Tuesday, December 16, 2008

Removing Bias

distorted lotus
I am thrilled to bits!
I wish you could see the grin on my face as I type this.
Some time ago, I had proposed a new mechanism of studying companies.
I repeat my conclusions here:

If I were to conduct a scientific study on business strategies, I would report the context and the decisions live, recording the thought process (as revealed by behaviour) as it happens, without drawing any conclusion. Very much like the National Geographic or such similar recordings of wild life.

I might have just hit upon a new field of management study :-))))
Remember, you read it here first!

Now why am I thrilled?

I just started reading The Black Swan by Nassim Nicholas Taleb (those who have been following my blog already know that I have become a big fan of his after reading Fooled By Randomness. I have quoted from Fooled By Randomness here, here and here.)

Anyways, a few pages into the Black Swan and what do I see?

"While we have a highly unstable memory, a diary provides indelible facts recorded more or less immediately; it thus allows the fixation of our unrevised perception and enables us to study later events in their own context."

Taleb is trying to introduce a method of removing what he calls,
"the retrospective distortion, or how we can assess matters only after the fact, as if they were in a rear view mirror (history seems clearer and more organised in history books than in empirical reality."

I am pleased as a punch to know that I am thinking on same lines as Taleb.

Note: The picture used here belongs to Neil Gould. To see more of his pictures visit his gallery.

Stumble Upon Toolbar

No comments:

My Library