BUKD-J 750 Behavioral Strategy (EDBA)

• 12 weeks
• 3.00 credits
• Prerequisite(s): Kelley Direct Online Executive Doctor of Business Administration (EDBA) students only

In this course, students will explore the intricacies of behavioral strategy, focusing on how cognitive biases, heuristics, and bounded rationality in general influence strategic decision-making. Many of the fundamental theories underlying the field of strategic management assume strong forms of rationality on the side of decision makers. In recent decades, research across a wide range of fundamental disciplines in social sciences has revealed that our behaviors often do not align with these traditional models. Humans deviate from rationality in both predictable and random ways. The examination of such behaviors, when applied to strategic management topics, has become the cornerstone of behavioral strategy.

In the context of evolving markets, technological advancements, and dynamic competitive landscapes, organizations must navigate complex decision-making environments. Strategic decisions, characterized by ill-defined alternatives, coarse-grained representations, and conditions of high uncertainty are prime targets for errors of judgment, noisy signals, cognitive shortcuts and … pose great opportunities for extraordinary decision-making and foresight. This course aims to equip students with a deep understanding of how behavioral factors impact strategic choices and subsequent organizational performance. We will focus on two main questions:

• Why do smart people make serious strategic mistakes?
• What can we do about it?

Throughout the course, we will engage in applied, case-based and experiential learning with additional videos and materials to foster meaningful discussions during live sessions. The emphasis will be on understanding both the drivers and consequences of behavioral factors in strategic decision-making in organizations.

By the end of this course, students will have a comprehensive understanding of how behavioral insights can be applied to strategic decision-making, enabling them to navigate and influence complex organizational environments effectively.