Working with transformative strategies

The tensions presented in this book are experienced at multiple levels: individual, organization, and organization-environment. An important way in which organizations can sustain transformative strategizing over time is through structured flexibility. Decision-makers start by identifying the tension's sides. The expertise decision-makers and other organizational members develop about these two sides can act as boundaries of action. To be able to transform organizations in a way that allows the incorporation of tensions, it is necessary to introduce new ways to manage. Management innovation refers to the introduction of new management practices, processes, and structures that are new to the firm and intended to further organizational goals. Management innovation is necessary because accommodating tensions within organizations requires new management principles, practices, and structures. Leaders play a key role in incorporating tensions because leaders’ characteristics and actions affect both the strategy content and, subsequently, organizational outcomes.