| Abstract: | Managers who make incorrect decisions often realise, after the fact, that they ignored important warning signals—that they had driven through a red light. They had missed or ignored clear warning signs that, normally, would have steered their behaviour away from calamity. A recent research project demonstrated that, in a sample of highly successful managers, each admitted that he/she had missed and ignored warning signals and persevered with business mistakes even after they had become evident. With cases taken from the research, this article examines the reasons behind this phenomenon and the dangers of the cycle repeating itself, drawing attention to some of the typical settings and characteristics of this ‘red light behaviour’ and draws conclusions on how to learn from and thus avoid it. |
