The best place to start this conversation is with a basic and simple definition of Strategic Thinking It is the Owners / CEOs VISION of what his or her company will look like in the future; it is the thought process that goes on in the head of that Owner / CEO and his key people; it is very much like Picture Painting, it is this picture that will drive the direction, nature and focus of the business. Put simply Strategic Thinking attempts to establish... WHAT the organization should look like while Strategic Planning focuses on the HOW to get there. In general it has been my observation that most companies can be loosely grouped into one of the below categories when it comes to the use of Strategic Thinking in there ongoing efforts to achieve operational and financial success. A) Companies that have developed a clear Strategic profile and detailed Strategy B) Companies that have been successful by managing ongoing operations; but are unable to clearly articulate their Strategy (where they are going and why) C) Companies with a clear strategy; but whose management has great difficulty in the implementation of that strategy D) Companies who do no strategic thinking or operational planning, or if they do, do so poorly Why then is this so, further analysis reveals the following Most people who lead and manage, get there through the operational ranks, good managers who made good operational decisions; however they have not typically acquired the skills necessary to set direction and to create a clear vision. Additionally, the need for management to think strategically surfaces only when a company starts going into markets that represent unfamiliar territory or out of their comfort zone. And finally, there is a tendency for companies that operate in a large market to pursue either growth or market share using operational means. WHAT TO DO vs. HOW TO DO YOU DECIDE In recent years there has been a greater effort placed on the HOW TO DO aspects of management, as evidenced by such things as Total Quality; Downsizing; Outsourcing, etc these management approaches are designed primarily to do differently what is already being done. While these have use and value the real challenge facing management today is the WHAT TO DO. The great majority of companies fall into category B or what has become know as the Christopher Columbus school of management that is : When he left he didnt know where he was going : When he got there he didnt know where he was : When he got back he couldnt tell where he had been. Strategic Thinking can be described as the type of thinking that attempts to establish what an company should look like; it extracts from the minds of people who run the business, what is there best thinking about; the business environment; the competition and all other variables that impact the long term success of the company. A WINNING STRATEGY SOME THOUGHTS / OBSERVATIONS The best strategy should foster an environment in which you have no competition. This can only be achieved buy creating and deploying a strategy that changes the rules of the game in your favor. You must out-think the competition, not outwork them. When everyone plays by the same rules no one wins, as evidenced by the state of the airline industry. Companies that make significant gains at a competitors expense are those who have found a way to tilt the playing field to their advantage. The essential difference between winners and losers is there continued ability to think strategically, to implement that strategy and to change the rules in their favor. Dare to think outside the box, dare to dream the unthinkable and pursue your vision with passion and persistence. |
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