For a very long time Strategic Management has been dominated by a rational and analytic perspective claiming objectivity in decision making and strategic thinking.
Although psychologists and psychoanalysts know for quite a while that the human being is not as rational as wished or hoped, these insights have not yet been integrated by strategic management. Herbert Simon made a first attempt in the 1950’s introducing the concept of bounded rationality.
With the upcoming of Behavioral Finance and Behavioral Economics the school of strategic management became slowly aware of the fact that also strategic thinking is distorted by cognitive biases and that emotions might play a role in decision making. Neurosciences have helped enormously to make this an acceptable, yet for some managers an unpleasant fact.
By Behavioral Strategy (see Wikipedia Behavioral Strategy) we mean a new approach in the field of strategic management using a psychologically informed perspective. It thrives to integrate emotional aspects into strategic management and sees the necessity in deep and shared reflections on your own thinking and your thinking of the future of the corporation.
In integrating these psychological factors success factors can be derived which not only improve the quality of the strategic decisions, but also the implementation will work faster and cause less resistance.
In this blog I will touch upon interesting and relevant research in connection with strategic management and leadership from a psychological perspective. I will also share some personal experiences from my consulting and coaching work.