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Sunday, January 29, 2023

Research: Why CEOs Shouldn’t Take All the Credit | HBR

Must Read

When evaluating corporate leaders, humility may be more important than you think. 

When CEOs attribute substantial profits to their strategic choices, they are more likely to be held accountable for future failures. When leaders are modest and claim less credit for excellent accomplishments, they are less likely to be held responsible. This impact is caused mainly by the psychological process known as anchoring. 

Our study reveals that leaders should take a long-term strategy for image management to avoid setting themselves up for failure. The propensity of Wall Street to focus on short-term success has developed a culture prone to cognitive shortcuts. Analysts and boards would thoroughly and comprehensively examine CEOs in a perfect world. CEOs would be prudent, however, to anticipate cognitive biases that are likely to impact how they are seen. 

 Source: https://hbr.org/2022/05/research-why-ceos-shouldnt-take-all-the-credit 

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