Adaptive Systems In Strategic Management

ABSTRACT

The purpose of this theoretical paper is to discuss how adaptive systems exist within my company's approach to strategic management. I shall distinguish and explain the extent to which both Emergent and Deliberate strategies are utilized and encouraged in day to day affairs of the organization. I will further elaborate on both the advantages, similarities and the difference of both strategies. Modern ways of thinking of strategies/Complexity Theory and analysis of Complex Adaptive Systems involving complex adaptive systems as it relates to my organization will be explained from my experience.

Approaches to Strategic Thinking:

Strategies usually evolve from the results of decision making in various company activities either by top

Emergent forms of strategizing gives room for updating old strategies to adapt to changing environment or situations. Johnson, Langley, Melin & Whittington (2007) state that "Strategy as Practice analyzes what people do in relation to the development of strategy in organizations, providing insights into current issues in strategy that require a more micro level of understanding". In my company, most strategies which are practiced are deliberate strategies which were borne out of emergent strategies or Integrated. They are more or less formalized emergent ideas. It is important to involve all levels of people especially those tasked with the daily routines associated with the planned policies and not just top management. As we are a Global Retail Fuels organization, this is usually encouraged. Most proactive strategies/policies are usually formalized after consultations with the active players in lower levels. Plans initiated by different organizational sectors also become formalized and eventually turned into deliberate strategies. Both deliberate and Emergent strategy formation process have advantages and disadvantages, and the difference being, according to Mintzberg and Waters (1985) " the driving factors/systems, the focus and the

However, every formalized strategy or plan has a localized clause that allows individuals devise creative ideas to reach that collective goal. This is because we have recognized that if decision making and strategy formulation is left solely to organization , there might be a disconnect with reality or feasibility of such plans. Pickton and Wright, (1998) claims "Divergent Linear methods of strategizing uses tools such as SWOT to guide decision making and strategy formulations". In my company, the SWOT analysis is embedded in our 'TRADE AREA ANALYSIS FOR,' which determines viability of a potential Retail Outlet location. This does not take into cognizance, knowledge gained from experience and gut feelings. These tools on their own are important to provide an objective analysis to decision making. However, in view of the highly complex system of operation they may prove inadequate. They are thus usually utilized in most decision making processes in my company e.g. Risk Analysis but are not used exclusively and are the sole determining factor in decision making. Barney (1992) suggests that ``organizational behavior concepts and research should be at the core of strategy formulation research, as well as strategy implementation research'' (p. 41).