Strategy

Setting strategies is directly related to developing the ability for correct analysis of data.

Strategy is defining goals in ways that everyone will understand clearly, and then defining how to reach these goals via available resources.

There are three doors before you. Behind one is a rare and expensive car and the other two, goats. There is no logic to which stands behind which door. The car and the goats are placed randomly. You have to choose one of the doors. Only the announcer of the show knows what is behind each door. Once you make your choice, the announcer opens one of the remaining two doors and reveals goats. You will need to decide whether to insist on your first choice or choose another. How will you decide? In order to increase your choices of winning the car, should you stick with your first choice or go with the other one? What will be the reason behind your choice?

Known as the Monty Hall problem, this puzzle has been studied in detail by academic circles. Mathematicians and statisticians have analyzed various versions of this problem whereas psychologists and cognitive theorists have examined why people experience such difficulty with this and similar probability questions. Economists, on the other hand, have investigated the effects the puzzle’s fallacy has on economic behavior and decision-making.

In matters based on chance and risk, no strategy can increase the odds of winning up to a hundred percent. Knowing the correct probability calculation methodology is invaluable to eliminating the cognitive error into which most people and organizations fall. In most cases, strategies are formulated through intuition and probability calculations that are based on observations of a current situation. However, we have to take into account that the information presented or currently available to us actually reduces the number of possible situations.

Strategy is the art of deciding what will and will not be done.