July 31, 2025 - Blog Post

Biases and Their Impact on Board Decisions

As a condominium board director, you and the other board members are going to make a number of decisions that will affect your corporation.  In deliberating on your decisions, it is important to ensure that you are aware of and guard against several types of cognitive biases that can unduly influence your decisions. These biases often affect us unconsciously. They can affect fairness, transparency, and the best interests of the corporation. There are hundreds of biases (see here for more info) but here are some key ones to watch for:

1. Personal Bias

• Definition: Letting personal preferences or relationships influence decisions.
• Example: Supporting a proposal because it benefits your unit or a friend, even if it's not in the best interest of the community.
• Mitigation: Declare conflicts of interest and recuse yourself when necessary.

2. Confirmation Bias

• Definition: Focusing on information that supports your existing beliefs and ignoring contrary evidence.
• Example: Dismissing engineering reports because they contradict your view that no major repairs are needed.
• Mitigation: Deliberately seek diverse viewpoints and ask for independent expert input when needed.

3. Status Quo Bias

• Definition: Preferring things to stay the same, even when change is needed.
• Example: Avoiding bylaw updates or infrastructure upgrades because "it's always been this way."
• Mitigation: Evaluate decisions based on current needs and future sustainability, not just tradition.

4. Authority Bias

• Definition: Giving undue weight to opinions of perceived authorities or dominant voices on the board.
• Example: Always agreeing with a long-serving board member without critical evaluation.
• Mitigation: Ensure all voices are heard and decisions are backed by evidence, not just influence.

5. Groupthink

• Definition: The desire for harmony or conformity within the board overrides realistic appraisal of alternatives.
• Example: Suppressing disagreement to avoid conflict during meetings.
• Mitigation: Encourage open dialogue, dissenting opinions, and critical thinking in discussions.

6. Recency Bias

• Definition: Giving more weight to recent events over long-term patterns.
• Example: Making decisions based on one recent complaint rather than considering overall trends.
• Mitigation: Review past data, reports, and multiple inputs before deciding.

7. Sunk Cost Fallacy

• Definition: Continuing a course of action because of past investments, even when it no longer makes sense.
• Example: Refusing to replace a contractor who is underperforming because you’ve already spent time and money on them.
• Mitigation: Focus on future outcomes, not past expenses.

8. Availability Heuristic

• Definition: Relying on information that is most readily available or memorable rather than the most accurate.
• Example: Making decisions based on one vocal owner’s complaint rather than data from multiple sources.
• Mitigation: Base decisions on documented evidence and patterns, not anecdotal feedback.

Final Note:

Being a responsible board member means practicing objectivity, seeking transparency, and making decisions based on facts and fairness, not personal gain or influence.  Bias awareness is a cornerstone of good governance and helps build trust in the board's leadership.  Don’t be afraid to talk about potential biases in your board meetings.  Be open and honest with each other.  I have included a checklist to help you and your other board directors ensure your decisions are made objectively and fairly.

Bias Checklist

✅ 1. Personal Bias Check

• Am I personally affected by this decision?
• Do I have a close relationship with anyone who stands to benefit or lose?
• Have I disclosed any conflicts of interest?

If yes, consider recusing yourself or seeking legal/ethical guidance.

✅ 2. Confirmation Bias Check

• Have I considered facts or opinions that go against my view?
• Am I open to changing my mind if new information arises?

If no, actively seek out alternative perspectives or professional advice.

✅ 3. Status Quo Bias Check

• Are we resisting change simply because “this is how we’ve always done it”?
• Have we evaluated whether change could bring improvement?

If no, consider whether sticking with the current approach is actually the best decision.

✅ 4. Authority & Groupthink Check

• Are we agreeing because someone influential supports it—or because it’s truly the best option?
• Have quieter voices on the board been invited to speak?

If no, encourage independent thinking and ensure balanced participation.

✅ 5. Recency & Availability Bias Check

• Are we giving too much weight to a recent or emotional issue?
• Do we have long-term data or a pattern to guide this decision?

If no, review historical reports, trends, or logs.

✅ 6. Sunk Cost Fallacy Check

• Are we continuing down a path just because we’ve already invested time or money?
• Is this still the best course of action moving forward?

If no, consider cutting losses to focus on better options.

✅ 7. Transparency & Documentation

• Are the reasons for this decision clear, documented, and explainable to owners?
• Could I defend this choice in a general meeting or audit?

If no, clarify reasoning and ensure records are kept.

✅ 8. Owner Impact Check

• Does this decision treat all owners fairly?
• Could it set a precedent we may regret later?

If no, pause and re-evaluate.

Pro Tip:

Keep this checklist handy in board packages or include it on the agenda template as a reminder before final votes.

We all have biases. They are a natural part of our lives but if we can be honest with ourselves and others about biases we can make better informed decisions, which is what boards are all about, isn’t it?

Michael Kennedy
CCI Nova Scotia