Eliminating Mistakes in Business Decision-Making
In both Industrialised Countries and in Developing Countries, business plans fail at an extraordinary rate. For
example, companies spend more than $3 trillion on acquisitions every year, yet the M&A failure rate is between 70% and 90%.
The fundamental point behind this course is that, neuroscientists say, 95% of our thinking is actually unconscious – that is, we’re not even consciously aware that we’re processing thoughts. Further, neuroscientists argue that we also take thinking “shortcuts” – heuristics, more of less “rules of thumb” – to save us the tiring labour of thinking through lots of matters thoroughly and carefully. The problem, from the point of view of corporate decision making, is that these unconscious rules of thumb often mislead us. Board members and Executive Management regularly commit cognitive mistakes, often with disastrous consequences.
Cognitive scientists now believe that there are, extraordinarily, almost 200 unconscious cognitive biases. A prominent example, for instance, is groupthink, when the desire for harmony or for comformity in a group results in an irrational or dysfunctional decision making outcome. After the 2008 Financial Crisis, for instance, government reports in four different countries – the United Kingdom, the United States, Ireland, and Iceland – traced an important element in the banking crisis to be groupthink on the Boards of Directors of even prominent, well-established banks.
Upcoming start dates
30 October, 2023
Who should attend?
Who should attend?
- Board Directors and Senior Management
- Corporate Counsel
- Institutional Investors
- Divisional Heads and Line Managers
- Risk and Compliance Managers
- Corporate Lawyers
- Session 1: Mistakes Abound: A Survey of Common Business Mistakes
- Session 2: GROUP EXERCISE #1: Learning About Our Own Thinking Processes
- Session 3: Mistakes Created by Faulty Thinking Processes
- Session 4: Examining Heuristics: What Are the Unconscious Thinking Mistakes That Cause Trouble or, Worse, Business Failures?
- Session 5: Cognitive Errors: The Anchoring Effect: “Even Irrelevant Numbers Influence Our Decisions!”
- Session 6: Cognitive Errors: The Priming Effect: Influenced by More Irrelevant Stimuli
- Session 7: Cognitive Errors: Confirmation Bias
- Session 8: Cognitive Errors: Hindsight Bias: “I knew it all along!”
- Session 9: Cognitive Errors: The Overconfidence and Optimism Biases
- Session 10: GROUP EXERCISE #2: Do National Cultures Influence Thinking Processes?
- Session 11: Cognitive Errors: Gender Bias
- Session 12: Cognitive Errors: The Availability Bias
- Session 13: Groupthink
- Session 14: Authority Bias
- Session 15: The Halo Effect
- Session 16: Consistency Bias: Self-Serving Reasoning -“Mistakes were made, but not by me!”
- Session 17: The Status Quo Bias: Companies Benefitting from a Lack of Attention
- Session 18: Strategies for Overcoming Personal Biases
- Session 19: Strategies for Overcoming Organisational Biases
- Session 20: Strategic Management Tools to Minimise Mistaken Thinking
- London - £4495 +VAT
- Singapore - $5195
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At Euromoney Learning, we understand that learning doesn’t start and end when you leave the classroom. We know that the financial markets never stand still, and that technology has both simplified and added complexity at a break-neck pace. That’s why...