In today’s business world, where decision making is expected, as we used in a business-as-usual sections for decades with only occasional periods of recession and other small dent street. There are dozens of prejudices that affect our decision, but some of those prejudices influence our perception more than others in dynamic environments. Such prejudice is to be optimistic. We tend to our own performance, or the ability to overestimate the challenges. We also tend to be optimistic about the future.

Excessive optimism bias

When hiring a sales manager may over-optimism a positive feature that can contribute to success. But making the decision, can cause flying colors and strategic plans behind the emergency meeting the challenges before us. Fortunately, the analysts and shareholders two rational actors who demand of us, in a rational way to act. This could partly explain why tempered by smart people, private companies outperform public companies. Likewise, companies with the active influence and rational investors such as funds or withdrawing Venture Capital, better than other private peer support. These private investors have a significant effect on the rational behavior.

rational decision

In a recent McKinsey Case for Behavioral strategy points significantly, rationality and behavior are monitored regularly in the investment market and, perhaps more predictable and the prospects for financial markets. However, we do not have the same rigorous analysis of the behavior of our leaders’ decisions. If the market shows a certain pattern, a trading algorithm that allows us to decide to sell or buy. However, as the economy ebbs and tide, we have no “black box” or hard and fast rules to improve our prediction capabilities.’s strategic decision-makers more influenced by, but can not understand the prejudices that inform their decision making, is the study by McKinsey.
» Read more: Removing Biases in Business Scanning & Strategic Planning