Definition of Insanity

The Harvard Business Review had an article discussing the reasons many leaders will fail to change course even when their strategies are not working.

A study in the 1970's showed that most MBA's would stick with the strategy they chose even when that strategy proves to fail. In other words, they would choose to pour more money and energy into a failed plan, rather than admit a mistake and change. Interestingly, the study makes reference to the Vietnam Conflict as an example of logic falling prey to face-saving.

No one likes to admit being wrong, especially if you've been chosen as one more likely to foresee future needs while having a plan to meet those needs. A leader who can admit being wrong and recognize the need to change course is an increasingly rare commodity.

Ellen Langer's study on the illusion of control showed that people were more willing to bet on a gamble when it was their hand that would roll the dice or pull the card. With all these psychological pressures its no wonder most leaders choose to double down on bad decisions.

The best leaders are not those who never make bad decisions, but rather will be able to recognize a bad decision, give it the axe, and start over with something new. To fail to do so sounds much like the classic definition of insanity: Continually doing the same thing while expecting different results.