Need for Teaching Assumptions in Strategy Programs

In the opening remarks, at the beginning of a strategy program, the writer generally asks participants about their expectations from the program. Here are some interesting comments heard over the years in strategy programs by the writer:

1. I want to learn different frameworks in strategy.
2. I am curious to know various models in strategy.
3. I need to explore the latest theories in strategy.
4. I am looking forward to learning how to develop strategies for my company.
5. I want to learn complex strategy tools to improve profits.

And so on. The focus of participants is generally on learning different frameworks, concepts, models, theories and so on. There is nothing wrong with these expectations. However, strategy is not just complex concepts, models, frameworks, theories etc. One of the most important aspects of strategy is assumptions, which do not get sufficient focus in many strategy programs.

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Since strategy is about future, any strategy is based on a set of assumptions. Assumptions about the organization, about the environment such as competition, demand and supply in the market, regulations, technology and so on. If the assumptions are wrong, the strategy will be a disaster. Thus it is critical to be aware of the assumptions one is making and to make correct assumptions.

It is possible to teach and learn the art of making correct assumptions. Here are some of the ways. The first is to look at one’s biases and get rid of those biases. There are various tools available to learn and overcome one’s biases. The second is to see the reality of the world, i.e. be realistic about oneself, others and the world. Third is to learn from the legal field, i.e. asking oneself if someone else will make the same assumptions in these conditions. Fourth is to keep adversaries close and seek their opinions without revealing too much. Fifth, use 360 feedback, and so on.

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Focusing on making the correct assumptions can help develop a better strategy. Making the correct assumptions can also ensure better chances of minimizing the strategy's failures, as the strategy has a high failure rate.