Strategy as Diligence: Putting Behavioral Strategy into Practice

Abstract

Researchers in behavioral strategy are producing new insights on strategic decision making. At the same time, a few pioneering companies are discovering ways to put behavioral strategy into practice. This article draws on behavioral research and strategy practice to present an approach called diligence-based strategy. In markets comprised of people rather than rational economic agents, the analysis of competitive advantages matters less than the diligent execution of fundamental activities. Diligence-based strategy offers an applied method for formulating and executing strategy in organizations, showing how managers can leverage technology and management discipline to drive business success in the twenty-first century.