Human Decision Making and Managing Digital Transformation

Question 1

What traits describe system 1?

Answer 1

Fast, automatic, uncontrolled, unconscious, intuitive.

“Instant relevance to ME In MY situation In relation to what I am doing As I feel RIGHT NOW”

Question 2

What traits describe system 2?

Answer 2

Slow, deductive, conacouous, controlled. and energy consuming!

“I need to think about it…”

Question 3

What do humans want when it comes to information given to them?

Answer 3

“The RIGHT communication in the RIGHT amount at the RIGHT time”
“Instant relevance to ME In MY situation In relation to what I am doing As I feel RIGHT NOW”

Question 4

How to target system 1?

Answer 4

Managers and employees in different functions need to be addressed and supported in their specific work context - not only the IT system, but also in what they have to do differently “around it”.

So they DON’T have to think:
*talk about what is important to THEM
*in their language, with their concepts
*be specific about what THEY have to do when and how

Question 5

What is the experiencing self?

Answer 5

The experiencing self knows only the present moment.

Question 6

What is the remembering self?

Answer 6

The remembering self is what is consulted when we make decisions.
The remembering self is a storyteller (“that was a good hike”; “that was a bad flight”), and it can dictate our actions when we think of the future as an anticipated memory (“that will be a fun trip”).

Side note: Stories are more appealing for the Remembering Self.

Question 7

What are the 4 steps of the simple template used by Elisabeth for storytelling?

Answer 7

1. Set the scene
2. 1-2 small concrete details in “set the scene” make it come alive (Context is King). Make it recognisable: Something the recipient can reflect on/ relate to.
3. Present the challenge
4. Relief/point/result

Question 8

What are the top 10 behaviours biases?

Answer 8

1. Strategic misrepresentation
2. Optimism bias
3. Uniqueness bias
4. Planning fallacy (writ large)
5. Overconfidence bias
6. Hindsigt bias
7. Availability bias
8. Base rate fallacy
9. Anchoring
10. Escalation of commitment

Question 9

Define the behavioural bias: Strategic misrepresentation

Answer 9

The tendency to deliberately and systematically distort or misstate information for strategic purposes. Aka political bias, strategic bias, or power bias.

Question 10

Define the behavioural bias: Optimism bias

Answer 10

The tendency to be overly optimistic about the outcome of planned actions, including overestimation of the frequency and size of positive events and underestimation of the frequency and size of negative ones.

Question 11

Define the behavioural bias: Uniqueness bias

Answer 11

The tendency to see one’s project as more singular than it actually is.

Question 12

Define the behavioural bias: Planning fallacy (writ large)

Answer 12

The tendency to underestimate costs, schedule, and risk and overestimate benefits and opportunities.

Question 13

Define the behavioural bias: Overconfidence bias

Answer 13

The tendency to have excessive confidence in one’s own answers to questions.

Question 14

Define the behavioural bias: Hindsight bias

Answer 14

The tendency to see past events as being predictable at the time those events happened. Also known as the I-knew-it-all-along effect.

Question 15

Define the behavioural bias: Availability bias

Answer 15

The tendency to overestimate the likelihood of events with greater ease of retrieval (availability) in memory. Det man husker først er det man går med - slut.

Question 16

Define the behavioural bias: Base rate fallacy

Answer 16

The tendency to ignore generic base rate information and focus on specific information pertaining to a certain case or small sample.

Question 17

Define the behavioural bias: Anchoring

Answer 17

The tendency to rely too heavily, or “anchor,” on one trait or piece of information when making decisions, typically the first piece of information acquired on the relevant subject.

Question 18

Define the behavioural bias: Escalation of commitment

Answer 18

The tendency to justify increased investment in a decision, based on the cumulative prior investment, despite new evidence suggesting the decision may be wrong. Also known as the sunk cost fallacy.