Strategy. Innovation. Brand.

heuristics

A Joke About Your Mind’s Eye

You should see my internal movies.

You should see my internal movies.

Here’s a cute little joke:

The receptionist at the doctor’s office goes running down the hallway and says, “Doctor, Doctor, there’s an invisible man in the waiting room.” The Doctor considers this information for a moment, pauses, and then says, “Tell him I can’t see him”.

It’s a cute play on a situation we’ve all faced at one time or another. We need to see a doctor but we don’t have an appointment and the doc just has no time to see us. We know how it feels. That’s part of the reason the joke is funny.

Now let’s talk about the movie playing in your head. Whenever we hear or read a story, we create a little movie in our heads to illustrate it. This is one of the reasons I like to read novels — I get to invent the pictures. I “know” what the scene should look like. When I read a line of dialogue, I imagine how the character would “sell” the line. The novel’s descriptions stimulate my internal movie-making machinery. (I often wonder what the interior movies of movie directors look like. Do Tim Burton’s internal movies look like his external movies? Wow.)

We create our internal movies without much thought. They’re good examples of our System 1 at work. The pictures arise based on our experiences and habits. We don’t inspect them for accuracy — that would be a System 2 task. (For more on our two thinking systems, click here). Though we don’t think much about the pictures, we may take action on them. If our pictures are inaccurate, our decisions are likely to be erroneous. Our internal movies could get us in trouble.

Consider the joke … and be honest. In the movie in your head, did you see the receptionist as a woman and the doctor as a man? Now go back and re-read the joke. I was careful not to give any gender clues. If you saw the receptionist as a woman and the doctor as a man (or vice-versa), it’s because of what you believe, not because of what I said. You’re reading into the situation and your interpretation may just be erroneous. Yet again, your System 1 is leading you astray.

What does this have to do with business? I’m convinced that many of our disagreements and misunderstandings in the business world stem from our pictures. Your pictures are different from mine. Diversity in an organization promotes innovation. But it also promotes what we might call “differential picture syndrome”.

So what to do? Simple. Ask people about the pictures in their heads. When you hear the term strategic reorganization, what pictures do you see in your mind’s eye? When you hear team-building exercise, what movie plays in your head? It’s a fairly simple and effective way to understand our conceptual differences and find common definitions for the terms we use. It’s simple. Just go to the movies together.

 

The Last of Thumb Thinking

Sure it’s dangerous. But we’re in control. No problem!

Heuristics are simply rules of thumb. They help us make decisions quickly and, in most cases, accurately. They help guide us through the day. Most often, we’re not even aware that we’re making decisions. Unfortunately, some of those decisions can go haywire — precisely because we’re operating on automatic pilot. In fact, psychologists suggest that we commonly make 17 errors via heuristics. I’ve surveyed 11 of them in previous posts (click here, here, and here). Let’s look at the last six today.

Optimistic bias — can get us into a lot of trouble. It leads us to conclude that we have much more control over dangerous situations than we actually do. We underestimate our risks. This can help us when we’re starting a new company; if we knew the real odds, we might never try. It can hurt us, however, when we’re trying to estimate the danger of cliff diving.

Hindsight bias — can also get us into trouble. Everything we did that was successful is by dint of our own hard work, talent, and skill. Everything we did that was unsuccessful was because of bad luck or someone else’s failures. Overconfidence, anyone?

Elimination by aspect — you’re considering multiple options and drop one of them because of a single issue. Often called, the “one-strike-and-you’re-out” heuristic. I think of it as the opposite of satsificing. With satsificing, you jump on the first solution that comes along. With elimination by aspect, you drop an option at the first sign of a problem. Either way, you’re making decisions too quickly.

Anchoring with adjustment — I call this the “first-impressions-never-die” heuristic and I worry about it when I’m grading papers. Let’s say I give Harry a C on his first paper. That becomes an anchor point. When his second paper arrives, I run the risk of simply adjusting upward or downward from the anchor point. If the second paper is outstanding, I might just conclude that it’s a fluke. But it’s equally logical to assume that the first paper was a fluke while the second paper is more typical of Harry’s work. Time to weigh anchor.

Stereotyping — we all know this one: to judge an entire group based on a single instance. I got in an accident and a student from the University of Denver went out of her way to help me out. Therefore, all University of Denver students must be altruistic and helpful. Or the flip side: I had a bad experience with Delta Airlines, therefore, I’ll never fly Delta again. It seems to me that we make more negative stereotyping mistakes than positive ones.

All or Nothing — the risk of something happening is fairly low. In fact, it’s so low that we don’t have to account for it in our planning. It’s probably not going to happen. We don’t need to prepare for that eventuality. When I cross the street, there’s a very low probability that I’ll get hit by a car. So why bother to look both ways?

As with my other posts on heuristics and systematics biases, I relied heavily on Peter Facione’s book, Think Critically, to prepare this post. You can find it here.

 

 

More Thumb Thinking

Us versus them.

Remember heuristics? They’re the rules of thumb that allow us to make snap judgments, using System 1, our fast, automatic, and ever-on thinking system. They can also lead us into errors. Last time I wrote about heuristics (click here), we looked at three of the 17 different error categories: satisficing, temporizing, and availability. Let’s look at four more today.

Affect — what’s your first response? What’s your initial impression? What does your gut tell you? These are all questions about your affect heuristic — more commonly known as gut feel. System 1 usually has the first word on a decision. If you let System 1 also have the last word on the decision, you’re making an affect-based decision. It may be a good decision — or maybe not. If you want to double check the accuracy of your affect, you need to fire up System 2. People with “poor impulse control” often stick with System 1 only and don’t engage System 2.

Simulation — if it’s easy to imagine a given outcome, then it’s more likely that outcome will occur, right? Not necessarily. At least in part, it depends on how good your imagination is. Salespeople can use simulation to very good effect: “Imagine how you would feel in this new suit.” “Don’t you think it would be great to drive a car like this?” “Imagine what other people will think of you when they see you on this motorcycle!” Simulation simply invokes your imagination. If it’s easy to imagine something, you may convince yourself that it’s actually going to happen. You could be right or you could be a victim of wishful thinking. Before you make a big decision, engage System 2.

Representation — “She looks like my ex-girlfriend. Therefore, she probably acts like my ex-girlfriend.” You notice that there’s a similarity between X and Y on one dimension. Therefore, you conclude that X and Y are similar on other dimensions as well. You’re letting one dimension represent other dimensions. This is essentially a poor analogy. The similarity in one dimension has nothing to do with similarities in other dimensions. Generally, the more profound a similarity is, the more likely it is to affect other dimensions. Physical appearance is not very profound. In fact, it’s apparently only skin deep.

Us versus Them — “The Republicans like this idea. Therefore, we have to hate it.” Unfortunately, we saw a lot of this in our recent elections. In fact, politics lends itself to the us versus them heuristic — because politics often boils down to a binary choice. Politics is also about belonging. I belong to this group and, therefore, I’m opposed to that group. This is often referred to as identity politics and is driven by demonstrative (as opposed to deliberative) speeches. In warfare, the us versus them heuristic may be good leadership. After all, you have to motivate your troops against a determined enemy. In politics, on the other hand, it smacks of manipulation. Time to fire up System 2. (For my article on demonstrative and deliberative speeches, click here).

Do you see yourself in any of these heuristics? Of course you do. All of us use heuristics and we use them pretty much every day. It’s how we manage “reality”. Unfortunately, they can also trick us into mistakes in logic and judgment. As you become more aware of these heuristics, you may want to engage System 2 more frequently.

To prepare this article, I drew primarily on Peter Facione’s Think Critically. (Click here)

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