Three competing paradigms in strategic management - The rationalist paradigm - The problem of business success
5 important questions on Three competing paradigms in strategic management - The rationalist paradigm - The problem of business success
What entails the "succes formula"?
Considerable initial success with a focusing strategy leads to strong reinforcement of the "success formula" through cognitive, cultural and structural mechanisms.
Why is change not welcome and is it difficult to argue with success?
Often assumptions get embedded in strong cultures, determining also informal and non-verbal ways in which people communicate with each other. The system reinforces the mental models, and these become more and more rooted. Other observations in the business environment are explained away or denied.
What do organisations have to do to survive?
In order to survive organisational systems need a degree of complexity, c0mmensurate with the complexity of the environment with which they interact (Ashny's law of requisite variety, 1983).
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What will happen when a system lacks variety?
A system that lacks requisite variety will not perceive signals that fall outside its narrow coherence model. Its vision is blinkered.
What can you do against blinkered visions?
In these circomstances it is advisable t heed Weick's (1979) advice to organisations to "complicate yourself". It is more than ever important that new perspectives are introduced from the outside.
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