Ideas + Insights
Unconscious bias shapes how people interact, make decisions and lead teams. It influences recruitment, performance conversations, strategic planning and even the markets businesses choose to invest in. For leaders committed to sustainable growth and strong workplace culture, addressing bias is essential to improving clarity, collaboration and performance at every level.
What is unconscious bias and why does it matter?
Bias is the brain’s way of managing information quickly. It draws on past experiences, assumptions and familiar patterns to help us make decisions with less effort. This mental shortcut saves energy and allows us to process vast amounts of information without overloading.
But the same efficiency that helps us respond quickly can also distort our thinking. Bias can lead to snap judgments that overlook facts, ignore context and limit perspective. These distorted patterns influence how we view others, how we behave and how we lead.
We all have bias. If you have a brain, you are biased. Research published in The Permanente Journal describes unconscious bias as a natural condition of human cognition. It exists because of how our brains are wired.
Our brains are constantly filling gaps in our knowledge or experience without us realising. When we encounter limited or ambiguous information, especially in social situations, we rely on familiar shortcuts to make sense of it. These mental patterns help us understand social roles, status and group dynamics, and can be extremely helpful, but they are not always accurate.
When decisions are made without full information, or when assumptions go unchallenged, our choices are influenced in ways we do not always recognise.
There are more than 170 known types of bias, shaped by everything from personal upbringing to cultural norms. Many of these operate unconsciously, which makes them difficult to detect and even harder to change without conscious effort.
For business leaders, this matters. Bias can affect hiring, collaboration, leadership development and strategy. Understanding it is the first step toward making clearer, fairer and more effective decisions.
The two main types of bias
Bias can generally be grouped into two categories: cognitive bias and unconscious bias.
Cognitive bias stems from individual experience and mental shortcuts that affect how we interpret information. Common examples include:
- Confirmation bias – focusing only on information that supports existing beliefs
- Anchoring bias – relying too heavily on the first piece of information received
- In-group bias – favouring people who belong to our own group or background
- Sunk cost fallacy – continuing with a decision based on past investment, even when it is no longer the best course of action
- Hindsight bias – refers to our tendency to perceive events as more predictable after they have happened.
- Halo effect – refers to our tendency to allow our impression of other people in a specific area to influence our overall impression. For example, ‘she did a great medical exam so she must be a great leader.’
- Consensus bias – when you overestimate how similar your beliefs or values are to another person or group of people. For example ‘I like sports so all people are interested in sports’.
Unconscious bias is shaped by broader societal influences and stereotypes. These include:
- Affinity bias – preferring people who seem similar to us
- Conformity bias – when we change our views or beliefs to match the opinions of others – also known as ‘the bandwagon effect’.
- Name bias – making assumptions about someone based on their name
Authority bias – placing too much trust in those with perceived status or seniority
Distance bias – giving more weight to the opinions or needs of those who are physically closer - Gender bias – when we either favour someone or think less of them because of their gender.
- Non-verbal bias – we judge someone positively or negatively based on nonverbal cues, such as their posture or body language.
Both types of bias impact decision quality, team dynamics and organisational performance.
How bias shows up in business
Bias influences how leaders assess people, manage risk and navigate change. In recruitment, it can lead to favouring candidates who feel familiar rather than those best suited to the role. In team discussions, it can result in some voices being overlooked while others are given undue weight. And in strategy, it can shape assumptions about markets, customer needs or competitor behaviour without a strong foundation in data.
When left unchecked, bias limits innovation, reduces trust and contributes to inequality in the workplace. It also clouds judgment, which increases business risk.
Practical steps to address bias
Reducing bias isn’t about eliminating it completely – it’s about recognising it and putting guardrails in place. Here are practical steps managers and leaders can take:
1. Acknowledge we have biases
Acknowledge that bias exists in everyone. Self-awareness however creates the foundation for better choices.
2. Learn from your past decisions
Look back at previous choices and ask where you may have overlooked something or relied too heavily on instinct. Identifying patterns builds awareness and strengthens future decision making.
3. Lead with curiosity
Be willing to listen without rushing to respond. Good questions come from genuine curiosity. Let go of the need to be right and focus on understanding others more deeply.
4. Build a growth mindset
A growth mindset sees mistakes and feedback as opportunities to learn. Leaders who model this approach create more adaptive, inclusive and high-performing teams.
5. Explore the opposite view
Challenge your first reaction by exploring the opposite perspective. This approach sharpens critical thinking and helps you engage with greater empathy and openness.
6. Seek diverse input
Bring in perspectives that differ from your own. Ask questions of people outside your usual circle. Diversity of thought and backgrounds supports better problem solving and more informed decisions.
7. Look for disconfirming evidence
Actively search for information that contradicts your beliefs. It may feel counterintuitive, but it leads to greater clarity and stronger outcomes.
8. Practice intellectual humility
Stay open to the idea that you might be missing something. Asking “What else could be true?” helps shift thinking, improve relationships and reduce blind spots.
9. Pause before making decisions
Bias thrives in fast-paced environments. Build in time for reflection especially for hiring, performance evaluations, and strategic planning. Slowing down allows for more deliberate, informed action.
10. Encourage structured conversations about bias
Normalise talking about bias in team settings. Use examples to explore bias and how it plays out in customer and stakeholder interactions.
Why addressing bias pays off
Working with bias rather than ignoring it creates better outcomes. It strengthens decision making by improving access to relevant facts and ideas. It helps teams collaborate more effectively by making space for different contributions. It supports innovation by widening the range of inputs that shape new thinking.
Companies that invest in reducing bias often experience higher engagement, better talent retention and stronger reputations in the market. They also benefit from smarter risk management and the ability to identify opportunities others overlook.
Final thought
Bias will always exist, but its impact can be reduced. The most effective leaders are the ones who take this seriously and build systems and cultures that support clear thinking and inclusive decision making. Every time a leader challenges their assumptions, asks a better question or brings in a different perspective, they strengthen their organisation from the inside out.
We help leadership teams develop these capabilities through strategy, advisory and tailored coaching. If you would like to learn more about how to make better decisions and build a culture that supports performance and inclusion, we would be glad to support you.
