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.
Managers are keenly aware of the poor track record among strategic initiatives, where McKinsey research shows a 70% failure rate. What often gets missed in this connection is the strong correlation with decision biases – and therefore more importantly how to improve the strategy process.