New member board training and the pitfalls of cognitive bias: Beware the Dunning Kruger bias. Don’t get derailed at the board level

Introduction: As you embark on your journey as a new board member in a complex organization, it’s vital to be aware of the cognitive biases that can impact your decision-making and leadership. One such bias is the Dunning-Kruger effect, a phenomenon that affects individuals across various levels of expertise and experience. In this blog post, we’ll explore how this effect can be particularly disruptive for new board members and offer strategies to recognize and mitigate its impact.

Understanding the Dunning-Kruger Effect: At its core, the Dunning-Kruger effect describes a cognitive bias where individuals with limited knowledge or competence in a specific area overestimate their abilities. This overestimation can lead to a false sense of confidence, which in the context of a board member, can result in misguided decisions and strategies.

The Impact on New Board Members: For new board members, especially in complex organizations, the Dunning-Kruger effect can be particularly insidious. The initial lack of deep understanding about the organization’s intricate workings can lead to an overestimation of one’s ability to make immediate, impactful decisions. This overconfidence might not only hinder the organization’s progress but can also damage your credibility and relationships with other board members and stakeholders.

Recognizing the Signs

Overconfidence in Decision-Making:

Be wary of feeling too confident in your decisions, especially when you’re new to the board. If you find yourself not seeking advice or disregarding the input of more experienced members, it might be a sign of the Dunning-Kruger effect in play.

Underestimating Complexity:

If you find yourself simplifying complex issues or rushing to conclusions without fully understanding the nuances, it’s time to step back and reassess.

Failure to Recognize Expertise:

Not recognizing or valuing the expertise of fellow board members or employees can be a red flag. Effective board members understand and respect the knowledge and experience of others.
Strategies to Mitigate the Effect:

Commit to Continuous Learning:

Acknowledge that there is always more to learn. Engage in ongoing education about the organization’s workings, industry trends, and governance best practices.

Seek Diverse Perspectives:

Actively seek out the opinions and insights of other board members and employees. Diverse perspectives can provide a more rounded view of the issues at hand.
Reflect on Your Decisions: Regularly take time to reflect on your decisions and their outcomes. This self-reflection can help you gauge your understanding and effectiveness.

Embrace Feedback:

Be open to feedback from your peers and stakeholders. Constructive criticism is invaluable for growth and improvement.
Hire a Mentor or Coach: Consider engaging with a mentor or coach who has more experience in board governance. They can provide guidance, feedback, and insights that are crucial for your development.

Conclusion:

The Dunning-Kruger effect is a natural cognitive bias that can affect anyone, especially those new to complex roles like board membership. By being aware of this phenomenon and actively working to counteract it, you can significantly enhance your effectiveness as a board member. Remember, the key to overcoming this challenge lies in humility, openness to learning, and a willingness to embrace diverse perspectives.

As you continue your journey as a board member, keep these insights in mind. They will not only help you avoid common pitfalls but also empower you to make a meaningful impact in your organization.

A Deeper Dive:

David Dunning and Justin Kruger are the researchers behind the Dunning-Kruger effect. Their story and the development of this psychological concept are quite interesting.

David Dunning: David Dunning is a social psychologist who has focused much of his research on the study of human misbelief. As of April 2023, he was a Professor of Psychology at the University of Michigan, having previously taught at Cornell University. His research interests extend to the areas of social cognition, self and identity, and the interplay between the two.

Justin Kruger: Justin Kruger, a lesser-known figure compared to Dunning, was a graduate student when he co-authored the seminal paper on the Dunning-Kruger effect. Kruger’s academic journey is less publicized, but he played a crucial role in the development of the theory.
The Development of the Dunning-Kruger Effect: The story of the Dunning-Kruger effect began in the late 1990s. It was inspired, in part, by the case of McArthur Wheeler, a man who robbed banks while believing that lemon juice could render him invisible to surveillance cameras. This incident led Dunning and Kruger to investigate the relationship between competence and self-awareness.

The Seminal Study: In 1999, Dunning and Kruger published their groundbreaking study in the Journal of Personality and Social Psychology. They conducted a series of experiments where participants were asked to perform tasks in humor, grammar, and logical reasoning. After completing these tasks, they were asked to estimate their performance. The results showed that those who performed poorly often grossly overestimated their performance, illustrating a significant gap between perceived and actual competence.

Recognition and Impact: The paper, “Unskilled and Unaware of It: How Difficulties in Recognizing One’s Own Incompetence Lead to Inflated Self-Assessments,” quickly garnered attention. It not only introduced the Dunning-Kruger effect into psychological literature but also made its way into popular culture, offering a label for a common human experience.

The research received the Ig Nobel Prize in Psychology in 2000, a satirical prize that honors achievements that “first make people laugh, and then make them think.”

Legacy: The Dunning-Kruger effect has had a significant impact on psychology and has applications in various fields, including education, management, and self-development. It remains a popular topic in both academic circles and public discourse, often cited in discussions about competence, self-perception, and cognitive biases.

The story of Dunning and Kruger is a testament to the impact that thoughtful, well-designed psychological research can have on our understanding of human behavior and cognition. Their work continues to influence and inform our understanding of how people perceive and assess their own abilities.