

“The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.” – F. Scott Fitzgerald
In the upper levels of organizational leadership, a curious paradox emerges. This paradox takes the form of executive leaders who are expected to have clarity and certainty even in the most unclear and uncertain times. Early in their careers, young leaders often confront concrete problems with clear solutions. However, as they climb the leadership ladder, these problems evolve into more abstract, interconnected, and ambiguous challenges. Once leaders reach the rarefied air of senior executives, they face heightened expectations from boards, investors, and other stakeholders to project certainty during times when genuine certainty may not always be attainable. This situation creates a fundamental tension that every senior leader must learn to navigate; an ambiguity paradox that significantly influences situational and strategic judgment and decision-making for their organizations.
This paradox becomes even more intriguing when we consider cognitive capabilities as leaders progress in their careers. By examining two primary forms of intelligence—fluid intelligence and crystallized intelligence—we gain valuable insights into how to help executive leaders navigate this apparent paradox effectively. Generally speaking, fluid intelligence pertains to our ability to think abstractly, flexibly, reason through novel problems, and identify patterns in unfamiliar contexts. In contrast, crystallized intelligence reflects our accumulated knowledge and skills gained through experience, which can be recalled and applied. Our ability to recognize patterns when using crystallized intelligence is knowledge-based; it depends on familiarity with specific contexts. While people constantly use both forms of intelligence, collectively referred to as “general intelligence,” research indicates that fluid intelligence tends to decline throughout adulthood, while crystallized intelligence continues to develop.
This cognitive evolution presents both opportunities and challenges for senior executives. Their extensive experience enables them to recognize patterns and tap into a vast repository of knowledge when making decisions. Additionally, these leaders develop sophisticated mental models, which help bring clarity during ambiguous situations. Their expertise also aids in distinguishing “signal” from “noise” in complex scenarios. However, this same wealth of experience can foster a false sense of certainty, leading to the identification of patterns in contexts where historical precedents may no longer apply. Similarly, mental models that do not tightly align with the current context can increase the risk of errors in judgment and decision-making, posing risks for both the leaders and their organizations.
So how can executives balance fully leveraging their broad and deep experience while remaining nimble enough to flex and adapt with prior models no longer applied? Finding this balance is the key to navigating this ambiguity paradox.
Practical Suggestions for Navigating the Ambiguity Paradox
- Embrace Strategic Reflection
- Allocate dedicated time for deep thinking away from day-to-day operations and distractions.
- Regularly assess which patterns or mental models remain relevant and which may no longer align with the current operational landscape.
- Structure time to challenge your own assumptions and mental models, avoiding judgment constrained by outdated heuristic thinking.
- Engage an external partner to help you critically analyze assumptions and mental models to which you may be blind.
- Cultivate Intellectual Humility
- Explicitly acknowledge uncertainty in private strategic discussions; remember, the goal is not to eliminate uncertainty.
- Frame decisions as hypotheses to be tested rather than absolute truths, grounding hypotheses in established knowledge while remaining open to new insights.
- Model comfort with the phrase, “I don’t know yet,” in appropriate settings.
- Create safe spaces for trusted advisors to challenge your thinking and for you to reciprocate.
- Balance Pattern Recognition with Novel Thinking
- Actively seek perspectives from different industries and disciplines; leverage analogs when applicable.
- Engage with younger leaders who may perceive patterns differently.
- Form diverse advisory groups that blend experience with fresh perspectives.
- Utilize structured approaches to examine problems from multiple angles.
- Develop Two-Track Communication
- With boards and senior teams, openly discuss uncertainties and explore various scenarios, as avoiding these discussions risks undermining your perceived grasp of the situation.
- With the broader organization, translate this complexity into clear guidance while maintaining the flexibility to adapt as needed.
- Master the art of communicating confidence in your approach while transparently acknowledging the role of learning throughout the process and the commitment of your team to pivot as necessary.
- Build Organizational Capability
- Create systems to adapt to changing circumstances effectively.
- Develop leadership teams comfortable with ambiguity.
- Install feedback mechanisms that quickly surface when historical patterns no longer apply.
- Conduct regular after-action reviews to validate assumptions and models based on actual experience while capturing learnings and new models to leverage going forward.
The most successful senior executives are those who embrace this paradox: leveraging their crystallized intelligence to identify patterns while maintaining enough fluid intelligence to recognize when to question those patterns. They understand when and how to remain open to new information, holding multiple, competing possibilities in mind simultaneously. The ability to hold various competing possibilities in mind while still moving forward with a clear direction is perhaps the most crucial skill for modern senior executives. It requires developing comfort with ambiguity while providing the clarity their organizations need. The goal is not to eliminate uncertainty but to learn how to operate effectively within it.
