The University of Sydney Business School, Discipline of Strategy, Innovation and Entrepreneurship
Abstract
Some management decisions are made without weighing quite so much information. But strategic decisions tend to involve the distillation of complexity into a single path forward. Given how unreliable human judgment is, all evaluations are susceptible to errors. These errors can stem from known cognitive biases - or they can be random errors, sometimes called "noise". Unreliability in judgment has long been recognized and studied, particularly in the context of decision-making about hiring. Here, Kahneman et al. describe the Mediating Assessments Protocol, a practical, broadly applicable approach to reducing errors in strategic decision-making
