Why decisions fail paul nutt
His book offers the story behind the story of EuroDisney , the Firestone tire recall, the Denver International Airport , Quaker's acquisition of Snapple , Shell 's disposal of the Brent Spar oil platform , and many other equally devastating decision debacles.
The garden-variety failures made at organizations every day - including several examined in the book -- were found to have the same features as the debacles, except the notoriety. Nutt's book identifies the three deadly blunders that led to failed decisions and debacles. The rush to judgment blunder crops up when managers identify a concern and latch upon the first remedy that they come across.
Managers seem to believe that concerns and solutions come in pairs. They fear the threat of an unresolved concern -- with good reason as higher-ups are quick to question them and pressure them for an answer," Nutt said. However, Nutt found that failure is four times more likely when decision makers embrace the first idea they come across without taking the time to investigate what is motivating action and possible remedies.
The second blunder -- misuse of resources - occurs when managers spend their time and money during decision making on the wrong things, he said. For example, decision makers may spend millions of dollars to defend a hastily selected idea with an evaluation and little or nothing on other aspects of decision making, such as gathering intelligence about the concerns prompting action, finding who may block action, setting expectations, and uncovering actions that can meet their expectations.
The third blunder is applying failure-prone tactics to make decisions. Nutt found that two-thirds of all decisions are based on failure-prone tactics and success will increased by as much as 50 percent when better tactics are used. For example, most managers are aware of the importance of getting others to participate in the decision-making process.
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