Many cognitive biases impair our ability to evaluate information objectively, form sound judgments, and make effective decisions. These biases are particularly problematic in business contexts! This is what we have seen mainly in turnaround projects.
Terus has been advising distressed companies and we have witnessed leadership divergences under stressed conditions, and three of them have drawn attention:
1. Decisions based only on subjective perceptions: Leaders who anchor their decisions in initial subjective or preliminary perceptions, and are unable to adjust them sufficiently with good fundamentals to guide teams and give guidance of expected results;
2. Controllability bias: leaders who believe they can control outcomes more than is actually possible, and misjudge the risks of their ongoing actions;
3. Risk aversion: leaders who feel losses more intensely than gains of the same proportion, which makes them more risk-averse than rational analysis would recommend.
Here at Terus we advise entrepreneurs and executives in distressed companies in our turnaround projects, and intrinsically we enable leaders to live in an environment of extreme difficulty for better vision, understanding, fundamentals and decision-making.
When necessary, we call on partners who are experts in corporate culture and leadership to promote excellent and engaged teams even in difficult scenarios, and lead them to rational, correct and timely decisions to generate cash and profit!
If you are looking to strengthen your organization's competitive advantage and achieve exceptional results, contact Terus Consulting and let's talk about building a solid leadership culture that will drive your company's continued success.
Commentaires