Thinking strategically about thinking strategically: the computational structure and dynamics of managerial problem selection and formulation
Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 11
Moldoveanu M. Strategic Management Journal (UK), July 2009, Vol. 30 No. 7, Start page: 737, No. of pages: 27
Purpose – To introduce a model of cognitive choices and strategic problem formulation based on distinctions drawn from computational complexity theory to show how managers make implicit choices about the level of logical depth to which they take their thinking and introduce the notion of “thinking strategically about thinking strategically”. Design/methodology/approach– A review of the literature of current models of problem selection and formulation, focusing on their shortcomings, is presented. Groups the managerial problem statements into two classes, based on their computational complexity,comprising: P-type problems (canonically easy) and NP-type problems (difficult). Findings – The new model of managerial cognitive choice emerging from the research proposes that managers prefer to engage with and solve P-type problems rather than attempt to solve NP-type problems and this explains some of the commonly occurring patterns of managerial reasoning and decision making(documented biases, simplifying heuristics). Originality/value –Contributes to the research literature with a canonical representation and taxonomy of managerial problems based on their computational complexity. Presents a degree of mathematical rigor that will be challenging to the less mathematically inclined reader. Article type: Conceptual paper ISSN: 0143-2095 Reference: 38AP988
Keywords: Decision making, Management techniques, Managers,Mathematical analysis, Mathematical modelling, Strategic management
