Resource Allocation: Avoid the halo effect

 
 

First Seen

McKinsey & Company

Bias busters: Avoiding snap judgments

November 2019 | Article
By Tim Koller, Dan Lovallo, and Phil Rosenzweig



 

Why It’s Interesting

  • Halo effect is the tendency for positive impressions of a person, company, brand or product in one area to positively influence one's opinion or feelings in other areas. It is a type of cognitive bias and is the opposite of the horn effect. Wikipedia

  • Structured interviews can help avoid these types of errors

  • Resource allocation decisions need to be made based on valid indicators

  • Acknowledge your intuitions then take a minute to question yourself