Strategic thinking is a rational and intentional thought process focusing on analyzing the variables and factors that may influence the success of an organization. It includes deliberate and careful anticipation of vulnerabilities and threats to protect an organization. Ultimately, strategic thinking can lead to clarity in plans, ideas, and goals. Managers must learn and utilize this skill to thrive in this ever-changing, competitive environment. When making decisions, managers must account for available resources, market forces, and economic realities. Successful managers utilize decisiveness, leadership skills, communication, problem-solving, innovation, and analytical thinking for strategic thinking.
The importance of strategic thinking
In any organization, the competitive landscape may change quickly. New trends emerge quickly, and for management, it is important to take advantage of them quickly if they don’t want to fall behind. By using strategic thinking in their everyday life, they can become skilled at anticipating new trends, forecasting, and taking advantage of these opportunities. Individually, strategic thinking can allow you to succeed in your role, contribute to your organization, and showcase your skills to control resources.
Models of strategic thinking
There are several strategic thinking models to choose from when planning your thinking process. It is important to choose one that supports your organization’s process and ensures that action is taken promptly to ensure the desired outcomes. Otherwise, you may be stuck with good ideas without any execution to bring results.
Blue Ocean Strategy is a model which pursues low costs and differentiation. The aim of this strategy is to make competition irrelevant by creating a new space in the market instead of trying to outperform current competitors. The strategy also provides tools to achieve this by swimming out of the current market space. The Blue Ocean Strategy provides a canvas and a roadmap on which you can build your strategy and execute it.
Scenario Planning focuses on the future and can play an important role in developing strategic thinking. This model explores different possible futures and considers what an organization’s future may look like in ten to twenty years by forecasting the changes in the competitive environment. This is a disciplined way of imagining how different events can impact the sustainability of an organization. Scenario planning shows how various elements can interact based on certain conditions.
While many other models are available to explore, it is best to focus on one most closely aligned with your goals.
The components of strategic thinking
Aspiring management professionals will need to hone their decision-making, problem-solving, analysis, and strategic thinking skills if they want to lead through change. An online mba degree from Aston University can help you develop these skills so you can achieve your goals and lead change in your organization. When creating a strategic plan for your organization, here are the components that you will need to analyze:
- Business vulnerabilities and opportunities
- Feasibility of each risk or idea
- The likelihood of effectiveness of each tactic
- The associated costs for each of these moves
- Methods of achieving objectives through these moves
- The effects of customers, suppliers, and competitors on these plans
During the planning process, you will come across several obstacles. You can solve these problems by gathering quality information, defining the said problem, thinking about possible solutions, and forecasting further challenges. You can then design a strategy based on this information. Strategic thinking requires decisiveness and agility when choosing a plan of action. You will also have to be aware of more promising new opportunities. To be successful, you will have to find a balance between flexibility and consistency. The decisions you make must be well-informed, and you will need to follow a standard process whenever making decisions.
As a manager, you will also need to communicate your ideas to the rest of your team members and invite their feedback during this process. You can utilize different communication channels to share your vision with your team members so they can focus on their contributions.
Qualities of strategic thinkers
While all managers and leaders are different, they do share a few characteristics that make them good strategic thinkers:
- Strategic foresight: These leaders can think ahead of their time and anticipate problems before they happen. They always have a backup plan so they can pivot quickly when needed.
- Flexible attitude: Strategic thinkers can change course when needed if their current plan is not giving them the desired results. They are flexible and able to reassess their assumptions and ideas.
- Inquisitive: They are not afraid to challenge or question conventional thinking. They ask the right questions to find a solution to their problems.
- Contextualizing information: Strategic thinkers need to address long-term and short-term goals so they can see information through the viewpoint of the past, present, and future.
- Connecting the dots: These leaders have the ability to spot patterns and find meaning from trends.
Improving your strategic thinking skills
Developing strategic thinking skills requires a lot of time and conscious effort. Fortunately, with the right tools and the willingness to learn, you can hone your skills successfully. Here are a few tips to follow:
- Ask more questions. This will help you develop your planning and analytical skills. Asking questions will also help you get key insights into a problem so you can find the right solution.
- Learn as much as you can from others. Be open to other people’s opinions so you can gain knowledge and develop new perspectives. This will improve your thought process and help you become a strategic thinker.
- Take the time to observe trends to gain insights and reflect on them. This will help you determine areas you need to improve on.
- Although you can develop strategic thinking abilities, formal training can speed up the process. Consider enrolling in an online certification or degree program.
- Think about all the alternative options available to you before you make decisions. Compare each option before you decide on a course of action.
