What do you do if your economic decisions are hindered by relying solely on strategic thinking?

When making a decision about investments in a company, it is important not only to consider financial and strategic projections, but also external factors such as regulatory changes, market conditions and environmental impact. By broadening the scope of considerations, we can make more informed decisions that are resistant to possible uncertainties.

In a situation where, for example, you are facing a complex challenge, such as the allocation of resources in an economic project, seeking feedback from colleagues, mentors or experts in related fields can provide valuable insights that may not have been considered initially. These different perspectives can help identify possible flaws in unique strategic thinking and offer alternative solutions or areas for improvement.

Strategic thinking often focuses on maximizing individual gains or specific objectives. However, it's important to consider the broader impact of your decisions on other stakeholders, such as customers, employees, suppliers, and the community. Think about how your choices may affect them and their long-term sustainability.

In the world of investment, it's not just about numbers. Alongside financial projections, we must factor in external elements like regulations, market trends, and environmental impact. This holistic approach ensures our decisions are well-informed and adaptable, better equipped to weather unforeseen challenges.

This can involve considering a variety of factors, such as ethical implications, social and environmental impact, in addition to purely strategic analyses. For example, when making an investment decision, it is important to consider not only the potential financial return, but also the possible effects on local communities, the environment and long-term sustainability. Broadening the scope of economic decisions helps to avoid a narrow, one-sided view, promoting more informed and balanced decisions.

In the realm of economics, it's not just about the math. Values, ethics, culture, and personal aspirations play a vital role in shaping our choices. Acknowledging these qualitative factors is essential for making well-rounded decisions that align with our principles and aspirations.

Economic decisions are not only driven by numbers but also by qualitative aspects such as values, ethics, culture, and personal goals. Recognize the importance of these non-monetary factors in shaping your decisions.

Uncertainty about the long term can be the problem about the strategic decision. Thinking about alternatives by way of contingency planning can be helpful.

One way to see it could retrieve only a limited comprehension of the topic discussed; nonetheless, if multiple factors are considered into a pluridimensional analysis, the outcome will yield richer results.

Recognizing the influence of external factors on our businesses underscores the importance of incorporating flexibility and adaptability into strategic planning. A solution that was effective a few months ago may no longer be suitable today due to evolving challenges. Therefore, keeping up-to-date with these changes and trends is critical for forecasting potential issues and proactively devising effective solutions.

Embracing flexibility involves being open to adjusting strategies based on evolving circumstances, new information, and unexpected events. This might entail conducting scenario analyses to anticipate various outcomes, staying informed about market trends, and being willing to pivot strategies when necessary. Additionally, fostering a culture of experimentation and learning from failures can help refine decision-making processes and uncover innovative solutions. By incorporating flexibility into your approach, you can adapt more effectively to changing economic conditions, mitigate risks, and enhance the overall resilience of your decision-making framework.

embracing flexibility is perfectly fine if we have a clear (strategic) target picture of what we want to achieve. You could compare this with a nice hiking tour. you know that you want to achieve the mountain top but you make adjustments to the trail you are using, the gear you need and the timing based on external factors such as rain, fog, heat, snow.

embracing flexibility means working with an open mind towards solutions. In fact, flexibility when it comes to business is about seeking solutions.

En mi experiencia más reciente, lideré el proyecto de estructuración de negocios para una firma de cirujanos plásticos. Nos enfrentamos al desafío de contar con información desactualizada. Para abordar esto, implementamos encuestas internas y externas, lo que nos permitió clarificar y actualizar la conceptualización de los servicios que ofrece la firma. Esta información fue crucial para presentar a los accionistas los proyectos prioritarios a implementar. Gracias a este análisis detallado, recomendé suspender la implementación de un CRM que no se adecuaba a nuestras necesidades, lo cual nos permitió ahorrar significativos recursos.

It's a double edged sword. While heuristics provide a rule of thumb, they can also lead to inherent biases. Human mind works on heuristics and hence is inherently biased! Important to factor this in.

I would go a step further. Reflection is imperatively important but works best if you chance perspective. Being both self-reflective as well as being able to understand the rationale and development of other important players helps us making better decisions. Especially if done iteratively and continuously.

Seeking feedback is a wonderful process to achieve a whole host of different benefits. Not only are we constantly learning and getting better as we digest the input we are getting. Talking to others also helps us to think more about the topics at hand. So there are clearly great benefits in seeking feedback. One benefit that is greatly underrated is the need to simplify the topic we want to discuss in order to make sure the other party understands us properly. To simplify the topic, we need to understand it properly which helps us to come up with better decisions ourselves.

j'identifie d'abord les principales raisons de cette non reconnaissance et après, je chercherai à relever le défi en fonction des raisons identifiées pour arriver a la reconnaissance recherchée

Seek feedback. Feedback is essential, however, before seeking critical thinking from another person, the person receiving the feedback must be humble and active in listening, no matter how much knowledge you already have on the topic.

Un enfoque útil que he adoptado es solicitar los comentarios de aquellos que participan en la operación diaria de la empresa. Ocupar un cargo directivo conlleva la responsabilidad de ganar la confianza y fomentar el respeto del equipo. Esto facilita que el ambiente sea cómodo para compartir recomendaciones, que a menudo incluyen visiones claras sobre cómo ahorrar recursos o optimizar operaciones. Al escuchar y poner en práctica programas piloto basados en estas ideas, hemos logrado resultados significativos para la organización.

In my experience both economic decisions and strategic decisions require economic thinking. That’s how we do it at Stand Together. If you aren’t thinking on the margin, considering opportunity costs, and pondering second and third order effects, you will inevitably make poor strategic and tactical decisions. The economic way of thinking is a powerful tool that every decision-maker should use regularly.

Utilise automated reasoning tools e.g. Z3 to check the logic chain between the current state and the goal state. Is there a feasible pathway?

Relying solely on strategic thinking for economic decisions can limit your perspective and effectiveness. To mitigate this, complement strategic thinking with analytical tools, such as economic models and data analysis, to provide a systematic framework for decision-making. Incorporate insights from behavioral economics to understand human behavior and potential biases. Seek input from diverse perspectives to challenge assumptions and generate innovative solutions. Balance short-term and long-term considerations, stay flexible and adaptive, and promote collaboration within your team or organization. Commit to continuous learning and professional development to enhance your decision-making skills over time.