In this discussion, you will explain how effective leaders apply insight and for

Question

In this discussion, you will explain how effective leaders apply insight and foresight effectively in making ethical leadership decisions when confronted by an information gap.

According to R.K. Greenleaf, effective leaders have a “sense for the unknowable” and “foresee the unforeseeable.” These attributes will also benefit your team as it completes the course group project.

a. How does an effective leader apply insight and foresight to decision-making?

b. What are the roles of trust and ethics in those decisions a leader makes when confronted by an information gap? (An information gap is the chasm between information needed to make a decision and information that is cost-effectively available for that purpose.)

c. How can you apply insight and foresight to help your team assess a public company’s investment merits and creditworthiness?

Explanation / Answer

a. Insight and foresight are two major tools an effective leader uses in decision making. Insight is the ability to deeply analuse available information and develop interpretation about something. Foresight is the ability to understand the fothcoming possibilities and apply the insight to make a decision that will be successful in the fothcoming years. The information gap about a future event is overcome by the effective use of insight and foresight derived from past information and other circumstantial data to make the decision.

Leaders with insight and foresight are very analytical in nature and can use the available information to analyse and can generate meaningful correlated decision abot future possibilities even when no information about future event is available. Their appliaction of information and analyisng the past pattern , other circumstantial data  are the sources of such insight and foresight.

b. Trust and ethics are the circumstantial evidences that the leaders use to develop insight and foresight. Take the case of a company. the effective leaders will understand hoe the company has been performing on ethical grounds so far, how good is their corporate governance , how much they care for the customers, how ethically they design their products, how much trust financial institutes put on them etc to decide about a future course of action related to the company.

c Taking the same example , insight and foresight are used to determine a public company's investment merits and creditworthiness. The effective leader will use insights and foresights derived from the company's history of corporate governance, investor relationship, relationship with the Govt , relationship with stock exchange regulators, public image, dividend policy and performance, the nature ofproducts and services, public image of the company and its products and services, relationship with bank, loan repayment history, the outlook of the industry of the company, technological changes happening in that industry, changing consumer preferences etc. From the insights and forsights it can be ascertained whether the comapny is going to succeed inits future endeavors and whether the company will be able to generate sufficient income and return for the investors. This way insight and foresight can be used to assess a public company's investment merits and creditworthiness.

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