What is Strategic Thinking?

It is a proactive and systematic way of understanding aims and other factors expected to affect fulfillment of those goals for the benefit of a business or a person, a group of employees, or an organization as a whole. Such a cognition process includes evaluation of business possibilities for investment and searching for potential risks in the process. Strategic thinking allows to establish a course and chart a successful plan to direct organizations and people to function within a competitive environment. Strategic thinking applies key economic possibilities into perspective, market forces, and system resources into achieving goals over time.

Why Strategic Thinking is Important

Strategic thinking is important today because competition is stiff and many times other trends come up that organizations have to embrace or they will be forced to close down. The analysis of the environment means that the actions and decisions of individuals and organizations remain proactive in the face of such changes. As you begin to integrate strategic thinking into your daily operation, you become far better positioned to spot those opportunities and threats that will help you and your company advance further along its strategic journey. You will be able to have more influence and make greater contributions than before within your organization.

Strategic Management in Business

Strategic thinking is more critical  during the strategic planning phase within an organization. Here, managing directors, chief executive officers and other business executives co-ordinate, process and transform internal and external information into a working framework or story that outlines the business’s future for a given time period. Strategic thinking helps leaders define what concrete steps they are to take in order to achieve their vision. Many organizations have their schedules fixed with big meetings to assess their strategic management efforts and to keep the focus and importance of strategic thinking at the strategic level of decision-making intact.

Strategic thinking in leadership :Think Faster and Further in Leadership

Strategic thinking in leadership means decisions about the portfolio that a firm offers its consumers as well as the positions of competitors and the state of affairs in the market, namely decisions about scarce resources including time, personnel and capital in the organization. Strategic thinkers apply strategic thinking at managing the teams or the engagement of the employees to meet the strategic business goals in enhancing the values of resources. 

Strategic thinking as it appears in leadership is thus used to maintain focus on the organizational goals and strategies as well as being ready, willing and able to embrace change.

Aspects of Strategic Thinking

It includes a number of elements vital in building a good strategy which are considered amidst the strategic thinking process. These include:

• Analysis- Strategic thinking involves an examination of the opportunity, threat, value, and impact that relates to each and every strategic course of action.

• Decision Making – Problem identification and definition, research and analysis, generation of options and risk management. Decision making involves selecting goals, and also the strategies to pursue in the light of general strategy.

• Interaction – Ideas have to be communicated between individuals in the strategic thinking process, ideas have to be brought into the consideration of the other members of the team and in general, ideas have to be aligned with the goals of the strategic planning process.

• Leadership – A strategic thinker in leadership positions fosters teamwork, develops coalitions and assures groups and individuals to accomplish strategic goals and plans.

It also must combine elements of determination, so that you can effectively move on your goals while not becoming locked into your plans to the extent that you cannot respond to new opportunities.

Strategic thinking is one of the important aspects of an organization that needs to be worked on through appreciable efforts in order to perfect the process.Holding better strategic thinking skills is very useful in order to make better decisions and manage resources. 

Here are five steps to develop better strategic thinking:

• Have a Calendar to Plan for the Future – Ensure that you plan your month, week, day and even the minutiae by setting up several time management resources.

• Counter Stereotypes – Understand that stereotyping can be viewed in order to make more rational strategic choices.

• Evaluate Subject Matter Experts – Consult opinion leaders in your organization as a way of improving your strategic thinking process.

• Think Critically and Doubt – With critical thinking and doubting, afraid to ask questions like “Is this idea logical?” or “Is the source credible?”

• Analyze Consequences – Reflect on the effect of various strategic management tactics to predict the result with ease.

Books on Strategic Thinking

It actually means that the ability to think strategically is relative; it demands practice and learning. Several influential books provide practical insights on strategic thinking:

• Thinking Strategically: The book Competitive Edge in Business, Politics and The Everyday Life (1991) presents primary concepts to apply out-thinking to win in business and other aspects of life.

• CMOE has come up with Ahead of the Curve : Offers consumers a chance to research strategic thinking abilities that assist individuals, who work in different posts, to become innovative.

Strategic thinking is one of the major concepts in management and organizational development that is taught to managers and other organizational personnel.

It is perhaps most useful when used with reference to actual application, where it should be delivered practically in a workshop or a seminar with trained coaches or masters. Many workshops can have participants create a tailored strategic plan that applies to their positions; and subsequent feedback, scenarios, or case studies that actively apply the concepts of strategic thinking can be included in the workshops.

A strategic thinking workshop might include:

• Defining learning activities – defining what needs to be learned to promote effective learning goal attainment.

• Strategies Lessons – Preparing students with basic information about strategic ideas on important strategy concepts.

• Collaborative Meetings – We post results to share successes and areas for improvement.

• Performance Review – Establishing an evaluation of current competency concerning strategic thinking skills.

Conclusion

The ability to think strategically is one of the most important cognitive assets that distinguish ordinary performers from outstanding managers. Over time, your thinking patterns will enhance and your decision-making within the strategic directions will be appropriate for the growth of the organization.