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1. Introduction
Owing to the more intricate, dynamic, ambiguous context and rapidly changing conditions
through which corporate environment tend to operate today, the demand for an innovative way
consideration.
As described by Dr. Russell Ackoff in his speech on systems thinking, using a car as an
analogy, he explains that the different parts of the car will have to come together for the car to
function or work as each part cannot work individually without the other, which is what makes
it a system. Systems thinking is therefore a very useful tool and standpoint for having a clear
picture of current reality which lay emphasis on the links among several parts of the system
and how they can relate with each other (Awal street journal, 2015).
According to Senge (1990), systems thinking has extensively been well-thought-out as a basis
of organizational learning and those who apply or implement this level of thinking in recognizing
organization, and developing plans that are strategic will always produce an enhanced
environment.
This work aims to assess critically the perception of systems thinking as considered by Stacey
formed by the interaction of parts”; in connection with the varying ideas of strategic thinking
With an effort to respond to what is above, the writer will commence the essay with a
substantive desktop review of secondary sources; the approaches to strategic thinking, wide
range of systems thinking and how that fits into the broader topic of strategic management. In
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addition, further research will also be discussed on complexity perspective - new ways of
thinking about strategy, complex adaptive systems and practice viewpoint in an organizational
setting.
2. Literature Review
Firstly, it is essential to have a tangible definition of system and strategy, to serve as guide into
Five dimensions were used to comprehend strategy according to Mintzberg (2007), which are
plan, ploy, pattern, position and perspective. These dimensions of Mintzberg (2007) were
advanced further by Ahlstrand and Lampel (1998) as they examined an expository viewpoint
that permits numerous “schools” of the strategic thought including environmental, design,
Johnson, Scholes and Whittington (2008) gave further explanation to strategy as the path and
choice a firm follow continuously for a long-lasting period, to gain viable benefit combining
resources inside a changing environment, thereby enabling them meet up with the
its entirety, strategy simply is the formation of tactics or steps a firm will have to take on, to be
able to lessen or diminish the outward pressures as well as inner weaknesses if possible and
exploit the peripheral opportunities as core strength is being amplified (Whittington, 2001).
Von (1950) described a system as a component which keeps up its reality through the mutual
connection of its parts. As mentioned earlier, the multifaceted and aggressive nature of recent
the systems subject is recognized for employing measures in combination with critical systems
practice approach.
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2.1 Approaches to Strategic Thinking
Strategic thinking was defined by O'Shannassy (1999, p15) as a supple way of merging a range
of sole and collective mental activities to unravel strategic problems and form a concept or idea
of the future of the firm within the strategic management framework. This level of thinking
according happens in a dynamic scenery, which by its inclination embraces a viewpoint on the
future and its conceivable outcomes, a characteristics Gallimore (2015, p2) described as
Although Wilson (1994) simply referred to strategic thinking as thinking about the strategy,
Leonidas (2011) maintains that it demands a level of thought that deals with reason, values,
alongside procedures, people and diverse resources. He added that strategic thinking is a
method utilized in seeing the sphere with respect to the master plan, the fundamental outlines,
the prospect, just as dependent on the context or framework. This was later argued by
Feyzollah and Saeid (2015) that the method manages the thorough examination of the
prospects and complications, including the organization’s activity impact on several other key
players. It suggests an organizational level awareness of the long-term vision and the execution
of the long-term strategy full preparation or planning. Adjudicating from the above, the goal is
in fact to think and oversee strategically, not to take part in strategic planning just for the sake
This makes it obvious that a lot of key reasoning relating to strategic thinking must be
methodology wherein business pioneers proactively think and brands their organization’s future
as it looks past the present and envisions long-term problems, prospects, and inevitabilities.
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Strategic thinking concept continues to advance based on the knowledge that it is a
organizational level result (Mintzberg, 1994). The approach to planning traditionally was
criticized by Mintzberg (1994) as it enfeebles strategic thinking. In the view of relating corporate
framework to the perception of Mintzberg, Goldman et al. (2009) and Liedtka (1998) advocates
that strategic thinking establishes competitive benefit that is sustainable, which Stacey (1994)
affirms that it employs analogies in creating inventive new thoughts and scheme activities that
are dependent on new learnings. There is generally an aligned thought of the authors on
strategic thinking, its benefits and the roles played by systems thinking in all these.
Liedtka (1998) while expanding on the model of Mintzberg’s, prescribes five distinct
approaches to strategic thinking which includes intent focus, systems perspective, intelligent
a) Intent Focus: This approach to strategic thinking, also referred to as strategic intent,
concentrate their energy and attention to achieving a goal without distractions (Liedtka,
1998), leading to a lasting viable spot an organization anticipates to build (Hamel and
Prahalad, 1994).
this work by the writer is referred to as systems thinking by Senge (1990) where he
argued that it is the most important of the five. He suggested while stressing the
significance of mental models in molding human insight that it is necessary for a thinker
who is strategic to establish a rational architecture of the system as a whole and identify
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the interdependencies, to help indicate a grasp of both inner and outer environment of
corporate environment. This was agreed to by Hamel (1997) where he stated that an
d) Hypothesis Driven: The hypothesis driven approach eludes the analytical and
instinctive division that describes formal planning by postulating the creative question;
“what if?” when generating hypothesis, which then follows the testing of the hypothesis
by postulating the question; “if then” in the assessment of suitable data to the analysis
(Eton, 1999).
e) Thinking in Time: This approach was compactly described by Hamel and Prahalad
(1994) that strategy is not only future driven, however, it is also driven by the fissure
between the existing reality and the future expectations. What this approach infers is
that, by associating the historical with the current reality and connecting this to the future,
strategically, there would be the need to use an organization’s historical situation and
These five approaches were concluded by Liedtka (1998) with the statement that a
comprehensive view that visualizes the whole and the connections between its parts is required
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2.2 Systems Thinking
infrequent, there is a progressively felt need for it in organizations (Vemuri and Bellinger, 2017,
p 2). As presented by Pearl (2017), systems thinking, and strategic thinking are interrelated
based on the idea that there can be no strategy without first having a deep understanding of
Systems thinking fundamental ideas started in the early period of twentieth century from
disciplines such as organismic biology, ecology, cybernetics and psychology, and have not
altered significantly over the years, with so many applications that will be discussed in later
sections, which basically employ “the systems approach”. These ideas essentially include
environment; accepting that the linkage or connection between elements are more important
that just the elements themselves when defining the behavior of the system; realizing the
properties evolving at different level of systems; and having it in mind most especially in social
systems that individuals will act as per varying resolutions, logics or purposes (Capra,1997).
This makes systems thinking a foundation of strategic thinking and by expansion, strategic
management.
This view was expressed by Bertalanffy (1967) when he addresses that business difficulties
can be settled, and systems can be well comprehended with regards to connections as
opposed to in confinement. It was even taken further by John & Leroy (2010) in recent
developments that, thinking such as this is centered on logical idea that a system is more than
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According to Reisman and Oral (2005), in the process of resolving administrative challenges,
systems thinking infers uniqueness and some structure from soft systems thinking and
methodology, a which was developed around 1972. Checkland (1981) described soft systems
as systems of human activity, that are ordered to attain some purpose between sets of people
acting in concert, whereas according to Teale et al (2003) as cited in Rajibul (2011), hard
connected intimately with organization’s objectives and goals while expecting that every
system can be disaggregated into several subsystems. Although, Checkland and Scholes
(1990) had the notion that soft system thinking and conventional systems thinking are totally
unrelated, Reisman and Oral (2005), contested that the two are complimentary, while
different stages, soft system methodology and hard system methodology must be used. In the
writer’s opinion and bearing in mind the complex nature of the challenges faced by modern
organizations, it is necessary that business owners apply both Soft and Hard Systems
From the perspective of systems thinking, what distinguishes a system from a cluster or parts
and reveals the way connection is established in each is collaboration or relationship, making
it the system’s first property, thereby creating unity and completeness (Vasconcellos, 2002 as
cited in Magda, 2014; Meadows, 2008). Stacey (2011) further specify that the cybernetics
philosophies impact and drive systems thinking continuously since several functions of
management system and so on are considered cybernetics, thereby influencing the way
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2.3 Complexity Perspective
Complex and simple are two terms that are largely used in practical condition when discussing
sum of parts or features available in a system. When relating with complex systems, there are
so many aspects or elements to view whereas for a simple system, only one or few components
makes it up, which could make it predictable. Nicolis (1994), however came up with the
systems. They mostly believe that complexity is about connectivity, co-evolution and
study of complex behavior will help reveal exact collective features within several classes of
systems.
As indicated by Scharmer (2016), dynamic, social and rising complexity are the three forms of
complexity that influence the difficulties business pioneers must contend with. Buttressing on
the dynamic complexity, this clarifies the fissure among cause and logical results on systemic
impact issues and implies that in the aspect where this is high, business leaders are required
interdependence.
thinking and decision making. Albeit quite a lot of complex social frameworks can never be
depicted by a logical condition, the difference between simple and complex systems is the
inevitability and dynamism. As we comprehend system the more, complex systems become
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2.4 Complex Adaptive System
According to Plesk and Greenhalgh (2001), the lithe complex systems that fine-tune their
structure and actions based on the changing environment is referred to as Complex Adaptive
System (CAS). It refers to a structure that puts together the learning of nonlinear and linkage
criticism frameworks with an angle of basically challenging the control viewpoint which is the
basis of the study of cybernetics. To further clarify the concept of CAS, Plesk and Greenhalgh
(2001) went ahead to view it as assemblage of distinct representatives with liberty to perform
in actions that are not permanently expectable and whose activities remain interrelated in such
a way that the action of one alters the context for others.
Stacey (1995) contend that since circumstances and end results in organizations are
ambiguous and unclear, recognizing them is a vain exertion that could have been put as
resources into understanding the dynamics of the group within the organization that leads to
advancement. It is essential to comprehend that there is no partition between a system and its
Relatively, the concept to be broke down is that of a system immovably associated with all
other related systems making up an environment. Within such an environment, change ought
to be found similarly as co-development with all other linked systems, instead of acclimation to
tempestuous situations where change is inevitable and recurrent. The craft of planning such
systems effectively is that merged and disparate forces must be adjusted in a natural fashion.
Some of the few general guidelines include developing a common purpose; refining learning,
examination, insightful and disparate reasoning; upgrading outer and interior interconnections
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through correspondence and innovation; introducing quick input circles for self-reference and
poise; cultivating decent variety, specialization, separation and mix; making shared qualities
and standards of activity and making explicit a couple but vital basic and social limits (Dooley,
1997).
Revelations from previous studies have shown that organizations who have adopted strategic
thinking approach are extremely successful in their ventures (Amiri et al., 2012; Ansari and
Riasi, 2016). In search of ways to explore the steps of strategic thinking and dynamics of an
organization inside the boundary of complexity issues, the conventional planning strategy has
been challenged by Stacey (2011), while giving alternate complex forces of strategy
development; using the multifaceted nature hypothetical structure. No businesses in the world
today can basically subsist without ongoing collaboration with the internal and external
environment as these are forces that are usually influential based on how they are much
Stacey (2011) debatably suggests that the manager be likened to the natural scientist with
balanced opinion, isolated from the system but through designs; variation and articulate
objectives for it. Looking at how scientists place their attention on natural phenomenon,
managers are expected to place their attention on an organization, which Stacey explained
organization is: “…understood not as parts adding to a whole, but as a system in which the
interactions between its parts are of primary importance in producing a whole that is more than
With an endeavor to channel down and explore the apt between hypothesis and practice, an
assessment of how Stacey's (2011) articulation with respect to systems thinking impacts
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organizational strategic thinking and tactic to strategic management can be seen from an
assessment conducted by Gerald et al. (2016). It was discovered that most of the respondents
enormous degree. The outcome also showed that the organization effectively created and
a core competency that wound up turning into the reason for their enduring competitive
advantage, which essentially infers that the role of strategic thinking is vital to the future
planning and execution requires intimate and enthusiastic inclusion of all individuals of the
organization and through formal and informal channels in giving information for decision
making.
In the competitive market of today, responsiveness to client or provider demand and a large
study gave a recommendation that organizations ought to in this way, through strategic thinking
of their top executives, enhance the creation of networks with different offices or organizations
in light of the fact that these organizations give helpful resources that will fortify her through
4. Conclusion
Comprehending the linkage between thinking strategically and the performance of firm, sets
the phase for investigating how managers exploit administrative activities for market control
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and value creation, which it is believed that the environment of a firm helps and encourages
strategic thinking.
Outstandingly, the basic significance of associating strategic thinking and firm performance
ends up clear when we think about various sorts of industry and firm. To guarantee sustainable
advantage that is competitive for any organization, systems thinking will remain a lead
approach and strategic thinking remains the powerful force for strategic management.
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