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FinanceTheory / principleReal options theoryWhen and how should real options theory be applied?Use real options reasoning when outcomes are uncertain, management can respond to future information, the response has material economic value and the initial decision affects whether that flexibility remains available. It is especially useful when a conventional discounted cash flow or net present value calculation treats management as passive and therefore misses the value of staged commitment.IntermediateStrategicFigures
Organisational behaviourFramework / modelSocially engineered changeHow can socially engineered change support strategic choice or positioning?Use the model when an organisation has chosen a strategy or working method and needs to embed it quickly but sustainably. The approach begins with a clear view of the intended end state—echoing Covey’s principle of beginning with the end in mind—and translates that destination into practical rules for daily business. It is most suitable when the change can be planned, directed and described with enough precision for managers and teams to act consistently.AccessibleStrategicFigures