With a decrease in shareholder value from the previous rollover our group went from second position to last in our world. At first it was hard to believe that little mistakes could affect our shareholder value in that way.
However, after reading “ Flying Blind ?” by Smit & Vigurie ( 2009) I felt that some of the strategy’s that were highlighted was applicable with our groups decisions this week.
Smit & Vigurie (2009) briefly mentioned the benefits of managing businesses towards a granular approach – this was done by senior management overlooking the company’s activities across all levels, getting a more detailed view of which areas could use improvement.
Drawing back on our group -- I personally felt that we used successfully used the ‘granular approach’. Our CEO had gone over the spreadsheets which gave him an insight of which department needed assistance and resources.
“Resource reallocation must be derived from insights about where growth pockets will be, not where they are now “ after some careful considerations we discovered the market potential for R&D allocating the new resources into current bike models instead of launching a new segment, and to our surprise paid off with an increase in shareholder value.
Overall, I felt that this week’s results were in favor of Daudelin’s (1996) reading. “Reflection is the process of stepping back from an experience to ponder, carefully and persistently its meaning to the self through the development of inferences is the creation of meaning from past or current events that serves as a guide for future behavior”. We as a team reflected on the problem (shareholder-value) where we stood back, and took the time to reflect and allocate resources in the right department as a result we topped our world this week.
Daudelin, M. W. (1996). Learning from experience through reflection. Organizational Dynamics, 24(3), 36–48
Baghai, M., Smit, S., & Viguerie, P. (2009). Is your growth strategy flying blind? Harvard Business Review, 87(5), 86-96.