deepstash

Beta

How the Very Best Strategists Decide

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.

102 SAVES


This is a professional note extracted from an online article.

Read more efficiently

Save what inspires you

Remember anything

IDEA EXTRACTED FROM:

How the Very Best Strategists Decide

How the Very Best Strategists Decide

https://hbr.org/2016/10/how-the-very-best-strategists-decide

hbr.org

4

Key Ideas

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.

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.

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.

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.

EXPLORE MORE AROUND THESE TOPICS:

SIMILAR ARTICLES & IDEAS:

Tactical Hell

It is a place where we are perpetually reactive to other people’s demands and needs, driven by emotional instead of logical impulses.

We need to escape it and see things objectively an...

The Art of Negative Visualization

This is a stoic lesson, to visualize failure in advance.

It helps because if you imagine failure you start seeing all the ways that have led to that result. And you can start actively working on addressing and mitigating them in advance.

The ‘Draw-Down Period’

Before he would jump into an idea and go full steam, take a reflective period to step back ask yourself: "What do I really have here? Do I actually have something? What am I hoping to accomplish?”

6 more ideas

Do some math

You make one decision, wait, make a second decision, and then make a compromise between the two.

Averaging the two judgments tends to outperform trying to identify the better of the tw...

Pair a good decision with a bad one

If you only allow yourself your vice while you’re simultaneously being virtuous,  you’ll spend more time doing things that are good for you and less time doing the “bad” things. 

The researchers call this “pre-bundling” and say it allows people to couple instantly gratifying activities (such as watching trashy TV) with a behavior that’s beneficial in the long term but requires willpower (like working out).

Take things one at a time

Next time you’re faced with a problem with many possible answers, pinpoint your end goals and then come up with a solution for each.

This is likely to lead to the generation of a diverse set of options covering multiple categories of solutions.

The model of future work

By 2030, up to 30 to 40 percent of all workers in developed countries may need to move into new occupations or upgrade their skill sets. Skilled workers in short supply will become even scar...

Employers should lead the way

The pace and scale that technology disrupts is a social, political and business challenge.
Employers are best placed to make a positive societal impact, for example, by upgrading the abilities of their employees and equipping them with new skills. Employers will also reap the greatest benefit if they can successfully transform the workforce in this way.

Talent is the largest barrier

Talent is the largest barrier to the successful implementation of new strategies.

Many leading businesses realize that it is quicker and more financially prudent to look internally and develop the talent they already have. Yet only a third of global executives report that their organizations have launched any new reskilling programs.

6 more ideas