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Quiz: Decision-making

Think you're a pretty savvy decision-maker? Take this quiz, adapted from Why Decisions Fail: Avoiding the Traps and Blunders that Lead to Debacles (Berrett-Koehler, $22.95), by Paul C. Nutt. The author, who teaches management at the Fisher College of Business at Ohio State University, analyzed 400 decisions in U.S. companies over 20 years to see which ones didn't work out and what went wrong. Answer "true" or "false" to each of the following questions.

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7. Once a decision is shown to have been a mistake -- a new product flops, or a manufacturing method is flawed -- the usual response is for everyone involved to discuss it openly, so it doesn't happen again.
Results: False. People responsible for bad decisions usually have only two options, according to Nutt: "Own up or cover up." The common response is the latter -- for example, by offsetting bad news with good news when reporting to higher-ups�so that mistakes become "undiscussable." Since failure is not acknowledged, no one can learn from it.

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