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STRATEGIC THINKING
Prof.Dr.Dr.Dr.H.C. Cons tant in B rat ianu
Facul ty of B usiness Adminis t rat ion
Academy of Econom ic Studies
Bu charest, Romania
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My bus iness is
th ink ing
T.A. Edison
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KNOWLEDGE PARADOX
We are living in a world which is infinitein time,space and complexity
We need to understand this world for survival, and
for a better life
However, our mind is finitefrom biological andpsychological point of views
How can we know and understand an infiniteworldwith a finitemind ?
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THINKING MODEL
We are using thinking modelswhich are cognitiveapproximations of complex real phenomena
Thinking models are developed throughout our
educationin family, school, church and society
The more powerful these thinking models are, thebetter cognitive approximationswe can get
The more powerful these thinking models are, thebetter decisionswe can make
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STRUCTURE
Basic structure
knowledge
rules
values
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KNOWLEDGE
Data, Information, Knowledge
- information = processed data
- knowledge = processed information
Tacit knowledge
- experience
- talent
- intuition
Explicit knowledge
- concepts
- ideas
- theories
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KNOWLEDGE
Knowledge Strudcture
Explicit Knowledge
Tacit Knowledge
Rational Mind
Non-RationalMind
Knowledge Transfer
Process
Direct
Experience
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Cogi to, ergo sum !
R. Descartes
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To release the spir i t on e must accentuate the wo rk w ith
meditat ions o f the heart and the soul.
(M. Musasch iThe Book o f f ive r ings )
Kamakura
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KNOWLEDGE
Knowledge Strudcture
Cognitive
Knowledge
Emotional
Knowledge
Rational Mind
Non-Rational
Mind
Knowledge Transfer
Process
Direct
Experience
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snow
(snow)-t
(snow)- e
snow = (snow)- t + (snow)- e
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snow
snow
t
e
e
t
Northern EuropeSouthern Europe
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nowledgeKnowledge structure
Cognitive knowledge
Emotional knowledge
Mind
Heart
Knowledge transfer
process
Sensory system
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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 andmovies.
Think of unexpected events able to generates
emotions.
Think of the great leaders able to motivate especiallythrough emotions many people.
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RULES
Behavior rules in childhood
Religious rules
Grammar rules
Mathematical rules
Logical rules
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INTELLIGENCES
Linguistic intelligence
Logical-Mathematical Intelligence
Musical intelligence
Spatial intelligence
Bodily-Kinesthetic intelligence Naturalist intelligence
Interpersonal intelligence
Intrapersonal intelligence
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VALUES
Values= Deeply held ideas of members about what isright or wrong, fair or unfair anything that has personalworth or meaning
We are living in a given culture, which is defined by a setof fundamental values
We learn these values through education in family,
school, church and society
Values constitute the reference systemof our decisions
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Coca-Cola Company
Values: Leadership: The courage to shape a better future.
Passion: Comm it ted in heart and m ind.
Integrity: Be real.
Accountability: If it is to be, its up to me.
Collaboration: Leverage co l lect ive genius.
Innovation: Seek, imagine, create, delight.
Quality: What we do, we do wel l.
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CULTURAL VALUES IN USA
Private property Competition and individualism
Performance
Time is the vital resource of anyenterprise
The American dream and the need of
self fulfilment
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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
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PATTERNS OF THINKING
It works !
Do it yourself !
Modular thinking, and less integral thinking
Trust nothing of what you listen to, and only half of
what you see.
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CULTURAL VALUES IN JAPAN
Japanese cultural values are quite opposite of theAmerican cultural values
There is a strong emphasis on team work,
cooperation, modesty and group referentialsystem
There is a strong respect of seniority, academicrank and hierarchy
There is a strong respect of traditions andunwritten behaviour rules
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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 andthoughts, and never request a clear answer
Sharing experience is more important than defining itin clear and direct way
Tacit knowledge is more important than explicitknowledge
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CULTURAL EXPERIENCE
Cultural experience is fundamental in creating andusing tacit knowledge
Experience relates directly to variety and not to time
spent in a given activity
Experience is the best teacher for understandingcultural values of different peoples
Experience develops intuition and anticipation, and
thus it is best for developing vision
Experience contributes greatly in developinginterpersonal and intrapersonal intelligences
Experience in another country helps you in a better
understanding of your own cultural and social values
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STATIC / INERTIAL THINKING
The simplest model of thinking
TIME is not included in this model
Things and events are almost the same. They do not change, or
change is not significant
Think of Pyramids. Same image anytime
When things do not change we get a feeling of security, since
we can control events
Static or inertial thinking opposes any change. It is like aresistance
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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 notimportant
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A BV
VS
V = S / T T = S / V
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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 processestime has direction
past >>> present >>> future
Entropy is a measure of irreversibility
Entropic thinking is the most powerful thinkingmodel from time point of view
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Past
Future
Time observer metaphor
Event 1
Event 2
Event 3
The observer is moving
I shal l come to you next week.
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Past
Future
Time observer metaphor
Event 1
Event 2
Event 3
Time is moving
Time fl ies by
Time fo r act ion has arr ived
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LINEAR THINKING
representation
Input (X)
Process constant
(K)
Output (Y)
Y = kX
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LINEAR THINKING
Outputs are proportional with inputs
Processes are described by linear equations
Linear thinking is the most frequently used approximation inour daily life
Measuring systems are based on linear thinking
Budgetary salaries are based on linear thinking
Democracy is based on linear thinking
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LINEAR APPROXIMATION
Graphical representation
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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
Certaintyis a feeling we are looking for all the time
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RANDOM THINKING
Life events, nature events, social events have all
random/probabilisticoccurencies
They have different probabilitiesof being produced
Outcomes are not strictly determined by known inputs
There are always risksassociated with uncertainties
Understanding trends and challenges for different
developments, and shaping the future is based on this kind of
random thinking
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INTELLIGENT THINKING
A complex model of thinking able to optimize and to offer the
best solutionsto any problem
A model based on capacity of combininga 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 nonlinearand dynamic
Intelligent thinking is able to process tacit knowledge
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CREATIVE THINKING
A complex model of thinking able to generate always a newpiece of knowledge
Knowledge creation, conversion, transmission and use arebased on this model of thinking
Creative thinking is highly nonlinearand random
Scientific discoveries and Engineering innovations are basedon creative thinking
In real life there is a strong connexionbetween intelligentthinking and creative thinking
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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
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STRATEGIC THINKING
Graphical representation
L NL
Complexity
D
R
S
D
Generation
Time
Simple thinking
model
Strategic thinking
model