Denial Is Our Biggest Enemy

evaluate the potential profitability of the new venture. As a normal part of the business plan procedure, three business cases were analyzed: the most probable case, a potential upside case, and a potential downside case. This is all consistent with good business practice. But then, the general manager, when presenting the business plan to the board, said, "Here is the most likely scenario, a potential upside and a potential downside. However, we can ignore the downside case because it will never happen."

The company went ahead with the new venture (assuming that it couldn't lose), as the most likely and upside scenarios predicted a reasonable profit in a reasonable amount of time. Needless to say, the downside did materialize and the venture failed within two years.

Corporate Domination Tactics

Corporate Domination Tactics

Learning About Corporate Domination Tactics Can Have Amazing Benefits For Your Life And Success! Own The Corporate World And Be Your Own Man! Huge businesses like Wal-Mart have demonstrated to us all the mightiness of a corporation, now you as well may harness that might.

Get My Free Ebook

Post a comment