This week our team made a huge decision, we did a takeover to create what peter has labelled as a maga-firm. This week’s decision involved an incredible amount of analysis, determining which of the firms were best to take over. This is where I am feeling the problem lay for this week. We did extreme amounts of analysis into which of the firms to take over, but we never stopped to decide whether a takeover was a good idea at this stage at all. We had planned for the last few roll over’s to orientate ourselves towards having the resources available to do a takeover, and we all launched into who we would take over this roll over, rather than first analysing if we could or should do a takeover, and what the potential effects of the takeover would be. Needless to say when the roll over occurred and we looked at the results, we were shocked at how out SHV had plummeted. I personally thought there was something wrong with how I had opened the application, was I in the single player on accident? How was it possible for the SHV to drop by over 50%? Sure enough, when checking again, that is what had happened. Looking back at the process we took, we had depth of analysis, however we didn’t have breadth. It is suggested by Davenport (2006) that both breadth and depth are required for decisions, which is where the problem lay for us. We did a huge amount analysis into our competitors, considering where they were in the market and where their potential lay for a takeover. We didn’t do any analysis to decide if now was a good time to do the takeover, instead our analysis was based on who we should take over. This means that our analysis had depth in who to take over, however lacked breadth in terms of considering the whole decision. In trying to understand this problem more, the reason for this lack of depth can potentially be attributed to not having 2 members of our team present at the meeting this week. This is most likely part of the problem as having more people present means that more thoughts are raised and both more breadth and depth can be achieved. This would result in more breadth which we seem to have lacked this week. In terms of going forward, our team will need to make an effort to make sure we have more breadth in our analysis and consider more areas when making decisions.
Davenport, T. H. (2006). COMPETING ON ANALYTICS. Harvard Business Review, 84(1), 98-107.