Freud argued that analogy is the weakest form of reasoning. In
this paper, we take the extreme counterview, not only arguing that
analogy is a powerful form of reasoning, but that it is a key tool
by which leaders motivate others, solve problems, and learn from
experience. We base our assertion on scientific investigations of
how human thought and behavior is influenced by analogies, all the
way from the classroom to the boardroom. Behavioral scientists
have long recognized the importance of analogical reasoning.
Psychologist William James (1890) noted that “a native talent for
perceiving analogies is… the leading fact in genius of every
order” (p. 530) and Spearman (1923) claimed that all intellectual
acts involve analogical reasoning. In this paper, we argue that
leaders use analogies to lead and influence people. Some leaders
use analogy deliberately and consciously; but many are unaware of
their use of analogy. We discuss the effects that analogies have
on reasoning and decision-making. We provide scientific evidence
of how managers and leaders reason analogically (and where the
stumbling blocks are). We also provide our own analysis of Fortune
100 leaders’ use of analogies.
