Archives for July 2013

How behavioural economics changes the rules of strategy development

Tweet The most profound challenge that behavioural economics raises for company managers and leaders concerns how business strategies are developed.  Through enhancing our understanding of how bias can insert itself into what we assume to be a rational process, unhealthy the insights from behavioural science should cause a fundamental re-think about the validity of the prevailing paradigm of strategy development. Bias thrives on uncertainty; and the greater the uncertainty, cheap the greater the scope for distorted thinking.  Uncertainty is greatest with decisions about the long term – the strategic decisions that may take a significant time to execute and will… Read more