In our second week of Dilbert does behavioural economics, we focus on one of the most powerful and challenging issues in business: Confirmation bias.
Confirmation bias is the tendency to seek evidence consistent with a prior belief. In the above strip, Dilbert’s boss demonstrates this bias to a tee when he assumes his astute managerial skills are what caused a minuscule (and clearly unrelated) improvement in the company’s stock price.
This is what happens, when all evidence in your strategy document points to one direction – the world is never that black and white. Or when someone has an innovative idea and there seems to be many good reasons to do it and few come to your mind not to – in fact you know this in the form of the advice “kill your darlings”.