Make Better Strategic Decisions

Introduction

DOI: 10.4324/9781003457398-1

In broad terms, this book is about strategy, strategic thinking, and decision-making. We start with broad questions. What do we mean by strategy? Do we need one? Why is strategic thinking so challenging? Then we will consider the rational model based on the assumption that people think logically, make efficient decisions, and then select the optimum outcome. Behavioural economists don’t believe that this is true, and they offer an alternative model founded on what we observe in the real, rather than theoretical, world. Let’s call this alternative approach ‘behavioural strategy.’

The world is messy. The future is uncertain, largely unknown, and opaque. Most strategic problems are paradoxical. That is, ...