You are a CEO of a company and plan to promote one of three managers to an executive position During your exhaustive evaluation, you discovered that all three managers have been turning down profitable projects Since the three managers are comparable across most other dimensions, your promotion decision has come down to each managers ability to explain why he or she is foregoing value creating investment opportunities You will meet with each one to gain some further insight into his or her decision making process Look at the different perspectives , reasons why some of the pro investment s were turned down, what factors were connected to each decision bandwidth, financial constraints and idiosyncratic risk the answer the question in bold See each manage conversation below Hi Mark I brought you in today because I wanted to discuss the profitable projects you have turned down Can you provide an explanation as to why you turned these down Response It is true that I have been foregoing profitable investments The reality is that my division has a limited supply of talent Every time I allocate some of my people to a project that means they are unavailable when a new opportunity arises Therefore, I have to be selective Although a new project seems profitable, I may turn it down if I want to save my people for a better opportunity that is likely to come along in the future Hi Jaime I brought you in today because I wanted to discuss the profitable projects you have turned down Can you tell me why you turned these down Jaime Response Not all projects are created equal Not even the profitable ones I have to think not only about the profits a project delivers, but also the risk it entails Lets say I have two profitable projects Project 1 is a very unique opportunity not available to the competition, and project 2 is similar to the projects our competitors have undertaken Now, if project 1 fails, we are going to lose ground to our competitors Whereas if project 2 fails, it is likely that our competitors will also suffer All else equal, I am more likely to fund project 2 It simply does not make sense to risk my job or the jobs of the people in my division trying to one up the competition Hi Tom I brought you in today because I wanted to discuss the profitable projects you have turned down Can you tell me why you turned these down Tom response Our firm is in a great position right now We have a lot of cash on hand and a number of amazing investment opportunities I am not going to spend our resources on every profitable project that comes my way today I need some dry powder ready when the next big thing comes along Please respond to the prompt below Which manager would you promote Why would you promote this manager over the other two managers Please provide an explanation of your promotion decision and details why the other two managers were not chosen 20 to 500 words

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You are a CEO of a company and plan to promote one of three managers to an executive position. During your exhaustive evaluation, you discovered

You are a CEO of a company and plan to promote one of three managers to an executive position. During your exhaustive evaluation, you discovered that all three managers have been turning down profitable projects. Since the three managers are comparable across most other dimensions, your promotion decision has come down to each managers ability to explain why he or she is foregoing value creating investment opportunities. You will meet with each one to gain some further insight into his or her decision-making process. Look at the different perspectives , reasons why some of the pro investment s were turned down, what factors were connected to each decision: bandwidth, financial constraints and idiosyncratic risk the answer the question in bold. See each manage conversation below.

Hi Mark! I brought you in today because I wanted to discuss the profitable projects you have turned down. Can you provide an explanation as to why you turned these down?

Response . It is true that I have been foregoing profitable investments. The reality is that my division has a limited supply of talent. Every time I allocate some of my people to a project that means they are unavailable when a new opportunity arises. Therefore, I have to be selective. Although a new project seems profitable, I may turn it down if I want to save my people for a better opportunity that is likely to come along in the future.

Hi Jaime! I brought you in today because I wanted to discuss the profitable projects you have turned down. Can you tell me why you turned these down?

Jaime Response: Not all projects are created equal. Not even the profitable ones. I have to think not only about the profits a project delivers, but also the risk it entails. Lets say I have two profitable projects. Project #1 is a very unique opportunity not available to the competition, and project #2 is similar to the projects our competitors have undertaken. Now, if project #1 fails, we are going to lose ground to our competitors. Whereas if project #2 fails, it is likely that our competitors will also suffer. All else equal, I am more likely to fund project #2. It simply does not make sense to risk my job or the jobs of the people in my division trying to one-up the competition.

Hi Tom! I brought you in today because I wanted to discuss the profitable projects you have turned down. Can you tell me why you turned these down?

Tom response. Our firm is in a great position right now. We have a lot of cash on hand and a number of amazing investment opportunities. I am not going to spend our resources on every profitable project that comes my way today. I need some dry powder ready when the next big thing comes along.

Please respond to the prompt below:

Which manager would you promote? Why would you promote this manager over the other two managers? Please provide an explanation of your promotion decision and details why the other two managers were not chosen. 20 to 500 words.