When making decisions, we all rely too heavily on intuition and use flawed reasoning. But it's possible to fight these pernicious sources of bias by learning to spot them and using the techniques presented in this article, gleaned from the latest research. They'll open up your thinking about possible outcomes, objectives, and options and lead to better choices. To broaden your perspective on the future, the authors suggest, you can use proven tactics for improving the accuracy of estimates and preparing for contingencies. You'll think more expansively about your objectives if you come up with many possibilities before deciding what's most important, get input from others, and then carefully examine one goal at a time. And you'll generate better options if you identify several and evaluate them side by side. Don't settle for the first one that's acceptable; imagine that you can't pursue it, and you might find an even stronger alternative. Strong emotional attachments or investments make cognitive biases even harder to overcome. When that's the case, use checklists and algorithms to stay focused on the right things, and set "trip wires" to trigger planned responses at key points in the decision-making process.

An integrated sequence of three cases on the financing of a technical workstation manufacturer. This case focuses on Sun's competitive strategy which requires an inordinately high rate of growth (over 20% per quarter) and commensurate amounts of working capital. Students are asked to evaluate the importance of access to capital for the company and decide whether Sun should rely on the public equity markets or seek funding from a corporate partner.

Describes a specific opportunity to seek financing from AT&T as part of a proposed technological joint venture. Students must consider the price paid and control rights attached to a large block of shares and outline a negotiating position for each side.

Outlines the financing agreement reached by Sun and AT&T in early 1988.