Strategic Conversations: Meaning, Uses and Tools

“There is nothing more practical than a good question. – Peter Block”

Continuous improvement in the functioning of the organizations is a concern for the top management at all times. As organizations look out for means and ways to plan out ways to understand their own organization as well as the complex environment where it functions, there are different methods being developed to assist the management for the same. Over time the scope, methods and tools used for planning have evolved and the focus has shifted from simple planning concepts like budgeting (making best use of the current resources) to strategic management (that involves a proactive step to change the future). A recent trend indicates that the scope of planning has shifted to methods which integrate the outward view from the organization with the inward knowledge and processes of the firm and helps a firm adapt to change.

Therefore, from this has emerged the concept of “Strategic Conversation”, which can be best described as a “conversation (micro) that is strategic (macro) – requiring quite distinct attention to detail, and skills”¹

The purpose of strategic conversation is to foster options, possibilities, ideas, questions about the situation the business is in to situations that the stakeholders would want the business to be in. The main tool of strategic conversations is the “voice and response of the stakeholders.”

According to Chris Nicholas, “Good strategic conversation opens up options and possibilities, explores new learning and listens to dissident voices in reaching decisions.

A healthy strategic conversation dances between analysis, new learning and creative responses.”

Uses of Strategic Conversations

1. Strategic management as a tool is being used to plan, brain storm strategy, problem solving in groups, develop relationships within organizations and for effectiveness in overall organization effectiveness.

1. It is a formal tool and has a purpose and a topic. The purpose, as described above might be related to organizational effectiveness or a particular problem of the organization at that point in time. It also has a topic, where the purpose is sub divided into sub objectives and each topic then relates to a component in the strategic loop of the organization.

1. The process of strategic conversation benefits the organization as much as it benefits the participants of the process. It gives the organization a direction and the participants a chance to develop leadership qualities. Hence, this is a process that is directed at organizational development.

Therefore to summarize the meaning and the purpose of strategic conversations: the purpose of these conversations is to provide a strategic direction to the organization, through a process that leads to concrete action.

Tools facilitating dialogue

There are several tools like Mind-Mapping, group discussions, brain storming, etc that can be used to facilitate strategic conversations, but there are two unconventional tools that require specific mention. They are: Change Brain techniques and Blogging:

Change Brain: Most of the data exchange that does happen within the top management is expressed in the form of sheets, diagrams or theory. This representation gives little assistance in visualizing all critical data, making relationships, or thinking of new possibilities. To facilitate change, there are methods like “change brain” and “decision theatres” being introduced. To quote a paper published by Global Leaders Network, “Change brains are most effective where the topic under discussion is contextualized within a dynamically complex environment and where there are no simple solutions.”

Further the paper adds that, in change brain, the moderators track the properties of the system in real time. This is constantly evolving information and is displayed on walls, as an interconnected knowledge system.

The four walls contain the following information:

1. Wall one: Synthesis of past state: This wall shows the evolution of the system, to its current form. This is shown with the help of diagrams, photographs, learning history etc
2. Wall 2: Synthesis of all future state: It comprises descriptions of the official or desired future, possible alternative worlds within which the organization may need to live, succession matrices, aspirational statements, etc.
3. Wall 3: Synthesis of all ideal state: It comprises a high-level process map of supply webs and value chains as well as intended value points, feedback loops, transformations, etc. The information on this wall can also be used as inputs to simulations of one kind or another in which various assumptions can be tested
4. Wall 4: Synthesis of all present state: It comprises relationship diagrams, causal-loop diagrams, theories-in-use and any additional data that can be used to expose the underlying behavioral “code” of the system as it manifests in real-time.

This process of dialogue facilitates the flow of information from within and between domains. There is a knowledge product that becomes the end product of each conversation and the author refers that to as “Critical domain of attention”. This is of critical purpose as it is the output if intellectual discussions and is again used as an input for future discussions. This method is increasingly being recognized as an important tool for top level discussion. It is a systematic and serves as an enabler to systematic thinking if strategic issues and problems.

Blogging:

Blogging is an unconventional form of strategic conversation. However, social media like blogging has redefined the flow if information among the customers, multinationals and employees. The recent trend in blogging indicates that the process is conversational: it involves not talking through technology, but also listening, commenting, reverting.

To quote an example from the business, Bob Lutz, GM vice chairman posted a blog just prior to a big auto show where a new car was introduced. The blog sphere exploded with conversation. Comments added under his posting exceeded 100 with an equal number of links to his blog regarding the event.

However, this form of conversation, though powerful is in a very nascent stage. The organization’s acceptance of blogging will play a bog role on the development of conversations through blogging.

Examples of starting strategic conversation

The following links have some case examples of the way strategic conversation has been used in today’s world to address key questions, with the help of the questioning mode.

http://www.slideshare.net/tmeditor/extreme-inequality-starting-a-strategic-conversation

References:

http://www.strategic-conversation.com.au/html/what_is_strategic_conversation.html

“The Four Walls, Creating Decision Theatres for Deep Design, Andrew Greatrex, Global Leaders Network.

http://www.training-development.com.au/html/strategic_conversation.htm

Christine Gibbs Springer, American society of Public administration, PA Times, 2006