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Two strategies
When it comes to setting strategy, there are benefits to both popular and loner strategies.
- Popular strategies are those that are identified by the crowds. The more people that choose a strategy, the better the strategy performs.
- Loner strategies are those that are identified by only one person. If you want to outperform the crowd, you've got to do something the group isn't doing.
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Outperforming the crowd
If you want to outperform the crowd, learn the following two essential skills.
- Generate ideas by broadening your decision frame.
- You must be able to distinguish between good and bad loner strategies. It is best done by embracing critical thinking.
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Broadening the Frame
When we need to make a decision, we tend to ask "What should we do?" However, it narrows our thinking to one right decision.
If we ask the question: "What could we do?" it broadens our decision-making frame, because we can consider multiple futures. Could ask what if, what else, and why not.
For example: Ask what would be the equivalent in your industry of something that’s working well in another.
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Embracing Critical Thinking
Strategy development and internal reviews often center on precedents, trends, and due diligence. They address"what will happen." Change the question to "what may happen" :
- Role-play other parties.
- Listen to assumptions in the way a strategy is supposed to work.
- Watch out for confirmation bias, overconfidence, survivor bias, and groupthink.
- Forecast your competitors' results.
- Beware of missing pieces in the tools you use.
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CURATED BY
The first step in the acquisition of wisdom is silence, the second listening, the third memory, the fourth practice, the fifth teaching others.
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