My Simple Framework for Better Strategic Decision Making
Author
How Recognizing Headwinds and Tailwinds Drives Better Decision-Making and Sustainable M&A Growth
If there is a singular thought that guides my decision making each day… something I reinforce with my team almost as often… it’s the concept of understanding headwinds or tailwinds when deciding where to spend our collective time. Again, remarkably simplistic in overall concept, but pound for pound the most important thing I factor in when prioritizing my strategic “to do” list.
Headwinds refer to factors that challenge an organization’s growth. My world is M&A. I am continually thinking about cultural fit, geography, growth capacity, and myriad other attributes. Any one obstacle can mean the difference between success and failure. The textbook will say when facing headwinds, businesses must adapt, innovate, and overcome these challenges but in buying and selling, my best advice is often to move on… and look for tailwinds!
Tailwinds represent favorable conditions that accelerate mutually successful outcomes. I spend my days beating a singular drum inside OneDigital; find and leverage your tailwinds to accelerate growth and gain a competitive edge. The psychology of tailwind management can be extraordinary.
It takes some real self-awareness, discipline, and critical thinking when assessing these forces:
1. Contextual Analysis: Every deal and relationship is different. You must constantly assess the unique context of each scenario.
2. Balanced Perspective: Don’t focus only on challenges (headwinds). Recognize and leverage opportunities (tailwinds) as well.
3. Scenario Planning: Plan for every possible outcome, both good and bad.
4. Holistic View: Evaluate both internal and external factors. Company culture, leadership, and operational efficiency play a role alongside broader market forces.
5. Adaptability: Be flexible and adjust to changes quickly. Know when to walk away.
Closing a deal is always hard, even if it’s nothing but tailwinds behind you. To avoid wasting time, the best thing my team can do is get to “no” quickly. Carefully assessing (and reassessing) headwinds and tailwinds helps see through the noise and execute.
Read the full series from Mike and Connect with him on LinkedIn, here. To hear more from leaders who joined OneDigital through acquisition, visit the Why OneDigital Hub.