ABSTRACT

The reasons events occur in organizations are complex. As a result, those who occupy leadership positions must understand and be able to act on those causes that give rise to sought-after outcomes in a complex system. In the present effort, we examine how analysis, and action, on critical causes give rise to more, or less, effective performance in leadership positions. Additionally, evidence is reviewed that demonstrates the impact of causal analysis skills on leader performance. Subsequently, key considerations influencing leaders’ ability to analyze and act on causes are described including assumptions about timing, analysis of counterfactuals, models and case examples used in appraisal of causes, and bounding of causal operatives. Implications for the assessment and development of leadership potential are discussed.