Analysis of a Management Decision Failure – What lesson can we learn?

Magazine article, 2009

Abstract – Decision is the core transaction of an organization and has a profound influence on organizations achievement. Despite the importance it happens that decision makers do not pay enough attention to some important factors. A decision which seems to be right might face unwanted consequences due to its sensitivity to other factors. One way to avoid such a situation is learning from historical cases. This paper is focused on Shell Brent Spar case and the decisions leading up to its disposal. The aim of the study is to analyse and assess interactions of different actors which are involved by means of risk assessment tools to identify the main influencing factors affecting the failure of the decision. The results show that different moral grounds of the actors, poor communication of Shell with the society, and being distracted by economic benefits were the most important influencing factors affecting the decision.