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Denial: Why Business Leaders Fail to Look Facts in the Face---and What to Do About It
An astute diagnosis of one of the biggest problems in business
Denial is the unconscious determination that a certain reality is too terrible to contemplate, so therefore it cannot be true. We see it everywhere, from the alcoholic who swears he's just a social drinker to the president who declares "mission accomplished" when it isn't. In the business world, countless companies get stuck in denial while their challenges escalate into crises.
Harvard Business School professor Richard S. Tedlow tackles two essential Why do sane, smart leaders often refuse to accept the facts that threaten their companies and careers? And how do we find the courage to resist denial when facing new trends, changing markets, and tough new competitors?
Tedlow looks at numerous examples of organizations crippled by denial, including Ford in the era of the Model T and Coca-Cola with its abortive attempt to change its formula. He also explores other companies, such as Intel, Johnson & Johnson, and DuPont, that avoided catastrophe by dealing with harsh realities head-on.
Tedlow identifies the leadership skills that are essential to spotting the early signs of denial and taking the actions required to overcome it.
Denial is the unconscious determination that a certain reality is too terrible to contemplate, so therefore it cannot be true. We see it everywhere, from the alcoholic who swears he's just a social drinker to the president who declares "mission accomplished" when it isn't. In the business world, countless companies get stuck in denial while their challenges escalate into crises.
Harvard Business School professor Richard S. Tedlow tackles two essential Why do sane, smart leaders often refuse to accept the facts that threaten their companies and careers? And how do we find the courage to resist denial when facing new trends, changing markets, and tough new competitors?
Tedlow looks at numerous examples of organizations crippled by denial, including Ford in the era of the Model T and Coca-Cola with its abortive attempt to change its formula. He also explores other companies, such as Intel, Johnson & Johnson, and DuPont, that avoided catastrophe by dealing with harsh realities head-on.
Tedlow identifies the leadership skills that are essential to spotting the early signs of denial and taking the actions required to overcome it.
272 pages, Hardcover
First published January 25, 2010
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590 people want to read
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Displaying 1 - 15 of 15 reviews
April 11, 2023
I started reading Denial a couple of years ago, but stopped at page 56. Can't tell you why. I think I was working for a company that oozed Denial to the point of saturation. When I spoke the truth and they went another direction, it was one of those "well, look what speaking the truth will get you. " Not being the first time to that dance, I iced the book and it collected dust.
Without an agenda in my head, I picked up Denial again. This time around, the case studies and pithy observations felt like a refresher from my MBA studies. And it felt good. How energising it is to be challenged and affirmed on the same page.
Living in the UK now, many of the companies highlighted in case studies are not known. I knew them well. Except WebVan. If you read the book, you will know why it wasn't on my radar. Companies great and legendary failing on what seems obvious in review, were steeped in cultures that did not allow for openness or frank discussions. Others, weathered bad times with a level of grace because of the culture they had cultivated.
Faith in humanity is not quite in full recovery mode, because denial is alive and well. Slaying truth and propelling humanity toward disaster on so many fronts. But to see and yet see is possible. The last quote of the book snagged from James Baldwin does offer some hope:
"Not everything that is faced can be changed, but nothing can be changed until it is faced."
Here here!
Without an agenda in my head, I picked up Denial again. This time around, the case studies and pithy observations felt like a refresher from my MBA studies. And it felt good. How energising it is to be challenged and affirmed on the same page.
Living in the UK now, many of the companies highlighted in case studies are not known. I knew them well. Except WebVan. If you read the book, you will know why it wasn't on my radar. Companies great and legendary failing on what seems obvious in review, were steeped in cultures that did not allow for openness or frank discussions. Others, weathered bad times with a level of grace because of the culture they had cultivated.
Faith in humanity is not quite in full recovery mode, because denial is alive and well. Slaying truth and propelling humanity toward disaster on so many fronts. But to see and yet see is possible. The last quote of the book snagged from James Baldwin does offer some hope:
"Not everything that is faced can be changed, but nothing can be changed until it is faced."
Here here!
May 14, 2020
Oh Wow. Wow. When I was a young history student, I was taught to look at the time in which an historian researched and wrote his book. His or her context was and is the marinade for their interpretation.
This was a simple and indeed teleological point. It was however a great technique to remember: all writing emerges from a context.
This book from Richard Tedlow is the best I have read this year. Marinated in the Global Financial Crisis, he offers the most powerful theorization of denial. The consequences of personal and professional denial - for the world - are starkly presented.
While the benefits of denial are clear, particularly when the management of the brutal truth is simply too much to manage, the costs are clear to individuals, to businesses and to the planet.
Diagnostically, this book is outstanding. But it also offers concrete strategies to create a culture that steps out of denial.
We can never be free of denial. But it can be managed. And it is managed most effectively with truth.
This was a simple and indeed teleological point. It was however a great technique to remember: all writing emerges from a context.
This book from Richard Tedlow is the best I have read this year. Marinated in the Global Financial Crisis, he offers the most powerful theorization of denial. The consequences of personal and professional denial - for the world - are starkly presented.
While the benefits of denial are clear, particularly when the management of the brutal truth is simply too much to manage, the costs are clear to individuals, to businesses and to the planet.
Diagnostically, this book is outstanding. But it also offers concrete strategies to create a culture that steps out of denial.
We can never be free of denial. But it can be managed. And it is managed most effectively with truth.
July 11, 2021
Intellectual kin of "Good to Great," where historical events are chosen to illustrate a thesis. Appreciated the summary in the last chapter to tie up the eight points he wanted to make about denial.
November 26, 2016
I can’t deny it, but I enjoyed this book.
Denial
Why Business Leaders Fail to Look Facts in the Face – and What to Do About It.
By Richard S. Tedlow
The author gives us the story of a few key companies and how they went wrong by ignoring facts that were present at the time. This isn’t about a CEO making a choice between two equally good paths and picking the wrong one. This is about a business landscape that is changing, competitors are succeeding, and the underlings in the company call out the truth… but all are ignored. Why?
He touches on the psychology of denial. We fall into a state of “knowing and not knowing, a state of rational apprehension...” We just don’t want our world view upset, if we recognized it, we’d have to do the hard work to change our situation. In this way, this “business” book is a good one to internalize for one’s life too.
The book is written in a nice easy-reading style. One doesn’t need an MBA to enjoy it. The examples are told in a way of a story which makes it easy to follow. He also includes some examples of companies that did not fall into denial and saw the truth in time to correct their course.
While I was aware of some of what he recounted, some was new and just fascinating at a detailed level. I had known that the Ford Motor company brought the automobile “Model T” to the masses, but I hadn’t realized how they went off the rails and almost lost it all.
General Motors came along and led by Alfred P Sloan he saw the weaknesses in Ford’s business model. Ford prided itself on “Any color as long as it’s black…” General Motors offered various colors. They recognized that a car reflected who you are, they were a status symbol.
Sloan realized that the masses were made of discrete groups. So he thought “a car for every purse and purpose.” They offered more expensive cars with better features and included financing!
I knew of the A&P supermarkets but the story is so interesting how they lost to the upstarts like Safeway. The advent of television and advertising national brands caused issues for a store that stocked only their own products. Think about it, the kids want Frosted Flakes with Tony the Tiger, not A&P’s Frosted flakes.
With more people having cars that pushed the consumer out into the suburbs, a new location where stores should be located. Families could go to the store and purchase a lot more vs what they use to carry in a few bags on their bus ride home.
In reading a book like this, one can’t help looking at business that we may work at or shop at currently. Do you see the need for a change that is being avoided? Do you recognize a business that you can feel in your gut will be gone in a few years?
If the subject interests you, then this book is one I’ll think you will enjoy.
Denial
Why Business Leaders Fail to Look Facts in the Face – and What to Do About It.
By Richard S. Tedlow
The author gives us the story of a few key companies and how they went wrong by ignoring facts that were present at the time. This isn’t about a CEO making a choice between two equally good paths and picking the wrong one. This is about a business landscape that is changing, competitors are succeeding, and the underlings in the company call out the truth… but all are ignored. Why?
He touches on the psychology of denial. We fall into a state of “knowing and not knowing, a state of rational apprehension...” We just don’t want our world view upset, if we recognized it, we’d have to do the hard work to change our situation. In this way, this “business” book is a good one to internalize for one’s life too.
The book is written in a nice easy-reading style. One doesn’t need an MBA to enjoy it. The examples are told in a way of a story which makes it easy to follow. He also includes some examples of companies that did not fall into denial and saw the truth in time to correct their course.
While I was aware of some of what he recounted, some was new and just fascinating at a detailed level. I had known that the Ford Motor company brought the automobile “Model T” to the masses, but I hadn’t realized how they went off the rails and almost lost it all.
General Motors came along and led by Alfred P Sloan he saw the weaknesses in Ford’s business model. Ford prided itself on “Any color as long as it’s black…” General Motors offered various colors. They recognized that a car reflected who you are, they were a status symbol.
Sloan realized that the masses were made of discrete groups. So he thought “a car for every purse and purpose.” They offered more expensive cars with better features and included financing!
I knew of the A&P supermarkets but the story is so interesting how they lost to the upstarts like Safeway. The advent of television and advertising national brands caused issues for a store that stocked only their own products. Think about it, the kids want Frosted Flakes with Tony the Tiger, not A&P’s Frosted flakes.
With more people having cars that pushed the consumer out into the suburbs, a new location where stores should be located. Families could go to the store and purchase a lot more vs what they use to carry in a few bags on their bus ride home.
In reading a book like this, one can’t help looking at business that we may work at or shop at currently. Do you see the need for a change that is being avoided? Do you recognize a business that you can feel in your gut will be gone in a few years?
If the subject interests you, then this book is one I’ll think you will enjoy.
May 28, 2011
It is somewhat different from what I expected to read. I expected the author fully explain the process to reach the denial and how to avoid it, but those were not answered enough in this book and rather he just jump to the word "denial" when it comes to the reason of failure. I wanted specifically what caused the denial and how to prevent it.
Model T is a old story anyway and I did not feel close to the story.What I felt was I was just reading a brief history of companies.
I understood the denial is one of the enemies for business leaders so I wanted to be explained enough how we can avoid falling into this trap.
Model T is a old story anyway and I did not feel close to the story.What I felt was I was just reading a brief history of companies.
I understood the denial is one of the enemies for business leaders so I wanted to be explained enough how we can avoid falling into this trap.
July 22, 2024
The author succeeded in making history interesting. I was fascinated by the business stories shared in this book and found the lessons quite relevant to today. Even the Tylenol poisonings, a case study oft-included in graduate materials as an ethical case study, was told with a fresh perspective that engaged my emotions. I knew the facts already but was moved beyond just the facts to an immersion in the psychological aspects of the business decisions the leaders had to make.
This book is selective in its focus, dealing only with avoidable denial that leads to failure. The author also clarifies that not all avoidable failures are the result of denial. Other factors may come into play, such as making a bad choice, honest mistakes, a lack of information that leaves you unknowingly ignorant of the issue, or strategic avoidance. This distinction resonates with me and is consistent with my research on business leadership and organizational strategies. The recommendations for dealing with denial were quite similar to what I've taught regarding biases and other blind spots we might have that impact our decision-making abilities.
No quick fixes are given and no promises are made about defeating denial once and for all. Instead, it is characterized as a psychological process that we must battle until the end of our days. So, if you're looking for easy answers, this is not the book. However, if you want to be encouraged to be a leader who listens, adopts a long-term perspective, and tells the truth, speaking with radical candor and avoiding euphemistic language, then this book is for you.
This book is selective in its focus, dealing only with avoidable denial that leads to failure. The author also clarifies that not all avoidable failures are the result of denial. Other factors may come into play, such as making a bad choice, honest mistakes, a lack of information that leaves you unknowingly ignorant of the issue, or strategic avoidance. This distinction resonates with me and is consistent with my research on business leadership and organizational strategies. The recommendations for dealing with denial were quite similar to what I've taught regarding biases and other blind spots we might have that impact our decision-making abilities.
No quick fixes are given and no promises are made about defeating denial once and for all. Instead, it is characterized as a psychological process that we must battle until the end of our days. So, if you're looking for easy answers, this is not the book. However, if you want to be encouraged to be a leader who listens, adopts a long-term perspective, and tells the truth, speaking with radical candor and avoiding euphemistic language, then this book is for you.
August 7, 2017
Great book. I didn't give it five stars because the book could have provided more action steps for middle managers and senior advisors that help them to deal with denial at the top of the organization.
August 1, 2017
it is the best book ever
December 27, 2019
Some interesting insights into how legendary corporations were brought down by chicken-hearted leadership. I remember it becoming a bit long through the way the last few stories are told.
October 12, 2023
Always a good book to reread. Third time through it. Should be required reading for anyone leading an organization.
June 6, 2015
In ''Denial'', Richard Tedlow dedicates 1 chapter to light theory of the concept of denial, 9 to company-based case studies, and 1 to final conclusions.
The chapter about theory presents a useful distinction between denial of probabilities and denial of facts. Tedlow then proceeds to separate denial of facts in ''literal denial'' (denial of the facts in themselves) and ''interpretive denial'' (denial of interpretation, e.g. ''this doesn't apply to us'')
An example of denial of probabilities is the start-up entrepreneur who assumes the general statistic of failing start-ups doesn't apply to him, which is not necessarily bad and may even be a requirement for succes.
As for denial of facts: In order to deny the facts, you have to know them first. Your company can fail if you deny the facts, as the example of Henry Ford shows.
However, not seeing something is not the same as denying it. Tedlow seems to forget this, he seems to think that not knowing a fact and denying that fact are the same thing. This is struck me while reading his description of the failure of A&P. Instead of denial, I had the impression that what was causing A&P's decline was a lack of vision or even a lack of knowing what was going on.
As for his description of Sears, I couldn't help thinking about Clayton Christensen's brilliant ''The Innovator's Dilemma'', which gives a more convincing reason for Sears' troubles: Sears was the victim of a disruptive technology. As Christensen convincingly argues, even when you see that you are a victim of such a disruptive technology, it is often very difficult and sometimes even impossible to adapt.
Compared to Christensen's, Tedlow's explanation for the demise of Sears seems less convincing.
Coincidence: Both Christensen and Tedlow use the same 1960's article from Fortune in their analysis of the Sears case.
In these and almost all other cases he presents, Tedlow forces denial as the only or main reason for the hard times that hit the companies in his examples. This ''one-simple-solution-for-complicated-problems'' approach seems often superficial.
Kieran Levis, in ''Winners and Losers'', covers some of the same companies, and has a much broader, profounder analysis of the failures of these companies.
As the above suggests, Tedlow should provide a more in-depth analysis, and not just apply the verdict of denial on all cases as an almost single explanation. His anecdotal approach may seem pleasant at first, but has an aftertaste of superficiality.
Unfortunately it is not only the content in this book that leaves much to be desired. There is also plenty of room for improvement in Tedlow's writing style. Some examples:
- What to think of this sentence: ''It was they whose decisions in the days and weeks to come would have potentially vast public health consequences''. ¿¿It was they whose...?? Why not simply say: ''Their decisions could have vast public health consequences''?
- Repetitive and unoriginal use of cliches in chapter 10:
''the valley of death'' is used twice, for Jews in nazi-occupied Hungary and for Intel's lack of strategy (very unfortunate to use the valley twice in these cases).
''Missing in action'': In one single chapter, both trust and decisiveness and vision are all missing in action.
''This would serve him well'' appears several times in chapter 10.
- Tedlow decided to include a poem by Shelley. If you choose a poem, you may assume that your readers understand that you like it. Tedlow's comment after the poem: ''You've got to love a poem like that, unlike much modern verse, is easy to understand''. Oh please.
The result of this all is a book light on content and weak in writing style. It gives the impression that this was written in a hurry. At least, I assume that with more time, a Harvard Business School professor will be able to deliver a better product.
The chapter about theory presents a useful distinction between denial of probabilities and denial of facts. Tedlow then proceeds to separate denial of facts in ''literal denial'' (denial of the facts in themselves) and ''interpretive denial'' (denial of interpretation, e.g. ''this doesn't apply to us'')
An example of denial of probabilities is the start-up entrepreneur who assumes the general statistic of failing start-ups doesn't apply to him, which is not necessarily bad and may even be a requirement for succes.
As for denial of facts: In order to deny the facts, you have to know them first. Your company can fail if you deny the facts, as the example of Henry Ford shows.
However, not seeing something is not the same as denying it. Tedlow seems to forget this, he seems to think that not knowing a fact and denying that fact are the same thing. This is struck me while reading his description of the failure of A&P. Instead of denial, I had the impression that what was causing A&P's decline was a lack of vision or even a lack of knowing what was going on.
As for his description of Sears, I couldn't help thinking about Clayton Christensen's brilliant ''The Innovator's Dilemma'', which gives a more convincing reason for Sears' troubles: Sears was the victim of a disruptive technology. As Christensen convincingly argues, even when you see that you are a victim of such a disruptive technology, it is often very difficult and sometimes even impossible to adapt.
Compared to Christensen's, Tedlow's explanation for the demise of Sears seems less convincing.
Coincidence: Both Christensen and Tedlow use the same 1960's article from Fortune in their analysis of the Sears case.
In these and almost all other cases he presents, Tedlow forces denial as the only or main reason for the hard times that hit the companies in his examples. This ''one-simple-solution-for-complicated-problems'' approach seems often superficial.
Kieran Levis, in ''Winners and Losers'', covers some of the same companies, and has a much broader, profounder analysis of the failures of these companies.
As the above suggests, Tedlow should provide a more in-depth analysis, and not just apply the verdict of denial on all cases as an almost single explanation. His anecdotal approach may seem pleasant at first, but has an aftertaste of superficiality.
Unfortunately it is not only the content in this book that leaves much to be desired. There is also plenty of room for improvement in Tedlow's writing style. Some examples:
- What to think of this sentence: ''It was they whose decisions in the days and weeks to come would have potentially vast public health consequences''. ¿¿It was they whose...?? Why not simply say: ''Their decisions could have vast public health consequences''?
- Repetitive and unoriginal use of cliches in chapter 10:
''the valley of death'' is used twice, for Jews in nazi-occupied Hungary and for Intel's lack of strategy (very unfortunate to use the valley twice in these cases).
''Missing in action'': In one single chapter, both trust and decisiveness and vision are all missing in action.
''This would serve him well'' appears several times in chapter 10.
- Tedlow decided to include a poem by Shelley. If you choose a poem, you may assume that your readers understand that you like it. Tedlow's comment after the poem: ''You've got to love a poem like that, unlike much modern verse, is easy to understand''. Oh please.
The result of this all is a book light on content and weak in writing style. It gives the impression that this was written in a hurry. At least, I assume that with more time, a Harvard Business School professor will be able to deliver a better product.
April 25, 2011
A great book on a psychological problem that afflicts all of us at one time or another, but is really serious when you're the leader of a business: Denial. If you've read Jim Collins' How the mighty Fall, then you may already be familiar with this concept in companies that fail. Tedlow's book expands on the subject of denial, that made up one of the chapters of Collins book. Denial looks at several companies that denied the realty they were in and how it lead to their downfall, and shows those companies that faced the hard-cold-truth head on and were successful for it.
I work for a company that is in transition and I would say our company is similar to the example of Intel, our leaders denied (and still don't fully accept) that the business we've been in for decades is going away and we're going to have to embrace something new. We have begun converting to new sales, but denial worked for many years. I remember forwarding articles to my boss and his boss on trends in the "real world" and he actually told me, "Don't send those to [my boss] anymore". He wanted to shield his boss from what was actually happening in the world, even though you could look at our sales numbers and come to the same conclusion. The good news is that his boss eventually came to my way of thinking and though they haven't completely given up on their old product, they have invested in the new.
Examples like this and others are given, along with a chapter at the end on things you can do to try to combat denial in your organization. I even used one of the examples from the book, before having read it. As I mentioned our company was in a bit of denial, and I knew they wouldn't listen to news that part of the industry was changing, so I changed tactics and began giving them data on how good the other part of our business was doing. Which led them to invest more, and got us headed in the right direction. The key, and the suggestion from the book, is that sometimes you have to tailor your message so that it will actually be heard. If your boss refuses to listen when you tell them the boat is sinking, then perhaps suggest a fun life-boat ride.
Overall a great book on a necessary subject. Recommend it not only to those who are in charge of companies, but those who have the ability to influence those in power.
I work for a company that is in transition and I would say our company is similar to the example of Intel, our leaders denied (and still don't fully accept) that the business we've been in for decades is going away and we're going to have to embrace something new. We have begun converting to new sales, but denial worked for many years. I remember forwarding articles to my boss and his boss on trends in the "real world" and he actually told me, "Don't send those to [my boss] anymore". He wanted to shield his boss from what was actually happening in the world, even though you could look at our sales numbers and come to the same conclusion. The good news is that his boss eventually came to my way of thinking and though they haven't completely given up on their old product, they have invested in the new.
Examples like this and others are given, along with a chapter at the end on things you can do to try to combat denial in your organization. I even used one of the examples from the book, before having read it. As I mentioned our company was in a bit of denial, and I knew they wouldn't listen to news that part of the industry was changing, so I changed tactics and began giving them data on how good the other part of our business was doing. Which led them to invest more, and got us headed in the right direction. The key, and the suggestion from the book, is that sometimes you have to tailor your message so that it will actually be heard. If your boss refuses to listen when you tell them the boat is sinking, then perhaps suggest a fun life-boat ride.
Overall a great book on a necessary subject. Recommend it not only to those who are in charge of companies, but those who have the ability to influence those in power.
November 13, 2011
nice and insightful in parts
October 18, 2012
Great read. I got this after my company fired our division's CEO and his top reports. Having lived through denial at the top, I needed to read about it...
November 11, 2014
the act of accepting or not of denial existence perhaps to safeguards a leader in decision making. it is crucial if in the state of ignorance.
Displaying 1 - 15 of 15 reviews