The hidden role of the ego in business decisions

If you are a manager or founder of a business, you know that a good decision can propel your business while a bad one can weaken it. We often talk about strategy, data analysis, return on investment… but a less visible factor influences almost all your decisions: your ego. Yes, this silent guest, sometimes charming, sometimes tyrannical, plays a role in the success or failure of a business.

The ego, this invisible companion

Ego, in the business context, is not simply vanity or pride. It is about the perception we have of ourselves, our legitimacy, our value as a leader. It pushes us to make certain decisions to protect this image or strengthen it.

Imagine a founder who refuses a strategic partnership because “I’m not the one who’s going to comply with their conditions”. Or a leader who insists on expensive technology, not because it’s better, but because he wants to demonstrate that he was right all along. In both cases, ego took the wheel, often to the detriment of the company.

When the ego becomes a brake

1/ The ego and fear of failure

One of the most common manifestations of the ego is the fear of failure. Leaders want to be seen as competent and infallible. This fear sometimes pushes them to make conservative decisions or reject innovative ideas simply because they involve risk.

But innovation, by definition, involves stepping out of your comfort zone. The most successful companies — Amazon, Tesla, Netflix — have all experienced resounding failures. These leaders understand that protecting one’s ego at the expense of learning can cost much more than temporarily risking one’s reputation.

2/ The ego and the illusion of control

The ego loves to believe that it controls everything. In business, this often results in micro-management, a resistance to delegating or an obsession with operational details to the detriment of the strategic vision.

A leader who thinks he must see everything, decide everything and validate everything ends up slowing down his team, stifling creativity and, paradoxically, reducing his own impact. The ego convinces him that he is indispensable when his true strength should be in creating a system capable of thriving without him in every decision.

3/ The ego and defensive decisions

Sometimes decisions are driven by fear of losing face rather than real value to the company. Refusing a potentially profitable acquisition because “I wasn’t the one who suggested it”, or ignoring critical feedback under the pretext that “I know better” are typical examples.

The ego turns the decision-making process into theater: it is less about succeeding and more about proving that you are right. And unfortunately, in business, proving you’re right doesn’t always bring in revenue.

How the ego can become an ally

Yes, the ego can also be a driving force for success, provided you understand it and channel it.

  1. Motivation and ambition: The ego can push you to achieve excellence, to want to impact the market and to surpass yourself. The important thing is that this ambition serves the company and not just the personal image.
  2. Resilience in the face of criticism: A healthy ego can protect against discouragement. A leader with a balanced ego knows that criticism is not a personal attack but an opportunity for improvement.
  3. Ability to take calculated risks: A well-managed ego allows you to defend your ideas without being rigid, to dare to launch daring projects while remaining open to feedback.

So the key is self-awareness. Understand that ego exists, identify when it influences your decisions and adjust your focus before it sabotages the business.

Warning signs: recognizing the ego in your decisions

  1. Impulsive decisions based on emotions: The ego loves impulses that “prove something”. If you notice that your recent decisions were motivated by anger, frustration, or the need for recognition, chances are ego is behind it.
  2. Systematic refusal of feedback: If you tend to dismiss opinions that contradict your vision without examining them, your ego speaks louder than your reason.
  3. Excessive attachment to past successes: Relying on past victories to justify all your current decisions is a classic of the ego. The world is changing too quickly for yesterday’s success to guarantee tomorrow’s success.
  4. Micro-management: If you have difficulty delegating, trusting or letting your team experiment, the ego pushes you to want to control everything.

Techniques for controlling the ego

1/ Strategic questioning

Before each important decision, ask yourself:

  • Is this decision guided by what is best for the company or by my personal image?
  • Have I listened to all points of view, even those that make me uncomfortable?
  • Does this action risk making me look “better” rather than generating value?

These simple questions help detect ego influence before it becomes a problem.

2/ Create a circle of trust

Surround yourself with people who aren’t afraid to tell you the truth. Mentors, co-founders, trusted managers, or even a professional coach can act as mirrors, reflecting the influence of your ego on your decisions.

3/ The practice of hindsight

Taking a step back is essential. Even a major strategic decision deserves time for reflection. Taking a few hours, or even a few days, to analyze the decision from an objective angle often helps reduce the impact of the ego.

4/ Structured feedback

Establish mechanisms where ideas can be challenged constructively. For example, a meeting where the team explores all the flaws in a project without personal judgment can reveal ego bias.

5/ Accept failure as learning

The ego fears failure, but an effective leader accepts it as an integral part of business. Each failure is a lesson, not a personal challenge. This posture transforms the brake ego into a learning engine.

Ego and corporate culture

The influence of the ego is not limited to the leader. It impacts the entire corporate culture. A team where ego dominates risks suffering from internal competition, refusal to collaborate and resistance to change.

On the contrary, an ego-aware leader fosters a culture of trust, transparency and collaboration. Decisions become less personal, more rational and oriented towards long-term value.