Summary:
Although thinking strategically and planning strategically are two different concepts, they are quite interrelated and complementary. Planning strategically involves a systematic programming of pre-identified strategies and thinking strategically involves a more integrated perspective of the organization.
When thinking strategically, it is not the specific details of the future that is needed; instead, one must only have an idea of what the future will be. Additionally, through strategic thinking, executives, managers, and supervisors are able to understand that there is a link between change and strategy. This helps to understand that identifying new strategic options and then needing to implement them successfully can become quite a challenge.
Article Quote:
“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.”
Link: http://becomingwhoyouwanttobe.com/2010/03/a-closer-look-at-strategic-thinking/
Implementing strategy is often constrained by resistance to change within the organization. People are comfortable with what they know and the processes that are already in place. Shaking up the comfort level with a new direction for the company poses quite a challenge for leadership.
Leadership first needs to be committed to the plan if they expect others to get behind it. Next, delivery of the plan should include clearly defined objectives, broken down into actionable tasks that easily integrate into daily to-do’s. This allows individuals to not only understand the strategic goals, but also their part in bringing the plan to action, also increasing accountability.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
Summary:
Strategic planning is a process in which organizations define expectations of the future, identify resources that will be needed to ensure success, and take the necessary steps to achieve expectations. There is a myriad of methods used by organizations to determine their focus, direction and measures of success.
Strategic planning strives to answer the following questions, “Who are we?”; “Where are we going?” ; and “How we will get to where we are going?” By defining these questions, organizations leverage their focus and their resources, which leads to a greater chance of success in achieving both short and long term goals. However, the best strategic plan will fail if it is not worked into daily operations and measured for results.
Article Quote:
“Strategic thinking and business planning processes should help you create a clear sense of purpose, direction and focus for all stakeholders that is measurable, sustainable, requires involvement and drives the actions of everyone — yes, everyone — in the organization to achieve predetermined results.”
Link: http://ordsunshinepumpers.wordpress.com/2010/02/18/a-conversation-about-the-economy-strategic-planning/
There is a fourth question that needs be addressed when developing a strategic plan; “What kind of environment can we expect to encounter along the way?”
Both the internal and external environment needs to be analyzed with the use of scenario planning, to deal with these environmental factors. For example, is the internal atmosphere – the individuals in the organization – going to be resistant to the plan? Is there new processes being introduced that will cause change resistance or do some members in the organization feel the plan is fundamentally flawed and therefore will be hesitant in helping achieve results?
These questions and others need to be asked in the development process not only to identify possible conflicts, but also to have a plan in place if they are encountered.
Fore more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
Summary:
Strategic planning and strategic thinking are not the same. Strategic planning is a process of identifying goals and creating a path to reach those goals. By contrast, people who have the ability to think strategically can step outside their normal frame of reference and understand that it’s only one of many possible frames.
Executives often become too focused on the task of exceeding last quarter’s numbers, that they fail to see the broader landscape. For instance, in a four-week executive-education course, students were presented with this challenge using the example of Apple’s iPod — how did a small computer company with only a 5 percent share of the market come out with this revolutionary new product, while Sony Corp., which had all the components inside its organization to create the iPod, failed to do so? The answer: simply because Sony executives failed to see outside the box and instead stayed within their comfort zone.
Article Quote:
“Planning is, by definition, a sense that there’s a Point A and a Point Z, and simply a number of steps from point to point — it’s a linear process. Strategic thinking, by contrast, is a way of conceiving of a problem or challenge more holistically.”
Link: http://www.hreonline.com/HRE/story.jsp?storyId=330860356
When strategic thinking is fostered in an organization, people can more easily identify problems areas and circumvent them before they become giant headaches. Employees become more aware of the company goals, thus becoming more engaged in the execution of the strategic plan.
For more on strategic planning and execution, see http://www.performancesolutionstech.com/category/strategicplanning/
Summary:
The way to think strategically is to identify your important longer-term goals, then deploy your means – resources, capabilities, time and energy in order to achieve these objective that lead you like stepping-stones towards the desired result. You will notice that by setting these intermediate targets and objectives of goals signifies that you have moved beyond strategic thinking and into strategic planning.
With creative strategic thinking it is essential to draw upon the whole “collective wisdom” of the organization by utilizing the diversity of thoughts and ideas of your organization. This “collective wisdom” should not be confined to only those in operational or team leadership role.
Article Quote:
“Means can be seen as creative resources and capabilities, throwing us new ends. In creative strategic thinking of this kind, it is essential that members of an organization, not just those in senior leadership roles, can themselves think creatively and strategically.”
Link:http://www.offlinexfactorreview.com/creative-strategic-thinking-for-your-leadership-role/
When individuals begin thinking strategically, the entire organization benefits. Unfortunately, getting everyone in the organization to think strategically is a challenge that many in leadership avoid.
Enhancing the ability to think strategically involves overcoming the fear of failure, taking incremental steps, and making a commitment -setting a good example – so others will follow you. Furthermore, leadership should not wait for the ideal moment to execute the plan as that can lead to missed opportunity.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
Summary:
Tools like Web 2.0 have made it easier for businesses to gather input from a wide variety of stakeholders, effectively putting all management decisions up for a vote with customers and employees. Ideas from outsiders are great, but should not be a substitute for the experience and knowledge of strong leaders- especially when it comes to strategy. Businesses are not, and should not be democracies.
Strategists should use the tools available, however a strategist also needs to; a) Help anticipate the discontinuous change; b) Develop scenarios in advance so as to be prepared when change occurs; c) Help the company to become proactive in change and help bring about change in a fashion which disproportionately benefits your company. The general public lacks these skills because they generally have limited knowledge about the specific situation and their ideas are biased towards their limited perspective.
Article Quote:
“Suggestions from the masses tend to be extensions of what they know, which is the old business model. They are not very useful in proactively getting to the discontinuous new. And unfortunately, the discontinuous new is all around us. This is where professional strategists are most valuable.”
Link:http://planninga-from-nanninga.blogspot.com/2009/12/strategic-planning-analogy-301.html
The latest fancy new tools or trends should not be a replacement for Strategists. Strategists are necessary and many companies rely on their expert advise when developing their strategic plans. However, businesses should create an environment that fosters ’strategic thinking’ by everyone in the company because it adds value to the entire organization.
Tactical implementation of strategic plans are almost entirely executed by front-line people within the organization. Thus, getting everyone to start thinking strategically can better enable then to anticipate potential threats and obstacles before it reaches a critical point. It also makes your people better problem solvers and more responsive to changing customer needs.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/
Summary:
It is not an issue of strategic planning vs. strategic thinking, according to this author; it is a matter of doing both simultaneously. Previously, strategic plans forecasted 5-7 years into the future. Today’s strategic plans only look 2-3 years ahead. Furthermore, strategic plans were nicely packed into binders that sat collecting dust until the next planning meeting between leadership.
Strategic planning should be updated and regarded as a work in progress, not a static document that no one in the organization thinks about – that is until the next planning session.
Article Quote:
“The common sentiment—“you don’t plan to fail, you fail to plan” embodies the reasons behind a strategic plan. But Boards and management, who spend countless hours and dollars on a plan and then don’t continually use it, cannot say that “the plan on the shelf” is truly planning.”
Link: http://centerfornonprofitmanagement.blogspot.com/2009/12/strategic-planning-vs-strategic.html
The economic turmoil felt by organizations and the changing global business environment has changed the way we think of strategic planning. No longer can we create the plan only to “shelve” it until the next planning session. Today we really do need to “think strategically”, and not only at the leadership level. I recently read an article by Keith Coats titled “Back to the Future: Rethinking Strategy,“ in which he writes that a good strategic planning process is one that involves a wider group within the organization, a group of diverse individuals that can generate different perspectives, thoughts, and ideas.
While I agree that diversity provides fresh ideas and will most likely add value, it still doesn’t address the issue of getting the strategic plan into action – and off the shelf. To be successful at implementing any strategic plan, everyone in the organization needs to be working toward objectives on a daily basis. The use of performance technology puts the plan, projects, and goals in front of the eyes and minds of the group, providing a daily reminder of what needs to be done next.
For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/