Cognitive biases mainly affect the decisions we make and in the business world,

people need to make important decisions every day and these decisions are often made
without delay and have a wide range of foraging consequences. Now based on the
video, there is a system, which is more of a process and a habit than a bullet, which
means making unexpected decisions, in fact, this system helps people to make
decisions in a more rational and objective way and preventing them cognitive bias in
order to make effective decisions, this system is called "diligence-based strategy”. By
following this approach, people in the business world will be able to take decisions or
actions quickly and it also allows organizations to develop strategies because in the
21st century, business is not easy due to the appearance of threats such as new
competitors, existing brands and good products that may be liked by customers of
course, we cannot deny that as the world continues to change new trends, brands and
products appear on the market and as we all know, people like to follow trends and
often want new things, therefore, using a diligence-based strategy, it will allow
organizations to collaborate on change and avoid being left behind by competitors.
Some companies are trying out revolutionary new strategies including market research,
trend analysis, and core business models but this is the wrong approach because
organizations that use traditional strategic methods are more likely to fall behind in
today's competition and organizations tend to use more space and judgment and this
can only show that traditional strategies are not always useful, especially in this century,
so organizations must rely on strategies based on diligence, which allow them to turn
their attention to a small number of ordinary business activities like sourcing inputs,
managing customer relationships and developing people. Diligence focuses on by
optimizing operations, organizations can promote the conditions for better, more
thoughtful, and longer-term strategies to emerge but in terms of developing diligence, it
requires different kinds of thinking, stated also in the video that the best executives
primarily get what they can control, they based more on measurement and evidence
than opinion and persuasion, many companies discover that big data can provide
reliable information for decision making and in able to identify fundamental activity as an
executive, you need to ask yourself this question, Does mastering this activity contribute
to the performance of the company? Can activity be measured and monitored reliably?
Therefore, the company must have only a few basic activities, such as sourcing inputs,
managing the supply chain, or serving customers, it is only isolating the company’s
fundamental activities that the work of optimization occur and the most important thing
is the management personnel should use available technology and data sources to
gather information about the company's activities and sometimes, making decisions
based on emotional reactions and incomplete information, the success of a company
can become slow and weak, that is why the diligence-based strategy enables
companies to systematically focus on the things that matter most and improve the basic
operations that lead to success.