In the fast-paced world of investment management, success is often measured by hard numbers — returns, mandates won, assets under management. But an obsessive focus on hitting targets can lead to goal-induced blindness, where professionals overlook the long-term consequences of their actions. An example of goal-induced blindness that is often cited in psychology literature is the deaths of climbers on Mt. Everest.
From burnout to ethical missteps, the pursuit of short-term wins can come at a steep cost. Just as companies like Wells Fargo and Volkswagen suffered from prioritizing performance metrics over integrity, investment professionals risk making decisions that boost immediate gains while undermining sustainable success. Recognizing the hidden dangers of unchecked ambition is critical for maintaining both professional longevity and ethical leadership in the financial industry.
There are examples everywhere of highly motivated people who are “blinded by the goal” (cue the “Blinded by the Light” tune), from young bankers addicted to Adderall to a women’s soccer team using a drone to spy on their opponent’s practice. Yet, in successful organizations, this topic is almost never discussed. It will be a talking point on my panel at CFA Institute LIVE 2025 in Chicago in May.
In the early years of my career in finance, I worked in the research and trading division at a leading bank. I managed a small team that provided asset allocation advice to large institutional clients. Most of the time, we had to crunch numbers and deliver recommendations quickly because our firm was competing to win the related portfolio reallocation mandates. We had clear goals for growing our activities. We counted the studies, the recommendations, and the wins/losses of trading mandates. We covered the globe. Hundreds of studies every year. It was fast-paced, and I loved it.
But I developed goal-induced blindness. I wasn’t taking care of myself. I was traveling non-stop, and wasn’t getting enough sleep. Most of the time, upon waking up, I needed a few minutes to remind myself which time zone I was in. If a salesperson asked me to fly to Japan for a presentation with one or two days’ notice, I was happy to rise to the occasion. It made me feel important. I spent most of my time on the road while remotely managing the rest of the team via BlackBerry (remember those?).
At some point, I developed a head cold that lasted a year. I was stressed and exhausted. It took me a while, but I eventually realized that my frenetic work ethic was dumb. Just plain dumb. Lack of sleep weakened my immune system and made me less productive. I recommend Matt Walker’s book Why We Sleep on the adverse effects of lack of sleep.
I have often noticed high performers who aren’t maximizing their potential because they focus on a narrow set of measurable goals at the expense of their long-term wellbeing. Most of the time, it’s not full goal-induced blindness, but it’s a blind spot.
Companies can also suffer from goal-induced blindness. Think of Wells Fargo employees opening dummy accounts, presumably to increase the measurable goal related to the number of new accounts opened. Or Volkswagen cheating their carbon dioxide emissions numbers. Or trading and investment firms taking too much risk to juice short-term returns. Examples abound.
One of the most powerful aspects of the psychology of leadership, borrowed from economics, is that people respond to incentives.
You should encourage your team to strive toward ambitious goals and, by all means, attach incentives to them. However, you should insist on two non-negotiable rules.
No one should ever compromise their well-being. In the long run, a mentally and physically healthy team will crush any overworked competition. Many young bankers are addicted to Adderall, reports the Wall Street Journal. This may boost their short-term productivity, but it’s a path that almost certainly leads to negative long-term outcomes.
Make it crystal clear that everyone should stay miles away from any ethical grey zone. Just ask the Canadian women’s soccer team. From The New York Times:
Canada’s women’s soccer team entered the Olympics as the reigning gold medalist and the No. 8 team in the world. Yet its Paris Games began with an accusation of spying on New Zealand, a team ranked 28th that has won only two Olympic matches in its history. Soccer’s world governing body FIFA then handed Canada coach Bev Priestman a one-year suspension, deducted six points from the team’s Olympic group-stage total and issued a fine. Canada’s appeal against the points deduction was unsuccessful.
Ambition fuels success. It pushes individuals and teams to achieve extraordinary outcomes. However, too many organizations forget that the relentless pursuit of measurable goals can lead to burnout and ethical missteps.
Without perspective, ambition narrows our focus, making us blind to warning signs. The fallout can be severe: strained relationships, damaged reputations, and even the collapse of organizations.
Ask the critical questions: Is this goal worth the cost? Are we achieving it in a way that aligns with our values? What is the impact on our well-being and the well-being of those around us? When ambition is guided by perspective, it transforms from a risky obsession into a force for success.
Key Takeaways
Ambition is a powerful driver of success, but without perspective, it can become a liability. Whether in finance, sports, or corporate leadership, goal-induced blindness can lead to ethical compromises, burnout, and short-sighted decision-making. True leadership requires balancing ambition with awareness—ensuring that the pursuit of success does not come at the cost of well-being, integrity, or long-term sustainability. By fostering a culture that prioritizes ethical decision-making and personal health, individuals and organizations can achieve not just short-term wins, but lasting, meaningful success.
Sébastien Page, CFA, is the author of The Psychology of Leadership.
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Sources:
Saeedy, Alexander. Dec. 14, 2024. “The Drugs Young Bankers Use to Get Through the Day—and Night.” Wall Street Journal.
Puleo, M. and Linehan, M. July 31, 2024. “Canada’s Olympic soccer spying scandal explained: What we know, who’s involved and what’s next.” The New York Times.
