Step 1: Defining the Issue
When making important business decisions, a critical first step is to determine key sources of uncertainty and to identify appropriate methodologies to help. If questions about the actions and reactions of external parties predominate, a game theory analysis is likely to be the optimal methodology to manage that uncertainty.
Organizations typically place a disproportionate emphasis on economic and quantitative considerations, and spend too much time dealing with organizational complexity and politics. In contrast, they do not spend nearly enough time really thinking about the perspectives of other critical players involved in the issue. Considerations such as economic projections, resource availability and market data are important, but the potential actions and reactions of external players are equally critical.
For example, when an organization seeks to grow market share or enter a new market, the success of the venture depends not only on actions by the organization itself but also on the reactions of competitors, partners and suppliers.
These situations, where multiple players can influence the final outcome, are extraordinarily difficult to manage and are precisely the types of problems where the Open Options Process excels.
Read About How Open Options Unlocks Organizational Knowledge