Managing Overconfidence
- Read Time: 31 min
Good decision making should include an understanding of the limits of our knowledge — or metaknowledge. Because overconfidence is deeply rooted in our culture, and because metaknowledge is not recognized, rewarded or formally taught, overconfidence remains a hidden flaw in managerial decision making. This article examines the costs, causes and remedies for overconfidence, while acknowledging that overconfidence can still serve a purpose during decision implementation.