12 февраля 2020 г.

Most of us would like to think about ourselves as rational beings that make decisions based on facts and logic; however, social scientists have long proved that people are full of biases that cause us to think and act irrationally. 

To find out more about this problem, CFA Association Russia held a joint workshop with EY Academy of Business focusing on cognitive flexibility. Victoria Karyakina, a leading soft-skills coach from EY Academy of Business, held a 2-hour presentation, which analyzed the nature of our unconscious biases, discussed their negative consequences and gave advice on how to become aware of these preconceived notions. 

About 20 guests attended the event, which was organized in the form of a dialogue with everyone sharing their thoughts and personal experiences.

Victoria pointed out that there are two types of thinking processes – the system 1 thinking, which is largely automatic judgements that come from past associations stored in memory, and the system 2 thinking, which is a more deliberate form of reasoning.

When using the first type of thinking, we are essentially relying on intuition and emotions. This type of mental shortcuts were critical to human survival, it’s what made our ancestors climb up a big tree when they had seen a sabre-toothed cat. As helpful as it can be in certain situations, when making important business decisions the first type of thinking is a disadvantage, said Victoria. 

People are especially susceptible to the first type of thinking when they’re fatigued, stressed or multi-tasking. When an executive is negotiating a high-stakes deal, argued with a partner last night, worried about parents’ health and managing a large-scale project all at the same time, he or she is far from an ideal decision-making shape. In such situations, people tend to fall back and rely on the system 1 thinking, making decisions faster and simpler, but at the expense of quality.

When making an important decision it is important, first of all, to recognize that and try to use the system 2 thinking. The second type is a slow, deliberate and conscious mental process that results in a more rational thinking. When using this type of thinking people seek new information, question themselves and make better decisions. 

Victoria’s advice during the workshop was to recognize that all of us have biases and then avoid taking mental shortcuts when making important decisions. Knowing that we are predictably irrational, we can at least recognize that fact and next time we catch ourselves making negative judgements about a certain colleague, we better double check ourselves.

To watch a full video of the event and access the speakers’ presentations, as well as to gain unlimited access to all videos from previous CFA Russia events and seminars, please consider joining the society using this link.

FULL VIDEO OF THE EVENT >>>