Facing your blind spots: how solving the wrong problem just became a bigger problem

Kevin Cuthbert muses on all the ways in business and in life that we jump to conclusions and miss the real problem, often with disastrous results.
March 17, 2021
5
min read
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My son's violin teacher recently posted this challenge on Facebook:

Find the correct result.

1+4=5

2+5=12

3+6=21

5+8=_________

I immediately thought I had the answer: 34. I, like many of the people responding, took the sum of each equation and added it to the equation just below to fill in the blank. Another large contingent guessed 45, getting there by using multiplication. It turned out that we were all wrong.

Both answers can be considered to be correct if the challenge is to fill in the blank. The problem was that was not the challenge. The challenge quite clearly and simply asks the solver to "find the correct result." So this is a not really a challenge of math. It is one of reading comprehension. The answer is “1 + 4 = 5” because it is the only equation that has the correct result. It was so easy to jump to the wrong conclusion and charge ahead with the solution.

This had me thinking about all the ways in business and in life that we do this same thing, jump to conclusions and miss the real problem, often with disastrous results.

The road to disaster is paved with the wrong problem

There are some classic business stories on this topic. Kodak and Blockbuster are two of these. The problem Blockbuster was trying to solve was around its stores – how to get more stores and get more sales and profit from each store. They famously turned down an offer to buy Netflix for $50M. Any guess what that investment would have yielded? As I am writing this, Netflix market capitalization is nearly $235B.

It was a similar situation at Kodak, which invented digital photography and had one of the world’s first online photo sharing platforms. During the early 2000s, digital photography was overtaking traditional photography. In this same time frame the problem that Kodak focused on was how to drive the printing of more photos, completely missing that digital photography and online sharing was becoming the business. In 2011 Kodak filed for Chapter 11 protection and turned its focus to commercial digital imaging.

Getting blinded by your own stories

This tendency to ignore or discount information that does not fit our way of thinking was perhaps first talked about by Chris Argyris. He called it the “Ladder of Inference.” The basic idea is that people, teams and even organizations get rooted in a way of thinking and operating that blinds them to any data or information that would contradict their long-held beliefs and experiences.

I witnessed this tendency play out with a senior leader I worked with recently. This SVP level business unit leader has had 2 new bosses in a short time due to a reorganization. One result is that this leader now works for someone who used to be a peer. This leader is doing the same work, for the same pay, with the same title, and she, like many of us might, considers this to be a “demotion.”

This has become the dominant story that she has made up and from which she is operating. She has built this into an even bigger and negative story with the headline, “They are trying to get rid of me.” This has translated into some unproductive behaviors – not least of which has been the spreading of this narrative to others and undermining her team’s faith in her and the company. This has also led her to hold back on big ideas for her business unit and the enterprise, because “they have no chance of being adopted given that they don’t see my value.” In general, she is less effective. By the time I was brought in to coach her, it looked very much like a self-fulfilling prophecy.

By contrast, in talking to her colleagues, almost everything I heard about this leader was positive. “She is a master at her trade,” “She is passionate about her work and the company,” “She cares about her direct reports and their development,” “She is a team player.” The list of strengths went on and on. The only opportunities for improvement involved the leader’s response to the structural changes and a general sense that she was depressed and demoralized.

This came to a head during one meeting we had together where she reported that she would be getting more resources and more responsibility—a goal she had long sought. She shared this information with a somber tone, which surprised me, since this issue of not having enough resources had been one of her key bits of evidence for the “They want to get rid of me” narrative. I called her out on this contradiction, and we spent some time working through this inconsistency between her story of the problem she was facing, and the now readily apparent truth—that she was on the verge of undermining her own leadership, and potentially taking her team with her, for a nonexistent reason.

Five ways to avoid the “wrong problem” problem

Fortunately, we had caught the “wrong problem” problem before this leader had done herself irreparable harm, and once she was able to see the truth more clearly, she rapidly reverted to her old self and was able to refocus her team as well. We went on to take the opportunity to work together to lead her team to change the way they view problem solving as a team skill, to avoid the same trap and get to better results, faster.

Building on the practices we worked on together, here are 5 things to do as a leader, and with your team, to avoid chasing after the wrong proble

  1. Slow down, especially if the stakes are high. Check your action bias and make it a practice to slow down and take steps to consider how well you understand the situation, and what might be going on, before jumping to the diagnosis of the problem.
  2. Develop a list of alternative definitions of the problem you are trying to solve. A great way to start doing that is to consider the different definitions that might apply to your problem. Do this yourself and encourage your team to implement this as an exercise.
  3. Invite different perspectives from diverse stakeholders. Another useful practice is to systematically seek out a range of opinions about the problem, to help generate a range of alternatives. Gathering the views of those who see the world differently will guarantee new thinking. During team meetings, make it a practice to go around the table to seek all views, and potentially invite stakeholders outside of your team to weigh in as well.
  4. Identify a “devil’s advocate” to challenge assumptions and potential solutions. A great technique for making sure you are thinking broadly enough is to formally identify a “devil’s advocate,” someone to play the role of challenging your view of the problem. It can be a trusted colleague, or an external advisor. This is also a valuable team meeting tool – make sure to rotate the role to make it an effective part of the team culture.
  5. Consider looking at your problem with the “eyes of a child” or what Buddhists call “beginner’s mind.” This practice of having an attitude of openness, eagerness, and lack of preconceptions when studying a problem, just as a beginner would, can help you step back from the moment to consider the problem in a new way.

The next time you are telling yourself a story about a problem you are solving—or your team is hashing through with you—make sure to take a step back to see if you have it right.

By the way – if you want to have some more fun with this topic, I invite you to experience the Colour Changing Card Trick. Have fun!

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Feedback that fuels: A framework to help leaders shift from critique to connection

Leaders can turn feedback into a powerful tool for connection and growth with this practical guide to building trust and sparking curiosity.

Feedback is one of the most powerful tools a leader has, shaping both individual and organizational culture. Yet, despite its value, it’s often met with apprehension—seen as judgment rather than an opportunity. Instead of fueling growth, it can create tension, leaving recipients feeling exposed and defensive.

This reaction is natural. Feedback touches on identity, competence, and self-worth. When framed as a verdict rather than an insight, it sparks defensiveness instead of openness. But what if feedback wasn’t about judgment? What if it was a tool for gathering better data—both for the recipient and the leader?

When leaders make feedback a habit, not a performance review, they gain sharper insights, model continuous improvement, and create a culture where learning thrives. The shift from evaluation to empowerment turns feedback into fuel for growth. And at the heart of this shift? Curiosity.

Leading in a MESSY world: Why feedback matters more than ever

Leaders today operate in constant disruption and complexity. They must move beyond assumptions and seek new perspectives. At BTS, we call this operating in a MESSY world:

  • M – Making sense of the broader ecosystem
  • E – Establishing emotional connections to build trust
  • S – Seizing momentum to stay ahead
  • S – Sensing the future amid uncertainty
  • Y – Yielding ego to create space for others to grow

Feedback is critical in helping leaders navigate these challenges. It’s not just a tool for correction but a catalyst for innovation and collaboration. But without structure, feedback can fall flat. That’s where the AFIRM Model comes in.

Reframing feedback: From evaluation to exploration

Great feedback moves beyond transaction into mutual discovery. When leaders model effective feedback, they foster deeper connections and unlock insights that drive performance.

Curiosity plays a crucial role in this transformation. When leaders approach feedback with genuine curiosity—asking open-ended questions and actively listening—they shift conversations from critique to shared learning. Curiosity also provides leaders with better data on how they show up, helping them refine their approach and model the kind of feedback culture they want to create.

Balancing feedback with efficiency is essential. The AFIRM Model provides a structured approach that makes feedback actionable and constructive while keeping curiosity at the center.

Structure feedback for impact with the AFIRM model

AFIRM enables structured yet flexible conversations—ensuring feedback drives results. It provides a roadmap for leaders to create meaningful, productive discussions that foster growth and accountability. Here’s how it works:

A – Agenda

Set clear intentions. Define the purpose and desired outcomes upfront. A prepared conversation leads to honest, productive dialogue and signals that feedback is a shared responsibility rather than a one-sided critique.

F – Facts, Observations, Evidence

Keep it objective. Base feedback on data and observations to minimize bias. Stay neutral and constructive. Providing fact-based feedback ensures conversations remain focused and prevents emotional reactions that derail progress.

Curiosity fosters deeper dialogue—ask questions, seek perspectives, and pave the way for growth. Instead of assuming why something happened, ask “What led to this?” or “What challenges were you facing?” to create space for honest reflection.

I – Impact

Clarify effects. Who was affected? What were the consequences? Centering feedback on impact builds trust and accountability. Highlighting the broader implications helps individuals understand why feedback matters and how their actions contribute to team success.

R – Request

Co-create a path forward. Define actionable, SMART next steps (Specific, Measurable, Achievable, Realistic, Time-bound). Encourage collaboration by asking “How do you think we can move forward?” or “What support do you need?” Keeping the dialogue open ensures accountability while fostering autonomy.

M – Mutuality

Feedback is a partnership. Success requires shared ownership and commitment to growth. A strong feedback culture thrives when both parties see feedback as a two-way street—leaders should also invite input on how they can better support and enable success. Take time to ask “What feedback do you have for me?” to reinforce that feedback is a mutual learning process.

Creating feedback-driven growth

Imagine an organization where feedback fuels engagement and connection. When framed as a tool for growth rather than judgment, conversations shift from evaluation to exploration. Everyone is on the same team, with the same goals.

Great leaders don’t just give feedback—they seek it, reflect on it, and use it to sharpen their approach. By modeling curiosity and making feedback a daily habit, they foster a culture where feedback is normal, constructive, and empowering.

Feedback isn’t about fixing. It’s about discovering what’s possible. By approaching it as a shared learning opportunity, we move from judgment to collaboration, growth, and transformation.

What’s one question you could ask today to spark a meaningful feedback conversation?

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Leading with others: Embracing a new era of leadership

Explore how 'leading with others' redefines leadership as a collective responsibility, fostering collaboration, innovation, and resilience.

The landscape of leadership is evolving as newer generations challenge traditional hierarchies. Outdated practices, focused on a top-down power dynamic, have fostered an “us vs. them” mentality, stifling collaboration, slowing innovation, and hindering sustained growth.In response, Future Relevant Organizations are adopting "next practices" that recognize and celebrate contributions, influence, and impact of contributions at all levels of the organization. Central to this shift is the movement from “leading others” to “leading with others,” recognizing that leadership isn’t confined to those in senior positions.“Leading with others” encourages a more inclusive, collaborative approach by:

  • Encouraging employees to lead and influence across boundaries.
  • Inspiring shared purpose and accountability toward collective goals.
  • Prioritizing well-being, fostering psychological safety, and enabling open idea-sharing.
  • Viewing vulnerability as a strength, recognizing that no one has all the answers.
  • Maintaining focus and thoughtful engagement amidst uncertainty.

A biopharma company with a historically top-down leadership structure offers a clear example of the transformative power of this shift. While the company had enjoyed impressive growth, it faced competitive and pricing pressures from disruptive innovation, regulatory challenges, and supply chain vulnerabilities, all of which called for a fresh approach to leadership. Innovation and expansion were crucial to sustaining success.Recognizing the need for change, the company embraced the idea that leadership and influence aren’t confined to those at the top. Here’s how this new approach reshaped their organization:

  • Empowering all levels: Leadership became less about titles and more about fostering a culture where every employee felt valued and capable of contributing. Through well-crafted experiences, 5,000 employees enhanced their self-awareness, challenged established norms, and adopted a long-term perspective aimed at collective growth.
  • Redefining leadership: Leadership shifted from micromanagement to empowering others to make meaningful contributions. Employees were given greater agency and ownership, leading to increased adaptability in a dynamic market.
  • Building trust through vulnerability: The organization encouraged vulnerability, quickly building trust across teams in an evolving, loosely connected environment. This strengthened team dynamics and established a supportive community ready to face new challenges.

Next practices: Shared leadership responsibility

The shift toward “leading with others” is not simply a change in leadership style; it is a strategic imperative. By embracing diverse perspectives and treating leadership as a collective responsibility, organizations gain more valuable insights that drive better decision-making and innovation. Companies that adopt this approach are better prepared to adapt to change, seize new opportunities, and build a culture where everyone is engaged in shaping the future.

“Leading with”: A more inclusive path forward

Adopting a “leading with others” mindset requires more than just structural changes—it calls for a fundamental shift in how leadership is understood at all levels. Leaders must actively create environments where contributions from all employees are expected, not optional. This inclusive leadership approach fosters a deeper sense of ownership and accountability, empowering employees to align their actions with the organization’s long-term goals.As the business landscape continues to evolve, organizations that embrace this collective approach to leadership will be better positioned not only to navigate uncertainty but also to thrive in the future ensuring future relevance.

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Being charismatic… when you're not charismatic

Laura Fay, Executive Advisor and Consultant, shares seven actions you can take to heighten your charisma, no matter your personality.

Whether you love or hate the term, it represents an important quality for leaders – the ability to show up in a way that engages others, aligns and motivates them, and that ultimately can rally them to get things done. When working with leaders who are self-identified introverts, they often prickle at the assumption that they need to consciously “extrovert” themselves to demonstrate executive presence. Or be gregarious. Or just “get over” their introversion and become more outgoing.

Recently, a senior technology leader at a large insurance company taking on broader responsibility across his organization reached out. He knew that he wanted to step up his presence and visibility in order to mobilize and inspire the team. He struggled with the idea that he’d have to make a dramatic change from his more analytical, quiet, and introverted approach to better connect with people. “I’m just not an exuberant person,” he said. “Being overly energetic and bubbly doesn’t feel genuine to me. I don’t have it in me to be effusive or over-the-top. I just don’t have charisma.”

He's not alone in that sentiment: many introvert-identifying leaders feel the same way. However, there is another approach. Leaders CAN demonstrate charisma without having to compromise on personal style or authenticity. Step one is aligning on how we define charisma. In this instance, let’s use the traditional Merriam-Webster version: an individual that possesses “a special magnetic charm or appeal.” Something that draws you to another person.

With that in mind, here are seven actions you can take to heighten your “charisma” without feeling like you’re having an out-of-body experience:

  1. Make eye contact: This is the simplest way to clearly demonstrate that you’re paying attention and interested in what the other person is saying. A good rule of thumb is to maintain eye contact 50 percent of the time when speaking and 70 percent when listening. If that feels uncomfortable, try looking away for four to five seconds at a time and then refocusing.
  2. Smile more: There’s a great TED talk about the power of smiling. Here’s what you need to know: One smile can generate the same level of brain stimulation as 2,000 bars of chocolate. It reduces stress-inducing (cortisone) and increases mood-enhancing (endorphins) hormones. Also, try not to automatically smile back when someone smiles at you.
  3. Consider body language: More specifically, tilt forward slightly when in conversation, and keep your arms uncrossed. Use hand gestures to emphasize points. You don’t want to cross into someone’s personal space, but you can send a message that invites the other person to lean in – literally and figuratively.
  4. Talk about yourself: Talking about things that are important to us is scientifically proven to spark more neural activity in our brains. In other words, self-disclosure, or sharing something you’re passionate about, can create a sense of energy and excitement that can be contagious. In addition, any level of vulnerability in turn gives your audience permission to reciprocate, and they may be more likely to share with you.
  5. Talk about them: See point #3. Talking about yourself creates connection, which is true for the person you’re talking to as well. Ask them questions about their passions and interests, then listen. Really listen — without interrupting, checking your phone, or bringing the conversation back to you.
  6. Share stories: Imagine someone who is extremely charismatic. It’s likely you aren’t conjuring up someone who regularly spouts data and facts. A better way to emotionally connect with your audience is to use stories and analogies to make your point. It’s about sharing experiences that have shaped who you are and how you think. And stories are 22 times memorable than facts alone.
  7. Use real talk: The fastest way to lose someone in a conversation is by using technical jargon or formal, scripted language. Aim to be both conversational AND credible. Try slowing down your pace to be more intentional with your word choice. If you’re using words like “synergy” and “circle back” – you’re doing it wrong.
Bottom line – developing your executive presence and a sense of charisma doesn’t mean having to become someone you’re not, and it doesn’t require a dramatic change. Very small shifts in how you pay attention, convey information, and use body language can have a meaningful effect on how you connect with your audience.

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From top-down to judgment all around: The AI imperative for organizations

Discover why AI makes human judgment the new competitive edge and how organizations can develop leaders ready to out-judge, not out-think, AI.

Each business revolution has reshaped not only how businesses operate, but how they organize themselves and empower their people. From the industrial age to the information era, and now into the age of artificial intelligence, technology has always brought with it a reconfiguration of authority, capability, and judgment.

In the 19th century, industrialization centralized work and knowledge. The factory system required hierarchical structures where strategy, information, and decision-making were concentrated at the top. Managers at the apex made tradeoffs for the greater good of the enterprise because they were the only ones with access to the full picture.

Then came the information economy. With it came the distribution of information and a need for more agile, team-based structures. Cross-functional collaboration and customer proximity became competitive necessities. Organizations flattened, experimented with matrix models, and pushed decision-making closer to where problems were being solved. What had once been the purview of a select few, judgment, strategic tradeoffs, and insight became expected competencies for managers and team leads across the enterprise.

Now, AI is changing the game again. But this time, it’s not just about access to data. It’s about access to intelligence.

Generative AI democratizes access not only to information, but to intelligent output. That shifts the burden for humans from producing insights to evaluating them. Judgment, which was long the domain of a few executives, must now become a baseline competency for the many across the organization.

But here’s the paradox: while AI extends our capacity for intelligence, discernment, the human ability to weigh context, values, and consequence, is still best left in the hands of human leaders. As organizations begin to automate early-career work, they may inadvertently erase the very pathways and opportunities by which judgment was built.

Why judgment matters more than ever

Deloitte’s 2023 Human Capital Trends survey found that 85% of leaders believe independent decision-making is more important than ever, but only 26% say they’re ready to support it. That shortfall threatens to neutralize the very productivity gains AI promises.

If employees can’t question, challenge, or contextualize AI’s output, then intelligent tools become dangerous shortcuts. The organization stalls, not from a lack of answers, but from a lack of sense-making.

What organizations must do

To stay competitive, organizations must shift from simply adopting AI to designing AI-aware ways of working:

  • Build new learning paths for judgment development. As AI replaces easily systematized tasks, companies must replace lost learning experiences with mentorship, simulations, and intentional development planning.
  • Design workflows that require human input. Treat AI as a co-pilot, not an autopilot. Embed review checkpoints and tradeoff discussions. Just as innovation processes have stage gates, so should AI analyses.
  • Make judgment measurable. Assess and develop decision-making under ambiguity from entry-level roles onward. Research shows the best learning strategy for this is high-fidelity simulations.
  • Start earlier. Leadership development must begin far earlier in career paths, because judgment, not just knowledge, is the new differentiator.

What’s emerging is not just a flatter hierarchy, but a more distributed sense of judgment responsibility. To thrive, organizations must prepare their people not to outthink AI, but to out-judge it.

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BTS acquires Nexo to strengthen its position in Brazil and Latin America

BTS has agreed to acquire Nexo Pesquisa e Consultoria Ltda., Nexo, a boutique consulting firm headquartered in São Paulo, Brazil.

P R E S S R E L E A S E
Stockholm, May 5, 2025

STOCKHOLM, SWEDEN – BTS Group AB (publ), a leading global consultancy specializing in strategy execution, change, and people development, has agreed to acquire Nexo Pesquisa e Consultoria Ltda., Nexo, a boutique consulting firm headquartered in São Paulo, Brazil.

Nexo has been growing continuously since it was founded in 2017. With revenues of approximately 12 million Brazilian Reales (approx. 2.1 million USD) in 2024, and a highly capable team of 21 members, Nexo has built a strong reputation for delivering transformative projects in strategy, innovation, leadership, and culture.

Nexo collaborates with a great portfolio of clients across sectors such as financial services, consumer goods, and technology, assisting both local and global companies in navigating uncertainty, unlocking creativity, and activating strategy through people. Their work encompasses culture transformation, leadership development, employer value proposition, innovation culture, and vision alignment – supported by proprietary methodologies and frameworks.

BTS currently operates in Brazil servicing both local and multinational clients with a team of 13 employees. By acquiring Nexo, BTS not only increases the Group’s footprint in Brazil but also adds significant capabilities in culture and transformation services. Nexo’s client base has limited overlap with BTS, creating strong growth potential and synergy opportunities.

“Nexo is known for helping leaders and organizations tackle some of the most complex, human-centered challenges with creativity, empathy, and strategic clarity and the Nexo team is loved by their clients,” says Philios Andreou, Deputy CEO of BTS Group and President of the Other Markets Unit. “Their products and services complement and elevate our existing offerings, especially in culture transformation, and we are thrilled to welcome the Nexo team to BTS.”

“We’re excited to join BTS. We’ve long admired BTS’s approach and unique portfolio to support large organizations and leaders in connecting strategy with culture across the organization,” says Andreas Auerbach, co founder of Nexo. “Becoming part of BTS, allows us to scale our impact and bring more value to our clients while staying true to our values and culture,” adds Mariana Lage Andrade, co-founder of Nexo.

Upon completion of the transaction, Nexo’s business and organization will merge with BTS Brazil. Nexo’s founders will assume senior management roles in the joint operation.

The acquisition includes a limited initial cash consideration. Additional purchase price considerations will be paid between 2026 and 2028, provided Nexo meets specific performance targets. A limited portion of any such additional purchase price considerations will be paid in newly issued BTS shares. The transaction is effective immediately.

BTS’s acquisition strategy continues to focus on broadening our service portfolio, expanding our geographic reach, and enhancing our capabilities to support future organic growth in a fragmented market.

For more information, please contact:
Philios Andreou
Deputy CEO
BTS Group AB
philios.andreou@bts.com

Michael Wallin
Head of investor relations
BTS Group AB
michael.wallin@bts.com
+46-8-587 070 02
+46-708-78 80 19

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High-performing teaming

New BTS research reveals a gap between what leaders are working hardest on in their teams and what actually sets the highest performers apart.

Work today is too complex for individuals to succeed in isolation, and almost every critical decision, innovation, or transformation depends on teams working effectively together. To understand what actually makes those teams work, BTS analyzed 6,702 leader coaching goals and 3,211 leadership team survey responses using our High-Performing Team Assessment model, comparing what leaders say they are working on with what teams say is getting in their way.