Reasons Organizations Make Decisions Against Their Best Interests

One of the reasons organizations make decisions against their best interests is due to individuals within the organizations not taking invisible threats seriously. Humans are wired to focus on clear and present dangers, neglecting risks that are not readily recognizable. Another reason is the bias towards optimism, where people believe that bad things won't happen to them or their organization, making it difficult to invest resources in controls for potential but unlikely events. Additionally, there's a thrill in ignoring danger and taking risks, as it releases dopamine and excitement. Organizations also tend to resist bad news and punish those who deliver it, making it unpopular to acknowledge potential hazards. People often rely on their gut instinct and hunches, overestimating their accuracy and neglecting a more systemic analysis. Furthermore, organizations have a tendency to forget collective trauma, leading to a repetition of history as they fail to recognize previous mistakes. Additionally, individuals can adjust to almost anything, normalizing deviations, pain, and discomfort, accepting the current situation as normal. Organizations often defend the normal, which creates a resistance to change. Finally, the desire to fit in and be socially accepted can override survival instincts and prevent individuals from speaking up or delivering bad news.