RDM: some very bad decisions II
Another poor decision that is closely related to the marketing aspect that we covered in our presentation is the decision by the owners of M&M's and Mars to not let Steven Spielberg use their product in his famous film "ET The Extra-Terrestrial". By doing so, they missed out on a major marketing coup and instead the universal studios went to a competing candy manufacturer (Hershey's), who benefited significantly from having their product in the then top-grossing movie. Hershey's not only generated publicity but also tripled their sales. I don't know the particular reasons why the mars brothers rejected spielberg's approach, but they would have increased their chances of making the right call if only they had used some of the tools that we covered in RDM.
Other notable bad decisions include: Henry Ford's decision to stick with the Model T and not introducing a new car for years; and Ross Perot's decision to not agree to Bill gates pretty modest demand of 40 million dollars in return for Microsoft.
If nothing else, this indicates the huge importance of making robust decisions in the professional world. I have only used business examples, but it is clear that there are also other life decisions that we can certainly improve by minimizing our biases; by recognizing the presence of uncertainty; and by having a thorough decision-making process with appropriate tools.