Selective Bias

By Gregory Ronczewski, Director of Product Design at Ibbaka. His skill profile.

Although displaying a bias is probably not a highly desired virtue, it depends on the context, and frankly, it is nothing to be ashamed of. We each carry a list of values - essential things, activities, and objectives. The list differs from person to person. Sometimes we see an alignment in specific values. Sometimes we do not see it. We call it Selective Attention Bias. Here is a definition from The Decision Lab:

"The attentional bias describes our tendency to focus on certain elements while ignoring others. Research has shown that many different factors can bias our attention, from external events and stimuli (such as a perceived threat to our safety) to internal states (such as hunger or sadness)."

And here are a few words from Verywellmind.com

"Attentional biases are a common phenomenon, and in most cases, they operate automatically and unconsciously. While they can often be adaptive and may even aid in survival, they can also serve to negatively impact decision-making and contribute to problems with depression and anxiety. While it isn't possible to eliminate these biases, becoming aware of their effects and being mindful of other sources of information may help you make more informed, accurate choices."

While, as described above, the process is automatic and unconscious, other attributes may be of interest. For instance, the higher something is on the list of values, the more quickly we tend to act upon it, with items on the top receiving instant action without even analyzing the context. Simply put, we filter the world around us through the lens of values and their effect on everything. For a parent, the child tops the list. For a business owner, it may be NDR—we have a series of posts on Net Dollar Retention—customer churn, the well-being of employees and the desire for business to flourish. For an athlete, it will be breaking personal records, participating in the Olympics, or simply meeting a goal that drives performance.

Thinking, as always, complicates everything - analyzing, discussing, and checking the outcomes. However, regardless of what we do, the list of values remains in place and drives our actions, whether we like it or not, which is not bad. Everyone needs a compass, and having a value-based unit is excellent.

There is another way to look at our value list - they become value drivers. Here is how Gartner defines them:

"Value drivers are factors that increase the worth of a product, service, asset or business. In the case of a product, it could be a differentiating capability that makes the product a must-have for customers."

So again, in the business setting, with people at the helm, decisions are made through a value lens. And again, what tops the list will result in immediate action. Quite often, the value delivered to the customer makes it to the top. And to make it even more interesting, value drivers can be organized into emotional, economic, and community categories.

Let's look at Ibbaka Valio - our software platform for managing value models, creating value stories and connecting price to value. We start with a value model, adding value drivers, which are simple equations, including numbers for the variables, and estimating the revenue, cost or risk impact. Then, through market research and analysis, such as surveys and interviews we validate the value drivers across the buying process. The objective is to validate existing and new hypotheses. With a value model in place, Ibbaka Valio presents an opportunity to create and test several pricing models. The value story is where everything comes together. Because the processes, the information flow, and the organization of the platform are based on the way humans operate regardless of age, gender or profession, the outcome offers a chance to maximize the economic value of each customer segment, improve pricing over time, and tell a value story that speaks to customers.

As Karen Chiang, Managing Partner at Ibbaka, said:

“The new Valio offering is well positioned to help innovative product companies drive revenue growth. Value Storytelling is a real game changer for both new sales and customer retention. Finally, customers can recognize the economic value received.”

I am sure you have your value list, whether personal or engraved in business activities. It's pretty powerful to see the things that drive our daily activities and our imagination represented in a value story - even more, in a value story that allows you to change variables and immediately see the outcome. We are one click away - what are you waiting for?