The Complexity Paradox: How CEO Overconfidence Shapes Strategy

Link: https://www.cutter.com/article/complexity-paradox-how-ceo-overconfidence-shapes-strategy

From Leadership

This Advisor explores how CEO overconfidence influences firm complexity, drawing on analysis of over 14,000 earnings call transcripts. While confident leaders may aim to streamline operations, the findings show a 3.1% reduction in complexity among firms led by overconfident CEOs — raising concerns about oversimplification. Boards and investors should carefully evaluate whether reduced complexity reflects strategic clarity or signals deeper organizational blind spots.
Leadership
Advisor