When You Know You Are Making a Bad Decision

In my experience as an executive coach and advisor, I have seen a lot of bad decisions made by very good leaders. All great leaders make regrettable decisions and mistakes – we’re only human, and growth only comes with learning.  When Sam Walton, the founder of Walmart, was asked by a reporter, “How did you become so successful?” Walton answered, “I’ve made a lot of good decisions.” When he was then asked how he learned to make good decisions, Walton replied, “By making a lot of bad decisions.”  

Decisions, which can lead to acts of genius, but also some pretty impressive mistakes, are judgments formed in our brain. Decisions are the product of choices, and choices decide what kind of leader you are. Every leader makes mistakes, but how you handle the aftermath of a mistake is critical. Great leaders ensure that poor choices don’t compound their mistakes, but are tools used to learn from their mistakes, used to develop actions to handle poor situations differently in the future. 

So, here’s the million-dollar question – Why do some leaders make more mistakes and implement more bad decisions than others? 

Make the easy decision

When coaching a difficult team member, sitting down and advising a difficult report would be the harder decision. We all know difficult people tend to be difficult to give feedback to. Holding team members accountable takes more of the leader’s time and can stir up conflict that the leader may or may not be willing to deal with. Therefore, not making any of these difficult decisions and promoting or moving a team member is a lot easier than holding them accountable.

Ego or Self-interest

Far too many amateur leaders make decisions that cater to their self-interest;  when the leader decides to change an organizational structure based on whom he likes or doesn’t like, rather than what structure will be in the best interest of the organization or department, then they’ve made a bad decision based purely on their personal agenda. Ego and self-interest are often the reason leaders are unwilling to admit that they made a poor decision or a mistake.  Sometimes, managers even know that they’re making a bad decision, but their ego will not let them admit their mistake, spiraling into an unhealthy work environment for everyone. 

Arrogance

Some leaders are convinced they are always right, even smack in the face of conflicting information.  When leaders fully believe they are correct in their decisions, they’re less willing to listen to and incorporate other people’s expertise.

In 2013, Lululemon’s founder, Chip Wilson,  stepped down as chairman after deciding to defend his company’s see-through yoga pants by stating that the pants were not the problem, but “Quite frankly, some women’s bodies just actually don’t work for it.” 

Blind loyalty

When leaders allow blind loyalty to affect their decision-making process, bad decisions are often the result. For instance, managers guided by blind loyalty may choose to ignore the deficiencies or inadequacies of one of their team members.  Even when other team members point out the individual’s lack of accountability, the leader fails to take action and correct the team member’s performance problems, compounding problems and destroying transparency within the team. 

Power

Researchers have concluded that people who accumulate power can develop unwarranted confidence in their own abilities.  This is especially true when managers surround themselves with “yes” people; those who have built a reputation for agreeing with any decision the leader recommends. 

Past experience

One of the greatest attributes a leader can bring to a team or organization is their experience – experiences that have yielded both positive and negative results are tremendously valuable in recreating paths to success.  If the environment, situation or information changes, however, then past experience can hinder the decision-making process. 

J. Paul Getty said it best, “In times of rapid change, experience could be your worst enemy.”

While leaders are people, and people aren’t perfect, if you’ve made mistakes like any of the ones above before, it’s not the end – you can learn to change your behavior and become a better version of a leader. Listen to your instincts – if your gut instinct is reacting to a situation, listen to it. Use the examples listed above to help you build greater awareness of your decision-making style. With greater awareness, you can approach difficulties with confidence and poise – things every great leader should possess.