By: Lindsay Angelo, Growth Strategist, Futurist, TEDx Speaker
Strategic thinking is an essential skill for any leader. It involves the ability to evaluate problems and opportunities and make good decisions that support your overall goals. It also involves thinking ahead, creating, and planning for the future.
Strategic thinking helps leaders make the right decisions and stay one step ahead of the competition.
What is Strategic Thinking?
Strategic thinking is the ability to evaluate problems and opportunities and make good decisions that support your overall goals (check out the video o the right).
So, why is Strategic Thinking Important?
Digital connectivity, a post-pandemic climate, AI, competition between digital giants—all of these factors mean that the environment we’re operating in is more complex than ever. With that comes a growing need to work through problems/opportunities effectively and in a way that will accomplish your goals.
This is where strategic thinking comes into play.
Ultimately, strategic thinking helps develop you why, what and how, in order to prosper in a competitive and dynamic landscape.
Strategic Thinking in Leadership
Strategic thinking is essential when it comes to leadership. All strategic leaders in an organization should be able to mobilize people, resources, and energy, and steer them towards a future vision. Let's explore strategic thinking in leadership further.
Elements of strategic thinking in leadership
Strategic thinking is not a single process. It's a collection of related thought tools. The following are key components of strategic thinking:
Strategic problem-solving
Core to strategic thinking is strategic problem-solving. It is the bread and butter of a great strategic thinker. Knowing how to apply top-down thinking or hypothesis-driven problem-solving is key. When creating a plan, you’ll inevitably come across challenges and opportunities, each of which requires creative problem-solving to work through.
Maneuvering facts and data
Strategic thinking often involves collecting and analyzing relevant inputs that support strategic decisions or strategic hypotheses. A good strategic thinker is part scientist, fact-finding, and maneuvering the world of data to inform their recommendations. Data and insights are your FUEL — check out this post for more.
Planning & foresight
Planning entails identifying your goals, key actions, and resources that will get you there, as well as foreseeing any challenges you may encounter along the way. As a strategic leader, planning also involves creative thinking, researching your market, and analyzing competitors to inform how to position your business for success.
Agility
You don’t know what you don’t know. Even well-thought-out plans often require adaptation and agility, particularly in the context of AI and a dynamic climate. A savvy strategic thinker can adapt to changing conditions and modify plans on a dime. The best way to do this is by building strategic agility into your culture and business.
Strategic story-telling
It's not enough to have the answer; you also need to be effective at communicating that narrative. Strategy and strategic problem-solving are only as good as your ability to articulate them.
How many times have you been halfway through a project and someone says, "Hey, how's that work going?" You have 10-15 seconds to communicate. What do you say? Top-down or strategic problem-solving can be a powerful storytelling tool for these exact moments.
Importance of Strategic Thinking for Leaders
Building your strategic thinking muscles is important to being able to effectively lead for several reasons:
Builds foresight
A strategic mindset trains you to look ahead. In a quickly changing landscape, foresight is one of the most important qualities of a strategic leader.
It shifts your mindset from responding or reacting to the future to creating it. See here for more info our foresight training.
Maximizes resources
The success of your business largely depends on how you manage resources, including finances, time, and labor. Strategic thinking teaches you the art of prioritizing and how to distribute resources wisely to maximize your chances of crushing your goals!
Opportunity spotting
The business world is dynamic, particularly in a digital, AI-enabled age. As a leader, keeping up can be challenging. Strategic thinking allows you to quickly assess problems, identify trends and opportunities, and run with those that make sense for your business.
Business survivability
Business challenges are part of leading a business. Considering unpredictable market conditions, these challenges can sometimes be overwhelming. Strategic thinking equips you with the critical skills to weather the toughest of storms, act with agility, and improve your business's survivability.
Operational efficiency
Another advantage of strategic thinking is improved operational efficiency. When you embrace strategic leadership, you can develop clear organizational objectives for your business, and a set of priorities and communicate with your staff efficiently.
This provides everyone with a complete picture of what they're working towards, improving operational efficiency and promoting a forward-thinking culture.
Increases profitability
Ultimately, a strategic mindset enables you to make better choices, improving your business's profitability. Strategic thinking helps businesses identify opportunities and risks. It also allows you to develop plans, capitalize on opportunities, and mitigate risks.
How Leaders can Improve their Strategic Thinking Skills
As a leader, you can improve your strategic thinking in several ways. Here are some tips:
Ask strategic questions
Perhaps strategy is one of the only fields where curiosity did not kill the cat—it made it! One way to improve your strategic thinking skills is by asking questions, questions that spark innovative solutions and provoke thinking amongst your team.
Curiosity is a key element of a great strategic thinker. Some interesting strategic prompts include: How can we establish ourselves in a new market?
Where are there unmet needs in the market that we can serve?
What are we uniquely qualified to deliver to our customers?
How are our customers shifting - behaviourally, psychologically, emotionally and what does this mean for our business?
How can we serve our customers and collective best in the next five years?
These questions can lead to breakthrough ideas and solutions. Want to dive in further? Check out our strategic thinking course.
Observe and reflect
Observing and reflecting is another essential method to improve your strategy skills as a leader. This helps you analyze your current situation with hindsight.
For example, you may notice that a best-selling product is losing popularity among your loyal customers. While it’s easy to come up with reasons as to why, they may or may not necessarily be true.
Instead of assuming, why not research? A strategic mindset allows you to look beyond these assumptions and assess the situation based on concrete information. Issues trees can support in this.
Consider opposing ideas
Business organizations comprise a variety of people with diverse skills and talents. As a strategic leader, always ask your team to provide their points of view. Diverse opinions don’t only lead to a better solution but create inclusion. As they say, debate is an organization’s way of thinking.
Learn to prioritize
For your strategic plans to actualize, prioritize ruthlessly! This can be one of the most challenging parts of the process, but it’s crucial to successful execution. Once you’ve crafted your execution plan, if it’s feeling like ALOT, that’s a telltale sign that you haven’t prioritized rigorously enough. Go back to the drawing board, and prioritize even further!
Embrace failure
You win some, you lose some. Failure is inevitable in business. Sometimes, the right playbook may not work as intended. It can be discouraging, but don’t give up. Instead, embrace failure and learn from it. After all, failure makes strong leaders.
Embrace formal training
Take a strategic thinking course to improve your skills quickly. Have a busy schedule? Enroll in a self-directed online course and go at your own pace. You can learn more about our self-directed option here.
Reflect and hindsight
Running a business doesn’t stop when you implement your business strategy. It requires continuous hindsight, testing, learning and practice. This will allow you to pivot accordingly. And if we’ve learned anything the past few years, it’s learning to pivot! Read more on strategic thinking exercises here.
Enroll In a Strategic Thinking Course Today
If you have big growth aspirations, a strategic mindset is essential in leadership. Some leaders are naturally born strategic thinkers, while others acquire the skill through learning.
If you’re looking to level up your strategic thinking skills, sign up for our online strategic thinking masterclass or download our free strategic problem-solving lead magnet today, and join the big leagues of strategic thinkers!
Read more about hypothesis driven thinking, strategic thinking, futures thinking, how to become a futurist, what is a futurist, and futurology.
Frequently Asked Questions (FAQs)
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Yes, this course is all delivered online virtually and is built for flexibility and with an interactive format. If you're a brand or an organization, a blended learning format is also available.
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No, strategic thinking is different from design thinking and design thinking methods. They are complementary to each other and are both practical tools.
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Yes, the data points to strategic thinking being a top skill amongst successful leaders. Not only will having a strategic thinking mindset help in work, but in life — it's a versatile skill that can be applied in many scenarios and to many a strategic opportunity!
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The fully online course takes roughly three hours to complete. We recommend a set of "sprints" — i.e. one hour per week for three weeks. That said, we designed the course to be self-led so you can go at whatever pace feels most comfortable.
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This course is for business leaders and industry leaders wanting to make big impact and build their corporate leadership through strategic thinking - from CEOs and founders to executive-level leaders like Senior Executives, Business Executives, Corporate Leaders, Senior Vice Presidents, Senior Leaders, Senior Managers, Managers, and individual contributors. This course serves a wide array of industries - retail, consumer products, technology, saas, health and wellness, finance...come one come all! We tailor to both individuals and organizations. Have a business unit, business function, or team? We tailor to you too!
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The course covers how to translate strategy and strategic direction into a road map of programs, projects, business models, and action plans. It covers how to allocate resources and where strategic planning intersects with financial budgeting, which is key to business success. It does not cover detailed project management.
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Check out Harvard Business Review, Harvard Business School Online. Harvard Business School Online has a host of resources as your disposal. You can also read more in this article.
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Critical thinking is essential for strategic leadership as it allows leaders to evaluate complex situations, identify potential problems, and develop effective solutions. It enhances a leader's ability to think independently and make informed decisions that support the organization's goals.
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Strategic thinking helps businesses gain a competitive advantage by enabling leaders to anticipate market changes, develop innovative strategies, and stay ahead of competitors. It involves analyzing market trends and creating strategies that position the business favorably.
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Scenario Planning is a strategic tool used to anticipate and prepare for various future possibilities. It helps business leaders to manage uncertainties and make better decisions by considering multiple future outcomes. This proactive approach aids in risk management and long-term planning.
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While conventional thinking often focuses on immediate tasks and current operations, strategic thinking involves looking at the bigger picture and planning for the future. It requires analytical thinking and a deep understanding of external environments to develop strategies that ensure long-term success.
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Effective strategic leaders need a range of business skills, including critical thinking skills, analytical thinking, and the ability to develop a strategic vision. These skills enable leaders to navigate complex situations, identify opportunities, and drive their organizations toward success.
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Strategic thinking is crucial for formulating a strategic vision as it involves understanding the organization's goals, analyzing the competitive landscape, and envisioning the future. Leaders use this process to create a compelling vision that guides the organization's strategic direction.
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The strategic planning process involves setting goals, identifying key actions, allocating resources, and developing a roadmap to achieve the desired outcomes. It includes evaluating potential solutions and market trends to ensure the strategy aligns with the organization's objectives.
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Leaders can improve their strategic thinking skills by engaging in scenario planning, seeking alternative perspectives, and continuously learning. Embracing a proactive approach to problem-solving and staying informed about industry trends also enhances their strategic capabilities.
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Strategic ideas are crucial for driving innovation and achieving business goals. They involve creative thinking and the ability to see beyond the obvious. Leaders who generate and implement strategic ideas can create new opportunities and maintain a competitive edge.
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Strategic thinking plays a significant role in risk management by helping leaders identify potential risks and develop strategies to mitigate them. By anticipating future challenges and preparing for various scenarios, leaders can protect their organizations from unexpected disruptions.
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Effective strategic leaders possess strong leadership skills, including the ability to inspire others, communicate a clear vision, and make data-driven decisions. They are adept at analyzing complex situations and developing strategies that align with the organization's long-term goals.
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Senior leadership can foster a strategic culture by encouraging continuous learning, promoting critical thinking, and supporting innovative ideas. By creating an environment where strategic thinking is valued, leaders can ensure their teams are equipped to handle future challenges.
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Strategic thinking significantly impacts future outcomes by enabling leaders to anticipate changes, develop effective strategies, and position their organizations for success. By looking ahead and planning proactively, leaders can create a sustainable competitive advantage and drive long-term growth. Looking for a Futurist Speaker? Get in touch!
About Lindsay
Lindsay provides growth and advisory services to purpose-driven brands. Named a global innovation leader and Women to Watch, you will find her at the intersection of strategy, story-telling, and innovation. When she’s not collaborating with clients, she’s hitting TEDx and other stages across North America to deliver keynotes on the future of consumerism, strategy, and innovation. Prior to advising and providing brand and marketing consulting services, Lindsay spent six years at lululemon crafting their global growth strategy, exploring new marketplace opportunities, and growing the company into the number one yoga wear player in the world. Her experiences culminate in what she refers to as her sweet spot - where strategy, innovation, and insights intersect, where the rational meets the emotive, where facts meet insights, and where logic meets creativity.
