The Psychology of Leadership Decisions

The Psychology of Leadership Decisions

The University of Connecticut
by Harry Levinson

This article was contributed by The Arthur Andersen Center for Family Business, PhilKupperman, Associate Director.

Analysis of corporate failures usually focuses on finance, management or strategy.Butespecially in family businesses, we are reminded to look deeper–to the psychological roots ofthe decisions that business leaders make.

Harry Levinson, a noted corporate psychologist, recently wrote “Why the Behemoths Fell:Psychological Roots of Corporate Failure” (American Psychologist, May 1994).He explainsthat leader psychology is fundamental to problems that rock even huge companies–like Disney,American Express and IBM. More…