Strategic Thinking Appreciation

Transcription

1 Author: Acumen Insights Version: 0.1 Date Published: 20-Mar This document and the contents are the sole property of Acumen Insights Ltd. Any referenced material is the property of the original author/publisher of that material and is used as reference material within this document. By downloading a copy of this document you agree to be bound by the terms and conditions stipulated by Acumen Insights Ltd. Acumen Insights Ltd Copyright 2009

2 Introduction A way of illustrating and investigating strategic change processes (that incorporates actions, decision-making and political manoeuvring) is to view the organisational actions and decisions within an Appreciative System. Vicker s Appreciative System is based around the need to move away from the goal-seeking orientation of organisational change, to one oriented towards maintaining relationships. He termed this process the regulative process, where actors seek to maintain different kinds of relationships, e.g. improving desired relationships and restraining unfavourable ones (Vickers, 1973). Discussion Vickers suggested that the process of managerial decisionmaking, consists of a regulative process in that the individual must seek to maintain relationships instead of only being goalseeking orientated. Vickers suggested that the process of managerial decision-making, consists of a regulative process in that the individual must seek to maintain relationships instead of only being goal-seeking orientated. The regulative cycle is influenced by the initial appreciative setting, that evolves with the passage of time illustrated in Figure 1. As appreciation occurs value and reality judgements are inter-related and define each other as the world of events and ideas interact as a continuous cyclical process of purposeful human activity (Checkland and Casar, 1986). In the appreciative system the source of standards is the previous history of the system itself. As individuals appreciate the flux of events and ideas, the standards can and do change. Flux of Events & Ideas Actions Standards Actions Standards Perceive Judge Envisage desired relationships Figure 1: Vicker s Appreciative System (Checkland and Casar, 1986) This constant process of appreciation occurs at various levels within the organisation. Not only will the strategists be exposed to and in turn influence their appreciative setting but this process will occur at the lower levels of the organisation as well. In fact, as Lewis (1991) argued, organisations adapt to change through making judgements about reality. Actors establish facts about their situation; they will allocate meaning to those facts and make a comparison of the results. If required, the actors will take action based on these results. In this sense, the appreciative system: may guide decision makers to recognise particular aspects of a situation as relevant and to a particular view of what data is needed and how the decision should be made. Lewis (1991: 39) 1 acumeninsights

3 No individual(s) can ever know the whole situation but can only interpret the situation through a particular set of ideas/expectations (Lewis, 1991) As Vickers (1968) argued, most problems, which humans try to solve, are set by their own appreciative judgements and cannot be guessed without making assumptions about how reality judgements are formed. The basis of this view is grounded in the recognition of the key influences on decision-making of past events and ideas; but also with the influence of present decision-making on future decisions and also on the social processes that comprise the world of events and ideas. Lewis (1991) further argued that any problem that calls for a decision to be made is the result of past events and those ideas that lead to the perception of the problem. No individual(s) can ever know the whole situation but can only interpret the situation through a particular set of ideas/expectations (Lewis, 1991). In the appreciative system the process of regulation comprises two components, appreciation and instrumentation. The first part of the cycle, the appreciation component, consists of two activities: prediction and valuation. The second component, instrumentation, comprises one activity: innovation. Each of these three activities prediction, valuation and innovation corresponded to a different kind of judgement: reality, value and instrumental judgement, respectively as illustrated in Figure 1. Appreciative Setting Reality Judgements (facts) - predication - Value Judgements (norms) - valuation - Regulative Cycle Instrumentation Instrumental judgements - Innovation - Figure 2: Regulative System (Adapted from Alcocer, 1992) Reality and value judgements inter-relate during the process of appreciation. Each one serves as a basis for the other. Their interaction is influenced by the appreciative settings, which dictates the current state of readiness to see and value things one-way rather than another. The appreciative setting comprises the observed, the communicated and the experienced world, on one hand, and the degree of freedom on the other. Reality judgements refer to facts. They are easier to prove but depend on their relevance to a value judgement, whilst value judgements refer to norms. They can 2 acumeninsights

4 only be approved or condemned by other value judgements. They consist of ideal norms, standards, commitments and enjoyments. Within the second component of the regulative cycle, the instrumental judgements are supposed to be demonstrable after the event. They involve commitment of resources such as time and capabilities. In particular, Vickers recognised three types of innovation: alter the external course of affairs (physical and social environments); alter own course in relation to the external course of affairs; and reorganise the appreciative system (changing the organisation, culture and personnel). For these reasons: The skills needed to perform instrumental judgements are not only those needed to change the physical milieu but also comprise the skills to envisage the possibility of organisational and social change Alcocer (1992: 120) The appreciative system illustrates a more realistic perspective of decision-making and action taking within organizations. The appreciative system illustrates a more realistic perspective of decision-making and action taking within organisations one that does not depend on the classical model of an organisation based on the economic man (Lewis, 1991). Although this perspective clearly represents a more social view of organisational life, one cannot simply neglect the more objective and rational aspects of organisational change. It is the recognition of both the objective, rational and the more subjective, social perspectives that will provide a more realistic view of strategy development and implementation. Additionally, the appreciative system can be useful as: it acts as a cognitive framework or filter which recognises certain facts about reality as meaningful data and uses these to create the observers understanding of reality but rejects those facts which are not meaningful in terms of the cognitive framework. Lewis (1991: 39) 3 acumeninsights

5 References Alcocer, F., 1992, Bringing about strategic thinking into small Mexican organisations - a systematic approach, PhD Thesis - Lancaster University. Checkland, P. and Casar, A., 1986, Vickers concept of an Appreciative System: A systemic Account, Journal of Applied Systems Analysis, pp , 10. Lewis, P., 1991, The Decision Making basis for IS: The contribution of Vickers concept of appreciation to soft systems perspective, European Journal of Information Systems, Vol 1 No 1. Vickers, G., 1973, Making Institution Work, Associated Business Programmes, London. 4 acumeninsights