All decisions in firms and organizations critically depend on the intuitive judgements and the knowledge of decision makers. However, what is the quality of these intuitive judgements and who are the most qualified decision makers? These are two tremendously important questions. Judgement and decision making are two vital activities of management and they are of decisive importance to the success of all business endeavors. In fact,
A recent McKinsey study of more than 1000 major business investments showed that when organizations worked at reducing the effect of judgement biases in their decision making processes, they achieved returns up to seven percentage points higher.
[Kahneman et al. (2011), The Big Idea: Before You Make That Big Decision, Havard Business Review, June Issue.]
Inspired by the research of the 2002 Nobel Laureate Daniel Kahneman, Amos Tversky and their colleagues, we have developed an interactive online tool designed to measure and improve people’s intuitive judgements and decision making qualities: ‚The Intuition Challenge’ is aimed at measuring cognitive biases on an individual, team as well as organizational level. Participants uncover their knowledge, learn about their possible cognitive biases and experience their own decision making qualities.
‚The Intuition Challenge’ combines well-established methods from psychological and economic research to an interactive ‘online challenge’ in which participants ‘compete’ against each other. In comparison to the conventional questionnaire style of existing psychological tests, the competition created within ‚The Intuition Challenge’ not only mimics the strategic environment people usually work in but also provides participants with incentives to perform well which is a decisive prerequisite for measuring the character and strength of the cognitive biases that the participants are prone to.
The content of ‚The Intuition Challenge’ can be customized to specific companies or industries. In this way participants not only gain knowledge regarding their own cognitive biases and the biases of the other participants, but also learn more about their and the other participants’ knowledge regarding the industry, markets and the organization they are part of.
In case you would like to learn more about ‚The Intuition Challenge’ and possible ways it can be used to improve judgements and decision making within your organization, please contact us and have a look at our products.