Making Fast Decisions Isn’t Better, It’s Speed Bias
Why not all decisions should be made quickly and how to avoid Speed Bias
We’ve all been there. A leader initiates a meeting and enthusiastically declares, “Let’s brainstorm and decide on a course of action quickly. Move fast and innovate.”
This push for fast action defines modern business. Facebook famously coined the phrase “Move fast and break stuff.” Speed can set a business apart. However, it can also undermine true innovation and reinforce biases, leading to poor decisions and negative outcomes.
This phenomenon is called Speed Bias. Speed Bias is the tendency to compress business decision-making into a short time frame or push for immediate decisions.
Fast decision-making is not inherently bad or good. The key is to first evaluate whether the decision can and should be made quickly or if it requires more research, consideration, and thinking time to arrive at a better outcome.
The challenge with Speed Bias and compressed decision-making time is that it demands our brains process all information and options immediately or in a short period.
To decide quickly, our brains rely on their natural biases. For example, your brain will heavily weight the most recent, most readily available information to make a quick decision. This is a form of Recency Bias, where the brain favors more recent information over historical data.
Avoiding Speed Bias
Don’t treat all decisions the same: Every decision is different. Some can be made immediately, some over a few days, and others require more time. Consider what each situation needs before pushing for an immediate decision.
Speed vs. innovation: Speed does not necessarily lead to innovative decision-making. True out-of-the-box and innovative thinking takes time.
Acknowledge biases and risks: Biases exist, and as humans, we are prone to many biases. They aren’t always bad; they can be helpful shortcuts that our brains use to accomplish tasks. However, biases can also drive poor decision-making. Acknowledging their existence is half the battle.
Use decision-making frameworks: Decision-making frameworks are great tools to minimize bias. The best frameworks will have checklists for decisions requiring speed, those that can take a few days, and decisions best suited to slower, more considered processes.
In the fast-paced world of modern business, the pressure to make quick decisions can be overwhelming. While speed can be a competitive advantage, it is crucial to recognize the potential pitfalls of Speed Bias. By understanding this bias and implementing thoughtful decision-making practices, leaders can foster true innovation and make more informed choices.
Balancing speed with careful consideration allows businesses to navigate complex situations more effectively and avoid the negative consequences of hasty decisions. Embrace frameworks that minimize bias, and remember that not all decisions need to be made in an instant. By doing so, you can create a culture that values both agility and wisdom, leading to better outcomes and sustained success.
