Works
- Making Fast Strategic Decisions in High-Velocity Environments, Academy of Management Journal, 1989
In Tactics of Organizational Politics
Ideas
How fast strategic decisions are made. In an inductive study of eight microcomputer firms, executives who made strategic decisions quickly used more real-time information, considered several alternatives at the same time, relied on experienced counselors, resolved conflict actively, and integrated each decision with other decisions and tactical plans. The fast decision-makers also performed better. Caveat: The evidence is case studies of eight firms in one industry, and the model has not been comprehensively tested on a larger sample.
Consensus with qualification. Most fast teams tried to reach consensus by involving everyone; if they agreed, the choice was made, and if they did not, the senior executive decided, guided by the team's input. This kept conflict from stalling the decision.
What it explains
Eisenhardt explains how a leadership team can move quickly without forcing agreement: put several real options on the table, argue openly, and settle in advance who decides if consensus fails.