The Strategic Paradox of Plan B: Safeguarding Failure or Enabling Resilience?
Traditional risk management posits that all significant risks should be identified, assessed, and mitigated—often via a Plan B (Knight, 1921). However, strategic management theory (e.g., Porter’s competitive strategy) emphasizes commitment. Porter (1980) argued that clear, irreversible commitments signal credibility to competitors and stakeholders. plan b
| Characteristic | Description | Example (NASA Apollo 13) | | :--- | :--- | :--- | | | Plan B must be significantly less desirable than Plan A, preventing easy switching. | Using the LM as a lifeboat was awful but survivable. | | Latency | Plan B is fully developed but not activated until specific triggers occur. | Pre-written emergency procedures. | | Non-Compensation | Plan B does not compensate for failures of Plan A; it offers a different path. | A diplomatic backup does not fix a military failure. | The Strategic Paradox of Plan B: Safeguarding Failure