Thinking...Not So Fast

Thinking, Fast and Slow

In his groundbreaking book, Thinking, Fast and Slow, psychologist Daniel Kahneman introduces two systems of the human mind. System 1 operates automatically and quickly, driven by instinct and emotion. System 2 is deliberative and logical, calculating and conscious.

While System 1 can lead us to make decisions based on inherent biases and heuristics, System 2 is where we engage in critical, objective thinking. The key question is, of course, if we spend so much time and effort trying to engage System 2 for key business decisions, why are we not doing the same for hiring?

Talgo: The System 2 of Hiring

Much like our minds default to System 1, traditional hiring processes often operate on auto-pilot as well, leading to subjective—and often biased—decisions. Here is where our methodology helps engage the 'System 2' of hiring.

It starts with our approach around building Targets: concrete Results Expected and crisp Competencies with clear, defined edges. This establishes a more logical and structured approach to the entire interviewing and hiring process—for both the data elicitation and data interpretation stages that come later. It also works to reduce noise—helping you and your teammates maintain consistency and accuracy.

Importantly, it moves hiring away from gut feelings—factors that are often proxies for bias—and towards evidence-based assessments of a candidate's ability to fulfill specific role requirements.

Interviewing as a System 2 Thinker

Kahneman illustrates how our instinctual System 1 thinking is laden with cognitive biases. In the hiring realm, the easiest example is hiring someone like yourself.

Our methodology is structured to minimize these biases at the source. By establishing structured interview guides with questions about past accomplishments and mistakes—delivered in a non-judgmental manner with high rapport—our approach significantly limits the subjective space in which biases operate. By having a clear roadmap of what initial questions you’ll ask you prevent “random walk” interviews. Those are the ones where you and a candidate just hit it off and have an idiosyncratic conversation that’s impossible to compare against other candidates (or to the role in question).

As a reminder, you will be doing your best to not judge the candidate during the interview. (You have plenty of time for judging when reviewing your notes.) Instead, you’ll be asking yourself one simple question: is this story we’re discussing relevant, or is it time to move on? This mindset will help you keep your “intuition on ice” and prevent you from pre-judging the candidate until you’ve gathered all of the relevant data.

Making System 2 Decisions

Kahneman’s System 2 is about slowing down and thinking things through, seeking evidence, and being willing to admit when you don’t know something. In his book, he often returns to the theme of accuracy—how our quick judgments can be systematically off-mark and how we can train ourselves to think more accurately. That is precisely our goal when it comes to hiring.

This is why you must ensure that you and your team make structured, data-driven decisions. Specifically: rate each of the Facets on the Target and back those ratings up with concrete, objective data (typically gathered from the interview process) before you reach a final judgment as a group.

Once you’ve scored each of the Facets and ensured that there is solid evidence behind the ratings, then you can attempt to consult any remaining gut feelings and render a holistic decision.

The average hiring process is successful (the person is succeeding in the role 1 year later) around 50% of the time. In other words it’s a coin flip. Following our methodology with well trained and calibrated interviewers can get you in the 80% range (professional executive assessors doing 4-5hr interviews can get to 90%).

Conclusion

That 30% delta can be worth enormous sums of time and money. It can alter the trajectory of your company. That’s why it pays to do the hard System 2 work. And that’s what we’re here to help you do.