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Intelligence Squared
Daniel Kahneman on Making Intelligent Decisions in a Chaotic World - Part 2
Jul 12, 2023
26:44
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- Reducing noise in decision-making is crucial for making accurate judgments, and organizations should measure and become aware of the level of noise in their decision-making processes.
- Differentiating between experts and respect experts is vital, and decision-making can benefit from incorporating objective measures and assessing expertise against benchmarks.
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Reducing Noise in Decision-Making
Reducing noise in decision-making is crucial for making accurate judgments. While bias is often the focus, noise, which refers to the variability and inconsistency in judgments, is equally detrimental. Organizations should measure and become aware of the level of noise in their decision-making processes. Methods such as aggregating independent opinions can help reduce noise, but it requires careful consideration as too much noise reduction may lead to excessive bureaucracy. The goal is to strike a balance between allowing individual judgment and implementing decision hygiene to enhance accuracy.
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