Are You the HiPPO Killing Your Company's Innovation?

When was the last time someone in your organization challenged your opinion with data—and you listened?

If you can't remember, you might be a HiPPO: the Highest Paid Person whose Opinion overrides evidence, silences dissent, and costs your company millions.

HiPPO stands for "Highest Paid Person's Opinion"

The Business Case Is Brutal

When the HiPPO runs wild in your organization:

• Innovation dies. Your best people stop speaking up.

• Capital burns. Resources fund pet projects, not profitable ones.

• Talent walks. Top performers leave when decisions feel arbitrary.

• Competitors win. While you trust your gut, they trust their data.

The data is clear: teams led by junior managers outperform senior-led teams. Why? People feel safe challenging assumptions and sharing honest feedback.

When Even Bezos Got It Wrong

The Setup: Jeff Bezos, arguably one of the world's most successful entrepreneurs, became obsessed with a 3D phone feature powered by five front-facing cameras.

The Warning Signs: Engineers were blunt: "We poured surreal amounts of money into it. We all thought it had no value for the customer. But the answer was always: 'Because Jeff wants it.'"

The Damage:

• Phone price crashed from $199 to $0.99 in six weeks

• $170M write-down

• $83M in unsold inventory

• Over $500M in operating losses

The Lesson: Track record doesn't trump data. Not even Bezos is immune to the HiPPO effect.

The Company That Got It Right

Google's approach: Make hierarchy irrelevant to decision quality.

Engineers openly disagree with Larry Page. The newest hire's data beats the founder's opinion. Everyone—from intern to CEO—has a responsibility to speak up when they have evidence.

Their guiding principle:

"If we have data, let's look at data. If all we have are opinions, let's go with mine."
— Jim Barksdale, Former Netscape CEO

Translation: Seniority is a tiebreaker when data is absent, not a trump card when evidence exists.

Your Action Plan: Tame the HiPPO

1. Build Your Evidence Arsenal

Create executive dashboards that speak your language: revenue impact, customer retention, market share. Make data impossible to ignore.

2. Change the Language

Replace "I think" with "the data shows." Depersonalize decisions. Make it about evidence, not egos.

3. Pre-Wire Critical Decisions

Never walk into a board meeting cold. Socialize your data-backed insights beforehand. Multiple voices beat one opinion—even yours.

4. Reward Dissent

If you're the senior voice, actively invite challenge. Alfred Sloan, legendary GM leader, wouldn't make decisions until someone articulated why he might be wrong. Make disagreement safe, expected, and rewarded.

5. Test Everything

A/B tests, pilot programs, phased rollouts. Let the market validate opinions—especially senior ones. Data doesn't care about your title.

The Bottom Line

"Without data, you're just another person with an opinion—even if you're the CEO."
Bernard Marr

Your competitive advantage isn't having the smartest executive. It's building a culture where the best evidence wins, regardless of who presents it.

The question isn't whether you can afford to combat the HiPPO effect.

The question is: Can you afford not to?

Sources

• Fast Company (2013). "The Real Story Behind Jeff Bezos's Fire Phone Debacle"

• Schmidt, Eric, and Jonathan Rosenberg. "How Google Works"

• Marr, Bernard (2021). "Data-Driven Decision Making: Beware Of The HIPPO Effect!" bernardmarr.com

• Rotterdam School of Management research on junior vs. senior manager project success rates

• Black Swan Farming. "The HiPPO effect." blackswanfarming.com