According to ……. Systems thinking is an approach to integration that is based on the belief
that the component parts of a system will act differently when isolated from
the system’s environment or other parts of the system. Where as, Strategic management is
defined as the process of evaluation, planning, and implementation designed to maintain or improve
competitive advantage. The process of evaluation is concerned with assessment of the external and
internal environments. Planning involves developing business models, corporate direction,
competitive tactics, international strategy, acquisitions, and collaborative action. The implementation
phase requires leadership to build the appropriate organizational structure, develop management
culture, control the strategic processes, and steer the organization through ethical corporate
governance. The outcomes of strategic activity are visible in the change in revenues, market shares,
profits, and return on investment for stakeholders. The outcomes create a feedback loop which in
turn affects the external and internal environment of the organization. Therefore, this essay seeks to
critically appraise the statement “Systems thinking essentially seeks to understand phenomena
as a whole formed by the interaction of parts.” (Stacey, 2011), in relation to the changing ideas
of strategic thinking and see how it exists within a company’s strategic management.
In today’s dynamic world, the business environment is quite complex and multi-faceted and this
environment has a far-reaching impact. Strategy as a whole has been a unique tool as every
organization has systems and strategies in place in order to achieve their goals. Combined, the
vision, mission and values statements provide the essential context for the development and
execution of strategy.
In the 1990s, there were three concepts of strategic thinking: strategy as art, strategy as science,
and strategy as a combination of these two approaches. Ohmae, Minzberg, and Stacy considered
strategy as an intuitive, creative and divergent process, strategy as art, whereas Andrews, Ansoff,
and Porter insisted on the idea that strategy is a convergent, rational, analytical thought process,
strategy as science. The concept of strategy as art refers to an eastern model of thinking, based
on the work of the right brain. In contrast, another view is western, analytical, and grounded in
the functions of the left-brain. However, in the late 1990s, Wilson, Liedtka, Raimond,
Heracleous supported the concept of strategic thinking as a synthesis of the rational and intuitive
processes, and regard it as a balanced and the most effective tool of management. Ohmae
subscribes to the idea of the priority of intuitive problem solving before the logical one.
According to Ohmae, right brain provides the better insight into the problem that analytical
reasoning. Ohmae believes in the power of nonlinear thinking that integrates the separate parts of
the process into a new effective pattern, produced by the right brain. Ohmae does not deny the
use of logic; moreover, he gives a manager some flexibility in applying logic where it seems to
be necessary (Ohmae,1982, 13-14). Bates and Dillard Jnr outline the key features of art strategic
thinking: intuitive ability, abstract thinking, tolerance for ambiguity and risk, and mental
elasticity. They insist on the involvement of the staff members in the whole operation process.
