RPM and a Core Component of Every Business Leader - Research Paper Example

Cooper (2010) says that any new approach or solution that is adapted to resolve a given issue must be evaluated in turn to assess its effectiveness and quality. In other words, it is simply not enough to propose a set of steps to tackle situations such as known surprises. In fact, there needs to be an established framework and a set of estimates that can help evaluate the responsiveness of the solutions devised and the extent to which they have helped in reducing the risks. The RPM method presents a number of approaches such as scenario planning, risk analysis, incentives and networks as a means to ferret out threats.

However, it does not provide any subsequent methods or advise on measuring the success of these methods, thereby leaving open this question to contention among organizations that adopt any of these methods (Cooper, 2010). Lastly, many uncertainties are not restricted to a few specific factors and may sometimes influence through a number of frontiers. For example, Jack Welch, the former CEO of General Electric, was driven by psychological preconceptions in his bid for acquiring Honeywell. Watkins and Bazerman (2003) highlight that he completely ignored potential issues that could be encountered by European regulators.

In this context, some researchers like Montier (2010) believe that Mr Welch’s decision may have been driven by factors beyond psychological and cognitive biases. For example, the internal organizational culture at General Electric could have been fragmented or distorted that may have resulted in the communication of inefficient and ill-constructed ideas to top-level management.