This is so key…
An important differentiator between our selection process and the processes of the value managers we respect is the time and effort we spend on analyzing how psychological factors affect decision making. A number of different factors cause people to systematically make mistakes in judgement – just to name a few:
- People tend to think every new idea is a good idea.
- Once someone has invested a lot of time researching an idea, he cannot view conflicting facts objectively. Effort “becomes” reality.
- People cannot accept that a decision they made in the past might have been a mistake and will distort the current reality to make the prior decision seem logical.
- People illogically reciprocate very small gifts or favors.
From The Psychology of Errors – Cook & Bynum, July 2007