RALPH D STACEY 6th Edition ‘Stacey’s defining strength is his critical approach, which challenges students to make sense of contested knowledge His passionate interest in the subject is reflected in the dynamic and exciting development of the text and communicated through a remarkably clear writing style.’ Steve Hills, Sheffield Hallam University ‘Strategic Management and Organisational Dynamics is a landmark academic text As well as continuing to offer a well-argued critique of conventional management wisdom, it provides a unique and authoritative treatise on what is a truly distinctive application of the complexity sciences to organizational leadership and change.’ Chris Rodgers, organizational consultant and author of Informal Coalitions New to this edition: • A new introduction outlining the book’s unique approach and remit • A new chapter on dominant discourse and what evidence there is for its prescriptions • A new chapter which blends second order systems thinking and communities of practice with new material on social constructionist approaches and labour process theory • A focus on what strategic management might mean from the perspective of complex responsive processes Ralph D Stacey is Professor of Management at the Business School, University of Hertfordshire He is a supervisor on the innovative Doctor of Management programme at the University of Hertfordshire and author of a number of books and papers on complexity and organisation Adrian Stacey Coral Picture © Ocean Picture iStockphoto © CVR_STAC5596_06_SE_CVR.indd RALPH D STACEY Strategic Management and Organisational Dynamics remains unique amongst strategic management textbooks by taking a refreshingly alternative look at the subject Stacey challenges the conceptual orthodoxy of planned strategy, focusing instead on the influence of more complex and unstable forces in the development of strategy Ideal for advanced undergraduate and postgraduate study, this critically detailed account deals with current issues, raising the challenge of complexity within practice and theory STRATEGIC MANAGEMENT and ORGANISATIONAL DYNAMICS The Challenge of Complexity The Challenge of Complexity STRATEGIC MANAGEMENT and ORGANISATIONAL DYNAMICS 6th Edition www.pearson-books.com 28/9/10 13:41:59 A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page i Strategic management and organisational dynamics A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page ii We work with leading authors to develop the strongest educational materials in business and management bringing cutting-edge thinking and best learning practice to a global market Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high-quality print and electronic publications which help readers to understand and apply their content, whether studying or at work To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page iii Strategic management and organisational dynamics The challenge of complexity to ways of thinking about organisations Sixth Edition Ralph D Stacey A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published under the Pitman Publishing imprint 1993 Second edition published 1996 Third edition published 2000 Fourth edition published 2003 Fifth edition published 2007 Sixth edition published 2011 © Ralph D Stacey 1993, 1996, 2000, 2003, 2007, 2011 The right of Ralph D Stacey to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used therein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners Pearson Education is not responsible for the content of third party internet sites ISBN 978-0-273-72559-6 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Stacey, Ralph D Strategic management and organisational dynamics : the challenge of complexity to ways of thinking about organisations / Ralph D Stacey – 6th ed p cm ISBN 978-0-273-72559-6 (pbk.) Strategic planning Organizational behavior I Title HD30.28.S663 2011 658.4′012–dc22 2010029934 10 15 14 13 12 11 Typeset in 10/12.5pt Sabon by 35 Printed by Ashford Colour Press Ltd., Gosport A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page v To the memory of my mother Auriel A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page vi A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page vii Brief contents List of boxes List of tables Preface Strategic management in perspective: a step in the professionalisation of management Thinking about strategy and organisational change: the implicit assumptions distinguishing one theory from another xv xvi xvii 26 Part Systemic ways of thinking about strategy and organisational dynamics The origins of systems thinking in the Age of Reason 46 Thinking in terms of strategic choice: cybernetic systems, cognitivist and humanistic psychology 64 Thinking in terms of organisational learning and knowledge creation: systems dynamics, cognitivist, humanistic and constructivist psychology 98 Thinking in terms of organisational psychodynamics: open systems and psychoanalytic perspectives 126 Thinking about strategy process from a systemic perspective: using a process to control a process 148 A review of systemic ways of thinking about strategy and organisational dynamics: key challenges for alternative ways of thinking 172 Extending and challenging the dominant discourse on organisations: thinking about participation and practice 198 A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page viii viii Brief contents Part The challenge of complexity to ways of thinking 10 The complexity sciences: the sciences of uncertainty 234 11 Systemic applications of complexity sciences to organisations: restating the dominant discourse 262 Part Complex responsive processes as a way of thinking about strategy and organisational dynamics 12 Responsive processes thinking: the interplay of intentions 296 13 The emergence of organisational strategy in local communicative interaction: complex responsive processes of conversation 328 The link between the local communicative interaction of strategising and the population-wide patterns of strategy 350 The emergence of organisational strategy in local communicative interaction: complex responsive processes of ideology and power relating 374 Different modes of articulating patterns of interaction emerging across organisations: strategy narratives and models 398 Complex responsive processes of strategising: acting locally on the basis of global goals, visions, expectations and intentions for the ‘whole’ organisation over the ‘long-term future’ 434 Complex responsive processes: implications for thinking about organisational dynamics and strategy 464 References 496 Index 521 14 15 16 17 18 A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page ix Contents List of boxes List of tables Preface Strategic management in perspective: a step in the professionalisation of management xv xvi xvii 1.1 Introduction 1.2 The origins of modern concepts of strategic management: the new role of leader 1.3 Ways of thinking: stable global structures and fluid local interactions 1.4 Outline of the book Further reading Questions to aid further reflection 15 20 25 25 Thinking about strategy and organisational change: the implicit assumptions distinguishing one theory from another 26 2.1 2.2 2.3 2.4 Introduction The phenomena of interest: dynamic human organisations Making sense of the phenomena: realism, relativism and idealism Four questions to ask in comparing theories of organisational strategy and change Further reading Questions to aid further reflection 26 27 31 36 38 38 Part Systemic ways of thinking about strategy and organisational dynamics The origins of systems thinking in the Age of Reason 46 3.1 Introduction 3.2 The Scientific Revolution and rational objectivity 3.3 The eighteenth-century German philosopher Immanuel Kant: natural systems and autonomous individuals 47 48 50 Z02_STAC5596_06_SE_IDX.QXD 528 9/6/10 1:11 PM Page 528 Index joint enterprise in communities of practice 217 joint stock companies Kandola, R.S 194 Kant, E 32, 89, 103, 201, 205, 206, 235, 252, 297–9 autonomous individual 53–4, 57 on ethics 385 formative causality 52 key concepts 54 noumenal 50 phenomenal 50 self-organising systems 50–3 Karreman, D 175 Katz, A.M 342 Kauffman, S.A 52, 244, 246, 248, 253, 257–8 Kazanian, R.K 78 Kelsey, D 240 Kennedy, A.A 390 Kerry, John 307 Kets de Vries, M.F 139–40 Khurana, R 7, King, D.R 183 Klein, M 131, 132, 143 Kleiner, A 116 Knights, D 213, 223 knowledge creation 273, 454–5 knowledge management 116–18, 454–5 Kono, T 11 Korte, R.F 215 Kudla, R.J 176 K.Weick, 105, 106–7, 119, 157, 186 labour process theory 187, 223–4 LaForge, R.L 176 Landuyt, B.F 13 Langley, A 163 Langton, C.G 244, 255, 258 language 333–4 Lannemann, J.W 215 Larsen, H 363 last day of drinking on the tube 308–9 Lave, J 120, 217 Lawler, E.J 115 Lawrence, B 165, 169 Lawrence, P.R 129 leaders/leadership 13 in complex systems 281–2 and conversation 346–7 in dominant coalitions 367–8 ethics and 384–7 neurotic forms 139–41 in open systems 138–9 role of 369–71 roles of 491–4 in strategic choice theory 84–5 Learned, E.P 13 learning organisations 59 blockages in dialogue 111–12 causality 113–14 constructivist psychology in 105–6 defined 119 dialogue in 111–12 enactment in 106–7 evidence on 178–9 humanistic psychology in 110–14 knowledge management in 116–18, 454–5 and organisational learning 119–20 personal mastery in 103–5 as second-order abstraction 453–5 single- and double-loop learning 107–10 system dynamics 100–3 feedback processes 102–3 nonllinearity 100–1 principles 101–2 production and distribution chains 101 team learning 110–14 shared models in 110–12 and vested interests 114–16 learning process 80–1 learning school 43, 44 legitimate themes 403–9 Leibnitz, G.W 48, 49 Leonard, D 116 Levy, D 263–4 Lewes, G 253 Lewin, R 276–7, 280 libido 131 Lichtenstein, B.B 281 life cycle theory of time 159–60 Likert, R 58 Lincoln, Y.S 175 Lindblom, L 152, 153, 484 linear programming linear relationships and causality 34–5 living systems 283–4 local interactions 217 between agents 352 central role of 466 conversation as 366 links to population-wide social patterns 353, 361–9 imaginative constructs 362–3 spontaneity 363 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 529 Index 529 local interactions (continued ) in markets 452 strategic planning in 440 strategising in 436 and technology 449, 451 Locke, J 49 logical analysis 207 logical incrementalism 154–5 in strategic choice theory 89 London Business School 11 long-term predictions 274 long-term strategic plans complex responsive processes theory on 440–1 evaluating 74–7 acceptability 74–5 criteria for 73 feasibility 75 suitability or fit 75–7 formulating 72–3 implementing 74–7 impossibility of 264 plans and planning 72 prediction 73 Lorsch, J.W 129 low-dimensional chaos 238 McCain, John 307, 308 McCleod, J 417 McCulloch, W.S 55, 80 MacIntosh, R 280 McKenna, C.D 10 Mackey, A 177 McKinsey Consultancy 13, 14 MacLean, D 280 McMillan, E 279 McNamee, S 214, 215 macro view of strategy processes 166–8 Mael, F 215 Maitlis, S 165, 169 management education for 8–12 evidence-based 179–80 as particularising 365 as science 7, 56 management science 10, 56–8 evidence for 174–84 statistical analysis in 175–6 managerial cognition, as process 157, 159 managerial interpretation, as process 157 managers anxiety, quality of 479 as community of practice 7–8 control by 483–5 frames of reference of 157–9 improvement by 485–6 participation by 476–8 reflection, need for 475–6 in role of scientist 57, 59 roles of 491–4 training 9–10 unpredictability and paradox 480–3 March, J.G 151, 156, 484 Marion, R 264–8, 285 markets negative feedback in 67 and resource-based view of strategy 86–7 in strategic choice theory 451–3 Marquis, J.P 192 Maslow, A 81, 83 masochistic leaders 141 Mastenbroek, W.F.G 191 mathematical chaos theory 237–40, 311 Maturana, H.R 32, 105, 221 Mayo, E 57 Mayr, E 254 MBAs, standardisation of 10 Mead, G.H 194, 298, 310, 318, 320, 425, 449 on communicative interaction 330, 331–3, 335–7 and population-wide strategies 353, 354, 357, 358, 360–1, 364–6 on cult values 376–7, 378 on ethics 386 on labour process theory 223–4 meaning in communities of practice 217 Meek, J 279, 281 Melin, L 165, 169 mental models 453 Menzies Lyth, I 137 mergers and acquisitions 182–3 Mezrich, B 304 micro view of strategy processes 168–70 microcomputers, growth and development 264–5 Microsoft 265, 266 MICS 264 Midgley, G 203, 208 Miller, C.C 177 Miller, D 43, 157 Miller, E.J 58, 135, 136 Miller, G 182 Miller E.J 135, 136 Mingers, J 208 Mintzberg, H 43, 44, 88, 99, 149, 157–8, 167, 177, 184–6, 413, 484 Mitleton-Kelly, E 279 Z02_STAC5596_06_SE_IDX.QXD 530 9/6/10 1:11 PM Page 530 Index modelling 426–9 quantitative 430–1 as second-order abstracting 423 Moore, D.G 13 moral practice 204 morbido 131 Morgan, C.L 254 Morgan, G 272–3 morphological field 258 motivation in organisations 82–3 motivational factors in scientific management 57 Motorola 265 muddling through 152–3 multiple realities in critical systems thinking 209 mutual engagement 217 narcissistic leaders 141 narrative, features of 416–17 narrative patterning of conversation 403–11 of experience 411–15 role of storytelling 415–17 negative feedback in chaos theory 238 in open systems theory 128–9 in strategic choice theory 66–8 equilibrium 66–7 and human action 67–8 stability and instability 67 negotiation conflict 191 negotiation of conflict 357–8 Nelson, R.R 43, 163 network analysis neurotic forms of leadership 139–41 Newbert, S.L 178 Newman, W.H 13 Newton, T 48, 389–90 NHS and ideology 382–4 public and hidden transcripts in 408 responsive processes on 358–9 second-order abstracting 419–22 Nicolis, G 240, 242 Nonaka, I 116, 117, 118, 120, 273 nonlinearity and false information 269 in learning organisations 100–1 in organisations 35 norms 379 and values 381–2 noumenal reality (Kant) 50 novelty 52–3, 187, 245–267 Obama, Barack 307–8 Olsen, J.P 484 oneness in groups 134 Ong, W.J 450 open systems theory 127–30 boundary in 127, 135–6 conflicting subsystems 129–30 experience in 145 human beings, nature of 142–4 infantile mechanisms 131–3 groups and 133–5 interaction, nature of 141–2 leadership in 138–9 neurotic forms 139–41 methodology in 144 negative feedback in 128–9 paradox 144 psychosocial subsystems 128 technical subsystems 128–9 unconscious processes 130–1, 135–8 O’Regan, N 177 organisational learning 119–20 defined 119 methodology and 122 vested interests on 114–16 organisational psychodynamics main points 130, 135 and responsive processes theory 469–70, 471–2 organisational science evidence for 174–84 statistical analysis in 175–6 organisational strategies 436–7 organisational structure, long-term 77 organisations as complex systems 271–84 conscious and unconscious 409–10 conversation in 337–44 intention 341 rhetoric 341–3 strategy and change 343–4 thematic patterning 339–41 turn-taking/turn-making 337–9 defence routines in 109 formal and informal 409 as goal-seeking systems 68 management of as patterns of interaction 357 relationship to individual 83 as social objects 364–6 as systems 35, 53 organised anarchy 115–16, 152–3 organising themes in conversation 340 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 531 Index 531 pairing in groups 134 panic 394 paradox in complex systems 286 and human psychology 474–5 and learning organisations 122–3 managers and 480–3 nature of 35–6 in open systems theory 144 in strategic choice theory 93 in strategy processes 413–15 paradoxical phenonema 29 paranoid leaders 140 participation 205 in communities of practice 218 in conversation 338–9, 347 by managers 476–8 particularising in human communication 354–61, 362 Pascale, R.T 12, 83, 277–8, 280 passive-aggressive leaders 140 Pearce, J.A 177 Pedersen, J.S 212 Pei-Chun Lai 181 performance appraisal as cybernetic system 58 period two attractor 237 Perrow, C 158 personal mastery 103–5, 453 persuasion, rhetoric as 342 Peters, E.E 240 Peters, T.J 12, 14, 43, 72, 81–2, 178–9 Pettigrew, A.M 43 Pfeffer, J 79, 158, 179 Phelan, S 204 phenomena in strategic choice theory 89–90 phenomenal reality (Kant) 50 Philips, A.W 55, 100 Pitts, W 55, 80 planning school of strategy 43, 44, 184–5 pluralism in critical systems thinking 211 point attractors 237 Polanyi, M M 116, 118, 119, 254 polarised conflict 358 policy, origins political behaviour and long-term plans 79 population-wide social patterns links to local interactions 353, 361–9 imaginative constructs 362–3 spontaneity 363 strategic planning in 440 populations of organisations 28 dynamic phenonema 28–9 degrees of detail 29–30 interactions 30–1 paradoxical phenonema 29 Porter, M 43, 72, 73, 76 positioning school of strategy 43, 44, 184, 185 positive feedback 238 potential transformation in conversation 344–5 Powell, W.W 157, 213 power authoritarian use of 114–15 collegial use of 115 and conversation 345 and decision making 394–6 and ideology 387–9 in relational co-constructionism 215, 216–17 power/dependency conflict 191 power differentials 387–8, 391–2 power law 267, 275 power school 43, 44 power vacuums 115–16 Prahalad, C.K 86–7 prediction 425–6 preoccupation in the game 412–13 prescriptive schools 43, 44 design school 43, 44 planning school 43, 44 positioning school 43, 44 presencing in dialogue 112 pressure groups and long-term strategic plans 74–5 pressure points in complex systems 102 Prigogine, I 253, 255, 258, 268, 320 on dissipative structures 240, 242–3 process approach 44 process vs content in strategic choice theory 88 processes of self 335–7 product life cycle in long-term plans 76 product portfolio in long-term plans 77 production chains in learning organisation 101 Prosch, H 118, 119 Prusak, L 116 psychosocial subsystems 128 public organisations, TQM in 181 public transcripts 407–9 purposive development 52 quality management as cybernetic system 58 quantitative modelling 430–1 Z02_STAC5596_06_SE_IDX.QXD 532 9/6/10 1:11 PM Page 532 Index queuing theory Quinn, J.B 116, 154–5, 158 Quinn, J.J 177 Rajagopalan, N 161 Rapoport, A 191 rational causality 301 rational objectivity 48–50 rational processes bounded rationality 149–52 error, search for 153–4 trial-and-error action 152–5 rationalist causality 57, 267 rationality, defined 150 Ray,T.S 249, 251, 369 realism 31 realist knowledge 50 contradiction with relative knowledge 50–1 realistic conflict 191 reality nature of 49 noumenal and phenomenal 50 as sensation 50 reason 49 Reason, P 33, 175, 473 reasoning as first-order abstracting 422 reductionism 235 reflection 402 reflexivity 33 Regine, B 276–7, 280 Regner, P 164–5 Regner, R.K 43 regulative ideas 50 regulators in cybernetic systems 68–70 complexity of 69 reification in communities of practice 218 Reilly, E.W 13 relational co-construction 213–15 relational-responsive form of understanding 342 relative knowledge 50 contradiction with realist knowledge 50–1 relativism 32 repetition in conversation 344 representation vs enactment 118–19 requisite variety, law of 70, 72, 88 research 486–91 evidence base for 486–7 methods 487–90 status of knowledge 490–1 resource-based view of strategic choice 86–7 evidence on 178 resources in strategic choice theory 443–51 financial resources 443–7 human resources 447–8 technology 448–51 responsive processes theory 299–310 analogies in 316–18 and chaos theory 311–12 and complex adaptive systems 312–18 conversation in 330 on decision making 394–6 Elias on 300–10 entities in 321–2 Hegel on 299–300 iteration in 320 and modelling 426–9 NHS example 358–9 norms, values and ideology 381–2 and organisational dynamics 469 and organisations 401 and quantitative modelling 431 and reasoning 422, 423–4 research on 486–91 on strategic management 436 strategy in 352 and systemic processes 320–3 and technical rationality 423 and time 318–20 on ‘whole’ organisation 437–8 reward systems as cybernetic system 58 Reynolds, C.W 248, 312 rhetoric 341–3 ploys 342 Rice, A.K 58, 135, 136 Richard, O 192 Robertson, D.A 279 Robinson, G 192 role conflict 191 Romanelli, E 157 Roth, G 116 Rousseau, D.M 179 Rue, L.W 11 rules in complex adaptive systems 257 Rumelt, R 163 Sacks, H 337, 338–9 Salvato, C 163–4, 169 Samra-Fredericks, D 166, 169, 342 Sanders, T.I 273–4, 280 Sarbin, T.R 417 scepticism 32, 49 Schein, E.H 83 Schein, V.E 115 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 533 Index 533 Schendel, D 73, 76, 161–2 Schermerhorn, R 191 Scholes, P 203, 207 Schön, D 107–8, 116, 119 Schreiber, C 283 scientific management 56–8 Scientific Revolution 48–50 Scotson, J 390, 392 Scott, J.C 222, 408, 414, 417, 419, 421 Scott, W 213 second-order abstraction 418–22 and human psychology 472–3 methodology of 473–4 and the modern state 419–22 in strategic choice theory 437–53 markets 451–3 resources 443–51 role of strategic planning 440–3 on strategic management 436 second-order desires 378 second-order systems thinking 201–12 Churchman on 204–5 and critical systems thinking 208–12 defined 201 interactive planning 203–4 learning levels 202 and soft systems methodology 205–8 second-ordering principle 257 Seddon, J 190 self-organisation 223 and causality 252 in complex adaptive systems 244–5 in complex systems 273, 276, 279, 280–1, 366 in dissipative structures 241 and social order 302 self-organising systems 50–3 self-regulation in systems 55 Selznick, P 13, 43 sender-receiver model of communication 80–1 and conversation of gestures 334–5 Senge, P.M 99, 102, 111, 112, 116, 120, 188, 440, 453 Severin, Eduardo 304–8 Sewell, G 223 shadow themes 403–9 shame 393–4 Shane, S 177 Shannon, C 55, 81 Shapiro, E.R 137 shared repertoire in communities of practice 217 shared vision 453 Shaw, P 343, 427–8 Shegloff, E.A 337 Short, J.C 177 Shotter, J 107, 166, 214, 215, 341–2, 411 Simon, H.A 80, 100, 151 simple rules of interaction 264, 274, 283–4 Singhal, V 181 single-loop learning 107–8 Siz Sigma 181 Skoldberg, K 175 Smith, Adam 221 Smith, D 393 smoking, and attitude of generalised other 355–6 social act, communication as 331–7 social conflict 191 social constructionism 32, 33 social constructionist approaches 212–17 institutional theory 212–13 organisational fields 213 relational co-construction 213–15 social identity theory 215–17 social control 360–1 social identity theory 215–17 social objects 358–60 as cult value 359 key points 361 markets as 452 narrative form of 411 organisations as 364–6 reading and writing as 450 technology as 449 as tendency to act 360, 365 social participation 217 social practice 217 social structure in conversation 344–345 society as system 53 soft systems 59 soft systems methodology (SSM) 205–8 interventions 207 phases 206 strands 206–7 Soltani, E 181 Sommer, S.C 281 spontaneity 363 Springett, N 342 Srivastva, S 214 stability in scientific management 58 stable instability 236, 238, 243 Stacey, R 52, 53, 254, 277, 300, 449 stakeholders 74–5 Stapley, L.F 345, 473 Steier, F 33, 473 Stengers, I 240, 242 Z02_STAC5596_06_SE_IDX.QXD 534 9/6/10 1:11 PM Page 534 Index Stewart, I 237 storytelling 415–17 strange attractors 238, 311 strategic choice theory cognitive psychology 80–1 cybernetic systems 66–72 evidence base for 176–8 experience 94 and human nature 91–2, 469 humanistic psychology 81–4 and imaginative constructs 438–9 interactions 90–1 interactive planning in 203–4 leadership 84–5 and limitations of choice 87–8 long-term strategy see long-term strategic plans and measurement 439 methodology of 93, 473 and paradox 93 phenomena 89–90 process vs content 88 resource-based view 86–7 as second-order abstraction 437–53 markets 451–3 resources 443–51 role of strategic planning 440–3 uncertainty 87–8 on ‘whole’ organisation 438 strategic decision making 152–3, 154–5 investment decisions 424–6 strategic logic to long-term plans 75–6 strategic management 12, 453 strategic planning, role of 440–3 strategising 436 strategy conversation as 330 and change 343–4 as generalised articulations of activity 352 as identity narrative 459–61 origins as patterns of joint activity 436–7 as ‘whole’ 401–2 without design 220–3 strategy processes activity-based view of 162–6 cognitive frames of reference in 157–9 contingency view of 156 as deliberately emergent 158 growth phases 160 interpretive view of 157 paradoxical nature of 413–15 rational processes in 149–55 review of 161–2 systemic thinking about 166–70 macro view 166–8 micro view 168–70 and time 159–61 Strauss, S 116 Streatfield, P 484–5 Strong, M 458 Stube, M 413 substantive conflict 191 subsystems in open systems theory conflicting 129–30 infantile mechanisms 131–3 psychosocial 128 technical 128–9 suitability of long-term strategic plans 75–7 Summers, Larry 306 Sun Tzu Surie, G 282 surveys 176 Sutton, R 179 Sveiby, K.E 116 Sword, L.D 281 SWOT analysis 76 system dynamics in learning organisation 100–3 feedback processes 102–3 nonllinearity 100–1 principles 101–2 production and distribution chains 101 System of System Methodologies (SOSM) 210 systemic intervention in critical systems thinking 208–9 systems 187–91 different meanings of 187–90 and human nature 316–17 as management tool 190–1 as ‘wholes’ 401 systems analysis systems dynamics 55, 56 systems theory systems thinking 58–9, 453 dualistic (Kant) 54 and human systems 54–6 in organisations 56–8 second-order 201–12 systemtic approach 44 systemtic processes entities in 321–2 and responsive processes 320–3 tacit knowledge 116–18, 454 Tajfel, H 215 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 535 Index 535 Takeuchi, H 116, 118, 120, 273 task systems 136–7 Tawady, K 83 Taylor, C 417, 459 Taylor, F 56, 57 Taylor, J 386 Taylor, S.E 215 Taylor, W.A 181 team learning 110–14, 453 shared models in 110–12 teamwork in scientific management 57 technical rationality 154, 157, 423 technical subsystems 128–9 technology in strategic choice theory 448–51 teleological causality 53 tendency to act, attitude as 355 Terry, D.J 215 thematic patterning of conversation 339–41, 467 themes dynamics of 410–11 emergence of in conversations 403–11 legitimate and shadow 403–9 deviance example 406–7 equal opportunities example 403–6 innovation example 407 public and hidden transcripts 407–9 Thietart, R.A 220–1, 271–2 Thomas, D.A 193 Thomas, H 43 Thompson, J.D 156 Tichy, G 183 Tilles, S 13 time and responsive processes thinking 318–20 in strategy processes 159–61 Tolbert, P.S 157 Total Quality Management (TQM) 181 Total Systems Intervention (TSI) 210 Townley, B 223 transformation in conversation 344–5 in learning 113 transformative causality 252–3, 467–8 modelling in 431 and responsive processes 300, 301, 317 trial-and-error action 151, 152–5 innovation processes 155 logical incrementalism 154–5 Trist, E.L 128–9, 135 Truss, C 182 Tsoukas, H 118, 415 Tuden, A 156 turn-taking/turn-making in conversation 337–9 Turner, J.C 215 Turquet, P 134 Tushman, M.L 157 Tustin, A 55, 100 Twomey, D.F 279 uncertainty in nature 236 in strategic choice theory 87–8 in strategic decision making 153 unconscious organisations 409–10 unconscious processes 130–1, 135–8 in organisational psychodynamics 135 unpredictability 220–3 managers and 480–3 unstable stability 236 value chain analysis 76 value work 190 values 379–81 and norms 381–2 Van de Ven, A.H 155, 163, 175 van Iverson, A 390 van Knippenberg, A 215 Varela, F.J 32, 105, 221 Veblen, T 254 Venkatraman, N 157 vested interests on organisational learning 114–16 authoritarian use of power 114–15 collegial use of power 115 power vacuums 115–16 Vroom, V.H 84 Vygotsky, L.S 165, 214 Walker, R.M 181 Waterman, R.H 12, 14, 43, 72, 81–2, 178–9 Waters, J.A 43, 99, 149, 484 Weaver, W 55, 81 Webster, G 51 Wenger, E 7, 120, 217, 218–19 Wensing, M 180 Wernerfelt, B 86 Westphal, J.D 177 Wheatley, M.J 275–6, 280 Wheeler, W 254 White, K.M 215 White, W.J 215 Whitehead, A.N 254, 320 Whittington, R 44, 162–3, 165, 168, 169 ‘wholes’ as systems 401, 470 Z02_STAC5596_06_SE_IDX.QXD 536 9/6/10 1:11 PM Page 536 Index Wiener, N 55, 66 Wilkinson, B 223 Williamson, O.E 212 Willmott, H 213, 223 Wiltbank, R 220 Winklevoss, T & C 305, 306 Winnicott, D.W 143 Winter, S.G 43, 163 Wolfram, S 16 Wood, D.R 176 Wooldridge, B 161 Wright, G.H 181 Yetton, P.W 84 Zucker, L 213 Zucker, L.G 157 Zuckerberg, Mark 304–8 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 537 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 538 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 539 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 540 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 541 Z02_STAC5596_06_SE_IDX.QXD 9/6/10 1:11 PM Page 542 ... from the British Library Library of Congress Cataloging-in-Publication Data Stacey, Ralph D Strategic management and organisational dynamics : the challenge of complexity to ways of thinking about. .. Systemic ways of thinking about strategy and organisational dynamics The origins of systems thinking in the Age of Reason 46 Thinking in terms of strategic choice: cybernetic systems, cognitivist and. .. Part The challenge of complexity to ways of thinking 10 The complexity sciences: the sciences of uncertainty 234 11 Systemic applications of complexity sciences to organisations: restating the