Avoiding Cognitive Bias with Beshears Model for Vacation Planning

Planning a Dream Vacation:

My dream vacation is to visit the ancient city of Petra in Jordan. Since this is a new destination for me, I’ll utilize Beshears and Gino’s model to make a well-informed decision and avoid cognitive bias:

• Step 1: Understand Biases: Common biases in travel planning include:
  • Confirmation Bias:Focusing on information that confirms existing preferences (e.g., only researching luxury resorts).
  • Anchoring Bias:Relying too heavily on the first piece of information encountered (e.g., focusing solely on expensive tour packages).
  • Overconfidence Bias:Overestimating our ability to find the best deals or navigate unfamiliar situations.
• Step 2: Define the Problem: My goal is to plan a cost-effective and culturally immersive trip to Petra, Jordan.
• Step 3: Diagnose Causes: My love for luxury hotels and tendency to book last-minute flights could lead to overspending.
• Step 4: Design a Nudge: To combat these biases:
  • Research Budget Options:Explore hostels, guesthouses, and local homestays alongside hotels.
  • Set Price Alerts:Track flight and accommodation prices over time to avoid anchoring bias.
  • Involve Others:Discuss the trip with travel-savvy friends to gain broader perspectives and identify potential deals.
• Step 5: Test and Refine: Continuously monitor my decision-making process and adjust strategies if needed.

Ease of Use:

This process is initially time-consuming but becomes easier with practice. The challenge lies in consistently recognizing and overcoming biases. However, the benefits of a well-planned, budget-friendly trip outweigh the initial effort.

Change Management in an Organization

Case Study: Implementing a New CRM System

A previous company I worked for decided to switch from a legacy CRM system to a cloud-based solution.

• Leaders’ Role: Executives championed the change, highlighting the new system’s potential to improve customer service and streamline sales processes. Leaders communicated the benefits transparently and provided training resources.
• Management of Change: The transition was phased in, allowing employees to adjust to the new interface gradually. Supervised practice sessions ensured familiarity with the system’s functionalities.
• Addressing Resistance: Management anticipated resistance, especially from employees comfortable with the old system. Open communication channels encouraged employees to voice their concerns, and individual support was offered to address specific challenges.

Alternative Approach as a Leader:

Based on current knowledge, I would have implemented a more gamified training approach. Leaderboards and reward systems could incentivize employees to explore the new CRM’s features and foster a sense of competition and accomplishment. Additionally, involving employees in the selection process of the new CRM system could have increased buy-in and reduced resistance.