Imagine a cellist, taking on different roles depending on whether he/she is playing with a quartet, a chamber orchestra, or a full orchestra. Today’s leaders are not dissimilar; they come together in different arrangements to undertake most of an organization’s decision-making. These groups of leaders, or ‘ensembles’, debate changes in their company’s direction, or draw […]
Read More… from Leadership Ensembles: 4 Blueprints for Senior Decision-Making
Sunk cost bias has been blamed for everything from disastrous military campaigns to over-budget public works and is widely acknowledged as a serious obstacle to effective decision-making. Defined as the “tendency to continue an endeavour once an investment in money, effort or time has been made”, it leads people to “throw good money after bad” […]
Emotional intelligence — the awareness and understanding of emotions — has a variety of workplace applications and benefits. Leaders who perceive and relate to the emotions of those they direct are going to be seen as more caring and understanding leaders. Leaders who can better manage their own emotions will also develop more positive relationships […]
Most leaders now recognize (at least theoretically if not always in practice) the ineffectiveness of the old school top-down, command-and-control leadership style. The knowledge worker of the information age is not going to be satisfied with simply obeying orders from above. The best managers avoid micromanaging their employees, giving them instead the freedom to make […]
Read More… from When Allowing Decision Latitude Can Backfire
In making decisions, people are susceptible to the influence of those in their ‘in-group’, who commonly include others of the same age, sex, ethnicity or religion, as well as friends, family members, colleagues and classmates. This is a long-observed and commonly acknowledged phenomenon, often explained in terms of evolutionary biology. (By conforming to the common […]
Read More… from Social Influences on Decision-Making: Neuroscience Insights
What can statistics and data-based analyses reveal to us about meetings that are effective (leading to consensus and decision-making) and efficient (goals achieved in optimal time)? Because the science of meetings is still in its early stages, the raw data for study is still being accumulated. However, two researchers from MIT’s Sloan School of Management, […]
Professors Ilyana Kuziemko of Columbia Business School and Ryan Buell and Michael Norton of Harvard Business School, working with doctoral candidate Taly Reich of the Stanford Graduate School of Business, collaborated on a series of experiments to explore how far people would go to avoid being in last place. One experiment was designed to measure […]
Recently, faculty from Kenan-Flagler Business School and Robert H. Smith School of Business looked at the relationship between egotistic (or narcissistic) CEOs and firm performance by measuring ego by the size of signatures on yearly SEC filings. They looked at about 400 CEO signatures from the annual SEC filings from companies in the S&P 500, […]
Read More… from Narcissistic CEOs – A Signature for Poor Performance
One way that organizations ensure that they accomplish certain objectives is through management control systems. These systems reward and promote employees according to certain criteria, in order to achieve goal congruence. According to the authors, very little research into the design of control systems that lead to goal congruence takes into account the role that […]
Read More… from Better and Fairer Management Control Systems
Rational and objective thinking is not the only influence on the decision-making process. Recognising this, the authors set out to research why good leaders often make flawed decisions, at times dragging their organizations down. According to them, finance managers play an important role, being “savvier” at managing rational thinking and the inevitable personal biases of […]
Read More… from Avoiding Flawed Decisions: A Finance Manager’s Role
