In our pre-term class on Leadership in Organizations, we spent a few hours on personal and organizational decision making. A recommended tactic was to assign a team member to play “devil’s advocate” on all important decisions. This move is designed to eliminate confirmation bias and “yes-and-yes” decisions.
So, what are “yes-and-yes” decisions?
One of the nicest things about being in graduate management school is that the classes have a lot to do with many of the things I have been reading about over the past few years. So, I’m excited to share some of my favorite learnings from classes under the “MBA Learnings” series.
Today’s learning is a concept called “Omitted variable bias.” The origin of this idea lies in statistics but we all see this nearly every day of our lives. Most of the false claims we hear fall prey to omitted variable bias. And, let’s face it, we hear many false claims.
When we encounter a situation or problem, we always have an intuitive response. And, one of the biggest learnings in the first two weeks of our marketing management class has been to remind ourselves to “ask the customer.”
