Khadija Usman’s Post

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Founder at Grit - Fast-Growing Platform in MENA with Coaches from 10+ Countries | NLP Master Practitioner | ICF PCC Pathway | Personalized Coaching & ICF-Accredited Training Provider |

Why Leaders Don’t Always Play It Safe… 🎲 Leadership often means making decisions in the face of uncertainty. But here’s the thing: traditional models can fall short. They don’t account for the messy, real-world decisions leaders face every day. Enter *Prospect Theory*—a game-changer developed by Nobel Laureates Daniel Kahneman and Amos Tversky. This theory explains why leaders aren’t always acting on strict logic. Emotions and biases drive us all, even leaders. Here’s why it matters: 📉 Loss Aversion: Leaders feel losses more than gains. A CEO might take risks to avoid a loss rather than pursuing a gain. Think of someone doubling down on a struggling division to avoid a loss instead of focusing on growth. 🎯 Reference Points: Decisions are often anchored to performance targets. If last quarter’s goal was missed, a manager may take bigger risks to “make up for it.” Hit the goal? They’ll likely play it safe. 🔍 Distorted Probability: Leaders overestimate low-probability events and undervalue the common ones. This might explain why some jump on moonshot opportunities and ignore steady, reliable growth. So, what’s the takeaway? 1. Spotting biases: in your strategy means you’ll avoid risky (or overly safe) decisions. 2. Balancing risk and reward: becomes simpler when you see losses and gains clearly. 3. Building resilient teams: starts with understanding loss aversion and fostering a balanced approach to risks. Are you ready to make more emotionally regulated, decisions for your teams? Join us this Monday for our event, “Mental Health Tools for Effective Leadership.” Let’s dive into how you can reshape your leadership approach with more Effective tools. Register now and start making smarter choices. https://lnkd.in/dkvGfq6g #coaching #freemasterclasses #icf

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