Making sound strategic decisions establishes a foundation for future company success. Yet, research indicates that today as many as 50% of strategic decisions fail. And other research shows that 80% of the decline in shareholder value is related to strategic errors! However, with the right tools, strategic issues can be successfully addressed.
Poor strategic-decision making can have dire consequences.
The International Best-Selling book, Stratification: How strategic-decision processes will create sustainable competitive advantage provides a framework for efficiently implementing strategic decisions in your organization. Implementing this framework will help you develop a strategic-decision competency. And since most of your competitors lack a strategic decision-making competency, you will have an advantage over them. By applying this new framework whenever you face a strategic issue, your advantage is sustainable.
Stratification: How strategic-decision processes will create sustainable competitive advantage is a focused, practical guide for executives looking to drive strategic decisions effectively and efficiently.
Why I Wrote This Book
My belief is that companies make strategic decisions poorly. Stratification supports this belief by pointing out the many hurdles that hamper strategic decision effectiveness. You will learn that many corporate leadership teams are biased against strategic decision-making, based largely on myths. This book also explains that in the absence of a defined strategic decision process, business executives implement haphazard and sub-optimal approaches to strategic issues. The result? Missed growth opportunities and failure to resolve threats.
There are other reasons so many strategic decisions result in poor outcomes. Rational decision-making, especially in a team environment, is usurped by bad framing of the issue, incomplete understanding of the critical factors involved, poor data, emotion, power and politics. Finally, there are both executive tendencies and group dynamics that pose barriers to effective strategic decision-making.
Stratification introduces a new strategic decision approach called the Lean Strategic Decision Model®. Using LSDM helps corporations implement a process that promotes a strategic decision competency. LSDM was founded on the time-tested principles of Lean Manufacturing: eliminating waste, examining business activity differently, and creating value with less effort.
Unsure whether your company needs to implement a new strategic decision process? Here are a few symptoms to watch out for:
- Strategy meetings getting nowhere
- Analysis of the issues seems capricious
- Political agendas hamper strategic decisions
- Poor strategic decision track record
- Strategies that emerge are uncreative
- After the book introduction chapter 1 defines terms specific to the Lean Strategic Decision Model®. This chapter includes definitions of lean strategic decision-making, strategic alternatives, decision criteria, Criteria-Selection meeting, and others.
- Chapter 2 presents the LSDM using a fictional case study. This chapter walks you through the entire model step-by-step. If you don’t feel you have the time to read the entire book, this chapter can provide you a succinct explanation.
- Using an approach intended to encourage the reader to examine their own personal biases about strategic decisions, chapter 3 examines the myths and realities about strategic decision-making.
- Chapter 4 explains decision-making organizational behavior research and examines how these findings affect the design of an optimal strategic decision process like Lean Strategic Decision Model®.
- Chapter 5 introduces the LSDM and explains the benefits and advantages over other strategic decision processes.
- Chapter 6 introduces the Lean Strategic Decision Model® Canvas, the template used to analyze a company’s strategic issue.
- Chapter 7 walks the reader through the entire 9-step LSDM process, examining important considerations for each step.
- Chapter 8 explains the barriers to effective strategic decision-making. There are two types: executive bias and poor group dynamics
- Chapter 9 examines approaches for developing and evaluating an LSDM Canvas for more complex strategic decisions. It introduces additional tools that will assist the reader in evaluating these complex issues.
- Chapter 10 presents two real-world case studies. One case shows how the LSDM is used to evaluate strategic issue that is not clearly defined. The second case demonstrates how a structured decision process can drive a decision even before all the data has been collected..
- Chapter 11 closes the book by explaining how you can determine whether your company needs to implement a strategic decision process like LSDM.
- Appendix A contains a list of criteria that companies can use as a guide for establishing a Canvas that will address their unique business situation.
- Appendices B – F are blank forms that can be used by companies to implement the Lean Strategic Decision Model®.
- Appendix G provides additional information that can help companies select the correct factors for analyzing their strategic issue. This section may be especially relevant for healthcare companies.