Why Sticking To Your Strategy Might Be A Bad Idea
Summary
Despite his compelling research, leaders rarely give strategic risk (including consumer demand, competitive threats, and M&A) the attention it deserves. The psychological dynamics at play especially the need to avoid discomfort, lead to over-confidence, a common but invisible decision trap. This process begins best by articulating your assumptions, then asking “Why do we believe that?” This is an actual exercise for leaders to engage in and write down their answers. Leadership teams who are willing to hold themselves accountable for their decisions will recognize more errors but will learn what caused them and build better decision-making skills. Good leaders accept that regardless of their intellect, experience or the reassurance of those around them, decisions involve very human processes to which they are not immune.