Interactive Strategy-making: Dynamic Adaptation with Links to Design Thinking and Theory of Change

Strategy as a field evolved from a final policy course that connects various business topics to manage an enterprise towards achieving long-term sustainable outcomes. When taught, it typically adopts a strategic planning perspective that interacts with emergent strategy-making modes as more adaptive approaches to generate strategic outcomes. Along different research paths, Theory of Change evolved as methodologies for planned adaptive management of public development initiatives whereas design thinking focused on innovative product and project development processes. This chapter identifies the apparent resonance between interactive strategy-making, design thinking, and Theory of Change that hitherto have followed disparate research streams. These diverse perspectives are synthesized into a framework for experiential learning where conscious commitments to exploratory initiatives can probe relevant elements of future strategies along a guided path of prudent incremental resource commitments. The potential of this interactive strategy-making approach is discussed as a promising way to manoeuvre in highly uncertain environments.