The Ostrich Effect: Why we focus on the trivial and ignore the material
“Ignoring facts does not make them go away.”
There are many examples of successful companies ignoring the looming threat to their business.
Blockbuster didn’t take Netflix seriously in 2007 when it posted more than $1 billion in revenue; by 2010, the video rental store had filed for bankruptcy.
And Kodak, the king of film, famously overlooked the rise of digital photography.
The company misjudged the digital revolution, an ironic twist given the first digital camera was invented by a Kodak engineer, Steve Sasson, in 1975.
As the years passed, the new devices became smaller, cheaper, and better.
And what did Kodak do? They doubled down on film.
They were so enamoured with the existing cash cow that they brushed over the mounting evidence that digital would take over.
By the time the tsunami hit, Kodak's fortress of film was about as useful as a chocolate hairdryer.
They filed for bankruptcy in 2012.
Like Blockbuster and Kodak, we often avoid realities that unsettle us.
Who hasn’t avoided stepping on the scales, testing their cholesterol levels, or checking their bank balance for fear of what the numbers might reveal?
If this sounds familiar, you've likely fallen prey to what behavioural economists and psychologists call the "ostrich effect."
Dan Galai and Orly Sade of the Hebrew University of Jerusalem coined this cognitive bias, describing our tendency to avoid or ignore negative information that, if acknowledged, could prompt us to take corrective action.
Much like an ostrich burying its head in the sand when faced with danger, we tend to hide from uncomfortable truths, fearing how this information might either affect us emotionally, cause disruption to our lives, or necessitate changes in our behaviour.
This phenomenon often emerges in our lives, from health to finances and even our professional capacity.
Consider health-related issues, where individuals might avoid getting tested for certain diseases due to the associated fear, stigma, or potential disruption of their daily routine.
In the dreaded area of personal finance, facing our bank balance can sometimes bring extreme anxiety, leading us to put off essential financial planning or budgeting.
This avoidance can perpetuate a cycle of financial stress and uncertainty, leading to even more significant problems.
So, how can we overcome this urge to bury our heads in the sand and instead, no matter how uncomfortable it may seem, actually embrace real life?
Well, here are five tips to do just that:
1. Awareness Is Key
The first step towards overcoming the ostrich effect is acknowledging its existence and understanding how it impacts your decision-making process. However, thinking about it isn’t sufficient. You need to write it down to allow your unconcious mind to acknowledge the problem and the consequences of ignoring it. With awareness, you’ll start to recognise when you are avoiding negative information and be able to take conscious steps to acknowledge it instead and address it.
2. Identify The Root Causes
Examine the reasons behind your aversion to certain information. Are you afraid of the emotional impact or how it might alter your lifestyle? Understanding your underlying fears is crucial if you want to move forward.
3. Define Your Goals
Write down your short-term and long-term goals. Whether it's achieving financial stability, maintaining good health, or excelling in your career, knowing what you're aiming for will motivate you to confront some of the truths you’ve felt uncomfortable admitting up to now.
4. Take Small Steps
Break down the big and overwhelming task of facing this negative information into small and manageable steps. These smaller steps should help you confront and overcome the barriers that the ostrich effect poses.
5. Focus On The Long-Term Benefits
Whether it's improved health, freedom from financial worries, or personal growth, remind yourself of the lasting impact that facing up to reality and taking corrective steps will bring. Keeping your end goal in mind will motivate you to keep at it.
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