<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=290086984736480&amp;ev=PageView&amp;noscript=1">
word-map-thumb

The Alternative Board Blog

Why Bad Business Ideas Happen to Good Business Owners

Jul. 17, 2014 | Posted by The Alternative Board Worldwide
bad ideas good people

 

Matt Ridley is my favorite science writer. He has written for the Wall Street Journal a lot and has also authored what I found to be the most accessible and interesting book on the Genome. Ridley wrote another gem Why Bad Theories Happen to Good Scientists. The article focuses on confirmation bias.


bad ideas good peopleConfirmation bias is when scientists attempt to find evidence that supports their theories. A good scientist would operate with the opposite intentions -- as soon as a they developed a new theory, the scientist would prove their theory with unsuccessful attempts at disapproval. However, in practice, scientists spend most of their effort proving their theories - sometimes with very embarrassing results.

Ridley points out that other professionals, doctors and lawyers in particular, have this same confirmation bias. The bias often intensifies as they become more senior in their fields. These professionals have been known to become so confident in their view of the world that they only seek out evidence that supports their own theories. They rationalize observations, opinions, and even evidence that contradicts their beliefs.

Anyone reading this post is probably thinking: "I can't believe people do this. I wouldn't do this myself." But we're only human. And confirmation bias is a natural human behavior.

Now think about your business ideas.

What long-held beliefs do you have about your business or your market?

Do you have evidence to support your beliefs?

When was that evidence gathered? With the Internet economy, the marketplace is changing fast. Is your "evidence" still valid?

Who on your team challenges you? Does your team support a "group think" culture of confirmation bias?

As the business owner, have you established a business culture where your employees are not afraid to challenge you and your beliefs?

 

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by The Alternative Board Worldwide

Related posts

Developing The Art Of Time Management
Feb. 19, 2019 | Posted by Phil Spensieri, TAB York Region
Although many of you are fantastic managers of your employees and operations, the issue of good time management is almost always a part of every discussion I have with business owners. Good time...
What Habits Can Cripple a Leader’s Productivity
Feb. 19, 2019 | Posted by The Alternative Board Worldwide
With all the attention given to boosting employee productivity, it’s sometimes easy to lose sight of the same urgency for business owners or CEOs and their executive teams. Ask yourself: are you’re...
5 Tips on Reducing Workplace Distractions
Feb. 12, 2019 | Posted by The Alternative Board Worldwide
These days, employees are faced with an unprecedented onslaught of workplace distractions, chief among them all the apps and digital sideshows that now pervade everyone’s consciousness. With all of...
Leadership Part II: Why be a Boss when you can be a Leader?
Feb. 6, 2019 | Posted by Phil Spensieri, TAB York Region
In my past 30 years of business I have met thousands of business owners and while all of them have been the ‘boss’, not all of them have been leaders. How to be a better leader is a topic that comes...
A Quick Guide to Hiring a High Performing Sales Team
Jan. 29, 2019 | Posted by The Alternative Board Worldwide
A quality salesperson is vital to sales team success This individual is responsible for generating leads and closing sales, which translates into revenue-generating activities for your organization....
5 Common Recruiting Mistakes and How to Avoid Them
Jan. 24, 2019 | Posted by The Alternative Board Worldwide
You don’t need us to tell you—the goal of hiring talented, qualified job candidates is now a lot harder to achieve than it once was. Businesses are pursuing a wide range of strategies in order to...
Management Skills Part 1: Transitioning from Employee to Manager
Jan. 22, 2019 | Posted by Phil Spensieri, TAB York Region
In my work with business owners, many of them have expressed a desire to transition a certain employee to a more senior role at their company. However, this promotion sometimes doesn’t happen because...
Leadership Tips in a Time of Rapid Business Growth
Jan. 22, 2019 | Posted by The Alternative Board Worldwide
Solid leadership is critical during every phase of a company’s evolution. This is probably most important during a time when a business undergoes a period of rapid growth. According to serial...
A Guide to Securing a Small Business Loan
Jan. 15, 2019 | Posted by The Alternative Board Worldwide
Start-ups and companies in early growth stages often need an infusion of cash to keep their businesses afloat. It’s also true that more established firms can benefit from a short-term loan in order...
5 Leadership Traits that are essential for Business Owners and CEOs
Jan. 3, 2019 | Posted by The Alternative Board Worldwide
Do successful business leaders and CEOs exhibit the same qualities across the board? Generally speaking, the answer is “yes.” Specific personality and character traits can be identified as essential...