Organizations face the challenge of controlling the tendency of executives competing for resources to present overly optimistic plans. A well-run organization will reward planners for precise execution and penalize them for failing to anticipate difficulties, and for failing to allow for difficulties that they could not have anticipatedâ€”the unknown unknowns.

Daniel Kahneman

Daniel Kahneman

Related Quotes

If you think in terms of major losses, because losses loom much larger than gains - that's a very well-established finding - you tend to be very risk-averse. When you think in terms of wealth, you tend to be much less risk-averse.

— Daniel Kahneman

BecauseFindingGains

It is the consistency of the information that matters for a good story, not its completeness. Indeed, you will often find that knowing little makes it easier to fit everything you know into a coherent pattern.

— Daniel Kahneman

CoherentCompletenessConsistency

It's a wonderful thing to be optimistic. It keeps you healthy and it keeps you resilient.

— Daniel Kahneman

HealthyKeepsOptimistic

We think, each of us, that we're much more rational than we are. And we think that we make our decisions because we have good reasons to make them. Even when it's the other way around. We believe in the reasons, because we've already made the decision.

— Daniel Kahneman

AroundBecauseBelieve

Policy makers, like most people, normally feel that they already know all the psychology and all the sociology they are likely to need for their decisions. I don't think they are right, but that's the way it is.

— Daniel Kahneman

DecisionsFeelKnow