Cognitive Bias: Breaking it via SEEDS Model™

Our judgement in a variety of situations depends on our personal beliefs, experiences, and emotions. Eventually, the result of the judgement affects how we interpret the information and make decisions. Considering the fact that sources of information are limited, as we - human beings cannot consume and analyse all data happening around us, they shape our experiences and beliefs in a subjective way.

What is actually Cognitive Bias?

According to MacLeod et al., cognitive bias refers to a pattern of selective processing of information that is systematically inclined towards favouring one type of information over another.

In real life, some unconscious behaviours should necessarily be available in order to protect us from our surroundings, and this is valid even for animals. Meaning that, although cognitive biases might seem disadvantageous at first, they can actually assist humans in recognizing similarities and developing quick solutions to navigate through familiar circumstances.

The most common cognitive biases and examples

• Availability heuristic

• Cognitive dissonance

• Confirmation bias

• Extension neglect

• Framing effect

• Logical fallacy

• Self-assessment

• etc...

A senior consultant in a management consulting company is leading a project team to develop a new strategy for a client. During the brainstorming session, she unconsciously favours ideas that align with her past successful projects and rejects those that challenge her previous assumptions. The consultant believes she is being efficient in leveraging her experience but is unaware that her bias may hinder the team's creativity and limit the potential of the strategy.

Suppose a person is considering moving to a new city for a job opportunity. They have heard some negative things about the city's crime rate from a friend who used to live there, but they haven't done any further research on the topic. As a result, the person becomes overly concerned about the city's crime rate and decides not to take the job opportunity. In this situation, the person is affected by the availability bias, as they are relying too heavily on the information that is easily available to them (the news report or friends' stories) and not seeking out additional information that could provide a more balanced view of the city's crime rate. The person may be making a decision based on incomplete or biased information, which could lead to a missed opportunity.

Or here is another example situation for framing effect in real life:

The marketing team suggests two options for the newly introduced product: "10% off the regular price" or "Get an extra 10% worth of the product for free." Both options have the same monetary value, but the second option is framed as a gain (getting something for free), while the first option is framed as a discount (losing less money). The company decides to use the second option, as research suggests that consumers are more likely to be attracted to gains than discounts. The framing effect is at play at that moment, as the way the price is presented (as a discount or a gain) influences how customers perceive the value of the product. By framing the price in a positive way, the company is able to attract more customers and increase sales.

The SEEDS Model™ Approach

Liebermann et al. presented The SEEDS Model™, identifying the fundamental neurobiological factors linked to the common biases, followed by a trial-and-error process of structuring a framework to categorize these biases:

1. Similarity

2. Expedience

3. Experience

4. Distance

5. Safety

Similarity

According to the authors, "ingroup bias" and "outgroup bias" are two types of similarity biases that are connected to advocating for and safeguarding one's own group, such as their family, team, or company. However, these biases are also linked to the formation and continuation of stereotypes and discrimination.

Expedience

Mental shortcuts that facilitate quick and efficient decision-making are known as expedience biases. However, the drawback of this efficiency is that the decisions made may be founded on inaccurate assessments.

Experience

Our brains are naturally designed to comprehend the world as a factual and unbiased depiction of reality, which leads to the emergence of experience biases. It is almost like having an unconscious conviction that our perceptions and beliefs are inherently accurate.

Distance

The influence of proximity is a significant factor that affects decision-making. The brain seems to have a single network responsible for all types of proximity, including the proximity of possession, spatial proximity, and temporal proximity (Tamir & Mitchell, 2011). Subconsciously, we tend to assign more value to things that are perceived to be closer to us, solely because of their proximity.

Safety

As described above in the example in which a person decides to to move another city for a job opportunity, the individuals tend to opt for less risky decisions if the outcome is favourable, such as a potential monetary gain. Conversely, when faced with negative outcomes, like potential monetary loss, they tend to become more risk-taking. In both cases, people display loss aversion (Kahneman & Tversky, 1984), where the negative information carries greater importance, and the goal becomes minimizing the risk of not winning and increasing the likelihood of avoiding losses.

How to break the cognitive bias with The SEEDS Model™?

Liebermann et el. claim that after rationally considering the categories under The SEEDS Model, we can train our brain in a way to mitigate the possible cognitive bias decisions.

For Similarity bias, the workable strategy can be the “jigsaw classroom” pioneered by Elliot Aronson - By contemplating ways in which we and dissimilar others may have shared goals, values, or preferences, we can develop a sense of ourselves as part of a broader group, which leads to an increase in the perception of similarity.

For Expedience bias, the strategy is to slow down the decision-making process and encourage the consideration of additional information and perspectives before making a final decision. This can help counteract the tendency to rely on mental shortcuts and promote more accurate judgments.

For Experience bias, in the paper (Liebermann et al.) defined the strategy as taking a step backwards and seeing ourselves and our decisions from a more objective perspective, putting ourselves in the mind of someone else, which is also associated with brain regions associated with mentalizing.

For Distance bias, the strategy is we should assess the consequences or assets as if they were equidistant from us in terms of space, time, or possession.

For Safety bias, the strategy to mitigate bias is to imagine that the decision is being made for someone else, as research suggests that decisions made for others are less biased as they are not attached to the self.

Conclusion

Cognitive biases are inherent to the way our brains process information, and while they can serve as mental shortcuts, they can also lead to incorrect judgments and decisions. It is important to be aware of these biases and to use strategies to mitigate them, such as considering alternative perspectives, taking the perspective of others, and evaluating outcomes without considering distance or ownership. By doing so, we can make more informed and objective decisions in both our personal and professional lives.

The SEEDS Model™ is a great approach for training ourselves in a form to monitor ourselves specifically during critical decision-making processes. Currently, there is no certain cost-value analysis of the negative effect of cognitive bias on companies, but undoubtedly it's noticeable.

Sources

ECI: Unconscious Bias

NeuroLeadership Journal: Breaking Bias Updated: The SEEDS Model

Wikipedia: Cognitive bias

Colin MacLeod and Andrew Mathews: Cognitive bias modification approaches to anxiety