The Ten Impacts of Extreme Cognitive Biases
Cognitive biases are mental shortcuts our brains use to make decision-making more efficient. While often helpful, these shortcuts can distort our thinking, leading to flawed decisions and actions. In some cases, these biases can become extreme, impacting our lives, work, and society in profound ways.
Social media platforms have transformed the way we communicate, share information, and form opinions. However, they also play a significant role in amplifying extreme cognitive biases, which can distort our perceptions and decision-making processes.
In 55 years of management experience I have learned that balance is the key to everything. For example, the minute I lose my temper I have lost the battle and possibly the war. I have learned where my biases lie and use or not use them as tools when it encourages better interactions rather than as weapons.
Here, I explore ten significant impacts of extreme cognitive biases, illustrating how they influence everything from personal relationships to global issues.
1. Reinforced Stereotypes and Prejudice
Extreme confirmation bias can lead people to seek information that supports stereotypes and ignore evidence that contradicts them. Innovation requires that one look at the contrary evidence to find areas where improvement can occur.
Left unchecked, this often reinforces prejudice and can contribute to systemic discrimination in society, affecting equality and social cohesion.
2. Poor Financial Decisions
Anchoring bias causes people to rely too heavily on initial information. In finance, this can mean sticking with poor investments due to an overvalued initial stock price, leading to personal and organizational financial loss. When one continually looks for the quick profit rather than long-term solutions for society, many will fall into the trap of manipulation and undermining of effective financial planning and execution.
3. Health Risks and Misdiagnosis
When medical professionals fall prey to availability bias — relying on recent or familiar cases to make decisions — patients risk misdiagnosis. We are back to looking for a quick solution, without analysing all the symptomology and history. This can result in inadequate treatment and dangerous health outcomes, especially for rare conditions.
4. Risky Behaviors in Social Situations
The bandwagon effect can lead individuals to engage in risky behavior if they perceive that “everyone else is doing it.” Or “I need to be noticed and praised”. Both are often observed in social media trends, peer pressure scenarios, and can lead to consequences like substance abuse or dangerous social media challenges. There is a cost to being “famous” or “noticed” so be careful what you wish for.
5. Hindered Innovation and Stagnation
Status quo bias causes people to prefer existing methods over new approaches, resisting innovation. This can impact industries, organizations, and educational systems, stalling growth and adaptation in an evolving world. One of the key indicators of this bias is they create doubt about the experts, facts, or severity of the issue which of course then means that we continue to do the same old things, hoping for a different result.
6. Increased Polarization in Politics
Political polarization is exacerbated by confirmation bias, where individuals seek news and information that align with their beliefs. This can lead to entrenched divisions and make constructive dialogue or compromise nearly impossible.
Throughout history, governments have often been seen as protectors and enforcers of justice, responsible for ensuring the welfare of the people they represent. However, in recent years, trust in these institutions has plummeted, with many believing that governments are straying far from their ethical and moral duties. From corruption scandals to policies that prioritize profit over human rights, governments across the globe have faced criticism for actions that seem to undermine the principles of fairness, transparency, and empathy, hence we become even more polarized.
7. Environmental Intentional Ignorance
The optimism bias leads people to underestimate the risks of climate change, assuming it won’t affect them or won’t happen soon. This attitude delays critical actions needed to address environmental issues, endangering ecosystems and public health.
8. Strained Personal Relationships
Cognitive biases like the actor-observer bias, where individuals attribute others’ actions to personality rather than circumstance, often strain relationships. This can lead to misunderstandings and conflicts in both personal and professional settings. We experienced this in the Presidential Election this year in spades.
9. Corporate Scandals and Cover-Ups
Groupthink is common in corporate settings, leading teams to make poor decisions and avoid dissenting voices. Extreme groupthink has been linked to some of the most notorious corporate scandals, where risks were downplayed, and unethical actions were overlooked. In every situation I have been in my career I have had to deal with groupthink and the damage that it creates. Many call it blind loyalty but in reality, it is the development of a cult, where members must adhere to every rule and not have any personal opinions or suggestions.
10. Widespread Misinformation
The availability bias, especially when amplified by social media, contributes to the spread of misinformation. This is the lazy way of having an opinion, in my opinion. People are more likely to believe and share information that’s readily accessible, regardless of its accuracy, impacting public opinion and decision-making on a large scale. When this happens, it means that critical thinking is thrown away for an easy strike rather than thinking through the process and decide for one’s self.
In Summary:
Extreme cognitive biases have far-reaching impacts, not only influencing individual decisions but also affecting communities, industries, and global affairs. Recognizing and mitigating these biases is essential in pursuing more balanced, evidence-based decisions across all areas of life.
Cognitive biases can be used for good or for evil, the key is the motivation behind the use and how greater good is affected by the use. They are not things that can be legislated in or out because they are part of this wonderful God-given body that we have. People have tried to legislate morality for eons, but the human spirit is strong and unless we each learn to collaborate and effectively understand and use the tools we have, we will end up with anarchy.
