Decision making
Common biases in decision making
In general there are three general heuristics namely availability, representative and confirmation heuristics. They encompass eleven specific biases.
Cognitive bias
Economists claim individuals are rational decision makers. They collect a lot of information, examine all alternatives and make decisions that maximise personal satisfaction. However, we do not make decisions in such manner. Mount Everest tragedy In 1996 two Mount Everest expedition teams were caught up in storm high up in the mountain. Both team leaders…
Heuristic definition
Individuals rely on rules of thumb (heuristics) to lessen the information processing demands of making decisions.
Availability heuristic
The inferences we make about event commonness based on the ease with which we can remember instances of that event.
Retrievability bias
We are better at retrieving some subjects from our memory than other things. Individuals base judgement on commonality and easier base strategies.
Base rate fallacy
People tend to ignore background information relevant to the problem such as base rate. We tend to assume that causes and consequences are related.
Loading…
Something went wrong. Please refresh the page and/or try again.
Entrepreneurship

Exit strategies for private equity firms
Learn what are different exit strategies for private equity firms. One can name a family business successor, sell it outsiders, and lead firm to IPO.

Entrepreneur vs professional manager
What is the difference between entrepreneur and professional manager? What are transition steps to professional management. Learn more here.

Sources of finance
There are different sources of finance: savings, friends and family, crowdfunding, business angels, venture capitalists, corporations and other.

How can you minimize the risks associated with investing
There are different ways of minimizing risks associated with investing: self-financing, contract provision, specialisation syndication.

Types of financial statements
Three financial statements are described in this article: balance sheet, income statement, statement of cash flow. Learn more here.

How to write a business plan?
Business plan allows the founder to crystallise business ideas, thinking through the problems that they will face before having to cope with it.
Loading…
Something went wrong. Please refresh the page and/or try again.
Emotional intelligence
Multiple selves theory
Decision making is a cognitive process. Humans make errors because of motivational and emotional influences. Learn more about multiple selves here.
Hyperbolic discounting definition
Economic concept of discounting states that any choice that involves a trade off between current and future benefits should discount the future.
Self-interest bias definition
Perceptions and expectations are biased in self-serving manner. When presented with identical information, we perceive situation in different ways.
Loading…
Something went wrong. Please refresh the page and/or try again.
Leadership

The journey to authentic leadership
Development as a leader is not a straight line but a journey filled with many ups and downs as you progress to peak leadership.

What causes leaders to lose their way?
If motivations to lead are only power, prestige, and money, leaders risk being trapped by external gratification as the source of fulfilment.

5 derailed leaders archetypes
The five types are: Imposters, who lack self-awareness and self-esteem; Rationalisers, who deviate from their values; Glory seekers, who are motivated by seeking the world’s acclaim; Loners, who fail to build personal support structures; and Shooting stars, who lack the grounding of an integrated life. All five archetypal leaders described here frame their life stories…
Loading…
Something went wrong. Please refresh the page and/or try again.
Management

Strategic thinking skills
Understand the strategic relevance of your own activities, know how to think strategically, play the strategy game, understand the nature of strategy.

Problem solving skills for managers
Find the right problem, find the problem owner, use your experience, avoid the perfect solution, stay future-focused, keep it simple and other.

How to solve problems
A workable solution is preferable to the perfect solution because it leads to action. The perfect solution is the enemy of the practical solution.

How to influence decisions
Anchor the debate on your terms, build your coalition, build incremental agreement, size the prize, frame the decision favourably. Learn more here.

Decision making practice
Ask yourself three questions: is there a pattern I recognise here, who does this decision matter to, and why, does someone know the answer anyway.

The hidden traps in decision making
Analysis over action, seeking perfection over practicality, hiding behind other people and shedding responsibility. Learn more here.
Loading…
Something went wrong. Please refresh the page and/or try again.
New product development

Reasons for new product failure
The failure of a product idea to be developed into a product is not necessarily a bad thing. It may save the company enormous sums of money.

Organisational structures and cross-functional teams
The use of cross-functional teams increases creativity in a new product development, leading to shorter development time and higher product innovation.

New product launch
Most new products are improvements or minor line extensions and may attract almost no attention. Other products will receive extensive coverage.

Product prototype
The item acquires a finite form and becomes a tangible good. Product designers may develop similar prototypes with different styles.

Screening of business opportunities
Screening product ideas is, essentially, an evaluation process. It occurs at every stage of the new product development process.

Product concept
Transforming a list of ideas into product concepts. For a product idea to become a new product concept, these are required: form, technology, need.

Recognising opportunities and generating ideas
It is the process of collecting possible business opportunities that could, realistically, be developed by the business into successful products.

New product development management
Well-functioning global NPD teams become a critical capability by which firms can leverage much more diverse set of perspectives for the global NPD effort.

New product development models
Department stage models, activity stage models and concurrent engineering, cross-functional models, decision stage models and other.
Loading…
Something went wrong. Please refresh the page and/or try again.