Strategic Agility

How to Tell which Decisions are Strategic

Ram Shivakumar


Abstract
How can one tell which decisions are strategic? This article proposes a framework that helps distinguish strategic decisions from non-strategic ones. Whether a decision is strategic or non-strategic depends on how a decision arnks along two dimensions: its influence on the degree of commitment and its influence on the scope of the firm. Four distinct types of decisions emerge: strategic, neo-strategic, tactical, and operational. This categorization of decisions can help the firm prioritize decisions, allocate resources, and develop capabilities.

California Management Review

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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