short sighted decision making

Why Do Leaders Make Short-Sighted Decisions?

Several factors contribute to short-sighted decision making:
1. Pressure for Quick Results: Stakeholders often demand immediate returns, pushing leaders to prioritize short-term gains.
2. Lack of Information: Incomplete or inaccurate information can lead to decisions that do not consider long-term consequences.
3. Risk Aversion: Fear of potential risks can cause leaders to avoid bold, strategic moves that could benefit the organization in the future.
4. Incentive Structures: Compensation and reward systems that emphasize short-term performance can drive leaders to make decisions that are not aligned with the organization’s long-term objectives.

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