Strategic Leadership and Strategic Management

iUniverse, Inc.

Contents

Introduction...........................................................................................................xiiiChapter 1— Overview of Theory, Models, Metaphors and Paradigms....................................................1Chapter 2— A Systems Thinking Approach to Understanding Organizations.............................................13Chapter 3— The Basics of Strategy: What Does It Mean and Where Does It Come From?.................................27Chapter 4— The Relationship between Organizational Environment and Strategy.......................................41Chapter 5— Understanding Strategic Leadership and Strategic Management............................................51Chapter 6— Organizational Change Models...........................................................................59Chapter 7— Strategic Leadership and Strategic Management: Thinking and Planning Strategically.....................69Chapter 8— Leading Employees through the Psychological Challenges of Change.......................................91Chapter 9— Leading and Managing Change on the Edge of Chaos.......................................................103Chapter 10— A Complexity Approach to Decision Making and Problem Solving..........................................125Chapter 11— How to Avoid Strategic Leadership and Strategic Management Failure....................................157Conclusion.............................................................................................................181End Notes..............................................................................................................187Bibliography...........................................................................................................233

Chapter One

The leadership and management literature today is filled with a bewildering assortment of theories, models, metaphors and paradigms that attempt to simplify and explain leadership and management in an increasingly complex organizational environment. Such conceptual tools are fundamental to human thinking and abound in all human cognitive processes. Their use is critical to scientific research and investigation, and they are ubiquitous throughout the social sciences, particularly leadership and management studies. Through these tools, we can communicate more effectively with each other and share human knowledge.

Theories, models, metaphors, and paradigms are all interrelated—different in their substance but complementary in their usage and purpose. Theories formulate explanations about observed phenomena and help us make predictions about future possibilities. Theory is frequently contrasted with practice as its opposite because theory involves no doing apart from itself. Metaphors are implicit comparisons and help us to extend our understanding of the world around us as well and to discover new knowledge. The widespread use of metaphors demonstrates a natural human proclivity for finding resemblances between new experiences and familiar facts. In a similar manner, models provide a structured way of visualizing and explaining how things work and discovering solutions to problems. Metaphors and models may be used to express theoretical formulations but, by themselves, are not considered theory. Paradigms represent specific world views that attempt to link together and explain global observed phenomena. Paradigms help us to understand the world around us but they may also limit our ability to recognize the true nature of that reality. In short, these conceptual tools share complementary roles in pursuing human learning and understanding. It is important to understand their uses and limitations as we begin our review of strategic leadership and strategic management.

Theory

Theory is an ambiguous term. It means different things to different people and there is little agreement even among social scientists about what theory is. With respect to leadership and management studies, theory can be perceived as a kind of conceptualization. Concepts such as leadership, management, organization, power, and bureaucracy, when defined and used in interpretations of empirical or observed phenomena, are frequently equated with theory in the literature. However, these terms are not generally theory but constitute ideas within theories. In a loose sense, any conceptualization or way of thinking about something can be considered theory.

Theories are analytical tools for understanding, explaining, and making predictions about observed phenomena. Theory refers to an explanation of reality based on observations and information available that typically has been tested for validity although not all theories are tested or even can be tested. Theories evolve and change as new information is found and integrated into the current body of knowledge. Theory distinguishes ideas from practice and it frequently implies an idea that isn't certain or a reality that requires explanation.

According to Parson and Shils, there are four distinct levels of theory beginning with its simplest form and moving to the most complex: ad hoc classificatory systems; taxonomies; conceptual frameworks; and theoretical systems.

Ad Hoc Classificatory Systems are the lowest form of theorizing. They consist of identifying arbitrary categories in order to distinguish, organize and summarize empirical observations. For example, the classification of voters based on their response to a simple survey questioning whether or not they support a particular political issue would be an ad hoc classificatory system.

Taxonomies consist of category systems constructed to fit empirical observations so that relationships among categories can be described. Thus, taxonomies are closely related to the empirical world—the categories reflect the reality observed. An example of a simple taxonomy is three types of organizations: corporate, public, and non-profit.

Conceptual Frameworks stand above taxonomies because their propositions summarize and provide explanations and predictions for empirical observations. Conceptual frameworks are a grouping of concepts that are broadly defined and systematically organized to provide a focus, a rationale, and a tool for the integration and interpretation of information. Much of what passes for theory in the social sciences actually consists of conceptual frameworks that direct systematic empirical research. For example, de Bono's Six Thinking Hats provides a conceptual framework for describing the different modes of conscious thought that the human brain might process such as information seeking, instinctive reaction, pessimistic judgment, harmony seeking, creativity, and process organizing.

Theoretical Systems combine taxonomies and conceptual frameworks by relating descriptions, explanations and predictions in a systematic manner. This is the most vigorous level of theory—a system of propositions that are interrelated in a way that permits some to be derived from others. Thus, a theoretical system is one that provides a structure for a more complete explanation of observed phenomena. Theories facilitate discussions about topics of...