RESEARCH shows that the brain has three basic components-the                                                                                          
anatomy (the organ itself), the physiology (the inter                                                                                                 
connections within the brain and outside the brain to the                                                                                             
other parts of the body), and the behaviour.                                                                                                          
                                                                                                                                                      
These three components function interdependently and in                                                                                               
response to internal (the memory system) and external stimuli                                                                                         
(the environment).                                                                                                                                    
                                                                                                                                                      
Similarly, in the business world, there are three components -                                                                                        
the structural aspects (such as regulatory bodies), the                                                                                               
connectivity and interrelationships that make up the dynamics                                                                                         
of the business as depicted, for example, in Porters' Model                                                                                           
(the physiology), and the behaviour.                                                                                                                  
                                                                                                                                                      
So, too, in an organisation, we have the structure (anatomy),                                                                                         
the work processes and reporting hierarchy (the physiology),                                                                                          
and profit and loss (behaviour).                                                                                                                      
                                                                                                                                                      
The anatomy could be refereed to as the hardware, physiology                                                                                          
as the software, and behaviour as the output. These three                                                                                             
components are affected by the surrounding events that impact                                                                                         
our behaviour, and our behaviour, in turn, modifies the                                                                                               
existing physiology and the structure.                                                                                                                
                                                                                                                                                      
The resultant response to current events will influence our                                                                                           
response to future events (just like habits setting in). The                                                                                          
response is dependent on the information received, how it is                                                                                          
processed and the meaning that is derived from it.                                                                                                    
                                                                                                                                                      
For example, in recent months we have all talked and heard                                                                                            
about the effects of the exchange rate and the performance of                                                                                         
the share market. How are the two interrelated and what does                                                                                          
it mean for us in an organisation?                                                                                                                    
                                                                                                                                                      
The concept of management, be it strategic planning, MBO, TQM,                                                                                        
BPR and so on, must address all the three components and the                                                                                          
events that bear upon them. Overlooking one or more of the                                                                                            
three components may mean failure to fully realise their                                                                                              
objectives.                                                                                                                                           
                                                                                                                                                      
Take the case of business process re-engineering. In                                                                                                  
delayering the organisation, we may have under- estimated the                                                                                         
powerful underlying influence of the informal physiology which                                                                                        
could produce an emergent strategy that will derail the                                                                                               
original initiatives.                                                                                                                                 
                                                                                                                                                      
In changing the processes, there must be an accompanying                                                                                              
change of mindset for the new process to work as the two parts                                                                                        
(the process and the mindset) are part of the anatomy but                                                                                             
connected physiologically.                                                                                                                            
                                                                                                                                                      
Take another case of the economic scenario in Malaysia. The                                                                                           
volatile unfavourable exchange rates have driven profits down,                                                                                        
reevaluated projects from sustainable to unsustainable, and                                                                                           
created an outflow or withdrawal of foreign funds from the                                                                                            
region.                                                                                                                                               
                                                                                                                                                      
Businesses and organisations began to behave erratically. In                                                                                          
response, the regulatory bodies changed the rules (the                                                                                                
structure), and harnessed support from overseas and regional                                                                                          
partners (the physiology).                                                                                                                            
                                                                                                                                                      
The response from these regulatory bodies brought a new                                                                                               
meaning to the current events and restored confidence somewhat                                                                                        
in the market.                                                                                                                                        
                                                                                                                                                      
The behaviour of consumers, organisations and industries                                                                                              
sobered up and stabilised. This strategic response addressed                                                                                          
all three components and modified the behaviour of businesses.                                                                                        
                                                                                                                                                      
Whether the relationships of the various components are static                                                                                        
or dynamic will to some extent determine our approach in                                                                                              
strategic thinking.                                                                                                                                   
                                                                                                                                                      
If the relationships are static (as in the case of a formal                                                                                           
bureaucratic work environment), then a synthesis or                                                                                                   
reductionist approach can apply.                                                                                                                      
                                                                                                                                                      
For example, at the bank's frontline office, we can look at                                                                                           
customer service delivery from a reductionist or a synthesis                                                                                          
approach.                                                                                                                                             
                                                                                                                                                      
In a reductionist approach, we try to understand why the                                                                                              
customers are not happy and we identify the long queues at the                                                                                        
counter as a reason. The solution then would be to open up                                                                                            
more counters.                                                                                                                                        
                                                                                                                                                      
In a synthesis approach, we look at total customer                                                                                                    
requirements and related problems. We will then come up with                                                                                          
possibly one solution to tackle several problems at the slime                                                                                         
time.                                                                                                                                                 
                                                                                                                                                      
For example, we could introduce telebanking and the concept of                                                                                        
partnership banking as per the Hong Kong Bank advertisement.                                                                                          
This would reduce long queues at counters, the customer need                                                                                          
not come to the bank and he could call the bank at his own                                                                                            
convenience.  Furthermore, the number of counters at the bank                                                                                         
may even be reduced to save cost.                                                                                                                     
                                                                                                                                                      
Thus, in a synthesis approach, we look at all the related                                                                                             
components in order to come up with the big picture and have a                                                                                        
total solution.                                                                                                                                       
                                                                                                                                                      
If the relationships are dynamic, they could be either stable                                                                                         
or chaotic. In a stable economic environment, the trust fund                                                                                          
manager could apply systems thinking to ascertain how best to                                                                                         
optimise the portfolios under him and to minimise the risk                                                                                            
exposure.                                                                                                                                             
                                                                                                                                                      
However, if the monetary and economic environment is                                                                                                  
unpredictable as in the volatile exchange rate environment,                                                                                           
then the relationship could be chaotic. Quantum thinking would                                                                                        
be required in order to come out of the chaos.                                                                                                        
                                                                                                                                                      
Our response could be short term (in which case, it is deemed                                                                                         
to be operational in nature) or for the long term (strategic).                                                                                        
                                                                                                                                                      
A short-term response is merely a day-to-day adjustment to the business                                                                               
environment or to the organisation's immediate needs.                                                                                                 
                                                                                                                                                      
When the response is meant to be long term, then we need to                                                                                           
relook at the basic assumptions of our business or our theory                                                                                         
of the business - what are we in business for.                                                                                                        
                                                                                                                                                      
The purpose of strategic thinking is to open up the options so                                                                                        
that we can choose our strategy and respond accordingly                                                                                               
instead of just reacting.                                                                                                                             
                                                                                                                                                      
Extraordinary people visualise not what is possible or                                                                                                
probable but rather what is impossible. And by visualising                                                                                            
what is impossible, they begin to see it as possible.                                                                                                 
                                                                                                                                                      
Dr Amin Khan from Malaysia Air lines will lead a three-day                                                                                            
seminar on "Are You a Strategic Thinker?" at the MIM from May                                                                               
6 to 8. The seminar is based on a Socratic learning approach                                                                                          
and will be interactive and person alised.