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Applying Behavioral Strategy to Extreme Circumstances such as Covid 19
Behavioral strategy affected decisions made during the COVID-19 disruption. It provides psychologically based interpretations that can illuminate how individuals and organizations respond to such disruptions. Behavioral strategy suggests that strategists may not be good at using formal models, rules, or forecasts because they are not statisticians. There is supporting evidence of this observed during the disruption caused by Covid-19. Some decision-makers treated extreme model projections as deterministic predictions rather than recognizing them as highly unlikely worst-case scenarios. Decision-makers appeared to overlook the consequences of or misunderstand the lack of error margins around initial forecasts. Also of relevance, decision-makers may rely too much on models, forecasts, and data that are available. When decision-making problems are ill-structured and require quick action, relying solely on formal models and forecasts can be problematic. It becomes necessary to incorporate intuition and soft data into the decision-making process in these cases.

Strategy making is a deeply social process and strategy research doesn't sufficiently account for this. Different experts' social standards vary and this will influence what information is collected.

COVID-19 highlighted how behavioral strategy frameworks don’t allow for dealing with uncertainty that goes beyond standard treatments of risky decision-making. "Epistemic funneling" is a social process in which deliberate information gathering, the reliance on some experts rather than others, shapes the funnel. It is a challenge to determine which alternative strategic action will arrive at the exact estimates of costs and benefits. Behavioral strategy is useful in extreme circumstances, however, there is more research to be done on the weaknesses present for disruptions like this.