Charles Darwin claimed that those forms of life which adapted best to their specific environments through the selection of genetic mutations out-survived competing organisms. Among all species, humans stand out in their ability to adapt to a large variety of natural environments encountered on this planet. The question is what Darwin meant by adaptation. To answer, we need to distinguish between two types of evolution: 1. Biological evolution (progressing very slowly – our DNA is virtually undistinguishable from that of ancient Egyptians some 5000 years ago) and 2. Cultural evolution (progressing very fast – think of the profound technological, medical or educational advances of the past 200 years).
While our genetic heritage has hardly changed, social and cultural environments have changed beyond recognition for all but the most remote populations on earth. For the civilized Westerners, what used to be caves are now apartments, Instagram has taken over from campfires as a forum for storytelling, supermarkets and online shopping platforms have made hunting and gathering obsolete.
The chasm between biological and cultural evolution (aka evolutionary mismatch) has various consequences: cardiovascular disease resulting from a sedentary lifestyle and an unnaturally calorie-rich diet, mental disorders from an incessant stress unknown to our ancestors. At the same time, we remain subject to age-old, but now largely irrelevant drivers of evolutionary selection, above all the principle of energy preservation. The evolutionary mismatch has a detrimental impact on effective leadership, one of the hallmarks of which is sound decision-making.
Hard-wired behavioral patterns which saved energy, including brain power, were over the course of biological evolution selected over energy-wasting behaviors. Not thinking consumes less energy than thinking, hence our analytical thinking is typically limited to new challenges. It would be energetically wasteful and time-consuming to re-examine familiar situations each time they re-occur. Acquired skills, customs or habits are behavioral shortcuts proven to effectively and efficiently address recurring challenges. Most of our daily decisions are consequently ‘automated’ – executed without much thought.
Some behavioral shortcuts are particularly powerful, and difficult to overcome. As evolutionary adaptations selected for their energy-savings, they are innate and not of our choosing. We must make a conscious effort to discard them – if we recognize them in the first place.
Here are the five most ‘popular’ behavioral traits and biases caused by our innate tendency to save ‘brain energy’ – and which typically lead to bad outcomes.
- Confirmation Bias: Seeking out information that confirms existing beliefs (and discarding conflicting information) helped our ancestors make quick, reflexive decisions. Conflicting information requires analysis, it can lead to indecision in critical survival situations, thereby underming the authority of leaders. Playing devil’s advocate is the antidote of choice – or to hire somemone to take on that role. Warren Buffet is known for tasking analysts specifically with gathering and defending only arguments against an acquisition he is planning to make, and paying them a bonus if they prevail against those favoring the deal.
- Simplicity Bias: The preference for simpler explanations over more complex ones helps conserve cognitive resources by reducing the amount of information that needs to be processed. A common symptom is to base decisions on assumptions or anecdotal evidence rather than on gathering and thoroughly analysing the data.
- Loss Aversion and Sunk Cost Fallacy: Avoiding losses of resources (including food sources) was critical for survival in prehistoric times. Correspondingly, the pain of losing resources outweighs the pleasure of gaining equivalent resources. Business leaders might therefore focus more on avoiding losses rather than pursuing gains, potentially leading to overly conservative strategic decisions. By the same token, decisions to cut losses and redirect resources to other, more promising projects may be considered to be too painful to make, hence ‘good money is thrown after bad’ in the often self-delusional hope that fortunes will eventually reverse.
- Short-Termism: Immediate gains and rewards were more critical for survival than long-term planning. Securing food, shelter, and safety in the short term had direct impacts on survival. Business leaders may prioritize short-term results, potentially sacrificing sustainable future success for immediate gains. Good corporate governance mitigates this urge by incentivizing executives in such ways as to ensure long-term, sustainable organisational success.
- Social Proof and the Principle of Liking: Looking to others for cues on how to behave or make decisions instead of coming to one’s own conclusions saves time and energy. It is easier to adopt strategies or decisions that are popular or have been endorsed by others, particularly if they higher in social or hierachical rank. Using shortcuts in decision-making by mimicking the convictions and behaviors of others is the opposite of leadership, and the reason why leadership and entrepreneurship are so rare.
These are but a few behavioral patterns originating in the principle of energy-preservation. Behavioral scientists keep a list of over 180 cognitive biases which makes some of them question whether rational decision-making is at all possible. Have deterministic physicists join the discussion, claiming that free will is an illusion, and you might decide to spend the rest of the day on the beach. 😉
So much for the diagnosis. But how can decision-makers avoid fallen into the trap of evolutionary mismatch, and acquire skills, habits and strategies that ensure more rational, effective decision-making?
A danger foreseen is half avoided – awareness (and hopefully, this article) covers the first half. For the second half, simulations, scenarios and role plays customized to their ‘natural environment’ helps managers and executives in businesses or public organisations unlearn counterproductive habits, whether they are due to hard-wired evolutionary factors or acquired over time.