"When rational leads to absurd" : the impact of cognitive biases in corporate decision-making.
Seance of wednesday 25 june 2025 (Les biais cognitifs)
DOI number : 10.26299//2025.24.02
Abstract
The uncertainty of our current environment and the context of information overload expose decision-makers to cognitive biases in strategic decision-making. This poses the danger of absurd decisions, a real nightmare for managers.
Making a decision then becomes a perilous exercise! Investing in a financial instrument without knowing what the funds will be used for, developing a marketing strategy that runs counter to the profile of the company's historical customer base, surrounding oneself with people who automatically validate what the hierarchy has to say, carrying out a financial operation without a validation process.
These are just a few examples of costly decisions taken by ‘rational, educated, serious’ individuals that appear absurd from the outside, but which were made possible by the context.
Why? How? Questioning the decision-making process becomes an essential exercise to remain lucid and strengthen our intellectual immune system in these times of withdrawal.
Making a decision then becomes a perilous exercise! Investing in a financial instrument without knowing what the funds will be used for, developing a marketing strategy that runs counter to the profile of the company's historical customer base, surrounding oneself with people who automatically validate what the hierarchy has to say, carrying out a financial operation without a validation process.
These are just a few examples of costly decisions taken by ‘rational, educated, serious’ individuals that appear absurd from the outside, but which were made possible by the context.
Why? How? Questioning the decision-making process becomes an essential exercise to remain lucid and strengthen our intellectual immune system in these times of withdrawal.