Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster

"Over budget, over time, over and over again" appears to be an appropriate slogan for large, complex infrastructure projects. This article explains why cost, benefits, and time forecasts for such projects are systematically over-optimistic in the planning phase. The underlying reasons for forecasting errors are grouped into three categories: delusions or honest mistakes; deceptions or strategic manipulation of information or processes; or bad luck. Delusion and deception have each been addressed in the management literature before, but here they are jointly considered for the first time. They are specifically applied to infrastructure problems in a manner that allows both academics and practitioners to understand and implement the suggested corrective procedures. The article provides a framework for analyzing the relative explanatory power of delusion and deception. It also suggests a simplified framework for analyzing the complex principal-agent relationships that are involved in the approval and construction of large infrastructure projects, which can be used to improve forecasts. Finally, the article illustrates reference class forecasting, an outside view de-biasing technique that has proven successful in overcoming both delusion and deception in private and public investment decisions.

Authors :: Bent Flyvbjerg, Massimo Garbuio, Dan Lovallo

Topics :: Organizational Development

Tags :: International business, Strategic planning, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster" written by Bent Flyvbjerg, Massimo Garbuio, Dan Lovallo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Delusion Deception facing as an external strategic factors. Some of the topics covered in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster case study are - Strategic Management Strategies, International business, Strategic planning and Organizational Development.

Some of the macro environment factors that can be used to understand the Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster casestudy better are - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, increasing commodity prices, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, wage bills are increasing, increasing transportation and logistics costs, geopolitical disruptions, etc

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Introduction to SWOT Analysis of Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Delusion Deception, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Delusion Deception operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster can be done for the following purposes –
1. Strategic planning using facts provided in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster case study
2. Improving business portfolio management of Delusion Deception
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Delusion Deception

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Strengths Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Delusion Deception in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster Harvard Business Review case study are -

Superior customer experience

– The customer experience strategy of Delusion Deception in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Operational resilience

– The operational resilience strategy in the Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Digital Transformation in Organizational Development segment

- digital transformation varies from industry to industry. For Delusion Deception digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Delusion Deception has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Successful track record of launching new products

– Delusion Deception has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Delusion Deception has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Ability to recruit top talent

– Delusion Deception is one of the leading recruiters in the industry. Managers in the Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Low bargaining power of suppliers

– Suppliers of Delusion Deception in the sector have low bargaining power. Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Delusion Deception to manage not only supply disruptions but also source products at highly competitive prices.

Analytics focus

– Delusion Deception is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Bent Flyvbjerg, Massimo Garbuio, Dan Lovallo can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Highly skilled collaborators

– Delusion Deception has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Learning organization

- Delusion Deception is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Delusion Deception is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

High switching costs

– The high switching costs that Delusion Deception has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Innovation driven organization

– Delusion Deception is one of the most innovative firm in sector. Manager in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Training and development

– Delusion Deception has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

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Weaknesses Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster are -

Products dominated business model

– Even though Delusion Deception has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster should strive to include more intangible value offerings along with its core products and services.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster, is just above the industry average. Delusion Deception needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Delusion Deception has relatively successful track record of launching new products.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster, in the dynamic environment Delusion Deception has struggled to respond to the nimble upstart competition. Delusion Deception has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Aligning sales with marketing

– It come across in the case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster can leverage the sales team experience to cultivate customer relationships as Delusion Deception is planning to shift buying processes online.

Workers concerns about automation

– As automation is fast increasing in the segment, Delusion Deception needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Interest costs

– Compare to the competition, Delusion Deception has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

No frontier risks strategy

– After analyzing the HBR case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Lack of clear differentiation of Delusion Deception products

– To increase the profitability and margins on the products, Delusion Deception needs to provide more differentiated products than what it is currently offering in the marketplace.

High cash cycle compare to competitors

Delusion Deception has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High operating costs

– Compare to the competitors, firm in the HBR case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Delusion Deception 's lucrative customers.

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Opportunities Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities highlighted in the Harvard Business Review case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster are -

Buying journey improvements

– Delusion Deception can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Delusion Deception can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Learning at scale

– Online learning technologies has now opened space for Delusion Deception to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Delusion Deception to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Delusion Deception can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Delusion Deception to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Delusion Deception to hire the very best people irrespective of their geographical location.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Delusion Deception can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Delusion Deception is facing challenges because of the dominance of functional experts in the organization. Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Developing new processes and practices

– Delusion Deception can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Delusion Deception in the consumer business. Now Delusion Deception can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Delusion Deception has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Delusion Deception to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Delusion Deception can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Better consumer reach

– The expansion of the 5G network will help Delusion Deception to increase its market reach. Delusion Deception will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

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Threats Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster are -

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Delusion Deception in the Organizational Development sector and impact the bottomline of the organization.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Delusion Deception in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

High dependence on third party suppliers

– Delusion Deception high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Shortening product life cycle

– it is one of the major threat that Delusion Deception is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Delusion Deception can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster .

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster, Delusion Deception may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Delusion Deception.

Easy access to finance

– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Delusion Deception can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Delusion Deception business can come under increasing regulations regarding data privacy, data security, etc.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Delusion Deception will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Stagnating economy with rate increase

– Delusion Deception can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

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Weighted SWOT Analysis of Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Delusion Deception needs to make to build a sustainable competitive advantage.

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