Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
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
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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing energy prices, technology disruption, geopolitical disruptions, increasing household debt because of falling income levels,
increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, etc
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.
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
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 -
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.
Effective Research and Development (R&D)
– Delusion Deception has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Delusion Deception
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Delusion Deception does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
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.
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.
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.
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.
Strong track record of project management
– Delusion Deception is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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 -
Slow to strategic competitive environment developments
– As Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster HBR case study mentions - Delusion Deception takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
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.
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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Delusion Deception supply chain. Even after few cautionary changes mentioned in the HBR case study - Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Delusion Deception vulnerable to further global disruptions in South East Asia.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Bent Flyvbjerg, Massimo Garbuio, Dan Lovallo suggests that, Delusion Deception is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Capital Spending Reduction
– Even during the low interest decade, Delusion Deception has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Delusion Deception is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Delusion Deception is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Delusion Deception needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Delusion Deception to focus more on services rather than just following the product oriented approach.
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 -
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.
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.
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.
Loyalty marketing
– Delusion Deception has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
Leveraging digital technologies
– Delusion Deception can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Building a culture of innovation
– managers at Delusion Deception can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Delusion Deception can use these opportunities to build new business models that can help the communities that Delusion Deception operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Delusion Deception can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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 -
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.
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.
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 level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Delusion Deception needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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.
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.
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 .
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.
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.
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.
Regulatory challenges
– Delusion Deception needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
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.
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.
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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