How CEOs Must Overcome Denial

Lagace, M. (2010). Ruthlessly realistic: How CEOs must overcome denial. Retrieved March 29, 2010 from: http://hbswk.hbs.edu/item/6393.html

This article is published on Harvard Business School’s Working Knowledge Web site and is a question and answer session between the author and Richard S. Tedlow, a professor of business administration at Harvard Business School and the author of a book on the subject of denial by company leaders. The interview is based on the subject of CEO denial the lack of ability for CEOs to make appropriate changes due to their denial that changes need to be made or a problem needs to be addressed. He states that denial is not being wrong, it is the unwillingness to acknowledge and deal with reality. He also states that denial is much more costly in today’s business world than in the past because we are living in a less forgiving world than before. An example Tedlow gives for a costly denial are the dot-com bubble of the 90s that busted and cost a lot of people a lot of money. The signs were there but many denied the facts and in hopes that the good fortunes would continue. This article is important to managers because even on a smaller scale bases, it’s important that managers look at, understand, and act upon the facts and the realities of the situation, not what you want it to be. The saying “it is what it is” comes to mind when you are faced with a reality that is not what you wanted but you realize that you have to deal with it head-on anyway.