SOURCE: Neale-May & Partners

January 08, 2007 08:35 ET

News Corp. 'Does It': Makes Worst Business Blunder in 2006 According to Survey

PALO ALTO, CA -- (MARKET WIRE) -- January 8, 2007 -- The business world has spoken: Rupert Murdoch's News Corp. committed the biggest business blunder in 2006 when it decided to produce an O.J. Simpson book and TV special with the working title of "If I Did It." Findings come from a survey fielded by the Business Performance Management (BPM) Forum (www.bpmforum.org) and the DecisionROI Institute.

Just over 28 percent of 175 business execs from a variety of industries and company sizes cited News Corp.'s puzzling stubbornness in moving ahead with the projects, in which Simpson speaks hypothetically on how he would have committed the 1994 slayings of his ex-wife, Nicole, and friend Ron Goldman. Ultimately, public outcry forced Murdoch to cancel the projects and issue an apology -- but not before considerable damage to News Corp.'s reputation.

Taking a close second place to the News Corp. decision debacle, at 24 percent, was the options backdating scandal story, a group of blunders that affected numerous companies in 2006 and forced restatements topping $5.7 billion and more than 325 law suits. Of course, the story is not finished by a long shot.

Rounding out the top five blunders:

3.    HP's decision to "pre-text" board members and journalists to find a
      leak (19 percent)
4.    Google's move to set up a new "censored" Web site in China
      (16 percent)
5.    Energy hedge fund Amaranth Advisors' loss of $6.5 billion in less
      than a month due to bad investment gambles (7.9 percent)
With the unfortunate expectation of more bad business decisions in 2007, on January 22 the DecisionROI Institute is releasing findings of its Corporate Decision Dynamics study, which encompasses insights from over 375 executives, managers and directors and in depth interviews with over a dozen top decision makers. The study will help reveal the state of corporate decision making, and will offer recommendations for improved decision making strategies and processes.

For a sneak preview of the results contact Matt Farrell of GlobalFluency at 212-213-5400, Ext. 217.

About the Business Performance Management (BPM) Forum

The BPM Forum was organized in 2003 and provides support to thousands of senior executives and practitioners representing global enterprises with more than $500 billion in combined annual revenues. The forum's knowledgeable and influential members excel in strategy, operations, finance, technology, business innovation and boardroom roles. Visit www.BPMForum.org for more information about BPM Forum intellectual capital initiatives, programs, membership, networking services and sponsorship.

Contact Information

  • MEDIA CONTACT:
    Matt Farrell
    Director of Media Relations
    GlobalFluency
    212-213-5400 x217
    Email Contact