Decision-Making Orientation: Conceptual, Ethical, Tribal
It is not uncommon for strategy discussions to derail when decisions have to be made about what to (not) do, where to (not) focus, how to (not) do etc. Among the numerous theories and assumptions why this happens, one angle is largely missing. Yes, there is personality. Yes, there is bias. Yes, there is history. What is missing though is an understanding of how people orient what they focus on, i.e., of all the data points in the decision to focus on, which one do you care about the most? And the "one" you care about the most becomes the north star determining your rationale.
Therefore, understanding and recognising the differences between conceptual, ethical, and tribal decision-making orientations can go a long way to ease the tension of strategic discussions.
❶ Conceptual orientation - These decision-makers generally prioritise considering the bigger picture beyond the immediate situation at hand.
❷ Ethical orientation - These decision-makers are primarily concerned with "is this good/bad" or "is this right/wrong".
❸ Tribal orientation - These decision-makers generally care most about whether their decisions align with the tribe they identify with.
What does this look like in practice? Let's say the leadership team of a large retail company has to decide whether to transition to online sales in light of steadily declining brick-and-mortar sales.
The leader with a dominant conceptual decision-making frame is likely to care most about how the transitions might impact the company's overall strategy, and therefore consider questions such as:
Actions this leader may take are likely to be:
The leader with a dominant ethical decision-making frame is likely to care most about making a decision that is fair and responsible to stakeholders, and therefore consider questions such as:
Actions this leader may take are likely to be:
The leader with a dominant tribal decision-making frame is likely to care most about how the transition will be perceived by various key stakeholders, and therefore consider questions such as:
Actions this leader may take are likely to be:
What to read next? Try Contrarian Companies That Redefined The Strategy Playbook.
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Therefore, understanding and recognising the differences between conceptual, ethical, and tribal decision-making orientations can go a long way to ease the tension of strategic discussions.
❶ Conceptual orientation - These decision-makers generally prioritise considering the bigger picture beyond the immediate situation at hand.
❷ Ethical orientation - These decision-makers are primarily concerned with "is this good/bad" or "is this right/wrong".
❸ Tribal orientation - These decision-makers generally care most about whether their decisions align with the tribe they identify with.
What does this look like in practice? Let's say the leadership team of a large retail company has to decide whether to transition to online sales in light of steadily declining brick-and-mortar sales.
The leader with a dominant conceptual decision-making frame is likely to care most about how the transitions might impact the company's overall strategy, and therefore consider questions such as:
- How does the shift to online sales align with the company's overarching vision?
- Does this transition contribute to sustainable growth in the long run?
- What are the potential implications vis market positioning and competitiveness in the industry?
Actions this leader may take are likely to be:
- Conduct a thorough analysis of the online market, customer behavior, and industry trends.
- Consider the strategic fit of transitioning to online sales with the company's long-term goals.
- Explore innovative solutions, technologies, or partnerships that can enhance the online customer experience.
The leader with a dominant ethical decision-making frame is likely to care most about making a decision that is fair and responsible to stakeholders, and therefore consider questions such as:
- How will the shift to online sales impact employees, especially those working in the brick-and-mortar stores?
- Are there ethical concerns related to customer data privacy or security in the online space?
- How can the company ensure fair treatment of all stakeholders during this transition?
Actions this leader may take are likely to be:
- Carefully consider potential impacts on employees and customer data.
- Implement measures to support and potentially retrain employees affected by the transition.
- Develop and communicate transparent policies regarding customer data protection and online transactions.
The leader with a dominant tribal decision-making frame is likely to care most about how the transition will be perceived by various key stakeholders, and therefore consider questions such as:
- How can we maintain the level of trust and loyalty that we have built with our customers?
- Are there potential conflicts with the values and expectations of the organization's existing "tribe" (employees, customers, partners)?
- What impact on morale will this decision have on employees of the brick-and-mortar business, and how can we address it?
Actions this leader may take are likely to be:
- Consider the cultural and social dynamics of the transition and assess alignment with the organization's tribal identity.
- Implement strategies to maintain relationships with existing customers who prefer brick-and-mortar interactions.
- Communicate the reasons for the transition in a way that aligns with the organization's values and assures stakeholders of a continued commitment to their needs.
What to read next? Try Contrarian Companies That Redefined The Strategy Playbook.
To find out how I can help you and your organisation co-create a Me-Only corporate strategy, click on the button below to connect with me.