Tuesday, October 13, 2009

A Closer Look at Strategic Thinking

By Bart Icles

You might have heard about strategic thinking and strategic planning, and you might be thinking that they are practically the same. However, thinking strategically and planning strategically are two different concepts but they are quite interrelated and complementary. While planning strategically involves a systematic programming of pre-identified strategies, thinking strategically involves a more integrated perspective of the organization. This underscores the role of strategic thinking in seeking innovation through having thoughts about different futures that can lead an organization to redefine its core strategies, as well as its industry.

Strategic thinking can be explained through seven dimensions. These seven dimensions are as follows: vision of the future, strategic formulation and implementation, managerial role in making strategies, control, managerial role in implementation, strategy making, and process and outcome.

When thinking strategically, only the shape of the future is predicted. One does not need to have specific details of the future; one must only have an idea of what the future will be. In this manner, the formulation and implementation of strategies are more interactive - they do not need to be discrete and sequential. When thinking strategically, lower level managers have a role in strategy making, and they can also respond to developing conditions.

Through strategic thought, control can rely on self-reference. The different elements of an organization can each have a sense of strategic intent and purpose. This intent and purpose can then be embedded in their minds and will guide them in making choices on a daily basis. In this manner, executives, managers, and supervisors are able to understand connections between and among their roles and how these influence the functioning of their organization.

Moreover, through strategic thinking, executives, managers, and supervisors are able to understand that there is a link between change and strategy. By doing so, they are able to understand that identifying new strategic options and having to implement them successfully can become quite a challenge, and that the bigger job is in the evaluation of strategy making and strategy implementation. This simply demonstrates that the whole planning process itself is an important value-adding element that organizations cannot ignore. Through all these, the different leaders of an organization - its executives, supervisors, and managers - are able to think in a systems perspective that focuses intently on being able to develop strategies in a timely manner through a review and analysis of different hypotheses as a way of practicing intelligent opportunism.

About the Author:

No comments: