ABSTRACT
Strategy addresses how we compete—our objectives and how we hope to achieve them. Strategies typically rest on an analysis of the competition and of our capabilities relative to the competition. However, an overemphasis on analysis often neglects a key factor influencing strategic decision making: how the human aspects of problem solving influence not only what we see as problems, but also the decisions we make to solve those problems. A behavioral approach to strategy recognizes the limitations and constraints imposed by these human aspects, particularly managers’ cognition (thinking), beliefs, and information processing. In particular, we note that limitations in our memory lead to limitations in information processing, our belief structures strongly resist change, and the structure of the organizations we work in influences both what data we get and what we become good at doing. Overall, all of these factors influence the decisions we make. We concluded with some suggestions to overcome some of these constraints.
