Why we find it difficult to recognise a crisis

Outcomes bias it thinking that because things turned out reasonably good, we can underestimate how close they came to going wrong.

In the past 20 years, there have been two outbreaks of diseases caused by the new viruses. The outbreak of 2003 killed 774 people before it was contained, and the Mers outbreak in 2012 has killed 858. The new virus has far surpassed both.

Even if people are given clear evidence that a crisis is unfolding, they may deny the reality of it. 

If people want to believe something, they may only look for evidence to support that point of view, and ignore or dismiss anything that contradicts it.

In uncertain conditions, we look to each other for guidance, even if the people are not the best guides. People are tending to do what they see is the social norm. It may explain panic buying.

At government level and other large organizations, the tendency to conform unconsciously make intelligent and experienced decision-makers stop discussing options and uncritically accept whatever plan they think everyone else is settling on.

Organizations often hire smart and talented people, but then create cultures and decision-making processes that do not encourage them to raise concerns or make suggestions. 

Everyone is encouraged to look at the positive interpretations, which leads to "self-reinforcing stupidity."

Five characteristics of the best-prepared “high-reliability” organizations:

• They are preoccupied with failure. They think a lot about the ways they could miss their mark.
• They encourage employees to avoid simplification and embrace complexity.
• They encourage their employees to tackle problems and not hiding them.
• They focus on the here on now.
• They have flexible decision-making structures.