Sneak Peak: Ever felt confident in your analysis but faced disappointment when you presented your wonderful work? In this article, you will uncover the secrets behind the Ladder of Inference — a tool to navigate unconscious biases. From selecting data to making conclusions, learn to climb each rung with precision.

How to Breaking Down Biases by Navigating the Ladder of Inference in Analysis

Have you ever worked on a visual report or dashboard that your team felt confident about, only to be told by executives that you missed the mark during the presentation? Did you feel like you were climbing towards success, but ended up falling short of expectations? It's possible that you and your team may have misunderstood what was being asked by senior executives, assuming that they were asking for the same thing as your typical team leaders. If you've ever felt stuck and desperate to avoid embarrassment in front of executives again, it might be helpful to learn about what went wrong. In the world of analysis, there's a ladder that you may not have realised you were climbing - the Ladder of Inference.

Key Takeaway

The Ladder of Inference is more than just a metaphor—it's a roadmap for navigating the complexities of decision-making. By identifying where you are on the ladder, working your way back down to challenge your reasoning, and climbing again with a fresh perspective, we can avoid the pitfalls of unconscious bias and make more informed choices. So, whether you’re crafting a dashboard for executives or making recommendations to your team leaders, remember to pause, reflect, and ensure you’re on the right path.

What is the Ladder of Inference?

This is the analogy that requires us to think about a typical ladder we climb to fix a light bulb or roof. Imagine you’re at the bottom of this ladder, but instead of your typical handyman/woman tools, you are surrounded by facts and reality. As you start climbing, you selectively experience these facts based on your beliefs and past experiences. A person walks to your desk and asks you for some data or report for example. You interpret what these facts mean, apply your assumptions (sometimes without even realising it), draw conclusions, develop beliefs, and finally, take action. Your action might be to do what you are accustomed to doing. Why? Because it has worked many times before and you are now comfortable with your process.

The Pitfalls of the Ladder

Now, here’s where it gets tricky. If we’re not careful, our beliefs can influence how we select facts, leading us to ignore crucial information and jump to conclusions. The obvious thing could have been that the ask was from senior management and not from our typical customers which are team leaders. Before you know it, you’re making decisions based on incomplete or skewed reasoning. We never took a step back and understood why an executive would want to see an operational report sent to team leaders. We thus became a problem by showing irrelevant output thus delaying decision making.

Why Should Analysts Care?

Analysts make informed decisions based on data and logic. However, even the best analysts can fall victim to the Ladder of Inference. Consider a team of analysts who are tasked with creating a dashboard for a client using PowerBI or Tableau. They gather what they believe are the client’s needs, select the data they think is relevant, interpret it based on their assumptions, and present their conclusions. But when they unveil the dashboard, the client’s reaction is not what they expected. It turns out, they missed the mark completely. How did this happen? Is this the same as what we are experiencing in our own team where we are making one report for everyone, executives and team leaders alike?

Using the Ladder of Inference to Navigate Bias

Here’s where the Ladder of Inference comes in handy. It’s not a step-by-step guide for making decisions, but rather a tool to help you check your thinking process and reject unconscious biases.

• Identify Your Position on the Ladder: Take a moment to reflect on where you are on the ladder. Are you focusing on facts or already concluding? Ask yourself:

  • What are the facts?

  • What evidence am I considering?

  • What past experiences or beliefs am I bringing into this?

  • What assumptions have I made?

  • What conclusions have I drawn?

  • What beliefs are driving my actions?

The following diagram is a great illustration we could use to go up the ladder starting from what data we have, executive asking for information, all the way to taking action.

• Work Your Way Back Down: I know that you won’t always start at the lowest level. At times you might be asked to interpret something. In this case, try and identify where you are on the ladder. Once you’ve identified your position, work your way back down the ladder. Ask yourself why you’ve drawn those conclusions, what beliefs are driving your actions, and whether your assumptions are realistic. This helps us gain clarity and challenge our own reasoning, especially given where we might be on the ladder.

• Climb Again with a Fresh Perspective: Since we are creatures of habit, nice things are nicer when repeated. Now that you’ve revisited your reasoning, climb the ladder again with a fresh perspective. Slow down, question your assumptions, and consider alternative viewpoints. Imagine explaining your reasoning to a colleague to ensure it’s sound.

When to Use the Ladder of Inference

Whether we’re interviewing candidates to join your analyst team, making recommendations (Exco or team leader), or structuring a new project, the Ladder of Inference can help us and your team make more informed decisions. By exploring different perspectives and avoiding jumping to conclusions, you can reach better outcomes.

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