A strategic decision quality optimization approach with WSC framework

Abstract

With China entering the era of high-quality development, it is of vital importance to improve strategic decision quality (SDQ) of state-owned enterprises (SOEs). As one of the most basic strategic decisions in the process of SOEs reform, position evaluation (PE) is seldom studied from the perspective of strategic decision. Instead of adopting the single decision-making body of traditional SDQ evaluation, a new PE model based on the multi-level strategic decision-making body and aiming at the dynamic balance between strategic stability and strategic change is constructed under the WSC (i.e., “Who”-“Should do”-“Can do”) framework combining top-down strategy and bottom-up strategy. Compared with the traditional model, the three key phases of this new PE model are establishing decision-making body, determining weight of bodies, and optimizing subject weights by K-means. The empirical results show that the model can comprehensively consider the opinions of senior, middle and grass-roots employees by reasonably optimizing subject weights, so as to effectively optimize the existing PE in SDQ of SOEs. This provides a direction for the SDQ optimization of SOEs and a new idea for SDQ evaluation research.

Keywords

• K-means
• Position evaluation
• Strategic change
• Strategic decision quality
• Strategic stability