When companies evaluate strategic decisions, three conditions frequently create agency problems. One is the misalignment of time horizons between individuals and corporations. …Another problem that can generate harmful deceptions is the differing risk profiles of individuals and organizations. …The final agency issue arises from the likelihood that a subordinate knows much more than a superior does about a given issue. Higher-ranking executives must therefore make judgments about not just the merits of a proposal but also their trust in the person advancing it.
Content: Quotation
Authors: Dan P. Lovallo, Olivier Sibony
Source: McKinsey Quarterly
Subject: Organizational Behavior
Authors: Dan P. Lovallo, Olivier Sibony
Source: McKinsey Quarterly
Subject: Organizational Behavior
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