Success Advice
Why Understanding Your Cognitive Biases Will Help Improve Your Life, Decisions and Relationships

When I started working in the financial markets, I was enamored with how the mind works. More specifically, it was fascinating that almost everything I was taught in college about the markets was wrong. We rarely act as rational human beings. I saw this by studying history, watching my own actions, and the actions of others. I began to study psychology and behavioral economics.
One of the subjects I spent a lot of time studying was cognitive biases and how they affect our thinking. These biases are not always bad but it is key to understand them to improve your own decision-making and to see other point of views.
Through my studies, I found that the 3 biases affecting people most are confirmation bias, recency bias, and the bandwagon effect:
1. Confirmation Bias
Confirmation bias is the tendency to find information that only confirms to our existing beliefs. This was very useful when we were roaming around as hunter-gatherers and worried about a wild animal eating us. In that time, it was best to err on the side of caution and assume that whatever was in the bushes might kill us.
However, in modern society, this can cause us to make plenty of wrong decisions. Confirmation bias is is the antithesis of the scientific method. I suggest trying to falsify our existing beliefs by engaging with people on the opposing side. With so much available information on the internet, it is a shame people tend to sit in their filter bubbles. Whether that is political, religious, fitness, or nutrition, we need to be open to others opinions and be willing to respect their viewpoints.
I find that having my preconceived ideas challenged and being willing to change my mind leads to better decision making in the future. It took me a long time to get to this place. I used to want to always be right all the time and I held my confirmation bias close. Now, I try to recognize when it starts creeping in and open up to opposing information.
“The older I get, the more open-minded I get, the less judgmental I get.” – Gwyneth Paltrow
2. Recency Bias
Recency bias puts too much emphasis on the most recent and available information. We tend to assume that whatever is happening in life, whether good or bad, will continue for the foreseeable future. People with recency bias can become overly pessimistic or optimistic about life events. This causes us to over-extend ourselves in the good times and seclude ourselves in the bad.
Nothing in life goes in a straight path, life is full of cycles and we must learn to ride these waves. No matter how good or bad something feels in the moment, remind yourself that it won’t last forever. A meditation and mindfulness practice helps me notice when recency bias is creeping into my life and allows me to center myself, stop putting myself down when things are going poorly and not to be too overconfident in the good times.
3. Bandwagon Effect
Doing something because everyone else is doing it regardless of our own beliefs is the bandwagon effect. Everyone believes we are our own person and would never act a certain way just because other people are doing it. For example, watch how the mob mentality unfolds when people act in ways they never imagined they would. Our brains evolved as part of tribes and in order to keep us safe, we had to stick together.
If we didn’t agree with the tribe, we could be banished and would then die alone in the wild. Our brains have yet to evolve from this stance, and it makes it easy for us to just jump on the opinions of the group and ride along. Whenever I find myself agreeing with everyone else, I try to make sure I am doing it for the right reasons and it is not for the purpose of staying in the group. The status quo needs to be challenged.
When challenging these biases, I have found the most benefit is in debating with others. Cognitive biases make it hard to change someone else’s mind, even my own. I try to stay open to others’ points of view and try to see where they are coming from and why they came to their conclusion. In the end, different opinions are what make the world go round. How much fun would it be if we all believed the same things? If you would like to check out a more comprehensive list of biases, The Visual Capitalist has a great infographic.
“Be sure you put your feet in the right place, then stand firm.” – Abraham Lincoln
In understanding how our own brain works, it allows us to be more empathetic with others and will help find our own blind spots. While it does happen less these days or at least I hope, I find it fascinating how I will still make irrational decisions even though I am aware of the biases I struggle with (there is plenty of research that shows I am not the only one). If you find yourself in the same situation, remind yourself that you are now aware of your biases and improving your decision-making with this knowledge.
Which one of these biases impacts your life the most? Let us know so we can help!
Success Advice
Why One-Size-Fits-All Leadership Will Always Fail (and What Works Instead)
The surprising truth about leadership styles that can make or break your team’s success.

Leadership has always been as much about people as it is about performance. Ken Blanchard, in his influential book, “The One Minute Manager”, put it simply: different strokes for different folks. (more…)
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What Every New CEO Must Do in Their First 100 Days (or Risk Failure)
Your first 100 days as CEO could define your entire legacy, here’s how to make every move count

When Tim Cook took over from Steve Jobs at Apple, the world watched with bated breath. Jobs wasn’t just a CEO; he was a visionary, an icon, and a legend of innovative leadership. (more…)
Entrepreneurs
The Leadership Shift Every Company Needs in 2025
Struggling to keep your team engaged? Here’s how leaders can turn frustrated employees into loyal advocates.

In workplaces around the world, there’s a growing gap between employers and employees and between superiors and their teams. It’s a common refrain: “People don’t leave companies, they leave bad bosses.”
While there are, of course, cases where management could do better, this isn’t just a “bad boss” problem. The relationship between leaders and employees is complex. Instead of assigning blame, we should explore practical solutions to build stronger, healthier workplaces where everyone thrives.
Why This Gap Exists
Every workplace needs someone to guide, supervise, and provide feedback. That’s essential for productivity and performance. But because there are usually far more employees than managers, dissatisfaction, fair or not, spreads quickly.
What if, instead of focusing on blame, we focused on building trust, empathy, and communication? This is where modern leadership and human-centered management can make a difference.
Tools and Techniques to Bridge the Gap
Here are proven strategies leaders and employees can use to foster stronger relationships and create a workplace where people actually want to stay.
1. Practice Mutual Empathy
Both managers and employees need to recognize they are ultimately on the same team. Leaders have to balance people and performance, and often face intense pressure to hit targets. Employees who understand this reality are more likely to cooperate and problem-solve collaboratively.
2. Maintain Professional Boundaries
Superiors should separate personal issues from professional decision-making. Consistency, fairness, and integrity build trust, and trust is the foundation of a motivated team.
3. Follow the Golden Rule
Treat people how you would like to be treated. This simple principle encourages compassion and respect, two qualities every effective leader must demonstrate.
4. Avoid Micromanagement
Micromanaging stifles creativity and damages morale. Great leaders see themselves as partners, not just bosses, and treat their teams as collaborators working toward a shared goal.
5. Empower Employees to Grow
Empowerment means giving employees responsibility that matches their capacity, and then trusting them to deliver. Encourage them to take calculated risks, learn from mistakes, and problem-solve independently. If something goes wrong, turn it into a learning opportunity, not a reprimand.
6. Communicate in All Directions
Communication shouldn’t just be top-down. Invite feedback, create open channels for suggestions, and genuinely listen to what your people have to say. Healthy upward communication closes gaps before they become conflicts.
7. Overcome Insecurities
Many leaders secretly fear being outshone by younger, more tech-savvy employees. Instead of resisting, embrace the chance to learn from them. Humility earns respect and helps the team innovate faster.
8. Invest in Coaching and Mentorship
True leaders grow other leaders. Provide mentorship, career guidance, and stretch opportunities so employees can develop new skills. Leadership is learned through experience, but guided experience is even more powerful.
9. Eliminate Favoritism
Avoid cliques and office politics. Decisions should be based on facts and fairness, not gossip. Objective, transparent decision-making builds credibility.
10. Recognize Efforts Promptly
Recognition often matters more than rewards. Publicly appreciate employees’ contributions and do so consistently and fairly. A timely “thank you” can be more motivating than a quarterly bonus.
11. Conduct Thoughtful Exit Interviews
When employees leave, treat it as an opportunity to learn. Keep interviews confidential and use the insights to improve management practices and culture.
12. Provide Leadership Development
Train managers to lead, not just supervise. Leadership development programs help shift mindsets from “command and control” to “coach and empower.” This transformation has a direct impact on morale and retention.
13. Adopt Soft Leadership Principles
Today’s workforce, largely millennials and Gen Z, value collaboration over hierarchy. Soft leadership focuses on partnership, mutual respect, and shared purpose, rather than rigid top-down control.
The Bigger Picture: HR’s Role
Mercer’s global research highlights five key priorities for organizations:
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Build diverse talent pipelines
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Embrace flexible work models
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Design compelling career paths
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Simplify HR processes
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Redefine the value HR brings
The challenge? Employers and employees often view these priorities differently. Bridging that perception gap is just as important as bridging the relational gap between leaders and staff.
Treat Employees Like Associates, Not Just Staff
When you treat employees like partners, they bring their best selves to work. HR leaders must develop strategies to keep talent engaged, empowered, and prepared for the future.
Organizational success starts with people, always. Build the relationship with your team first, and the results will follow.
Entrepreneurs
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