Episode 3: Why Smart People Make Bad Decisions: The Psychology of Bias in Leadership
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Episode 3 Description
Smart leaders. Dangerous blind spots. Costly transformation failures. In this episode of The Human Factor Podcast, Kevin Novak and Elizabeth Stewart reveal why intelligence actually creates predictable decision traps that sabotage even the most promising organizational changes. Drawing from real transformation failures costing millions, they expose three specific cognitive biases that turn your brightest people into your biggest obstacles: addition bias (why leaders complicate rather than simplify), expertise tunnel vision (when deep knowledge becomes dangerous), and certainty addiction (the fear that drives fake confidence). This isn't another change management discussion; it's a psychological deep dive into why 70% of transformations fail and the practical framework that can flip those odds in your favor.
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Key Takeaways
- Intelligence without psychological awareness creates transformation failure, not success
- Three specific biases predict 85% of leadership decision errors during change
- Addition bias costs organizations millions in unnecessary complexity annually
- Expertise becomes a liability when it blocks diverse perspective seeking
- Fear of appearing uncertain drives leaders to fake confidence at critical moments
- The Human Factor Decision Framework counteracts bias in real time
- Psychological safety determines whether smart people share real concerns or hide them
- Successful transformation requires treating change as a psychological challenge first
- Smart leaders who embrace "not knowing" outperform those who project certainty
- One simple question can expose hidden biases: "What would failure look like to you?"