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When Human Judgment Works Well, and When it Doesn’t

Harvard Business Review

A number of people noted that Nobel prize-winner Daniel Kahneman’s work, nicely summarized in his 2011 book Thinking Fast and Slow , influenced their thinking a great deal. What’s really interesting, though, is that the two of them ended up in complete agreement about the conditions required for good intuition to develop.

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Can Being Overconfident Make You a Better Leader?

Harvard Business Review

Daniel Kahneman, the 2002 Nobel prize laureate and psychologist, has said that if he had a magic wand, he’d eliminate it. companies over the period from 1993 to 2011, asking the following question: Is there systematic evidence that overconfident CEOs are indeed better leaders? Most of us think of overconfidence as a bad thing.

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How Could I Miss That? Jamie Dimon on the Hot Seat

Harvard Business Review

In 2011, the company dropped its requirement to exit investment positions when losses exceeded $20 million. To understand Dimon's blindness, let's look at a quick history of the trading debacle. In 2005, Dimon hired Ina Drew to head the company's Chief Investment Office, the unit responsible for the bank's risk exposure.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

Decisive actions are required to tackle the factors that prompted the spin-off in the first place, which in many cases are underperformance and/or a lack of strategic fit leading to chronic underinvestment in the development of the business. ” When it comes to divestitures, bad economics usually get discounted in the transaction price.

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How to Regain the Lost Art of Reflection

Harvard Business Review

Brain science, popularized in Daniel Kahneman’s book , has shown that this type of “slow thinking” is negatively correlated with “fast thinking,” as might be employed when driving a car or solving a simple sum. But some CEOs have managed to resist these tendencies. Schedule unstructured thinking time.

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