How do you make strategic decisions?

Here's how to approach it within a leadership training context, 1. Define the problem & goals, clarity of purpose & align with the organizational vision. 2. Gather information & analyze data by conducting research & considering diverse perspectives. 3. Identify potential solutions & evaluate risks e.g. brainstorm options. 4. Choose the best course of action i.e. logic/intuition & decision-making frameworks. 5. Communicate & implement the decision with clear communication, action plan & resource allocation. By following these steps in leadership training, leaders can develop a more structured & effective approach to strategic decision-making. This leads to well-informed choices that propel their organizations toward achieving their goals.

Cannot be more simpler - how we do it in Quality world today! 1. Identify the Issue: Clearly articulate the problem or goal, ensuring it is specific and measurable. 2. Gather Information: Collect relevant data and insights to understand the context and scope of the problem. 3. Analyze Root Causes: Investigate underlying factors contributing to the issue to address the core problem. 4.Set Objectives: Define clear, achievable objectives that align with your overall vision and mission.

Begin by clearly defining your organization's goals and objectives. This provides a foundation for decision-making aligned with the overarching vision. Evaluate the internal and external factors that may impact your organization. This includes understanding market trends, competitor activities, and any regulatory changes. Involve key stakeholders in the decision-making process. Gathering diverse perspectives can lead to more well-rounded decisions and foster buy-in from relevant parties. Identify potential risks associated with each decision. A thorough understanding of risks allows for proactive mitigation strategies.

Defining a problem can be simplified by expressing it as a gap - a desired future state compared to one's current state in a quantitative form, such as market share, profitability, number of products launched, etc. A key action in the problem definition that helps the team get a better understanding and maximize the chances of identifying the problem accurately is looking and accessing the best available data and evidence.

Combination of gut feel and data - it’s never one thing that drives the decisions . Gut feel is a result of experience and anticipating outcomes with limited data

The utilization of SWOT analysis, in combination with industry and competitor maps, together with PESTEL analysis, is recommended. These matrices facilitate the identification of potential threats and opportunities, as well as the comparison of the company's vulnerabilities and strengths, in order to analyze various strategic scenarios. This approach offers a holistic perspective, hence mitigating ambiguity in problem definition.

Gathering pertinent and reliable information is crucial for understanding situations, stakeholders, and potential solutions. Consider these practices for effective information collection: Diversify sources: Use data, reports, feedback, research, or expert opinions for a comprehensive perspective. Verify reliability: Evaluate the credibility and accuracy of your information sources to ensure well-informed decisions. Analyze limitations: Be aware of information biases and limitations, maintaining a critical viewpoint. Avoid assumptions: Refrain from relying solely on opinions or assumptions without factual support. By employing these techniques, you will efficiently collect valuable information.

To gather relevant and reliable information, you can use the anti-solution technique to brainstorm. Start by asking - ‘How can we ensure we gather the most irrelevant and unreliable information?’ For instance, you might come up with ideas like relying solely on rumors, ignoring expert opinions, or using outdated sources. Once you have a list of these ‘anti-solutions,’ reverse them to identify effective strategies. This might include consulting credible sources, seeking expert advice, and using up-to-date data.

Brain storming is one of the best tools that are out there. One thing that I have learned is we dont know our teams as well as we think. I am continually amazed at the ideas that come out of a good brain storming session. The key is to make sure that all ideas make it to the table. They may not be the best but they sure can be a catalyst for the solution.

I have used a number of tools and matrices to come up with scenarios or alternatives. One of these tools is a simple star chart, which lets us compare current capabilities against those of our competitors. By finding these gaps, we can figure out where we need to work on improving ourselves and what new skills we need to acquire for our future projects. The customer-needs matrix is another way to find areas with room for innovation by looking at what needs are met and what needs aren't, for both current and future customers. Analysis of competition and market dynamics leads to strategic paths that help find gaps and come up with at least three or four hypothesis about future states that are possible, desirable, and in line with goals.

En mi experiencia con líderes resulta muy interesante hacer reuniones de equipo donde se presenten escenarios alternativos. Plan A, B, C porque también permite reforzar la visión (hacia dónde se quiere ir; qué se quiere lograr) obtener ideas grandiosas que pueden tener los teams porque están más en contacto con información que por ahí ellos no estén considerando y también para escuchar y comprender cuáles son los criterios que sus equipos están aplicando para desarrollar alternativas. Poder salirse del lugar de timonel y escuchar para comprender y evitar el juzgar. Entender que el solo hecho de pasar por el proceso de toma de decisiones participando al equipo ya de por si es enriquecedor.

𝐁𝐫𝐚𝐢𝐧𝐬𝐭𝐨𝐫𝐦𝐢𝐧𝐠 𝐒𝐞𝐬𝐬𝐢𝐨𝐧𝐬: Conduct brainstorming sessions with your team to generate a diverse range of potential solutions, encouraging creative and out-of-the-box thinking. 𝐄𝐯𝐚𝐥𝐮𝐚𝐭𝐞 𝐅𝐞𝐚𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲: Assess the feasibility of each alternative by considering factors such as resources, time, and alignment with organisational goals. 𝐑𝐢𝐬𝐤 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬: Perform a risk analysis for each option to understand the potential downsides and prepare strategies to mitigate these risks.

You can run a hypothesis testing to evaluate these options. Formulate hypotheses for each alternative, such as ‘If we implement Strategy A, then customer engagement will increase by 20%.’ Collect data through small-scale tests or simulations to validate or reject these hypotheses, helping you identify the most promising options.

Utilize a decision-making framework, such as cost-benefit analysis or a weighted scoring model, to objectively compare alternatives. You may seek expert help to design the framework based on your unique challenges. Ensure that the chosen alternative aligns with the organization's core values and long-term vision. This helps in maintaining consistency and integrity. Clearly communicate the rationale behind the chosen alternative to the relevant stakeholders. Transparency fosters understanding and support. Please note that flexibility is crucial. The chosen alternative should allow for adaptation as circumstances evolve.

𝐂𝐨𝐦𝐩𝐚𝐫𝐞 𝐎𝐩𝐭𝐢𝐨𝐧𝐬: Evaluate each alternative against your defined objectives and criteria, weighing the pros and cons of each option. 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐈𝐧𝐩𝐮𝐭: Seek input from key stakeholders to gain diverse perspectives and ensure that the chosen alternative aligns with their expectations and needs. 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐌𝐚𝐭𝐫𝐢𝐱: Use a decision matrix or similar tool to systematically compare and rank the alternatives based on critical factors, helping to identify the most effective solution.

Establish KPIs to track the success of the chosen alternative. Regularly monitor these indicators to assess performance. Create channels for feedback from employees, customers, and other stakeholders. This input can inform adjustments to the strategy as needed. Schedule periodic reviews to reevaluate the strategic decision in the context of changing circumstances. This ensures ongoing relevance and effectiveness. Encourage a culture of continuous learning. Analyze both successes and failures to extract valuable insights for future decision-making. Please remember it is an ongoing process and not one time done, depending on dynamic external or internal situations you will need to adopt and implement.

Enhance your strategic decision-making with these unconventional approaches: War-gaming: Simulate potential scenarios to better understand risks and opportunities. Cross-disciplinary Insights: Consult diverse experts for unique perspectives and creative solutions. Erroneous Assumptions Analysis: Challenge norms to uncover disruptive paradigms. Reverse Brainstorming: Identify failure points to devise robust strategies. Intuition Validation: Combine analysis with intuition and seek feedback for validation. By adopting these methods, you can unlock innovative solutions for complex challenges.

A couple of areas not included in the article are: 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: Create a communication plan to inform all relevant stakeholders about the decision, its rationale, and their roles in the implementation process, ensuring transparency and buy-in. 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐏𝐥𝐚𝐧: Develop a detailed implementation plan for the chosen alternative, outlining the necessary steps, resources, and timelines to execute the decision effectively.