1 Strategic Management in Enacted World DR. M.HASSAN

2Introduction  Strategic management as a field of study has evolved as branch of management which started with policy as a focus; then turned to strategy formulation; and today is concerned with implementations.  An organization is an open system that exists within an independently given environment.

3Introduction  Organization members actively form (enact) their environment through their social interaction. A pattern of enactment establishes the foundation of organizational reality and future enactment.  Then the task of strategic management is to create maintain systems of shared meaning that facilitate organized action.

4 How organization members know their environment There are three models for knowing the environment : An objective Environment An objective Environment Perceived Environment Perceived Environment The Enacted Environment The Enacted Environment An objective Environment

5 How organization members know their environment  An objective Environment:  organization is embedded within an external environment which exists independently from the organization.  the organization and environment are real and separate. Therefore, strategists must conduct an environmental analysis by scanning the objective, existing environment for opportunities and threats.

6 How organization members know their environment  the organization and environment are real and separate. Therefore, strategists must conduct an environmental analysis by scanning the objective, existing environment for opportunities and threats.  There is Strategist search for opportunities or threats in the environment. and Strategists search for strengths and weaknesses inside an organization.  There is some disagreement about the nature of the relationship between organizations and their environment among the strategic management researches as the follows:

7 How organization members know their environment  Child, Simon and different authors generally suggest that external analysis is combined with the results of an internal environmental audit of the organization's strengths and weaknesses to form the base for strategic decisions.  The combination of these two analyses is generally referred to as SWOT analysis. Its results are used to define the mission, set objectives and design strategies, and is the core of the strategy formulation phase of the strategic management process. In this way, the organization would adjust/adapt to the environment by adopting appropriate courses of action. Most researchers agree that if this strategic fit is not accomplished, the organization will flounder.

8  The perceived environment  The difference between objective ‘ environment and perceived ‘ environments ’ is not attributable to a change in the conception of environment ( which remains real, material, and external). Bu the difference between them involves in a distinction about strategists.  perceived ‘ environments ’ perspective, also considers the environment to be external, real, and material. However, uncertainty is a product of strategists' imperfect and incomplete knowledge of the objective environment.

9  The enacted environment  The enacted environment perspective suggests separate objective environments do not exist. Rather, the organization and its environment are enacted (created) concurrently through interaction of principal participants.  organizations and environments are convenient labels for patterns of activity and what people refer to their environments is created by human actions and related efforts to make sense of these actions.

10  The enacted environment  organizations and environments are suitable labels for patterns of activity and what people refer to their environments is created by human actions and related efforts to make sense of these actions.  There are no threats or opportunities out there in an environment, just martial and symbolic record of action  Strategist-determined to find meaning- makes relationships by brining connections and patterns to the action

11  The enacted environment  Enactment theory abandons the idea of concrete, martial ‘ organization/environment ’ in favor a largely socially created symbolic world.  objective or perceived environments image concrete, martial ‘ organization ’ what are within, but separate from, real material ‘ environment. They see the relationship between the two are express in terms of cause and effect.  Enactment implies a combination of attention and action on the part of organizational members. Processes of action and attention differentiate the organization for not-the-organization (the environment). The action component often is poorly appreciated by theorists who discuss sensemaking processes.

12  Organization and environment from an interpretive perspective  This perspective defines organization as: “ the degree to which a set of people share many beliefs values, and assumptions that encourage them to make mutually-reinforcing interpretations of their own acts and the acts of others. ”  It defines environment as: "...a specific set of events and relationships noticed and made meaningful by a specific set of strategists...refers to the ecological context of thought and action, which is not independent of the observer-actor's theories, experiences, and tastes. Multiple groups of people enact the ecological context.... From the standpoint of strategic management, strategists' social knowledge constitutes their environment."

13  Implications of an interpretive perspective  The logic of this perspective on organization and environment leads to three major implications for strategic management 1- Abandoning the prescription that organizations should adapt to their environments. The admonition to adapt to trends and forces is not very helpful because it is not sufficient for dealing with issues in day-to-day management. The admonition to adapt to trends and forces is not very helpful because it is not sufficient for dealing with issues in day-to-day management.

14 2-Rethinking constraints, threats, opportunities Strategic manager must look first to themselves and their action and inactions, and not to the environment for explanations of their situations. So Weick sees if people want to change their environment, they need to change themselves and their actions- not someone else … problems that never solved, never solved because managers keep tinkering with everything but what they do. Strategic manager must look first to themselves and their action and inactions, and not to the environment for explanations of their situations. So Weick sees if people want to change their environment, they need to change themselves and their actions- not someone else … problems that never solved, never solved because managers keep tinkering with everything but what they do. Strategic managers can challenge the limits and test the possibilities for organizational existence by maintain a dual focus of attention-an ability to transcend the memontary situation in which they are entangled and to understand their actions within a system of meanings that is open to reflection and reassessment Strategic managers can challenge the limits and test the possibilities for organizational existence by maintain a dual focus of attention-an ability to transcend the memontary situation in which they are entangled and to understand their actions within a system of meanings that is open to reflection and reassessment

15 3- Thinking differently about the role of strategic managers While objective and perceived approaches assume the strategist as a decision-formulator, implementer of structure and a controller of events who drives ideas from information, the interpretive approach defines a strategist as a creative artist. While objective and perceived approaches assume the strategist as a decision-formulator, implementer of structure and a controller of events who drives ideas from information, the interpretive approach defines a strategist as a creative artist. In the interpretive world managers make sense of their environmental events through logic and emotion to make meanings that lead to super choices, and to differentiate between reasonable actions and nonsense. In the interpretive world managers make sense of their environmental events through logic and emotion to make meanings that lead to super choices, and to differentiate between reasonable actions and nonsense. Strategist then generate the context for meaning on the basis of values and their symbolic expression, as well as drama and language. They use language, metaphors and stories to convey their messages. Strategists, instead of confining themselves to technical Strategist then generate the context for meaning on the basis of values and their symbolic expression, as well as drama and language. They use language, metaphors and stories to convey their messages. Strategists, instead of confining themselves to technical

16  Managing in an enacted world  What guidelines can be derived from an interpretive perspective to aid those responsible for managing human affairs?  1- Managerial analysis : It means challenging the assumption on which managers act and improving managers ’ capacity for self-reflection- seeing themselves as enactors of their world. Consultants often are called to help organization member get a different perspective on what members are doing. Consultants state obvious, ask foolish questions, and doubt – all of which helps organization member get outside of themselves. Management groups can institutionalize the role of ‘ wise fool ’ in order to provoke the capacity for critical self-examination.

17  Managing in an enacted world  2-Creation of context :  The answer to such questions as ‘ who are we? ” what is important to us? ” what do we do? ” and what don ’ t we do? ” set the stage for strategy formulation.  These questions elicit the values framework within activity become meaningful. Peters 1982 suggest that excellent companies have top management groups who can articulate clear value positions.

18  Managing in an enacted world  3- Encouraging multiple realities :  an interpretive perspective urges the consideration of multiple interpretations. But in strategic management, multiple interoperations often are viewed as communications problems to be overcome by more information, rather than as a natural state of affairs.  Successful strategists have often contemplated the same facts that everyone know and they have invented startling insights

19  Managing in an enacted world  3-Encouraging multiple realities :  Interesting enactments blossom when strategists draw out novel interpretations from prosaic facts.  Quite often novel interpretations occur when companies enter an industry for which they have no specific experience, they try out novel strategies that run counter to conventional assumptions.

20  Managing in an enacted world  4- Testing and experimenting: :  Every industry is saddled with a long list of do ’ s and don ’ ts.  These stipulated limits should be tested periodically.  Enactment means action as well as thinking.  Assumptions about what is related to what, what works (or doesn ’ t), what we can do (or can ’ t), should be tested periodically by acting as if counter assumptions are viable.  Strategists should learn to act ambivalently about what they know, so that they do not become straitjacketed by what they know.

21  What are the managerial principles derived from interpretive worldview and ignored by strategic management approaches?  They are:  1- Managerial analysis.  2- Creation of context.  3- Encouraging multiple realities and  4- Testing and experimenting

22  Can any reality be enacted?  people can enact any symbolic reality that they choose. Individual people occupy personal, subjective space- space in which intentions, meaning, and sensibility often are quite idiosyncratic- what the world means to them  The special concern here is with enactments in which numerous people collectively participate, in which people experience limits to what they can enact.

23  Can any reality be enacted?  First organized people often struggle within the limits of their own prior enactment. Patterns of enactment based on prior personal, organizational, and cultural experiences powerfully shape ongoing organizational and cultural options.  Secondly, enactment mean thinking and acting, enactments test one ’ s physical, informational, imaginative, and emotional resources. Without sufficient resources, one simply can support many possible enactments.

24  Can any reality be enacted?  Finally, enactments may compete with each other. In an election, for example, the candidates struggle mightily بقوة to discredit an opposition candidacy. Organizational enactment can be distinguished from fond hopes and castles in the air. Explain? kk

25  Conclusion  Several writers in the field of organizational analysis and strategic management have raised questions about how strategists come to know their environments.  Yet the implications of one legitimate answer to these questions- enactment- have not been fully examined.  The implications of the enactment perspective for strategic manager given here are extensive and provocative:

26  Conclusion The darken of the ‘ organization/environment ’ dichotomy The darken of the ‘ organization/environment ’ dichotomy A different model of strategic analysis A different model of strategic analysis An entirely different role for the strategist from the role presently envisaged by most analysts An entirely different role for the strategist from the role presently envisaged by most analysts A different research focus A different research focus

27 Important words ) ArabicEnglisgh تفرع ثنائي dichotomy استفزازيprovocative بشكل ذو أثر رجعي retrospectively مستقبلياprospectively تحذير - نصح admonition يتفوق علي - يتجاوز transcend يؤكد - يبرز underscores Human self-reflection is the capacity of humans to exercise introspection and the willingness to learn more about our fundamental nature, purpose and essence. Self-reflection الاستنباط

28 Important words ) ArabicEnglish posture الأحمق الحكيم Wise fool يؤسس - يقيم institutionalize يعطي يوضح articulate ممل - نثري prosaic prosaic مروع - مذهل startling يفكر في contemplate يبرز الي الوجود - يزدهر blossom مرهقsaddled مشروط - محدد stipulated مقيد ب straitjacketed