6 Reasons Leaders Make Bad Decisions - Boiled Down to 1.5

I just read a really useful and accurate post by Glenn Llopis, a wonderful fellow contributor here on Forbes, focusing on why leaders make bad decisions.  He offers six reasons, all of which I've seen in leaders with whom I've worked over the years. As I read, though, I realized that  all six of Glen's reasons actually result from a single failing that has two aspects (thus the 1.5 in my title):

         Bad leadership decisions arise from a lack of clarity about what's true - either inside you or around you

Here's what I mean.  Three of Glen's reasons have to do with a leader's lack of clarity about what's going on around him or her: making decisions based on past experience that may not apply to the current situation; deciding based on a faulty or incomplete knowledge of the resources available; and making decisions that don't acknowledge the opportunities present in the environment.

The other three have to do with a leader's being confused about what's going on inside him or her - that is, lacking an internal compass of values and priorities - and making flawed decisions based upon that: being addicted to corporate politics; lacking clarity of purpose; not trusting his or her own leadership.

I completely agree: if a leader doesn't have a clear and accurate understanding of both external and internal reality,  he or she is flying blind. Like a pilot in thick fog with no instruments and no rudder, that leader is almost sure to crash.

Fortunately, if you find yourself in this predicament (or if you have a friend or colleague who's blundering down this path, and is open to your help), there is a cure.  You can work to develop the core leadership capability we call Wisdom.  This is the quality of being reflective and thoughtful about important decisions, and being actively engaged in thinking and talking about doing the right things, not only for the business, but for employees, and for society.

If you're interested in developing (or helping others develop) this capability, here are the 5 key components:

Wise leaders are deeply curious – they listen! –They’re like children in their will to explore.  They really want to get underneath the surface of people and events, and to understand what they discover.  If you want to be clear about what's going on around you, curiosity-driven listening is a powerful place to start. Ask more questions that start with phrases like "How does...?"  or "What if we...?" or "Have we ever...?"

Wise leaders assess situations objectively  – Their curiosity is paired with objectivity; while they’re exploring, they make every effort to see people and situations as accurately as possible. If you want to get better at this, question your own conclusions.  If, for instance, you find yourself thinking, "This will definitely work for me - it always has in the past," ask yourself, "Really? What if things are different now?"

Wise leaders reflect on and learn from their experience – whether things go well or badly, they glean everything they can, in order to improve going forward. They don’t indulge in wishful thinking, or cherry-picking the data. If you do make a bad decision, don't avoid thinking about it: be clear-eyed in looking at what didn't work, and think about how you'd act differently if you had the chance to do it again.

Wise leaders see patterns and share their insights with others – they step back from situations to look for the core elements and find important themes and patterns – and offer others a window into what they see so that everyone has a clearer, broader perspective.  This aspect of wisdom is key to seeing opportunities - what Glenn calls "circular vision."  You can stretch your thinking to develop this habit by asking yourself two questions 1) A year from now, what will I think were the most important aspects of this situation? and 2) What could be affecting this situation that I haven't yet thought about? Both questions will cause you to 'pull back your mental camera' in a way that will allow you to see the bigger picture, and decide based upon that.

Wise leaders act based on what they believe to be morally right – they’re clear about their own moral code, and they live by it. This is having and using your own internal guidance system that yields clarity of purpose, self-trust, and an independence from negative politics.  To develop this: when you see someone doing something you believe isn't right, ask yourself why, and then think about how you'd want to act differently in a similar situation. Once you've begun to reflect on these questions, up the ante: challenge yourself to act on your beliefs in a situation where it feels risky or uncomfortable to do so.

By cultivating wisdom in these ways, you'll improve the quality of your decisions, support your organization's success, and build loyalty and forward momentum in your team. And you'll be able to read posts about bad decision-making with a clear conscience.