Predictable Surprises: The Disasters You Should Have Seen Coming

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Predictable Surprises: The Disasters You Should Have Seen Coming

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Publication Date:
March 01, 2003

Think hard about the problems in your organization or about potential upheavals in the markets in which you operate. Could some of those problems–ones no one is attending to–turn into disasters? As Harvard Business School professors Michael Watkins and Max Bazerman illustrate in this timely article, most of the “unexpected” events that buffet companies should have been anticipated–they’re “predictable surprises.” Such disasters take many forms, from financial scandals to disruptions in operations, from organizational upheavals to product failures. The bad news is that all companies, including your own, are vulnerable to predictable surprises. The good news is that recent research helps explain why that’s so and what companies can do to minimize their risk. The authors contend that organizations’ inability to prepare for predictable surprises can be traced to three sets of vulnerabilities: psychological, organizational, and political. To address these vulnerabilities, the authors recommend the RPM approach. More than just the usual environmental scanning and contingency planning, RPM requires a chain of actions–recognizing, prioritizing, and mobilizing–that companies must meticulously adhere to. Failure to apply any one of these steps, the authors say, can leave an organization vulnerable.

Copyright © 2020 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

Predictable Surprises: The Disasters You Should Have Seen Coming

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Predictable Surprises: The Disasters You Should Have Seen Coming

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