Strategic Planning & Decision-Making Flashcards

What is the primary purpose of a SWOT analysis in strategic planning?

Answer: To evaluate organizational strengths, weaknesses, opportunities and threats

The primary purpose of a SWOT analysis in strategic planning is to evaluate an organization's internal strengths and weaknesses, as well as external opportunities and threats. This comprehensive assessment provides a clear picture of the organization's current position and helps in formulating effective strategies. It guides decision-making by highlighting areas for improvement and potential growth.

Which decision-making model is best for urgent situations with limited information?

Answer: Intuitive model

The intuitive decision-making model is best suited for urgent situations with limited information. This model relies on experience, gut feelings, and pattern recognition rather than extensive data analysis. While not always ideal for complex strategic decisions, it allows for rapid responses when time is critical and complete information is unavailable.

What is the key benefit of scenario planning in strategy development?

Answer: It prepares for multiple potential futures

The key benefit of scenario planning in strategy development is that it prepares an organization for multiple potential futures. Instead of predicting a single future, it explores various plausible scenarios, allowing leaders to develop robust strategies that can adapt to different circumstances. This enhances organizational resilience and agility in an uncertain environment.

Which element is NOT part of SMART goals?

Answer: Flexible

SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. The element "Flexible" is NOT part of the standard SMART criteria. While adaptability is important in strategy, SMART goals emphasize clarity and defined parameters to ensure objectives are clear and progress can be tracked effectively.

What is the primary purpose of a balanced scorecard?

Answer: To track multiple strategic perspectives

The primary purpose of a balanced scorecard is to track multiple strategic perspectives beyond just financial performance. It typically includes financial, customer, internal business process, and learning and growth perspectives. This holistic approach provides a comprehensive view of organizational performance and helps align activities with strategic goals.

Which technique helps prioritize tasks based on urgency and importance?

Answer: Eisenhower Matrix

The Eisenhower Matrix is a time management technique that helps prioritize tasks based on their urgency and importance. Tasks are categorized into four quadrants: urgent/important, important/not urgent, urgent/not important, and not urgent/not important. This method enables leaders to focus on high-impact activities and delegate or eliminate less critical ones.

What is the main risk of groupthink in decision-making?

Answer: Uncritical acceptance of consensus

The main risk of groupthink in decision-making is the uncritical acceptance of consensus, where group members suppress dissenting opinions to maintain harmony. This can lead to poor decisions because alternatives are not thoroughly explored, and potential flaws are overlooked. Groupthink inhibits critical thinking and can result in suboptimal or even disastrous outcomes.

Which strategic planning phase involves environmental scanning?

Answer: Situation analysis

Environmental scanning is a critical component of the situation analysis phase in strategic planning. This process involves systematically monitoring external and internal factors that could affect an organization's future. By identifying opportunities and threats, it provides essential data for informed decision-making and effective strategy formulation.

What does the RACI matrix clarify in strategic projects?

Answer: Roles and responsibilities

The RACI matrix is a project management tool specifically designed to clarify and define individual roles and responsibilities for tasks or deliverables. RACI stands for Responsible, Accountable, Consulted, and Informed, ensuring every team member understands their specific contribution. This prevents confusion, improves accountability, and streamlines project execution.