According to a study conducted by the Management Research Group, 97% of a group of 10,000 senior executives surveyed thought that strategic thinking was the most critical leadership skill for an organisation’s success. This is very interesting bearing in mind the limited amount of time organisations spend on strategic thinking.

What is strategic thinking? It is the process of generating ideas and possible solutions to current and future circumstances and challenges. It requires one to see the big picture, challenge the status quo, perform objective analysis and implement forward thinking and planning. This process is fundamental to an organisation’s sustainability. Far too often, current day-to-day operations and fire fighting take up all our management time and too little time is spent considering the future and the impact of changing circumstances on our businesses. We only realise this error in prioritisation once the walls start closing in and cash flows start suffering.

During the strategic thinking process, we ask questions such as “What might happen? When will this happen?”. We have to make strategic decisions around “What will we do?” and develop strategic plans incorporating “How will we do it? Who will do it and by when?”. We need to understand our connections and interdependencies with the external environment and how to align our internal capacities with the changing and dynamic external environment in which we operate in such a way that our business continues to flourish. As you have no doubt already deduced, this is not a once-off process, but rather something which needs to become ingrained into the organisation. In addition to holding dedicated strategy sessions, I have found that documenting your business plan and introducing budgeting and regular forecasting mechanisms can be useful tools to stimulate such strategic thinking.

Contrary to poplular belief, strategic thinking is not a process which falls solely within the domain of the CEO, but is rather the responsibility of every employee within the organisation. The power of harnessing your employees’ energy and drive in one cohesive direction can only lead to superior results! In my experience, it is therefore also important to create a corporate culture which encourages everyone in the organisation to think strategically. The strategic plan needs to be documented and communicated to everyone in the organisation so that all employees understand their role in achieving the organisation’s objectives. Consider rewarding your managers and staff for forward and proactive thinking and for generating longer term solutions. Encourage your staff to voice their different viewpoints and challenge the status quo in order to constantly improve efficiencies. Don’t be afraid to share information with your staff especially if it can help them achieve better, more sustainable results!