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Psychodynamics is an open systems oriented systemic theory of strategy. Here the focus is on regulation at permeable boundaries between system and environment and between subsystems of the system. The dynamics of human open systems are somewhat turbulent and the importation of primitive human behavior disrupts organizational learning. This possibility requires careful management of boundaries and radical unpredictability does not feature as an important characteristic. The theory sees the purpose of management as intervention aimed at enabling equilibrium adaptation to the organization's environment. The analysis here is at a far more micro level than is the case with strategic choice and the learning organization, taking account of the behavior of members of an organization, particularly the unconscious causes of that behavior. Micro-diversity is recognized and success is a state of adaptation to reality.

For a view of four theories of strategy, see strategy. For a view of the psychology involved with each one see psychology.