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Why leaders don’t engage in strategic thinking

Published 9 January 2025 in Leadership • 8 min read

Strategic thinking is widely acknowledged as a critical leadership capability, yet many executives struggle to consistently prioritize it.

Given the acceleration of change and mounting complexity in today’s business environment, the ability to sense and respond to emerging threats and opportunities has become essential to organizational survival. As Peter Drucker expressed it, “In times of turbulence, the first task of management is to make sure of the institution’s capacity for survival.” Despite this clear imperative, leaders often fail to devote the effort necessary to think strategically, let alone work on building their strategic capabilities.

“I don’t have time,” “It’s too theoretical,” and “My industry changes too fast” are common excuses leaders give for not engaging in strategic thinking. These justifications reflect a fundamental misunderstanding of the value and purpose of strategic leadership amid the intense day-to-day pressures of running a business. If you identify with any of these explanations, you’re not alone. However, it’s not too late to embrace the development of this critical capability – one that may well determine your organization’s long-term success or failure.

Excuse #1: ‘I am too busy running the business to think strategically.’

This statement reflects a pervasive tendency to prioritize operational execution over strategic thinking. Leaders trapped in this mindset become reactive problem-solvers, not proactive anticipators. The good news is that breaking this pattern doesn’t require drastic overhauls. Strategic thinking and guiding daily operations don’t have to be mutually exclusive activities.

The key is to focus on incremental improvement. Busy leaders can gradually build a strategically oriented leadership style by adopting micro-changes. It’s often less about finding more time and more about utilizing existing time differently. Dedicating just 15 minutes daily to reading industry trend reports, integrating a ‘future trends’ segment into existing reports, or prompting discussions with your team focused on “what if” scenarios – these incremental, consistent investments train your focus toward anticipation. You gain foresight not through dramatic gestures but by making space for strategy to become part of the normal ‘thought landscape’ of your role.

“History offers an endless supply of once-dominant businesses brought to their knees by surprise events, proving that past success alone doesn't create immunity.”

Excuse #2: ‘We’ve gotten by fine without much formal strategy.’

Complacency can be a leader’s greatest enemy. Yes, it’s comfortable when past methods still generate success – it creates an illusion of security and perpetuates a reliance on what’s familiar. However, this perspective reveals a fundamental misunderstanding of the world of business. The marketplace is in constant flux, and disruption is inevitable. Hidden disruptive forces in your industry could come from evolving consumer preferences, new technologies, or shifting demographics.

Leaders trapped by complacency become dangerously reactive. History offers an endless supply of once-dominant businesses brought to their knees by surprise events, proving that past success alone doesn’t create immunity. When sudden turbulence hits, those who’ve only played defense, never truly strategizing, will find themselves outmaneuvered by more agile companies who’ve prepared for a broader range of potential futures. Don’t wait for threats to appear; learn to anticipate them. Shift your thinking from “What if we need to change?” to “What changes should we be driving?” and strategically position your business to surf waves of disruption to your advantage.

Excuse #3: ‘Our industry changes too quickly.’

This represents the other extreme from the previous excuse. It shows a leader engaged in dangerously reactive decision-making, feeling at the mercy of rapid changes. Leaders in quickly shifting markets sometimes use this as an excuse to avoid strategizing altogether. This mindset reflects a crucial misunderstanding of the purpose of strategic thinking. It’s not about creating a crystal ball; it’s about developing the capability to respond to inevitable changes. This approach shifts the perspective from enduring change to recognizing how to use it proactively.

The solution lies in adopting a flexible approach for the future. Scenario planning should be a regular practice for leadership. Instead of trying to predict the single most likely future scenario, envision several distinct possible futures. Consider disruptions that may arise from emerging technologies, shifting demographics, or changing environmental regulations. This isn’t a crystal ball exercise; it’s an exercise in imagination. Then, crucially, outline potential responses for each plausible future. Having these contingencies prepared offers an immense advantage. Even if a predicted scenario never happens, the practice of proactive response fosters organizational agility and proactive problem-solving.

Rather than viewing it as a reflection of who you are, think of strategic thinking as a toolkit of learnable skills and practices, similar to managing budgets or public speaking.

Excuse #4: ‘Strategic thinking is too theoretical.’

This excuse shows a preference for action over reflection. Impatience with anything non-tangible undermines success. Many leaders instinctively focus on visible, measurable outcomes, a tendency heightened by constant pressures for immediate results. This urge to “just do” makes the analysis phase seem like a waste of time.

However, effective execution requires more than this. Leaders must learn to balance their tendencies to act with thoughtful information gathering. Dedicating time to analyzing relevant data – such as external trends, competitive analysis, and internal strengths and weaknesses – is not navel-gazing; it forms the foundation of informed action. It’s like preparing materials for a project. Strategizing makes your actions smarter and more focused and reduces the potential for backtracking due to unforeseen obstacles.

Excuse #5: ‘Strategic thinking is for the creative types.’

Beneath this statement lies a common misconception that strategic thinking is an innate trait only a select few possess. This misconception often masks discomfort with dealing with complexity and uncertainty. It can create a powerful sense of self-doubt for those who don’t naturally gravitate towards abstract concepts or open-ended possibilities, making them resistant to developing their strategic abilities.

The key is to reframe your understanding of strategic thinking. Demystify it; it’s not an abstract art form grasped only by an elite few. Rather than viewing it as a reflection of who you are, think of strategic thinking as a toolkit of learnable skills and practices, similar to managing budgets or public speaking. By seeking structured knowledge, you can transform it from a mystery into a skill set. There are frameworks and methodologies for all core components of strategic thinking. Focus on learning resources for scenario planning, trend analysis, and tools that improve decision-making under uncertainty. Knowledge combats insecurity. When leaders recognize the structure behind strategic thinking, their mindset shifts from “I can’t” to “I need to learn how.”

Small and consistent efforts are often more manageable for busy leaders than the concept of massive systemic change

Excuse #6: ‘If I try, I will just expose how much I don’t know.’

This excuse highlights a common anxiety among leaders: the fear of not being perceived as having all the answers. This desire to appear consistently competent can hinder a leader’s strategic growth, leading them to avoid situations where their knowledge gaps might be exposed.

The irony is that the best strategists excel when facing the unknown. Strategic thinking requires embracing uncertainty. Instead of viewing a knowledge gap as a personal failure, shift your focus to the vast world of information yet to be uncovered. Leaders need to model the behavior they want to see in strategic planning – demonstrating genuine curiosity about what they don’t know and actively working to find those answers. A statement like “We might need to research this a bit more,” spoken by a leader, is a powerful statement in cultures that often hide gaps. Encourage open information sharing across your organization, reward curiosity, and create collaborative spaces where seeking insights from colleagues on strategic questions is normalized and celebrated.

Getting started

The excuses mentioned above create obstacles, while actions enable us to overcome them. Small and consistent efforts are often more manageable for busy leaders than the concept of massive systemic change. Before diving into specific actions, take a moment to complete the strategic thinking readiness assessment at the end of this article, which will help you to identify your primary barriers and focus your attention on key areas.

Here are some concrete tactics for getting started:

Start small and smart. Schedule just 15 minutes of focused strategic thinking daily. It could be reviewing industry articles and trend reports or simply reflecting on an open-ended ‘what if’ question about the industry. Small doses add up.

Engage your team. Don’t think strategically in a vacuum. Introduce a discussion of ‘future trends’ into regular team meetings. Get diverse input on “What could change for us in two years?” Create brainstorming spaces where strategic discussion isn’t limited to your C-suite office.

Use support tools. Dedicate a whiteboard, shared digital document, or segment of a wall to capture emerging questions and possible responses. Seeing strategic thinking as an ongoing process makes it less daunting.

Engage in building capability. Attend a workshop, watch an online course, or listen to a few targeted podcasts related to scenario planning, risk analysis, or strategic innovation techniques. Learning new information builds capability and confidence.

Foster a culture of curiosity. Reward questions, acknowledge when you don’t have an immediate answer, and emphasize collaboratively seeking insights over always being the ‘source’ of answers. Let your team see vulnerability as a leadership strength in service of strategy.

In summary, strategic thinking is a fundamental leadership capability that separates transformative leaders from operators. It isn’t about predicting the future – it’s about being prepared for whatever the future brings. By acknowledging and moving past these common excuses, you can position yourself to develop this crucial skill set.

Strategic thinking readiness assessment

Instructions: Rate yourself on a scale from 1 to 5 for each statement:

  • 1 – Strongly disagree
  • 2 – Disagree
  • 3 – Neutral
  • 4 – Agree
  • 5 – Strongly agree
StatementRating (1-5)
I regularly set aside dedicated time for strategic thinking and planning 
I feel comfortable dealing with ambiguity and uncertainty in decision-making 
I actively seek out diverse perspectives when considering future scenarios 
I regularly read about trends and developments outside my immediate industry 
I can effectively balance daily operations with long-term strategic planning 
I’m confident in my ability to identify potential future challenges and opportunities 
I regularly engage my team in strategic discussions and planning 
I’m comfortable acknowledging what I don’t know and seeking input from others 
I have a clear process for turning strategic insights into action plans 
I regularly review and adjust my strategic assumptions and plans 
ScoreCategoryDescription
40-50Strategic thinking championYou excel at strategic thinking and are well-prepared for future challenges.
30-39Strategic thinking emergingYou show strong strategic thinking skills with room for further development.
20-29Strategic thinking developingYou’re building foundational skills and awareness; continued practice will strengthen your mindset.
10-19Strategic thinking beginningYou’re at the start of your strategic thinking journey; more focus and practice can enhance readiness.


Total Score: ___

Authors

Michael Watkins - IMD Professor

Michael D. Watkins

Professor of Leadership and Organizational Change at IMD

Michael D Watkins is Professor of Leadership and Organizational Change at IMD, and author of The First 90 Days, Master Your Next Move, Predictable Surprises, and 12 other books on leadership and negotiation. His book, The Six Disciplines of Strategic Thinking, explores how executives can learn to think strategically and lead their organizations into the future. A Thinkers 50-ranked management influencer and recognized expert in his field, his work features in HBR Guides and HBR’s 10 Must Reads on leadership, teams, strategic initiatives, and new managers. Over the past 20 years, he has used his First 90 Days® methodology to help leaders make successful transitions, both in his teaching at IMD, INSEAD, and Harvard Business School, where he gained his PhD in decision sciences, as well as through his private consultancy practice Genesis Advisers. At IMD, he directs the First 90 Days open program for leaders taking on challenging new roles and co-directs the Transition to Business Leadership (TBL) executive program for future enterprise leaders, as well as the Program for Executive Development.

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