This document discusses strategic planning and why it often fails to be implemented successfully. It begins by providing statistics that show most organizations use strategic planning but few implement plans effectively. It then outlines the benefits strategic planning can provide, such as increased survival rates, longevity, sales, and performance. However, it notes that common reasons for failure include using poor practices, like having small planning teams without diverse perspectives or failing to monitor implementation. The document then lists 16 specific strategic planning problems and provides remedies for each.
The business case for Diversity, Equity, and Inclusion (DEI) is growing stronger than ever. During this virtual discussion, we took a closer look at “diversity winners”, which signals that a systematic business-led approach and bold, concerted action on inclusion are needed to make progress.
The Changing L&D Landscape: How Do We Reach Modern Learners?PageUp
There's currently a huge shift happening in organisational learning and development. Today's employees are finding new and different ways to meet their learning needs, through everyday, informal learning delivered in a manner they've become accustomed to in their daily lives - via mobile technology and apps. But do organisations today truly understand the needs of the evolving workforce and are they keeping up with these new learning trends? How should organisations be engaging modern learners to deliver better business results?
Let's explore some important facts regarding these latest developments in workplace learning, and see what key takeaways can be derived to improve learning outcomes at your organisation.
2009_03 Diversity Strategy (Talent Management in Pharma)Uxio Malvido
The document summarizes the agenda for the 3rd Annual Managing Talent in Pharma Diversity Strategy conference held by Merck & Co in Prague from March 19-20, 2009. The topics to be covered include inclusion, demographic trends, female leadership, global constituency groups, the business case for diversity, employer branding, flexibility, and talent management practices. Diversity strategies like the Global Constituency Group model and approaches to managing areas like multicultural diversity, female talent, and flexibility will also be discussed.
An Interesting Panel discussion including senior diversity representatives from KPMG and TD Bank Financial Group followed the opening sessions, focused on how diversity is actually being moved forward in these organizations. Session 1: Dr. Wendy Cukier: The Diversity Lens: Leading Practices in Recognizing the Benefits of Diversity, Session
About 60 participants from around 20 Myanmar and international businesses, as well as LGBT+ rights groups, trade union rights, international organisations, experts and lawyers discussed attended a workshop on 28/29 August at the Rose Garden Hotel, Yangon to discuss how businesses can support LGBT+ equality in Myanmar.
Read more: https://www.myanmar-responsiblebusiness.org/news/lgbt-equality.html
Phaidon International continues the 2017 Inclusive Talent Series in March discussing the challenges faced by women group within STEM industries; Attraction, Retention and Advancement.
This presentation offers highlights from the 2017 Women in the Workplace report by McKinsey & Company and LeanIn.org with solutions companies can take to foster gender equality.
https://womenintheworkplace.com/
Women in the Workplace is a multi-year joint research effort by McKinsey & Company and LeanIn.org and the largest comprehensive study of the state of women in corporate America
The business case for Diversity, Equity, and Inclusion (DEI) is growing stronger than ever. During this virtual discussion, we took a closer look at “diversity winners”, which signals that a systematic business-led approach and bold, concerted action on inclusion are needed to make progress.
The Changing L&D Landscape: How Do We Reach Modern Learners?PageUp
There's currently a huge shift happening in organisational learning and development. Today's employees are finding new and different ways to meet their learning needs, through everyday, informal learning delivered in a manner they've become accustomed to in their daily lives - via mobile technology and apps. But do organisations today truly understand the needs of the evolving workforce and are they keeping up with these new learning trends? How should organisations be engaging modern learners to deliver better business results?
Let's explore some important facts regarding these latest developments in workplace learning, and see what key takeaways can be derived to improve learning outcomes at your organisation.
2009_03 Diversity Strategy (Talent Management in Pharma)Uxio Malvido
The document summarizes the agenda for the 3rd Annual Managing Talent in Pharma Diversity Strategy conference held by Merck & Co in Prague from March 19-20, 2009. The topics to be covered include inclusion, demographic trends, female leadership, global constituency groups, the business case for diversity, employer branding, flexibility, and talent management practices. Diversity strategies like the Global Constituency Group model and approaches to managing areas like multicultural diversity, female talent, and flexibility will also be discussed.
An Interesting Panel discussion including senior diversity representatives from KPMG and TD Bank Financial Group followed the opening sessions, focused on how diversity is actually being moved forward in these organizations. Session 1: Dr. Wendy Cukier: The Diversity Lens: Leading Practices in Recognizing the Benefits of Diversity, Session
About 60 participants from around 20 Myanmar and international businesses, as well as LGBT+ rights groups, trade union rights, international organisations, experts and lawyers discussed attended a workshop on 28/29 August at the Rose Garden Hotel, Yangon to discuss how businesses can support LGBT+ equality in Myanmar.
Read more: https://www.myanmar-responsiblebusiness.org/news/lgbt-equality.html
Phaidon International continues the 2017 Inclusive Talent Series in March discussing the challenges faced by women group within STEM industries; Attraction, Retention and Advancement.
This presentation offers highlights from the 2017 Women in the Workplace report by McKinsey & Company and LeanIn.org with solutions companies can take to foster gender equality.
https://womenintheworkplace.com/
Women in the Workplace is a multi-year joint research effort by McKinsey & Company and LeanIn.org and the largest comprehensive study of the state of women in corporate America
Women in the Workplace: Travelers Conference presentation April 2019McKinsey & Company
The document summarizes findings from a 2018 McKinsey report on women in the workplace in the insurance industry. It finds that while the insurance industry starts with better gender diversity at entry levels compared to other industries, the pipeline leaks for women at higher levels. Specifically, women of color face the steepest drop-off in representation between entry levels and the C-suite. External hiring and promotions also favor men, contributing to the gender gap. The report also examines themes of microaggressions experienced more by women, networks that are less helpful for women's careers, and negative impacts of being a "only" for gender or racial minorities in meetings.
Pepsi co case of study building gender balaned leadership team updatedIcon Group Innovations
PepsiCo's document discusses building gender balanced leadership teams. It outlines PepsiCo's commitment to diversity and inclusion, including achieving parity between women and men in management. It describes key initiatives like talent reviews, mentoring programs, and work-life balance policies. The document also discusses PepsiCo Turkey's journey to increase female representation in leadership, through actions like establishing a task force, conducting surveys, defining flexibility policies, and strong communication. PepsiCo Turkey has seen success, with around 33% female representation in leadership roles.
This document summarizes findings from McKinsey & Company and LeanIn.org's seventh annual research on women in the workplace. Some key findings include:
- 423 companies participated with over 12 million employees surveyed on their workplace experiences.
- Women's representation has declined year-over-year in news and media companies across most levels. Women of color continue to lose ground.
- Women, especially women of color, report higher rates of burnout and are more likely to experience disrespectful microaggressions. They also lack effective allies.
- Women leaders have taken on greater responsibilities supporting employee wellbeing and diversity, though this important work often goes unrecognized.
Changing the Trajectory: How Companies Can Lean In TooMcKinsey & Company
This document summarizes findings from McKinsey & Company's 2018 study on women in the workplace. Some key findings include:
- Women face challenges advancing in their careers, with promotion rates to manager being 21% lower than men. Black women face even greater challenges, with a 40% lower promotion rate.
- While most employees want to stay at their companies, 81% of women who plan to leave cite taking a role at another company as the reason.
- Gender diversity in companies is linked to improved performance, with diverse companies being 15% more likely to outperform industry averages. However, only 28% of women see their companies as adequately representing women in leadership.
Race in the workplace: The Black experience in the US private sectorMcKinsey & Company
McKinsey's Race in the Workplace report 2021 is one of the most comprehensive benchmark studies of Black Americans in the US private sector. It highlights the complexity of the challenge for Black workers by examining Black worker representation and experience.
The document discusses ways to re-engage disengaged employees during difficult times. It notes that engagement levels have dropped significantly for companies that have laid off workers. Top drivers of engagement include actions of senior leadership and direct supervisors. The document provides several suggestions for re-engaging employees, such as asking them what they need to be successful, focusing on their strengths, and using recognition. It also stresses the important role of senior leaders in communicating vision, building trust, and responding to feedback. Organizations can measure the impact of engagement efforts through surveys, anecdotal feedback, and business data.
The Press Forward Discussion: Pipeline to Leadership for Women in NewsMcKinsey & Company
This document summarizes the findings of the 2020 Women in the Workplace report by McKinsey & Company and LeanIn.org, which surveyed over 40,000 employees from 317 companies. It finds that while there has been some progress for women in senior roles, the "broken rung" at the manager level remains. COVID-19 has exacerbated challenges like childcare responsibilities and burnout, particularly for women like mothers and senior-level women. It also highlights difficulties for groups like Black women. Companies are encouraged to offer more flexible work policies and support employee well-being and diversity to help address these issues.
This document discusses the importance of investing in people through effective human capital management practices. It argues that a competent and committed workforce can provide strategic advantages for microfinance institutions. The document outlines some common people challenges faced by MFIs, such as developing future leaders, rapidly developing workforce skills, and fostering knowledge sharing. It also discusses lessons from the recent microfinance crisis in India, highlighting the role of human capital practices. The document then provides recommendations for MFIs to maximize the value of their employees, including hiring the right people, planning for future needs, leveraging strengths, and creating opportunities for learning.
This event showcased the work of the G20 EMPOWER Alliance and the OECD to support the implementation of commitments to strengthen women’s access to leadership positions in the private sector. This presentation shares results from the OECD Corporate Governance Factbook 2021, which features a comparison across all OECD and G20 countries of progress made to enhance the role of women on boards of directors and in senior management.
In 2012 OIWC conducted an industry-wide survey to study perceptions of gender diversity and workplace values. The study serves as the foundation for workplace diversity and inclusion and women's leadership advancement efforts by the OIWC.
In a space as performance-driven and competitive as
the recruitment industry, it is crucial to stay ahead of
the curve. The growth and adoption of new strategies
and technologies is essential for success and is set to
explode in the future.
In an effort to paint a clear, distinct vision of the future of
social recruiting for our users, we asked twenty industry
thought leaders to weigh in on various trends that are
shaping the future of social media in recruitment. These
are their thoughts.
McKinsey Global Survey results: Moving mind-sets on gender diversity: To ens...Lucia Predolin
Moving mind-sets on gender diversity: McKinsey Global Survey results
To ensure that corporate culture supports—not hinders—the ability of women to reach top management, companies must address mind-sets and develop a more inclusive, holistic diversity agenda.
El estudio Global Talent Trends 2019 de Mercer, presentado en el PAD-Escuela de Dirección, muestra las principales tendencias en gestión del talento a nivel mundial para este año. Está basado en el aporte de más de 7300 líderes de RR.HH. de todo el mundo.
As part of Mercer's commitment to providing clients with research-based solutions, Mercer’s employee research group conducts a series of national studies around the globe, entitled What’s Working™.
These studies allow us to analyze national trends regarding employee perceptions and to identify the key drivers of employee engagement – by country and on a global basis.
Women remain underrepresented in corporate leadership. While women earn 57% of college degrees, they hold only 20% of senior roles. They face challenges including unequal pay, lack of support from managers, carrying a larger burden of household work, and perceiving their gender as a disadvantage. However, companies that focus on accountability, flexible work policies, and fair hiring/promotions see faster progress getting more women into management and leadership. Individual actions like calling out bias, sponsoring women, and changing biased language can also help close the gender gap.
In many ways, Asian Americans in the US have had meaningful economic and social impact but they face a number of challenges that have often been overlooked.
One of the great paradoxes of the current economy is a relatively high level of general unemployment among Western economies and simultaneously, a very tight labor market for certain skilled roles. Anecdotes of hiring cycles in the six-month range for specialized developers or designers are not uncommon in software circles, and high-tech manufacturers voice frequent complaints about the lack of skilled talent. The key to solving these hiring challenges is to think differently about the problem. All too often, hiring managers and recruiters default to a “hiring” focused answer, when frequently the real answer lies in development, internal mobility, apprenticeship and long-term career and succession planning. In this session, we’ll talk about how all these pieces fit together and why “hiring for critical roles” is fundamentally the wrong strategy in most cases.
The Strategy Execution Barometer is the largest strategy implementation benchmark in the world. It offers actionable, fact-based information to improve the strategy execution approach. This document offers an introduction.
Strategy execution master class 2017 by jeroen de flander Jeroen De Flander
Brochure strategy execution master class by Jeroen De Flander. This is the official strategy execution certification course endorsed by the institute for strategy execution
Women in the Workplace: Travelers Conference presentation April 2019McKinsey & Company
The document summarizes findings from a 2018 McKinsey report on women in the workplace in the insurance industry. It finds that while the insurance industry starts with better gender diversity at entry levels compared to other industries, the pipeline leaks for women at higher levels. Specifically, women of color face the steepest drop-off in representation between entry levels and the C-suite. External hiring and promotions also favor men, contributing to the gender gap. The report also examines themes of microaggressions experienced more by women, networks that are less helpful for women's careers, and negative impacts of being a "only" for gender or racial minorities in meetings.
Pepsi co case of study building gender balaned leadership team updatedIcon Group Innovations
PepsiCo's document discusses building gender balanced leadership teams. It outlines PepsiCo's commitment to diversity and inclusion, including achieving parity between women and men in management. It describes key initiatives like talent reviews, mentoring programs, and work-life balance policies. The document also discusses PepsiCo Turkey's journey to increase female representation in leadership, through actions like establishing a task force, conducting surveys, defining flexibility policies, and strong communication. PepsiCo Turkey has seen success, with around 33% female representation in leadership roles.
This document summarizes findings from McKinsey & Company and LeanIn.org's seventh annual research on women in the workplace. Some key findings include:
- 423 companies participated with over 12 million employees surveyed on their workplace experiences.
- Women's representation has declined year-over-year in news and media companies across most levels. Women of color continue to lose ground.
- Women, especially women of color, report higher rates of burnout and are more likely to experience disrespectful microaggressions. They also lack effective allies.
- Women leaders have taken on greater responsibilities supporting employee wellbeing and diversity, though this important work often goes unrecognized.
Changing the Trajectory: How Companies Can Lean In TooMcKinsey & Company
This document summarizes findings from McKinsey & Company's 2018 study on women in the workplace. Some key findings include:
- Women face challenges advancing in their careers, with promotion rates to manager being 21% lower than men. Black women face even greater challenges, with a 40% lower promotion rate.
- While most employees want to stay at their companies, 81% of women who plan to leave cite taking a role at another company as the reason.
- Gender diversity in companies is linked to improved performance, with diverse companies being 15% more likely to outperform industry averages. However, only 28% of women see their companies as adequately representing women in leadership.
Race in the workplace: The Black experience in the US private sectorMcKinsey & Company
McKinsey's Race in the Workplace report 2021 is one of the most comprehensive benchmark studies of Black Americans in the US private sector. It highlights the complexity of the challenge for Black workers by examining Black worker representation and experience.
The document discusses ways to re-engage disengaged employees during difficult times. It notes that engagement levels have dropped significantly for companies that have laid off workers. Top drivers of engagement include actions of senior leadership and direct supervisors. The document provides several suggestions for re-engaging employees, such as asking them what they need to be successful, focusing on their strengths, and using recognition. It also stresses the important role of senior leaders in communicating vision, building trust, and responding to feedback. Organizations can measure the impact of engagement efforts through surveys, anecdotal feedback, and business data.
The Press Forward Discussion: Pipeline to Leadership for Women in NewsMcKinsey & Company
This document summarizes the findings of the 2020 Women in the Workplace report by McKinsey & Company and LeanIn.org, which surveyed over 40,000 employees from 317 companies. It finds that while there has been some progress for women in senior roles, the "broken rung" at the manager level remains. COVID-19 has exacerbated challenges like childcare responsibilities and burnout, particularly for women like mothers and senior-level women. It also highlights difficulties for groups like Black women. Companies are encouraged to offer more flexible work policies and support employee well-being and diversity to help address these issues.
This document discusses the importance of investing in people through effective human capital management practices. It argues that a competent and committed workforce can provide strategic advantages for microfinance institutions. The document outlines some common people challenges faced by MFIs, such as developing future leaders, rapidly developing workforce skills, and fostering knowledge sharing. It also discusses lessons from the recent microfinance crisis in India, highlighting the role of human capital practices. The document then provides recommendations for MFIs to maximize the value of their employees, including hiring the right people, planning for future needs, leveraging strengths, and creating opportunities for learning.
This event showcased the work of the G20 EMPOWER Alliance and the OECD to support the implementation of commitments to strengthen women’s access to leadership positions in the private sector. This presentation shares results from the OECD Corporate Governance Factbook 2021, which features a comparison across all OECD and G20 countries of progress made to enhance the role of women on boards of directors and in senior management.
In 2012 OIWC conducted an industry-wide survey to study perceptions of gender diversity and workplace values. The study serves as the foundation for workplace diversity and inclusion and women's leadership advancement efforts by the OIWC.
In a space as performance-driven and competitive as
the recruitment industry, it is crucial to stay ahead of
the curve. The growth and adoption of new strategies
and technologies is essential for success and is set to
explode in the future.
In an effort to paint a clear, distinct vision of the future of
social recruiting for our users, we asked twenty industry
thought leaders to weigh in on various trends that are
shaping the future of social media in recruitment. These
are their thoughts.
McKinsey Global Survey results: Moving mind-sets on gender diversity: To ens...Lucia Predolin
Moving mind-sets on gender diversity: McKinsey Global Survey results
To ensure that corporate culture supports—not hinders—the ability of women to reach top management, companies must address mind-sets and develop a more inclusive, holistic diversity agenda.
El estudio Global Talent Trends 2019 de Mercer, presentado en el PAD-Escuela de Dirección, muestra las principales tendencias en gestión del talento a nivel mundial para este año. Está basado en el aporte de más de 7300 líderes de RR.HH. de todo el mundo.
As part of Mercer's commitment to providing clients with research-based solutions, Mercer’s employee research group conducts a series of national studies around the globe, entitled What’s Working™.
These studies allow us to analyze national trends regarding employee perceptions and to identify the key drivers of employee engagement – by country and on a global basis.
Women remain underrepresented in corporate leadership. While women earn 57% of college degrees, they hold only 20% of senior roles. They face challenges including unequal pay, lack of support from managers, carrying a larger burden of household work, and perceiving their gender as a disadvantage. However, companies that focus on accountability, flexible work policies, and fair hiring/promotions see faster progress getting more women into management and leadership. Individual actions like calling out bias, sponsoring women, and changing biased language can also help close the gender gap.
In many ways, Asian Americans in the US have had meaningful economic and social impact but they face a number of challenges that have often been overlooked.
One of the great paradoxes of the current economy is a relatively high level of general unemployment among Western economies and simultaneously, a very tight labor market for certain skilled roles. Anecdotes of hiring cycles in the six-month range for specialized developers or designers are not uncommon in software circles, and high-tech manufacturers voice frequent complaints about the lack of skilled talent. The key to solving these hiring challenges is to think differently about the problem. All too often, hiring managers and recruiters default to a “hiring” focused answer, when frequently the real answer lies in development, internal mobility, apprenticeship and long-term career and succession planning. In this session, we’ll talk about how all these pieces fit together and why “hiring for critical roles” is fundamentally the wrong strategy in most cases.
The Strategy Execution Barometer is the largest strategy implementation benchmark in the world. It offers actionable, fact-based information to improve the strategy execution approach. This document offers an introduction.
Strategy execution master class 2017 by jeroen de flander Jeroen De Flander
Brochure strategy execution master class by Jeroen De Flander. This is the official strategy execution certification course endorsed by the institute for strategy execution
This document summarizes the findings of Bain & Company's 15th annual Management Tools & Trends survey. It received responses from over 1,000 executives from over 70 countries. The survey tracks the use and effectiveness of 25 popular management tools. It found that customer relationship management remains the most widely used tool, while big data analytics was the most satisfying. It also identified trends in management priorities and tools, such as a focus on revenue growth, increased innovation, and a split between regions in their tool preferences.
Storytelling is crucial to communicate a strategy. Here's a review from of The Execution Shortcut, reproduced by kind permission of the Institute of Internal Communication.
The document discusses the challenges of strategy implementation and why it often fails. It notes that leaders are typically trained in strategic planning but not execution. Some of the top reasons for implementation failure include underestimating the challenge, not aligning the organization to take the right actions, and failing to communicate the strategy effectively. Successful implementation requires engaging employees, creating a sense of urgency, constantly communicating progress and changes, aligning processes to the new strategy, and reinforcing the desired behaviors through performance measurement and culture alignment.
The document discusses Garoto's strategy for achieving excellence in point-of-sale execution across Brazil. Garoto is Nestle's largest confectionery business in Brazil, accounting for 60% of Nestle's sales. Garoto aims to have its products available anywhere and everywhere through its "Loja Perfeita Garoto" strategy, focusing on availability, visibility, and accessibility. The challenge is to build an execution culture among the sales force to ensure the right products are in the right channels, at the right price points, in the right locations, with the right tools. Garoto has the largest sales network in Brazil with over 50 brokers, 200,000 customers, and 1,000 salespeople to execute this strategy nationwide
Book - Thesis-draft 05- FINAL 2015-12-10Msizi Mkhize
This dissertation investigates the design of a Youth Enterprise Hub in Mamelodi, South Africa. It aims to address socio-economic exclusion through a hub that promotes innovation, skills development, collaboration and information access. The document provides background on Mamelodi's deprived context and outlines the urban vision for the hub. It discusses relevant theory, precedents that informed the design, and the design development process. Diagrams and images depict the proposed site plan, program, structural concept, material selection and other technical aspects of the hub.
PEEX Consulting is a consulting firm that provides commercial excellence consulting, training, and other services to pharmaceutical companies. They help clients innovate business processes, integrate initiatives, and inspire change. Their services include skills training, workshops, business intelligence solutions, remote experts, and recruitment/assessment. Their goal is to help clients improve customer engagement and commercial strategies through innovative solutions and training.
This document provides an executive's guide to management tools in 2015. It includes brief descriptions of various management tools and related topics across multiple pages. Some of the tools covered include the balanced scorecard, benchmarking, big data analytics, business process reengineering, change management programs, and customer relationship management.
Optimized Plant Construction (project execution excellence for on-time and on...Nilanjan Bandyopadhyay
3DEXPERIENCE for plant construction
excellence of large size and complex systems:
if we validate, describe and trace the
construction of a plant using its virtual clone,
can we deliver on time and on budget?
The document discusses execution excellence in HR at Airtel Digital TV. It describes how Airtel Digital TV recruited and trained 1600 technicians across 30 locations in 30 days to launch their service. They developed a rigorous training and certification process with a non-negotiable focus on standards and accountability. Through this process, Airtel Digital TV was able to achieve a 99% CSMM score, significantly higher than the industry average of 45%, and maintain that level of customer satisfaction for over 9 months. The document emphasizes the importance of "brave actions" and disciplined leadership to drive big transformations.
The document discusses strategic innovation process and styles. It outlines 12 steps in the strategic innovation process including setting goals, identifying opportunities and threats, capabilities, choosing a profit site, developing business and innovation strategies, functional strategies, globalization strategy, organizational structure, systems and processes, people, and protecting profits. It also describes 5 strategic innovation styles - Spiral Staircase, Cauldron, Fertile Field, Pac Man, and Explorer - that differ in their focus on improving existing models vs developing new solutions and assets.
The document provides information about IBM Business Process Management and Royal Cyber's expertise in this area. It discusses what BPM is and why it is important, as well as Royal Cyber's capabilities in areas like business monitoring, operational decision management, process automation and integrity, and process discovery and design using IBM BPM tools. The document also outlines Royal Cyber's BPM implementation plan, services offerings, support workflow, trainings, and success stories with clients.
This document is a copyrighted and confidential presentation about building execution excellence with program and project management. It discusses how poor execution is a common reason for executive failure. It then provides a case example of how a life insurance company implemented a program management office and project management processes to help align its organization during a business transformation initiative involving multiple projects and programs. The presentation outlines the challenges the company faced and the scope of work involved in the implementation.
Here are a few key points about the importance of strategy implementation:
- Strategy implementation has a substantial impact on organizational performance. It is crucial to organizational effectiveness and critical to an organization's functioning.
- Successful strategy implementation gives an organization a significant competitive edge, especially in industries where unique strategies are difficult to achieve.
- Strategy implementation is even more important in turbulent environments. The ability to implement new strategies quickly and effectively may mean the difference between success and failure for an organization operating in dynamic or turbulent conditions.
- Well-formulated strategies only produce superior performance when they are successfully implemented. The best-made strategies are worthless if they cannot be implemented successfully.
- Strategy implementation is a key concern in managing strategic change
Bain & Company is a global management consulting firm founded in 1973 in Boston by former BCG consultants. It provides advisory services to businesses, non-profits, and governments. Bain faces competition from other top-tier consulting firms like McKinsey, BCG, Monitor Company and LEK Partnership. To grow, Bain must determine whether to focus on traditional advanced markets or emerging developing markets, and whether to rely solely on organic growth or pursue external opportunities like acquisitions or joint ventures. Maintaining its unique "one firm" culture while expanding internationally is also a key challenge.
The survey found that 60% of leaders reported strategic planning plays a very or extremely significant role in developing their organization's strategy. Nearly 60% also said strategic planning is very or extremely important to their organization's success. However, the other 40% attributed less value and importance to strategic planning. Those who emphasized planning's importance were more likely to find it leads to success and use best practices, while the other 40% were less likely to consider risks and opportunities in their planning.
This document discusses planning and leading in business. It begins by outlining the benefits of planning, including providing direction, competitive advantages, and preventing uncertainties. It also notes some costs of planning, such as inflexibility and time consumption. The document then discusses managers' goals and plans, the planning process, and implementing plans. It also examines the nature of leadership, differences between leadership and management, and key components of leading like authority and motivation. The document emphasizes that both planning and strong leadership are important for business success. It concludes by reiterating that understanding planning processes and how to effectively lead employees are vital skills for managers.
The 2012 Strategic Leader Survey exposes "the strategy gap" - why leaders aren't more strategic and why organizations don't plan and implement their plans - and shows how leaders can think and act strategically and instill planning and effective implementation in their organizations.
Download the free report here: http://www.strategicbusinessleader.com/strategicleadersurvey.html
BUS 109 - Strategic Management & Business Policy HandbookPauline Zhou
(Spring 2010) A prepared 84-page handbook for my Strategic Management and Business Policy course; it includes the fundamentals, theories, models, and insights gathered together into this book.
The requirement for this assignment was to put together a 3-page or 50 most important concepts learned throughout the course.
Too many leaders on too many occasions have been involved in too many failures. We have piqued their curiosity. Leaders now want to know what they specifically need to do to successfully drive the strategy execution through the organization.
The document discusses the findings of a survey on strategic planning and decision-making among business leaders. It finds that while most leaders say their organizations have strategic planning processes, strategic decisions are often made by small groups or the CEO. Less than half are satisfied with their organization's strategic decision-making. The survey also found that leaders want to improve how their organizations identify strategic issues and align with strategic plans. Leaders said participating in peer groups, learning from experts, and consulting with strategy consultants could help them strengthen strategic competencies.
Secrets to successful strategy executionAnika Rahman
This document discusses strategies for successful strategy execution. It begins by outlining the building blocks of crafting and executing strategy, including developing vision/mission/values, setting objectives, crafting strategy, execution, and monitoring. It then discusses why strategy often fails, such as lack of communication, accountability, or necessary information. The document presents Harvard Business Review research finding most companies are weak in execution. It provides examples of companies where strategy failed due to these issues. Finally, it outlines a six-step roadmap for strategic execution: describe and measure objectives, prioritize initiatives, take feedback, communicate the strategy, coordinate/integrate efforts across the organization, and link the strategy to budgeting. The overall message is that good strategy plus
This document discusses strategies for successful strategy execution. It begins by outlining the building blocks of crafting and executing strategy, including developing vision/mission/values, setting objectives, crafting strategy, execution, and monitoring. It then discusses why strategy often fails, such as lack of communication, accountability, or necessary information. The document presents Harvard Business Review research finding most companies are weak in execution. It provides examples of companies where strategy failed due to these issues. Finally, it outlines a six-step roadmap for strategic execution: describe and measure objectives, prioritize initiatives, take feedback, communicate the strategy, coordinate/integrate efforts across the organization, and link the strategy to budgeting. The overall message is that good strategy plus
This document provides an overview and review of the book "Translating Strategy into Action" about the Balanced Scorecard management tool. It summarizes the key barriers to effective strategy execution, outlines the four perspectives and pyramid structure of the Balanced Scorecard, describes the implementation process, roles and selection criteria for performance measurements. Examples of metrics for an IT company and a sample scorecard for a strategy are also included, as well as success stories and statistics on companies that have implemented the Balanced Scorecard.
8 Attributes of Highly Aligned, High Impact Teams Deidre Paknad
In a disruptive digital world, strategic agility is crucial but elusive. See how to sustain alignment in a fast-changing world and how it fuels success!
Strategy 301 - Beyond the Basics - 16 Stepsleepublish
1. The document outlines common problems with strategic planning processes, including a lack of external scanning, insufficient execution resources, and plans not being properly reviewed or adjusted.
2. It discusses how strategic planning can contribute to organizational success when best practices are followed and there is strong commitment from leadership.
3. The document proposes that using tools and frameworks for decision-making can help organizations avoid common traps and make better strategic choices.
Portfolio management knowledge development event details are provided, including an agenda for presentations and discussions. Research was conducted to discover effective portfolio management practices, with findings around key process questions and problems organizations face. References are made to other sources that provide guidance on aligning delivery, measurement, and governance cycles, establishing a portfolio management office, and using standards to prioritize projects.
Strategic plans often fail for several reasons: lack of communication about the plan, weak leadership, lack of specific tasks and follow through, and insufficient motivation and buy-in from employees. Common failures include not understanding customers, overestimating resources, poor coordination, lack of management commitment, and failure to manage change or follow the plan over time. Paying attention to these critical factors can help improve strategic planning and implementation.
This document outlines the contents and lessons for a strategic management course. The course is divided into 6 units that cover topics such as the business system, strategic analysis, corporate and growth strategies, mergers and acquisitions, strategy implementation, and enterprise resource planning software. Specific lessons within the units address objectives of the business, SWOT analysis, corporate strategy formulation, portfolio analysis, diversification, joint ventures, organizational structure, and leadership. The document provides examples of strategic objectives and frameworks for analyzing a company's competitive environment and strategic positioning such as Ansoff's matrix, Porter's five forces, and Bowman's strategy clock. Overall, the course aims to equip students with tools and concepts for strategic analysis and strategic management.
This document discusses common challenges that managers face with developing and executing strategy. It summarizes research that identified the top 10 strategy challenges faced by managers. The most commonly cited challenge is a lack of time to think strategically due to being overwhelmed with daily tasks. Other significant challenges include gaining commitment to the strategy from employees and establishing clear priorities. The document emphasizes the importance of strategic thinking and overcoming these challenges, as effective strategy is critical to business success and poor strategy can lead to prolonged underperformance or bankruptcy.
How can we help our business with Strategic Planning?-Herta M ShikapwashyaHertaMarthaShikapwas
If you are looking for the strategic Planning expert, just connect with Herta M Shikapwashya. She help businesses by giving them unique ideas to promote their business. She helps you to manage budget, customer engagement.
This presentation is about Employee Engagement Survey process and how it is carried out in the organisation. This presentation takes demo figures for understanding of the presentation
This document discusses strategic planning and its importance as a management tool. It provides details on strategic planning processes, including analyzing the external environment, developing shared visions and goals, creating strategic and operational plans, and identifying objectives, resources, risks and timelines. The key points are that strategic planning helps organizations anticipate and plan for the future, guides tactical decision-making, and is an important process for setting goals and allocating resources to achieve them.
Similar to Why Strategy Fails...and How You Can Make it Work (20)
3. #1
Bain & Company ManagementTools Survey, 2013
Strategic planning today
most used business tool
- globally!
4. but just 45%
of organizations use it.
Bain & Company ManagementTools Survey, 2013
Strategic planning today
5. 58%of leaders
say it’s extremely or
very important in their
organization’s success.
Forrest Consulting Strategic Leader Survey, 2013
Strategic planning today
6. but 42%of leaders say
planning is not important
to the success of their
organization.
Forrest Consulting Strategic Leader Survey, 2013
Strategic planning today
7. 74%of leaders say
their organization doesn’t
use a formal planning
process to make
strategic decisions.
Forrest Consulting Strategic Leader Survey, 2012
Strategic planning today
8. 70%of organizations
with a plan fail to
implement it.
Balanced Scorecard Collective
Strategic planning today
10. “Doubles likelihood of SURVIVAL.”
Noel Capon and James M. Hurlburt, Columbia University,
and John U. Farley, University of Pennsylvania, 1994
“Increases company LONGEVITY.”
J. Berman, D. Gordon, and G. Sussman, study of 555 small firms, 1997
“12% greater increase in SALES”
when “top management had a high
commitment to planning.”
M3 Planning, study of 280 companies
The case: survival and growth
11. “Strategic planning has a positive
effect on PERFORMANCE, both in
quantitative and qualitative terms.”
Correlation coefficients with strategic planning:
Earnings per common share +0.79 Attainment of profit objectives +0.51
Return on invested capital +0.64 Community acceptance +0.48
Return on owner’s investment +0.58 Service efficiency +0.47
Change in return on invested capital +0.56 Attainment of corporate objectives +0.44
Return on net worth +0.42
Anders McIlquham-Schmidt, Aarhus University, 2010. A meta-analysis of 45 years of
research involving 88 studies representing a total sample size of 32,472 observations.
The case: performance
12. Evidence showsts strategic planning
also brings INTANGIBLE BENEFITS.
Optimizes growth and development
Looks ahead
Anticipates threats
Capitalizes on opportunities
Sets priorities
Identifies resources needs
Focuses resources
The case: other benefits
39. 69% form a planning team of
eight or fewer individuals.
Bad practices: Planning team
Forrest Consulting Strategic Leader Survey, 2013
34% don’t include Directors or
other stakeholders on the team.
40. 57% say strategic decisions are
made by the CEO or a small group.
Forrest Consulting Strategic Leader Survey, 2012
Bad practices: Involvement
64% say their process doesn’t
ensure those who carry out strategy
are involved in making it.
41. Forrest Consulting Strategic Leader Survey, 2012
Bad practices: Involvement
47% say planning discussions
don’t include the most knowledgeable
and influential participants.
47% don’t report on planning
progress and the final plan to the
wider organization.
42. 56% don’t gather pre-planning
input from stakeholders.
Bad practices: Input
Forrest Consulting Strategic Leader Survey, 2013
49% don’t develop information
on the external environment.
43. 39% want better use of market
and competitive intelligence.
Bad practices: Input
Forrest Consulting Strategic Leader Survey, 2013
44. 58% don’t believe their process
assesses risks as well as benefits.
Bad practices: Process
47% don’t develop specific action
steps for implementing each strategy.
45. 64% say their organization has
too many conflicting priorities.
Bad practices: Strategies
Forrest Consulting Strategic Leader Survey, 2013
46. 46% don’t include plan review,
reporting and adjustment.
Bad practices: Implementation plan
Forrest Consulting Strategic Leader Survey, 2013
46% don’t assign responsibility for
implementing tactics to individuals.
47. 41% don’t include the next plan
update/ re-planning time.
Bad practices: Implementation plan
Forrest Consulting Strategic Leader Survey, 2013
28% don’t assign responsibility for
implementing tactics to individuals.
48. 38% don’t report implementation
and performance to the executive team
at regular intervals.
Bad practices: Reporting
Forrest Consulting Strategic Leader Survey, 2013
61% don’t report regularly to the
wider organization on plan
implementation and performance.
.
49. 36% don’t track plan performance
against measurable objectives.
Bad practices: Tracking
Forrest Consulting Strategic Leader Survey, 2013
53% don’t track implementation
against a pre-set timeline.
.
50. 60% don’t link strategy
and budgeting.
Balanced Scorecard Collective; Forrest Consulting Strategic Leader Survey, 2012
Bad practices: Resource allocation
42% are challenged to
allocate resources in a way
that really supports the strategy.
52. 1. Only top
management is
involved.
PROBLEM
Employees and
stakeholders know little
about the plan: It’s not
theirs. Little or nothing
happens.
REMEDY
Make the planning
process inclusive. Use
surveys, town meetings,
drafts, representation
and sounding boards.
2. Not looking
externally.
PROBLEM
The plan produces sub-
optimal results, is not
transformative, and can
put the organization on a
bad course.
REMEDY
Conduct an environmental
scan to find relevant
trends and forecasts. Use
results in visioning, gap
analysis, strategy making.
3. Execution
resources are
lacking.
PROBLEM
Implementation is
ineffectual or dies
because people, funds
and other resources are
not in place.
REMEDY
Assess resources.
Develop strategies and
action steps based on
resources. Link execution
to the annual budget.
16 strategic planning problems
53. 4. Little or no
progress after
initial efforts.
PROBLEM
Implementation starts
with a bang, but then
fizzles. “Don’t we have a
plan somewhere?”
REMEDY
Use progress reviews and
communication.
Spotlight execution so
employees don’t fall back
to operational activities.
5. No bounds.
PROBLEM
In the name of the vision
everything becomes
important. People go on
tangents, wasting energy,
attention and resources.
REMEDY
Rein in any initiative not on
the lists of strategies and
action steps, unless it
should have been listed or
is essential for operations.
6. Grandiosity.
PROBLEM
The vision sees a grand
future, but the
organization can’t reach
it. Strategies can't
produce needed results.
REMEDY
Ground the plan on
stakeholder input and an
environmental scan.
Seek input on the draft
plan and stress test it.
16 strategic planning problems
54. 7. No commitment.
PROBLEM
Leaders pretend to
embrace planning, but
don’t think real change is
needed. The resulting
plan sits on the shelf.
REMEDY
Use credible sources and
cases, benchmarking,
trends and forecasts to
stress the need for
change and planning.
8. Complexity.
PROBLEM
The plan is filled with
strategies and action
steps. It’s unclear what's
most important. Execution
falls short.
REMEDY
Keep it simple! Limit the
number of strategies to a
handful. Prioritize and
phase action steps.
9. No coordination.
PROBLEM
Units implement using
their own lenses. No
coordination. Execution
is disjointed and results
are unintended and poor.
REMEDY
Show dependencies and
communicate among
units. Coordinate through
meetings, reports, cross
teams and a dashboard.
16 strategic planning problems
55. 10.The leadership
is clueless.
PROBLEM
Leaders have no insight
on execution and results.
Implementation goes off
track; the organization
drives off the road.
REMEDY
Set up measures, a
dashboard and reporting.
Track execution and its
effect and results through
regular review sessions.
11.Habit.
PROBLEM
The habits and rhythm of
people and organizations
are hard to change. In
spite of the plan, direction
and results don’t change.
REMEDY
Apply an “unbalanced
force.” Implementation is
organizational change
management. Build
commitment to execution.
.
12. Pretending.
PROBLEM
The plan exists only to
deceive others. No real
plan is being executed.
No change or
improvement results.
REMEDY
Stakeholders need to
appraise the plan to
assure it isn’t “window
dressing.” Speak up if the
plan is only for "show."
16 strategic planning problems
56. 13.Resisting new
activities and
roles.
PROBLEM
Key people resist
changing activities and
roles. Implementation
actions don’t occur,
despite general buy-in.
REMEDY
Assign responsibility for
action steps. Visibly track
implementation by party.
Don’t let naysayers block
needed change.
14. No marching
orders.
PROBLEM
People, teams and units
are unclear about their role
in execution. Strategies
that look good on paper
don’t get implemented.
REMEDY
Develop and cascade
specific action steps for all
organizational levels and
units.
.
15. The
unexpected.
PROBLEM
Something big and
unanticipated occurs,
e.g. 9-11. The plan won’t
work or the vision is not
obtainable or desirable.
REMEDY
Use scenario planning to
game out responses to
likely situations. Restart
planning from where the
current plan is derailed.
16 strategic planning problems
57. 16.One and done.
PROBLEM
Implementation stops
after the first year. The
investment in planning is
squandered. The level of
change is minimal.
REMEDY
Treat strategic planning
and implementation as a
core process. Build annual
assessment and re-
planning into the plan.
16 strategic planning problems
62. Undecidability
Leap of faith needed because
we never can know enough
Decisions are always a leap of faith
Undecidability
“Strategic decisions are always about action under
contingency and uncertainty” Andreas Rasche
63. UnknowabilityWe can never know enough
Unknowability
?
? ?
“Not only must the person taking the decision not know everything…
the decision must advance towards a future which is not known,
which cannot be anticipated” Jacques Derrida
64. Problems seeing the futureDecisions are about the future
Problems seeing the future
65. Problems seeing the futureMental traps lead to bad decisions
Errors, biases,
shortcuts,
fallacies and
traps that lead
us into making
bad decisions
Psychological
Perception
Memory
Logic
Physiological
Social
66. Problems seeing the futurePsychological traps
“Processing problems”
Errors occurring as a result of our
cognitive biases and mental shortcuts
that can lead to systematic deviations
from logic, probability or rational choice.
67. Problems seeing the future165 psychological traps
Adaptation level
Ambiguity effect
Anchoring effect
Anecdotes before data
Availability Heuristic
Backfire effect
Bad news avoidance
Belief bias
Belief bias
butterfly effect
Buyer's Stockholm Syndrome
Categorization
Choice blindness
Choice overload
Choice-supportive bias
Cognitive dissonance avoidance
Commitment heuristic
Confirmation bias
Conflicts Create Productive Change
Trap
Conservatism (Bayesian)
Consistency bias
Cumulative advantage
Current Moment Bias
Decision paralysis
Decoy effects
Default option
Denomination effect
Denominator neglect
Disconfirmation bias
Distinction bias
Distinction bias
Dunning–Kruger effect
Duration neglect
Egocentric bias
Ellsburg paradox
Emotion
Endowment effect
Epistemic arrogance
Escalation of commitment
Exaggerated expectation
Experimenter's or expectation bias
Fading affect bias
False causality
Familiarity heuristic
Focalism
Focusing effect
Force Can Do It Trap
Forer effect or Barnum effect
Forever Changeless Trap
Framing
Frequency illusion
Functional fixedness
future blindness
Hard–easy effect
hindsight bias
Hostile media effect
Hyperbolic discounting
IKEA effect
Illusion of certainty
Illusion of control
Illusion of external agency
Illusion of truth effect
Illusion of validity
Immune neglect
Impact bias
Impulsivity
inability to predict impact on self and
others
Inability to self assess
Information bias
investment trap
Irrationality
Isolated Problem Trap
Leniency error
Loss aversion
Loss avoidance
Matthew effect
Medium-maximization
Mere exposure effect
Money illusion
Moral credential effect
Moral luck
More Is Better Trap
Myopic loss aversion
Naïve diversification
Naive realism
Narrow framing
Negativity Bias
No Limits Trap
Normalcy bias
Not invented here
Not using the unconscious
Observational Selection Bias
Observer effects
Observer-expectancy effect
Omission bias
Opportunity costs
Optimism bias
Order effect
Ostrich effect
Outcome bias
Overconfidence effect
Paradox of choice
Pessimism bias
Placebo effect
Planning fallacy
Positive expectation bias
Positivity effect
Post hoc interpretation
Post purchase rationalization
Power
Preferential attachment
Present bias
Primacy effects
Priming effects
Primus inter pares effect
Probability matching
Probability neglect
Process-Event Trap
Pro-innovation bias
Pseudocertainty effect
Recency effects
Reframing
Regret
Relativity trap
Representativeness Heuristic
Restraint bias
Rewards
Rhyme as reason effect
Risk blindness
Risk averse
Risk compensation / Peltzman effect
Risk seeking
Scandal of prediction
Scarcity
Scarcity heuristic
Scope neglect
Selective perception
Self deception
Self-serving bias
Semmelweis reflex
Serial position effects
Similarity matching
Single Effect Trap
Solve It by Redefining It Trap
Status-Quo Bias
Stereotypes
Subject-expectancy effect
Subjective validation
Suggestibility
Survivorship bias
System justification
Telescoping effect
There's Got to Be a Winner Trap
Time-saving bias
Tournament effect
Unawareness of cognitive process
Unawareness of thought
Underestimating the importance of
luck
Unit bias
Unknowledge
Useless introspection
Vivid representation
Well travelled road effect
Zero-risk bias
Zero-sum heuristic
68. Problems seeing the futureExamples of psychological traps
•When we are trying to determine how likely something is, we often base such
estimates on how easily we can remember similar events happening in the past.
Availability Heuristic
•We subconsciously begin to ignore or dismiss anything that threatens our world view,
since we surround ourselves with people and information that confirm what we think.
Confirmation Bias
•We tend to make risk-averse choices if the expected outcome is positive, but to make
risk-seeking choices to avoid negative outcomes.
Pseudocertainty Effect
•We tend to overweigh or underweigh evidence based on the order in which it is
presented. But if the order is meaningless, it should not affect our strength of belief.
Serial Position Effects
•Being apprehensive of change, we often make choices that guarantee things will
remain the same, or change as little as possible. This leads to the often unwarranted
assumption that another choice will be inferior or make things worse.
Status-Quo Bias
69. Problems seeing the futurePerception traps
“Input problems”
Effects and errors in the organization,
identification, and interpretation of sensory
information we use to represent and
understand the environment around us.
71. Problems seeing the futureExamples of perception traps
•Sometimes we don't recognize that we've made an interpretation of information that
could have been interpreted in many other ways.
Fundamental Cognitive Error
•We tend to perceive not the sum of an experience but the average of how it was at its
peak (e.g. pleasant or unpleasant) and how it ended.
Peak-End Rule
•Colorful, dynamic, or other distinctive stimuli disproportionately engage our attention
and accordingly disproportionately affect our judgment.
Salience Biases
• We often fail to notice unexpected stimuli in the world around us.
Inattention blindness
•We have difficulty recreating a past state from current results. We tend to think that
the form we have in our mind is the one we are observing, yet multiple theories and
distributions can fit a set of data.
Inverse Problem
72. Problems seeing the futureMemory traps
“Storage and recall problems”
Errors from the process in which
information is encoded, stored, and
retrieved from our brain.
74. Problems seeing the futureExamples of memory traps
•Confidence is not a good indicator that our memory is accurate. False memories can
be expressed with confidence, detail and emotion, with the same characteristics as
true memories, and can mislead us into thinking that something is real when it's not.
False Memory Reconstruction
•We tend to remember high values, likelihoods, probabilities and frequencies as lower
than they actually were and lower ones as higher than they were. Often, memories are
not extreme enough.
Regressive Bias
•We remember self-generated information best. We are better able to recall memories
of statements we have made than similar statements made by others.
Generation Effect
•Our predictions of future experiences are often based on memories of related past
experiences. Because memory is fallible, this creates biases in our predictions.
Memory Bias
• Our memories of the past often paint it as better than it really was.
Rosy Retrospection
75. Problems seeing the futureLogic traps
“Reasoning problems”
Errors arising from making fallacious
arguments that are deductively invalid or
inductively weak or that contain an unjustified
premise or ignore relevant evidence.
76. Problems seeing the future80 logic traps
100% effect
A priori problem
Ad hoc rescue
Affirming the consequent
Anecdotal evidence
Appeal to ignorance
Appeal to money
Base-rate neglect
Be fair….in the middle
heuristic
Begging the question
Biased generalizing
Black Swan blindness
Certainty bias
Circular reasoning
Clustering illusion
Common cause
Concorde fallacy
Confusing an explanation
with an excuse
Congruence bias
Conjunction fallacy
Converse Accident
Denying the antecedent
Exclusive alternatives trap
Expert problem
Explosive forecasting
difficulty
Fallacy of origins
Fallacy of silent evidence
Fallacy of virtues
False analogy
False dilemma
Faulty comparison
Faulty generalization
Fooled by randomness
Gambler’s fallacy
Genetic fallacy
Group think
Guilt by association
Hasty generalization
Hot-hand fallacy
Inconsistency
Inductive conversion
Insensitivity to sample size
Insufficient statistics
Interview illusion
Irrational escalation
Jumping to conclusions
Lay rationalism
Less-is-better effect
Line-drawing
Ludic fallacy
Narrative fallacy
Non Sequitur
Not averaging
Not thinking statistically
Opposition
Persistence of commitment
Prediction with limited
experience and information
Pro rata bias
Problem of induction
Prosecutor's fallacy
Regression
Regression toward the mean
Retrospective distortion
Reversing causation
Reversion to the mean
Round trip fallacy
Rule-based decisions
Sample bias
Selection bias
Selection factors
Self reference problem
Source confusion
Statistical regress argument
Subadditivity effect
Subjective probability
Sunk-cost fallacy
Texas sharpshooter fallacy
Traditional wisdom
Type 1 error
Type 2 error
Undecidability
77. Problems seeing the futureExamples of logic traps
•We are vulnerable to overinterpreting facts and prefer stories. We find it difficult to
look at a set of facts without seeing an explanation for them or forcing a logical
relationship among them. This wrongly increases our impression of understanding.
Narrative Fallacy
•When we assess the probability of a future event, we tend to ignore less conspicuous
background evidence in favor of the case-specific information obvious at the moment.
Base-Rate Neglect
•We engage in faulty reasoning when we require or accept that a choice must be made
among a short menu of options.
False Dilemma
•We tend to persist in achieving a goal due to our already committed investment, even
when the prognosis is poor. By continuing, we justify our previous decision and avoid
loss based on the confidence we made a good bet, whether or not this is the case.
Sunk-Cost Fallacy
•We don't reconize that systems involving luck revert to the mean for the group over
time. An extreme outcome is more likely to be followed by one closer to the average.
Reversion to the Mean
78. Problems seeing the futurePhysiological traps
“Limbic system problems”
Mental processing and judgment
shortfalls caused by physical factors that
affect the function of our brain, such as
arousal, depression and fatigue.
79. Problems seeing the future5 psychological traps
Chemical arousal
Decisions fatigue
High stress
Sleep deprivation
Stimulated limbic system
80. Problems seeing the futureExamples of physiological traps
•Our brain gets tired just like a muscle. When our brain is exhausted, we tend to make
worse decisions.
Decision Fatigue
•Use of alcohol or drugs (prescription, over the counter, in food - such as caffeine in
coffee - or recreational) can lead to a higher than normal rate of perception errors and
bad decisions.
Chemical Arousal
•Stress releases chemicals into our blood stream that cause us to make greater than
normal perception errors that can lead to bad decisions.
High Stress
•Getting too little sleep can lead to a higher than normal rate of perception errors and
bad decisions.
Sleep Deprivation
•A stimulated limbic system, whatever the cause, can lead to a higher than normal rate
of perception errors and bad decisions.
Stimulated Limbic System
81. Problems seeing the futureSocial traps
“Interpersonal problems”
Biases and errors stemming from how we
view and interact with the people around us,
with causes including social categorization,
in-group favoritism, prejudice,
discrimination, and stereotyping.
82. Problems seeing the future45 social traps
Above average effect
Actor–observer bias
Authority
Availability cascade
Bandwagon Effect
Bias blind spot
Bystander apathy
Curse of knowledge
Defensive attribution
hypothesis
Egocentric bias
Empathy gap
Essentialism
Extrinsic incentives bias
False consensus effect
Foot-in-the-door technique
Fundamental attribution error
Group attribution error
Group polarization effect
Halo effect
Identifiable victim effect
Illusion of asymmetric insight
Illusion of transparency
Illusory superiority
Independent Self Trap
Inevitable Antagonism Trap
Ingroup bias
Just-world hypothesis
Lake Wobegon effect
Liking
Low-ball procedure
Naïve cynicism
Negativity effect
Outgroup homogeneity bias
Projection Bias
Reciprocation
Sense of relative superiority
Shared information bias
Social comparison bias
Social desirability bias
Social proof heuristic
Spotlight effect
Superiority bias
Trait ascription bias
Ultimate attribution error
Worse-than-average effect
83. Problems seeing the futureExamples of social traps
•We tend to bond with our in-group and to be suspicious, fearful, and disdainful of
others. We overestimate the abilities and value of our in-group members over others.
Ingroup Bias
•We find it difficult escape the bounds of own consciousness and preferences. We tend
to assume most people think just like us — even without justification for it.
Projection Bias
•Most of us demonstrate flawed self-assessment skills. We tend to overestimate our
own abilities, competencies and characteristics, and underestimate our undesirable
qualities, especially as compared to how others assess us.
Illusory Superiority
•Our collective belief in something can gain more and more plausiblity through a self-
reinforcing process of increasing public repetition - even without more evidence.
Availability Cascade
•A group tends to focus more on discussing information that all members are familiar
with and less on discussing information that only some members are aware of.
Shared Information Bias
89. Problems seeing the futureDecision making tools
•We use two mental systems to make decisions:
System 1- Quick, primitive, and automatic, e.g. fight
or flight reaction.
System 2 - Careful, calculated and conscious.
Performs complex computations, exercises self
control.
•For strategy, slow down and engage System 2.
Impulsive, reactive decision making has no place in
strategy creation and execution.
Use System 2 to make
strategy decisions
90. Problems seeing the futureDecision making tools
•Our natural tendency is to immediately fit facts to a
simple story: the "narrative fallacy."
•"Favor experimentation over storytelling, experience
over history, clinical knowledge over theories" (Taleb)
•Seeking more evidence in lieu of forming an opinion of
the situation can avoid jumping to the wrong
conclusion and over-reliance on anecdote.
•"It is a capital mistake to twist facts to suit theories,
instead of theories to suit facts." (Sherlock Holmes)
Look for evidence
before hypothesizing
91. Problems seeing the futureDecision making tools
•Question your intuition. "The voice of reason may be
much fainter than the loud and clear voice of an
erroneous intuition.” (Kahneman)
•Find another scenario to explain the evidence.
Seeking alternative explanations can help avoid traps
such as group think and hasty generalization.
•"We know…that for people to let go of information
they have initially encoded, the best way to achieve
that is to provide them with an alternative explanation
for the same situation." (Lewandowsky)
Look for an alternative explanation
92. Problems seeing the futureDecision making tools
•We can be "primed" by an initial piece of information
(valid or not) in making comparisons and decisions.
•Comparing an anchor value to options only shows the
differences between options, not each one’s worth.
•Recognize anchoring to avoid bait and switch, decoy
effects and other framing traps.
• Anchoring on "a likely initial elementary event...leads
to unwarranted optimism in the evaluation of the
likelihood that a plan will succeed or that a project will
be completed on time.” (Kahneman and Tversky)
Recognize and eliminate anchoring
93. Problems seeing the futureDecision making tools
•We avoid averaging in decision making, in part due to
traps such as authority (leader knows best), false
consensus (we think alike), and illusory superiority
(I'm smarter).
•Averaging multiple judgments "yields an estimate
more accurate than its individual components, on
average." (Krueger and Chen)
•Accuracy is better even when averaging two estimates
by the same person. “As aggregation raises accuracy,
“correspondence rationality” is enhanced and the risk
of being wrong is reduced." (Krueger and Chen)
Average multiple judgments
94. Problems seeing the futureDecision making tools
•The base rate is prior knowledge about the probability
of something (e.g. 50% of all commercial airline
crashes with fatalities were caused by pilot error).
•"Base rate neglect" is ignoring the base rate in
making assumptions and predictions (e.g. assuming
Malaysian Airlines flight 370 crashed due to sabotage
ignores the base rate: The first assumption should be
pilot error).
•In decision making, people often focus on irrelevant
information rather than considering prior knowledge of
the probability that something will occur.
Use the base rate
95. Problems seeing the futureDecision making tools
•In systems involving luck (think investing), results over
time cluster around the mean (average) outcome.
•Not looking for "reversion to the mean" is a trap: We
see an outcome that in reality is extreme and unlikely
to occur again, but we tend to predict it will recur.
•We don't recognize that with some luck involved the
next outcome will most likely be "average," not
extreme (e.g. above average performance for three
years will more likely be followed by average
performance the next year, all things equal).
Consider luck
96. Problems seeing the futureDecision making tools
•When developing a vision or strategies, avoid the false
dilemma trap - requiring or accepting that a choice
must be made among limited options. Use a technique
such as brainstorming to develop more options.
•But beware of the paradox of choice: Too many options
can inhibit decision making (e.g. when seniors are
offered many Medicare drug plans, they may “choose
on the basis of irrelevant features, because relevant
features are too complex to evaluate”). (Schwartz)
•Use a multi-voting technique such as N/3 to narrow a
long list of options.
Generate options, but don't overload
97. Problems seeing the futureDecision making tools
•“…the smartest thing you might ever do is bring
people together who will inspect your thinking and who
aren't afraid to challenge your ideas." (Fast)
•Power can lead to bad decision making. It's "a self-
esteem enhancing drug that surges through the brain
telling you how great your ideas are. This leaves the
powerful vulnerable to making overconfident
decisions that lead...to dead-end alleys." (Galinsky)
•Having others inspect our thinking can counter traps
such as naive realism, self deception, the Dunning-
Kruger and ostrich effects, as well as logic errors.
Have others challenge your thinking
98. Problems seeing the futureDecision making tools
•The meaning of a situation or set of circumstances
comes from the frame in which we view it. Reframing
the "facts" gives the situation new meaning.
•Reframing shifts reference points (e.g. anchoring) or
presents a situation or choices differently. It changes
our approach and offers new possibilities for action.
•To reframe, look at it another way. Reverse the
meaning (e.g. "empty" means "ready to fill").
Redefine, emphasize or downplay words and actions
(e.g. an impossibility can become a possibility).
Reframe for change
99. Problems seeing the futureDecision making tools
•A sunk cost is already paid: It can't be recovered.
•In the sunk cost fallacy, we consider past costs - not
future costs and benefits - to decide if we will continue
an activity or invest more, even in a losing proposition.
•It's "a wasteful loop of behavior because of your fear
of loss."(McRaney) "People tend to have a much
stronger preference for avoiding losses than for
acquiring gains." (Kahneman and Tversky)
•Escalation of commitment to an activity based on sunk
costs can block needed change and limit innovation.
Discount sunk costs
100. Problems seeing the futureDecision making tools
•We often don't recognize that when we do anything we
are paying an “opportunity cost” for our choice,
because we could have done something else instead.
•Opportunity costs are not only financial; they can
involve output, time, pleasure - any benefit or value.
•We don't ask: “Do we want to do something else?”
•The opportunity cost of a choice is the value of the next
best alternative, given our limited resources.
•Considering opportunity costs in strategy decisions
helps ensure wise use of scarce resources.
Consider opportunity costs
101. Problems seeing the futureDecision making tools
•Statistical analysis can give false conclusions due to
loose confidence intervals, skewed distributions, bad
assumptions and data, and unrepresentative samples.
•Instead, use Bayesian inference: Identify probabilities
with degrees of beliefs (e.g. If rain has 0.9 probability,
consider the possibility of rain extremely likely).
•Bayesians revise predictions in light of new evidence.
Bayesian analysis assigns a probability to each
possible outcome using available evidence. With more
evidence, the probability for each outcome is revised.
Be a Bayesian
102. Problems seeing the futureDecision making tools
•"Leaders must direct a learning process from which
they also learn." (Beer and Eisenstat)
•Strategy creation and execution is a major exercise in
learning and change.
•Planning as group learning combats shared
information bias and narrow framing (evaluating
options singularly rather than as part of a portfolio).
•"Learning in the process of strategic planning leads to
increased effectiveness of anticipation and
implementation." (Schäffer and Willauer)
Lead a learning process
103. Problems seeing the futureDecision making tools
•Use a checklist to assure the quality of strategy
decisions. Assess the quality and independence of
information, the possibility of group think, the leader's
influence and how group consensus was postponed
and judgments were kept independent. (Kahneman)
•Simulate or “war-game” proposed strategy "to identify
risks and opportunities and facilitate change." (Paton)
•Do a plan pre-mortem to see how it might fail. (Klein)
•Learn from your mistakes: Keep score on the quality of
your strategy decisions. (Kahneman)
Check it off, simulate, keep score
104. Lee Crumbaugh, SMP
President, Forrest Consulting, Glen Ellyn, IL, USA (Chicago)
President,Association for Strategic Planning (2014-2016)
leec@strategicbusinessleader.com
www.forrestconsult.com
Presenter