Identifying Key Decision Types in Behavioral Strategy PPT

This PPT slide, part of the 22-slide Behavioral Strategy Primer PowerPoint presentation, outlines the initial step in adopting a Behavioral Strategy, emphasizing the importance of identifying decisions that truly merit the effort involved. It categorizes decisions into 2 distinct types: One-off Strategic Decisions and Repetitive yet High-risk Decisions.

One-off Strategic Decisions are described as unique and infrequent, such as mergers and acquisitions or significant capital investments. These decisions typically require a small group from the executive team to finalize, often relying on informal or ad-hoc processes. The slide suggests that these decisions are critical and warrant careful consideration due to their significant impact on the organization.

On the other hand, Repetitive yet High-risk Decisions involve recurring choices that ultimately shape a company's strategic direction. These decisions, while repetitive, carry substantial risks and are often linked to essential processes within the organization, like research and development or capital expenditures. The slide notes that in many organizations, there are usually only a few of these vital processes that require consistent decision-making.

The concluding remark highlights that while formal processes exist to facilitate strategic decision-making, they are often vulnerable to biases. This susceptibility can lead to decision paralysis, where the organization struggles to make timely choices due to over-analysis or fear of risk. Overall, the slide serves as a guide for executives to focus their efforts on the types of decisions that will have the most significant impact on their organizations.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Behavioral Economics Organizational Behavior Cognitive Bias Behavioral Strategy