Why Good Leaders Make Bad Decisions

Date:

 13/10/2014

CEO:

 Shardul Singh

COHORT NAME & Group No:

 MGB Group 10

Group Members:

 Palash Kulshrestha, Pooja Shah, Pooja Murthy, Ram Vignesh Suthanthira Pandian

Key points discussed: today the team had a discussion on the article “ why Good leaders make bad decisions”

The team first discussed what all pointers lead to wrong decision making , which are mentioned  as below:

1. Misleading Experience: When a leader has an experience that worked out in the past but the situation is now quite different. The prior experience can`t be questioned, however , it is of no use in current scenario
2.  Wrong prejudgement: most of the leaders make prejudgements regardless of the facts that come , they tend to discount or ignore them in wake of making their judgement true
3. Self-interest: leaders think that they are working for an objective, however, they work towards their self-interest and it happens sub consciously without even they recognising it
4. Inappropriate attachments: it refers to strong feelings to a group or a place. it often happens that leaders who are attached to a business from start feel tough to make hard decisions

The team discussed methods for good decision making, which are listed as below :

1. New experiences:  Exposing leaders to new experiences apart from what they already have make them better adapt to present situation and help in minimizing existing biases in their minds
2. Further debate and challenge:  A carefully chosen group of people to debate on important decision is important way to reduce risk if individual biases and gives new perspectives to the decision which is to be taken by the leader.
3. Governance: Stronger governance leads to proper see-through of the decision being made and allows discussion on the decision at various levels which ensures no distorted decision being flown around.
4.  Monitoring: leaders should be clarified on what will be the success measures that will be applied, timely and proper audit of the decisions made and linking outcomes to the compensation are some of the elements that will be helpful in making good decision.

The team also agreed to the fact that there are no set rules to be followed in order to achieve good decisions, however, by following the above mentioned pointers there are chances of less bad decisions being made,