Strategic Decision-Making - 1947 Words

â€Å"Rational decision-making is an impossible ideal in strategy formulation and implementation due to incomplete information and organisational politics.† Strategy is formulated and implemented by organisations as a means of gaining competitive advantage and achieving organisational success. Frequent fast, widely supported, and high quality strategic decisions are the cornerstone of effective strategy (Eisenhardt, 1999 in Clegg et. Al, 2012). In todays world of borderless business, ever-evolving technology and rapid change, can these decisions be made rationally? Currently there are three main decision-making paradigms in the literature – rational decision-making, political decision-making and the garbage can model. Each paradigm frames†¦show more content†¦Linblom refers to the comprehensive rational model mentioned above, as a root approach to decision-making where the process begins with the fundamentals, always starting from the ground up. This means-end analysis requires that values are clarified in advance of examining alternatives. He posits a branch method of incremental comparisons as a more suitable method f or complex problems. Here, the decision-making process begins in the current situation, building out with incremental changes. Lindblom argues that the organisation and individuals may hold conflicting values which only become clear after the fact. A good outcome is therefore, not the optimal one but one that is agreed upon by all players. These theories highlight both the limits of rationality and the importance of context in strategic decision-making. Unlike many other decisions, strategic decisions are made in an organisational context where the reaction of the players affects the outcome. This view of organisations not as rational optimisers but satisficers resonates with the authors experiences. Having owned my own business I understand due to time constraints, working memory limits and finite funding levels, it is not possible to make decisions in a perfectly rational fashion. There will always be alternatives you (the organisation) had not considered, preferences you have that may beShow MoreRelatedAccenture : Strategic Decision Making1648 Words   |  7 Pageswill yield an invaluable prize—greater and more credible clarity around ROI. Companies need to focus on getting the data that is relevant to business decisions and to business strategy, including big-data gathering in areas such as geometrics, telemetries and other unstructured data. Once businesses start using analytics for strategic decision making, they are more likely to get a better read on ROI. 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