Abstract
Previous research on Strategic Issue Diagnosis (SID) had focused on the complexity and novelty associated with the decision-making process in a turbulent environment. What had not been previously addressed in the extant literature is the requirement for speed inherent within the SID process, especially that is related to the gathering of information and facts through an organisation’s environmental scanning procedures. Since proactive management techniques, nimble processes, and systems that allow an organisation to be responsive and build rapid decision-making capabilities are important determinants of success in a turbulent environment, the element of speed associated with SID is an important factor. Our paper identifies a series of propositions focusing attention on elements of the environmental scanning processes and management hierarchies that are intended to counteract the recursiveness and redundancy inherent in SID systems and ultimately hasten the strategic decision-making process.
Highlights
Previous research exists on the strategies used by a firm to obtain competitive advantage in a turbulent environment or an environment characterised by continuous change, uncertainty or complexity
Nimble processes, and systems that allow an organisation to be responsive and build rapid decision-making capabilities are an important determinant of success in a turbulent environment (Eisenhardt, 1989; Meyers, Goes, & Brooks, 1993)
Rapid decision-making capabilities are of interest to decision makers in organisations that operate in turbulent environments where environmental change is frequently occurring
Summary
Previous research exists on the strategies used by a firm to obtain competitive advantage in a turbulent environment or an environment characterised by continuous change, uncertainty or complexity. Ansoff, (1991) who initially introduced his concept of SIMS in 1991, advocated processes to assign issues into categories according to required action, outlined methods for the evaluation, classification and assignment of authority, responsibility, and resources necessary to effectively deal with the issues as they arise Others have focused their efforts on the improvement of traditional strategic planning processes with the incorporation of the principles of issue management (Camillus & Datta, 1991). We propose that changes to organisational structure, systems, and style are necessary to increase SID speed and that the necessary components of the process are the development of reliable, relevant, and retrievable information that is managed by knowledgeable, networked, and nimble-minded intelligence professionals whose function is to build cohesive strategic issues from the continuous flow of environmental events that impact the organisation
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