Why the Worst Business Decisions All Fail the Common Sense Test - Track Changes On Podcast Ep 12

📌 Read the full article on Substack: https://www.trackchangeson.com/p/when... Why do so many companies keep making decisions that seem to defy common sense? Some of the worst business decisions aren’t necessarily made by inexperienced or incompetent people. Often, there’s a perfectly rational explanation for how the company got there. This episode of Track Changes On looks at why business fails and corporate fails can happen even when the individual decisions behind them make sense. We look at the organisational research behind local rationality and goal displacement, and how breaking complex problems into smaller pieces can sometimes leave nobody looking at the whole picture. We also look at what these decisions tell us about corporate culture and leadership, using the Australian idea of the ‘pub test’ to ask a simple question: does this decision still make sense when you step outside the organisation and look at the whole picture? It’s a useful way to understand some of the contradictions that make corporate culture so frustrating for the people working inside it. In this episode: Why rational corporate decisions can produce outcomes that seem absurd What the Australian ‘pub test’ can tell us about corporate decision-making Famous business fails that made sense internally but failed the common sense test Why Netflix’s Qwikster decision became such a high-profile corporate failure What Vegemite iSnack 2.0 can teach us about internal corporate logic Why companies break complex decisions into smaller pieces How local rationality can make each piece of a decision seem reasonable while the overall outcome doesn’t Why following the right corporate process doesn’t necessarily produce the right outcome The role leadership teams play in stepping back and looking at the whole picture Why social media has effectively become the modern version of the pub test Supporting the show: If you enjoy my work and would like to support it, here are a few things I've created: 🛒 Track Changes On Shop (https://trackchangeson.etsy.com) - Coffee mugs for corporate rebels 📖 Do Give Up Your Day Job (https://carolinewarnes.gumroad.com/l/...) - Guide to corporate exits and transitions to self-employment About Track Changes On: Track Changes On explores the future of corporate work, AI, careers and organisational change. New episodes every week. 📩 Subscribe on Substack: https://www.trackchangeson.com Connect with me: 📸 Instagram:   / carolinewarnes.sydney   🧵 Threads: https://www.threads.com/@carolinewarnes