How to effectively structure executive decision-making

Without a structured practice of sense making, many executives resort to reactionary, gut-feel (or worse...GPT-guided) strategic decision-making that's ill-informed and disruptive.

In a dynamic business environment, this approach is not advisable. But what then does an effectively structured sense making practice look like?

Firstly the goal of a structured practice is to enable the selecting of more informed choices. Achieving this means, that over time, an executive needs to have a deep understanding of change that spans a broad domain.

Developing a strategic map

Regular (i.e. monthly) horizon scanning that covers a wide range of domains is critical. Equally these monthly scanning reports need to suggest possible threats, opportunities and relevant strategic questions as an outcome.

Over time, patterns can be captured within each of the domains, which can then be classified as important change variables to then be used for medium to long-term scenarios.

The scenarios function either as a lens to inform decision-making, or to wind tunnel an existing strategy for relevance under alternate future operating conditions.

Thanks to an ongoing cadence of scanning, sense making and choices; decisions themselves can be measured for effectiveness.

And this propriety strategy practice then becomes an invaluable asset for the business.

Which is what companies like Ford, Shell, Apple and LEGO do to stay at the top of their game.