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

Slow Deciders Make Better Strategists

Experiments with strategic decision making

A database of business executives, consultants, professors, and students was given the same unfamiliar pricing-strategy problem.

  • Generally, the I-already-knows and the Now-I-Knows tend to be older males.
  • The I-don't-knows tend to be somewhat younger.
  • Females make up over half of the I-don't-knows.
  • The best performing group was the I-don't-knows.
  • The overconfident I-already-knows had strategies that would not work. Not because they were incompetent, but because they were overconfident.

203 SAVES


This is a professional note extracted from an online article.

Read more efficiently

Save what inspires you

Remember anything

IDEA EXTRACTED FROM:

Slow Deciders Make Better Strategists

Slow Deciders Make Better Strategists

https://hbr.org/2016/07/slow-deciders-make-better-strategists

hbr.org

4

Key Ideas

Good/bad strategy decision-makers

It's not easy to split people into the good/bad strategy decision-makers.

  • Track records are useful to some extend. Those with business degrees seem to be good signs, but they may differ on what works. Veterans look promising, but so do outsiders with new ideas.
  • There's a difference between someone confident after laboring over a thoughtful decision and one who's convinced after a quick judgment. There's a difference between someone unsure after serious thought and someone who's uncertain after a quick view.

Strategy Decision Making

Imagine recording decision-makers' solutions to a competitive-strategy problem using four categories:

  1. Now-I-know
  2. I-already-know
  3. I-don't-know
  4. I-guessed

The Now-I-know and the I-already-know are very confident while I-do don't-know and the I-guessed are unsure. The Now-I-know and the I-don't-know are slow in making a strategy-decision while the I-already-know and the I-guessed are fast at making a decision.

Experiments with strategic decision making

A database of business executives, consultants, professors, and students was given the same unfamiliar pricing-strategy problem.

  • Generally, the I-already-knows and the Now-I-Knows tend to be older males.
  • The I-don't-knows tend to be somewhat younger.
  • Females make up over half of the I-don't-knows.
  • The best performing group was the I-don't-knows.
  • The overconfident I-already-knows had strategies that would not work. Not because they were incompetent, but because they were overconfident.

A lesson about overconfidence

When the overconfident think they already know the answer, they may believe it's a waste of time to keep looking for answers. But in deciding on a strategy, overconfidence may not lead to a workable option.

An essential lesson for competitive-strategy decision-makers is not to be so fast. Take your time and don't be so sure.

SIMILAR ARTICLES & IDEAS:

Purpose, not passion

Purpose, not passion

There is a famous saying that translates: "One jumps into the fray and then figures it out."

Usually, some version of this strategy is that people don't take ...

The alternative to a passion-driven mindset

The passion-driven mindset can be contrasted with an alternative: a poise-like discipline and a sense of purpose.

The key is to know what you're actually working towards. Ask yourself what your strategy is.

Working aimlessly

Few people take the time to find out what is possible or have the courage to probe themselves. It's unpleasant, and they'd instead figure it out as they go.

  • They network but don't know what kind of contacts would be helpful.
  • They want to write a book, but don't want to take the time to ask what purpose it serves.
  • They talk about what they'd like to do but have no idea how to get there or if they will enjoy it.

Instead of moving closer to the answer, they are stuck in endless reacting and reaction.

one more idea

Gambler’s Fallacy

Gambler’s Fallacy

The odds are always fifty-fifty. But most of us anticipate better odds, or better luck, after a bad streak, as if now we are due for good luck.

This ‘Gambler’s Fallacy’...

The Biggest Bluff

Maria Konnikova, in her soon to be published book The Biggest Bluff, tells us that Poker is a real game, closer to life as opposed to the modern games which try to ‘game’ our brains’ and exploit its weaknesses.

Poker pushes us out of our comfort zones and illusions and puts us where life is, unpredictable, and always with fifty-fifty odds.

Limited knowledge

We are all currently going through a challenging period: while fighting the pandemic, we are also trying to stay positive and read only useful articles on the topic.

However, we should ...

The origin of real vs. fake information

When reading an article, you might want to consider checking its source. It is very often that journalists reinterpret the original findings according to their own point of view.

Then, another aspect worthy of your attention is the fact that truth will most probably appear in multiple articles, while fake news is bound to be found on only one or two websites, messages and the kind.

Checking the source of your news

Being positive that you can trust articles on topics as important as the current pandemic is of great relief.

This is why you should try reading reports that include comments from the study authors as well as articles that do not intend to present data in a certain manner, in order to manipulate the public.