We believe that business leaders require the mental toughness to make active strategic decisions to direct the future of their businesses.
Japanese businesses face an urgent need to break away from stagnation through a Decision-driven management style. The time has come for Japanese businesses to abandon their habit of avoiding making tough decisions on the one extreme, or making rash decisions on the other extreme.
Instead, they need to actively and accurately assess context and timing to make deliberate and resolute decisions for their business, i.e. to make bold decisions backed by careful deliberation.
We believe that at the core of the concept of strategic management and leadership lies what we call a mission or a vision.
This refers to a company's raison d'être, i.e. what the company wants to accomplish, based on a clear understanding of the larger business environment and needs.
Once a clear consensus has been reached on the direction of the mission/vision, we can move on to the next step: setting a strategic agenda. The agenda consists of short-term and mid-term strategic issues that need to be tackled in order to achieve the long-term objective outlined by the mission/vision.
Once the agenda is in place, we can then proceed to formulating strategies for each of the items in the strategic agenda.
In the Decision Management approach, we define a business strategy as a set of important decisions with clear resource allocation implications.
In other words, one should make a set of decisions which will significantly affect the value of the business. This approach enables you to develop and execute an effective strategy.
The key to achieving that end is the ability to accurately distinguish among and tackle these three elements: decisions, uncertainties, and value measures.
Click here to see archetypal tools for formulating strategy.