Algorithm
The Basic Idea
In a world increasingly dominated by technology, we hear the word Algorithm everywhere. What actually is an algorithm? In simple terms, an algorithm is essentially a sequence of concrete instructions that tell an operator what to do. Think of a flow chart that moves through steps of YES and NO guiding someone to a specific outcome.
A common analogy used to explain an algorithm is that of a recipe. Imagine a typical recipe for chocolate chip cookies. The recipe would include raw ingredients that go through a sequence of commands in order to create a final product. In this case, the “operator” is the baker, who will read the recipe, execute the instructions, and maybe even update and refine the recipe, depending on how the cookies turn out.
We can apply this conceptual logic to a computer program, where you substitute the baker for a computer. The program will also read, execute, and refine the instructions, taking raw ingredients, or inputs, through a sequence of commands to create a final outcome or solve a problem. This process is occurring all around us. Your journey to get to this page to read this piece was aided by a series of algorithms. Perhaps you googled “algorithm” or someone shared this link on social media; although it seems like you may have found yourself here on your own accord, there’s a hidden layer of algorithmic computer code that made for a seamless process.
We have already turned our world over to machine learning and algorithms. The question now is, how to better understand and manage what we have done?
- Barry Chudakov, founder and principal of Sertain Research
About the Authors
Dan Pilat
Dan is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. Dan has a background in organizational decision making, with a BComm in Decision & Information Systems from McGill University. He has worked on enterprise-level behavioral architecture at TD Securities and BMO Capital Markets, where he advised management on the implementation of systems processing billions of dollars per week. Driven by an appetite for the latest in technology, Dan created a course on business intelligence and lectured at McGill University, and has applied behavioral science to topics such as augmented and virtual reality.
Dr. Sekoul Krastev
Dr. Sekoul Krastev is a decision scientist and Co-Founder of The Decision Lab, one of the world's leading behavioral science consultancies. His team works with large organizations—Fortune 500 companies, governments, foundations and supernationals—to apply behavioral science and decision theory for social good. He holds a PhD in neuroscience from McGill University and is currently a visiting scholar at NYU. His work has been featured in academic journals as well as in The New York Times, Forbes, and Bloomberg. He is also the author of Intention (Wiley, 2024), a bestselling book on the science of human agency. Before founding The Decision Lab, he worked at the Boston Consulting Group and Google.
