Organization ABC had a sales and marketing department with

30,000 employers across the globe. The organization has

captured enterprise market and it was targeting to capture
SME as well to widen its sales activities.
The sales zone has been split as follows to turn up to meet
upcoming needs :
(USA,
EMEA,
ANZ &
Others)
Among the zones, EMEA zone had efficient sales team with
capitate members.
The team invested few of the sales master brains to develop
an internal sales tool. Although the team was well aware that
they don't have sufficient IT knowledge nor aware global
needs of sales, still they wanted to make a short term
tool(investing 3 months) to perform their day to day activities
like calculating profit / margin/base cost/manufacturing cost/
break event analysis etc.,
As and when they needed more features in tool ,they kept

 In the meanwhile global sales team was exploring all options to

build a sales platform for entire organization. They explored few
sales platform that has been used by their competitors to win
the global market. One of the competitor like sales force showed
keen interest in making a deal with organization.
Global sales team considered them as an option and started
interacting with all internal zone heads to have a look at new
sales platform and comment on their reviews. They got positive
response from almost all zones except EMEA zone (as they had
their own tool).
Global sales team requested EMEA sales head to come up with
pros and cons of internal tool Vs Sales tool to make a decision.
Despite of knowing the shortcomings in the internal tool, team
was reluctant to accept the new sales platform.
The team had a strong feeling to possess the internal tool as it
was their own effort and property. It took almost 2 years to
convince the team to accept and use the new sales platform.
Due to the delay in adaption, Management had to face alot of
consequences in EMEA sales like losing few investors, delay in
procurement and acquiring the tool, additional transformation
and conversion cost etc.,

 Finally they could set a global platform for entire sales team across the
organization by accepting the sunk cost due to internal tool(s).
What was the major bias that was faced by EMEA Sales team ?
What is change & transformation ?
Is it considered as a change or transformation in your view ?

A government aided bank wanted to build a software platform for maintaining

their financial transactions.
The following were major expectations on platform :
1) Maintain all financial transactions and investments inside Vs Outside Country
2) Daily/Weekly/Monthly transactions representing their growth/decline cycles
3) Automated workflow on approvals
The investment or production cost for the tool was estimated as $1,000,000.00.
The tender was released and most of the top IT/Software companies quoted for
$1,200,000.00 to $1,500,000.00 million dollars.
In contrary, few small scale organizations were quoting for less than a million in
fact they offered 30% discount on investment cost.
Management team had a dilemma and got impressed with the term discount as
it was not quite popular term used in government tenders.
One of the small scale organisation(Vendor) could enter the competition (30%
discount) and it agreed for all major features with 4 years warranty +
maintenance .

 The vendor (small scale organisation) shared a view that every 4 to 5 years
technology keeps upgrading hence the platform or tool may become
obsolete or need a upgradation once in 5 years. This was also a influence
factor for the management.
The bank decided to opt for cheaper investment and made a deal with
vendor for 30% discount which could save their investment cost itself.
After procurement, few of the hidden details were disclosed by vendor:
Automated workflow licenses were bought from external / third party vendors
which will exactly expiry by 4th year and if they want to go with license
renewal or maintenance work they should go through the same vendor only.
Any enhancements or add on features can be done by the vendor only ,
other competitors or external organisation cannot be involved as the
platform/technology used was very unique.
After 4 years , bank decided to crap the tool and procure a new platform due to
the shortcomings.
Almost 12 officers were terminated from the department due to the poor
evaluation.

ANCHORING BIAS
70% discount label of shopping website /shop
window.
Forecasting on the basis of past records.
Weather forecasting
Sales
Disaster management
Organising an event.
Shopping for a specific brand.
Clothing - Arrow/Peter England/Gucci
Cars -- Mahindra/Tata/Maruti
Bride/Bridegroom selection.
Tall ,fair ,beuatiful,working

STATUS QUO BIAS

Not willing to move out
environment to a new job.

of

present

comfortable

Repeated reinvestment in a long loss making enterprise

eCommerce merchandise
Resistance to change
Modification to production process.
Automation of processes/documentation
Relocation of work place

working