The more we read about business, the more we hear about strategy, strategic planning and the strategic thinking that we need to get our businesses to where we want them to be. Clearly, the idea of being strategic essentially viewing the evolution of your business over the long term is a practical one. Not so clear, though, is exactly what strategic business thinking is. Thinking strategically is similar to thinking scientifically the central activities of both are the generation of hypotheses, and the testing of those hypotheses. In simple terms, strategic business thinking means asking the creative question, "What if?", as well as the practical question, "if …, then …?". Strategic business thinking allows relevant data to be included in the analysis of the potential outcomes and financial impacts of a proposed plan of action.
One of the benefits of strategic business thinking is that it requires managers to think beyond their own realms of responsibility. They learn to appreciate the connection between their roles and the operation of the broader organization. In the process, they develop a greater sense of the interdependencies between the various functions and the roles of their peers with their own.
Strategic business thinking assumes a future that can only be defined in general terms. A shape or direction can be defined, but the specifics will continually evolve as the business environment changes over time. Therefore, those closest to the front line are able to contribute critical information that is vital to the development of long-term strategy. The concept challenges the traditional top-down planning process by requiring involvement at many levels of the organization.
Thinking strategically requires a re-thinking of how we develop our business strategies, how we share information and with whom. In the past, information was shared on a "need to know" basis, so mid level managers and their employees often did not understand why they were doing what they were asked to do. The ability to think strategically was once only valued in executives. Now it is important for managers and employees at many different levels to possess this capability, so they can make a valuable contribution to the strategic business planning process and ultimately the long-term evolution of the company.
One of the benefits of strategic business thinking is that it requires managers to think beyond their own realms of responsibility. They learn to appreciate the connection between their roles and the operation of the broader organization. In the process, they develop a greater sense of the interdependencies between the various functions and the roles of their peers with their own.
Strategic business thinking assumes a future that can only be defined in general terms. A shape or direction can be defined, but the specifics will continually evolve as the business environment changes over time. Therefore, those closest to the front line are able to contribute critical information that is vital to the development of long-term strategy. The concept challenges the traditional top-down planning process by requiring involvement at many levels of the organization.
Thinking strategically requires a re-thinking of how we develop our business strategies, how we share information and with whom. In the past, information was shared on a "need to know" basis, so mid level managers and their employees often did not understand why they were doing what they were asked to do. The ability to think strategically was once only valued in executives. Now it is important for managers and employees at many different levels to possess this capability, so they can make a valuable contribution to the strategic business planning process and ultimately the long-term evolution of the company.
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