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What decision makers can learn from Blair’s failures. (2016)

“Iraq war shows how an inner circle that becomes a cabal will confirm what CEOs think they know.”

Andrew Hill.
ft.com 11 July 2016.

It should come as no surprise that the uniquely perilous situation described in the (Chilcot report on the Iraq war) has parallels in, and lessons for, the corporate world.

(Chilcot’s) report advocates wider and deeper discussion in cabinet and committees, separation of risk assessments from policy decisions, and independent audit of strategy as it is implemented — all good advice for CEOs considering important strategic moves.

(It also) casts doubt, for example, on Mr Blair’s predilection for sofa-style government, now largely a thing of the past in UK politics, but still prevalent in business, where many leaders draw strength and advice from an inner circle. Sometimes, provided the group is diverse and challenging enough, it can help prepare the way for important decisions taken by more formal groups.

When, however, the inner circle turns into an inward-looking cabal, it becomes a vehicle for confirming what the leader thinks he or she already knows.

In 2002, Mr Blair’s government had a strong second mandate from the British electorate. The sofa where a few intimates discussed strategy was exceedingly comfy. The corporate equivalent at the time was Fred Goodwin, buoyed by shareholder acclaim for Royal Bank of Scotland’s takeover and integration of NatWest and convinced of his own superior decision-making prowess.

Access the full article here: What decision makers can learn from Blair’s failures.

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