What do you do if your strategic decisions are putting your organization at risk?

Compare os resultados obtidos com os objetivos estratégicos inicialmente definidos para identificar as áreas de discrepância. Crie estratégias detalhadas e acionáveis para alcançar os novos objetivos, com foco em áreas como aprimoramento da comunicação, gestão de riscos, tomada de decisão e alocação de recursos.

Assessing the potential damage requires examining several factors. If my strategic decisions lead to lost revenue or market share, the organization's financial health and competitive edge could be significantly impacted. Additionally, operational disruptions, regulatory issues, or declining employee morale could further exacerbate the problems. The severity of the damage depends on the likelihood of these consequences occurring.

Companies can sometimes make strategic decisions that don't pan out due to misconceptions and biases. One example is a large acquisition that fails to integrate, resulting in significant losses. When this happens, swift action is necessary. The board of directors and executive team should assess the damage, understand the situation, and review the integration and development strategy to make necessary adjustments. By doing so, they can set their company back on the path to success.

Above all, we must remind ourselves that any strategic decisions are made under conditions of uncertainty, which carries risks. The only way to avoid risks is not to make decisions, although not making decisions carries risks. If a strategic decision turns out to be wrong, you are in good company - no business that has been in operation for more than five years has avoided strategic mistakes. Recognising the mistake and accepting it as part of the job, as a signal from the outside world that we were doing something wrong, equips us with the information we need to correct the mistakes.

This involves working with the risk team and legal team at the very beginning to start with; it will give different vantage points to the problem and work on strategies to mitigate and handle possible outcomes. Compliance and audit is another team that needs to be involved in this process to make sure to validate the actions and plans. For larget enterprises its also advisable to involve the marketing communications team to handle any public opininons together with medias and brand ambassodors

Decisions, decisions! Whether it's picking the right sandwich for lunch or making a strategic move, the potential for damage is always lurking around the corner – blame it on the market shifts, regulations, or even a surprise visit from Mother Nature! But fear not, assessing the fallout is like playing detective, uncovering the losses and plotting our next move to dodge disaster. After all, who said risk management couldn't have a dash of drama?

Conduct a thorough assessment of the current situation to understand the extent of the risk and its potential impact on the organization. Identify any immediate threats or vulnerabilities resulting from the strategic decisions.

A comunicação transparente e aberta com todos os stakeholders é essencial para construir confiança e consenso. A revisão e o ajuste da estratégia original são necessários para se adaptar às novas realidades e alcançar objetivos de forma eficaz.

Convening your team is a crucial step. Schedule a meeting with key stakeholders involved in the strategic decisions and their execution. Be transparent about your concerns regarding potential risks. Frame the discussion around gathering their insights on both the potential consequences and how to mitigate them. Their firsthand experience and diverse perspectives can be invaluable in uncovering blind spots and crafting effective solutions.

Whoever made the wrong decision, corrective action should be taken collectively. The more people involved in discussions about future decisions, the lower the risk that important points will be missed. Discuss the wrong decision with the team, not from a blame-finding perspective, but from the perspective of constructively analysing the mistakes made and looking for opportunities to make reasonable adjustments.

The vibe in these discussions should be all about openness and embracing a learning mindset (refer to the great book by Carol Dweck). Think of them as our very own classroom sessions, where every meeting and subsequent action is a chance for the team and the business to level up and stride confidently into the future, armed with invaluable lessons learned along the way.

Engage with key stakeholders, including senior leadership, department heads, and relevant team members, to gather diverse perspectives and insights. Collaborative decision-making can help generate innovative solutions and consensus on the best course of action.

Many strategies have very minimal impact on the organizational operation. They only give outcomes over periods; when considering the consulting team, it's essential to consider possible changes to external opportunities and threats outside the organizational control. Which also involves new legislation and policies that might affect the industry in the near to long term. Hence, the team should comprise individuals with the capabilities to look into those angles

Revisar as metas da organização é um processo contínuo que deve ser realizado periodicamente para garantir que elas permaneçam relevantes, alcançáveis e alinhadas com a estratégia geral da organização. O envolvimento da equipe e a comunicação transparente são essenciais para garantir o buy-in e o compromisso de todos com as metas revisadas.

Take a step back and revisit your original goals. Are these strategic decisions still aligned with what you set out to achieve? If not, it might be time to refine the strategy or even consider setting new goals altogether.

It is very important to remember that a goal is not a vow, a promise, or a point in the future that the organisation must arrive at. A goal is an imagined future state of the business based on our belief that it can be achieved (even if we have analysed a lot of data before setting it). Revising goals that have lost relevance is a normal process, all organisations do it, even if they don't admit it publicly.

The goal might not be the culprit here – sometimes it's the strategic plan that didn't anticipate those sneaky unintended consequences or unexpected plot twists. Maybe the goal itself is still golden; it's just the roadmap that needs a bit of a tweak. So before we toss out the goal like last week's leftovers, let's give the approach a once-over and see if a little strategic detour might do the trick.

Reevaluate the organization's goals, priorities, and strategic objectives in light of the identified risks. Ensure alignment between strategic decisions and the overarching mission and vision of the organization.

Never hesitate adjusting… You can be great decision maker and accomplished leader with a truck record but market changes daily.

Ajustar a estratégia é um processo contínuo que deve ser realizado periodicamente para garantir que a organização esteja sempre alinhada com as mudanças no ambiente e com as necessidades do mercado. A comunicação aberta, o engajamento da equipe e a flexibilidade são essenciais para o sucesso do processo de ajuste estratégico.

A strategy is a set of hypotheses based on our belief in our ability to change the world to our advantage. If the hypotheses are not confirmed, that's fine. Therefore, adjusting strategy is as routine a process as operational planning.

Based on risk assessment and team discussions, you may consider tweaking strategy. This could involve scaling back resource allocation, revising targets, or implementing contingency plans. The goal is to find adjustments that mitigate risk while keeping you on track towards your goals.

Adjusting strategy enables organizations to make informed strategic decisions that mitigate risks effectively. By continually evaluating market conditions, competition, and internal capabilities, organizations can proactively adapt their strategies to changing environments. This flexibility not only enhances resilience but also allows for timely responses to emerging threats, ultimately safeguarding the organization against potential risks.

Adjusting business strategies can be a daunting task, but it's crucial for maintaining a competitive position. Department heads should re-assess performance data to determine possible trade-offs and explore the impact on people, processes, and technology. Developing a consensus on the plan that best suits the organization is key. It's important to keep in mind the resources available when making adjustments to your business strategy. Considering what you can realistically accomplish with the resources currently available, as well as any additional resources you may need, is crucial. Perhaps, it's worth making additional investments in employee training programs to teach them how to use technology.

Based on the assessment and consultation with the team, make necessary adjustments to the strategic approach. Identify alternative strategies or course corrections that mitigate risk and align more effectively with organizational objectives.

Strategy cannot be build in the rock. Some concepts remain fundamental while a lot of them change with time and requirements. Adjusting strategy is changing the plan based on what the current situation is demanding.

O engajamento da equipe, o monitoramento de perto e a flexibilidade para fazer ajustes são essenciais para o sucesso da implementação. Ao liderar com clareza, comunicação aberta e apoio à equipe, as organizações podem transformar suas estratégias em ações e alcançar seus objetivos de forma eficaz.

With a clear understanding of the risks and your team's input, it's time to implement changes. Communicate the adjustments effectively to all impacted departments. Develop a timeline for rollout and provide training or resources if needed to ensure a smooth transition. Monitor progress closely and be prepared to make further adjustments as needed.

Act swiftly to implement changes to the strategic plan or operational processes to address identified risks. Clearly communicate changes to relevant stakeholders and ensure buy-in and support for the revised approach.

Continuously monitor the implementation of changes and their impact on organizational performance. Establish key performance indicators (KPIs) and milestones to track progress and identify any emerging risks or issues.

I believe the first step is actually avoid this altogether by betting small to see which hypothesis is true. Consider every assumption as a hypothesis and invest heavily only once the assumption/hypothesis is proven. Another key here is to think about an exit strategy before investing (e.g. if this goes wrong: Can we sell the investment we did? If, so to whom? What other uses can this investment have?)

Errors in strategic decision making can arise from cognitive biases that are inherent in all of us. These biases distort the way we collect and process information, leading to errors in judgment. In organizational settings, these biases can be amplified by interactions that are colored by self-interest, leading employees to perpetrate both conscious and unconscious deceptions. It's important to be aware of these biases and take steps to mitigate their impact on strategic decision making.