80 percent of startups miss their market predictions...

Nearly 80% of startups miss their market predictions, and one big culprit is the planning fallacy— a cognitive bias that skews our forecasts with unwarranted optimism.

This bias leads us to underestimate time, costs, and risks while overestimating benefits. It can derail even the most promising ventures.

In fact, a recent McKinsey report found that up to 70% of large-scale projects exceed their budgets due to underestimated complexity and unforeseen challenges. Startups, fueled by innovation, are especially at risk.

The good news?

Awareness is the first step to countering this bias.

Here are some strategies to mitigate the planning fallacy:

1.       Anchor forecasts in reality

2.       Break projects into manageable parts with clear deadlines

3.       Add “buffer” time to account for unexpected delays

4.       Build solid contingency plans (a difference maker in delivering)  

5.       Stay flexible to pivot when challenges arise

We’ve all faced these hurdles.

How has the planning fallacy impacted your team or project?  

What strategies have you found effective in overcoming these planning pitfalls?

Share your insights below, and help others sharpen their leadership “edge” in planning!

#CognitiveBias #Planning #ExecutiveCoaching #MindKnotsBook