STRATEGY

Months to result

Short Time Horizon Framework

Expediency over analysis

Decision-Making Growth Innovation

Problem it solves

unclear strategic direction

Best for

Emerging industries with high growth potential

Not ideal for

Mature industries with low growth potential

Overview

Why this framework exists

The Short Time Horizon Framework describes the phenomenon of companies in emerging industries prioritizing expediency over analysis in their decision-making. This framework highlights the importance of being adaptable and responsive to changing market conditions.

Core principles

3 total

Companies in emerging industries must be adaptable and responsive to changing market conditions
Expediency is often prioritized over analysis in decision-making
Industry conventions are often born out of pure chance

Steps

3 steps

Prioritize expediency over analysis
Develop a decision-making strategy that prioritizes expediency over analysis, such as using heuristics or rules of thumb
Pro tipUse real-time data and feedback to inform decision-making
WarningBe aware of the risks of prioritizing expediency over analysis, such as overlooking important factors or ignoring long-term consequences
Be adaptable and responsive to changing market conditions
Develop a strategy to stay agile and responsive to changing market conditions, such as using scenario planning or contingency planning
Pro tipUse scenario planning to anticipate and prepare for potential future scenarios
WarningBe prepared to pivot or adjust course in response to changing market conditions
Develop industry conventions
Develop a strategy to establish industry conventions, such as using benchmarking or best practices
Pro tipUse benchmarking to identify and adopt best practices
WarningBe aware of the risks of blindly following industry conventions without critically evaluating their effectiveness

Checklist

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Prioritize expediency over analysis in decision-making
Be adaptable and responsive to changing market conditions
Develop industry conventions using benchmarking and best practices
Critically evaluate the effectiveness of industry conventions and be willing to pivot or adjust course

Examples

2 cases

Solar heating industry

The solar heating industry has prioritized expediency over analysis in its decision-making, highlighting the importance of being adaptable and responsive to changing market conditions

OutcomeThe industry's emphasis on expediency has led to rapid growth and innovation, but also raises concerns about long-term sustainability

Digital watches industry

The digital watches industry has prioritized expediency over analysis in its decision-making, highlighting the importance of being adaptable and responsive to changing market conditions

OutcomeThe industry's emphasis on expediency has led to rapid growth and innovation, but also raises concerns about long-term sustainability

Common mistakes

3 traps

Overemphasis on analysis

Overemphasizing analysis can lead to paralysis and a lack of action in emerging industries

Lack of adaptability

Failing to be adaptable and responsive to changing market conditions can lead to a lack of competitiveness

Blindly following industry conventions

Blindly following industry conventions without critically evaluating their effectiveness can lead to a lack of innovation and stagnation

Origin story

How this framework came to be

The concept of short time horizons has been observed in various industries, including the solar heating industry, where companies have prioritized expediency over analysis in their decision-making.

Source

Traced to primary

Source · BOOK

Competitive Strategy

Michael E. Porter · 1980

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