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News from Members Where and when can business leaders afford to make mistakes?

Where and when can business leaders afford to make mistakes?

by Valoria Business Solutions November 12, 2026

Website www.valoria.ro

Author: Constantin Măgdălina, Expert Trends and Emerging Technologies

The higher you rise within an organization, the more consequential your decisions become, and the fewer opportunities you have to test them before making them.

Together with the executive leadership team, a CEO may decide on investments, restructuring, or strategic changes. Yet they cannot afford to test these decisions in the real world simply to see what happens. At the same time, accumulated experience does not guarantee that they will always identify the best solution.

This raises an uncomfortable question: where do business leaders get to practise their decision-making when the stakes are too high to learn from real mistakes?

Experience does not eliminate the need for practice

There is an assumption in professional development that the more experienced a leader becomes, the less practice they need. In reality, greater responsibilities bring more complex situations, incomplete information, and competing interests.

A board member may sometimes have to choose between two imperfect options, manage strategic disagreements, or take responsibility for decisions that affect hundreds or even thousands of employees.

Paradoxically, these are precisely the leaders who have the fewest opportunities to test their approaches without real-world consequences. Traditional training programs provide concepts and tools, while case studies allow participants to analyze decisions that have already been made.

However, there is a fundamental difference between commenting on someone else's choice and being the person who must make a decision under pressure, with incomplete information and several legitimate interests to reconcile.

Members of the executive team should also have the opportunity to test a decision before implementing it, explore alternatives, and examine potential consequences without exposing the organization to risk. All of these should be part of their professional development.

Better questions, not just correct answers

Imagine that the executive team must decide whether to cut costs or continue investing in a changing market. The CFO advocates financial discipline, the Commercial Director warns of potential market share losses, and the COO highlights implementation risks. There is no obvious right answer. There are arguments, trade-offs, and consequences to consider.

In such a situation, the value of the exercise does not lie in finding a standard answer. It lies in the quality of the reasoning. What assumptions have you made? What information have you overlooked? Which risks have you overestimated or underestimated? What alternatives have you failed to explore?

Feedback for senior leaders must go beyond validating the outcome. It should challenge their ability to exercise sound judgment in complex situations and help them recognize what they may have missed. Sometimes, the most valuable intervention is not a recommendation but a question: "What could make you change your decision?" or "Which important perspective is missing from your analysis?"

Business leaders need a thinking partner who does not automatically validate their opinions but challenges their arguments. Development begins when the comfort of experience gives way to the curiosity to examine one's own assumptions.

The behaviors that are hard to recognize

There is a dimension of leadership that often remains insufficiently explored: a leader's behavior throughout the decision-making process. It is not just about what they decide, but also how they reach that decision. How do they react when challenged? How much do they listen before reaching a conclusion? Do they encourage disagreement, or unintentionally discourage it through the authority of their position?

A CEO may believe they have achieved consensus within the team when, in fact, others have simply stopped arguing. They may interpret the speed of a decision as efficiency, even though they have dismissed relevant perspectives too early. Or they may avoid a difficult conversation to preserve short-term harmony, only to carry the problem forward.

These behaviors are difficult to recognize in day-to-day activities, particularly when leaders receive feedback filtered through hierarchical relationships. This makes the opportunity to examine their reactions in an environment without direct organizational consequences particularly valuable. The purpose is not to receive a label or a score, but to understand how their behavior affects people and the quality of their decisions.

Impact that carries into the next board meeting

An executive development program does not prove its value through the number of concepts presented or the hours spent in training sessions. Its value becomes visible when executives do something differently in their day-to-day work.

When they ask a question, they would not have asked before. When they explore an alternative before rejecting a proposal. When they manage disagreement more effectively or recognize that an initial assumption is no longer valid.

To achieve this, the development experience must respect each senior executive's time and professional level. The situations explored should reflect their actual responsibilities, feedback should address observable behaviors, and exercises should allow them to revisit decisions and test different approaches.

Continuity matters just as much as the initial exercise. An insight into one's leadership style becomes valuable when it leads to a new behavior in a real conversation.

A simulated decision becomes relevant when it prepares a leader for a similar situation within the organization. Furthermore, progress should be measured by what leaders actually apply, not simply by what they say they have learned.

This represents an important shift in perspective: executive development is no longer just about acquiring competencies. It is about creating environments in which leaders can test and improve their ability to lead.

A new approach to executive development

Leaders invest in strategies, technologies, processes, and people. But how much do they invest in the quality of their own thinking? When was the last time they had the opportunity to make a difficult decision in a risk-free environment, face well-founded opposing arguments, and receive feedback that challenged their reasoning?

As the complexity of leadership responsibilities increases, executive development must move beyond conventional training models. Leaders need personalized experiences that combine complex scenario simulations, reflection on their own behaviors, and feedback they can apply directly in their professional activities.

This is why we developed an AI-powered executive development platform focused on practicing managerial decisions and behaviors in simulated environments. Through business simulations, AI-powered boardroom meetings, and personalized feedback, leaders can test their strategic thinking, influencing skills, and leadership style, turning development into a practical experience they can apply directly in their professional roles.

Perhaps the next competitive advantage will not come from having more answers than others have, but from being better able to examine one's own decisions.

This raises a question that companies should consider today: if the people leading an organization have nowhere to test their judgment before making decisions, how prepared is that organization to manage today's complexity and the challenges that lie ahead?

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About Constantin Măgdălina

Constantin Măgdălina has 15 years of professional experience, during which he worked for multinational companies, both in the country and abroad. Constantin has a Master's degree in Marketing and Communication at the Bucharest Academy of Economic Studies. He is LeanSix Sigma and ITIL (IT Information Library®) certified, which facilitates a good understanding of processes and transformations within organizations. On the other hand, the certification obtained from the Chartered Institute of Marketing completes his business expertise. In the more than 4 years of activity within a Big 4 company, he initiated and coordinated studies that analyzed aspects related to the business environment in Romania. Among them are the economic growth forecasts of companies, knowledge management, the buying experience in the era of digital consumers, the use of mobile devices or the customer-centricity of companies in Romania. He is the author of numerous articles on topics related to innovation, streamlining business processes, digital transformation, emerging trends and technologies. He is invited as a speaker at numerous events and business conferences.

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