2 BACKGROUND
2.1 A Recurring Issue
Strategic management topics carry a certain glamor
and are quite popular among business students. The
classroom problems covered are challenging and gen-
erate ample discussion. Nevertheless, business strat-
egy implementation remains problematic, perhaps
since the inception of the concept. Because this fact
remains mostly unacknowledged, we keep producing
strategies, and we keep believing we follow them, but
we actually rarely describe how to implement them.
One might think that strategic management prac-
titioners would know better. The promise of strate-
gic management is to identify what is important to
do now in view of intended future performance. And
yet, most practicing strategists don’t seem to follow
through the implementation of their strategies. With-
out proper implementation, no claims can be made
about the quality of a strategy. Unfortunately, at the
end of the day, companies keep struggling with how
to make their intentions show up in the bottom line.
The worst case scenario is when strategy theory
becomes akin to ”the emperor’s new clothes”. When a
strategy fails, executives and managers dare not blame
the failure on the approach they use, seeing as others
are seemingly following the same approach and al-
legedly doing well. Successive companies spend for-
tunes to buy or devise strategies that never produce the
intended results, sometimes even the opposite. Re-
peatedly failing to produce the intended results re-
veals a bankrupt approach.
2.2 Approach
Blaming failed strategies on difficult times, bad man-
agement or bad implementation is tempting, but the
argument does not hold water. According to Warren
(2012), both the theory and the practice of strategy
are seriously flawed. Adcroft and Willis (2008) ex-
plained that the reason is because knowledge trans-
fer from academia to practice is flawed. Thomas
et al. (2013) concurred, stating that the dominant
concern of academia appears to be a need for self-
justification rather than practical application. There-
fore, left mostly on their own, practitioners built a less
than flattering track record (e.g. Craig, 2005; Kihn,
2009; O’Shea and Madigan, 1998; Pinault, 2001).
Isaac Newton is credited for having said “If I have
seen further it is by standing on the shoulders of gi-
ants.” The strategic management body of knowledge
contributes little to understand why people rely on
strategies whose implementation keeps failing. To
avoid this syndrome, a mathematical metaphor from
Kurt G
¨
odel’s incompleteness theorems (about inher-
ent limitations of formal systems) suggests that one
should search outside the current body of knowledge
to deal with the limitations of strategic management.
This possibility is supported by Johansson (2006),
who argued that intersectional innovations, combin-
ing different knowledge sources, create opportunities
for research and teaching. This paper uses key histor-
ical references to provide a contribution from the sys-
tems sciences to strategic knowledge. Some funda-
mental principles, that were available since the birth
of the field, have apparently been overlooked or for-
gotten by strategy makers.
3 THE SYSTEMS SCIENCE VIEW
OF STRATEGY
3.1 Origins of Strategy in Systems
Science
Engineering design and construction relies on find-
ing solutions to mathematical models that incorporate
knowledge about relevant laws of nature and desired
system properties. For a set of initial conditions and
environmental parameters, those solutions depict the
characteristic behaviors of the system as functions of
time, and show how the system can evolve in response
to different inputs. A model with good predictive
power cannot be derived when knowledge about sys-
tem properties is scarce. Then again, without such
knowledge, one strategy is as good as the next.
Strategy practice doesn’t use mathematical mod-
els because management theory seldom uses mathe-
matics to build knowledge about system properties.
The common belief in the social sciences that useful
models are descriptive, without predictive capabili-
ties, was acknowledged early in an article published
by the ”Society for General Systems Research” Ar-
row (1956). Adding to the proof that systems knowl-
edge was part of a manager’s background, the influ-
ential theorist Chester Barnard was a member of the
Society.
In those early days, general systems and cybernet-
ics authors were seeing common feedback dynamics
properties across disparate knowledge domains, quite
different from engineering or physics. (The term ”cy-
bernetics” was probably intended to interest an in-
terdisciplinary audience in the mathematical model-
ing background of control theory.) Among those au-
thors was von Bertalanffy (1968), from the Psychi-
atric & Psychosomatic Research Institute at Univer-
Model-based Strategic Knowledge Elicitation
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