Why Leaders Sometimes Make Poor Decisions
Introduction
Even the smartest, most experienced leaders can make decisions that backfire. It seems like those at the top would always get it right, but decision-making isn’t just about having knowledge or a long track record. There are hidden challenges that even the most respected leaders face, many of which fly under the radar until it’s too late.
Understanding why good leaders make bad decisions helps teams avoid unnecessary setbacks and missed goals. It’s not about pointing fingers or assigning blame. It’s about staying curious and learning how human factors like bias, stress, and limited perspectives come into play. When leaders understand what works against them, they’re better prepared to make clearer, more effective choices.
Recognizing Cognitive Biases
One of the biggest reasons leaders get tripped up is because of cognitive biases. These are mental shortcuts our brains use to process information faster, though they sometimes lead us down the wrong path. Everyone has them, and they often show up without warning. For leaders, this can mean making choices that feel right but are built on incomplete or distorted logic.
Here are a few common cognitive biases that affect leadership decisions:
- Confirmation bias: Focusing only on information that supports what they already believe while ignoring the rest.
- Overconfidence bias: Believing too strongly in their own judgment, causing them to act without seeking input or verifying facts.
- Anchoring bias: Giving too much weight to the first piece of information they hear, even if it’s no longer relevant.
Take confirmation bias, for example. A leader might support a new project just because a similar one succeeded in the past. If they dismiss feedback or warning signs to stay in line with their belief, that bias can derail progress.
The first step to handling these biases is recognizing them. Leaders who understand how their thinking affects their actions can slow down, ask better questions, and consider more diverse perspectives.
The Pressure of High-Stakes Decisions
Stress plays a big role in poor decisions. When the stakes are high and time is tight, even confident leaders can slip into survival mode. When that happens, they may become focused on short-term wins or try to avoid mistakes instead of making long-term choices with confidence.
Under pressure, leaders may:
- Rush decisions without thinking through all the options
- Stick to old habits instead of experimenting with new strategies
- Avoid asking for input to keep up the appearance of certainty
- Make reactive choices to deliver fast results, missing long-term impact
Picture a manager dealing with a sudden drop in revenue. In a hurry to cut costs, they cancel employee training programs. It might seem like a quick fix, but it could impact employee motivation and future performance. The pressure to act fast overrides a more balanced plan.
How leaders feel when they’re making a decision matters. Being overwhelmed can cloud their judgment just as much as missing information can. By acknowledging the stress and giving space for thoughtful reflection, they stay grounded and make better choices.
Lack of Diverse Perspectives
Another big reason leaders make poor decisions is when they don’t bring different perspectives into the conversation. Many rely on a small inner circle or repeat tactics that worked in the past. But if everyone at the table sees things the same way, it’s easy to miss critical angles.
When there’s a lack of diverse input, leaders often face roadblocks like:
- Not testing ideas from multiple viewpoints
- Facing problems with the same solutions every time
- Avoiding disagreement to prevent conflict
- Skimming over risks because no one challenges the plan
Think of a company planning to launch a new product in another country. If everyone on the team has the same background and experiences, they might miss important factors like local culture or buying habits. The team agrees too quickly, and blind spots go unnoticed until it’s too late.
Encouraging different voices and creating space for disagreement doesn’t mean inviting chaos. It simply makes decision-making stronger. Bringing in unique ideas helps leaders spot weak points before they turn into real issues.
Balancing Intuition and Logic
Good decisions come from a mix of gut instinct and solid information. Many leaders lean on their instincts because they’ve seen them pay off before. But when intuition isn’t backed up by evidence, it can lead to trouble.
So how do leaders know when to trust their gut and when to follow the numbers?
- Gut can help spot early signs or patterns
- Data and team feedback can back up or challenge feelings
- Don’t act too fast just because something feels right
- Ask if intuition is based on real experience or comfort
It’s kind of like driving. You might know the road well and feel confident, but if a new road sign says “detour ahead,” ignoring it could land you in a bind. Experience helps, but checking your surroundings is just as important.
By pausing to consider both instinct and facts, leaders avoid the trap of leaning too far in one direction. It helps them stay steady, informed, and ready to adjust.
Building Awareness and Adaptability
To avoid repeat mistakes, leaders need to be self-aware and stay open to learning. Mistakes happen, and that’s part of growing. The key is being willing to reflect, learn, and adjust as things change.
Ways leaders can build that awareness and growth include:
1. Reflect on major decisions. Identify what worked and what didn’t.
2. Ask for honest input from trusted team members. It helps uncover those blind spots.
3. Make room for pause before jumping into big decisions. A moment of thought can prevent impulsive actions.
4. Always be learning—through books, events, conversations, or coaching.
Picture a leader who used to make calls without input. After taking feedback from their team and noticing a few poor outcomes, they begin looping others in sooner. That one change adds depth to their leadership and leads to stronger results.
Growth takes intention. Leaders who reflect, learn, and adjust earn more trust and are more likely to lead their teams through challenges with clarity.
Empowering Leadership Through Better Decisions
Bad decisions don’t always mean bad leadership. They often come from stress, blind spots, or outdated habits. What sets strong leaders apart is how they respond when things don’t go as planned. The willingness to stay curious, accept feedback, and make changes counts for a lot.
Better leadership means better decision-making. That starts with understanding bias, staying open to fresh input, and not letting pressure push decisions in the wrong direction. When leaders do that work, they gain trust, sharpen their thinking, and earn better results.
Leadership keynote speakers like those at Juan Bendana can give your team the insight and structure needed to avoid costly mistakes and build stronger leadership habits over time.
Leaders facing today’s challenges can always benefit from deepening their understanding and learning new skills. For more insights on enhancing leadership and making informed decisions, explore how our approach to leadership keynote speakers can support lasting growth. Juan Bendana helps organizations build confidence and adapt to change through engaging, forward-thinking presentations.