Question 10
Knowing how to make smart trade-offs is a vital strategic thinking skill. Which of the following approaches can help you apply this skill?
Click the button next to the correct answer choice. After you have read the feedback, explore the other choices. Note: Your first selection will be used to tally your score.
Weighing the short- and long-term consequences of a proposed course of action
Correct choice. Some trade-offs involve sacrificing short-term gains in order to achieve important long-term gains, or vice versa. Thus, weighing the possible short- and long-term consequences of a proposed course of action, and considering how each of those consequences relates to your company's strategic goals, can help you make smart trade-offs. Other approaches to making wise trade-offs include assessing the pros and cons of alternative courses of action, considering whether actions that benefit your group will also benefit the rest of your organization, and specifying what you won't do to resolve a problem or achieve a goal.
Identifying the full range of possible advantages offered by a decision you advocate
Not the best choice. To make smart trade-offs, you need to identify both the advantages and disadvantages of a course of action. Thus, the correct answer to this question is "weighing the short- and long-term consequences of a proposed course of action." Some trade-offs involve sacrificing short-term gains in order to achieve important long-term gains, or vice versa. Therefore, weighing the possible short- and long-term consequences of a proposed course of action, and considering how each of those consequences relates to your company's strategic goals, can help you make smart trade-offs.
Optimizing your group's performance to improve company performance overall
Not the best choice. Optimizing your group's performance doesn't necessarily improve company performance overall. For example, if your group greatly increases sales within a short time period, the production staff may be unable to keep up—resulting in late deliveries of orders and dissatisfied customers. To make smart trade-offs, you need to consider the impact of any changes in your group's activities on the rest of your organization. Thus, the correct answer to this question is "weighing the short- and long-term consequences of a proposed course of action." Some trade-offs involve sacrificing short-term gains in order to achieve important long-term gains, or vice versa. Therefore, weighing the possible short- and long-term consequences of a proposed course of action, and considering how each of those consequences relates to your company's strategic goals, can help you make smart trade-offs.