The Decision-Making Flaw in Powerful People

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October 26, 2011

a project of CharityFocus

He who controls others may be powerful, but he who has mastered himself is mightier still.

- Lao Tzu -

The Decision-Making Flaw in Powerful People

The decisions made by powerful people in business and other fields have far-reaching effects on their organizations and employees. But new research finds a link between having a sense of power and having a propensity to give short shrift to a crucial part of the decision-making process: listening to advice. Power increases confidence, researchers say, which can lead to an excessive belief in one's own judgment and ultimately to flawed decisions. This is among the first studies to examine whether power -- defined as an individual's "capacity to influence others, stemming in part from his or her control over resources, rewards, or punishments" -- reduces or increases a person's willingness to heed advice. Strategy+Business Magazine shares further. { read more }