Posturing your firm for the future: considering environmental uncertainty and managerial sentiment

Abstract

PurposeAll leaders must position their firms for future success. However, not all firms should search for information and craft their strategies in the same way. This paper aims to provide a framework, which suggests that firms should adopt different postures depending on extent of environmental uncertainty and whether leaders are optimistic or pessimistic about their firms’ abilities and futures.Design/methodology/approachThis framework was designed by two strategy professors based on both strategy theory and their experience working with and observing firms over many years.FindingsThe framework’s four postures – versatile (high uncertainty, positive sentiment), inquisitive (high uncertainty, negative sentiment), focused (low uncertainty, positive sentiment), and vigilant (low uncertainty, negative sentiment) – call for different behavior as firms seek to understand environmental trends and take strategic actions. The dangers of each posture are briefly discussed.Originality/valueThis paper provides a simple framework to help executives better understand how their firms should search for and implement strategic actions for future success.