June 22, 2009

Everyone Buys In To A Bad Decision

This IBM story could be indicative of several influences that affect bad decisions being made. The buy-in for IBM was necessary for them to make such a monumental decision and move forward. I think the same influences are affecting decisions being made about bailouts in our government today.

There are several possible influences. First off is the sense of needing to do something. For IBM, they were on the verge of major changes coming in the computer industry and the pressure to be first with the new technology had to be incredible. The same with the bailouts. When everything seems to be falling apart and people are looking to the government for answers the pressure is overbearing. Next is the feeling, for both companies, that doing nothing is not an option. Even if what they do ends up not working the choice of doing nothing will not work because their stakeholders will not accept it. Lastly, the excitement of the situation can cause a decision to be made without fully researching and analyzing the decision.

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