How can strategic thinking help you anticipate and respond to changes in the business environment?
Strategic thinking is a valuable skill for senior stakeholders who need to navigate the complex and dynamic business environment. It involves looking beyond the immediate tasks and goals, and considering the bigger picture, the long-term vision, and the potential scenarios and risks. In this article, you will learn how strategic thinking can help you anticipate and respond to changes in the business environment, and how to develop and apply this skill in your role.
Strategic thinking is the ability to think critically, creatively, and holistically about the future direction and outcomes of your organization, team, or project. It means identifying the key drivers, opportunities, and challenges that affect your situation, and evaluating the possible implications and alternatives. Strategic thinking also involves aligning your actions and decisions with your vision and values, and communicating them effectively to others.
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Becky Smith
Serial Entrepreneur
Strategic thinking is not something that magically happens after you have been in management a few years. You can learn 2 of the key "thinkings" one needs to master: Systems Thinking & Critical Thinking. Strategy is not just for the boomers in suits.
Strategic thinking is important because it helps you adapt to the changing business environment, which can be influenced by factors such as technology, competition, customer needs, regulations, and social trends. By thinking strategically, you can anticipate and prepare for these changes, and seize the opportunities they create. Strategic thinking also helps you avoid being reactive or short-sighted, and instead focus on the long-term value and impact of your work.
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Becky Smith
Serial Entrepreneur
You will not be as competitive in your market if you do not hone your strategic thinking skills. Remember, we're talking here about Strategic THINKING, not Stragegic PLANNING. In the words of Wayne Gretzky, "...skate to where the puck will be." Think about it.
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Developing strategic thinking skills requires practice and feedback. You can start by expanding your knowledge and perspective, by reading, researching, and learning from different sources and disciplines. You can also seek diverse opinions and insights, by engaging with people from different backgrounds, roles, and functions. You can also challenge your own assumptions and biases, by asking yourself questions such as: What if? Why? How? What else? Another way to develop strategic thinking skills is to use frameworks and tools, such as SWOT analysis, scenario planning, or vision statements, to structure your thoughts and ideas.
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Becky Smith
Serial Entrepreneur
Try this exercise: Think about the ecosystem in which your firm competes. Then think about your firm's end-to-end product or service line delivery processes. Can you draw how your firm operates so that your grandmother understands where you "play"? Now think about the value added by each of the departments, processes or service lines you drew. Last, run through these questions: 1. Which ones add the most strategic value (perhaps look at each as a pyramid with 3 layers: People at the base, technology in the middle and Processes at the apex)? Is its value in people, technology or process? 2.Why do they add strategic value? 3. How do they add strategic value? That's enough thinking for now.
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Applying strategic thinking in your role means using it to guide your actions and decisions, as well as influencing others. Start by setting clear and realistic goals that align with your vision and values, and that are measurable and achievable. It is also important to identify and prioritize key stakeholders who can support or hinder your goals, while understanding their needs, expectations, and motivations. Developing a plan that outlines the steps, resources, and timelines required to achieve your goals is essential, taking into account potential risks and contingencies. Moreover, it is important to monitor and evaluate your progress and performance, making adjustments based on the feedback and data you receive. Finally, communicate your vision, goals, and plan to your stakeholders, soliciting their input and feedback as well as their buy-in and commitment.
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Becky Smith
Serial Entrepreneur
Make a flywheel: Strategy Execution Data Strategy drives Execution Execution produces Data Data informs Strategy If you know your strategic goals then you select what are the most effective processes to execute to attain them? Now find data sources that inform decision makers and that could improve performance. You will use data for decision support. What is the result you seek? How will you know you have attained it? What processes will you execute to attain it? How will you measure the processes to know they are performing as needed? When will you know if it's time to make changes? How will you make them? Who will decide to make them? Who will make the changes? Who are the process owners? Who are the process participants?
Demonstrating strategic thinking in your career means you can think beyond your current role and responsibilities, and contribute to the overall success of your organization, team, or project. To do this, seek opportunities that challenge you to think strategically, such as leading or participating in cross-functional projects. Show initiative and proactivity by suggesting solutions to problems or improvements that can add value. Share your insights and perspectives by providing constructive feedback or presenting your findings. Additionally, build relationships by networking, collaborating, and influencing with people from different levels, functions, and backgrounds. Strategic thinking is a skill that enables you to anticipate and respond to changes in the business environment, creating a positive impact and competitive advantage for yourself and your organization.
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Becky Smith
Serial Entrepreneur
Drumroll please, first do some strategic thinking about how you can/will demonstrate strategic thinking in your current job. Soooo meta. You can use the flywheel on yourself for this: Strategy (to demonstrate strategic thinking). Execution/Tactics (to be used to put the strategy into action Data/Metrics (to ensure that the tactics implemented are tracked and to measure how successful your execution has been against strategic thinking goals). Good strategic thinking requires an understanding of the bigger picture broader objectives. a comprehensive approach, know how decisions affect others. input, build consensus & ensure everyone is on board. Finally, consider potential risks and plan for contingencies.
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