• Stop Jumping to Solutions!

    Unfortunately, when decisions are framed this way, the authors contend, the outcome is frequently suboptimal. An effective way to work against this, they say, is to make better use of the classic decision matrix, which allows for the comparison of different options using the same set of predefined criteria. The authors argue that the decision matrix isn't just an evaluation tool but also a process tool that can help executives extend their decision frame beyond the obvious options and criteria and help them think "out of the box." According to the authors, the decision matrix can be useful at key stages in the decision-making process to (1) frame decisions, (2) make concrete choices, and (3) communicate solutions. It allows leaders to identify potential gaps and logical flaws in their reasoning, facilitate dialogue in the executive team, and build support and buy-in in the wider organization. To expand the decision frame in a systematic way, the authors note, executives should understand two concepts: mental buckets and golden cuts. Mental buckets are vehicles for clustering similar ideas into related yet distinct categories. While brainstorming is a common way for teams to generate lots of ideas, ideas need to be organized at some point. Categorizing them into mental buckets helps people spot gaps and overlaps -in terms of both options and criteria. The cognitive act of creating new mental buckets serves to stimulate creativity.
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  • WHEN DIGITAL DAVID MEETS PHYSICAL GOLIATH: THE CASE OF BROCKHAUS VS. WIKIPEDIA

    The case is structured in three sections. Section one describes Brockhaus' response to the emergence of digital encyclopedias and identifies the main reasons for why the company was able to successfully deal with this innovation. At the end of section one, participants are asked to analyze (1) the strategic situation Brockhaus faced when dealing with digital encyclopedias; (2) the actions of Brockhaus in response to the advent of digital encyclopedias; and (3) the reasons for why Brockhaus successfully dealt with this strategic challenge. Section two contains a review of two theoretical concepts: disruptive innovation theory and the value curve. This theory section should provide the participants with the tools necessary to understand radical innovations and to successfully respond to them. Section three describes Brockhaus' war against Wikipedia and the actions Brockhaus took to deal with online ecyclopedias. At the end of the section, participants are asked (1) to analyze how the strategic challenge brought about by online encyclopedias differs from the challenge resulting from the rise of digital encyclopedias; and (2) to use the value curve concept to design possible strategies in response to the emergence of online encyclopedias. In a wrap-up following section three, the case describes that Brockhaus ultimately failed at successfully dealing with the emergence of online encyclopedias and had to leave the market. Learning objectives: The aim of the case is to enable participants to understand that the emergence of Microsoft's Encarta and Wikipedia both represented major challenges for Brockhaus, but that they differed in a very important aspect: While the emergence of digital encyclopedias was a continuous change, the emergence of online encyclopedias was a discontinuous one.
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