This article addresses a fundamental question: Why do some leaders consistently discover better strategies, even when facing similar information and constraints?
The article claims that strategic success depends not only on choosing better actions, but on how leaders mentally frame the strategy problem in the first place. Managers’ mental representations determine which alternatives they see as possible, which trade-offs they consider, and which opportunities remain invisible. Strategy is therefore shaped as much by how leaders think as by what they decide.
The article argues that leaders face a critical trade-off between two modes of strategic search: improving performance within an existing problem framing, or rethinking the framing itself. Focusing only on optimizing current strategies may deliver short-term gains but can narrow strategic imagination. Conversely, rethinking the problem representation can unlock novel strategies, though often with more uncertainty. The key insight is that effective leadership requires an ongoing balance between refining strategies and challenging underlying assumptions about the business.
Reference:
Csaszar, F.A. & Levinthal, D.A. (2019). Mental Representation and the Discovery of New Strategies. Strategic Management Journal, 40(4), 559–583.
