Background: Strategic regret stems from the gap between the actual outcomes of major decisions and the initial expectations of managers, potentially leading to resource entrapment and organizational inertia. However, existing literature lacks a coherent framework for understanding and addressing this phenomenon within public sector organizations.
Aim: The aim of this research is to elucidate the concept of strategic regret management, present a typology of its various forms, and design an indigenous model to manage this phenomenonthereby transforming it into an opportunity for learning and the correction of strategic paths within government organizations.
Methodology:The research was conducted with a qualitative approach and thematic analysis method. Data were collected through semi-structured interviews with 20 senior managers in Kohgiluyeh and Boyer-Ahmad provinces using purposive sampling and analyzed using Brown and Clark's six-step model and Atlas.ti software.
Findings: The research findings indicated that strategic regret arises when a gap emerges between the actual outcomes of strategic decisions and the managers' initial expectations. Based on the data analysis, two types of strategic regret were identified: "hard" organizational regret and "soft" organizational regret. Furthermore, the results showed that managing this phenomenon can be explained through four key dimensions: managing the causes of regret, managing the process of its emergence, managing its consequences, and institutionalizing learning from the regret.
Conclusions: By shifting the perspective on regret from an organizational detriment to a driver of learning, this study presents an operational model that enables public sector managers to effectively manage this phenomenon, thereby mitigating the risk associated with future decisions and enhancing the organization's strategic resilience.