Why Leaders Deny Facts — And What to Do About It

by Joy Maitland | May 25, 2025 | Board Members, Board Trustees, CEO, CFO, COO, CIO, General Managers, Heads of Divisions

Why Leaders Deny Facts — And What to Do About It

The Psychology Behind Strategic Blind Spots in Senior Decision-Making

In boardrooms, strategy sessions, and executive off-sites, a familiar pattern often emerges. Leaders ask for data, assess options, and demand analysis. Yet when the facts challenge deeply held assumptions or preferred outcomes, something subtle—but powerful—can happen.

– The facts get side-lined.
– The challenge gets dismissed.
– The truth gets buried.

This is not about ignorance or bad intentions. In fact, the most seasoned professionals—those with reputations to protect and legacies to defend—are often the most susceptible to motivated reasoning. This psychological tendency leads people to unconsciously filter information in ways that protect their identity, beliefs, or past decisions.

Understanding why this happens is not just an academic exercise. It’s a leadership imperative for anyone navigating disruption, innovation, or high-stakes decisions.

What Psychology Reveals: Three Experiments Every Leader Should Know

1. Motivated Reasoning in High-Stakes Environments

Research consistently shows that people are more likely to accept information that supports what they already believe—and to reject or scrutinise data that contradicts it. This pattern intensifies when:

• Professional reputation is on the line

• The decision is politically sensitive or emotionally loaded

• The new information threatens an existing narrative

In one study, participants received balanced evidence on a controversial issue. Their conclusions differed dramatically—not because of the data, but because of what they already believed.

Leadership takeaway: Even in data-driven cultures, bias can masquerade as alignment. Leaders must question whether their objectivity is as robust as it appears.

2. The Backfire Effect: When Facts Reinforce False Beliefs

Another study attempted to correct factual misconceptions with evidence-based briefings. Surprisingly, those with higher education levels didn’t change their minds—they became even more entrenched in their original views.

This is known as the backfire effect: when facts not only fail to persuade but reinforce the falsehoods they aim to correct.

Leadership takeaway: Better data doesn’t always lead to better decisions. The urge to be “right” often outweighs the willingness to rethink.

3. The “Pay-to-Avoid” Experiment

Perhaps the most revealing experiment asked participants whether they’d prefer to read an article with an opposing viewpoint—or pay a small fee to avoid it. Many chose to pay, even when the article was balanced and respectful.

Leadership takeaway: If people avoid intellectual discomfort in a lab setting, imagine the avoidance behaviours that might surface in the boardroom—where hierarchy, politics, and performance pressures come into play.

Where Fact-Denial Shows Up in the C-Suite

When leaders ignore inconvenient truths, the ripple effects extend beyond individual decisions—they shape organisational culture. Here’s how fact-denial manifests at the senior level:

• Confirmation bias in forecasting: favouring data that supports preferred projections
• Groupthink in innovation: rejecting bold or unconventional ideas prematurely
• Suppressed challenge: excluding diverse or junior voices from decision-making
• Narrative inertia: clinging to outdated success stories despite new realities

Unchecked, these behaviours create echo chambers at the top—where truth becomes optional and risk grows silently.

What Effective Leaders Do Differently

Recognising bias is not enough. Leaders must actively design teams, processes, and systems that invite facts, encourage challenge, and reward intellectual honesty.

1. Normalise Cognitive Dissonance: Encourage teams to see discomfort as a sign of growth. When people feel safe admitting uncertainty, they become more curious and less defensive.

2. Use Structured Dissent: Assign formal roles such as devil’s advocate or run pre-mortem sessions. These mechanisms depersonalise dissent and legitimise critical thinking.

3. Separate Identity from Ideas: Promote the idea that changing one’s mind is a strength, not a weakness. Leaders who model this set the tone for open, adaptive thinking.

4. Slow Down the ‘Snap Yes’: Add cognitive speed bumps to big decisions. Ask: What assumptions are we making? What might we be missing? Who gains if we’re wrong?

5. Reward Truth-Seekers: Recognise those who challenge consensus respectfully, raise red flags early, or bring forward uncomfortable insights. These individuals make your business more resilient.

Final Thought: Resilient Leaders Embrace Discomfort

Leaders aren’t just decision-makers—they’re narrative-shapers. They influence not just what organisations do, but what they believe.

When leadership teams sanitise uncomfortable truths in favour of harmony, they trade clarity for comfort. Over time, that comfort becomes dangerous.

The future belongs to leaders who seek challenge over cheerleading, clarity over certainty, and truth over tribalism. Not because it’s easy, but because the cost of denial is too high to ignore.

The best leaders don’t fear facts. They create cultures that welcome them.

The Right Conversation Can Change Everything. Let’s Talk.