Tag Archive for: Strategy Development

3 Ways to Improve Your Strategic Thinking

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You may have heard the story of the truck that was immovably stuck under a bridge and how the solution came from an unlikely source. If you don’t know it, I’ll share it at the end of this newsletter.

I was thinking about this story when recalling a professional meeting where the topic was developing a global mindset. One of the speakers was talking about their company’s research showing that experiencing another culture has a significant impact on one’s strategic thinking. “Experiencing” didn’t mean going there on a vacation. It was an immersive, longer-term experience, like ex pat assignments or managing a global team where you had to travel to work within their culture somewhat regularly.

The speaker noted that these assignments have this profound impact because they challenge your perceptions and perspectives of the world. These different perspectives allow you to be more nuanced in your thinking about how different parts of a whole interact, the variables that impact it, and the resulting implications. Your competitors are increasingly global, not just national or local. Therefore, such experiences help you to think more like (and outthink) your competitors, to anticipate trends, and to consider solutions and strategies from a broader array of possibilities.

How, then, can you stretch your perspectives to help develop your strategic thinking when working globally isn’t a possibility (or, at least, not yet)?

  • Regularly interact with people in a different function or area of the company. Marketers and engineers don’t think alike. Operations people think differently than researchers. See how someone different from you may experience the same issues or the organization itself.
  • Interact with those outside your industry.  For years, benchmarking was the buzzword when you wanted to get a more strategic perspective and to gain some competitive advantage. Benchmarking is often practiced with a closed-system approach. Life science companies benchmark other life science companies. Tech firms benchmark other tech firms. That’s important, but it’s also somewhat limiting, especially in a world where industries and disciplines are bleeding together like never before. The perspective of someone in a different industry about your issue or situation will cause you to think about the variables and interactions more broadly, more strategically. One of the things that made Steve Jobs so successful at product design was that he included perspectives he gained from things as diverse as digital animation, calligraphy and architecture.

When we hire people who are mostly like ourselves we multiply our strengths… but also our weaknesses and blind spots.

  • Hire people who are different from you. We’re all familiar with research which shows that diverse organizations are generally more successful. In addition to the typical diversity categories we’re used to thinking about (gender, race, age, etc.) we should look for diversity of thought, experience, and education, among many other factors. When we hire people who are mostly like ourselves, we multiply our strengths… but also our weaknesses and blind spots. Make sure to regularly ask those you’ve hired for their perspective and input on the business issues you are working to address.

Thinking about your daily business interactions expansively will help you develop the broader perspective needed for strategic thinking.

So, the story of the truck goes like this. The top of the truck was wedged against the underside of a bridge, and it could go neither forward nor backward. It just wouldn’t budge. Traffic was backed up and police and tow trucks were trying to figure out how to get it out. A little boy walked up and asked what was going on.  The police officer explained the dilemma. The little boy looked at him and said, “let the air out of the tires.”
Strategy

5 Ways We Do Strategy Differently

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How do you build and execute strategy successfully in the context of how we work today?  I think that’s a big question for any company – large or small – because the landscape is changing so quickly.

Traditionally, strategy was built by a relatively small number of senior executives and then cascaded down through the ranks to be executed.  Roles were clear.  Executives developed and monitored. Middle managers made sure work was aligned. Everyone else executed.

In this approach, those senior executives had the best vantage point to know what the strategy should be.  Markets and competition were relatively stable. The executives had often spent years in the industry and often grew up in the firm.

Fast forward to markets that change rapidly, competitors who enter quickly and at times disruptively, and organizations where few people spend their entire career.  The traditional strategy development model doesn’t work.

In our opinion, there needs to be a very different approach. Here are five ways we need to approach strategy development and execution differently:

  • Strategy development needs to involve more than just the most senior executives. Strategy is becoming more fluid and iterative. There is information, data, and people throughout the organization that need to be included. Leaders at highest levels of the organization with years of experience don’t have enough expertise because what created today’s success may or may not create tomorrow’s.
  • Mid-level roles – whether it be mid-level leaders or high-expertise individual contributors – need to be redefined. These roles are no longer just about executing strategy but about shaping and influencing it. They have information and perspective that the organization needs to compete.
  • Strategic-thinking needs to be a capability that is viewed as necessary at all levels in the organization. The behaviors will look different but it can’t only be valued and assessed at the most senior levels.
  • Communication and alignment around the strategy need to be continual. Agility in an organization allows people to be proactive when opportunities arise. Alignment ensures that resources are put behind the right opportunities. Discussions about strategy and opportunities needs to be part of the ongoing conversation at all levels in the organization.
  • Risk needs to be part of the plan. Organizations cannot seek perfection at the expense of good. Failure will occur as new opportunities are pursued. For many organizations, this is a real culture shift and one that will need to be approached intentionally and purposefully.

The benefits of rethinking strategy in this way?  Increased speed and innovation. A more responsive organization. Improved execution. Higher engagement levels. However, getting there won’t happen overnight. You need a plan.

We’ve worked for over 20 years helping organizations clarify and execute their strategy. We also know how to help you thrive during change. How can we help you?