This is regarded as a benefit in highly competitive and fast-changing business landscapes. 1963 that strategic thinking “is a mental process, strategic thinking process pdf once abstract and rational, which must be capable of synthesizing both psychological and material data.
There is no generally accepted definition for strategic thinking, no common agreement as to its role or importance, and no standardised list of key competencies of strategic thinkers. Most agree that traditional models of strategy making, which are primarily based on strategic planning, are not working. However, both thought processes must work hand-in-hand in order to reap maximum benefit. Where appropriate, incorporate items into the main body of the article. In the view of F. Graetz’s model holds that the role of strategic thinking is “to seek innovation and imagine new and very different futures that may lead the company to redefine its core strategies and even its industry”. Strategic planning’s role is “to realise and to support strategies developed through the strategic thinking process and to integrate these back into the business”.
Mintzberg argued that strategic thinking cannot be systematized and is the critical part of strategy formation, as opposed to strategic planning exercises. Only the shape of the future can be predicted. A future that is predictable and specifiable in detail. Formulation and implementation are interactive rather than sequential and discrete. The roles of formulation and implementation can be neatly divided. Lower-level managers have a voice in strategy-making, as well as greater latitude to respond opportunistically to developing conditions. Senior executives obtain the needed information from lower-level managers, and then use it to create a plan which is, in turn, disseminated to managers for implementation.
Asserts control through measurement systems, assuming that organisations can measure and monitor important variables both accurately and quickly. All managers understand the larger system, the connection between their roles and the functioning of that system, as well as the interdependence between the various roles that comprise the system. Lower-level managers need only know his or her own role well and can be expected to defend only his or her own turf. Sees strategy and change as inescapably linked and assumes that finding new strategic options and implementing them successfully is harder and more important than evaluating them.
The challenge of setting strategic direction is primarily analytic. Sees the planning process itself as a critical value-adding element. Focus is on the creation of the plan as the ultimate objective. A strategic thinker has a mental model of the complete end-to-end system of value creation, his or her role within it, and an understanding of the competencies it contains. Crediting Hamel and Prahalad with popularising the concept, Liedtka describes strategic intent as “the focus that allows individuals within an organization to marshal and leverage their energy, to focus attention, to resist distraction, and to concentrate for as long as it takes to achieve a goal. Strategy is not driven by future intent alone. It is the gap between today’s reality and intent for the future that is critical.