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The new dynamics of strategy: Sense-making in a complex and complicated world

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Over the past several years, our group has been conducting a program of disruptive action research using the methods of narrative and complexity theory to address critical business issues. Action research has been defined as grounding theory in contextual exploration, emphasizing participation, and embracing change.

We started work in the areas of knowledge management, cultural change and community dynamics, then expanded into product development, market creation and branding, and in recent years have been working increasingly in the area of national and organizational strategy.

The central element of our approach is the Cynefin framework for sense-making. In this paper we describe the framework and its conceptual basis, and we detail some of its uses for sense-making to support decisionmaking in varied dynamical contexts. We challenge the universality of three basic assumptions prevalent in organizational decision support and strategy: assumptions of order, of rational choice, and of intent. We describe the Cynefin framework, a sense-making device we have developed to help people make sense of the complexities made visible by the relaxation of these assumptions. The Cynefin framework is derived from several years of action research into the use of narrative and complexity theory in organizational knowledge exchange, decision-making, strategy, and policy-making. The framework is explained, its conceptual underpinnings are outlined, and its use in group sense-making and discourse is described. Finally, the consequences of relaxing the three basic assumptions, using the Cynefin framework as a mechanism, are considered.

Author
C. F. Kurtz and D. J. Snowden

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