Categorized | Blog

The halo effect, and other managerial delusions – Companies cannot achieve superior and lasting business performance simply by following a specific set of steps

In the quest to achieve superior performance, executives often rely on advice in business books, articles, and business school case studies that claim to reveal a blueprint for gaining lasting competitive advantage. The research underpinning this advice, however, is often deeply flawed and, worse, obscures the basic truth that success in the business world is based on decisions made under uncertainty and in the face of factors executives cannot control.

This article, an adaptation of material from the author’s book, “The Halo Effect: . . . and the Eight Other Business Delusions That Deceive Managers”, explores some of the misconceptions and delusions found in the business world, particularly those concerning the ability of executives to achieve durable superior performance. These include the idea that variables such as leadership and corporate culture have a causal relationship to financial performance. 

Click here to read the full article


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