Are you MisReading your KPIs? Beat the Biases in 8 secs with Critical Thinking

If you misread your KPIs, you will adopt the wrong strategy and ultimately lose clients.

Critical Thinking will help you avoid that!

Biases inevitably lead to misinterpretation of the situation. If you read the situation wrong, you'll take action without getting the result you want.

You'll apply a great strategy to the wrong situation.

This applies to business and every other field of your life.

Of course, reading the KPIs as they really are and having a good strategy doesn't guarantee success.

However, it does give you a chance.

I have met many solopreneurs and small business owners who simply don't bother. They are certain that they or their gut are correct.

Why waste time confirming what you already know?

This is a bias.

“It is a capital mistake to theorize before one has data.” ~ Sherlock Holmes

Our minds play tricks on us. They create biases that distort our view of reality to fit what we want, making it either better or worse than it actually is. There are a number of beliefs that will prevent you from seeing your KPIs.

Some examples you might have heard:

• "The data confirmed what I already knew to be true" (confirmation bias)

  
  

• "Out of 3 – or 30 – KPIs, this one – the only one that supports my idea – is the only one that counts!" (Selection bias)

  
  

• "I already know how it is going, so there's no need to waste time" (Overconfidence bias)

  
  

• "It's/would be good for this KPI to reach this value - regardless of how the whole previous year went!" (Anchoring bias)

  
  

• "That's what a client told me yesterday." (Anchoring bias)

  
  

The list could go on.

But there is still hope!

Critical thinking is the art and science of thinking about your own thoughts. "I need to know why I'm thinking this way."

By understanding your own thinking, you can identify your biases and see your KPIs for what they really are, not how you want or fear them to be. It doesn't matter how bad they are, nothing is more dangerous than imagining what's not there.

I'm going to show you how, step by step.

Let's see how it works!

In this journey, we'll accompany our friendly neighbourhood course creator Chris. She teaches data, so she always sets out to avoid biases when she looks at her KPIs.

Step # 1: Activate Critical Thinking. Do you have proof or a reason to think what you are thinking?

Many decisions we take during our day are automatic.

When we make automatic decisions, we are susceptible to our biases, even if we are not aware of it.

On the one hand, taking automatic decisions helps us get through the day. Let's be honest, no one wants to spend all day wondering and debating how much face wash to use in the morning.

On the other hand, when it counts, we must slow down and make mindful decisions.

Chris starts not by checking her KPIs, but by writing down her assumptions and asking herself why she is thinking what she is thinking. She feels uncomfortable at times, but she is certain that getting through her biases will help her in the end.

She knows the most common (wrong) answers are:

• "This is how it feels day after day."

  
  

• "This is what happened yesterday."

  
  

• "I really don't want the other option."

Step # 2: Summarise all KPIs, clearly showing how they connect to each other.

Now is the time to check the KPI that reflects your thoughts.

This next step is where most people go wrong. Take your time to really look at them and consider their connections and how they interact between each other and with the assumptions you just listed.

Check the latest results and the previous ones.

Step # 3: Propose a compelling counter-argument

Finally, we must determine if there is another way to read the KPIs. Critical thinking is based on criticism, scepticism and questioning.

We will now debate the point we made at the start of our list and the opposite point.

We must be positive that we are debating the correct point both times!

Chris makes a list with at least three reasons to agree with each side. She prefers a list, but knows that listening to your recorded vocal debate is just as effective.

She then selects the one side that satisfies all KPIs, makes sense with the trends and wins against a weaker opposite argument.

She knows she's beaten the biases and starts building her strategy accordingly.

And you will too!

Beat the Bias with Critical Thinking

I've done it. What's next?

Next is repetition.

As it doesn't take only one glass of water to quench thirst, going through these steps once won't help you much.

Once you're comfortable using this method, you can try our critical thinking challenge.

Keep going!

You can do it! ;)