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Leaders tend to think they're doing a better job than they actually are, and this lack of self-awareness is a major obstacle to navigating a world of hyper-change, says an organisational psychologist.

Self-awareness has become an essential business skill because it sets the upper limit for effectiveness in change management, says Dr Tasha Eurich, who recently presented the World Business Forum Sydney keynote address.

"We're at a point in the journey of the last few years where there's a collective belief and understanding that none of this hyper-change is going anywhere..."