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When senior executives make poor management decisions, those choices reverberate throughout the entire organization causing adverse consequences.

Effects and impact of poor choices can range from the absence of clear focus and misunderstanding of competitive advantage to slow revenue growth, lack of innovation, operational inefficiency, poor risk management and/or weak leadership capability.

Bad decisions can also lead to mistrust and lack of confidence in executive leadership. Our exposure to the management practices of senior executives has led us to isolate four biases that frequently infiltrate decision-making:

  1. Transactional Decision Bias
  2. Entrenched Thinking Bias
  3. Unilateral Decision-Making Bias
  4. Negative Appraisal Bias

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