Published by:
Rotman Management Magazine
Length: 5 pages
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https://casecent.re/p/159359
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Abstract
The most critical function of every executive team is to make decisions that benefit an organization in the long term. Most of us would imagine that the more domain experts there are in a particular group, the better: their collective knowledge of risks and opportunities in a particular industry will surely lead to effective long-term decision making. The authors show that this reasoning is flawed. They describe their research, which indicates that in certain circumstances, groups that are dominated by domain experts may exhibit three harmful tendencies that actually detract from effective decision making, including over-confidence and 'cognitive entrenchment'.
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Abstract
The most critical function of every executive team is to make decisions that benefit an organization in the long term. Most of us would imagine that the more domain experts there are in a particular group, the better: their collective knowledge of risks and opportunities in a particular industry will surely lead to effective long-term decision making. The authors show that this reasoning is flawed. They describe their research, which indicates that in certain circumstances, groups that are dominated by domain experts may exhibit three harmful tendencies that actually detract from effective decision making, including over-confidence and 'cognitive entrenchment'.