To describe reasons why companies make bad strategy decisions despite having the most capable, motivated, experienced, well‐equipped strategists in history. To recommend practical changes companies can implement to improve strategy decision‐making.
Why do bad strategy decisions get made when so much effort goes into making them well? After all, no one gets up in the morning intending to make bad strategy decisions. This paper draws on the author's experience in scores of business war games and strategy simulations in Fortune 500 firms around the world and on the author's observations in 30 years of designing and implementing quantitative business tools.
Helps strategists uncover sources of bad strategy decisions that might not be recognized in their companies, such as overconfidence, use of inappropriate analytical tools, and excessive emphasis on accountability. Discusses remedies and alternatives such as strategy simulation, business war games, examination of uncertainty, and competitor role‐playing. Includes
Improving the quality of strategy decision‐making can hugely affect the bottom line and be a potent source of competitive advantage.
Strategy decisions are among the highest‐leverage actions management can take. This paper offers new ideas to strategists who want to make better strategy decisions, and identifies conventional solutions to avoid.
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