Boards and CEOs: Introducing the "Strategic Blindspots Index"©
3 October 2011 |
As industries become increasingly complex, it is more difficult than ever to govern companies. As an executive or a board member, you are often responsible for identifying where the company might have underestimated a strategic risk, or where you are failing to see a strategic opportunity. Competia has developed over the past few years a systematic approach to enable management teams to examine your company's strategy and lead discussions around potential "blindspots" - untapped opportunities and overlooked risks. We are now introducing the "Strategic Blindspots Index"©, a systematic method to assess the risk of a strategic blindspot developing, and a way to compare a company's risk profile with industry peers.
What is The "Strategic Blindspots Index"© ?
The "Strategic Blindspots Index"© evaluates each company - either from the board or the executive office point of view - as regards to the likelihood of strategic blindspots developing.
Strategic blindspots risks are evaluated in the following areas:
Strategic biases: biases likely to develop as management or the board of directoris misjudges industry boundaries, thus poorly identifying emerging ocmpetitor, or developing a misguided view of competitors' competence.
Historic biases: biases relating to the frame of reference of both the board and management, and to natural anchoring that might create an inaccurate assumption of the future.
Corporate biases: unchallenged assumptions that hinder the decision making process, as well as corporate taboos.
Myopia: the degree to which the company's management and board are projecting themselves in the future. We also test how much time is dedicated to discussing the future outcomes.
Decision making biases: biases that might develop in a group during the decision making process, including cognitive biases.
How does it work ?
Companies will be first ranked two ways on an index of 100 in order to calibrate how likely the risk of a strategic blindspot developing exists. Secondly, companies will also be provided with a "Blindspot profile", which will provide them with guidance and tools to allow them to act and adjust their processes or board procedures.