Erin White of the Wall Street Journal interviews Sydney Finkelstein on Why Good Managers Make Bad Decisions. Here's a summary of some of the points made in this article that is worthwhile to read:
- Leaders tend to rely on past experience that seems useful, but is actually sometimes dangerous [to the current situation].
- Most people don't realize self-interest operates at a subconscious level.
- Leaders make prejudgments about their businesses that sometimes turn out to be wrong.
- People need to recognize that we are biased in every single situation. There's no such thing as objectivity.