Strategic Judgement Before Commitment
“Is the opportunity supported by a credible problem, stakeholder-value logic and evidence base before commitment?”
Context
An organisation was considering converting an existing technology investment into a new digital marketplace. The proposition carried momentum: capital had already been deployed, the brand was recognised and the revenue opportunity appeared attractive.
Judgement exercised
I recognised that the discussion had begun with the solution rather than the problem. I questioned what need was actually being addressed, how each participant would create or receive value, what behaviour would have to change, what effect the new model could have on the established business, and what would need to be validated before proceeding further. I proposed a staged test using what was already in place, so the assumptions could be examined while options were preserved.
Consequence
The organisation chose another path and the staged approach was not pursued. The experience reinforced that the questions were the right ones to have asked before further capital was committed.
Board-level insight
A compelling opportunity can still rest on an incomplete frame. The board’s task is to establish what must be true before the chosen course becomes difficult to reverse.