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<h1>Brainfood</h1>
<h2>Article of the month</h2>
<h2>So you think you know how to develop good strategy …</h2>
<p>Lots of us in business think we are pretty smart when it comes to making strategy.
We’ve had a few good years. Bit of growth, smart products, good clients,
money in the bank. But every so often you read something that questions the
very basis of your thinking. </p>
<p>The latest piece from McKinsey & Company does just that. It ponders why
after 40 years of management theory, great know-how and executive training do
such bad business decisions happen. Surely it is more than greed and poor analysis.
McKinsey puts forward an interesting idea – it is the human brain and the
shortcuts, biases and bad habits it has evolved over the millennia that is part
of the problem. </p>
<p>It all means that the brain can deceive us when we come to make rational decisions.</p>
<p>McKinsey identified eight insights drawn from behavioural economics theory:<br>
<b>Overconfidence</b> (great for launching new businesses but lousy for getting
strategy right);<br>
<br>
<b>Mental accounting</b> (treating money differently depending on where it comes
from, and how it is used i.e. preferring strategic investment in the Internet
vs. investment in core business activity);<br>
<b>The Status Quo Bias</b> (together with aversion to loss and wanting to hold
on to what we already own makes us reluctant to see the opportunities in selling
assets to create value); <br>
<b>Anchoring</b> (particularly where we become anchored to past performance
as an indicator of future performance);<br>
<b>The Sunk Cost Effect</b> (where we often throw good money after bad given
our original commitment to a particular dubious project);<br>
<b>The Herding Instinct</b> (the desire to conform to the behaviour and opinions
of others as in the dot-com era);<br>
<b>Misestimating Future Hedonic States</b> (Code for how bad people are at estimating
how much pleasure or pain they will feel if their circumstances change dramatically
– as in the way managers react to corporate takeover attempts); and the
big one …<br>
<b>False Consensus</b> (our tendency to seek out opinions and facts that support
our own; our habit of remembering only facts and experiences that reinforce
our assumptions; accepting evidence that supports our views and subjecting contrary
views to hostile evaluation; and groupthink – the pressure to agree with
others in team based cultures). </p>
<p>It is worth checking against this list your own motives and approach on strategy
development – and steering around the traps they present. In the end, it
may help us all reduce the chance of making some bad decisions.</p>
<p> </p>
<h2>Archived Articles</h2>
<h1> </h1>
<h2>Links</h2>
<h3>Politics</h3>
<p><a href="http://www.partnership.zip.com.au" target="_blank">Prime Minister's
Business Community Partnership</a> Commonwealth Government initiative that promotes
and enhances partnerships between business and the community. </p>
<p><a href="http://www.defra.gov.uk/environment/acbe/default.htm" target="_blank">Advisory
Committee on Business and the Environment (ACBE)</a> UK Government forum for
dialogue between Government and business on environmental issues. </p>
<p><a href="http://www.ea.gov.au/industry/sustainable/index.html" target="_blank">Environment
Australia (Department of Environment and Heritage)</a> <br>
Environmental reporting information, guidelines and links to company sites.</p>
<p><a href="http://www.greenhouse.gov.au" target="_blank">The Australian Greenhouse
Office</a> (AGO)<br>
Research and Commonwealth Government policy on greenhouse issues.</p>
<p><a href="http://www.seda.nsw.gov.au/" target="_blank">Sustainable Energy Development
Authority</a> (SEDA) NSW Government agency. </p>
<p><a href="http://www.seav.vic.gov.au" target="_blank">Sustainable Energy Authority</a>
Victorian Government agency.</p>
<p><a href="http://www.projectsigma.com" target="_blank">The Sigma Project</a>
UK Government supported partnership that develops tools and guidance to support
corporate sustainability. </p>
<h3>Media</h3>
<p><a href="http://www.newstext.com.au/" target="_blank">Newstext</a> - Search
articles from over 150 News Corporation newspapers (requires subscrption to
view articles)</p>
<p><a href="http://newsstore.f2.com.au/apps/tiles/nstore/search.jsp" target="_blank">News
Store</a> - F2 http://newsstore.f2.com.au/apps/tiles/nstore/search.jsp</p>
<h3>International</h3>
<p><a href="http://www.ipcc.ch/" target="_blank">Intergovernmental Panel on Climate
Change</a> Inter-organisational initiative that assesses scientific literature
on climate change. The assessment reports have encouraged international efforts
to control greenhouse gas emissions.</p>
<p><a href="http://www.unglobalcompact.org" target="_blank">United Nations Global
Compact</a> UN-established principles of corporate social and environmental
responsibility.</p>
<p><a href="http://www.unep.org">United Nations Environment Programme</a> - Sustainable
development research, information, policy development and technical transfer.</p>
<p><a href="http://unfccc.int/" target="_blank">United Nations Framework Convention
on Climate Change</a> - Kyoto Protocol, Convention texts, official documents,
country information and an online library.</p>
<h3>Non-Government Organisations and Networks</h3>
<p><a href="http://www.sustainability.com" target="_blank">SustainAbility</a>
Strategic CSR consultancy and sustainable development think-tank. </p>
<p><a href="http://www.globalreporting.org" target="_blank">Global Reporting Initiative</a>
(GRI) - International guidelines on corporate sustainability reporting. </p>
<p><a href="http://www.ethics.org.au">St. James Ethics Centre</a> - Non-profit
organisation providing advocacy, consulting, counselling and training on ethics.</p>
<p><a href="http://www.wbcsd.ch/" target="_blank">World Business Council for Sustainable
Development (WBCSD)</a> - Coalition of 150 international companies committed
to sustainable development. Contribute to the sustainability debate through
council and sector-led research projects.</p>
<p><a href="http://www.csrforum.com" target="_blank">Corporate Social Responsibility
Forum</a> (Prince of Wales Business Leaders Forum) Case studies and resources
for CSR issues.</p>
<p><a href="http://www.ceres.org">Coalition for Environmentally Responsible Economies</a>
- Coalition of US environmental, investor and advocacy groups. Developed the
CERES principles, a ten point code of corporate environmental conduct. </p>
<p><a href="http://www.bitc.org.uk" target="_blank">Business in the Community</a>
- Non-profit organisation promoting socially responsible practices. Produces
an Index of Corporate Environmental Engagement annually to benchmark the performance
of participating FTSE listed companies.</p>
<p><a href="http://www.accalliance.asn.au" target="_blank">Australian Corporate
Citizenship Alliance</a> Member-based organisation promoting ethical and sustainable
business practices.</p>
<p><a href="http://www.accaglobal.com/sustainability/" target="_blank">The Association
of Chartered Certified Accountants</a> (UK) Sustainability reporting award scheme
for UK listed companies.</p>
<p><a href="http://www.accountability.org.uk/" target="_blank">AccountAbility
</a>(Institute of Social and Ethical Accountability) - Home of the AA1000 and
AA 1000 Series process standard for corporate stakeholder accountability and
dialogue. </p>
<p><a href="http://www.socialinvest.org/" target="_blank">Social Investment Forum</a>
(U.S) Social investment information, resources, news and media.</p>
<p><a href="http://www.thechamber.com.au/homezone/Policy/TheCommonGood/CommonGood.asp" target="_blank">
Common Good Program</a> (NSW State Chamber of Commerce) - Industry body initiative
providing forums, case studies and publications for businesses seeking to adopt
socially and environmentally responsible business practices.</p>
<p><a href="http://www.lbg-online.net/" target="_blank">The London Benchmarking
Group</a> - Member-based organisation involved in the management, measurement
and reporting of community involvement</p>
<p><a href="http://www.greenpeace.org.au/" target="_blank">Greenpeace Australia
Pacific</a> - Environmental advocacy group.</p>
<p><a href="http://www.tec.nccnsw.org.au/" target="_blank">Total Environment Centre</a>
- Australian environmental advocacy group.</p>
<p><a href="http://www.nccnsw.org.au/" target="_blank">Nature Conservation Council
of NSW</a> - Peak umbrella group for 130 conservation and environment groups
in NSW</p>
<p><a href="http://www.acfonline.org.au" target="_blank">Australian Conservation
Foundation</a> - Australian environmental advocacy group.</p>
<p><a href="http://www.wwf.org.au/">World Wide Fund for Nature Australia</a> -
Global conservation organisation.</p>
<p><a href="http://www.foe.org.au/" target="_blank">Friends of the Earth Australia
</a>- Environmental advocacy group.</p>
<p><a href="http://www.environmentaldefense.org" target="_blank">Environmental
Defence</a> - Environmental advocacy group.</p>
<p><a href="http://www.auswea.com.au/" target="_blank">Australian Wind Energy
Association</a> - Promotion of wind energy though education, research and advocacy.</p>
<p><a href="http://www.greenpower.com.au/" target="_blank">Green Power</a> - Renewable
energy product accreditation scheme developed by SEDA. </p>
<p><a href="http://www.anzses.org/" target="_blank">The Australian and New Zealand
Solar Energy Society</a> - Promotion of solar energy through research, advocacy
and information dissemination.</p>
<p><a href="http://www.ecogeneration.com.au/" target="_blank">Australian EcoGeneration
Association</a> - Promotion of sustainable power through education, advocacy
and advice.</p>
<p><a href="http://www.bsr.org" target="_blank">Business for Social Responsibility</a>
(BSR) - Member-based organisation assisting companies in achieving socially
responsible commercial success.</p>
<p><a href="http://www.sustainability-index.com/" target="_blank">Dow Jones Sustainability
Index</a> - Benchmark index of sustainability companies.</p>
<p><a href="http://www.forumforthefuture.org.uk" target="_blank">Forum for the
Future</a> - Sustainable development consultancy, research, advocacy and education.</p>
<p><a href="http://www.iied.org/" target="_blank">International Institute for
Environment and Development</a> - Non-profit organisation promoting sustainable
development through research, policy studies, and knowledge dissemination. Managed
the MMSD (Minerals Mining and Sustainable Development analysis).</p>
<p><a href="http://www.iisd.org">International Institute for Sustainable Development</a>
- Policy research, analysis and advocacy on sustainable development issues.</p>
<p><a href="http://sdgateway.net/" target="_blank">Sustainable Development Gateway</a>
- Clearinghouse for information on sustainable development, including a calendar
of events and links to SD news sites.</p>
<p><a href="http://www.corporateregister.com/" target="_blank">CorporateRegister.com</a>
- Directory of corporate environmental and social reports.</p>
<p><a href="http://www.enviroreporting.com/">The International Corporate Environmental
Reporting Site</a> - Environmental reporting resources. </p>
<p> <a href="http://www.ethicalperformance.com/" target="_blank">Ethical Performance</a>
- Independent newsletter for socially responsible businesses.</p>
<p><a href="www.csreurope.org" target="_blank">CSR Europe</a> - Organisation for
European businesses focused on Corporate Social Responsibility. </p>
<p><a href="http://www.neweconomics.org/" target="_blank">New Economics Foundation</a>
- UK-based think-tank that develops solutions to social, environmental and economic
issues. </p>
<h3>Educational Institutions</h3>
<p><a href="http://arts.deakin.edu.au/ccr" target="_blank">Deakin University Corporate
Citizenship</a> - Conducts collaborative research to improve understanding of
how corporations become good corporate citizens. </p>
<p><a href="http://www.isf.uts.edu.au" target="_blank">UTS Institute for Sustainable
Futures</a> - Sustainability research, training and consultancy.</p>
<p><a href="http://www.ceda.com.au/" target="_blank">Committee for Economic Development
of Australia</a> - Non-profit organisation undertaking research and discussion
into issues affecting Australia's growth.</p>
<h3>Political</h3>
<p><a href="http://www.crikey.com.au/" target="_blank">Crikey</a> - Political,
media and business commentary. </p>
<p><a href="http://www.henrythornton.com" target="_blank">Henry Thornton </a>-
Economic, political and investment commentary.</p>
<p><a href="http://www.subvertise.org/" target="_blank">Subvertise.org</a> - Archive
of subverts, political art and articles.</p>
<p><a href="http://www.cato.org/" target="_blank">The Cato Institute</a> - Washington-based
non-profit public policy foundation. </p>
<p><a href="http://www.onlineopinion.com.au/" target="_blank">On Line Opinion</a>
- Non-profit e-journal providing a forum for public social and political debate.</p>
<p><a href="http://www.ipa.org.au/" target="_blank">The Institute of Public Affairs
Australia </a>- Public affairs think-tank</p>
<p><a href="http://www.counterpunch.org/" target="_blank">CounterPunch</a> - Political
newsletter.</p>
<h3>Australian Political Parties and Groups</h3>
<p><a href="http://www.nla.gov.au/oz/gov/party.html" target="_blank">National
Library of Australia - Political Parties List</a> - Fairly comprehensive list
of Australian Political Parties with an online presence.</p>
<p><a href="http://www.aph.gov.au/library/intguide/pol/polparti.htm" target="_blank">Department
of the Parliamentary Library</a> - Links to Australian political parties and
groups.</p>
<p><a href="http://www.nationalparty.org/" target="_blank">National Party</a>
</p>
<p><a href="http://nsw.nationalparty.org/" target="_blank">National Party - NSW</a>
</p>
<p><a href="http://www.liberal.org.au/" target="_blank">Liberal Party of Australia</a>
</p>
<p><a href="http://www.nsw.liberal.org.au/" target="_blank">Liberal Party of Australia
- NSW </a></p>
<p><a href="http://www.alp.org.au/" target="_blank">Australian Labour Party</a>
</p>
<p><a href="http://www.nswalp.com" target="_blank">Australian Labour Party - NSW</a>
</p>
<p><a href="http://www.democrats.org.au/" target="_blank">The Australian Democrats</a>
</p>
<p><a href="http://www.christiandemocratic.org.au/" target="_blank">Christian
Democrat Party</a> </p>
<p><a href="http://www.greens.org.au/" target="_blank">The Australian Greens</a></p>
<h3>Local Government</h3>
<p><a href="http://www.dlg.nsw.gov.au" target="_blank">NSW Department of Local
Government</a> - Includes links to NSW Councils.</p>
<p><a href="http://www.lgsa.org.au" target="_blank">Local Government and Shires
Association of NSW </a>- Representative body of NSW Councils.</p>
<h3>Public Relations</h3>
<p><a href="http://www.pria.com.au" target="_blank">Public Relations Institute
of Australia</a> - Member-based organisation representing the interests of Australian
public relations and communication professionals.</p>
<p><a href="http://www.holmesreport.com/" target="_blank">Holmes Report</a> -
Public relations newsletter, research and consultancy.</p>
<p><a href="http://www.ipr.org.uk/" target="_blank">Institute of Public Relations</a>
- UK public relations industry professional body. </p>
<p><a href="http://www.mediainsider.com" target="_blank">Media Insider</a> - Online
resource linking reporters with expert sources. </p>
<p><a href="http://www.pollingreport.com/" target="_blank">Polling Report.com</a>
- US public opinion polls.</p>
<p><a href="http://www.prnewswire.com/" target="_blank">PR Newswire</a> - News
targeting, monitoring and distribution.</p>
<p><a href="http://www.prweek.com/" target="_blank">PR Week</a> - PR news and
information.</p>
<p><a href="http://www.project-syndicate.org" target="_blank">Project Syndicate</a>
- International newspaper association.</p>
<p><a href="http://www.media-culture.org.au/" target="_blank">Media-culture.org.au</a>
- University of Queensland media and culture journal.</p>
<p><a href="http://www.alternet.org/" target="_blank">Alternet.org</a> - Independent
Media Institute online public affairs magazine. </p>
<h3>Good examples of grassroots action groups in Australia </h3>
<p><a href="http://www.nccnsw.org.au/%7Ecmass/index.shtml" target="_blank">Sydney
Critical Mass</a> </p>
<p><a href="http://galifrey.triode.net.au/bikenorth/" target="_blank">Bike North
– Bicycle User Group</a> </p>
<p><a href="http://www.bicyclensw.org.au" target="_blank">Bicycle NSW</a></p>
<p><a href="http://www.railtrails.org.au" target="_blank">Rail Trails Australia</a></p>
<p><a href="http://users.hunterlink.net.au/%7Emagsb" target="_blank">Newcastle
Cycleways Movement</a></p>
<p><a href="http://www.pedalpower.org.au/index.htm" target="_blank">Pedal Power
ACT</a></p>
<p><a href="http://www.bfa.asn.au" target="_blank">Bicycle Federation of Australia</a></p>
<p><a href="http://www.mtba.asn.au" target="_blank">Mountain Bike Australia</a></p>
<p><a href="http://www.cyclingpromotion.com" target="_blank">Cycling Promotion
Fund</a></p>
<p><a href="http://www.australianbicyclelobby.com" target="_blank">Australian
Bicycle Lobby</a></p>
<p><a href="http://www.bq.org.au" target="_blank">Bicycle Queensland</a></p>
<p><a href="http://www.ecotransit.org.au" target="_blank">EcoTransit Sydney</a></p>
<p><a href="http://home.vicnet.net.au/%7Eptua/" target="_blank">Public Transport
Users Association</a></p>
<p><a href="http://www.aptnsw.org.au" target="_blank">Action for Public Transport
- NSW</a></p>
<p><a href="http://www.cleanup.com.au" target="_blank">Clean Up Australia</a></p>
<p><a href="http://www.waterwatch.org.au" target="_blank">Waterwatch Australia</a></p>
<p><a href="http://www.oztoxics.org/ntn" target="_blank">National Toxics Network</a></p>
<p><a href="http://www.lead.org.au/au.html" target="_blank">The LEAD Group</a></p>
<p><a href="http://www.sydneycoastalcouncils.com.au" target="_blank">Sydney Coastal
Councils Group Inc.</a></p>
<p><a href="http://www.environs.org.au" target="_blank">Environs Australia</a></p>
<p><a href="http://ssec.org.au" target="_blank">Sutherland Shire Environment Centre</a></p>
<p><a href="http://www.uow.edu.au/%7Emorgan/irate.html" target="_blank">Illawarra
Residents Against Toxic Environments</a></p>
<p><a href="http://www.fan.forests.org.au" target="_blank">The Forest Activist
Network</a></p>
<p><a href="http://www.hpg.org.au" target="_blank">Headland Preservation Group</a></p>
<p><a href="http://home.primus.com.au/cercle/foreshore2000.htm" target="_blank">Foreshore
2000 Woolwich</a></p>
<p><a href="http://home.vicnet.net.au/%7Efbpw/" target="_blank">Friends of Bushy
Park Wetlands</a></p>
<p><a href="http://home.vicnet.net.au/%7Efomc/" target="_blank">Friends of Merri
Creek</a></p>
<p><a href="http://www.friendsofdarebincreek.org.au/" target="_blank">Friends
of Darebin Creek</a></p>
<p><a href="http://www.tfn.org.au/" target="_blank">Trust for Nature</a></p>
<p><a href="http://www.envict.org.au" target="_blank">Environment Victoria</a></p>
<p><a href="http://www.nor.com.au/community/koala/" target="_blank">The Friends
of the Koala</a></p>
<p><a href="http://acon.com.au/lcnpfriends" target="_blank">Friends of Lane Cove
National Park</a></p>
<p><a href="http://www.hallettcoveconservation.airnet.com.au/" target="_blank">Friends
of Hallet Cove Conservation Park</a></p>
<p><a href="http://www.rrcsa.org.au/friends.html" target="_blank">Friends of Anembo
Park</a></p>
<p><a href="http://sunsite.anu.edu.au/canberra/bmweb/" target="_blank">Friends
of Black Mountain</a></p>
<p><a href="http://users.senet.com.au/%7Efobhm/" target="_blank">Friends of Black
Hill and Morialta Conservation Parks</a></p>
<p><a href="http://www.savethemurray.com.au" target="_blank">Save the Murray</a></p>
<p><a href="http://www.murrayriverrescue.com.au" target="_blank">Murray River
Rescue</a></p>
<p><a href="http://www.savetheridge.org.au" target="_blank">Save the Ridge</a></p>
<p><a href="http://www.save-albert-park.org.au/" target="_blank">Save Albert Park</a></p>
<p><a href="http://www.sorb.org.au/" target="_blank">Save our Riverfront Bushland</a></p>
<p><a href="http://www.colongwilderness.org.au" target="_blank">The Colong Foundation
for Wilderness</a></p>
<p><a href="http://www.oren.org.au" target="_blank">Otway Ranges Environment Network</a></p>
<p><a href="http://www.pwd.org.au/" target="_blank">People With Disabilities</a></p>
<p><a href="http://www.mentalhealth.asn.au/org.htm" target="_blank">Mental Health
Association NSW</a></p>
<p><a href="http://www.sydpcug.org.au/" target="_blank">Medical Consumers Association
of NSW</a></p>
<p><a href="http://www.wwda.org.au" target="_blank">Women With Disabilities Australia</a></p>
<p><a href="http://members.ozemail.com.au/%7Eadacas/" target="_blank">ACT Disability,
Aged and Carer Advocacy Service</a></p>
<p><a href="http://www.amalg.asn.au/" target="_blank">Australian Midwives Act
Lobby Group</a></p>
<p><a href="http://www.acd.org.au/homeb.html" target="_blank">Association for
Children with a Disability</a></p>
<p><a href="http://www.aad.org.au" target="_blank">The Australian Association
of the Deaf</a></p>
<p><a href="http://users.hunterlink.net.au/%7Embbmwg/" target="_blank">Disability
Advocacy Service Hunter</a></p>
<p><a href="http://www.users.bigpond.com/crossings/" target="_blank">Breast cancer
Action Group - NSW</a></p>
<p><a href="http://www.deac.org.au/index.html" target="_blank">Disability Employment
Action Centre</a></p>
<p><a href="http://www.bca.org.au/" target="_blank">Blind Citizens Australia</a></p>
<p><a href="http://www.adec.org.au/" target="_blank">Action on Disability Within
Ethnic Communities</a></p>
<p><a href="http://www.dice.org.au/%7Eviccid/" target="_blank">The Victorian Advocacy
League for Individuals with Disability</a></p>
<p><a href="http://www.adf.org.au/index.htm" target="_blank">Australian Drug Foundation</a></p>
<p><a href="http://www.sos.org.au/" target="_blank">Save our Suburbs</a></p>
<p><a href="http://www.choice.com.au/" target="_blank">Australian Consumers Association</a></p>
<p><a href="http://www.wel.org.au" target="_blank">Women's Electoral Lobby</a></p>
<p><a href="http://www.nsw-ski-patrol.org.au/" target="_blank">NSW Ski Patrol</a></p>
<p> </p>
<p> </p>
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