Research Note
Strategic decisions: signs of poor definition
Short technical note for executive review.
Purpose of this note
A strategic decision is poorly framed when it does not allow courses of action to be compared or identify what evidence could change the choice. The clearest signal is a formulation that already contains a solution—“approve the expansion”—rather than a question—“which growth option offers an acceptable relationship between value, risk and capacity?”
Indicators of poor framing
- No viable alternative or no-action case exists.
- Objectives, constraints and criteria are mixed together.
- Facts, forecasts and assumptions are presented with equal certainty.
- Decision owner, execution owner and reviewer are not identified.
- Financial, legal or operational exposure is not capped.
- There is no deadline, withdrawal condition or signal that would invalidate the thesis.
- Options use different horizons or baselines and cannot be compared.
Five-question test
- What specific choice must be made, and by when?
- What happens if no action is taken?
- Which two or more options are genuinely executable?
- What evidence could change the decision?
- What condition requires review, limitation or withdrawal?
If any answer cannot be stated clearly, reframe the decision before expanding the analysis.
Reading the evidence
The Green Book calls for explicit options, risks and uncertainty. March distinguishes exploitation of known capabilities from exploration of new possibilities and describes the danger of imbalance. Eisenhardt provides bounded evidence that speed and comparison are not incompatible. These sources support the diagnostic, but do not determine which option a particular organisation should choose.
Limit
This note supports review of decision framing. It does not replace financial, legal, technical or market assessment and does not establish a universal recommendation.
Sources and scope
- HM Treasury, The Green Book 2026. Primary source; publication or version: ; accessed: .
- James G. March, Exploration and Exploitation in Organizational Learning. Primary source; publication or version: ; accessed: .
- Kathleen M. Eisenhardt, Making Fast Strategic Decisions in High-Velocity Environments. Primary source; publication or version: ; accessed: .
These sources support the framework and its general claims. Applying it to a specific decision requires current data, transaction documents and specialist advice where appropriate.