RWBI BIO0226: Strategic Direction & Real-World Business Challenges

This report addresses critical real-world business issues relevant to a company's board of directors, focusing on themes of strategic importance and long-term survival. It delves into complex human systems, highlighting the challenges posed by non-linear interactions and emergent behaviors within organizations and the broader business environment. The SPICE framework is examined as a tool for converting ambitions into measurable plans, improving decision-making, and driving performance. Effective decision-making processes are emphasized, considering both conscious and unconscious influences, and the need for timely, informed choices. Finally, the report explores social innovation, advocating for sustainable and ethical approaches to address social and environmental challenges, ultimately recommending that organizations prioritize adaptability, effective decision-making, and a commitment to stakeholders across all levels.

Running head: REAL WORLD BUSINESS ISSUES
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REAL WORLD BUSINESS ISSUES
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Institution Affiliation

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Real World Business Issues
Change is one thing that will always be constant in the society. The business environment
that existed a few years ago no longer exists now and that will always be the case. There are
always new challenges and opportunities that present themselves and organizations have to
constantly adjust accordingly to cope with the dynamics. Organizations have to minimize on
production costs and eliminate all the uncertainties that may arise in the process to maximize
profits and meet organization goals and targets (Card, 2017). This essays discuses on the real
world business issues such as complex human systems, SPICE framework, effective decision and
social innovation.
Complex Human Systems
A system that involves the nonlinear interaction of the various components is referred to
as a complex system. The dependences, interactions and the environment make it difficult for
scholars to model the complex human systems. The components of a complex system are
independent and the interaction of the components can lead to emergent behavior (Strauch,
2017). This poses a challenge to business organizations considering the fact that complex
systems don't have a single point of control and the interaction of the components results into
self-organization.
A financial market is a complex system that consists of traders, varying capital amounts
and the interaction of commercial laws. These components non-linearly interact as they try to
obtain the maximum profits in the process of buying and selling financial assets (Reason, 2017).
The financial market and global business is a good example of human complexity in action and

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the emergent behavior of such a system is dictated by a group and individual decisions of those
involved in the global business (Anderson, 2018). There are potential risks that can occur to
organizations that do not adjust appropriately to the human complexity and this can threaten the
existence of an organization.
Several models have been developed to helped managers and executives in organizations
minimize the uncertainty that arises from the complex human systems but they are just "models"
and they have weaknesses in the real world of business. There is always uncertainty how
technology, business regulations, competition and other environmental factors will affect the
operations of a business organization (Hollnagel, 2017). The complex human system affects the
organizations from within its structure and also externally and the existing knowledge on human
complexity cannot be used to completely eliminate risks it can just reduce it. It is, therefore, the
responsibility of organizations to review their objectives and goals periodically on the basis of
the prevailing business conditions and strive to understand the effect of the complex human
system on their business.
SPICE Framework
The SPICE framework provides guidelines on how to develop a thriving business
organization through the process of converting ambition and visions into a deliverable plan that
have impacts that can be measured. The SPICE framework promotes delivery, coherent planning
and impact for development (Jap, 2015). Any manager or business organization has to be fast
and adaptive in its mechanisms for the SPICE framework to be effective in creating a successful
business. The framework offers resources and tools that help in consistently and reliably
balancing all the factors that influence our decision making process and therefore improving the
efficiency and quality of decision-making. Every decision made whether a business or personal

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one mostly depend on balancing what we learn through experience or training and the instinctive
feeling (Ibrahim, Wallmüller & Daschner, 2016). The SPICE framework increases innovation,
drives performance and helps in making reasoned strategic decisions. Following the framework
appropriately and with the required dedication will ensure that a business organization prospers
and overcomes all the challenges encountered in its operation.
The framework is very helpful in management and business since every business requires
regular measurement and management for effective and efficient operation and maximum
profits. The framework touches on the challenges a business organization is likely to face in
carrying out its operations. These challenges are mainly allied to performance, quality and
impact (Mesquida, Mas & Barafort, 2015). The framework gives guidelines on how to handle
encounters in organizational performance, managing and measuring innovation, decision
management, and managing balanced decisions. The performance of any business organization
should be checked regularly to ensure that they are moving towards the set organizational goals
and target. There are various factors that can be used to regularly assess the performance of the
organization and use the framework to spearhead mechanisms that will ensure the organizational
performance thrives. The SPICE framework increases the rate and quality of decision making
and in the process boost the development of strategies and skills to be applied to solving real-
world business issues. The impact of such acquired skills can be assessed easily. The changing
dynamics in the business world requires people with fast and efficient decision making skills for
any organization to adapt appropriately. The framework provides the guidelines on how to
manage individual and group decisions that directly or indirectly affect the operations of any
organization.

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Effective Decision Making
Effective decision-making can be seen as a term that refers to the process of selecting
alternatives and manages them by a proper implementation to ensure business objectives are met.
Effective decision-making is one of the real challenges organizations have to encounter in the
real world (Ferrell & Fraedrich, 2015). The decisions made by the organization directly or
indirectly affect the operation and success of the business, therefore, it is very crucial to have a
good decision making management process. Research shows that almost ninety percent of
decisions are made at the unconscious level of the mind and then they experiment at the
conscious level (Kourdi, 2015). Although the unconscious level is involved in making most of
the decisions, the decision-making process depends on feelings or emotions, trustworthiness and
reason. Effective decision making process strongly relies on the interaction between the
unconscious and conscious mind.
Organizations have to continuously make decisions at its various laves and these
decisions range from routine operational ones all the way to managerial and strategic decisions.
Effective decision-making in the business sector involves selecting choices and factors that will
ensure the business objectives are met. Effective decision-making plays a very critical role in
determining the success of any business organization.
Globalization of the world market try to offer the same resources to business firms and
effective decision-making can give an organization competitive advantage over their
competitors, therefore, ensuring high returns to the shareholders. Many organizations have
formalized planning process and the board of governors to ratify and oversee the planning
process of the organization. Routine decision making processes may have documented
procedures but sometimes the changing business dynamics provides situations where

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appropriately and timely non-routine decisions have to be made for the sake of the organization.
In such situations, the manager or staff member has to consider the risks, alternatives and
potential outcomes of each alternative very fast and do the compromise to come up with a
decision that will ensure the objectives of the organization are still met.
The decision making process is subject to human inaccuracies that may arise from self-
interest bias, personalities and prejudices. However, effective decision making process promotes
objectivity in throughout the process (Sharma, Mithas & Kankanhalli, 2014). The success of the
organization relies on the decisions made across the various levels, therefore, the human errors
should be completely eliminated. Training and experience in business greatly boost the decision
making capability of managers and staff members.
Social Innovation
Social innovation in business refers to the process of applying innovative, sustainable,
practical and business-like approaches to achieve positive social change. Social innovation can
be seen as the innovation of products that will serve the society better. As much as business
organizations are based on maximizing profits by cutting production and operation costs, they
should put the people they work for the center of the organization and produce quality products
for the society (Phillips, Ghobadian & James, 2015). There are various social and environmental
challenges in the society and it is the responsibility of organizations to put mechanisms that aim
at solving or reducing these challenges. Challenges such as global warming cannot be ignored
and therefore organizations should follow all the ethical regulations that aim at solving such
challenges.
For social innovation to succeed best it needs to be done in collective efforts with other
stakeholders. Business organizations operate in a complex system that consists of competitors,

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customers, non-governmental organizations, policy-makers and investors. Therefore all these
components have to be involved in the process of facilitating social innovation. Alan Knight
once said that "Social innovation has an important role to play in getting us to a place where
breakthroughs can happen at a systems level" (Moulaert, 2016). Companies have to constantly
assess their role as part of the society and the impact of how they do their business to the society
(Ospina & Parés, 2015). Organizations should create value for both the shareholders and the
customers also.
Conclusion and Recommendations
Business organizations are continuously faced with real-world issues and challenges that
have to be solved to guarantee the success of the organizations. Some of the issues faced in the
real business world include the complex human system, effective decision making and social
innovation. The board of governors should always make decisions considering that the business
dynamics are continuously changing and the organization should be flexible enough to
appropriately adapt to the various changes. The board should instill the effective decision making
culture across all the levels of organizations to ensure the objectives of the organizations are met.
The board of governors has the role to oversee the organizational planning and ensure the
uncertainties that might arise due to the complex human systems are eliminated or reduced as
much as possible. Every member of the organization plays a critical role in ensuring the success
of the organization and they should be informed of the continuously changing business
environment.

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