We are not as rational as we like to think.
In the classical model of decision making managers should obtain complete information, eliminate uncertainty and evaluate everything rationally to end up with a decision perfectly balancing the needs of all key stakeholders. In fact most people think this is how they make decisions. In reality none of us have the necessary time, resources or ability to make all of our decisions this way.
70% of all strategic initiatives fail.
Instead most of decisions are flawed and managers are keenly aware of the poor track record among strategic initiatives, where McKinsey research shows a 70% failure rate. What often gets missed is the connection with decision biases – and therefore more importantly how to improve the strategy process.
Strategy process is more critical than analysis.
Analysis is important, but process beats it hands down every time. Sounds like something a bunch of soft process consultants would say right? Well this comes straight from the heart of the most analytical driven company you can find – McKinsey. The typical internal strategy process is a bit of a mess, where lots of data is gathered and hopefully something magical emerges. The more scientific approach is super sharp but it requires a client that knows how to organize the process around the analysis. We have therefore developed the third approach.