Check out our FREE Resources page – Download complimentary business frameworks, PowerPoint templates, whitepapers, and more.

Flevy Management Insights Case Study
Behavioral Strategy Overhaul for Aerospace Leader in Competitive Market

Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Behavioral Strategy to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

Reading time: 7 minutes

Consider this scenario: The organization in question is a prominent aerospace manufacturer grappling with decision-making inefficiencies that stem from cognitive biases and poor behavioral strategic practices.

As competition intensifies, these shortcomings have led to suboptimal project selection, risk assessment errors, and costly delays in product development. The manufacturer is seeking to refine its Behavioral Strategy to bolster decision quality, enhance innovation throughput, and solidify its market position.

Given the aerospace manufacturer's challenges, initial hypotheses might suggest that cognitive biases such as overconfidence and anchoring are impacting strategic decisions. Another hypothesis could be that a lack of a structured Behavioral Strategy framework is leading to inconsistent decision-making processes. Finally, it is possible that internal communication barriers are exacerbating these behavioral inefficiencies.

Strategic Analysis and Execution Methodology

The company's situation calls for a comprehensive Behavioral Strategy methodology. This proven process will enable the organization to systematically address and mitigate cognitive biases, improve decision-making, and align strategic choices with long-term objectives.

  1. Behavioral Assessment: Begin by mapping out current decision-making processes, identifying cognitive biases, and understanding the behavioral dynamics within the organization.
  2. Strategic Framework Development: Create a tailored Behavioral Strategy framework that incorporates best practices to counteract identified biases and streamline decision-making.
  3. Implementation Planning: Develop an actionable plan to integrate the Behavioral Strategy framework into existing business processes, ensuring minimal disruption.
  4. Change Management & Training: Execute a change management strategy to embed new behaviors, including comprehensive training for key stakeholders.
  5. Monitoring & Continuous Improvement: Establish metrics to monitor the effectiveness of the new strategy and foster a culture of continuous improvement.

Learn more about Change Management Continuous Improvement Behavioral Strategy

For effective implementation, take a look at these Behavioral Strategy best practices:

Psychology of Product Adoption (46-slide PowerPoint deck)
Performance-driven Culture (26-slide PowerPoint deck)
Behavioral Strategy Primer (22-slide PowerPoint deck)
10 Hidden Strategic Opportunities (22-slide PowerPoint deck)
Building Blocks of Behavioral Strategy (29-slide PowerPoint deck)
View additional Behavioral Strategy best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Behavioral Strategy Implementation Challenges & Considerations

The introduction of a Behavioral Strategy framework often raises concerns about adaptability within established corporate cultures. A tailored approach, sensitive to the organization's unique dynamics, is essential to facilitate acceptance and integration. Executives may also question the measurability of outcomes related to behavioral change. It is critical to establish clear, quantifiable KPIs that will demonstrate the impact on decision-making quality and project outcomes. Furthermore, resistance to change is a common challenge. Addressing this requires transparent communication and demonstrating the value of the new strategy through early wins.

Upon full implementation of the methodology, the organization should expect to see a reduction in decision-making errors, a more agile and dynamic strategic planning process, and improved project selection and execution. A McKinsey study found that companies that focus on Behavioral Strategy can see decision effectiveness improve by up to 60%.

Learn more about Corporate Culture Strategic Planning Agile

Behavioral Strategy KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.

Tell me how you measure me, and I will tell you how I will behave.
     – Eliyahu M. Goldratt

  • Decision-making time reduction percentage
  • Number of projects delivered on time and budget
  • Frequency of strategic pivots based on market changes

These KPIs offer insights into the efficiency, agility, and accuracy of the organization's strategic decisions. Tracking these metrics over time will highlight areas for continuous improvement and demonstrate the tangible benefits of the new Behavioral Strategy.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it became evident that fostering a data-driven culture was instrumental in combating cognitive biases. By leveraging analytics and encouraging evidence-based decision-making, the company reduced reliance on intuition in favor of a more balanced approach. This shift not only improved decision accuracy but also fostered a culture of accountability and transparency.

Learn more about Cognitive Bias

Behavioral Strategy Deliverables

  • Behavioral Strategy Framework (PDF)
  • Decision-Making Process Map (Visio)
  • Change Management Plan (MS Word)
  • Training Materials and Workshops (PPT)
  • Performance Dashboards (Excel)

Explore more Behavioral Strategy deliverables

Behavioral Strategy Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Behavioral Strategy. These resources below were developed by management consulting firms and Behavioral Strategy subject matter experts.

Behavioral Strategy Case Studies

A leading aerospace firm implemented a Behavioral Strategy framework that resulted in a 30% reduction in strategic decision-making time and a 20% improvement in project delivery efficiency. Another case involved a global aerospace company that, after adopting behavioral strategic practices, saw a significant increase in innovation output, with a 25% rise in the number of patents filed within two years.

Explore additional related case studies

Integrating Behavioral Strategy with Existing Processes

Integrating Behavioral Strategy within an organization's existing processes can be challenging but is essential for creating lasting change. The first step is to conduct a thorough analysis of current workflows and identify areas where cognitive biases may be influencing outcomes. This analysis must be conducted with sensitivity to the existing company culture to avoid resistance from staff accustomed to traditional methods.

Once areas for improvement are identified, the Behavioral Strategy framework should be introduced progressively, starting with pilot programs in departments most affected by decision-making biases. For example, a PwC report on change management emphasizes the importance of small wins and pilot programs to demonstrate the efficacy of new strategies before a company-wide rollout.

Measuring the Success of Behavioral Strategy Implementation

Measuring the success of Behavioral Strategy implementation is critical to understanding its impact on an organization. While some executives may be skeptical about the quantifiability of such a strategy, it is possible to measure success through both qualitative and quantitative data. Key performance indicators such as decision-making time, project delivery efficiency, and innovation rate are quantifiable measures that can demonstrate the effectiveness of the implementation.

Qualitative measures also play a role. Surveys and interviews with employees can provide valuable feedback on the cultural shift and acceptance of the new strategy. According to a recent Gallup poll, companies with high employee engagement report improved efficiency and better outcomes, which correlates with the successful adoption of a Behavioral Strategy framework.

Learn more about Employee Engagement Key Performance Indicators

Addressing Cognitive Biases in Leadership Decisions

Cognitive biases in leadership decisions can significantly impact an organization's strategic direction. To address this, the Behavioral Strategy framework must include specific tools and techniques for leaders to identify and mitigate biases. Techniques such as pre-mortem analysis, which involves envisioning a future failure and working backward to determine causes, can be effective in counteracting overconfidence and confirmation biases.

Leadership training programs focused on behavioral insights can also play a crucial role. By understanding common cognitive biases, leaders can make more informed decisions. BCG's research indicates that when leaders are aware of their cognitive biases, they are 30% more likely to make decisions that are in the organization's best interest.

Learn more about Leadership

Ensuring Long-Term Sustainability of Behavioral Changes

Ensuring the long-term sustainability of behavioral changes requires a commitment to ongoing education and reinforcement of the Behavioral Strategy framework. The initial implementation may lead to immediate improvements, but without continuous efforts, old habits can resurface. Organizations should establish regular training sessions and update their Behavioral Strategy tools and resources to reflect the latest research and best practices.

Moreover, embedding behavioral considerations into performance management systems can incentivize sustained behavioral change. According to Deloitte's insights, when performance evaluations and rewards are aligned with desired behaviors, employees are more likely to maintain those behaviors over time.

Learn more about Performance Management Best Practices

Additional Resources Relevant to Behavioral Strategy

Here are additional best practices relevant to Behavioral Strategy from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced decision-making time by 20% following the implementation of the Behavioral Strategy framework.
  • Improved on-time and on-budget project delivery by 15% as evidenced by project tracking data.
  • Increased strategic pivots in response to market changes, with a 25% rise in adapting to market dynamics.
  • Established a data-driven culture, reducing reliance on intuition and fostering accountability and transparency.

The results of the Behavioral Strategy initiative have been largely successful in achieving the intended objectives. The reduction in decision-making time by 20% indicates a significant improvement in the efficiency of strategic processes. Additionally, the 15% improvement in on-time and on-budget project delivery demonstrates a tangible impact on project management. The increase in strategic pivots by 25% reflects a more agile approach to market changes. However, the initiative fell short in addressing resistance to change, as evidenced by the challenges in integrating the framework within the existing corporate culture. To enhance outcomes, greater emphasis on change management strategies tailored to the organization's unique dynamics could have been beneficial. Alternative strategies could have involved phased implementation with stronger emphasis on pilot programs to demonstrate efficacy before full-scale adoption.

Looking ahead, it is recommended to conduct a thorough review of the change management process and refine strategies to address resistance effectively. Additionally, ongoing education and reinforcement of the Behavioral Strategy framework should be prioritized to ensure sustained behavioral change. Furthermore, a focus on aligning performance evaluations and rewards with desired behaviors can incentivize the long-term sustainability of the initiative's outcomes.

Source: Behavioral Strategy Overhaul for Aerospace Leader in Competitive Market, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

Additional Flevy Management Insights

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.