“I Know Enough”: The Evidence of a Leadership Blind Spot

Leaders sometimes assume they “know enough” because of past success. But in a rapidly changing and increasingly complex world, leaders can never afford such an assumption. Conditions constantly shift. Assuming that yesterday’s reality still applies is like an ostrich with its head in the sand, trying to hide from realities that might threaten them.

Effective leaders continually read their current environment. They study:

• What risks are emerging?

• What new products or services could we bring to market?

• Are our customers satisfied and loyal?

• Do we have the right systems, processes, and policies?

• Are we improving quality and revenue?

• Do we have the right talent - and are our people ready for change?

• What new alliances, partnerships, or opportunities are possible?

Research involving 6,000 leaders shows that 98% operate with limited situational awareness. Leaders need a broader field of awareness if they are to make wise decisions.

This is not a matter of intelligence. It is a matter of willingness: the willingness to challenge assumptions, consider multiple points of view, and determine what is most important at this point in time.

Leaders must also free themselves from sticking with what has worked in the past. What worked before may no longer work now.

Consider Target’s expansion into Canada. Leaders assumed that Canadian and U.S. consumers had similar buying preferences and that the company’s successful U.S. model would translate easily into the Canadian market. That assumption proved costly. Target ultimately closed all 133 Canadian stores, absorbing billions of dollars in losses.

Blockbuster offers another example. Its leaders rejected an opportunity to acquire Netflix, in part because Netflix did not fit Blockbuster’s store-based business model. The market changed. Netflix adapted to it. Blockbuster did not - and eventually went bankrupt.

The lesson is simple: leaders need to analyze the past, present, and future conditions before jumping into action.  Knowing enough to act is not always knowing enough to act wisely. Strong leaders consider:  What might I be missing, whose perspective have I not heard, and what has changed since this situation began?

The moment a leader decides, “I know enough,” a blind spot will remain to surface latter. Doing what is comfortable but rarely wise.