SUCCESS IN BUSINESS SERIES: Strategic Thinking

1. Introduction

In the past few months, we have been writing a series of articles all of which have been focused on how to achieve success in the business circles. We specifically touched on competitive advantage and how to achieve it under the article titled ‘Crafting Business Strategy’. In case you missed it, please find it here.

In this article we want to go a step further and discuss how businesses that have already attained competitive advantage can sustain it. Read on…

1.1. What Is Strategic Thinking and how does it help an organization to sustain competitive advantage?

Whereas many organizations will have a strategic plan or even a strategic planning process, it is organizations that adopt strategic thinking as part of their DNA that continuously outperform their peers. Strategic thinking enables us to perceive and process changes in the world around us in a manner that leads us to deduce cause and effect especially of a medium- or long-term nature in our organizations, and then respond by initiating conversations about appropriate responses for sustained viability.?

So, let's define this term Strategic Thinking. Strategic thinking is an intentional and rational thought process that focuses on the analysis of critical factors and variables that will influence the long-term success of a business, a team, or an individual. Strategic thinking is a mindset of anticipating changes and having plans in place to deal with them. It involves seeing the big picture, planning and putting thoughts into action. It includes careful and deliberate anticipation of threats and vulnerabilities to guard against and opportunities to pursue. This kind of thinking requires research, analytical thinking, innovation, problem-solving skills, communication and leadership skills, and decisiveness. At the heart of strategic thinking is the ability to anticipate major shifts in the competitive marketplace and identify emerging opportunities. When practiced consistently across time and across the organization, we can attribute to that organization strategic thinking as a key cultural attribute, or more simply put, a ‘culture of strategic thinking’.

Businesses adept with proficient thinking are more alert on the competitive landscape and its vulnerability hence they are better prepared on how to counter any emerging changes to avoid losing their place in the market.

Strategic thinkers know that new market trends are always emerging hence they are always on the lookout so that they can understand them, adopt them and run with them early enough before their competitors. This helps them stay ahead and maintain their position in the market.

Strategic thinking helps business leaders gauge when they should introduce tactics that will help attack their key competitors.

Companies proficient in strategic thinking are continually evaluating their businesses' strengths and weaknesses versus those of their key competitors to know in what area they need to make improvements which helps them ensure there are no loopholes through which their competitors can take up their place.

With strategic thinking, comes innovation in all business aspects, which helps organizations to constantly improve their product offering and customer service, hence sustaining their competitive advantage.

With time, businesses that have adopted strategic thinking as a culture, become more skilled at anticipating, forecasting, and capitalizing on opportunities which helps them stay ahead of their competition. Business leaders in such an environment are also able to remain alert and easily recognize new shifts in the market that can affect their revenue. And no matter how fine the changes may seem, they are then able to devise ways through which they can counter this.

Such companies also continually invest heavily in human capital which in turn sees their long-term success skyrocket.

What’s more, these companies do not solely depend on their periodic strategic plan. They are flexible and they employ strategic thinking throughout the year which helps them counter any threats from the market in good time while maximizing on opportunities promptly.

2. Incorporation of Strategic Thinking

How can you incorporate strategic thinking in your company so that you can sustain a competitive advantage? Below is a list of things to consider before taking this business-transforming step

If you do not already have one, start with a well-detailed strategic plan as it will help provide a clear direction for the entire organization.

Encourage proactive problem-solving in your business. This is achieved by regularly introducing activities that require strategic thinking from your team. With time, the positive habit of strategic thinking is developed and slowly becomes a way of life in the company.

Foster a collaborative culture. As an organization ensure that all members of your team are aware of the issues your organization is facing at a particular time, not only the top leadership. This helps in maximizing your solution thought pool, reducing barriers to participation, and increasing inclusivity. When employees have access to information relating to the organization’s goals, results, and challenges, they will be better placed to offer relevant solutions. It’s important to note that a solution can come from anyone, even the subordinate staff.

Institute a mentorship program for your managers. These are known to provide a means to cultivate an organization’s human resources skills. By connecting your managers with mentors who have a highly strategic way of thinking, your organization will be able to foster strategically - thinking managers who will, in turn, mentor juniors within the organization.

Lastly, recognize achievements and reward them. One way to promote strategic thinking is to show appreciation for managers and employees who display the behavior. Through recognition, strategic thinking behavior can be easily and positively reinforced increasing the likeliness of reoccurrence.

3. Characteristics of Companies Proficient in Strategic Thinking

By now you might be wondering what characteristics businesses that have adopted Strategic Thinking have. Listed below are just a few

1. They are innovative in the sense that they critically observe current market trends then they update or create new ones that provide better solutions to the market, and this secures their market position.
2. They anticipate unforeseen changes and how to deal with them early enough to avoid losing their position in the market.
3. They continually evaluate their strengths and weaknesses so they can detect areas that need their action.
4. They can accurately predict how competitors are likely to react to their business tactics
5. They view the business the way their customers see it which enables them to formulate market-friendly strategies.
6. They are able to know the best time and best means through which to counter their competitors
7. They react quickly to market changes enabling them to maximize on emerging opportunities while minimizing possible damages.
8. They understand the difference between strategic thinking vs. strategic planning and don't rely solely on their annual strategic plan to guide them, instead, they employ strategic thinking skills throughout the year.

At Stratex, we understand the business world well, having worked with different organizations across different industries. We know what works in what industry and what doesn’t. Incorporation of strategic thinking helps businesses position themselves for leadership in their sectors and higher returns on investment, by extension. Reach out to us today through email at [email protected], phone (0713 601 118), website, our LinkedIn page, or even through [email protected], and be our next success story.