The Halo Effect - Deepstash

The Halo Effect

This is our tendency to make inferences about specific traits on the basis of a general impression.

In the business world, it refers to the tendency to look at a company’s overall performance and make attributions about its culture, leadership, values, and more. In fact, many things we commonly claim drive company performance are simply attributions based on prior performance.

For example, if a company is profitable, people conclude that the leadership and processes must be competent.

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