How is it possible that so many companies fail to react while they are being disrupted?
The normalcy bias is the tendency of people to ignore the probability of a large negative event or a disaster happening to them, just because it has not happened to them before.
This results in people and companies refusing to plan for things which could impact them negatively, such as another company disrupting them, even after they have been warned or the event has even begun to happen.
Ironically, humans have a strong negativity bias, so one might expect them to want to react strongly to threats to their survival.
However, the human brain also has a tendency to value immediate things more than things in the future, and if there is currently no disaster it is therefore easier to believe there will be no disaster in the future either.
Unfortunately, this bias may result in company decision makers ignoring the need to react or change, even in the face of a major change or disruption which faces the survival of the company.
Latest posts by Nick Skillicorn (see all)
- Self-Serving bias: Why you think nothing is your fault - August 9, 2023
- We are all sheep - August 2, 2023
- Planning fallacy: Why we are so bad at predicting how long something will take - July 27, 2023
- Pygmalion effect: The self-fulfilling prophecy - July 24, 2023