Decisions

Noise: 6 key ideas

The core ideas of Noise, each in under a minute, written in our own words. Want the full depth? Get the book.

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  1. IDEA 1 OF 6

    Bias and noise are different

    Bias is judgements consistently off in one direction.

    Noise is unwanted scatter: different experts, or the same expert on different days, giving different answers to the same case.

  2. IDEA 2 OF 6

    Noise is everywhere

    Insurance quotes, sentencing and hiring decisions vary wildly between people looking at identical files.

    Organisations rarely measure it, so they rarely see it.

  3. IDEA 3 OF 6

    Run a noise audit

    Give several people the same cases independently and compare answers.

    The spread shows how much of your decision-making is a lottery.

  4. IDEA 4 OF 6

    Decision hygiene

    Like handwashing, you don't need to know which error you're preventing.

    Structure, independence and aggregation reduce noise in general.

  5. IDEA 5 OF 6

    Break judgements into parts

    Score the components of a decision separately before forming an overall view.

    Delay intuition until the facts are in.

  6. IDEA 6 OF 6

    Average independent views

    Combining judgements from people who formed them separately cancels out much of the random error.

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