Overconfidence bias can have several negative impacts on a business:
Financial Losses: Misguided investments and strategies can lead to significant financial losses. Reduced Adaptability: Overconfident leaders may resist change and innovation, believing their current strategies are foolproof. Poor Team Dynamics: Overconfident leaders might alienate team members, leading to a lack of collaboration and a toxic work environment. Reputation Damage: Consistently poor decisions can tarnish a company's reputation in the market.