Here's how you can navigate the potential consequences of poor strategic decision making for startups.

You can’t change what you don’t measure: Making data driven decisions aren’t just important it’s borderline mandatory. Why is this important? It’s important because rarely decisions that are made go awry suddenly, you begin to see negative effects of a decision overtime. The question is how are you able to recognize those “downward trends” before it becomes irreversible damage. Below are some books that will assist with managing strategic decision making and the consequences that come along with it: - Predictable Success by Les Mckewon - Principles by Ray Dalio - Traction by Gino Wickman Stay Data Driven My Friend!

There are two key things to do prior to going down a path of new decision making and damage assessment. First, own the situation and second, communicate quickly with stakeholders and especially your team. Share with people what process will be followed BEFORE starting to talk about pivoting or making broad claims about how to remedy what "went wrong". Then seat back, assess the situation and figure out what actually went down. Right strategy wrong market, wrong strategy right market, wrong strategy wrong market, obviously it was not RSRM. Remember the paradox of strategy. Strategy needs commitment, and commitment limits choices. Figure this out before going crazy with "change".

The old figure of speech "Jack of all trades, Master of none" is one of the delicate balancing acts when running a startup. With limited resources and expertise you sometimes need to rely on external resources. As a startup it is critical to select these external resources wisely. Early on in the development of my company we hired a company to do SEO and it was a complete disaster. We went from top page in important keywords to the fiftieth page. I was miserable but we needed to take our bruises. We slowly built our way back and repaired the damage created. My recommendation when choosing external resources is to ask very specifically what is going to be done and why that is the best way. If it seems like a "black box" beware!

It involves a proactive and adaptive approach. Begin by thoroughly analyzing and understanding the mistakes to prevent recurrence. Implement a robust feedback loop to learn from errors and adjust strategies accordingly. Maintain open communication with your team and stakeholders to manage expectations and garner support for necessary changes. Develop contingency plans to mitigate risks and minimize impact. Focus on flexibility and be ready to pivot quickly in response to new information. Strengthen your decision-making process by using data-driven insights and seeking diverse perspectives. Foster a resilient company culture that embraces learning and continuous improvement.

When a strategic decision backfires, you don't wallow – you go into battle mode. Assessing damage isn't about licking your wounds; it's about reconnaissance. Get a 360-degree view of the fallout, fast. What's bleeding? What's still standing? You need to know exactly where you stand before you can plot your comeback. And make no mistake, there will be a comeback. The best entrepreneurs don't just weather storms; they learn to dance in the rain. So dig deep, get the unvarnished truth, and use it to fuel your next move. Because in the startup world, it's not about avoiding mistakes – it's about how quickly you turn them into your next big win

When the ship hits an iceberg, you don't hide in the captain's quarters – you rally the crew. Engaging your team isn't just about damage control; it's about unleashing your secret weapon. Every person on your team is a potential solution waiting to happen. Be straight with them. Lay out the situation, no sugar coating. You hired smart people, now let them be smart. But here's the kicker – this isn't a democracy. You're gathering intel, not votes. Listen to everyone, but be ready to make the tough calls. The best entrepreneurs know how to tap into their team's collective genius while still steering the ship. Remember, in startups, setbacks are just setups for comebacks.

In the fast-paced world of startups, being able to pivot quickly is a game-changer. Once you've spotted an issue and gathered your team, it’s time to adapt with agility and clear purpose. Think of it like a quarterback calling an audible—you're adjusting the play based on real-time conditions. This doesn't mean making hasty decisions, but smart, strategic shifts that keep your startup agile and responsive. A swift pivot can turn potential setbacks into opportunities, ensuring you maintain momentum and stay ahead of the curve. Stay flexible, stay focused, and be ready to pivot when the moment demands it.

Be sure to clearly articulate your assumptions and track changes over time. Understanding what changed in your assumptions can help you to better understand the environment. It also helps you to clearly articulate what you have learned from the experience.

One of the most important pieces of advice I give startups is to keep your client base wide and heterogeneous. Over the years we have been tempted to go after the biggest fish in the market in order to grow our business. Instead we have kept growing a client base that is diverse in terms of size of engagement and vertical market they operate in. This type of wide net helps us weather the storm in downtimes for specific markets. This becomes critical when there are black swan events like a global pandemic. During Covid we saw a whole segment of our client base shut down. They couldn't operate so they didn't really need our services. Fortunately we operate in a wide range of markets so we were able to continue on.

Building a successful startup requires taking risks. However, it is important to recognize that risks have outcomes. Those outcomes aren’t always binary, that is, good or bad, black or white. There are outcomes which although aren’t entirely bad, aren’t also the best outcomes. This is where data-driven decisions become necessary and useful. You can choose which decision or strategy gives the best outcome. Even with data, things can still go wrong. This why risk is often included in strategy. Strategy is never complete until the risk factors are adequately accounted for. When these risks are accounted for, mitigating them is also prepared for. And when things go south, it’s easier to pick up. After all, failing fast is startup culture.

Great points! Here's an additional one: Reflect and Re-evaluate Goals - Take a step back and assess whether the original goals and objectives are still aligned with the company's vision and mission. Poor strategic decisions can sometimes be a result of misguided goals, so re-evaluating and adjusting them can help get the startup back on track. Navigating the consequences of poor strategic decision making requires a combination of damage control, team engagement, quick pivoting, lesson learning, resilience strengthening, seeking advice, and reflection. By following these steps, startups can recover and emerge stronger and more resilient than before.

One of the key principals that we have always followed is to avoid chasing novelty. In the digital signage market there are all sorts of new inventions that hit the market all the time. Many of these are very interesting but very few of them are really valuable to the market. Being able to understand which inventions are "flash in the pan" novelty and which have enduring value is key when engaging down these roads. We approach all new technologies with interest but with a clear view of what is going to have long term value for our customers. If a new invention is merely just "cool" we will typically stay away. Your time, energy and capital is going to be limited so use it wisely.