deepstash

Beta

Get an account to save ideas & make your own & organize them how you wish.

STASHES TO GET YOU STARTED

© Brainstash, Inc

deepstash

Beta

How the Very Best Strategists Decide

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.

120 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.

SIMILAR ARTICLES & IDEAS:

Considering risk

It is not always possible to anticipate the effects of unexpected events that occur throughout the business cycle.

But those who routinely examine the way risks propagate across the entir...

Risk along the value chain

Most companies only examine the most direct risks facing a company and tend to neglect secondary risks that can have an even greater impact.

Companies need to learn to evaluate aftereffects that could weaken whole value chains.

Competitors

All differences in business models can create the potential for competitive risk exposure. This does not mean that a company should imitate its competitors, but that it should consider the risk when they have different strategies.

4 more ideas

Default options

Deciding is too much effort so we’re likely to just stick with the default or safer option if it’s already been chosen for us. 

When we get offered too many choices, the same...

Best decision making happens in the morning

This is when serotonin is at it’s natural high, which helps to calm our brain. Thus, we feel less risk averse and so we can face risks and make harder choices.

The part our bodies play in decision-making

If we’re feeling hunger, thirst or sexual desire, that can actually spill over into the decision areas of our brains, making us feel more desire for big rewards when we make choices. 

This can lead us to make higher-risk choices and to want for more.

one more idea

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