What is strategic decision making?
Strategic decision-making is the process by which companies allocate resources to pursue chosen priorities. This could mean allocating financial resources (operating budget or capital), human resources (people with specific skills or high-potential talent), manufacturing capacity, customer access, and many other assets of an organization.
Why is strategic decision making important?
A common cause of a failed strategy is a failure to commit the resources needed to succeed. Clear and timely strategic decision-making ensures that organizational resources are aligned to execute on a new strategy.
What is an example of strategic decision making?
Companies can allocate research and development resources to align to their strategy, so that they increase the probability of developing products and services that will succeed in the market.