Evaluating the Complexity of Strategy Formulation within an Organization: A Phenomenological Perspective

The problem addressed by this study was the misalignment between strategy formulation’s current philosophical worldview of positivism and its true philosophical worldview of phenomenology, the consequences of which include... [ view full abstract ]

The problem addressed by this study was the misalignment between strategy formulation’s current philosophical worldview of positivism and its true philosophical worldview of phenomenology, the consequences of which include cognitive bias, inapplicability of strategy tools, and unreliable and degrading results on organizational performance. The purpose was to develop a theory of strategy formulation apposite its complex social nature, thereby providing the appropriate philosophical lens for all strategist and strategy researcher thinking, activities, and behaviors. This was achieved via performance of a systematic review (augmented with phenomenological and root cause analyses), which has not previously been explored. The research target was a compilation of various published/unpublished and peer reviewed/non-peer reviewed documents representing an exhaustive review of the phenomenon, producing 364 cases of strategist and co-strategist experiences from 5,013 documents. Results of the analysis are exciting and significant, including expansion of the theoretical process of strategy formulation, discovery of the underlying causes of strategy’s problems, and the first ever practice theory of strategy formulation apposite its complex social nature, i.e. in a low-abstraction, un-fragmented, and comprehensive manner. This Phenomenological Theory of Strategy Formulation (TOPS) describes the process as tumultuous and dangerous, overwhelmed by nastiness, cognitive bias, and miscomprehension of strategy its formulation process, albeit with some kindness, casting doubt on whether human beings can consistently perform the process successfully. Recommendations for overcoming strategy’s barriers include training and education on the assumptions of phenomenological cognition and behavior, and on the complexities of strategy and its tumultuous formulation process. Results demonstrate the confluence of rationality and emotion/reflection to be exponentially superior to rationality alone, recommending a challenging shift in strategist cognition from positivistic to phenomenological, which enhances the iterative, interrelated web of human cognition, behavior, and relationships. Therefore, it is recommended that TOPS be utilized by strategy researchers and practitioners to guide their work, meaning that strategists must think like phenomenologists, must become phenomenologists. Also, the novel design utilized is recommended as a method of further low-abstract, un-fragmented, and comprehensive exploration and discovery required by the field, as well as phenomenological strategy and management education in order to break the positivistic research-practice-research cycle. These results demonstrate that said consequences of the strategy formulation process may now be significantly ameliorated.