STRATEGIC MODELS AND MANAGEMENT revised May 2017 PROFESSOR

STRATEGIC MODELS AND MANAGEMENT revised May 2017 PROFESSOR ROBIN MATTHEWS KINGSTON UNIVERSITY BUSINESS SCHOOL LONDON ECONOMIC STRATEGIES PRESIDENT OF THE LEAGUE OF CORPORATE STRATEGY AND ACCOUNTING http/www. robindcmatthews. com http: //www. tcib. org. uk/about. html http: //kpp-russia. ru 12/31/2021 robindcmatthews. com 1

payoffs GRAMMAR SYSTEM STATE Outer dynamics 12/31/2021 Inner dynamics robindcmatthews. com 2

grammar PAYOFFS (P) SDIC The system state is a chaotic attractor PP (0) OO OD DOO IDI OUTER (OD) DYNAMICS 12/31/2021 robindcmatthews. com INNER (ID) DYNAMICS 3

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Personal development portfolio; scheme Past Future Alternative paths Upside risks intention Chosen Downside risks alternative paths now Impact analysis Probability x utility

ORGANIZATIONAL GRAMMAR Introduces structure/organization • grammar Establishes meaning/sense making • describes the rules that operate in societies/organizations/institutions • Underlies • Inner dynamics • Outer dynamics • Payoffs and stakeholders that societies/organizations/institutions focus on • includes explicit, and implicit laws, regulations, traditions, cultures and mind sets external and internal to an organization. • Includes hard and soft systems • is reflected in artefacts 12/31/2021 robindcmatthews. com 6

G =Uigi Personal [P] Unconscious [U] Formal [F] an intersection of sub-grammars Concept [T] Explicit [E] Internal [M] External [X] Tacit [T] Conscious [C] Informal [I] Artefact [A] 12/31/2021 Social [S] (SOME) CATEGORIES OF robindcmatthews. com grammar 7

conceptual Action 12/31/2021 The strategic process is embedded in organizational orgrammar robindcmatthews. com 8

strategic decision process Search Intentions, aspirations, vision of the future imagining/analysing alternatives, deciding according to values norms and desired payoffs Conceptual stage Imagination/analysis Algorithms Mind sets Commitment to chosen alternatives. CONCEPTUAL Choice RISK AND UNCERTAINTY; from potential to actual Dynamics ensure that intentions are never fully realised Implementation Adaptation 12/31/2021 Implementation of chosen alternatives. Monitoring events and comparing actual with desired outcomes. Adaptation to changes in outer dynamics, inner dynamics and grammar, or miscalculations, unexpected events and disappointing payoffs. robindcmatthews. com EVENTS Actual payoffs occur. Algorithms for implementation; systems structures cultures architectures path dependence Mind sets Monitoring and control, algorithms comparing actual events to intentions. Adaptation stage Change evolution as elements of the meta model change 9

OUTER DYNAMICS 9 GRAMMAR Evaluation, 8 reflection 1 vision, intention ADAPTATION 2 values implementation 7 REALISATION SEARCH PAYOFF S 3 CAPABILITIES 6 choice commitment 5 GRAMMAR 4 alternative scenarios RISK robindcmatthews. com GRAMMAR 10

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OUTER DYNAMICS 9 GRAMMAR Evaluation, 8 reflection 1 vision, intention ADAPTATION 2 values implementation 7 REALISATION SEARCH PAYOFF S 3 INNER DYNAMICS/ capabilities 6 choice commitment 5 GRAMMAR 4 alternative scenarios RISK robindcmatthews. com GRAMMAR 14