Alternative Selection Best Practice 4 – Technically Right and Absolutely Wrong

Description

Executives and managers are rightfully concerned about the costs and potential returns associated with the investments before them. Subsequently, business planners painstakingly research, analyze, and calculate the financials associated with each initiative to be considered and present these and the associated risks to business leaders. To enable comparison, risks are also presented in monetary terms. The analysis is then aggregated in a cost-return matrix and a recommendation developed based on the organization’s available investment capital for those initiatives exceeding the business’s return on investment threshold. Technically, these recommendations appear very sound; realistically, they can be absolutely wrong for the organization.

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