By now it’s generally accepted that if senior leaders suffer from cognitive biases their decisions can severely undermine company performance. Yet, leaders are not the only members of organizations that exercise poor judgment: Non-leaders are sometimes irrational too. Bearing this in mind, it is imperative that strategy-setters make explicit allowance for just how cognitively fragile their employees might be – or else they risk not fully understanding why their “perfectly rational” strategies don’t work.
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HBR Learning
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Leading People. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
What you need to know about being in charge.