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BS 01 Strategic Thinking
BS 01 Strategic Thinking
Prof.Dr.Dr.Dr.H.C. Constantin Bratianu Faculty of Business Administration Academy of Economic Studies Bucharest, Romania
My business is thinking
T.A. Edison
KNOWLEDGE PARADOX
We are living in a world which is infinite in time, space and complexity We need to understand this world for survival, and for a better life However, our mind is finite from biological and psychological point of views
How can we know and understand an infinite world with a finite mind ?
THINKING MODEL
We are using thinking models which are cognitive approximations of complex real phenomena Thinking models are developed throughout our education in family, school, church and society The more powerful these thinking models are, the better cognitive approximations we can get
The more powerful these thinking models are, the better decisions we can make
STRUCTURE
Basic structure
knowledge
rules values
KNOWLEDGE
Data, Information, Knowledge - information = processed data - knowledge = processed information Tacit knowledge - experience - talent - intuition Explicit knowledge - concepts - ideas - theories
KNOWLEDGE
Knowledge Strudcture
Kamakura
To release the spirit one must accentuate the work with meditations of the heart and the soul. (M. Musaschi The Book of five rings)
KNOWLEDGE
Knowledge Strudcture
Rational Mind
Cognitive Knowledge
Non-Rational Mind
Emotional Knowledge
Direct Experience
(snow)- e
snow
(snow)-t
snow
snow
Knowledge
Knowledge structure
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 and movies. Think of unexpected events able to generates emotions. Think of the great leaders able to motivate especially through emotions many people.
RULES
Behavior rules in childhood Religious rules
Grammar rules
Mathematical rules Logical rules
INTELLIGENCES
Linguistic intelligence Logical-Mathematical Intelligence Musical intelligence Spatial intelligence Bodily-Kinesthetic intelligence Naturalist intelligence Interpersonal intelligence Intrapersonal intelligence
VALUES
Values = Deeply held ideas of members about what is right or wrong, fair or unfair anything that has personal worth or meaning We are living in a given culture, which is defined by a set of fundamental values We learn these values through education in family, school, church and society Values constitute the reference system of our decisions
Coca-Cola Company
Values:
Leadership: The courage to shape a better future. Passion: Committed in heart and mind. Integrity: Be real. Accountability: If it is to be, its up to me. Collaboration: Leverage collective genius. Innovation: Seek, imagine, create, delight. Quality: What we do, we do well.
Private property Competition and individualism Performance Time is the vital resource of any enterprise The American dream and the need of self fulfilment
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
PATTERNS OF THINKING
It works ! Do it yourself !
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 and thoughts, and never request a clear answer Sharing experience is more important than defining it in clear and direct way Tacit knowledge is more important than explicit knowledge
CULTURAL EXPERIENCE
Cultural experience is fundamental in creating and using tacit knowledge Experience relates directly to variety and not to time spent in a given activity Experience is the best teacher for understanding cultural values of different peoples Experience develops intuition and anticipation, and thus it is best for developing vision Experience contributes greatly in developing interpersonal and intrapersonal intelligences Experience in another country helps you in a better understanding of your own cultural and social values
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 not important
V=S/T
T=S/V
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 processes time has direction past >>> present >>> future
Event 3
Event 2 Event 1
Event 3
Event 2 Event 1
LINEAR THINKING
representation
Input (X) Process constant (K) Output (Y)
Y = kX
LINEAR THINKING
Outputs are proportional with inputs Processes are described by linear equations Linear thinking is the most frequently used approximation in our daily life Measuring systems are based on linear thinking Budgetary salaries are based on linear thinking Democracy is based on linear thinking
NONLINEAR THINKING
Life processes, natural processes, social processes are not linear Outputs are related to inputs by nonlinear equations, of different forms
LINEAR APPROXIMATION
Graphical representation
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 Certainty is a feeling we are looking for all the time
RANDOM THINKING
Life events, nature events, social events have all random/probabilistic occurencies They have different probabilities of being produced Outcomes are not strictly determined by known inputs There are always risks associated with uncertainties Understanding trends and challenges for different developments, and shaping the future is based on this kind of random thinking
INTELLIGENT THINKING
A complex model of thinking able to optimize and to offer the best solutions to any problem A model based on capacity of combining a 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 nonlinear and dynamic Intelligent thinking is able to process tacit knowledge
CREATIVE THINKING
A complex model of thinking able to generate always a new piece of knowledge Knowledge creation, conversion, transmission and use are based on this model of thinking
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
STRATEGIC THINKING
Graphical representation
Time D Strategic thinking model
S
D
NL