We have categorized 12 documents as Behavioral Strategy. All documents are displayed on this page.

Paul Polman, the former CEO of Unilever, famously said, "Strategy is a commodity, execution is an art." This statement gets at the heart of Behavioral Strategy—a management approach that connects an understanding of cognitive biases with strategic decision making. Despite best intentions, executives' decisions are frequently influenced by cognitive biases rather than being wholly objective. Behavioral strategy offers a way to mitigate these biases, aiding organizations in achieving their Strategic Planning objectives.Learn more about Behavioral Strategy.

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.

DRILL DOWN BY FILE TYPE

  Open all 12 documents in separate browser tabs.
  Add all 12 documents to your shopping cart.


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




Read Customer Testimonials

  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

    – Bill Branson, Founder at Strategic Business Architects
  •  
    "Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

    The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

    – Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
  •  
    "I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

    – Moritz Bernhoerster, Global Sourcing Director at Fortune 500
  •  
    "As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

    Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I "

    – Nishi Singh, Strategist and MD at NSP Consultants
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider
  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership



Flevy Management Insights: Behavioral Strategy

Paul Polman, the former CEO of Unilever, famously said, "Strategy is a commodity, execution is an art." This statement gets at the heart of Behavioral Strategy—a management approach that connects an understanding of cognitive biases with strategic decision making. Despite best intentions, executives' decisions are frequently influenced by cognitive biases rather than being wholly objective. Behavioral strategy offers a way to mitigate these biases, aiding organizations in achieving their Strategic Planning objectives.

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

Explore related management topics: Strategic Planning Decision Making Cognitive Bias

Understanding Behavioral Strategy: The Human Element in Decision Making

Even the most experienced C-level leaders are prone to cognitive biases, preconceptions, and habits that can distort their decision-making process. Behavioral Strategy is a pathway to recognize these biases and develop countermeasures to avoid undesirable outcomes. Intent is one thing, but consistent execution is another—Behavioral Strategy helps to bridge this gap.

Common Cognitive Biases in Strategic Decision Making

Several cognitive biases commonly interfere with effective decision-making. Among them are Status Quo Bias (overvaluing the present state), Sunk Cost Fallacy (continued investment due to past choices), Confirmation Bias (overvaluing information confirming prior beliefs), and Overconfidence Bias (overestimating one's abilities or judgment). Understanding and addressing these biases is critical to enhancing your Behavioral Strategy.

Implementing Behavioral Strategy

At the frontier of Behavioral Strategy, we see three best practices arising: De-biasing techniques, Group decision-making protocols, and Organizational design.

  • De-biasing Techniques: Awareness is the first step towards mitigation. Regular bias-training workshops, cognitive bias checklists, and decision audits can help in recognizing and diminishing cognitive biases.
  • Group Decision-making Protocols: Group decisions help to mitigate individual biases. However, process-driven decisions backed by data and facts should take precedence over intuition. A good practice is to promote a "contrarian" within the team who critically questions strategic choices.
  • Organizational Design: Structural countermeasures such as separation of decision ownership, implementation of risk profiles, and executive-level Performance Management can help to curtail biases at the decision-making level.

Explore related management topics: Organizational Design Performance Management Best Practices Workshops

The Benefits of Behavioral Strategy

Behavioral Strategy offers a unique set of advantages that optimize Strategic Planning and operational efficiency. These include improved decision quality, enhanced risk management, and strengthened organizational adaptability.

Explore related management topics: Risk Management

Transforming Strategic Management: Keys to Success

The transformation to Behavioral Strategy is not an overnight endeavor. It requires commitment to continuous learning and improvement. Here are some keys to success:

  1. Start from the Top: Senior leaders must engage and invest in the transformation.
  2. Create a Learning Culture: Encourage team members to question assumptions and promote a culture of learning.
  3. Embrace Change: Recognize that the journey towards effective Behavioral Strategy involves a process of constant change and adjustment.

Behavioral Strategy is an essential tool for any executive aiming for Strategic Excellence. In our rapidly transforming business environment, recognizing and mitigating cognitive biases can be a key to maintaining a strategic edge over competitors.

Adopting Behavioral Strategy is not about eliminating cognitive biases—they are, after all, a fundamental part of being human. Instead, it’s about implementing strategic practices that help limit their impact on decision-making. By bridging the gap between intent and execution, Behavioral Strategy provides the tools for organizations to navigate the complex and often uncertain landscape of strategic management.

Behavioral Strategy FAQs

Here are our top-ranked questions that relate to Behavioral Strategy.

In what ways can behavioral economics inform the development of more effective leadership training programs?
Behavioral economics informs Leadership Training by leveraging insights into cognitive biases and motivation, improving Decision Making, Engagement, and fostering adaptable, resilient leaders through real-world applications. [Read full explanation]
What metrics or KPIs are most effective in measuring the impact of Behavioral Strategy on organizational performance?
Effective Behavioral Strategy measurement involves Employee Engagement and Productivity Metrics, Decision-Making Effectiveness, and Innovation and Adaptability Metrics, highlighting the importance of a multifaceted approach for organizational performance improvement. [Read full explanation]
How does Behavioral Economics influence the development of sustainable business practices?
Behavioral Economics influences sustainable business practices by leveraging human behaviors and decision-making patterns to design strategies that promote sustainability, profitability, and stakeholder engagement. [Read full explanation]
How can Behavioral Strategy be leveraged to improve diversity and inclusion within the workplace?
Behavioral Strategy enhances Diversity and Inclusion by addressing unconscious biases, fostering Inclusive Leadership, and employing Behavioral Design to create a culture where diverse talent feels valued and empowered. [Read full explanation]

Recommended Documents

Related Case Studies

Improving Behavioral Strategy for a Global Technology Firm

Scenario: A multinational technology company is struggling with decision-making challenges due to limited alignment between its corporate strategies and employee behaviors.

Read Full Case Study

Behavioral Strategy Overhaul for Ecommerce Platform

Scenario: The organization is a mid-sized ecommerce platform specializing in consumer electronics, facing challenges in decision-making processes that affect its strategic direction.

Read Full Case Study

Sustainable Growth Strategy for Boutique Hotel Chain in Leisure and Hospitality

Scenario: A boutique hotel chain, recognized for its unique customer experiences and sustainable practices, is facing a strategic challenge rooted in behavioral strategy.

Read Full Case Study

Behavioral Strategy Overhaul for Life Sciences Firm in Biotechnology

Scenario: The organization is a mid-sized biotechnology company specializing in the development of therapeutic drugs.

Read Full Case Study

Sustainability Integration Strategy for Textile Manufacturer in Southeast Asia

Scenario: A Southeast Asian textile manufacturer, leveraging behavioral economics, faces a strategic challenge in aligning its operations with sustainability practices amidst a 20% increase in raw material costs.

Read Full Case Study

Behavioral Economics Revamp for CPG Brand in Health Sector

Scenario: The company is a consumer packaged goods firm specializing in health and wellness products, grappling with suboptimal pricing strategies and promotion inefficiencies.

Read Full Case Study

Explore all Flevy Management Case Studies




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.



Download our FREE Strategy & Transformation Framework Templates

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