The new disciplines of behavioral finance and economics reveal that most of our decisions are skewed towards adverse outcomes because of our cognitive biases which are usually unconscious. These biases are powerful even if we are smart and well-educated. Modern leadership theory assumes that well-educated leaders with good access to information will make good decisions. These disciplines suggest that most of our decisions will be seriously flawed. Leadership development approaches need to catch up with these new findings. See Peking Business Review July 2012