White Paper on Leadership and Behavioral Finance Issued by Perth Leadership Institute

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Lack of Business Acumen Focus in Conventional Leadership Approaches Revealed by Economic Crisis Can Be Addressed by Incorporating New Findings from Behavioral Finance and Economics

The Perth Leadership Institute (http://www.perthleadership.org/), the industry thought leader in business acumen assessment and development programs, today announced that it has released its latest White Paper on the impact of behavioral finance and economics on leadership development. This radical new approach suggests that leadership approaches cannot progress until they address the deep cognitive biases in decision-making by all executives revealed by these emerging disciplines It can be found at http://www.perthleadership.org/index.php?option=com_content&view=article&id=266:leadership-development-and-behavioral-finance&catid=8:white-papers&Itemid=10 .

The White Paper argues that conventional leadership approaches are based on a model of rational decision-making that is simply often wrong when applied to either economic crises or enterprise management. The new disciplines of behavioral economics and finance are based on the latest scientific approaches to decision-making. These show that the decision-making of most executives is adversely impacted to varying degrees by unconscious cognitive biases. It shows that if these are not compensated for, they can lead to the sorts of corporate and nationwide problems we have been experiencing over the past two years. The White Paper concludes that it is the right time that conventional leadership approaches take these findings into account so that they can help supply solutions to the future financial crises that will undoubtedly occur.

According to Dr. E. Ted Prince, Founder and CEO of the Institute, "Conventional leadership theory needs to move with the times. New behavioral disciplines are casting new light on enterprise and social leadership problems that conventional leadership models do not address. Adopting behavioral approaches, as the White Paper suggests, provides a new approach to thinking about leadership development and provides strategies for addressing systemic enterprise, economic and financial problems that current theories cannot address."

The Perth Leadership Institute has developed innovative approaches to leadership styles and financial impacts based on its research into business acumen. These form part of its business acumen assessment and development programs for managers and executives. It has developed business acumen assessment instruments, such as the Financial Outcome Assessment®, used by executives and managers to increase their financial and valuation impact.

The Perth Leadership Institute was founded in 2002 in Gainesville, Florida, by Dr. E. Ted Prince to carry out research into the linkages between behavior and company financial outcomes. Its programs are targeted at executives and managers and are used for leadership and executive development, talent management and to improve individual and team financial performance at the middle and senior levels of organizations.

Perth Leadership Institute


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