10. Forelæsning – d.18. november 2013 Strategisk ledelse

Lectures, autumn 2013 WeekDateSubjectLiterature AugIntroduction to the courseN/A 362. SepIntroduction + Thinking about strategyStacey # SepThinking in terms of strategic choiceStacey # SepIntroducing mini projects and forming groupsN/A SepCybernetic systems, Cognitivist and humanistic psychologyStacey # SepCancelled 417. OctCognitivist and humanistic psychology + Complexity sciencesStacey #4.4 – Autumn vacation OctThe interplay of intentions + CRP of conversationStacey # OctInteraction of strategizing and patterns of strategyStacey # NovComplex responsive processes of ideology and power relatingStacey # NovModes of articulating patterns of interactionStacey # NovComplex Responsive Processes of strategizingStacey # NovComplex Responsive ProcessesStacey # DecWrap up – Mini projectsN/A DecHand in of mini projects no later than 14:00N/A

Acting jointly Fantasies Myths Rituals Ideologies Cultures Traditions Routines Habits Gossip Rumors Discourses Speech Genres Dialogues Discussions Debates Presentations

Legitimate and shadow LegitimateShadow -Organise what people feel free able to talk about open and freely. -Organise conversations that in which people give acceptable accounts of themselves and their actions, as well as the imputations about the actions of others -Kind of conversation you readily engage in with others, even if you do not know them well -Organise what people do not feel able to talk about openly and freely -Organise conversations that in which people give less acceptable accounts of themselves and their actions, as well as the imputations about the actions of others -Kind of conversation you would only engage in informally, in very small groups, with others, you know and trust If there is one thing that everyone knows about life in organisations or any other grouping of people for that matter, it is this: it is not possible to talk freely and openly to just anyone, in any situation, about anything one likes, in any way one chooses, and still survive as a member.

Formal and informal FormalInformal - is identified in terms of an organisations purpose, its mode of fulfilling its purpose – that is, its task – and the individuals who are assigned roles in carrying out the task - Defined in terms of the roles it promises to fulfil in its larger community and it is defined in terms of those formally authorised to be its members - Consists of all relationships not formally defined by peoples roles or clearly related to their tasks - All personal and social relationships fall in this category - These personal relationships extend into other organisations, making it difficult to define the membership

Legitimate- and shadow themes LegitimateShadow Conscious Unconscious InformalFormal Shadow connectionsLegitimate connections

Narrative patterning We can only interact with each other locally Such interactions always reflects population- wide generalisations (social object) and idealisations (cult values) – most of which we are not conscious of

Immersing is describing what we are doing as we act locally, preoccupied in the game, in ways which unconsciously reflect the generalisations and idealisations, the habitus of our society

Immersing Immersing refers to activities taking the form of – Ordinary everyday politics of life – Pattering of the power relations between people – Acts of politeness and face-saving – Practicing the arts of resistance – Denial, scapegoating and blaming as defences – Spontaneity and improvisation – Attachment to others – Creative imagination of alternative ways of living – Altruism and generosity as well as selfishness and meanness

Narrative patterning People are negotiating their next actions in ways that have emerged and continue to emerge and evolve as narrative and propositional themes of power, identity and ideology Thought, reflection and meaning-making are all activities of abstracting, the opposite of immersing Abstractions are articulations of both local and global patterns of interaction. They are attempts to describe social objects, cult values, habitus and the game

Narrative patterning Experience is an inseperable interplay between the activities of: – Immersing and abstracting – Participation and reflecting - which in each is simultaneous forming and being formed by the other Human thought has always been paradoxial acts of immersing and abstracting at the same time

Storytelling When we articulate our experience in propositional forms, we make causal and prescriptive statements about experience, such as: – If you shout then people will get angry – If you improve the quality of your product then... People cannot rely entirely on propositions in formals forms, they also need to draw on narrative knowledge embodied in the informal stories they tell each other Storytelling is a traditional activity in which storytellers tell their community preserving folklore Modernists sees such as fiction For postmodernists, stories, not facts makes experience meaningful

Narratives Narrative is more complex, taking the form of stories and evaluations of these stories which convey understandings of our experience; – A story is an account of a sequence of specific actions, feeling states and events – A narrative is a story line linked by reflections, comments upon, and categorisations of, elements of the story line Narratives create a sense of temporality in experience linking present experiences to past ones; – Focus upon departures from what is expected – What is taken for granted as ordinary and acceptable – Reinforce cultural norms – Disclose some aspects of individuals silent conversations

Reflecting on experience Generalising through identification of categories of experience, articulated in narratives is first-order abstracting from the experience of local interaction Mapping and modelling of relationships between the categories, we might call second-order abstracting Manipulates the categories of first-order abstractions and working on removing direct experience Second-order abstracting loses the sense of paradox with immersion and abstraction by simplifying standardising and measure Reducing elaboration, multiple interpretations and mystery

Reflecting on experience We are largely unconscious of how we are relying upon abstractions and find it difficult to notice just how readily we reify them and so cover our preoccupation in the game The activity of second-order abstracting involves: – Objectifying and categorising – Measuring – Averaging – Analysing – Selecting regularities and stabilities – Modelling – Prescribing rules – Setting targets

KAPITEL 17

In a nutshell According to Complex Responsive Processes, Strategic Management is the governance of organisations on the basis of global second-order abstractions as gestures made by leaders and managers which evoke many, many local responses constituting the ordinary politics of everyday life From this perspective, the word strategy refers to the sometimes articulated, generalised, thematic patterns of governance which people are taking up and making particular in their many, many local interactions across a whole population over long time periods

In a nutshell Changes in strategic generalisations emerge in the local particularising activities of people in a population, and leaders and managers becoming aware of this evolution, may articulate these changes in the further development of their abstract maps and models. When people belonging to a small group interacting with each other locally in ways that affect larger populations over long time periods we can classify this interaction as strategising

SCT as Second order abstraction SCT is not based on a notion of the ‘whole’ as a imaginative construct It is based on a notion of the ‘whole’ organisation as either a system ‘thing’ with a boundary that actually exists or as a powerful hypothesis according to which an organisation thought about ‘as if’ it were a system or thing with a boundary Whole organisations are thought of as agents independent of the people actually acting

SCT as Second order abstraction The move of thoughts, in terms of stereotypes such as industries and markets, does make it possible to talk in much simpler ways about the strategic actions which groups of people in each organisation are taking or might take in the future, and it makes it possible to measure generalised activities as well as carry out highly sophisticated forms of analysis These second-order abstractions do affect what people do, but the danger is that our attention is so exclusively focused on abstractions that we no longer even aware that they are abstractions and so we become blind to we as people are actually doing

SCT as Second order abstraction SCT is based on the idea, that leaders and managers can choose both articulation and imaginative constructs and also, to some extent, the outcomes produced by people acting upon these generalised themes, a possibility denied by the theory of CRP All prescribed steps in SCT are therefore abstract operations on abstract simplifications and standardised categories Looking at these activities from a CRP perspective, we could understand them all as formulations or articulations of generalised patterns of interaction emerging across a population

The role of strategic planning In literature and in the ways managers talk, strategic planning means deciding on some kind of population- wide outcome for some long-term period ahead. Once formulated, the plan is then implemented The assumption is, that it is possible to design population-wide patterns well before they are realised and this in turn implies that is possible to predict the outcomes of action taken now to a degree useful enough to enable a choice now between one action and another Local interaction is then understood as the process of implementing the plan or design

The role of strategic planning A CRP Perspective emphasises the unpredictability of long-term, population- wide patterns, holding that any design or plan for these patterns – that is, for the organisation as a ‘whole’ – can only achieve with regard to short-term, repetitive and thus reasonably predictable activity Strategic plans are second-order abstractions taking the form of maps and models

Possible roles of strategic plans etc Instead of being causes of what happens, plans and designs may well amount to fantasies whose main function is to serve as social defences against anxiety The process of formulating long-term strategic plans may themselves form a particular organisational game in which people are unreflectively preoccupied Strategic plan documents may also serve a purpose as rhetorical artefacts. They may be used in the ordinary daily politics of organisational life to persuade others to agree on certain actions

The role of strategic planning We must think much more carefully about what we think we are doing when we articulate long-term plans for whole populations and believe that we can thereby change those whole populations The CRP view turns the dominant discourse on its head. Instead of change occurring as the result of the plan, change programme or vision of leaders or dominant coalitions, change emerges in many local interactions in which leaders and the most powerful are very influential participants, but participants! The CRP theory does not lead to a prescription of abandoning strategic planning

The learning org as 2nd order abstct Just as with SCT, the theory of the organisational learning processes also cast in terms of the abstract notion of ‘the organisation’ Particular abstractions involved: – Systems thinking – Personal mastery – Mental models – Shared vision – Team learning The learning organisation is therefore as much as an abstraction of SCT

Knowledge and organisations The notion of intellectual capital is clearly an abstraction as are the models of knowledge underlying it and the proposals of ways to measure it The theory of CRP is based on the argument that meaning, and therefore knowledge, arises in the local, detailed, ordinary communicative interaction of people in organisations in the living present Knowledge cannot be grasped, owned by anyone or traded in any market, and its creation is a process of communicating and power relating that is both stimulating and anxiety provoking at the same time

Knowledge and organisations It may serve some purpose to talk in abstract terms about knowledge, but our attention really needs to be directed to the wider processes we actually experience if we are not to undertake knowledge Management actions which are almost entirely fictions The CRP perspective, on the other hand, holds that tacit and explicit knowing are facets of the same communicative process and, therefore, that it makes no sense to talk about them separately or to believe that one is converted into the other

Institutions and legitimate structures of authority The dominate discourse on organisations often proceeds in terms of the second-order abstractions of markets, cultures, social forces and social structures where these abstractions are generally reified so that we slip into the habit of regarding organisations, cultures, societies, forces and structures as things We may even anthropomorphise them and come to think of them as organisms with their own lives quite apart from out own The perspective of CRP avoids such anthropomorphising and reifying and does not regard routines and habits as causal powers with regard to our interactions

Institutions and legitimate structures of authority Social forces, social structures, routines and habits can all be understood as generalisations that are particularised over and over again in each specific situation we find ourselves in From a CRP perspective one understands institutionalised instruments, or technologies, of power to be just such generalised / idealised / habitual figurations of power relations They too are iterated and particularised in each present and is in such particularisations that they evolve They are not to be found as things or forces outside our experience of interaction but only in that

Institutions and legitimate structures of authority Local interactions form and are formed by population-wide patterns of power relations expressed in the identity creating dynamics of inclusion and exclusion which are always reflections of ideologies Ideology is constituted in the paradoxical interplay of people acting on desires, norms and values as restrictions, compulsions and voluntary commitments to choices of action It is these complex responsive processes of relating that constitute the game in which we are all daily immersed

Strategy as identity narrative Earlier we saw, that strategy having to do with how and what an organisation becomes whatever it becomes, which fundamentally is a matter of identity Identity answer the questions – Who are we – What are we doing together Strategy can be understood as the evolution of the iterated and potentially transformed patterns of identity emerging in local interaction All organisational activity can be understood as conversational interaction, and this includes the activities of strategising