In a recent HBR article we argued that in an uncertain and rapidly changing world, companies need to adopt strategies predicated on radical optionality, in which they continuously develop new options that could form the basis of future success — depending on what unpredicted state of the world they will find themselves in. But companies struggle to realize radical optionality because creating options is expensive: It entails costly and risky exploration, increases complexity, and can lead to excessive redundancy. Encroaching resource limitations, especially an increasing cost of capital, only makes the challenge harder.
Why Conflicting Ideas Can Make Your Strategy Stronger
In a volatile world, think of your strategy as a portfolio of options, not a roadmap.
May 31, 2023
Summary.
In a volatile, uncertain world, successful strategies are those conceived as portfolios of options rather than as roadmaps. But to successfully create and communicate such strategies, managers must embrace incompatible and misaligned ideas, communicate multiple and conflicting narratives, and share ideas as they think of them as opposed to the traditional sequence of thinking then sharing. To enable this, leaders need to foster a culture in which people can disagree without being punished for it.
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New!
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.