Honda’s entry into the U.S. motorcycle market illustrates intuition’s power in strategic decision making.
Honda’s scouts saw a discouraging picture but felt they and their firm could be successful in spite of the odds. The discouraging analyses from government officials didn’t sway them from feeling they had the resolve and capabilities required to achieve competitive success. They felt that risking some of Honda’s precious resources to pursue “success against all odds” made sense. In hindsight, with knowledge of the story’s resolution, it’s easy to construct rational arguments for why Honda should have moved forward. At the time, however, the course of action the firm should have followed wasn’t as clear.
Additional examples of intuition in strategic decision making are all around us. Ignoring recommendations from advisors, Ray Kroc purchased the
McDonalds brand from the McDonald brothers:
“I’m not a gambler and I didn’t have that kind of money, but my funny bone instinct kept urging me on.” Ignoring numerous naysayers and a lack of supporting market research, Bob Lutz, former president of Chrysler, made the Dodge Viper a reality:
“It was this subconscious, visceral feeling. And it just felt right.” Ignoring the fact that 24 publishing houses had rejected the book and her own publishing house was opposed, Eleanor Friede gambled on a “little nothing book,” called Jonathan Livingston
Seagull: “I felt there were truths in this simple story that would make it an international classic.”3
Consistent with these stories, many academic researchers, business writers, executives, and managers champion intuition as a key part of strategic decision-making effectiveness. One noted intuition researcher,4 for example, assembled an edited volume filled with testimonials supporting intuition. A set of business authors5 highlighted the faith that Herb Kelleher, the legendary founder and former CEO