José was exhausted. As the new leader of a rapidly growing technology startup, the pressure was immense. Every day brought a new crisis that demanded an immediate solution. There never seemed to be enough hours in the day to truly stop and think things through carefully.
José knew that hasty decisions often led to undesirable consequences in the future. But how could he create space for thoughtful reflection when the demands of the business never subsided?
One night, after yet another meeting, José wondered if there was a better way to handle the situation. He thought of his mentor, who always took the time to consider all sides of an issue before acting. There was a calmness and clarity in his mentor’s leadership that José admired.
The next day, José closed the door to his office and canceled his schedule. For the first time in months, he allowed himself to breathe. As problems and proposed solutions flowed through his mind, José consciously worked to slow down his thinking, to look at the challenges from multiple perspectives.
It was a difficult and slow process. But from that solitude, something rather strange emerged. José realized he could make better decisions that balanced urgency with care for long-term impacts. His leadership, now more measured, changed qualitatively.
What awakened in José? Let’s try to understand it from the perspective of a virtue: prudence.
The ethics of virtue, proposed by Aristotle and further developed by Thomas Aquinas, offers a philosophical framework for decision-making in the field of management, especially through the lens of business ethics. At the heart of this ethics is the virtue of prudence (in Greek, phronesis; in Latin, pro videntia, meaning “he who sees beforehand” or “he who sees ahead”), also translated as practical wisdom. Unlike mere technical skill, prudence is a moral quality that guides individuals to deliberate, judge, and act appropriately in any circumstance, always in pursuit of true good. In management and leadership, prudence is essential, as it provides “the measure,” organizing and directing all other virtues—such as justice, courage, and temperance—in the decision-making process. The prudent leader not only discerns the best options but also executes their decisions efficiently, considering the concrete realities involved in each situation.
In Aristotelian philosophy, prudence is understood as the ability to connect universal principles to particular situations in order to choose the right means to achieve desired ends, in accordance with those principles. In the administrative context, this means that the prudent manager is one who can analyze the reality of their company and the market, weighing the pros and cons of each decision, always based on concrete data and past experiences. Moreover, prudence implies morally correct action that does not aim solely for immediate success or profit at any cost, but rather for the sustainability and well-being of all involved: employees, customers, suppliers, and the community. As the philosopher Josef Pieper mentioned, prudence is the “art of deciding correctly,” and thus, those who master this art can be considered morally mature. However, this mastery is not innate but acquired through experience and the continuous exercise of reflection and deliberation.
The application of the virtue of prudence in management requires a decision-making process that goes through three fundamental stages: deliberating with maturity, deciding with wisdom, and executing with firmness. A prudent leader, when deliberating, carefully considers all aspects of a situation, recognizing their limitations and avoiding hasty decisions. When deciding, they act with simplicity that aligns with moral rectitude, ensuring that their decision is not distorted by passions or petty interests. Finally, when executing, the prudent leader is swift yet diligent, remaining true to what has been deliberated and decided. The challenge lies in transforming the theoretical analysis of reality into concrete action, without losing sight of the common good.
The obstacles to applying prudence in management are diverse and complex, especially in today’s corporate context:
- Pressure for immediate results: In the business world, there is constant pressure for quick results and increasing profits. This can lead leaders to make hasty decisions without due reflection and consideration of long-term consequences.
- Complexity and uncertainty: Organizations operate in increasingly complex and uncertain environments, with multiple variables and stakeholders to consider. This complicates the exercise of prudence, which requires a clear understanding of reality and cause-and-effect relationships.
- Conflict between values and interests: The interests of the organization do not always align with ethical values. The prudent leader must be able to discern true good and resist pressures to compromise principles for short-term gains.
- Lack of time for reflection: The current speed of the work environment leaves little time for the in-depth reflection that prudence requires. Leaders are constantly bombarded with information and demands, making it difficult to create space for mature deliberation.
- Immediate-focused organizational culture: Many organizations have cultures that prioritize quick, decisive action at the expense of careful reflection. This can create pressure to conform and discourage the exercise of prudence.
- Overconfidence: Successful leaders may be tempted to overly trust their own judgment, neglecting the need for humility and seeking advice from others. This can lead to imprudent decisions.
- Risk management: Prudence requires a careful balance between caution and boldness. Leaders may struggle to discern the appropriate level of risk to take in different situations.
Overcoming these challenges requires a conscious commitment to cultivating the virtue of prudence, along with changes in organizational cultures and systems to value and reward ethical and thoughtful decision-making. Prudent leaders need to intentionally create spaces for reflection, actively seek diverse advice, and maintain a clear moral compass to guide their decisions amidst the complexities and pressures of the corporate world.
As a practical tip, cultivating the habit of reflection, dialogue, and consultation with wise and experienced individuals is a sure path to developing prudence. The popular saying “get real” serves as a timely reminder to stay connected to concrete reality, avoiding illusions, rationalizations, or unfounded justifications. In a corporate world often marked by immediacy and pressure for results, having enough time to think before acting and to act promptly and decisively once the correct decision has been made can be the distinguishing factor of truly ethical and effective leadership. In this case, being bold is part of being prudent. *This text is part of an experience with Generative AI. Based on my class notes and lectures, I utilized several AI bots to compose the text, finalized with my own editing.