The Leadership Blind Spot: How Power Alters Decision-Making And What To Do About It

As I sat across from the company president in a sleek conference room, the light reflected off the marble boardroom table. I was there to deliver a tough message—his company was struggling, and he didn’t see it. Hired to “take the pulse” of the employees through focus groups, I uncovered issues deeper than anyone had anticipated.

He sipped his coffee, idly picking at a blueberry muffin. “I’m hoping it’s not all bad,” he said, worry etched into his face. His company was his pride and joy, a business he had built from the ground up. Employees knew the stories—how he had sacrificed to make payroll, worked through endless nights, and fended off competitors. Now, as the leader of a multimillion-dollar business, he found himself out of touch with the very workforce that had helped him succeed.

Over the next two hours, we discussed the findings – both positive and deeply concerning. When we reached the more pressing issues, I expected shock. Instead, I saw detachment.

“There isn’t air conditioning in some of the warehouses,” I told him. Silence.

“The workers have to step outside to avoid heat exhaustion before returning to their shifts.” Silence.

“It’s limiting productivity and eroding morale.” A cold stare.

“Did you know about this?” I finally asked.

“When I was coming up in this industry, I endured the same conditions,” he said. “Why should it be different for them? I don’t see the problem.”

The Power Paradox: When Leadership Becomes a Liability

If power were a pharmaceutical, it would come with serious side effects: It can intoxicate. It can corrupt. It can make leaders forget where they came from.

Many of us have worked with leaders who climbed the ranks only to lose sight of the realities frontline employees face. But does power actually rewire the brain over time? Research suggests it does.

UC Berkeley psychologist Dacher Keltner found that individuals in power often act as if they’ve suffered a traumatic brain injury – becoming more impulsive, less risk-aware, and, crucially, less capable of seeing things from others’ perspectives. Powerful people performed worse at recognising emotions and interpreting the meaning behind colleagues’ words. Even more alarming, their brains stopped mirroring others – a fundamental neural function that allows us to empathise and connect.

Why does this matter? Mirroring plays a critical role in leadership. It enables leaders to read the room, detect disengagement, and build trust. Without it, decision-making becomes detached, and culture suffers. Keltner calls this the “power paradox”: The very qualities that help people rise to leadership – empathy, awareness, and adaptability – are the first to erode once power is attained.

Can AI Help Leaders Stay Connected?

In an era where leadership requires both human insight and strategic decision-making, artificial intelligence is emerging as a crucial tool for counteracting these leadership blind spots. AI-powered analytics can help leaders track engagement trends, flag communication gaps, and even offer real-time feedback on decision-making biases. With the right approach, AI doesn’t replace human leadership – it enhances it by providing objective data that leaders might otherwise overlook.

Staying Grounded in the Age of AI

The solution to the power paradox isn’t about rejecting leadership – it’s about refining it. Staying grounded requires intentional action. Here’s how:

  • Embrace Technology – AI tools can help leaders monitor workplace sentiment, measure psychological safety, and identify early warning signs of disengagement.
  • Surround Yourself with “No” People – Trusted advisors should challenge assumptions and offer honest feedback.
  • Get Real Feedback, Often – Regular pulse surveys and AI-driven engagement tools provide unfiltered insights leaders may not hear directly.
  • Stay Connected to the Work – Spending time on the frontlines ensures that leaders remain in touch with their people’s challenges.
  • Never Lose Sight of the “Why” – AI can assist with strategy, but only human leaders can reinforce the purpose and values that drive an organisation forward.

 

As leadership evolves, staying self-aware and connected is more important than ever. The leaders who succeed in the AI era will be those who embrace technology as a tool – not a replacement – for deeper insight and better decision-making.

Contact Steople today to discover how AI can enhance your leadership and future-proof your organisation.