Wednesday, March 17, 2010

Improve Your Strategic Decision Making

The latest McKinsey Quarterly includes an article, "The Case for Behavioral Strategy," that advises you on how to improve strategic decision making in your company. Looks like important advice considering a recent McKinsey survey indicated that only 28% of executives rated the quality of their company's strategic decisions to be good, 60% thought bad decisions happened as often as good ones, and 12% thought good decisions occurred infrequently.

The high-level advice for countering known biases:
1. Decide which decisions warrant the effort (of trying to deal with biases)
2. Identify the biases most likely to affect critical decisions
3. Select practices and tools to counter the most relevant biases
4. Embed practices in formal processes.

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