What is the role of sensemaking in understanding the internal context?

Sensemaking is the process of continually observing and interpreting changes in an organization’s internal context to understand their impact on operations, strategy, and performance.

Key Aspects of Sensemaking:

Observation: Identifies changes in processes, culture, or structure.

Interpretation: Evaluates how these changes affect the organization directly, indirectly, or cumulatively.

Why This is Important:

Sensemaking allows organizations to adapt effectively to evolving internal dynamics and maintain alignment with goals.

Why Other Options Are Incorrect:

A: Supply chain analysis focuses on a specific operational area, not the broader internal context.

B: While culture evaluation is part of sensemaking, it is not the entirety of the process.

C: Financial audits address compliance, not sensemaking.