Organizations have choices when it comes to growth. However, not all options are equal in terms of their ability to confront reality. Leadership biases can cause companies to misread environmental signals, misdiagnose industry conditions, overestimate organizational strengths and accept the status-quo of competitive approaches to the marketplace. These and other biases all have consequences.
To avoid negative effects of leadership bias, when it comes to decision-making, leaders often use two approaches to avoid problems. First, they seek out other points of view, which confirm or deny propositions. Then, as a second approach, they seek to define the downside risk. In both cases, appropriate protocols apply and stakeholders and/or independent experts may play a significant role.
Confronting reality requires a clear understanding of assumptions, awareness that no decision comes without side effects and that unintended consequences always appear. Caution is your best protection, especially, if your company is doing well.
I hope that you found this post useful. SBTDC’s Strategy & Growth Services exists to help CEOs of mid-size business make better decisions. Obviously, we would like to engage. Here is how to contact me — email@example.com or (919)-600-6097.