To think strategically, you must examine the available data and determine how to deploy resources to achieve long-term goals and objectives. Moving from point A to B may require many steps or actions, which is why strategic thinking is split into three phases:
- Analysis
- Decision
- Execution
Using the three phases of strategic thinking (different from the pillars of strategic thinking) while planning creates more opportunities for team members to think strategically. Learn more about these three phases of strategic thinking with the examples provided here.
1. Analysis
Strategic thinkers consider all the information and resources available to make an informed decision. Standard subjects of analysis include:
- Market trends
- Company strengths and weaknesses
- Market opportunities
- Competitor actions
- Growth goals
- Financial performance
- Customer satisfaction
- Available resources
- Available materials
- Economic issues
- Technological developments
For example, an organization determines it has hit a customer satisfaction and product revenue plateau. A team is tasked with discovering solutions to this issue. They would then use their insights, data, and analysis about the topics above to resolve the program and apply the decision-making process on how to move forward.
2. Decision
Once all the information has been compiled and digested, it is time to make a decision. This is not only a singular decision but a series of connected choices. A team must decide which solution to go with and how they will execute the plan to ensure goal achievement.
The decision stage of strategic thinking includes clear task delegation in moving forward. Team members must understand their assigned tasks and responsibilities. You must also determine key success metrics and KPIs.
Now that the team has enough ideas, the team compares them. Ultimately, the team decides to create a new product along with changing how they market it.
To do this, they decide to survey customers about product needs and their marketing preferences. They will then work with the marketing team to brainstorm new ways to advertise the product to achieve a distinct market placement.
Recommended Reading: What Are the Five Choices of Strategy?
3. Execution
The final stage of strategic thinking is execution. Team members start working on tasks to achieve new product creation. This phase requires adaptability since implementation rarely follows the intended plan of action. For instance, contributors may fall behind schedule, or there could be disruptive supply chain issues.
However, as long as the focus is on execution, everyone can continue to work towards the larger goal.
The new product development team created a design approved by leadership and manufacturers and has already begun development. The marketing team, on the other hand, is behind schedule. The development team or other subject matter experts join them in a brainstorming session to offer their unique perspective, leading to a breakthrough.
The new product debuts with a large marketing campaign, and customers love it. The product has surpassed estimated sales records and achieves the desired outcomes.
The Eight Steps of Strategic Thinking
Here are the eight steps organized within the three phases of strategic thinking to ensure you achieve your goal.
1. Define the Goal
First and foremost, a leader must define the larger goal or desired outcomes of the project. Strategic thinking requires looking towards the big picture, not the immediate present. In our example, the goal of the new product project is not to create a new product but to revitalize the brand.
However, if that larger goal is not articulated, team members will focus on the smaller objective—making a new product. This can limit their thinking and prevent them from fully contributing to the project.
2. Collect Data
Once the goal has been established, gather the information needed to make an informed decision. To ensure the best analysis, share this data with anyone participating in the project.
3. Perform Analysis
Review the data collected and note the important factors. Based on the data collected, anticipate any potential issues that could occur or favorable opportunities that might surface.
4. Conduct A Brainstorming Session
Generate ideas with your team to accomplish the larger goal. Create multiple ideas for the goal and solutions for potential problems.
5. Decide on a Plan
Once you feel you have enough ideas, start comparing and contrasting them. This will determine the most optimal decision for the project’s success. Quite often, ideas are combined and creative possibilities emerge.
After comparing ideas, make a final decision about which plan you would like to implement. In the above example, the team chose a new product and marketing to revitalize the brand.
6. Construct a Plan
The decision has been made, and now a clear plan of action must be created to ensure the project’s success. Consider the timeline, capabilities, and potential issues that can occur during the plan’s execution.
7. Implement the Plan
Begin delegating tasks to team members and setting due dates. The larger goal will be easier to achieve as smaller tasks are finished. Monitor the plan’s execution and adapt as new changes occur.
8. Evaluate the Outcome
Once the plan is completed, it is time to evaluate. Was the plan executed as expected? What were the results?
In the example, the new product and marketing campaign surpassed estimated records.
If your project was not as successful as in the example, what can you learn and improve next time? How can you ensure the same mistakes do not occur again?
Recommended Reading: Frameworks and Approaches to Strategic Thinking in an Organization
Ensure Strategic Success with CMOE
Strategic thinking requires time and guidance to feel productive and natural to team members. While the investment is worth it, finding resources and best practices to support team members during this process can be challenging.
CMOE’s Applied Strategic Thinking® Workshop can be a valuable resource. Using both theory and practice, we will work through the three phases of strategic thinking and provide proven tools that help in the application of strategic thinking skills to real work issues.
Consider our Applied Strategic Thinking® Workshop for your team.
