Small Business Plans

In today’s business world, where decision making is expected, as we used in a business-as-usual sections for decades with only occasional periods of recession and other small dent street. There are dozens of prejudices that affect our decision, but some of those prejudices influence our perception more than others in dynamic environments. Such prejudice is to be optimistic. We tend to our own performance, or the ability to overestimate the challenges. We also tend to be optimistic about the future.

Excessive optimism bias

When hiring a sales manager may over-optimism a positive feature that can contribute to success. But making the decision, can cause flying colors and strategic plans behind the emergency meeting the challenges before us. Fortunately, the analysts and shareholders two rational actors who demand of us, in a rational way to act. This could partly explain why tempered by smart people, private companies outperform public companies. Likewise, companies with the active influence and rational investors such as funds or withdrawing Venture Capital, better than other private peer support. These private investors have a significant effect on the rational behavior.

rational decision

In a recent McKinsey Case for Behavioral strategy points significantly, rationality and behavior are monitored regularly in the investment market and, perhaps more predictable and the prospects for financial markets. However, we do not have the same rigorous analysis of the behavior of our leaders’ decisions. If the market shows a certain pattern, a trading algorithm that allows us to decide to sell or buy. However, as the economy ebbs and tide, we have no “black box” or hard and fast rules to improve our prediction capabilities.’s strategic decision-makers more influenced by, but can not understand the prejudices that inform their decision making, is the study by McKinsey.

De-polarization of your strategic planning

Before arguing on the external environment scanning, behavioral economists, we have to let go and prejudices, negative impact on our strategic decision making. In addition to optimism, also examples of other decisions that you should Bias in the strategic planning process, loss aversion, risk aversion, the principal-agent problem, the effect of agriculture (with a vision close), and the illusion of control.

A failure in today’s global decision-making is through the demonstration of normality, even more complex by the fact that we do not know what the new normal. Under any bias, consider lists of bias traps that you tend to, could in the fall:

- Are you under-the speed with which your company can be undercover appreciate?

- Is it the recent history of the nine normal now?

- Your competitive advantage is to be trivialized?

- Can you compete with outsourced services continue?

- Have you been sufficiently considered the impact of new regulations on your business?

- Is your product development and innovation is at a pace that can compete with the unknown future ahead of competition?

- Have you taken sufficient account of the risks? Cumulative and dynamic measures of risk?

Other strategies-polarization:

- Each debate ideas and strategies

- Gather current research on the prevailing opinions and other support

- Leave the door open for colleagues and subordinates challenge you

Stephen Lin

For over twenty three years, Stephen companies, government agencies and nonprofit organizations to learn and apply in Asia helped to support strategic management and innovation in their organizations and to improve long-term performance. He has successfully led and facilitated numerous “live” most important strategic planning and business development for a wide range of organizations, including multinational corporations, small and medium-sized businesses and organizations government.

As an international consultant, Stephen has conducted public workshops / seminars on important topics such as strategic management thinking and strategic planning, change management, leadership and innovation, Singapore, Malaysia, Indonesia, India, Dubai, China and the United States. He has trained hundreds of managers in workshops and seminars, always excellent ratings from participants who come from a variety of industries in the private and public sectors.