Managing Through Rose-Colored Glasses Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

It is common for executives to seek significant correlations within their business - for example, to find the most direct drivers of profitability. However, managers often strain, overstating a relationship that, at best, a minor or non-existent. In support of this view, the authors, who are consultants in the field of customer loyalty, to bring its latest investigation into the general concept of customer loyalty (ie, "It costs more to acquire a customer than to retain the client"), many of which proved to be unfounded. In general, according to the authors, professional managers too willing to suspend disbelief about the cause-and-effect relationships. They allow prejudice to specific business results to shape their interpretation of cause and effect. The authors refer to this phenomenon as the management of teleology. Tendency to hold onto the most useful kind of event, the authors suggest, is not unique to managers. However, when managers to replace the knowledge and beliefs do not recognize the leap, they put your business at risk. New management ideas will always challenge existing practices. But before managers to use new methods of approaching problems, they should demand a high level of analytical rigor. They should develop the habit of questioning the underlying assumptions of their own views and to be open to ideas that come from outside. "Hide
by Timothy L. Keiningham, Terry G. Vavra, Lerzan Aksoy Source: MIT Sloan Management Review 6 pages. Publication Date: 01 Oct 2006. Prod. #: SMR219-PDF-ENG