Making Fast Strategic Decisions in High-Velocity Environments.

How do executive teams make rapid decisions in the high-velocity microcomputer industry? This inductive study of eight microcomputer firms led lo propositions exploring that question. Fast decision makers use more, not less, information than do slow decision makers. The former also develop more, not fewer, alternatives, and use a two-tiered advice process. Conflict resolution and integration among strategic decisions and tactical plans are also critical to the pace of decision making. Finally, fast decisions hased on this pattem of hehaviors lead to superior performance. In October 1984, Gavilan Computer filed for bankruptcy protection under Chapter 11. Despite a 31 million stake from venture capitalists, Gavilan experienced delays and indecision that ultimately cost the firm its early technical and market advantages. The firms leading-edge technology hecame a quot;me too quot; one and competitors flooded its empty market niche. As the firm died, one executive mourned: quot;We missed the window quot; (Hof, 1984).