Humanizing strategy

Ikujiro Nonaka; Hirotaka Takeuchi

doi:10.1016/j.lrp.2021.102070

Humanizing strategy

Long Range Plann. 2021 Aug;54(4):102070. doi: 10.1016/j.lrp.2021.102070. Epub 2021 Jan 8.

Authors

Ikujiro Nonaka¹, Hirotaka Takeuchi²

Affiliations

¹ Professor Emeritus, Hitotsubashi University, Japan.
² Professor of Management Practice, Harvard Business School, USA.

Abstract

In this article, we apply our latest thinking on knowledge to provide insights on how to reconceptualize strategy to cope with a VUCA world, epitomized recently by COVID-19. We demonstrate that business leaders must draw on phronesis, or practical wisdom, for strategy to become more future-oriented, society-focused, dynamic, and human-centric. Using in-depth case studies, we show how companies will survive in the long run if they start with a moral purpose, and end by offering value to customers, contributing to society, living in harmony with nature, and creating a new and better future. We came up with six practices that enable business leaders to create new and better futures, citing evidences from neuroscience. We conclude that humans should be at the center of strategy, driving future-making with the help of digital-led automation. Reconceptualizing strategy based on this "inside-out" approach, the reward to the company is resilience, longevity, and sustainability.

Keywords: Future-making; Inside-out approach to strategy; Neuroscience; Practical wisdom; Sustainability.