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etiquette, the status quo and so on.
The transactions domain (mastery versus sympathy), in which
we interact in a particular way.
The relationships domain (self-oriented versus other-oriented), in
which we are concerned with our relationship with the person or
organisation we are doing something for or with.
The crux of the theory is that within each domain there are two
opposite ways of experiencing that domain. Although individuals are
aware of all of them to different degrees at the same time, one may be
more prominent.
Implications of reversal theory
There are several implications of reversal theory for the way that deci-
sions are made.
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MAKING STRATEGIC DECISIONS
1 Does the end or the means drive decisions? It is usually clear when
making a decision that sometimes the end is important and sometimes
the means matter most. Some activities may be embarked upon because
the means of getting to the end are necessary or valuable. Indeed, there
may not even be an end; the activity may be just part of a continuing
process. Other decisions may be undertaken because the end is highly
desirable, even if the means are not enjoyable. Understanding whether
it is the means or the ends that matter, can help to clarify the best choice
or decision.
2 Should you conform or rebel? The rules domain highlights the con-
trast between conforming and rebelling or challenging. Seeing a decision
in these terms can help to clarify options. Is it a time to play safe and
conform, or should you be looking for a radical new option? Frustration
can result because in the conforming state we may feel constricted,
whereas in the rebellious state we want to change and be different. The
solution is to decide which motivational state is needed and to bring it
into play when making the decision.
3 How much control is desirable? The transactions domain highlights
two fundamentally different aspects to interactions. The mastery moti-
vational state is all about power: being in charge, winning, feeling strong.
In contrast, the sympathy motivational state is about caring, in which
friendship and sensitivity are paramount. Again, it is important to under-
stand which state is appropriate and most likely to deliver a successful
decision, and then to enter that state.
4 How much do relationships matter? In the relationships domain, if
the outcome of an action is judged primarily in terms of how it affects
the individual, it is the self-oriented motivational state. If the outcome is
judged primarily in terms of how it affects something or someone else,
it is the other-oriented state. Some decisions benefit from a gut instinct,
being made by individuals with faith in themselves or sufficient
dynamism to act in isolation from others. Other decisions require a
much more associative, collaborative style, gathering views, ideas or
commitment from others. It is important to understand which approach
is most effective and appropriate. As Carter explains:
We spend our lives moving between these different
motivational states or styles, producing ever-changing
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BUSINESS STRATEGY
kaleidoscopes of state combinations. When one changes from
one state to its opposite, this takes place all at once. It is not a
gradual process, but one that immediately goes to completion.
Many people view the ability to recognise this flux of states in them-
selves and others as increasingly useful when formulating and imple-
menting decisions.
Operational business decisions
Successful operational business decisions can be achieved by:
Managing knowledge and information
Getting the corporate culture right
Fostering creativity and innovation
Focusing on continuous improvement
Empowering and mobilising people
Fitting operational decisions with the overall strategy
Managing knowledge and information systems
Establishing systems that routinely provide accurate, reliable informa-
tion is essential. Organisations need to exploit all knowledge, from
information held on computers to the expertise and experience of their
employees, to ensure that durable, effective decisions are made. Exam-
ples of businesses that manage to do this well include logistics firms,
which provide customers with up-to-the-minute information about the
location of their parcels, and online bookstores which build up an
understanding of their customers reading tastes. However, not all
knowledge systems need to be computerised. Law firms and profes-
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