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People Don’t Like To Be Second Guessed

Daniel Kahneman on why organizations have trouble implementing systems that would make decisions more rational:

Kahneman: … there is actually enormous resistance, I think, within organizations to implementing programs that would improve the rationality of their decisions.

Charlie Rose: Why?

Kahneman: Well because it creates difficulty for the leadership. The moment you have a system that is a more structured system – then that system can be used to second guess the decisions of people. And people don't like to be second guessed. So there is a lot of interest in ways to improve rationality but … when it comes to implementation enthusiasm wanes distinctly. … because you are naked and this is a real problem.

Daniel Kahneman on Charlie Rose

Still curious? Read Kahneman's book Thinking, Fast and Slow.