Strategic Thinking Approaches: Tried and True Frameworks to Leverage

Strategic thinking frameworks offer a high-level overview of the steps involved in developing a business strategy. CMOE has helped organizations of all sizes effectively balance immediate needs with future opportunities by cultivating strategic thinking. Exploring a variety of approaches can help to accommodate diverse working styles and organizational needs.

We encourage you to learn the various approaches to strategic thinking in business to stay ahead of the curve and seize opportunities with creativity and efficiency.

Strategic Thinking Frameworks Worth Considering

The following are some common frameworks often referenced for strategic thinking. You can utilize these frameworks based on your need or fit to establish a baseline for a long-term winning strategy.

Mintzberg’s 5 Ps of Strategy

Mintzberg’s 5 Ps of Strategy is a framework that suggests strategy emerges from a combination of deliberate planning, emergent patterns, and external influences.

The 5 Ps are:

1. Plan: A deliberate course of action designed to achieve specific goals
2. Ploy: A tactic used to outmaneuver competitors
3. Pattern: A consistent pattern of behavior that emerges over time, reflecting the organization’s strategic direction
4. Position: The organization’s unique position in the market relative to its competitors
5. Perspective: The organization’s worldview and its approach to business

The ABCs of Strategic Thinking

The ABCs of strategic thinking aim to simplify the science of executing a strategy. Many strategic thinking frameworks have used the “ABC” format to make it easier to remember the key components of strategic thinking. For example, you can divide these ABCs among multiple individuals to achieve a goal:

• The Architect drives the design or roadmap that defines the strategy’s parameters. This encompasses translating desired results and communicating clear delivery milestones to fulfill those outcomes.
• The Banker quantifies the value the strategy will deliver based on the roadmap. They identify drivers and metrics to illustrate the value behind a product, service, or investment and use that information to optimize outcomes.
• The Conductor ensures communication channels are coordinated and the strategy is delivered. They oversee collaborative efforts and reduce friction to help keep the production on track. They also monitor results to ensure they adhere to quality standards.

The 3 A’s of Strategic Thinking

Rich Horwath developed the three A’s of strategic thinking to help business leaders improve their process of developing an advantageous strategy.

The three A’s are as follows:

1. Acumen: Acumen encourages leaders to analyze the insights they’ve gained about their business and leverage those insights to achieve objectives. Those who display acumen understand strategic thinking requires sharp awareness. They essentially tap into both the past and present to make informed decisions.
2. Allocation: Leaders must plan how to allocate resources to maximize business potential. This includes evaluating time, talent, and budget and making relevant adjustments to align these moving parts to achieve the strategic goal.
3. Action: Action involves staying committed to the strategic plan. This requires prioritization and accountability to ensure all parts and individuals involved are on track.

Strategic Thinking Tools to Inject the Right Focus into Your Framework

Leveraging the strategic tools below will help you gather information and make informed decisions within your strategic work. It will also allow you to connect daily actions to the organization’s long-term vision.

Behind each tool lie strategic thinking processes that encourage you to take time to reflect upon your current actions and future implications. These moments of self-reflection are critical to ensuring you spend time and effort in the right areas that move you toward your future vision and goals.

The Pillars of Strategic Thinking

The pillars of strategic thinking provide a framework for approaching strategic planning with a clear and structured methodology.

There are nine pillars:

• Analytical thinking: Organizing complex problems into smaller milestones
• Innovative thinking: Generating unique solutions to roadblocks, allowing organizations to differentiate themselves from competitors
• Critical thinking: Evaluating all available data and leaning on logic and intuition to make decisions
• Futuristic thinking: Envisioning and planning for the future by anticipating shifts and long-term trends
• Adaptive thinking: Revising tactics, goals, and strategies in response to shifting circumstances like a new competitor entering the market or the emergence of a trend
• Collaborative thinking: Working effectively together toward a common goal
• Ethical thinking: Considering the impact the strategic plan will have on stakeholders, society, and the environment
• Resilient thinking: Working through setbacks with determination while evaluating what to do differently in the future
• Reflective thinking: Reflecting upon the cultural, social, and economic context and making decisions accordingly

The 3 Phases of Strategic Thinking

The three phases of strategic thinking offer a systematic approach to decision-making related to strategy. These phases are:

1. Analysis: Analysis involves considering all details and information currently available to guide your decision-making. For example, you may analyze market trends, your team’s strengths and weaknesses, and the company’s financial position to determine strategic courses of action.
2. Decision: After analyzing the information, select the best solution and develop a comprehensive implementation plan. Assign clear tasks and deadlines, and establish KPIs to measure progress and success.
3. Execution: The final stage, execution, involves implementing the chosen strategy. This phase requires flexibility, as unforeseen challenges may arise as you execute strategic initiatives. By maintaining focus on the end goal, teams can successfully navigate obstacles and achieve desired outcomes.

The 5 Choices of Strategy

To help you and your team maximize the use of strategic thinking framework options, consider walking through the five choices of strategy. These key questions are intended to assist you in making strategic decisions.

1. What is our winning aspiration? Clarifying this enables you to stay rooted in the long-term vision and goal of your strategy. When you’re focused on daily, immediate tasks, taking time to step back and ensure smaller actions are tied to the big picture is critical.
2. Where do we play? In other words, where would you like to focus your goals, and where should you allocate precious resources? This may include specific target demographics, a mix of products/services, or distribution channels.
3. How do we win? This is about differentiating your brand from competitors, whether it involves providing new solutions to consumer problems or building distinctive, niche products.
4. What are our core capabilities? Identify your organization’s top strengths and assets to effectively execute your strategy. This may include leveraging unique processes or approaches or utilizing top talent in the areas they play best.
5. What are our management systems? Management systems encompass relevant metric/data software, internal communication, budget discussions, and more. The key is to establish systems that allow all parties to communicate consistently and keep track of progress.

Invest in Your Strategic Thinking Skills with CMOE

In today’s dynamic environment, strategic thinking is a necessity for organizations to not just survive, but thrive. By implementing the above approaches to strategic thinking, your team or organization can better position itself for future success.

For more insight on applying strategic thinking in your workplace, take advantage of CMOE’s Applied Strategic Thinking® workshop. This research-based, validated workshop empowers individuals at all levels to contribute their own strategic efforts. By equipping participants with practical skills and a proven framework, this workshop builds an organization-wide culture of strategic thinking, that drives innovation, adaptability, and long-term success.

Learn more about how our workshop, consulting services, and solutions can assist you and your team.