Decision Making
August 27, 2025
5
Min
Thinking Traps: How to Spot and Escape Faulty Reasoning
Creative Thinking
|
Thinking traps are patterns of faulty reasoning that sneak into high-stakes moments, dressed up as logic or urgency. The more experienced we get, the more dangerous they become—because they often hide behind speed, confidence, or past success.
Let’s explore how to spot them, escape them, and build a culture that makes clear thinking a collective habit - not a heroic exception.
In a 2023 PwC survey, 66% of executives admitted to making decisions based on instinct or “gut feel” at least once a week. Yet those same leaders also acknowledged a growing regret around missed signals, biased calls, and groupthink.
The implications are real:
As complexity and information velocity increase, so does our risk of relying on mental shortcuts. Our job as leaders isn’t to eliminate instinct - but to temper it with better checks.
We use the acronym SNARE to capture the most common categories of thinking traps in executive settings. Each one can distort judgment in its own distinctive way.
This is the comfort trap. When teams default to “what we’ve always done,” they avoid friction—but miss opportunity.
Example: A retail firm continues investing in brick-and-mortar because “that’s where our brand lives,” despite 3 quarters of underperformance in physical sales.
Ask yourself: If we were starting from scratch today, would we choose the same path?
Micro-action: Run a "zero legacy" brainstorm next week—invite your team to redesign your core offering as if none of your current structures existed.
We love a good story - sometimes too much. When anecdote outweighs evidence, we overvalue vivid events and undervalue base rates.
Example: One customer success story becomes the basis for product strategy, sidelining data from hundreds of less-engaged users.
Ask yourself: Are we building strategy from the strongest signals or the stickiest stories?
Micro-action: Before your next decision, require one data point that disconfirms your preferred narrative.
The first number, estimate, or idea we hear becomes our reference point - even when it’s irrelevant.
Example: A senior leader mentions a 20% target in passing. Months later, the team treats it as gospel, even though the market can’t support it.
Ask yourself: What assumption are we treating as fixed that may have just been a starting point?
Micro-action: In budget or forecast meetings, assign one person the role of “reframer”—tasked with proposing three alternative anchors before settling.
We tend to overreact to near-term, visible risks and underplay long-term, systemic ones.
Example: Cutting employee learning budgets to manage a quarterly dip, only to face capability gaps the following year.
Ask yourself: Are we optimising for what’s loudest or what’s longest-lasting?
Micro-action: In your next risk register, include a “silent risks” section—issues that don’t hurt yet but could undermine you over time.
Also known as “sunk cost fallacy.” The more we’ve invested, the harder it is to stop—even when logic says we should.
Example: A digital transformation drags on for 18 months with diminishing returns, but no one wants to be “the one who pulled the plug.”
Ask yourself: If this were someone else’s project, what advice would we give them?
Micro-action: Institute “no-fault exits - a monthly space to re-evaluate projects with no blame for stopping.
Escaping thinking traps isn’t about having one hyper-rational person in the room. It’s about creating team-level guardrails. Here’s how to begin:
Pro Tip: Use AI assistants to summarise meeting arguments into pro/con trees. This helps surface hidden anchors or bias patterns.
Even with awareness, we’ve seen seasoned leaders fall into refined versions of the same traps. Here are four subtle ones to watch for:
Prompt 1: What’s one major decision I made in the past 6 months that might have been shaped by a thinking trap?
Prompt 2: How does my team signal that it’s safe—and expected—to question dominant logic?
Spend 5 minutes journalling on one of these. Then pick a colleague and compare notes.
When you routinely escape thinking traps:
More importantly, you model what clear thinking under pressure looks like. That influence cascades.
It’s not about slowing down—it’s about thinking cleanly when it matters most.
Choose one upcoming decision—big or small—and do a trap pre-mortem:
Ask it aloud. Then step back and listen.
Team SHIFT
Have you ever left a strategy meeting with full consensus - only to realise a week later that everyone had blindly backed a flawed assumption? Or approved a project because “we’ve already invested so much” despite data screaming otherwise? These aren’t flukes. They’re thinking traps. And for leaders, they’re costly.
Thinking traps are patterns of faulty reasoning that sneak into high-stakes moments, dressed up as logic or urgency. The more experienced we get, the more dangerous they become—because they often hide behind speed, confidence, or past success.
Let’s explore how to spot them, escape them, and build a culture that makes clear thinking a collective habit - not a heroic exception.
In a 2023 PwC survey, 66% of executives admitted to making decisions based on instinct or “gut feel” at least once a week. Yet those same leaders also acknowledged a growing regret around missed signals, biased calls, and groupthink.
The implications are real:
As complexity and information velocity increase, so does our risk of relying on mental shortcuts. Our job as leaders isn’t to eliminate instinct - but to temper it with better checks.
We use the acronym SNARE to capture the most common categories of thinking traps in executive settings. Each one can distort judgment in its own distinctive way.
This is the comfort trap. When teams default to “what we’ve always done,” they avoid friction—but miss opportunity.
Example: A retail firm continues investing in brick-and-mortar because “that’s where our brand lives,” despite 3 quarters of underperformance in physical sales.
Ask yourself: If we were starting from scratch today, would we choose the same path?
Micro-action: Run a "zero legacy" brainstorm next week—invite your team to redesign your core offering as if none of your current structures existed.
We love a good story - sometimes too much. When anecdote outweighs evidence, we overvalue vivid events and undervalue base rates.
Example: One customer success story becomes the basis for product strategy, sidelining data from hundreds of less-engaged users.
Ask yourself: Are we building strategy from the strongest signals or the stickiest stories?
Micro-action: Before your next decision, require one data point that disconfirms your preferred narrative.
The first number, estimate, or idea we hear becomes our reference point - even when it’s irrelevant.
Example: A senior leader mentions a 20% target in passing. Months later, the team treats it as gospel, even though the market can’t support it.
Ask yourself: What assumption are we treating as fixed that may have just been a starting point?
Micro-action: In budget or forecast meetings, assign one person the role of “reframer”—tasked with proposing three alternative anchors before settling.
We tend to overreact to near-term, visible risks and underplay long-term, systemic ones.
Example: Cutting employee learning budgets to manage a quarterly dip, only to face capability gaps the following year.
Ask yourself: Are we optimising for what’s loudest or what’s longest-lasting?
Micro-action: In your next risk register, include a “silent risks” section—issues that don’t hurt yet but could undermine you over time.
Also known as “sunk cost fallacy.” The more we’ve invested, the harder it is to stop—even when logic says we should.
Example: A digital transformation drags on for 18 months with diminishing returns, but no one wants to be “the one who pulled the plug.”
Ask yourself: If this were someone else’s project, what advice would we give them?
Micro-action: Institute “no-fault exits - a monthly space to re-evaluate projects with no blame for stopping.
Escaping thinking traps isn’t about having one hyper-rational person in the room. It’s about creating team-level guardrails. Here’s how to begin:
Pro Tip: Use AI assistants to summarise meeting arguments into pro/con trees. This helps surface hidden anchors or bias patterns.
Even with awareness, we’ve seen seasoned leaders fall into refined versions of the same traps. Here are four subtle ones to watch for:
Prompt 1: What’s one major decision I made in the past 6 months that might have been shaped by a thinking trap?
Prompt 2: How does my team signal that it’s safe—and expected—to question dominant logic?
Spend 5 minutes journalling on one of these. Then pick a colleague and compare notes.
When you routinely escape thinking traps:
More importantly, you model what clear thinking under pressure looks like. That influence cascades.
It’s not about slowing down—it’s about thinking cleanly when it matters most.
Choose one upcoming decision—big or small—and do a trap pre-mortem:
Ask it aloud. Then step back and listen.
Team SHIFT
Have you ever left a strategy meeting with full consensus - only to realise a week later that everyone had blindly backed a flawed assumption? Or approved a project because “we’ve already invested so much” despite data screaming otherwise? These aren’t flukes. They’re thinking traps. And for leaders, they’re costly.
Thinking traps are patterns of faulty reasoning that sneak into high-stakes moments, dressed up as logic or urgency. The more experienced we get, the more dangerous they become—because they often hide behind speed, confidence, or past success.
Let’s explore how to spot them, escape them, and build a culture that makes clear thinking a collective habit - not a heroic exception.
In a 2023 PwC survey, 66% of executives admitted to making decisions based on instinct or “gut feel” at least once a week. Yet those same leaders also acknowledged a growing regret around missed signals, biased calls, and groupthink.
The implications are real:
As complexity and information velocity increase, so does our risk of relying on mental shortcuts. Our job as leaders isn’t to eliminate instinct - but to temper it with better checks.
We use the acronym SNARE to capture the most common categories of thinking traps in executive settings. Each one can distort judgment in its own distinctive way.
This is the comfort trap. When teams default to “what we’ve always done,” they avoid friction—but miss opportunity.
Example: A retail firm continues investing in brick-and-mortar because “that’s where our brand lives,” despite 3 quarters of underperformance in physical sales.
Ask yourself: If we were starting from scratch today, would we choose the same path?
Micro-action: Run a "zero legacy" brainstorm next week—invite your team to redesign your core offering as if none of your current structures existed.
We love a good story - sometimes too much. When anecdote outweighs evidence, we overvalue vivid events and undervalue base rates.
Example: One customer success story becomes the basis for product strategy, sidelining data from hundreds of less-engaged users.
Ask yourself: Are we building strategy from the strongest signals or the stickiest stories?
Micro-action: Before your next decision, require one data point that disconfirms your preferred narrative.
The first number, estimate, or idea we hear becomes our reference point - even when it’s irrelevant.
Example: A senior leader mentions a 20% target in passing. Months later, the team treats it as gospel, even though the market can’t support it.
Ask yourself: What assumption are we treating as fixed that may have just been a starting point?
Micro-action: In budget or forecast meetings, assign one person the role of “reframer”—tasked with proposing three alternative anchors before settling.
We tend to overreact to near-term, visible risks and underplay long-term, systemic ones.
Example: Cutting employee learning budgets to manage a quarterly dip, only to face capability gaps the following year.
Ask yourself: Are we optimising for what’s loudest or what’s longest-lasting?
Micro-action: In your next risk register, include a “silent risks” section—issues that don’t hurt yet but could undermine you over time.
Also known as “sunk cost fallacy.” The more we’ve invested, the harder it is to stop—even when logic says we should.
Example: A digital transformation drags on for 18 months with diminishing returns, but no one wants to be “the one who pulled the plug.”
Ask yourself: If this were someone else’s project, what advice would we give them?
Micro-action: Institute “no-fault exits - a monthly space to re-evaluate projects with no blame for stopping.
Escaping thinking traps isn’t about having one hyper-rational person in the room. It’s about creating team-level guardrails. Here’s how to begin:
Pro Tip: Use AI assistants to summarise meeting arguments into pro/con trees. This helps surface hidden anchors or bias patterns.
Even with awareness, we’ve seen seasoned leaders fall into refined versions of the same traps. Here are four subtle ones to watch for:
Prompt 1: What’s one major decision I made in the past 6 months that might have been shaped by a thinking trap?
Prompt 2: How does my team signal that it’s safe—and expected—to question dominant logic?
Spend 5 minutes journalling on one of these. Then pick a colleague and compare notes.
When you routinely escape thinking traps:
More importantly, you model what clear thinking under pressure looks like. That influence cascades.
It’s not about slowing down—it’s about thinking cleanly when it matters most.
Choose one upcoming decision—big or small—and do a trap pre-mortem:
Ask it aloud. Then step back and listen.
Team SHIFT