Dear Prudence: An Essay on Practical Wisdom in Strategy Making

Abstract

If we presume an organizational ontology of complex, dynamic change, then what role remains for strategic intent? If managerial action is said to consist of adaptive responsiveness, then what are the foundations of value on the basis of which strategic decisions can be made? In this essay, we respond to these questions and extend the existing strategy process literature by turning to the Aristotelian concept of prudence, or practical wisdom. According to Aristotle, practical wisdom involves the virtuous capacity to make decisions and take actions that promote the “good life” for the “polis”. We explore contemporary interpretations of this concept in literature streams adjacent to strategy and determine that practical wisdom can be developed by engaging in interpretative dialogue and aesthetically‐rich experience. With these elements in view, we re‐frame strategy processes as occasions to develop the human capacity for practical wisdom.

Keywords:

• Aristotle
• Ontology
• Organizational Strategy
• Phronesis
• Practical Wisdom
• Prudence

Acknowledgements

The authors wish to thank Howard Thomas as well as the convenors and participants in the Wisdom, Ethics and Management Stream, 4th International Critical Management Studies Conference, Cambridge University, 2005.

Additional information

Notes on contributors

Matt Statler

Matt Statler is Associate Director of the International Center for Enterprise Preparedness (InterCEP) at New York University. He previously served as the Director of Research at the Imagination Lab Foundation.

Johan Roos

Johan Roos is Director of Swiss‐based Imagination Lab Foundation and SCA Visiting Professor of Strategy at the Stockholm School of Economics. He was previously professor at IMD, Switzerland

Bart Victor

Bart Victor is the Cal Turner Professor of Moral Leadership at Vanderbilt University. Professor Victor joined Vanderbilt’s Owen Graduate School of Management faculty from the Institute for Management Development International (IMD) in Lausanne Switzerland where he was Professor of Management and Director of the Program for Management Development.