Join Mike Figliuolo for an in-depth discussion in this video M&A, part of Executive Decision Making.
- In this chapter, I'll offer several examples of executive decisions that were made, and how the principles were or were not followed as well as the result of those decisions. The first example is a product based company that conducted an acquisition. They purchased a retail chain, as well as an online channel. They spent tens of millions of dollars purchasing this business. The initial premise for making the acquisition was they were going to push their existing products through the new retail chain and the new online channel.
There were two issues with this decision. First, poor data was used to make the case for the acquisition. There was no real understanding of what the key metrics were of this new business, nor were there adequate monitoring plans in place to monitor those metrics after the purchase was completed. The second issue was, strategic considerations weren't adequately considered. Competitors hit the core business after the acquisition was done.
This attack distracted the company from the acquisition, and they didn't integrate that acquisition well. The outcome of this poor decision making was, first, the business was eventually closed. They had spent tens of millions of dollars, only to close it down after a couple of years. The second outcome was, no one was held accountable for this purchase and its corresponding failure. The long term impact of that was it eroded organizational trust in future acquisitions being successful.
The principles that were violated during this executive decision were they didn't pay attention to the quality of the data, they didn't think through the strategic implications, and they didn't drive accountability for the actual decision.
Mike helps you find the data and tools to support your decision, make the call, communicate decisions effectively, and lead your organization through the change. He'll also address common problems that arise from these high-profile decisions: cultural differences, quality of information, trust, and accountability, to name a few.
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- Assessing risks
- Making hard choices
- Getting the right data
- Communicating effectively
- Making the call
- Declaring success
- Dealing with problems