Dominant Logic: How Top Managers Make Powerful Decisions

Dominant logic is a powerful concept in management literature. It refers to a shared cognitive map within the top management team that allows business leaders to make the right decisions fast. This map includes mindsets, worldview, conceptual models and administrative tools to accomplish goals and make decisions in that business.

The Seminal Research Study

Prahalad and Bettis wrote their seminal paper on dominant logic (referred below) which consolidated hundreds of previous research studies into a single concept of dominant logic. It explains how firms and leaders make critical decisions that lead to business success.

Dominant Logic – How Top Managers Make Powerful Decisions

In this podcast episode, I explore this idea and explain how you can use it to become a more successful manager. I also explain how it is even more relevant in this age of disruption when your old dominant logics are becoming less relevant. When your old logic no longer works, it is like flying an aircraft with a corrupt navigation system. It is a certainty you won’t reach our destination.

Evolution of Dominant Logic

I explain in the podcast how a dominant logic evolves and take hold of a team. The evolutionary story includes concept such as schemas, mental models, cognitive maps and business processes. I also explain the concept of thin slicing of information to make quick business and life decisions.

Examples

I also share many examples of dominant logic across firms. I share the examples of Kodak and Gillette to show how their dominant logic helped them become successful. The same logic eventually becomes a barrier when the business landscape changes a lot.

Key Takeaways

The  key takeaways from this episode are:

1. What is a dominant logic and where does it reside?
2. How does dominant logic arise and evolve?
3. What are some examples of dominant logic?
4. Why can dominant logic sometimes lead to disruption of firms?
5. Some actionable insights from dominant logic for you to become a more successful manager

Citations

I used the following key paper of Prahalad and Bettis for this episode:

The Dominant Logic: a New Linkage Between Diversity and Performance. (1986).

The Dominant Logic: Retrospective and Extension. (1995).

I also mentioned the wall street journal story on Sony Corporation in the podcast. Here is the citation for that article

Howard Stringer, Japanese CEO; Caught between two worlds, Sony chief tightens his management grip; will it work? Yukari Iwatani Kane And Phred Dvorak. Wall Street Journal (Eastern Edition), Mar 3, 2007, p.g. A.1

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