This paper offers a refined conceptualization of consensus formation and demonstrates in three organizations how this conceptualization enables us to uncover new patterns of consensus building. It describes a longitudinal study which investigated consensus formation in three organizations undergoing major strategic change. The study explored whether consensus building occurred during the strategic change, and if so, how. Initial participants of consensus were also investigated as well as changes in the scope of participants in consensus. Consensus building did occur, but contrary to some views, less through an increase in the strength of consensus and more through an increase in the scope of consensus. Additionally, initial consensus was not located among members of the top management team, but more within an interest group whose members benefited from the given direction of the change.

in St. Louis for their constructive comments on earlier drafts of this manuscript. 1 A THEORY OF STRATEGIC PROBLEM FORMULATION We develop a theory of strategic problem formulation for complex, ill-structured problems. Based on a limited number of assumptions, we theoretically identify a core set of impediments that limit the comprehensiveness of the formulation activity. We then use these impediments to derive design goals, which, if satisfied by an appropriately designed mechanism, can expand problem formulation comprehensiveness. We design a structured process that indeed satisfies the goals and discuss its use in several real-world applications. 2 Designing new business strategies, producing innovations to grow profit, and developing novel supply chain configurations to achieve a cost advantage are some of the complex, illstructured strategic challenges organizations must grapple with in creating sources of competitive advantage (e.g., Camillus, 2008, Nickerson, Silverman, & Zenger, 2007). 1