Strategy Under Uncertainty

Hugh Courtney, Jane Kirkland, Patrick Viguerie. Harvard Business Review.

Open on HBR

Commented abstract

The paper translates the problem of uncertainty into levels and operational postures: not all uncertain futures require the same response. The taxonomy — a sufficiently clear future, discrete scenarios, a range of possibilities, deep ambiguity — prevents the undifferentiated use of the term "uncertainty."

Structured commentary

Introduction

The merit of the paper is to articulate uncertainty into levels, each associated with a distinct operational posture: a sufficiently clear future, a discrete set of scenarios, a continuous range of possibilities, deep ambiguity. Such a taxonomy is valuable for MARTRO because it withdraws the term "uncertainty" from its use as an indistinct category, requiring one to qualify its type before prescribing a response.

The value of the source consists not in offering a corporate recipe transferable as such to the small firm, but in teaching one to classify before intervening. The small firm often passes directly from operational annoyance to solution — buying software, hiring, changing supplier, opening a channel — and the contribution of the paper is to reintroduce a prior step: which type of future is being confronted, and which posture is coherent with that degree of knowability?

For MARTRO this becomes a defence of the diagnostic entry. The diagnosis must not sell implementation immediately but help the client establish whether the choice is ripe for a full investment, for an experiment, for an informed wait, or for the preservation of options. The postures of shape, adapt, and reserve the right to play lend themselves to a more sober lexicon — to orient, to adapt, to keep a possibility open — on condition that the posture precede the project.

On the operational plane, faced with a decision, the reading may interrogate what is known, what is scenarisable, what remains ambiguous, and which costs the commitment entails. If the future is a range, the best action may be a test that learns; if it is ambiguous, a choice that buys time and options; if it is sufficiently clear, postponement may itself become a cost. The value lies in the comparison of postures, not in dogma.

The boundary consists in preventing the paper from converting into an elevated strategic lexicon distant from real work. The entry must bring each level back to concrete decisions — contracts, roles, tools, channels, capacity, reversibility — without promising to resolve uncertainty, but helping to choose a posture more coherent with its form.

Why it matters for MARTRO

it requires classifying the type of future before prescribing a response, disaggregating the notion of uncertainty.

Limits and boundaries of use

it is a corporate recipe; it must be translated to the scale and real work of the SME.

it does not resolve uncertainty; it helps choose a posture coherent with its form.

Practical application for SMEs

let the posture (orient, adapt, preserve options) precede the project.