Why Smart Companies Make Bad Decisions

Guest: Mats Alvesson

If your organization is full of smart people, why does it keep making bad decisions?

In this thought-provoking episode, Maureen Metcalf and Christopher Washington are joined by Professor Mats Alvesson, one of the world's leading organizational scholars and author of The Stupidity Paradox.

Alvesson introduces the concept of “functional stupidity”—the tendency for intelligent individuals and organizations to stop questioning assumptions, rely on familiar routines, and prioritize conformity over critical thinking. Mats explores how bureaucracy, excessive processes, organizational rituals, and the desire to preserve social harmony can unintentionally suppress good judgment and slow organizational learning.

Alvesson also offers practical ideas for creating cultures that encourage reflection, initiative, and thoughtful challenge without sacrificing organizational effectiveness.

This episode offers valuable insights into how organizations can become smarter by questioning more, and doing less of what no longer serves them.

 

Other episodes you'll enjoy:

- How Inner Work Transforms Your Leadership: Tools for Growth with Jonathan Reams

- How to Avoid the Bad Leader Trap with Harvard fellow Barbara Kellerman

- Navigating the Global Storm with Cynthia Cherrey

For daily wisdom from our guests, be sure to follow us on LinkedIn.

RESOURCES:  

Mats’ book, The Stupidity Paradox, is available in paperback at https://amzn.to/3SaNWzU.

The other book he mentioned, The Art of Less: How to Focus on What Really Matters at Work, is available in hardback at https://amzn.to/4a7yOt9 and on Kindle at https://amzn.to/4eANySA.

Our host Maureen Metcalf posts a newsletter every week on LinkedIn. You can subscribe here. 

 

Maureen’s latest book is Innovative Leadership & Followership in the Age of AI. You’ll find details about it at https://bit.ly/LeaderInAI, or check out the Kindle version at https://amzn.to/44buVz8. The audiobook version is now available at  https://amzn.to/4dTCleZ.

 

Her other 10 books are available on Amazon here. 

 

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OUR PODCAST TEAM:  

Host & Executive Producer: Maureen Metcalf

Editor & Executive Producer: Dan Mushalko

Graphics Editor: Stacia Rogan

Sponsorship Sales Manager: Kristine Gross (Kgross@innovativeleadership.com)

Booking Producer: Jenna Reik (Jreik@innovativeleadership.com)

Theme Music by Pavel Bekirov from Pixabay.

 

CONNECT WITH US: 

YouTube: @InnovatingLeadership 

LinkedIn: https://bit.ly/ILI-LinkedIn2 

Website: InnovativeLeadershipInstitute.com 

 

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About Our Guest:  

Professor Mats Alvesson is a Swedish management scholar and Professor of Organizational Studies at Lund University. Widely regarded as one of the most influential thinkers in organization and management studies, his work focuses on leadership, organizational culture, identity, power, critical management studies, and organizational irrationality. He is best known for developing the concept of functional stupidity: the tendency of organizations to suppress critical thinking and reflection despite employing highly intelligent people. Alvesson has authored more than 30 books and hundreds of scholarly publications, including The Stupidity Paradox, The Art of Less, Changing Organizational Culture, and Constructing Research Questions. He was elected an International Fellow of the British Academy in recognition of his contributions to management and organization studies.