Answer to Question #201810 in Microeconomics for Bev Jeffries

Question

What are the advantages of not publicly disclosing a security strategy or of withholding portions of a strategy due to the classified nature of the information? What are the disadvantages?

Answer 1

The question is whether it is necessary to involve a team of managers and key employees in creating the strategy, whether it is necessary to inform and explain the strategy to the entire company, as I strongly recommend in my article, or is the strategy a matter of only top management, secret knowledge that needs to be kept in secret from the entire team of the company?

Each option has its own pros and cons. If the strategy is known to all employees, then there is a danger of spreading this information, passing it on to competitors. The situation is quite real when one or another specialist goes to work for competitors, and it is unlikely that he will hide important information from the new employer.

On the other hand, if employees do not know anything about the strategic goals and strategy of the company, then how to get them interested in achieving ambitious goals, coordinating their actions for the sake of a common cause? After all, the most important function of strategic management is to form a common vision, which acts as a force field on disparate particles, combining them into a powerful stream of energy.