Bad Decision-Making by Leaders

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.