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Executive Interviews: Q&A with Bettina Büchel on Decision Making
May 2008
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By Dr. Nagendra V Chowdary
Bettina Büchel Professor of Strategy and Organization at International Institute for Management Development (IMD) located in Lansanne, Switzerland. 
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Events in business never proceed
exactly as planned. Such intangibles
as friction, uncertainty, fluidity and
disorder complicate decision making.
What is the cost of poor decisions?
How to avoid strategic errors in
decisions?
Given that many strategic initiatives
have both a high degree of market
uncertainty, specifically if we are
talking about bringing a new product
to market and a high degree of
organizational uncertainty as
stakeholders within the organization
are not always happy to accept the
next new practice such as a shared
service platform, implementation
might have to take an approach of test
first before you roll out'.
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This is frequently done in the form of a pilot,
an experimental undertaking prior to
full-scale operation or use. -
Brutal competition, ethical strife,
unanticipated changes in
marketplace, technological shifts, and
a lingering recession can leave a
company worn-out. Accordingly,
many have advocated combat
philosophy, also known as maneuver
warfare, as it emphasizes action in the
midst of uncertainty. What lessons, if
any, should corporate leaders pick up
from warfare as regards business
decisions? For instance, the use of
speed, surprise and concentrated
force against an opponent's weakness
to achieve maximum impact with a
minimum resource commitment in
the presence of strategic uncertainty
and hostile intent, etc., are some of
the critical elements in maneuver
warfare. Should business decision
makers adopt these elements?
The scaling up of strategic initiatives
requires substantial investment of
resources' so management needs to
evaluate the strategic context, validate
the opportunity and assess the extent
towhich cash reserves are available in
case the scaled up initiative fails.
Options create value by generating
future decision rights and minimize
the amount of initial investment and
downside risk, and at the same time
provide an opportunity for learning. -
How important are counselors,
advisors and mentors in making
strategic decisions?
Strong facilitators (not consultants)
enable the group to reflect more
deeply on more complex issues by
maintaining group effectiveness and
engagement in the face of conflict,
uncertainty and complexity.
Facilitation is about engaging groups
to develop shared solutions to
problems. Skilled and competent
facilitators expect not only to support
the meeting process but also to be
actively involved in your change
initiative before and after events.
When hiring facilitators consider
their previous facilitation experience
and their knowledge of the subject
area under discussion. The subject
area is important as the facilitator will
have to be able to select and use
analysis tools appropriate to the
group task. For example, a facilitator
experienced exclusively in
manufacturing process redesign
might lack the tools to assist a group
working to develop growth
alternatives. Equally important is the
facilitator's experience in engaging
with stakeholders prior to the event
and managing conflict within the
group during the event.
1.
Decision Making Case Study
2. ICMR
Case Collection
3.
Case Study Volumes
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The Interview was conducted by Dr. Nagendra V Chowdary, Consulting Editor, Effective
Executive and Dean, IBSCDC, Hyderabad. This Interview was originally published in Effective Executive, IUP, May 2008. Copyright © May 2008, IBSCDC
No part of this publication may be copied, reproduced or distributed, stored in a retrieval
system, used in a spreadsheet, or transmitted in any form or medium – electronic,
mechanical, photocopying, recording, or otherwise – without the permission of IBSCDC. |
