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I agree that psychology applies to the CEO. I agree that any financial decisions they make must involve psychology. But you are applying the concept of mindset
by sevg 2y ago
I agree that psychology applies to the CEO. I agree that any financial decisions they make must involve psychology.
But you are applying the concept of mindset in a way that goes beyond its definition.
Let's say there are two gardeners. One gardener always prunes his hedge so that it stays the same size. The other gardener lets it grow.
This says nothing about whether the gardeners have fixed mindset or growth mindset, because Carol Dweck's concept of mindset (which is what people are talking about when they talk about "fixed mindset vs growth mindset", the phrase you used in your original comment) has nothing to do with plant growth.
Likewise, "fixed mindset vs growth mindset" also has nothing to do with operational growth. If a CEO decides to cut costs, we cannot deduce that they have a fixed mindset. We also can't deduce that they have a growth mindset. Mindset is not about the action taken, but about psychology/attitude/thinking.
Let's say a startup has negative growth. A fixed mindset CEO might think "I wasn't born to be a CEO" and quit. A growth mindset CEO might think "I can learn from my mistakes. We will try strategy X this year", where X could be cutting costs to extend runway, or it could be to get more funding to spend even more, but the actual strategy is unimportant, since "mindset" has nothing to do with operational growth.