When strategic thinking is truly engaged in, there is no box. Released from restraint, the manager is free to create new futures capable of reshaping the entire landscape of an industry.

hree factors - the commercialization of the PC in1982, trade globalization and the removal of the specter of Soviet domination - forever altered the traditional American business model. Newly formed companies can spring out of nowhere, change the rules and rapidly gain dominance within an industry. Consider the recent radical shifts in the $100 billion industrial distribution market. In only two years, through going public and a series of aggressive acquisitions, one small company made the transition from near zero to one billion in assets. How is this possible? The answer lies in the ability to think strategically.

Strategic Thinking

The term ‘strategy’ is derived from the Greek word ‘Strategos,’ meaning ‘general.’ Although originally a war time concept, it has come to mean a plan for the skillful conduct of a large field of operations towards the achievement of a known goal. Strategic thinking, therefore, is the process of reasoning that companies must apply during the decision-making process in order to find the ideal route to gaining a competitive advantage. According to Napoleon Hill, “That which you can conceive and believe, you can achieve.” The question is, “How is this skill developed among top management?” The answer lies in knowing and using specific tools to develop the capacity to craft unique ideas that are practical and applicable to specific business situations, and most importantly, to bring them to fruition. These include:

Training

A good starting point is enrolling in a formal course in strategic thinking. Such training assists managers in overcoming the intimidation of the status quo and in mapping out an expansion-oriented future. Other activities such as chess, basic computer programming techniques and manual building skills can also help to develop the strategic thinking ability.

2. Environmental stimulation

Just as creativity in writing can come to an impasse known as “writer’s block,” so too can managerial thinking faculties become stultified. To overcome this, it is essential for managers who are or want to be strategic thinkers to go out and see the world, walk around, stimulate their imagination and take part in anything that breaks the monotony of stagnation.

3. Look for generalists instead of experts

“Experts” are sometimes so locked into their chosen field that not only do they fail to see the forest for the trees, they don’t even notice the tree branch on which they’re sitting. In many cases, it is best to seek generalists who are well versed in a wide range of fields and have the vision to foresee opportunities that lie ahead.

4. Benchmarking

A good example of benchmarking application is visible in the Ford Motor Company. Upon noticing the high degree of customer satisfaction at Land’s End, Ford benchmarked the clothier’s operation, found what applied to Ford Motor Company’s specific situation and implemented those activities in its own organization. The mistake some others make, however, is too literal an application of the experience of others. Just because X is done in one company does not mean it will fit into another.

5. Elaboration

Even though genius ideas are formulated, there is no certainty they will prove out in the real world. Elaboration in the form of prototypes, models, testing, what-if and risk analysis must be conducted as a necessary of discovery stage in the strategic thinking process.

6. Role-playing

Sometimes executives are unable to view situations from the perspective of others. During corporate role playing, have individuals act out situations from the viewpoint of the CEO and then by each principal executive. In that way long-term functional rivalries can be lessened or eradicated.

7. Work backwards from the goal.

Most people start with the immediate problems and get bogged down in them. Instead, focus the attention on the distant goal. Like a landmark in unfamiliar territory, working backwards from the goal guides the individual through the maze of momentary flaps and distractions, towards the right path.

8. Tossing grenades

If the entire planning process bogs down, it can often be helpful to engage in grenade tossing. This involves shaking up the fixed ideas of others and get-ting them to understand the contradictions or see situations from a new viewpoint.

9. Create an environment that fosters learning from failure.

Everyone knows that Edison invented the light bulb. What isn’t well known, however, is that success came with his 204th version. How did he look upon the other 203 attempts? Napoleon Hill learned from him when he said, “Every adversity, every failure and every heartache carries within it the seed of an equivalent or a greater benefit.”

Strategic Thinking in the Real World

Strategic thinking is one of the contributing factors to the growth of Banta Corporation of Menasha, WI, a firm specializing in printing and digital imaging. Banta’s revenue has risen from $475 million in 1994 to$1.3 billion last year, while maintaining a profitable operation. “For several years, we have trained managers annually in the strategic planning process,” says Dennis Meyer, Vice President of Marketing and Planning. “Now that our executives are grooved in, Strategy International assists us with strategic planning facilitation, where each team is taken through the steps from assessment all the way to implementation. This makes our executives more focused and really helps them to allocate resources wisely.”

What Box? World-conquering opportunities and deadly threats alike often sit just over the horizon, yet are missed even by brilliant minds. Xerox, for example, lets lip the mouse-driven computer that Apple, and now Windows, have taken to the world. And the American machine tools industry is only now getting back on its feet after being blind-sided by the Japanese who better understood that he who controlled the lines of distribution, dominated the market.

To survive, therefore, businesses can no longer rely on traditional modes of operation. They must learn strategic thinking to fully capitalize on market opportunities. This goes much further, however, than merely thinking “outside of the box.” When strategic thinking is truly engaged in, there is no box. Released from restraint, the manager is free to create new futures capable of reshaping the entire landscape of an industry.

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Think Strategically and Act Decisively

"We have a strategic plan in place. Are you telling me the plan isn't enough?" Unfortunately, yes; having (often painfully) established a strategic plan is commendable, but it is not the end of the story. You can only reach the plan's stated objectives through careful management and implementation of the plan itself. Strategy is not contained in the plan; it is an ongoing process that entails effort and innovation.

And thinking strategically shouldn't be the unique privilege of the strategic planning "team." Every decision made by each member of your organization ultimately affects the strategic plan—and the bottom line. Strategy must be a constant and ubiquitous priority.

 

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