Make Better Strategic Decisions : How to Develop Robust Decision-Making to Avoid Organisational Disasters / Jeremy N. White.

Format:

Book

Author/Creator:

White, Jeremy N., author.

Language:

English

Subjects (All):

Carillion (Firm).

Strategic planning.

Decision making.

Problem solving.

Physical Description:

1 online resource (201 pages)

Edition:

First edition.

Place of Publication:

Abingdon, England : Routledge, [2024]

Summary:

"Every day we hear of serious errors of judgment that result in organisational disaster. Why do seemingly successful businesses, NGOs, or even political parties fall prey to irrevocable governance breakdowns or, worse still, criminal malpractice? By prompting readers to think deeply about strategic decision-making, human behaviour, and cognitive biases, this book offers a disciplined, objective, and thoughtful approach for making better decisions. Every strategic problem is fundamentally a journey into the unknown which involves a unique combination of duration, scale, external and internal dynamics, and personal motivations. Rarely is a strategic decision solved by, 'If a situation is A, then the solution is B.' The book explores how to develop a strong foundation for problem resolving - rather than simplistic problem-solving - by strengthening competence so that decisions are made wisely. The case of Carillion plc, the second largest construction group in the UK that went bankrupt in January 2018, is used to explore how a large and profitable company collapsed so dramatically when it was run by an experienced board and advised by three of the Big Four accounting firms. Professor Jeremy N. White presents a clear strategic toolkit for better strategic decision-making. This book will appeal to senior managers who are interested in techniques for making better strategic decisions. The lessons from the failure of Carillion plc are applicable to corporate leaders in addition to politicians and those who run not-for-profit organisations"-- Provided by publisher.

Contents:

Cover

Half Title

Endorsements

Title

Copyright

Dedication

Contents

Preface

Introduction

1 Core Questions

Strategy

What Do We Mean by Strategy?

Do We Need an Organisational Strategy?

Why Is Strategy So Challenging?

2 Strategic Thinking

The Rational Model Towards a Behavioural Approach

The Traditional Approach to Strategy Development

Limitations of the Traditional Approach to Strategy

Fundamental Uncertainty

Paradoxical Thinking

Paradox and Leadership

Impediments to Rational Thinking

Introduction to Behavioural Economics

Behaviourists: Richard Thaler and Others

3 Carillion plc

The Construction Sector

Carillion plc

Collapse

The Collapse and Broad Business Issues

Carillion Business Strategy

Growth Through Acquisition

Dividends

Market Capitalisation and Profit Warnings

Cabinet Office Evaluation of Risk

Profit Warning

Who Knew and Who Was Shorting the Stock

The Pension Deficit

Carillion Board, Corporate Governance, and Executive Responsibility

Richard Howson, Carillion CEO 2012-2017

Richard Adam, Carillion CFO 2007-2016

Philip Green, Carillion Chairman 2014-2018

Keith Cochrane, Interim CEO July 2017

The Consultant's Report, Strategic Issues, and Risk for Carillion

4 Behavioural Management

Information Bottlenecks

The Behavioural Model

Case for the Behavioural Model

Cognitive Biases

Here Are a Few More Common Biases

Carillion and Behavioural Dynamics

Corporate Culture

Decision-making and Biases - Five Findings From Psychology

Carillion - Hubris and More

A Deeper Consideration of Bounded Rationality

Heuristics

Behavioural Factors - A Few Additional Points

5 Risk

Risk and Bernoulli

Risking Other People's Money

Asymmetric Risk

Risk and a Few More Thoughts

6 Strategy as Paradox.

Traditional Versus Paradoxical Thinking

The Innovation Paradox

How to Address Paradoxical Problems

7 Moral and Ethical Issues

Impact of an Unethical Culture

The Nolan Principles 1995

Bystander Inaction

8 Corporate Governance

Responsibilities of Directors

Carillion and the Auditors

Carillion and the Fallout for Auditors and Directors

Legal Governance and Political Pressure

9 Strategic Toolkit

Problem Solving and Puzzles Versus Mysteries

Big Picture Audit

Auditing the Organisation's Culture

Warning Signs

Decision-making Models

Gary Klein on Decision-making

Rational Thinking Process

Dealing With Thinking and Reasoning Errors

Importance of Narrative

Decision Analysis Models

Herbert Simon and Administrative Behaviour

Stacy Landscape Model

Risk and Signal Detection Theory With Type 1 and Type 2 Errors

Kahneman's Decision Models

Group Decision-making

Impact of Decision and Scale of Risk

Decision-making Summary

10 Strategic Toolkit: Additional Perspectives

Reflections

Innovation

Artificial Intelligence and Noise

Rewards and Motivation

Corporate Strategic Issues and Social Responsibility

Justice and Fairness

Challenges of Strategy

Five Laws of Behaviour

Communicating and Implementing

Resistance to Change

The Role of Behavioural Psychology

Leadership

Craftsmanship and Managing Yourself

Closing Thoughts

Appendix: Behavioural Bias Checklist

Bibliography

About the Author

Index.

Notes:

Includes bibliographical references and index.

Description based on print version record.

Other Format:

Print version: White, Jeremy N. Make Better Strategic Decisions

ISBN:

9781003457398

1003457398

9781003822943

1003822940

9781003822882

1003822886

OCLC:

1391969426