Thinking strategically - why it doesn't have to be so difficult.

We overcomplicate strategy. Not only that, our recent conversation with a group of business leaders suggested they think strategy is challenging, not easy to understand at every level of the organisation, and often fills us with dread.

So, if our leaders find dealing with strategy difficult and complicated, what hope have we at getting our teams to buy-in to it? As an aside, have you ever tried to explain a strategy to an employee and quickly watched them glaze over?

From our experience in senior leadership we know that strategy doesn't have to be complicated. Thinking strategically is just the same.

In this article we examine how strategic thinking can be defined and effectively utilised in our business planning processes.

We simplify what strategic thinking is, bringing clarity and a focus that can help everyone in the organisation to think more strategically. Particularly new, first line and middle managers who may see strategy as belonging to senior leaders and executives.

We'll provide a definition that we believe helps define strategic thinking. Plus we examine how the mission, vision and values of our organisation lay the foundation for strategic thinking in daily business.

We encourage line managers to engage in thinking strategically and provide some supportive and effective tools for strategic thinking.

We also show the benefits to thinking strategically and how when we do it can reduce waste & inefficiency as well as engage and motivate the whole organisation.

Strategic Thinking defined. "Anticipating, planning, and making decisions with a focus on long-term success and adapting to changing circumstances.”

Our definition looks at four key areas.

Anticipation, planning, making decisions, adapting.

Now, of course, strategic thinking may mean something different to you, but for us we see these four stages as being a simple way to construct our thinking model. Remember this is the thinking behind the strategy, not the strategy itself.

As you'll see there are useful models we can adopt to help solidify and contextualise this thinking too. But perhaps the best place to start is here.

Strategic planning is as simple as this:

• Where are we now
• Where do we want to be
• How are we going to get there

And the drivers that underpin our strategic thinking are these.

• Our mission
• Our Vision
• Our Values

Mission

A question you may wish to ask at an early stage of your strategic thinking journey is 'how widely known is our mission?'

In a lot of organisations even senior leaders may struggle to recite the whole of the mission. Especially if it is wordy and has different components. A complicated or non-easily recalled mission isn't a good start.

Your mission is your 'why'. Why does your organisation exist? It should directing the daily activities and decisions of your team. From your mission you grow identity and define the impact you want the organisation to make.

Tip: Consider revising your mission if it is over complicated - doing so may help others think more strategically if they can associate with the mission.

Vision

Then do the same with your vision. This is where you want to be. Your vision should be a compelling picture of where your organisation is aiming to be in the long term. A well thought through vision statement will inspire and align your team toward a common goal. It goes beyond products or services, describing the broader impact and contribution your organisation is seeking to make.

Tip: Keep your vision clear, make it compelling, use it in daily business to help embed everyone's understanding of what you want to achieve or deliver.

Values

How do you want to behave with your employees? How do you want your employees to behave with each other, with your clients or customers and suppliers. What are the principles and ethical standards your organisation holds most dearly?

Our values and our conversations shape the culture of our organisations. Our values should cement our commitment to integrity and to delivering our mission.

Tip: Don't create a set of values that meet a pneumonic that is easy to remember, unless they actually do. Doing so just means you've focussed on buzz words rather than depth of meaning.

Think of a business challenge you are dealing with right now. Something that if you could solve it would make a substantial difference to you and your organisation. We are now going to re-frame your thinking of that problem so that you get a fresh perspective on what is going on.

Strategic Thinking Stage One - ANTICIPATE

Learn to think ahead. Not just plan ahead, that bit comes next. Learn to think ahead. Be observant to what is going on around you that may affect you, your organisation, your team.

Look for the potential challenges that you may face. Then use a model such as PESTELO to organise your thinking. We know from working with clients over the years that this tool provides plenty of 'ah-ha' moments! No, not the pop band type, although you may be hunting high & low for answers if you don't use it!

Strategic Thinking Stage Two - PLAN

Planned thinking is very deliberate. Thinking through your plan and future strategy is vital. An ill thought out plan can cause harm for years ahead.

Having gone through the PESTELO model as you confront a particular challenge you have the basis for assessing what might be needed against how well your organisation is equipped to respond and succeed in delivering a solution to your challenge.

Start to consider things like, the internal resources and capabilities that give you a competitive advantage in the market or can contribute to your success. In what areas do you excel compared to your competitors and how can you leverage these strengths.

Think about how not collaborating on the problem in hand or between departments and teams may hinder the response you provide to your challenge. Consider whether there are skills gaps or resource limitations within your team / business that you need to overcome to enhance your response to the challenge.

Think about emerging technologies that could significantly change customer behaviour.

For example being in a science based industry - imagine the impact that embedded micro-chips may have in human beings. Think about how much data could be obtained from and about us that could actually eliminate some businesses altogether! So how can your organisation capitalise on changing technology?

We all know internal politics can derail the best of organisations, so where are those risks for you. Are there regulatory changes, economic uncertainty that you need to be vigilant about when planning your response?

Strategic Thinking Stage Three & Four - DECIDE & ACT

The next stages are closely linked - why because this is where your thinking extends into doing and acting, as well as having options and contingency thoughts and plans.

Decision making can be a curse when thinking strategically. If we don't have a model for decision making we can end up with a confusion of choices, levels of unqualified risk and a multitude of uncoordinated outcomes to consider.

And having done some planning as we've thought our way through, we find that no plan ever survives first contact with the enemy. So what do we do next. Policing command has created a thorough model for decision making. Enabling even the most challenging of circumstances and decisions to be fully rationalised. Adapted for business it gives executives and business leaders a real advantage.

By going through the PESTELO & SWOT analysis you are now a long way down the strategic thinking road. You have lots of valuable information and knowledge to inform your decision making process.

Defining your outcomes and risks can also be established. Your preferred, acceptable and unacceptable outcome can inform how much risk you are prepared to take and experience.

Next examine and assess the legal and policy obligations relevant to your organisation and the decision-making process. Are you constrained by a quality process or an ISO standard for example. When you have this knowledge you can lay out your options and alternatives. Explore and evaluate different options and alternatives that will help you address risks and achieve desired outcomes.

But the clever bit is this

Every time you assess new information, review your outcomes or check your options, think straight back to the start. Leverage your values.

Ensure your decision making goes straight back to your mission, vision and values. If it doesn't align its the clearest indicator that your decision may not be right. Put your mission, vision and values at the centre of everything you do and all of a sudden you are now thinking and acting strategically. And, to top it off, you have a strong model for making those rationalised decisions.

In summary

Strategic thinking is not complicated.

Where are you now, where do you want to be, how are you going to get there?

Your mission, vision and values drive all strategic thinking.

To build strategic thinking we Anticipate, Plan, Decide, Adapt.

To Anticipate we can use PESTELO.

To Plan we can use SWOT.

To Decide & Adapt we can use the IDEAL decision-making tool.

Finally your role as leaders is to take people from where they are, to where they haven’t yet been.

Or in the words of Rupert Sheldrake

"Strategic thinking requires the ability to contemplate possibilities that are not immediately present."

But ...it does help if you have some models and a process to help you achieve that!

We wish you well on your strategic thinking journey. We welcome your thoughts on this article - written by the way without AI.

And if you need a fresh perspective on the challenges in your business and would like to build a support network of expertise then look us up here www.thehelpbench.co.uk

You can always reach out to us at The Personal Development People Ltd to find out more about our strategic thinking workshop for leaders, just pop to www.develop-people.co.uk or connect with me here on LinkedIn.