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Under high turbulence conditions, a company's periodic planning cycle needs to be supplemented with a dynamic, real‐time, strategic‐issue‐management system. This paper aims to investigate this issue.

A case study of a prominent Australian healthcare organization shows the eight steps for how its management used the strategic issue management (SIM) process to identify, rank and address strategic issues in a rapidly changing business environment.

The paper finds that, for companies entering a period of turbulence, the tracking, monitoring, and management of strategic issues become s imperative so that the corporate, strategy, and capability do not fall out of alignment.

The company's survival may well depend on having a well‐developed process for decision‐makers to rapidly put forth critical rebalancing responses.

In the SIM approach, external issues are manifest as opportunities and threats, and internal issues as strengths and weaknesses. Issues are viewed in the context of the environment, strategy, and capability (E‐S‐C) framework. A 3×3 strategic issue priority matrix is used to map the level of urgency and potential impact of each issue.

Developments in the social neurosciences over the past two decades have rendered problematic the main knowledge elicitation techniques currently in use by strategy researchers, as a basis for revealing actors’ mental representations of strategic knowledge. Extant elicitation techniques were advanced during an era when cognitive scientists and organizational researchers alike were preoccupied with the basic information of processing limitations of decision makers and means of addressing them, predicated on an outmoded conception of strategists as affect-free, cognitive misers. The need to adapt these techniques to enable the investigation of the emotional content and structure of actors’ mental representations is now a pressing priority for the advancement of theory, research, and practice pertaining to several interrelated areas of strategic management, from dynamic capabilities development, to upper echelons theory, to strategic consensus formation. Accordingly, in this chapter, we report the findings of two studies that investigated the feasibility of adapting the repertory grid, a robust method, widely known and well used in strategic management, for this purpose. Study 1 elicited a series of commonly mentioned strategic issues (the elements) from a sample of senior managers similar in composition to the sample recruited to the second study. Study 2 participants evaluated the elements elicited in Study 1 in relation to a series of researcher-supplied bipolar attributes (the constructs), based on the well-known affective circumplex model of human emotions. In line with expectations, a series of vector-based multivariate analyses revealed a number of interesting similarities and variations among participants in terms of the basic structure and emotional salience of the issues under consideration.

Consumer goods supply chains (SCs) are characterized by continuously changing customer trends. Early detection of these trends is crucial for deriving successful long-term SC strategies. The purpose of this paper is to present a systematic process to support decision makers in assessing future-relevant issues and developing strategies.

In order to contribute to the quality of long-term decision making for SC strategy, we combine strategic issue management (SIM) and corporate foresight methodology. The authors develop a procedure that integrates the Delphi technique and SIM to empirically demonstrate how “Delphi-based SIM” can support SC strategy development.

The paper demonstrates how to craft a strategy for consumer goods SCs supported by Delphi-based SIM. The authors are able to include and evaluate uncertain and ambivalent future developments. Pertinent strategic issues for the consumer goods SC include: consumer demographics, automated ordering, city supply, and concept stores. For the reference company, five different strategic paths were created and evaluated.

It is challenging for companies to be well prepared for dynamic business environments and to successfully establish a robust SC strategy. The authors develop a systematic Delphi-based SIM for detecting and evaluating signals and integrating them into SC strategy development.

To date, a structured approach to integrate uncertain and ambivalent issues into SC strategy development is missing. With SIM and corporate foresight, the authors provide novel methods for strategy development in the consumer goods SC.

This paper reports on an intervention for improving the strategic decision making and strategic planning in a specific quasi-public organization: the Illinois Soybean Program Operating Board and on how decision support systems can alter perceptions of the decision making environment, which in turn affect strategic planning. The study hypothesis is that if the use of a sophisticated 3-D modeling tool, the Protein Consumption Dynamics (PCD) model, broadens perspectives to include a more global and long-term outlook, then the quality of planning should be enhanced. Before and after questionnaires are used to capture the changes in 121 soy industry decision- makers' perceptions of the decision making environment. The perceptions of soybean industry decision makers change to reflect more long-term thinking about the industry, indicating that the PCD model's visualized presentation of complex information did influence strategic behavior.

Despite the strong influence of Hambrick and Mason’s (1984) seminal work, the effects of top management team (TMT) characteristics on strategic processes remain unclear. This study aims to go beyond the traditional upper echelon theory and to propose a human capital taxonomy of TMTs from the perspective of top human resources managers.

The research integrates arguments from the strategic human capital and strategic issue diagnosis literatures. An exploratory cluster analysis was conducted in an attempt to describe different human capital typologies in TMTs in a sample of 120 Spanish companies.

The exploratory analysis showed three distinct human capital profiles: “technocratic teams”, “highly skilled teams” and “operational teams”. In addition, this paper provides preliminary results about the effects of each profile in the above taxonomy on strategic issue diagnostic processes, suggesting that “highly skilled teams” present the most appropriate combination of human capital attributes.

This analysis provides a guide for top managers regarding the human capital needs they may face when interpreting strategic issues in strategy formation processes.

This paper makes a twofold contribution to the extant literature: proposing an analysis of TMTs’ human capital from a synergistic perspective (“human capital profiles”) instead of using the traditional “more is better” approach and providing preliminary explanations about how those human capital combinations contribute to success in the strategic issue diagnosis process.

Despite the extensive research on the determinants and consequences of firm growth, research focusing on how the actual process unfolds is still evolving. An important part of firm growth process research is entrepreneurial cognition. The purpose of this chapter is to explore the relationship between entrepreneurial cognition and firm growth intentions. Specifically, we propose a theoretical model of entrepreneurial cognitive interpretation and categorization of market information as it relates to firm growth intentions. Drawing from the strategic cognition literature in general and strategic issue interpretation literature in particular, we propose that entrepreneurs’ interpretation of market information as opportunity or threat, gain or loss, and controllable or uncontrollable influences their firm growth intentions. Furthermore, our theoretical model discusses the condition under which favorable interpretation of market information leads to higher growth intentions by incorporating insights from the Entrepreneurial Orientation (EO) construct. This chapter extends our understanding of firm growth processes by highlighting the important role cognitive interpretation and categorization play in facilitating or hindering entrepreneurial firm growth.

Personal management styles tend to heavily influence strategic decision making. The authors identify six management styles and describe how each style can influence a company's strategic planning.

The purpose of this paper is to examine the role of cognitive diversity on strategic issue interpretation among the boards of directors making sense of sustainability management. The study also investigated the centrality of the corporate sustainability issues to identify common interpretative patterns in the shared cognitive maps among the companies. In addition, the aim was to advance quantitative methods for the analysis of decision-makers’ cognition.

The research was an exploratory study analyzing 43 individual cognitive maps collected through surveys from the boards of nine cleantech companies. For the elicitation of the cognitive maps, the study used the hybrid cognitive mapping technique. The diversity of the shared cognitive maps was analyzed using the distance ratio formula and the graph analysis method with eigenvector to measure the centrality of the strategic issue interpretation in the maps.

This study provides evidence through the analysis of distance ratios on the existence of cognitive diversity among companies within the same industry. Surprisingly, despite the cognitive diversity, the study identified strong common patterns on strategic issue interpretations among the companies. In addition, the study shows that the sustainability management issues have gained minor attention from the boards of directors.

The initial industry sample provided relatively restricted perspectives on managerial cognition, and to confirm the findings regarding the effects of industry on the shared cognitive maps of top decision-makers, wider industry-level data are needed.

This study provides an approach to facilitate the process of strategic decision-making for top decision-makers by identifying the shared beliefs of the selected strategic theme and to concentrate on the most central strategic issues in the company and industry. It reveals asymmetry between the significance of sustainability issues in an open agenda and the real position of sustainability concepts in the shared cognitive maps in the green industry. Also, the study advances cognitive mapping techniques for application in the board’s decision-making.

This paper contributes to brightening the black box of corporate governance by shedding light on the interaction of the concepts of corporate sustainability and other key strategic issues within the shared cognitive maps of the boards. It also provides new empirical knowledge on top decision-making processes and the effects of cognitive diversity on the strategic issue interpretations within the corporate boards of the green industry, and it further develops the methodology for the quantification of cognitive diversity and the content of cognitive maps.

Most research issues in strategic management are essentially problem focused. To one extent or another, these problems often span levels of analysis, may align with different performance metrics, and likely hold different implications from various theoretical perspectives. Despite these variations, research has generally approached questions by taking a single perspective or by contrasting one perspective with a single alternative rather than exploring integrative implications. As such, very few efforts have sought to consider the performance implications of using combined, integrated, or multi-level perspectives. Given this reality, what actually constitutes “good” performance, how performance is effectively measured, and how performance measures align with different perspectives remain thorny problems in strategic management research. This paper discusses potential extensions by which strategic management research and theory might begin to address these conflicts. We first consider the multi-level nature of strategic management phenomena, focusing in particular on competitive advantage and value creation as core concepts. We next present three approaches in which strategic management theories tend to link levels of analysis (transaction, management, and atmosphere). We then examine the implications arising from these multi-level approaches and conclude with suggestions for future research.

Little more than a decade ago businesses enjoyed the relative luxury of continuing expansion, soft markets, comfortable margins, reasonable overheads and good returns. In those days management was akin to driving an automatic car — it wasn't really a matter of concentrating on the vehicle as much as it was simply steering gently along an unobstructed course.