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Advice Blog

Use This Trick To Overcome Cognitive Bias

Peter Drucker (Source: Alchetron.com)

Peter Drucker (Source: Alchetron.com)

"Illusory Superiority" is a cognitive bias that causes people to overestimate their positive qualities and abilities and to underestimate their negative qualities.

According to Peter Drucker, he says you must use "feedback analysis" to break the delusion. 

Ask yourself "Why?" 3 times. So for example, if you once dreamed of starting a business but never quite pulled it off, the first step is to say "I am probably not good at starting new businesses." If you were good at it, you probably would have actually started one already. 

But then go further and ask yourself "Why didn't I start a business?" Let's say the answer was "I never could get the start up cash to launch.” Then ask a second time "Why couldn't I get the cash?" Maybe the answer is "Everyone I talked to didn't think I could do it."  Then ask a 3rd time "Why didn't anyone think I could start the company?" Maybe the answer is that they could see you didn't have enough experience to be able to handle a new business. 

Maybe the answer is simple: partner up with someone who has more experience than you so investors can confidently put cash into your new business.