10 Reasons Smart Leaders Make Bad Decisions

A Brilliant Man Named Ferruccio

A uniquely gifted Italian man by the name of Ferruccio had a keen interest in mechanics.  Prior to World War II he studied the subject at the famous Fratelli Taddia Technical Institute located about a half-hour from Bologna.  After being drafted into the country’s Royal Air Force he served as a mechanic and ultimately became the unit’s supervisor.

Hard times then fell upon Ferruccio when he became a prisoner of war in 1945.  One year later he returned home but then his wife passed away in 1947.

But his love for machinery remained.

In fact, he developed a particular love for farm equipment.  Ferruccio had creative idea to take discarded military machine parts left over from the war and repurpose them into useful farming tools and machines.  He was so successful he ultimately started his own business selling tractors.  The name of his company was Lamborghini Trattori after Ferruccio’s last name.

The Lamborghini

Ferruccio Lamborghini also enjoyed cars.  Because of his expert knowledge of machinery, he discovered inefficiencies in the clutches of Ferraris.  So he brought his findings to Enzo Ferrari himself.

Rather than being appreciative for this opportunity to improve his product, the legendary pride of Ferrari led him to dismiss both Lamborghini and his suggestions about the car’s clutch.

Many people after experiencing this humiliation would have went back to their very successful tractor business and lived the simple life.  But not Lamborghini.  He started taking those same materials used for tractors and began making cars; but not just any cars – luxury cars.  And the legendary Lamborghini was created.

History would show that in 2020, over 8,000 Lamborghinis were sold at an average price of $300,000 to $320,000.

Poor History

Before we get tough on Enzo Ferrari’s pride and wisdom, history is littered with people who passed on greatness.  Here is just a short list:

1. The Kansas City Star fired Walt Disney for his lack of imagination and good ideas.
2. Blockbuster passed on purchasing Netflix three different times.
3. Tom Brady was selected with the 199th pick in the NFL Draft.
4. John Travolta turned down the role of Forrest Gump.
5. Chris Daughtry finished 4th in the 2006 American Idol contest losing to Katharine McPhee and Taylor Hicks.

And I could go on and on.

So why do smart leaders make such bad decisions.

The following are 10 possibilities:

1. Hubris.  They overestimate their own importance.  Their success has made them feel they are the repository of all great ideas.
2. They stop learning.  After all, why should an Uber-successful person listen to a moderately successful person?
3. They created an echo chamber and do not listen to outside voices.
4. Appearances.  They discount others because of superficial items such as age, height, weight, ethnicity, sex, attractiveness, and nationality.
5. Let’s don’t over-complicate this.  They simply can’t evaluate opportunity.
6. They become addicted to comfort and don’t want to deal with inconvenient ideas or realities.
7. No one likes change but a baby, even successful leaders.  Therefore, they miss great ideas and make bad decisions.
8. There is often a financial cost associated with change.
9. There is often an emotional cost associated with change.  You often lose great friends who have been with you for years.
10. It is the rare leader who has the humility and self-awareness to admit their own ideas are stale and someone might have a better idea.

There are several lessons contained here for leaders:

• When someone discounts you or your idea, it may not be a reflection of you or your idea.  It may be a reflection of their ability to evaluate opportunity.  There is a difference between sensing opportunity and seizing it.
• As a leader, evaluate the list of 10 items above.  Do any describe you?

You don’t want to be the leader who passes on the next Lamborghini.

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