This book transposes the ‘free-energy principle’, as espoused by the neuroscientist Karl Friston, to strategic governance, and forming the new concept of Free-Energy Governance (FEG). This concept lays the foundation for a new logic of governing continuous transformation. In addition to guiding the structure, cognition, and capabilities of success in strategic renewal, FEG provides a systematic and practice-relevant approach to predicting a firm’s potential for entropy.Using this new concept, the author shows that the success of continuous strategic renewal and business innovation, elements crucial for firm survival, are determined by the triplet of a firm’s structure, cognition, and dynamic board capabilities. “How to govern large organizations in times of high uncertainty and permanent change? To answer this pressing question, … Bijan Khezri has been the first to apply [the free energy] principle to management science … This book is an eyeopener for every reflective leader.¨Professor Oliver Gassmann, Director of the Institute of Management and Technology, University of St. Gallen“I really enjoyed reading this book. It was both exciting and reassuring to see how the same fundamental ideas can be found in fields as disparate as nonequilibrium steady-state physics and theories of governance.”Professor Karl. J. Friston; Director of the Wellcome Centre for Human Neuroimaging“Using a term often applied to best-selling novels, ‘it is a page turner’ in which I learned something new in every chapter! Every board member, all executives and scholars interested in strategic leadership and governance must read this book if they wish to remain relevant in the coming transformational decades.”Michael A. Hitt University Distinguished Professor Emeritus, Mays Business School, Texas A

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