How can we use our new understanding to help top management change the process by which resources are invested so that strategic objectives are more … - Joseph L. Bower

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How can we use our new understanding to help top management change the process by which resources are invested so that strategic objectives are more effectively achieved? Strangely enough, given the argument above in favor of recognizing complexity, the next paragraphs develop a very simple conceptual scheme for viewing the firm. This is done because the relationships among the essential forces that have been discussed can be most clearly revealed. Furthermore, a more formal discussion facilitates a more precise statement of the research questions. It might be useful to begin a statement of the scheme with an informal description of its structure. Briefly, the scheme describes a firm's position at any point in time as representing a sum or resultant of past decisions and acts which commit the firm's resources. The process of changing that position is deemed to consist of two parts: (1) routine, and (2) critical. Routine change is the continual use of assets and generation of profit which results from the activities of ongoing business. No more will be said about this class of change. The process of critical change is described in the scheme as consisting of two parts: (1) the "business planning process" and (2) the "investment process." The former involves the problem solving which results in the choice of markets and broad product objectives. The latter involves the problem solving which results in the commitment of corporate resources in an attempt to achieve the chosen objectives.