Eisenhardt’s article about strategic decision making was written with exceptional clarity. I would reference this article for anyone who wants to understand what strategic decision making consists of at its very essence. The article clearly defines four keys to strategy as strategic decision making. The author sees strategy differently than the tradition perception of strategy as selecting an attractive market, choosing a defensible strategic position or building core competencies. She sees these approaches as overemphasizing the executive’s ability to analyze and predict the changing market as well as the difficulty of creating effective strategy.
The four keys to strategy as strategic decision making have to do with “competing on the edge.” Finding and developing competitive advantages as the market change yield strategic decisions. The following four keys help to develop strategic decision making in an effective market:
- Collective Intuition: This results from frequent meetings and real time spent as a group of understanding the SWOT analysis of the company.
- Stimulate quick Conflict: By diverse teams of decision makers, conflict will arise helping them to frame break- which will improve the quality of decision making.
- Discipline Timing: The timing and pace of decision making must maintain a competitive momentum in the environment.
- Defuse Politics: By emphasizing a common goal and having fun, politics are not placed in high regard.
With these approaches of decision making, strategy is formed. With these approaches, direct executive attention is shown on the cornerstone of effective strategy—strategic decision making!