Beruflich Dokumente
Kultur Dokumente
ST4S39-V1
Chrystalla Markou
Ola Ouso
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1. Introduction:
decisions, hence big concentrate should be given to the strategic management level if
they have strategic system thinking or not, this essay is a theoretical paper aims to
by reviewing the literature of the following concepts: strategy, strategic thinking, system
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2. Approaches to Strategic Thinking:
Strategy term in the business economics used first time at American universities –
Chandler. Jr, author of Strategy and Structure (1962) defined strategy as “the
determination of the basic long-term goals and objectives of an enterprise, and the
adoption of courses of action and the allocation of resources for carrying out these goals.”
Mintzberg 1987 in his article “Crafting a Strategy” at Harvard Business Review explained
how to craft a strategy step by step starting from knowing the organization capabilities
Kenichi Ohmae, in his article titled ‘‘Getting Back to Strategy’’ (1988), states that strategy
means ‘‘working hard to understand a customer’s inherent needs and then rethinking
Ansoff & McDonnell 1990 emphasized that each organization should have four levels of
rules guided: (objective and targets, product strategy and marketing, organizational
Michael Porter in his rule released another definition for strategy in his article 1996,
“strategy is the creation of a unique and valued position, involving a different set of
activities.”
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While (Anthony W. Ulwick,1999, p4) defined the strategy “A strategy is simply a plan, a
Richard Whittington in his article “big strategy/small strategy” highlighted that powerful
firms rally efforts on big strategy to assure the effects reverberate throughout society.
Henry Mintzberg and James A. Waters (1985, p270) summarized the types of strategy
Consensus, Imposed.
Then Henry Mintzberg and Joseph Lampal in 1999 released an article named “Reflecting
on The Strategy Process” described in this article the ten schools of strategy formation,
which they are: Design school, planning school, positioning school, entrepreneurial
school, cognitive school, learning school, power school, cultural school, environmental
Neil Reston in his book “Strategic Management” (2011, p24) divided strategic
Positional school: based on Boston Consulting Group matrix that aim to place the
Resource based school: placed by Robert Grant and concentrate on the internal
environment.
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From my understanding organization strategy is a long term plan to obtain a stated goal,
this plan is placed by the senior managers that have strategic thinking to generate a main
plan using many tools to analyze the external and internal environment.
and flexibility based on the organization type and size, hence strategic writer should have
a high level of strategic thinking, ability to analysis different contexts, and planning for
different levels.
The objective is indeed to think and manage strategically, not to engage in strategic
planning for the sake of strategic planning (Nickols. F, 2008, p6), It is clear that a great
deal of strategic thinking must be put in the development of a strategic plan, and once
Mintzberg describes strategic thinking as a distinct way of thinking that utilizes intuition
and creativity with the outcome being “an integrated perspective of the enterprise.”
Goldman et al. apply Mintzberg definition to a business context, suggesting that effective
strategic thinking leads to competitive advantage as sited in (Haycock. K, et al, 2012, p3).
The U.S. Internal Revenue Service, 2001 offers another definition of Strategic Thinking
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Tim O'Shannassy, (1999, p15) defined the Strategic thinking as a flexible means of
solving strategic problems and conceptualizing the future of the firm within the strategic
Strategic thinking occurs in a dynamic landscape and by its nature adopts a perspective
Strategic thinking characteristics are analytical and creative (Gallimore. K, 2015, p2).
Thus, strategic thinking: formulates effective strategies that take into account the external
influences on an organization from a national and global perspective, and take into
confederation the internal facts by examines policy issues and strategic planning with a
Feyzollah. Z. E et al (2015, p 148) talked about Gean Liedtka model that summaries the
elements of strategic thinking based on Henry Mintzberg theories, this model showed the
Hashim MK, (2016, p5) provided us with strategic thinking approach model illustrated in
Obtaining insight
Developing foresight
Maintaining focus
- The first step understanding present situation and desired future: it helps the
- The second step is to diagnosing the business domain: includes observing and
understanding the firm’s business, its different internal components (such as its
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- The third step is to obtaining insight: obtaining insight involves in thinking critically
about the threats and opportunities. Also, to identify creatively the needs, the key
success factors of existing and new customers, markets, products and services,
- The fifth step is mapping the future direction: the organization needs to clearly
identified its future direction to be able to survive and grow in the long run, mapping
the organization ’s future direction involves applying critically and creatively the
inputs obtained from the previous four components of the strategic thinking
components.
Maree Conway, (2009, p2) emphasized that writing plans that are based on robust
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Strategic Thinking Generating Options
What might happen?
Options
Actions
Richard Whittington et al, (2007. P5) clarified the tendency to regard strategies as being
decided upon through relatively formal structures and systems, with less attention given
This clarify the importance of system and system thinking in strategies building.
3. System Thinking:
The need for systems thinking (ST) in organizations is being increasingly felt, and
sustained effort towards nurturing ST in organizations is still rare (Vemuri. E et al, 2017,
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Michael C. Jackson in his book (2008, p3) defined the system as “system is a complex
whole the functioning of which depends on its parts and the interactions between those
parts.”
Meadows 2008 said that systems thinking consists of three kinds of things: elements (in
this case, characteristics), interconnections (the way these characteristics relate to and/or
feed back into each other), and a function or purpose. (Ross D. Arnold ey al , 2015,
p670).
Katz and Kahn (1966) apply the concept of open system to the organization. The
organization is seen as a system built by energetic input-output where the energy coming
from the output reactivates the system. As sited in (Cristina Mele et al, 2010, p128).
Lauren Johnson and Anderson 1997 in their book “System Thinking Basics” sited the
5. Remember that we are all part of the system and we each influence those systems
Vemuri. E et al, 2017 provided us with the Spirit, Mind, Body Model (SMB) for the adoption
of Systems Thinking (ST) in organizations, and explained the model frame work as
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Systems of Spirit Systems of Mind Systems of the Body
Feedback systems
Vemuri. E et al, 2017, p4, SMB framework for the adoption of systems thinking in organizations
Networked systems can be described based on three parameters: variety, variability, and
concept of complexity, which can be very useful in interpreting. (Cristina Mele et al, 2010,
p131).
Surfacing and Testing, Soft Systems Methodology, and Critical Systems Heuristics.
and opportunities; mindfulness in all that we do; a collaborative mindset with others; and
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reflection in action on the dynamically changing world through which we move. (Cathy
information about our system – our situation of interest, System thinking tools as
mentioned in Burge Hughes Walsh Limited website are : 18 Words, Affinity Diagram,
Conceptual Model, Context Diagram, Decision Matrix, Functional Failure Mode and
Cause Diagram, N2 Analysis, Quad of Aims, Rich Picture, Root Definition, Sequence
we can say that Systems Thinking enables a framework that can produce sustainable
success. Below are the seven benefits of Systems Thinking for successful organizational
change.
2. A way to learn new things more easily. Its basic rules are simple and consistent they
4. A clearer way to see and understand what is going on in any organization and its
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5. A new and better way to create strategies, to problem solve, and to make superior
decisions while finding leverage points for change, keeping the outcomes (positioning)
6. A better way to stay focused on outcomes is by using the key the systems
approach question "What are the desired outcomes?" This question should be used to
begin the discussion about any issue, change, and complex problem an organization
has.
7. Thinking from a system approach provides a better language and a more complete and
holistic way of thinking. Its principles are a camera's wide-angle lens. It gives us a better
view on our "radar scope" a more effective way of thinking, communicating, acting, and
4. Complexity Perspective:
John Mingers and Leroy White 2009 in their article about the recent contribution of
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- An organization’s environment is complex, characterized as a ‘‘fitness landscape”
markets do not attain equilibrium; and there may be sudden dramatic changes.
Ronald J. Salazar et al, 2009 distinguished between system theories and Complex
Processes are Markovian and predictable Processes are random and unpredictable
Long-term goals are either purposeful or Long-term goals emerge out of both spontaneously or
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5. Conclusion:
At the end of this essay, I would like to concentrate again on the start statement, “Systems
If we don’t understand the Organization as an interaction of parts and use the Strategic
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References:
Conway, M. (2009) ‘Strategic Thinking: what it is and how to do it’, E- article available on
https://www.researchgate.net/publication/253238955
Metropolitan University.
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Hashim, M. (2016) ‘Approaches to Formulating Business Strategy: A Review’, Arabian
Jackson, M. C. (2003) Systems Thinking, John Wiley & Sons Ltd, UK.
Jeanne M. Liedtka (1998) ‘Strategic Thinking: Can it be Taught?’, Long Range Planning,
31(1), pp 120-129.
Massachusetts.
Approaches on strategy’.
Mele, C. Pels, J. and Polese, F. (2009) ‘A Brief Review of Systems Theories and Their
Review, PP 21-31.
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Mingers, J. White, L. (2010) ‘A review of the recent contribution of systems thinking to
https://bookboon.com/en/strategicmanagement-ebook .
Salazar, R. J. Moe, J. Wang, J. (2009) ‘System Thinking and Complex Adaptive System
https://www.researchgate.net/publication/292982338
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Ulwick, A. W. (1999) Business Strategy Formulation Theory, Process, and the Intellectual
Vemuri, P. Bellinger, G. (2017) ‘Examining the Use of Systemic Approach for Adoption of
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