Episode #640: Why smart leaders still make bad strategic decisions - with David Mansfield

Making decisions as a founder or leader is rarely about having perfect information.

In this episode, Kevin Brent is joined by David Mansfield, strategist, board adviser and researcher into strategic decision making, to explore why so many intelligent leadership teams still make poor strategic choices and what business owners can do to dramatically improve the quality of their decisions.

Drawing on doctoral research and decades of board experience, David explains why the process behind a decision matters far more than simply reaching an answer. He shares practical techniques that help leaders combine intuition with evidence, avoid common thinking traps and create greater buy in from their teams.

One standout message from this episode is simple but powerful:

Validate intuition with data, and validate data with intuition.

In this episode you'll discover

• Why nearly half of strategic decisions fail despite being made by experienced leaders
• Why the way you make decisions is more important than the decision itself
• David's developing nine step framework for making better strategic decisions
• How to slow down decisions without slowing down your business
• Why founders often become victims of the qualities that made them successful
• The importance of challenging assumptions before committing to action
• Why communication can be the difference between success and failure at board level
• How to recruit advisers and non executives without creating long term governance problems
• Why every scaling business should invest in strategic finance earlier than they think
• The "Boat Rule" for keeping meetings focused on what really moves the business forward
• Why chasing every opportunity can become one of the biggest barriers to sustainable growth

Key takeaways

One of David's biggest lessons came from serving as a non executive director of Game Group, where concerns over cash flow were dismissed until the business eventually collapsed. Looking back, David realised that while the analysis was correct, the communication wasn't persuasive enough.

That experience sparked years of research into how leaders actually make decisions under pressure.

For founders, David highlights one recurring challenge. The resilience, determination and stubbornness needed to build a business can eventually become a weakness if it prevents leaders from listening to advice or recognising when circumstances have changed.

He also makes a compelling case for building financial capability much earlier by progressing from bookkeeper, to fractional CFO, to full time finance director as the business grows. Clean financial information enables better decisions, stronger investor confidence and healthier growth.

The one key thing

Great strategic decisions aren't driven by instinct or data alone. The best leaders deliberately test each against the other before acting.

About Smart90

Most founders I speak to feel busy but stuck. Plenty happening, but no real clarity on what matters most this quarter. Here's what more than 500 interviews on this show have taught me: the founders who scale choose less, and deliver all of it.

That's what the G90 Summit is for.

A structured half day where we cut through everything competing for your attention, agree the three to five things that must happen in the next 90 days, and build the rhythm to make sure they do.

Quarterly, virtual, £97 a seat.

smart90.co.uk/summit

 

Scaling up your business isn't easy, and can be a little daunting. Let ScaleUp Radio make it a little easier for you. With guests who have been where you are now, and can offer their thoughts and advice on several aspects of business. ScaleUp Radio is the business podcast you've been waiting for.

If you would like to be a guest on ScaleUp Radio, please click here:

https://bizsmarts.co.uk/scaleupradio/kevin

You can get in touch with Kevin here:

[e-mail]

 

David can be found here:

https://www.linkedin.com/in/davidjmansfield/

https://davidjmansfield.com/

 

Resources:

What They Don't Teach You at Harvard Business School by Mark McCormack - https://uk.bookshop.org/p/books/what-they-don-t-teach-you-at-harvard-business-school-mark-h-mccormack/e52571d3ef38f282?ean=9781781253397&bkshp-astro=t

How to Win Friends and Influence People by Dale Carnegie - https://uk.bookshop.org/p/books/how-to-win-friends-and-influence-people-dale-carnegie/82760854e5e9eaa2?ean=9789373070667&bkshp-astro=t

Never Split the Difference by Chris Voss - https://uk.bookshop.org/p/books/never-split-the-difference-negotiating-as-if-your-life-depended-on-it-chris-voss/14cac2e5f5322728?ean=9781847941497&bkshp-astro=t