.com/photos/jeremybrooks/https://www.flickr.com/photos/janellie23/

Ego BiasInformation Bias

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Imagine…

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Optimism BiasGenerally believe ourselves to be less prone to certain events.

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Optimism Bias and Selective Updating

Representative of Group 1:Learns the actual chance is 50%

“ How unrealistic optimism is maintained in the face of reality” Tali Sharot, Christoph W Korn & Raymond J Dolan. NATURE NEUROSCIENCE, November 2011

Representative of Group 2:Learns the actual chance is 10%

Believes chance of cancer is 30%

New Belief: 33% New Belief: 22%

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“ How unrealistic optimism is maintained in the face of reality” Tali Sharot, Christoph W Korn & Raymond J Dolan. NATURE NEUROSCIENCE, November 2011

It’s Biological

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Combat: Make The Processing More Complex“Beyond Budgeting”•Estimate•Budget•Expected outcome

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Debiasing: Multiple Explanation1. “Consider the Opposite”2. Consider any Alternative3. Alternative Plausibility

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Related to Planning FallacyAddress Planning Fallacy with Reference Class Forecasting

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Availability Bias•We judge how important (or how likely) something is by how easy it is to think of an example• In particular, vivid, unusual, or emotionally charged examples stick.

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Combating Availability Bias•Research •Beware the most recent/memorable

•Personas•Experiments

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Two Categories

https://www.flickr.com/photos/jeremybrooks/https://www.flickr.com/photos/janellie23/

Ego BiasInformation Bias

AnchoringOptimismAvailability

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Illusory SuperiorityThe “Above Average” Bias

NOTE: Don’t call it Lake Wobegon Effect:http://www.publicradio.org/columns/prairiehome/posthost/2013/04/01/the_lake_wobegon_effect.php

Image: http://bit.ly/20qozUI

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Attribution BiasMy Your

Success

Failure

*Not true of all cultures

Innate Abilities Circumstances

Bad Luck Incompetence

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Dunning-Kruger EffectUnskilled Highly Skilled

Self-Assessment

Side-Effect

Overestimated Underestimated

Overconfidence Frustration with Others

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Moderating Ego BiasCreate Safety“Regardless of what we discover, we understand and truly believe that everyone did the best job they could, given what they knew at the time, their skills and abilities, the resources available, and the situation at hand.” --Norm KerthProject Retrospectives: A Handbook for Team Review

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Moderating Ego Bias•Model Getting Feedback•Evaluate the work, not the individual•Bring Data•Broaden your perspective

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In-Group/Out-Group Bias• Positive characters ascribed to their own group•Negative characteristics ascribed to other groups• Especially when competing for resources!

Mitigation Strategies:•Get a broader definition of “my group”• Address the resource scarcity

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Choice-Supportive Bias•Highlight positive attributes of our selection•Downplay positive attributes of alternatives

Mitigation Strategies:•Regular Reviews•Engage with outsiders

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Confirmation Bias (a.k.a.,“Myside Bias”)•Seek information that supports our beliefs or hypotheses•Co-opt Ambiguity

Mitigation Strategies:•Additional Opinions•“Yes, and…”

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Social Desirability Bias•Over-report “good” behavior•Underreport “bad”

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Hawthorne EffectPeople tend to behave differently when they are being observed.

Use it for Advantage:•Video during meetings•Sprint Reviews

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https://www.flickr.com/photos/mrsdkrebs/

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Agony by wallsdontlie

Poison and Vomit by Thomas Hawk

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31https://www.youtube.com/watch?v=3RsbmjNLQkc

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We discussed:AnchoringOptimism BiasAvailability BiasIllusory SuperiorityAttribution BiasDunning-Kruger Effect

In-Group/Out-GroupChoice-SupportiveConfirmationSocial DesirabilityHawthorne EffectBias Against Creativity

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Summary of Strategies• Show your cards all at

once: • Planning Poker • Silent Writing • Start with “Why” • Sleep on it • Make the issue more

complex (e.g., Beyond Budgeting)

• Multiple Explanation • Reference Class

Forecasting

• Research  • Experiments • Personas • Create Safety  • Model Getting Feedback • Bring Data • Evaluate the work, not the

individual • Broaden your perspective • Broaden the definition of

“My Group"

• Address the sense of resource scarcity

• Review your choices. • Include outsiders • Create additional options • Yes, And • Take advantage of

Hawthorne Effect • Reduce Uncertainty to

allow for Creativity

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Blind Spot Bias• When one sees the impact of biases on the judgment of

others, but fail to see the impact of biases on one’s own judgment• Survey of 600 Americans, 85% thought they were less

biased than the average American

Page 34: Cognitive Bias - Exploring What Goes on Between Your Ears

Dan Neumann

If you have questions or would like more information, feel free to contact me.

• www.agilethought.com• [email protected]• www. linkedin.com/in/meetdanneumann• @DanRNeumann• 574-514-3285• http://neumanagementllc.com/blog/

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