What is a Mad Hatter?

In the business world, a mad hatter is a leader, usually a CEO, who makes unusual or impulsive decisions.

How Does a Mad Hatter Work?

In Lewis Carroll's book Alice's Adventures in Wonderland, the main character, Alice, meets the Mad Hatter. The Mad Hatter enjoys frustrating Alice, and asks her riddles that, in turns out, he doesn't know the answers to. He engages Alice in pointless conversations and is a symbol of Wonderland's arbitrary and nonsensical sense of order. As Carroll writes: 'Alice felt dreadfully puzzled. The Hatter's remark seemed to have no sort of meaning in it, and yet it was certainly English.'

Why Does a Mad Hatter Matter?

In the business world, mad hatters are very frustrating to work for. They often make capricious decisions that make little or no sense, leaving employees and stakeholders puzzled. Sometimes the decisions are for personal gain, though other times they are simply bad decisions.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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