The Effect of Managerial Experiences on Strategic Sensemaking

In order to survive in increasing environmental turbulence and uncertainty in the business context, organizations have to reconsider and revise their strategies frequently. But not all of them manage to detect and interpret environmental changes and, if necessary, react adequately.

Based on 50 interviews with top managers, Daniel Kauer studies the effects of managerial experiences on the strategic sensemaking of top management teams. He shows that it is very important to distinguish between the depth and breadth of managerial experience, as these discrete dimensions have different effects on strategic sensemaking on the individual as well as on the organizational level. While diversity represents a team’s potential to be successful in strategic sensemaking, the team must realize this potential through effective interaction. Therefore, the author also analyzes decisive interaction factors and describes how teams can best leverage their members’ experience.