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Strategy
Strategic thinking will keep you calm amid the chaosÂ
Published May 17, 2024 in Strategy • 7 min read • 
Audio available
Are you struggling to lead successfully in the face of relentless disruption and uncertainty? There has never been a better time to master the art of strategic thinking.
Supply chain nightmares, pandemics, policymaking uncertainty, climate change, geopolitical and social upheaval, and rapid technological innovation. These are just some of the unpredictable factors that executives must grapple with as they strive to make the best decisions for their companies, investors, employees, and society.Â
How leaders respond to these challenges defines the fate of their businesses. Those who manage to cut through the confusion give their organizations the best chance of surviving and thriving in an age of unprecedented turbulence. Those who fail to do so leave their ships at the mercy of the storm. Â
But how can you chart a clear and well-founded course when such chaos abounds? I believe there is a way to, at least, put yourself in with the best shot of success: strategic thinking. Thankfully, rather than the sacred domain of a chosen few visionaries, this is a capability that anyone can learn. Â
In my book, The Six Disciplines of Strategic Thinking: Leading Your Organization into the Future, I explore what constitutes strategic thinking, why executives need to adopt this approach to decision-making and leadership, and how to train to do so; how to communicate that approach and its outcomes effectively with their teams; and how to imbibe those teams with the ability to think strategically too. Â
What is strategic thinking?Â
Strategic thinking enables us to scan and assess the landscape to identify potential risks, threats, and opportunities. Based on this assessment, it allows us to figure out what is important and what is not, and, from there, to inspire our organizations to envision and execute the most promising ways of navigating and solving present challenges to thrive in the future. Â
Just as the world around us is not linear, strategic thinking is not a linear process. It’s continuous and cyclical. In revolving through the process in this way, you give your organization the best shot at staying one step ahead of the competition. I call this process RPM: recognize, prioritize, and mobilize (see graphic below). Â
Through my research and work with diverse leaders and organizations across several decades, I have identified six disciplines required to drive different stages of the RPM process: pattern recognition, systems analysis, mental agility, structured problem-solving, visioning, and political savvy. We can break these down into two groups of three:
Recognize and prioritize
Pattern recognition. The ability to recognize existing and emerging trends by identifying underlying, and not always obvious, patterns and connecting the dots.
Systems analysis. This requires understanding the essentials of your organization and relevant external systems, such as regulation or markets – and how they all interact – so that you can make informed predictions.
Mental agility. Being able to respond to new information and rapidly evolving circumstances to turn disruption into an advantage, including changing course if required.
Mobilize
Structured problem-solving. Working with your team to systematically frame problems, develop options, and decide the best ways forward. Being systematic in framing and solving problems mitigates against “gut feelings” or biases in decision-making.
Visioning. The ability to imagine a future state for the organization that is both ambitious and achievable. Visioning in this way aligns and motivates your organization towards a shared destination.
Political savvy. This skill helps you mobilize people you don’t have authority over. By cultivating political savvy, you can build alliances, negotiate effectively, and navigate conflicts in ways that will propel your initiatives forward.
Leading in the age of AI
The artificial intelligence issue
AI is revolutionizing the world of business, at pace. How do executives guarantee this mass adoption benefits both their organizations and society? In Issue 13 of I by IMD, we explore how to lead effectively – and responsibly – in the age of AI.
Develop the six skills of strategic thinking
How can you learn to integrate these six skills into your decision-making? Like all new skills, this requires regularly exercising the muscles needed to make it happen. To help leaders develop their strategic thinking skills, I have developed a set of activities that you can integrate, as you see fit, into your daily work routine. This is no small undertaking and will require consistency and perseverance to reap the full benefits. Those who take this challenge seriously and invest the time will put themselves, their teams, and their organizations in the best position to navigate today’s significant challenges and create a competitive advantage.
1. News analysis (10 minutes)
Read or listen to the daily business news. This will keep you informed about trends and events, putting you in the best position to identify patterns and understand the implications.
2. Mindful reflection (5 minutes)
Take five minutes each day to practice mindfulness or meditation. This will clear your mind and improve your focus, enabling you to concentrate on the present and create a calm foundation for strategic thinking.
3. Scenario visualization (10 minutes)
Imagine a future business scenario. This will encourage and improve your proactive and creative thinking capabilities, allowing you to think about how various trends could shape the future and to anticipate different outcomes.
4. Problem-solving puzzles (5 minutes)
Tackle a diverse range of brainteasers, such as a daily chess problem, a word challenge, or a numerical puzzle like Sudoku. This will stimulate your analytical and creative problem-solving skills.
5. Strategic journaling (7 minutes)
Keep a strategic journal and write a short entry each day about a strategic idea or insight and potential responses to it. This will develop your ability to articulate your strategic thinking.
6. Short connection session (7 minutes)
Book some time in your calendar to discuss a strategic issue or insight with a colleague or mentor. This will strengthen your political savvy and broaden your horizons.
“Just as the world around us is not linear, strategic thinking is not a linear process. It’s continuous and cyclical.”
Three steps to foster strategic thinking in your teams
As you develop your own strategic thinking skills, it is vital to understand that it’s not enough just for you to become better at it. You need, in tandem, to build this capability in your team and across your organization.
There are three ways to put this train in motion: build the foundation, embed strategic discussions into your operating rhythms, and organize development experiences.
Build the foundation
First, find ways to promote curiosity among your team members and foster a team culture in which strategic dialogue is encouraged. It’s important here to give team members the authority to make decisions and to promote cross-functional collaboration.
Embed strategic decisions into your operating rhythms
Make a point of regularly discussing strategic topics and providing strategic feedback on initiatives and decisions. This will require scheduling time to discuss lessons learned, not just the strategic landscape or decision-making process.
Organize development experiences
How often does your organization run a strategic thinking or scenario planning workshop? Do you engage in strategic thinking mentorships? You can embed strategic thinking habits and skills into your teams through these kinds of structured, intentional learning journeys.
Over time, as you embed these activities and habits into your leadership and organizations, you will reap the benefits that strategic thinking offers – a basis for well-grounded, informed, and effective decision-making in turbulent times.
10 steps to communicate as a strategic thinker
While learning the skills of strategic thinking is crucial for effective leadership, it is equally important to be able to communicate as a strategic thinker as you seek to mobilize your team and organizations. Here are 10 ways to communicate:
1. Elevate your perspective
Don’t get lost in the detail. Speak to the bigger picture and vision.
2. Look forward
You must let your team know that you are aware of and have considered the risks and opportunities when you articulate decisions.
3. Anticipate impacts
Strategic thinkers assess and communicate the outcomes of their decisions, including both intended and unforeseen scenarios.
4. Join the dots
Strategic thinking involves making sense of a wide range of factors and trends, so make those connections when communicating decisions to show you are aware of all the angles.
5. Simplify the complicated
Distill complex issues down to their essence to show you are in control of the subject. Use simple framing, such as strategic pillars, to communicate your thinking.
6. Use analogies and metaphors
One way to make abstract or complex ideas relatable is to use analogies or metaphors as storytelling devices. This helps you connect with everyone in your organization in ways everyone can envision.
7. Stimulate strategic dialogue
Foster reflective questions about strategy with your teams. This can help improve ideas and encourage collaboration as part of a shared strategic mindset.
8. Show you are informed
Make it clear that you know what is going on, are well – and broadly – read, and have an eye across all relevant topics. This gives you authority and inspires confidence in your choices.
9. Practice strategic listening
As you stimulate conversations about strategic choices, show that you are listening by referencing input from colleagues. This encourages participation and demonstrates your aptitude for strategic thinking and effective leadership.
10. Seek feedback
Always ask for input related to strategic decisions and discussions to show you are focused on self-improvement and to empower your team.
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