forelesning1402B 3.ppt

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 Intuition in Strategic Thinking 

Why is it important ?  

What is intuition ? 

How can we develop it ? 

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Why is intuition important in strategy?

Today, many companies have done much of the hard work of catching up on quality, cost, 

speed and flexibility.

That is, there is little to gain from further improvements in these areas.

How then, should we proceed? 

Hamel & Prahalad

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We need to explore and cultivate the  potential of those activities, that are 

time-bound to a lesser extent.

The mind is the single most important 

asset in this respect.

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 Strategic Planning is Analytic 

Strategic Thinking is Intuitive 

Henry Mintzberg

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What do researchers say?

“Studying intuition is a  

way to create a more realistic view of how strategic decision 

makers actually think.”  

Eisenhardt & Zbaracki 

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What do top strategists say?

”In these thirty years, that I have had 

the pleasure to lead organizations, it has almost always gone well, when I have trusted my intuition. When I have done things the old, traditional way, it has not turned out so favourably.”  

Jan Carendi CEO Skandia 

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What do scientists say?

“Fragmentation is now very widespread, not only throughout society, but also in each individual.

This is leading to a general confusion of the mind, which creates an endless series of problems, and interferes with our clarity 

of perception, so seriously as to prevent us from being able to solve most of them.”  

David Bohm

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Cost, Speed & Accuracy of Intuition

The analytic approach to problem solvingproduces the precise answer more often, but

its distribution of errors is quite wide.

In contrast to this, intuition is less frequentlyprecise, but more consistently close to the

correct answer.

Peters et. al.

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Decisions aided by intuition are availableimmediately.

 Analysis would seem to be slower & costlier.

Though, intimate knowledge of the

subject, may be required for intuition towork properly. The investment cost of 

intuition is therefore much higher. 

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What is Intuition?

 A Hunch 

Gut Feeling 

Sudden Insight Tacit Knowledge 

Perception of the Unconscious 

Foresight 

Synthesis Language of Metaphors, Symbols & 

 Analogies  

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  Intuition is the event which occurs when an individual reaches a 

conclusion on the basis of less explicit information than is ordinarily required to reach that 

conclusion. Malcolm Westcott

 Definition:

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 Definition: 

Intuition allows one to draw on that vast storehouse of unconscious knowledge that 

includes not only everything that one has experienced or learned, either consciously or subliminally, but also the infinite reservoir of the collective or universal unconscious, in which individual separateness and ego boundaries are 

transcended. 

Frances Vaughan

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 Intuition …. 

Looks in-to-it

Perceives what is unconscious

 Visualizes it as pictures, symbols, archetypes,metaphors, analogies

Connect and link it to consciousness

Synthesize elements of knowledge andinformation to coherent patterns and wisdom

Finds the meaning

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Can intuition be wrong?

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 Intuitive problem solving;

Intuition advocate harmony between thinking, feelings, and information provided by the five senses. 

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How can we develop our intuition?

Meditation, quieting the mind 

Receptive, non-judgmental attitude 

Dream interpretation Visualization 

Guided imagery 

Understanding of symbols, myths, and 

archetypes.

Focus simultaneously in and out 

Use environment as mirror  

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 Preferences in Judgement & Perception

Direction of Energy

Extraversion (E)

Focus on the people and things in theouter world

Introversion (I)

Focus on the thoughts, feelings andimpressions of the inner world

Gathering Information

Sensing (S)

Focus on facts and details that can beconfirmed by experience

Intuition (N)

Focus on possibilities and relationshipsamong ideas

Making Decisions

Thinking (T)

Use impersonal, objective, logicalanalysis to reach conclusions

Feeling (F)

Use person-centered, subjectiveanalysis to reach conclusions

Dealing with the Outer World

Judging (J)

Plan and organize; make decisions andcome to closure

Perceiving (P)

Be spontaneous and adaptable; collectinformation and stay open to new options

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 Intuition versus Sensing 

 A cynical person knows the prize on everything, andhas no clue about the value.

The beauty is in the eye of the beholder.

Happiness is not to have many things. Happiness is

to be satisfied with what you’ve got. 

We don’t love people because we find them beautiful.We find people beautiful because we love them.

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 Intuitive understanding ....

Strangers are friends that you have not metbefore.

We should be interested in the future,because thats where we are going to spendthe rest of our life.

The best we can do for others is not to shareour wealth with them, but to show them theirown.

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What to do?

Treat intuition as real

Treat memory as an enemy Treat experience as a theory

Treat the self as a hypothesis

James March

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 A little story ....

There was a poor farmer who had a chicken, which

suddenly produced an egg made of gold ......

His surprise was great, when this happened the nextmorning as well. And the next, and the next, .....

 After some time, he became rich and greedy. He decided

to kill the chicken, opened it up and searched for evenmore eggs ......