Human cognition is always limited by the innate assumptions. In order to make decisions, humans always have to lay down certain assumptions. This same process goes for business. These assumptions that one holds is crucial to the outcome of the decision. However, the question is: are these assumptions correct? Most importantly, are they geared towards the best interests of the client and Accenture? Questioning is how I’d be able to contribute to make Accenture a high-performance business.
I provide two cases where the failure of questioning of assumptions led to two business failures. We first examine the failure of the introduction of the new Coke in 1985. The new Coke was introduced to replace the original formula of its flagship product, Coca-Cola. However, the product met with a consumer backlash because the original Coke flavor had been too ingrained consumers’ hearts and taste buds and had a solid and vocal fan base. As a result, the original formula was reintroduced three months later.
The question in this case is: why change? It is evident that the argument for continuing with the original formula was more compelling. The management had failed to realize the deep emotional attachment Coke represented to many of its consumers. By changing the taste of this product, it will only serve to alienate its consumers who had seen Coke as part of their identity, especially South Americans who regard Coke as part of their regional identity. Sometimes, you not only have to question the old assumptions, but the new information brought in to challenge the old assumptions.
The other times, it is necessary to change old assumptions. Bethelehem Steel Corporation was the unwitting victim of being enslaved by old assumptions. It was the second largest steel producer in the United States and one of the largest shipbuilding companies in the world. Despite so, they filed for bankruptcy in 2001. This was because they could not adjust to the structural changes in the industry when America shifted away from becoming industrial manufacturing to becoming a service-based economy as well as cheap foreign labor.
Bethelehem Steel failed to question their current modus operandi quick enough with respect to the competitive environment. They had failed to realize how their mode of operations had failed to accord with the changing tides of the economy. Questioning, in this case, would have alerted them of the disjunct between their company’s and the economy’s direction. This could have averted the entire disaster.
Hence, as can be seen, questioning is an important skill. Only by questioning the deeply held assumptions can good assumptions be retained and improved on (as in the case of the new Coke) and poor assumptions be discarded (as in the case of Bethelehem Steel Corporation). With this, Accenture can unshackle herself from the limits purveyed by current assumptions to move towards in being a high performance and successful company. And of course, prevent business failures like the above mentioned from happening.
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