Strategic Thinking
Strategic thinking is a mental or thinking process applied by an individual in the context of achieving a goal or set of goals. As a cognitive activity, it produces thought.
Understanding Strategic Thinking
This thinking is about planning for what might happen (either it’s good or bad), like protecting against threats and taking advantage of opportunities. To do this, leaders have to understand what's going on in different aspects.
Do some research, be critical, be creative, solve problems, communicate as well as possible and be confident when you make decisions.
Business leaders and others use it to figure out what products to sell, which markets to focus on (or avoid), and how to use their time, people and money wisely.
What are the Components of Strategic Thinking?
In these types of topics it is not as simple as following a guide once, it is something that takes time and decisions that you must make consciously. These points are great to keep in mind:
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Vision: It’s key to know where you want to go. Without having a vision, it is like taking steps while blindfolded.
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Analysis: Get information, analyze it and check trends to understand the actual situation. This helps leaders make informed decisions about what steps to take next.
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Creativity: Try to think outside the box and come up with innovative solutions to problems. Creativity lets the leaders see options that others might not see.
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Flexibility: Plans rarely go exactly as expected. Strategic thinkers are adaptable and open to change. They can adjust their strategies on the fly to respond to unexpected challenges or opportunities.
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Long-term Focus: It's important to deal with immediate issues, but also keep eyes on the future. Strategic leaders consider how their current decisions will impact in the future.
How to Improve Strategic Thinking Skills
Most things are skills we can practice and train. This is one of them, here are some ideas to improve your strategic thinking:
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Reflective Thinking: Take some time to reflect on the decisions you've made and what ended up happening. "What worked well?", "What could have been done differently?" This will help you learn from the experience. Not only with yourself, but talk about it with your team and see what that decision seemed to them and how it has affected them.
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Perspectives: Try to talk to people with different ideas. They can offer fresh insights and challenge your assumptions, helping you see problems from new angles. Something important to know: everyone has an opinion but not everyone has an insight. An insight comes from experience, not something you’ve seen, heard or read about.
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Information: Read, go to conferences or workshops and keep yourself updated with what’s trendy. The more knowledge you have, the more tools you'll have.
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"What-If" Games: Imagine different situations and analyze how you would respond and react to them. This helps you anticipate the things that may happen and make a plan for it.
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Innovation: Promote creativity and experimentation with your team. Ask them to take risks and think outside the box. The best way to know how things work is to try and make mistakes!
Real Life Examples and How to Apply Strategic Thinking
We want to show you some real life problems or situations that may be common to happen and how you can use strategic thinking to face them:
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Market Competition: At first yes, you would get angry about the competition. But after two minutes, do an analysis of the strengths and weaknesses of your company. You could end up creating a unique product/service that differentiates you from the competition.
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Product Development: When launching a new product, you can consider not only the current market demand but also future trends. Try to invest in research and development to create a product that solves new future needs and can be timeless.
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Crisis Management: Imagine a natural disaster or a public relations issue, the best way is to remain calm and focused. Face the situation, take action and try to minimize the damages as much as possible.
Conclusion
Strategic thinking is not just a skill, it's a mindset. By understanding the key points and applying them in different contexts, leaders can know which steps to take. Don't burn yourself trying to prevent everything that could happen, thinking strategically is also about facing problems once they arise. We are human, we cannot foresee everything, but we can decide how we act now.