Why Smart Companies Make Bad Decisions

Episode notes

Guest: Mats Alvesson If your organization is full of smart people, why does it keep making bad decisions? In this thought-provoking episode, Maureen Metcalf and Christopher Washington are joined by Professor Mats Alvesson, one of the world's leading organizational scholars and author of The Stupidity Paradox . Alvesson introduces the concept of “functional stupidity”—the tendency for intelligent individuals and organizations to stop questioning assumptions, rely on familiar routines, and prioritize conformity over critical thinking. Mats explores how bureaucracy, excessive processes, organizational rituals, and the desire to preserve social harmony can unintentionally suppress good judgment and slow organizational learning. Alvesson also offers practical ideas for creating cultures that encourage reflection, initiative, and thoughtful challenge without sacrificing organizational effectiveness. This episode offers valuable insights into how organizations can become smarter by questioning more, and doing less of what no longer serves them.