Presentation by Mark Weeks given at the Lean Startup Circle (Santa Barbara, CA) Product & Design Meetup on May 22, 2018, hosted at Procore Technologies, Inc.

1. HAZARDS OF COGNITIVE BIASES
IN PRODUCT & DESIGN

2. DISCLAIMER
Speaker has no formal training in psychology…
he just listens to lots of podcasts which influence his thinking.

3. INFORMATION GATHERING & ANALYSIS
Much of product and design involves information gathering and analysis:
+ What problem are we solving? (value proposition)
+ For whom are we solving the problem? (target market)
+ How big is the opportunity? (market size)
+ What factors are critical to success? (solution requirements/risks)
+ How do we measure success? (business metrics)
+ What alternatives are available? (competitive landscape)
+ What is our competitive edge? (our differentiator)
+ Why now? (market window)
+ How will we launch? (go to market strategy)

4. COGNITIVE BIASES
Cognitive biases are errors in processing
and interpreting information which
impact decision-making.
Cognitive biases are often rooted in our
preexisting preferences and beliefs.

6. LISTEN & QUESTION ASSUMPTIONS
We’re so happy you agree (Confirmation Bias)
That’s the answer we were hoping for (Framing Bias)
We found more supporting evidence (Selection Bias)

7. CONFIRMATION BIAS
The tendency warp information to
support existing beliefs or expectations
and discount evidence that does not
conform.
+ Be open to alternatives
+ Seek diversity of thought

8. FRAMING EFFECT
Tendency for one’s reaction to be
influenced by the way information is
presented.
+ Ask open-ended questions
+ Don’t lead the witness

9. SELECTION BIAS
Selection of data in nonrandom
fashion, skewing the sample so that it
is no longer representative.
+ Are we measuring the right things?
+ Are the results reliable?

10. DON’T YOU
THINK IF I
WERE WRONG

11. DISSENT IS HEALTHY
CREATE A SAFE ENVIRONMENT
There seems to be broad consensus (Bandwagon Effect)
I don’t want to be the odd one out (Groupthink)
We can take a chance (Risk Compensation)

12. BANDWAGON EFFECT
Tendency to follow the crowd based on
the assumption that the majority
opinion is valid.
+ Subvert the dominant paradigm!
+ Support independent thought

13. GROUP THINK
When the desire for harmony and
coherence overruns critical evaluation,
resulting in faulty decision-making.
+ Speak up!
+ Welcome contrarian views

14. RISK COMPENSATION
Tendency to take greater risks when
perceived safety increases.
+ Encourage risk taking
+ Budget for experimentation

16. CONTEXTUALIZE COST AND BENEFITS
Costs are often underestimated (Planning Fallacy)
Committed costs distort decision-making (Sunk Cost Fallacy)
Acknowledge forgone options (Opportunity Costs)

17. PLANNING FALLACY
The tendency to underestimate
task-completion times.
+ Is the estimate truly start to finish?
+ What could change our plans?

19. SUNK COST FALLACY
The tendency to justify increased
investment in a decision, based on the
cumulative prior investment.
+ “Irrational escalation of commitment”
+ Let it go

20. OPPORTUNITY COST
A potential benefit relinquished in
favor of an alternate course of action.
+ Identify the tradeoffs
+ Optimize value delivered

22. LISTEN
QUESTION ASSUMPTIONS
DISSENT IS HEALTHY
CREATE A SAFE ENVIRONMENT
CONTEXTUALIZE COSTS & BENEFITS

23. mark.weeks@procore.com linkedin.com/in/markweeks slideshare.net/MarkWeeks1 @MarkAWeeks
MARK WEEKS