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Reasoning is how we draw conclusions about a subject, i.e. a set of premises. There is inductive and deductive reasoning involved in business management. They both have their strengths and weaknesses, therefore their appropriate applications.

In the case of strategy formation, though induction is more error prone, it is also more flexible and better suited for the incomplete and ambiguous information that the world throws at us. Deduction does have its role in strategy, but not an all encompassing role.

Deduction and its role in strategy development --

  • Deduction will fail in producing effective strategy because information is incomplete. Ambiguity is not tolerated in deduction.
  • Deduction can help to prepare minds - to better understand the context to make better strategic decisions.
  • Deduction tends towards convergence which tends towards alignment and execution, which is good for efficiencies around a common objective but ...
  • ... deduction works against the learning and adaptation needed in an evolving world, where convergence explores the world and options are kept open.