BS 01 Strategic Thinking

8/13/2019 BS 01 Strategic Thinking

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STRATEGIC THINKING

Prof.Dr.Dr.Dr.H.C. Cons tant in B rat ianu

Facul ty of B usiness Adminis t rat ion

Academy of Econom ic Studies

Bu charest, Romania


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My bus iness is

th ink ing

T.A. Edison


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KNOWLEDGE PARADOX

We are living in a world which is infinitein time,space and complexity

We need to understand this world for survival, and

for a better life

However, our mind is finitefrom biological andpsychological point of views

How can we know and understand an infiniteworldwith a finitemind ?


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THINKING MODEL

We are using thinking modelswhich are cognitiveapproximations of complex real phenomena

Thinking models are developed throughout our

educationin family, school, church and society

The more powerful these thinking models are, thebetter cognitive approximationswe can get

The more powerful these thinking models are, thebetter decisionswe can make


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STRUCTURE

Basic structure

knowledge

rules

values


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KNOWLEDGE

Data, Information, Knowledge

- information = processed data

- knowledge = processed information

Tacit knowledge

- experience

- talent

- intuition

Explicit knowledge

- concepts

- ideas

- theories


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KNOWLEDGE

Knowledge Strudcture

Explicit Knowledge

Tacit Knowledge

Rational Mind

Non-RationalMind

Knowledge Transfer

Process

Direct

Experience


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Cogi to, ergo sum !

R. Descartes


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To release the spir i t on e must accentuate the wo rk w ith

meditat ions o f the heart and the soul.

(M. Musasch iThe Book o f f ive r ings )

Kamakura


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KNOWLEDGE

Knowledge Strudcture

Cognitive

Knowledge

Emotional

Knowledge

Rational Mind

Non-Rational

Mind

Knowledge Transfer

Process

Direct

Experience


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snow

(snow)-t

(snow)- e

snow = (snow)- t + (snow)- e


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snow

snow

t

e

e

t

Northern EuropeSouthern Europe


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nowledgeKnowledge structure

Cognitive knowledge

Emotional knowledge

Mind

Heart

Knowledge transfer

process

Sensory system


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EMOTIONAL KNOWLEDGE

Emotions are very powerful knowledge generators.

Think of the masterpieces of Michelangelo, Da Vinci,

Picasso, Mozart, Beethoven and others.

Think of the great artists playing in theatres andmovies.

Think of unexpected events able to generates

emotions.

Think of the great leaders able to motivate especiallythrough emotions many people.


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RULES

Behavior rules in childhood

Religious rules

Grammar rules

Mathematical rules

Logical rules


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INTELLIGENCES

Linguistic intelligence

Logical-Mathematical Intelligence

Musical intelligence

Spatial intelligence

Bodily-Kinesthetic intelligence Naturalist intelligence

Interpersonal intelligence

Intrapersonal intelligence


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VALUES

Values= Deeply held ideas of members about what isright or wrong, fair or unfair anything that has personalworth or meaning

We are living in a given culture, which is defined by a setof fundamental values

We learn these values through education in family,

school, church and society

Values constitute the reference systemof our decisions


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Coca-Cola Company

Values: Leadership: The courage to shape a better future.

Passion: Comm it ted in heart and m ind.

Integrity: Be real.

Accountability: If it is to be, its up to me.

Collaboration: Leverage co l lect ive genius.

Innovation: Seek, imagine, create, delight.

Quality: What we do, we do wel l.


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CULTURAL VALUES IN USA

Private property Competition and individualism

Performance

Time is the vital resource of anyenterprise

The American dream and the need of

self fulfilment


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COMMUNICATION

In US culture, communication is based on key

words and clear expression of ideas

Communication id based on economic principles

and less on literature principles and musical

melody

Precision is based more on the content of the

message than on its grammar rules

The language is direct and rational. There is no

room for emotions and fuzzy interpretations


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PATTERNS OF THINKING

It works !

Do it yourself !

Modular thinking, and less integral thinking

Trust nothing of what you listen to, and only half of

what you see.


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CULTURAL VALUES IN JAPAN

Japanese cultural values are quite opposite of theAmerican cultural values

There is a strong emphasis on team work,

cooperation, modesty and group referentialsystem

There is a strong respect of seniority, academicrank and hierarchy

There is a strong respect of traditions andunwritten behaviour rules


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COMMUNICATION

Communication is based on what it is NOT said Communication should be like a cover of the personal

feelings and beliefs

Messages should be fuzzy by their nature, giving full

liberty for interpretation Silence is more precious than the spoken words

Never put questions about personal feelings andthoughts, and never request a clear answer

Sharing experience is more important than defining itin clear and direct way

Tacit knowledge is more important than explicitknowledge


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CULTURAL EXPERIENCE

Cultural experience is fundamental in creating andusing tacit knowledge

Experience relates directly to variety and not to time

spent in a given activity

Experience is the best teacher for understandingcultural values of different peoples

Experience develops intuition and anticipation, and

thus it is best for developing vision

Experience contributes greatly in developinginterpersonal and intrapersonal intelligences

Experience in another country helps you in a better

understanding of your own cultural and social values


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STATIC / INERTIAL THINKING

The simplest model of thinking

TIME is not included in this model

Things and events are almost the same. They do not change, or

change is not significant

Think of Pyramids. Same image anytime

When things do not change we get a feeling of security, since

we can control events

Static or inertial thinking opposes any change. It is like aresistance


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DYNAMIC THINKING

Time is a fundamental variable Time has only an extensive dimension, measured as

duration (in seconds, minutes, hours, days, etc.)

That means that in this model, time has no direction

It is actually the physical time Things and events change in time. Processes

develop in time

Processes are reversible

For reversible processes time direction is notimportant


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A BV

VS

V = S / T T = S / V


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ENTROPIC THINKING

Time is a fundamental variable characterized by:duration and direction

Duration = quantitative dimension (seconds,minutes, hours, etc.)

Direction = qualitative dimension (past, present,

future) For irreversible processestime has direction

past >>> present >>> future

Entropy is a measure of irreversibility

Entropic thinking is the most powerful thinkingmodel from time point of view


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Past

Future

Time observer metaphor

Event 1

Event 2

Event 3

The observer is moving

I shal l come to you next week.


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Past

Future

Time observer metaphor

Event 1

Event 2

Event 3

Time is moving

Time fl ies by

Time fo r act ion has arr ived


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LINEAR THINKING

representation

Input (X)

Process constant

(K)

Output (Y)

Y = kX


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LINEAR THINKING

Outputs are proportional with inputs

Processes are described by linear equations

Linear thinking is the most frequently used approximation inour daily life

Measuring systems are based on linear thinking

Budgetary salaries are based on linear thinking

Democracy is based on linear thinking


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LINEAR APPROXIMATION

Graphical representation


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DETERMINISTIC THINKING

Based on idea that things and events must be very well defined

and determined

They are given, fixed, settled. They are certain

Mathematics, Physics have deterministic laws

Legislation, regulations in organizations

Time tables for trains, aeroplanes, students classes

Certaintyis a feeling we are looking for all the time


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RANDOM THINKING

Life events, nature events, social events have all

random/probabilisticoccurencies

They have different probabilitiesof being produced

Outcomes are not strictly determined by known inputs

There are always risksassociated with uncertainties

Understanding trends and challenges for different

developments, and shaping the future is based on this kind of

random thinking


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INTELLIGENT THINKING

A complex model of thinking able to optimize and to offer the

best solutionsto any problem

A model based on capacity of combininga lot of known data

and knowledge, in a very short time

All the data and knowledge needed are known. There are no

new elements

Intelligent thinking is strongly nonlinearand dynamic

Intelligent thinking is able to process tacit knowledge


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CREATIVE THINKING

A complex model of thinking able to generate always a newpiece of knowledge

Knowledge creation, conversion, transmission and use arebased on this model of thinking

Creative thinking is highly nonlinearand random

Scientific discoveries and Engineering innovations are basedon creative thinking

In real life there is a strong connexionbetween intelligentthinking and creative thinking


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STRATEGIC THINKING

Strategic thinking is the most advanced and the most powerful

model for Science, Engineering and Business

Strategic thinking is based mostly on the following:

- dynamic thinking- nonlinear thinking

- random thinking

- intelligent thinking

- creative thinking

Strategic thinking is the most adequate way of thinking for the

future


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STRATEGIC THINKING

Graphical representation

L NL

Complexity

D

R

S

D

Generation

Time

Simple thinking

model

Strategic thinking

model

BS 01 Strategic Thinking

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