Increasing complexity poses challenges to strategic management, researchers find

Social changes and the phenomena that surround us are more unpredictable and interconnected than ever before. This increased complexity poses challenges to strategic management and makes trends and developments difficult to predict. Increasing complexity requires new approaches to strategic management, according to new research from the University of Vaasa in Finland.

“In strategic management, it is essential to recognize the increasing complexity and to understand how to influence it and its components to suit the operations of the organization,” says the defending doctoral thesis at the University of Vaasa. Planner Sami Tikkanen said. November 22nd.

Based on the results of the paper, managing complexity involves reducing uncertainties associated with operations, managing organizational interconnectivity and interdependence, and creating conditions favorable to self-organization and emergence. Masu. Emergence refers to the emergence of new solutions in everyday activities as a result of interactions.

“In reality, uncertainty within an organization can be reduced by having broader and more diverse discussions, both internally and externally, about changes in the operating environment, for example,” Tikkanen says.

“Interdependence can be strengthened by setting common goals across departments and establishing partnerships with key stakeholders. By fostering a culture of autonomy and encouraging experimentation, self-organization and emergence can be strengthened.” can be promoted.”

Many changes are required to manage complexity

Research shows that managing complexity from a strategic management perspective requires changes in organizational structure, processes, communication, leadership, and culture.

Strategic management involves anticipating changes in the environment, creating meaningful goals, continually updating strategy, encouraging experimentation and learning, coaching and sharing leadership, leveraging teams and project organizations, developing adaptability, and managing change. , strategically important capabilities enhance complexity management.

In his doctoral thesis, Sami Tikkanen considered strategic management in the context of local government joint authorities in education. He used a mixed methods approach to investigate how complexity management is identified in practice in these organizations. The study was carried out in collaboration with the Finnish Local Government Association and involved a total of 27 joint education authorities across Finland.

In this paper, we have identified strategic management approaches and frameworks that can partially address the complexity challenge. The results of the paper can be used not only in future academic research, but also in the development of strategic management in joint authorities, for example in education and other public sector organizations.