Rootstrap Blog

Category: Cognitive bias

Total 2 Posts

The Value Pyramid

A mental framework to identify at which level your organization is generating value to your clients.

The value pyramid is based on the business value chain developed by Michael Porter in 1985. Porter’s detailed version charted the actions and capabilities of a business provides in steps that progress from basic to advanced.

Our tech service pyramid shows the four main levels of the value chain specific to computer service providers: skills, processes, strategy, and vision. Your company might be positioned on any of these levels, depending on your capabilities and your customers’ requirements.

Where value is delivered
Delivering value can be done at a single level or rise to include multiple levels on the pyramid. For example, your client might require the application of your skills to build a software platform as well as a process to achieve the production and integration of the software. But they might not require an advanced strategy or vision from you.

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Availability Heuristic

We are all blind — all of us. Even worse? We’re blind to our blindness.

We’re all victims to a wide range of cognitive biases that impair our decision making. But in my experience, the single most impactful cognitive bias that affects our business decisions is the “Availability Heuristic”.

Unfamiliar with the concept? We can reduce it, more or less, to a very simple phrase: “What I see is all there is”.

More formally, it’s this: we tend to think that things that come to mind quickly are the best representations of reality.

We can’t avoid it. It’s hardcoded into our primitive brain, which has to jump to conclusions fast and make decisions to survive.

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