Anecdotal evidence - Deepstash
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Anecdotal evidence

Personal experience and notable events may be appealing but often tend to be unrepresentative.

In reality, the more unique the observation, the less likely it is to generalise. When dealing with complex decisions, many organisations now favour data-based algorithms over experience-based narratives.

422

588 reads

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Two complications beyond the warning signs

Stories can be misleading despite providing information.

  • Some stories can feature a combination of warning signs. The more warning signs a story shows, the more scepticism is needed.
  • Time-related biases and selection problems can happen even when eve...

419

653 reads

Mistaking correlation for causation

Stories can suggest a causal link when the link doesn't exist. For example, urban legends like the Sports Illustrated magazine state that individuals or teams who appear on the cover will subsequently experience bad luck.

Similarly, managers can form faulty beliefs...

422

960 reads

The survivorship bias

While success stories are motivating, they could lead to a false belief that success is more controllable and predictable than it is.

  • The common traits of successful people and organisations are ubiquitous. These same traits may be equally present in the less success...

432

535 reads

The story skeptic

Listening to captivating stories can lead to biased evaluations and irreversible mistakes in business.

When it comes to dealing with critical problems, it is useful to become a story sceptic.

433

2.07K reads

Stories can become obsolete

Stories based on the past can become outdated when situations change suddenly and drastically. Traditions built on them often persists long after.

  • A few decades ago, a college degree would almost certainly guarantee a lucrative career. This is no longer true, but the...

429

672 reads

Outcome-based stories

Stories often focus on the outcomes that can be seen while ignoring the underlying processes.

  • This leads to widespread blindness to possible deceptive behaviours that contributed to the outcomes. Examples include Ponzi schemes and fraudulent business...

421

542 reads

Myopia

Some stories fail to see the existing relationship when causes and effects are separated by time. Stories can misinterpret investments that feature worse-before-better dynamics.

New leaders may receive acclaim or blame for results that happen right after their appointment ...

426

938 reads

Hindsight bias

A narrative created after a specific result often downplays alternative scenarios that could have happened, making success and failure seem more predictable than they are.

Outcomes that seem obvious in hindsight are often unknown at the time of the decision,

431

1.15K reads

Averages

Data-based analyses are often turned into a story for easier understanding and adoption. But the stories are limiting the discussion to the average statistical effects.

Stories based on the average are often only valid for the average of the samples and might hide significant risks...

419

680 reads

Stories are powerful tools

The ability to create stories helps people to cooperate and move forward. Stories have multiple advantages: They allow us to discern complex situations, remember ideas, communicate with others, and make predictions about the future.

It is vital for managers and en...

472

2.67K reads

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Friend of animals everywhere. Hardcore internet enthusiast and avid reader.

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Observation as interpretation

An observation can also be an interpretation, a source of narrative data based on personal beliefs or prior experience.

For example, we believe that broccoli is a healthy food choice, or that we attended the biggest event of the year

Negativity bias and decision making

We make decisions based on the information that we have. However, we tend to be more reliant on the negative more than the positive. This causes two outcomes:

  1. Risk aversion – where we prefer an assured outcome over a gamble with a higher expected outcome; and

    ...

How Thinking About Death Changes Us

First-hand exposure to death makes one live life in a spiritual, reflective manner.

  • Terminally ill patients who write their last words are more often than not filled with positive words and inspirations. The anticipation of their end, which is now in plain sight, has a profound e...

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