It's commonly believed that the more time we devote to a project, the better the results. Not so. Wharton professor Maurice Schweitzer tells Stephanie Overby how CIOs can correct "input bias" and stop confusing quantity with quality.
Advertisements get under the skin of professor and human behaviour expert Maurice Schweitzer. There's the beer commercial that brags about its slow brewing process. And the billboard from a luxury car manufacturer that boasts about how its engineers haven't taken a vacation in years. "Three hundred thousand people vacationed in the south of France last year, and none of them was a Lexus engineer. Who cares? That's not very informative to me," says Schweitzer. "And I'm not drinking a beer because of how long it was in a vat. I drink it because of how it tastes."
Schweitzer, who specializes in behavioural decision research as assistant professor in operations and information management at the Wharton School at the University of Pennsylvania, uses these advertisements as examples of what he calls "input bias". According to his research, people automatically associate input related to quantity (how long it takes to make a car) with output quality (how well it performs). While in many cases, input information does directly correspond to outcome, in some cases it does not. Yet humans are hardwired to automatically associate input and output. And people can prey on your input bias, causing you to make poor decisions or judgments to their advantage.
It's no surprise that advertisers exploit this basic fact of human nature. But CIOs, Schweitzer says, fall victim to the same input bias. Employees, vendors and fellow business leaders all take advantage of these natural biases in manipulating IT decisions. Fortunately, Schweitzer says, there are ways to guard against making mistakes based on bias.
CIO: Can you explain what your research has revealed about input bias - that is, how information on the quantity of something is often misused to infer quality?
Maurice Schweitzer: In general, input quantities are positively related to the quality of outcome. The more you invest in a project, the better that outcome will be. Companies that spend a lot of money on R&D typically produce the most innovative products. The more time an employee spends in the office, the more productive she is. Students who study the most do better on exams. It's a natural assumption that's usually right.
However, there are many cases where that direct relationship does not exist. For example, people assume that longer hospital stays are better and propose legislation that women who give birth should spend a certain length of time in the hospital. They figure the longer you're in the hospital, the better care you'll receive. But in fact, there are so many sick people in a hospital that it's actually not a great place to be unless you have to be there.
We live our lives mostly on automatic pilot, and we have heuristics - decision rules or shortcuts - to make a lot of our decisions. Assuming that input quantity directly correlates to outcome quality is one of those. These heuristics can lead us afoul. There are times when we need to step back and give decisions some extra attention. That means participating in a deliberate thought process that takes our natural biases into account.
CIO: Certainly we all use a lot of shortcuts in making decisions every day. Why is the input bias particularly dangerous?
Schweitzer: It's a social bias that relies on information from people around you and is thus much more dangerous because people can manipulate you. The classic example is face time. Someone puts in a lot of time in the office; you assume they're working hard. Or he says: "I had this many people working on this project", or "This program I created has so many lines of code". He's giving you some measure of the input in a way that might skew your judgment of the outcome.
The input information they give you may be accurate. But of particular importance to managers and business decision-makers is the fact that people can manipulate or misrepresent input to prey on this bias.
- White PaperWhat you don’t know can destroy your business. It’s hard to imagine modern business without the internet but in the last few years it has become fraught with danger. Read on to discover how internet security can give your business a competitive advantage.
- White PaperJoin industry expert Bob Spurzem and Chuck Arconi of Fox Hollow to discover how to reduce Exchange total storage and keep it at a manageable level. Learn how Exchange storage growth can be contained without sacrificing security and accessibility.
- White PaperDiscover how the integration of disparate technologies in your company can lead to greater user productivity, improved management, lower costs, higher efficiency, and easier risk mitigation.
Discover how SOA can create smarter outcomes for your business.
Attend and learn:
- How SOA is helping leading companies to become more agile
- Where you should be applying SOA processes in your company
- The top SOA implementation mistakes to avoid
Click here for more information.
- +
CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00
For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders. - +
CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25
For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders. - +
CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00
Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00
Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance. - +
CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05
Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
- +
CBS website bitten by iFrame hack 02 December, 2008 07:30:00
Russian malware distributors have launched another iFrame attack on a sub-domain of the cbs.com site.TV network CBS has become the latest big name to have it website used to host malware, a security company has reported. - +
Excerpt: Counterterrorism Strategies for Corporations 27 November, 2008 12:36:00
Mike Ackerman calls terrorism "the skunk at the globalization lawn party." His new book lays out 10 principles for how businesses can prepare and respond.Mike Ackerman calls terrorism "the skunk at the globalization lawn party." His new book lays out 10 principles for how businesses can prepare and respond. - +
The 10 Ackerman Principles of Counterterrorism 27 November, 2008 12:43:00
Consultant and author Mike Ackerman's 10 counterterrorism principles for business.Consultant and author Mike Ackerman's 10 counterterrorism principles for business. - +
Survey: Despite Risks, Employees Still Holiday Shop at Work 27 November, 2008 10:02:00
As Cyber Monday approaches, research suggests a majority of workers will use their work computer to shop this holiday season. But despite the continued growth in online shopping, employees and business still don't understand the riskAs Cyber Monday approaches, research suggests a majority of workers will use their work computer to shop this holiday season. But despite the continued growth in online shopping, employees and business still don't understand the risk. - +
Why Cybercrime is Thriving 27 November, 2008 11:52:00
A new Symantec report reveals just how large and sophisticated the online underground economy has grownA new Symantec report reveals just how large and sophisticated the online underground economy has grown.
FrontRange Solutions launches HEAT Plus Mobile to reduce help desk costs and improve service management productivity 02 December, 2008 15:15:00
AARNet Helps to Advance Indigenous Health 02 December, 2008 12:44:00
Orbis selects Telstra International as its data centre partner for the UK, Europe and Middle East Region 02 December, 2008 11:23:00
ComOps Deploys Corporate Performance Reporting Solution For Healthcare Test Manufacturer 02 December, 2008 10:09:00
Mornington Peninsula Shire implements Objective to manage knowledge and deliver service excellence 02 December, 2008 09:56:00
|
||
|
||
|
|
||
|
Email Archiving 101—Customer Case Study
Join Lee Benjamin, a Microsoft Exchange MVP and Ryan Shipkowski, network administrator for Matthews, to discuss the process and ROI of implementing an email archiving solution, with emphasis on a case study from Matthews International.
















