Like anyone else, leaders are capable of acting irrationally. This lecture shows that there is a rationale behind irrationality that needs to be acknowledged and dealt with. Many well-intentioned and well thought-out plans derail in organisations around the world because of the unconscious forces that influence our behaviour. This lecture delves into the types of irrational behaviour of executives and how to identify and manage them. It focuses on the value of keen observation and emotional intelligence as a part of the executive skill set. Emotionally intelligent people are better equipped to manage irrational behaviours and are likely to be more effective as leaders.