Strategic thinking and operational thinking may seem like two separate planes of existence. Strategic thinking and subse- quent management must result in action. She loves presenting at global facilitator conferences. More and more, organizations are learning that past experiences are not always the best basis for developing future strategies. … 3. When you include all the critical steps, incorporate sound processes for strategic planning and have an experienced facilitator guiding you, you will find yourself falling in love with strategic thinking and planning. strategic thinking relies more on hard data than strategic planning. One extremely helpful scholarly overview can be found in the June 1998 volume 31 of Long Range Planning, in a very high-level discussion by Loizos Heracleous entitled “Strategic Thinking or Strategic Planning?”  Heracleous presents a variety of perspectives from business academicians differentiating between the two. As a cognitive activity, it produces thought.. Strategic thinking is a somewhat complex statement. Strategic planning is a process (see above, RE: report that sits on a shelf), while strategic thinking is about vision, intuition, and creativity. Strategic thinking is a style of thinking that – among other things – is concerned about the future. Difference between strategic thinking and strategic planning Purpose – The purpose of strategic thinking is to envision or develop a solution. Stay informed on the latest strategic management insights, leadership development trends and upcoming training programs. Definition – Strategic thinking is a skill. Powerfully Resilient Virtual Teams – Lessons from Global IAF Leaders. Sharpening the Focus on Your Meeting Outcomes. ← Bringing Our Whole Selves to the Group – Reflections from Banff IAF, Creating Group Guidelines for Terrific Teamwork →, Move Out of the Boxes in Virtual Meetings. Strategic thinking is a skill set that can be applied to any complex problem solving process. The photo on the right is an example of a well worded strategic goal or direction. Many strategic plans fail or are abandoned. It’s not just a way of thinking what could be, but also a way of seeing what should be. Strategic planning is an application of strategic thinking that involves teams, organizations or communities. 4. Strategic thinking is different 1. than strategic planning. We’ve chosen to speak about both because strategic thinking is the foundation for strategic planning. You are as accurate as possible about identifying root causes. It is a skill that can be used on a daily basis, on your own or in groups. Strategic thinking is an essential skill to both short and long-term planning. Strategic Thinking. Suspend judgement and disbelief. Tips: Aim for both “tried and true” and “bold and new” ideas and actions. For a better understanding of what it means, first consider what strategic planning is. Likewise, we find that many are hungering for an organizational culture which is bettered trained and more engaged in thinking strategically. It is typically conducted every 3-5 years to help groups grow and continually evolve to address changing needs. Facilitation and Democracy – Can they inform each other? On the contrary, strategic management is an action-oriented activity. Most of us are “getting through” life and work reasonably using our current thinking skills and abilities, experience and knowledge. Type of thinking: Strategic/ intuitive around ideas and people. This belief, in turn, rests on the assumptions that prediction is possible and that the strategy-making process can be formalized. She believes facilitation processes, used well, will provide the roadmap to a more just and sustainable world. While it is great to be able to create goals and objectives to take the business to the next level, there also needs to be a plan in place to get there. 2. You are objectively describing what exists now – both good and bad as though you were an outside neutral observer. Second, the paper evaluates the strategic management process within Strategic thinking requires agility and decisiveness in choosing a plan and sticking with it. A key distinction between strategic thinking and strategic planning is that the former occurs on a regular basis, … That said, training and cultivating an organizational culture to think strategically is a vital tool throughout the strategic planning process. In other words, about where you would like to be as an organization and how you get there, Dissecting strategic thinking versus strategic planning: Dynamic rather than static; Flexible rather than rigid between strategic planning and strategic thinking and their relationship to strategic management. 6. It answers … Recently a client asked a very simple, and yet extremely complex, question: “What’s the difference between ‘strategic thinking’ and ‘strategic planning’?” Great question! When done well, we could say that strategic thinking makes a person more “futures ready;” that is, having an attitude that is comfortable with change, anticipates change, and … Overall, strategic thinking is the first building block in operating strategically at all levels of the organization. Strategic Thinking applied here would bring up other thoughts about life style changes, nutritional needs, exercise, long term health consequences, how my … Strategic thinking is the process of determining the direction you will take to achieve your vision. In many respects, it is even more important than strategic planning. Please check your entries and try again. Strategic and tactical thinking should go hand-in-hand. It is a skill that can be used on a daily basis, on your own or in groups. Mastering Agile Organizational Design Certification, Mastering Execution for the Public Sector Certification, Strategic Foresight and Scenario-Based Planning, Association for Strategy Planning Exam Preparation, Strategic Planning, Execution and Management, Strategic Foresight and Scenario-Based Planning (Training and Consulting), Good Governance and Board Leadership Development, Strategic Management Blog: From Theory to Practice, Free Strategic Management Competency Assessment. It is a process that is often difficult to measure, let alone to monitor. Strategic thinking is different from strategic planning in that: strategic thinking includes all types of information sources while strategic planning does not. it is also knowing which box to think outside of! Difference Between Strategic planning vs Strategic management. Then, you can  systematically devise ways to overcome the root issues and move you closer to the vision with strategic actions. To remain competitive, life science organisations must chart a course in a business environment that is in a constant state of flux, andbe prepared to change direction at a moments notice. Strategic planning/management gives voice, action and structure to strategic thinking. According to a 2009 Harvard Business Review article “Four Fatal Flaws of Strategic Planning,” 88 percent of companies engage in strategic planning, yet few adequately manage their strategies, and even fewer see their goals completely met. It may also extend to control mechanisms for guiding the implementation of the strategy.”, A second definition we found was, “A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them. Mastering Strategy: Strategic Management Performance System Certification, Strategic Thinking Professional Development, Strategic Planning & Management Consulting Services, ← The 5 Most Important Factors to Successfully Implement Strategy, Slouching Toward Failure: 5 Reasons Organizations Lose Sight of Their Core Values →, The Secret Power of “Community Surveys” to Accelerate Agile Organization Design. ToP Strategic Planning in Portland, Oregon(Prerequisite: ToP Facilitation Methods). Most people experience some fear and/or frustration with strategic planning largely because it is not done in an inclusive way or it fails to address the root issues that the organization is facing. The main difference between strategic thinking and strategic planning is planning doesn’t predict a future state of where the organization wants to be (13). Demonstrating strategic thinking, on the other hand, requires that you are simultaneously a marketer, a salesperson, and a change agent. Type of thinking: Critical and contradictional, Tips: You want to avoid using any “excuses” related to time or money. Strategic planning models very a lot. Finally, during the all-important evaluation and control phase, strategic thinking ensures that an organization is measuring those drivers which best lead to success of the overall mission. Econ… You want to use a process that gives you a deeper appreciation and understanding of exactly what is needed, at this moment in time. . During the operational and implementation phase, a strategic thinking organization will ensure that the higher level strategic direction cascades throughout the day-to-day decision making at all levels. Strategic planning is the channeling of business insights into an action plan to achieve goals and objectives. It is never about time or money. Group Participation, Facilitator tools, meeting dynamics, aging workforce in some part of the world, underutilized younger workforce in many parts of the world, climate change – strengthening the need for sustainable actions, trend in moving from hierarchical leadership to more facilitative leadership, almost unlimited access to ideas and information around the world, Have a difficult “roadblock” that impedes your ability to meet a goal or a future desired state, Have a group of experts in the room that need to work together to solve a complex problem, Want to focus on the long-term versus the short term, Want to use what you have to maximum advantage [i.e. Articulating the underlying obstacles. Strategic thinking informs strategic planning/management. Type of thinking: Visionary, forward-thinking. You can develop it, leverage it or improve it. However, strategic planning is useful to help in strategic thinking, strategy development, decision-making, performance improvement, and to build camaraderie (14). strategic thinking is regimented and confining, whereas strategic planning is … It feels truly magical when you have good processes to do this. The strategic planning is an analytical activity because it is related to the thinking. Strategic thinking informs strategic planning/management. This in an excerpt from another interview of BPI by OPR (Organizational Performance Resources) a consortium of performance experts organized by Bill Harshman.. BPI: Once the new strategic vision has been established a plan is developed to realize that vision. Tips: You need to be relaxed to be able to think positively about a current bad situation. All Rights Reserved. This is a unique piece in the ToP method that we have found to be extremely valuable to organizations and groups. That's where strategic thinking comes in. It is the habit of visualizing alternative futures for the organization and their impact on others. Strategic thinking is defined as a mental or thinking process applied by an individual in the context of achieving a goal or set of goals in a game or other endeavor. In reality, though, they are more like two sides of the same coin. Keep asking yourself “why?”. What’s the difference between the two, you ask? Strategic thinking is different from strategic planning. Strategic planning activity uses management by plans, whereas strategic management process uses management by results. While these scholarly discussions are intellectually stimulating, we are left lacking a simple and practical explanation to differentiate between the two. Where strategic management is a long-term plan for the future, Applied Strategic Thinking considers the future from the next few seconds to however long the concept will be relevant. They  usually all have vision, goals, objectives and action plans. Strategic planning is a process of analysis and declaration, usually used by companies to focus their goals and directives. For some, strategic thinking and planning are distinct modes that are both useful at different stages in the strategic management process (e.g., Mintzberg); others posit that strategic thinking is not so much creative as analytical (Porter). Strategic planning without strategic thinking will digress into a sluggish and lifeless process of setting goals and measuring objectives. (Adapted by Barbara MacKay from: Technology of Participation, Herrmann Brain Dominance theory and others). Strategic planning, on the other hand, is a continual planning process that relies on strong strategic thinking. Strategic thinking is a skill set that can be applied to any complex problem solving process. Broadening your understanding of the environment. Something went wrong. The two not only work together…but they require each other. Strategic planning is only useful if it supports strategic thinking and leads to strategic management and, even more importantly, execution. Here are just a few global factors which suggest we absolutely need to be more strategic than in the past: Strategic thinking is a combination of many modes of thinking, including analytical, creative, visionary, contradictional, tactical, gut-feeling (intuitive), chronological, holistic, and critical among others. In working with our clients, we find that most have a relatively strong understanding and appreciation for the value of strategic planning/management. Strategic planning is an application of strategic thinking that involves teams, organizations or communities. Established in 1995, we have ~25 years of experience in every sector and in dozens of countries. She loves teaching others how to do that. Tips: Be as specific as possible. But analysis must come first. If you also love what process facilitation can do for the world, connect with her – virtually or in person. Strategic planning/management gives voice, action and structure to strategic thinking. Based on our thinking on strategic thinking above, we would urge you to also consider that strategic is about ensuring you and the group really dig deeply to look at what gets in the way of implementing your vision. Brainstorming strategic priorities/options. Strategic thinking is more than just “thinking outside the box” . She loves certifying new professional facilitators. With strategic thinking skills, managers and high-potentials are able to better allocate time and resources toward current needs while anticipating and planning for future hurdles as well. 5. Strategic thinkingis a planning process that applies innovation, strategic planning, and operational planning to develop business strategies that have a greater chance for success. Strategic thinking without strategic planning/management will cannibalize itself in a quest for structure and process. She loves working with other facilitators around the globe to create transformational results for client groups. In addition to the marketplace, companies must be ready to respond to changes in: 1. When done correctly, strategic planning is not a one-time or annual event. Type of thinking: Chronological, preventative, wholistic. leverage], Want to not “do things the way they have always been done around here”, Have inaccurate information and/or conclusions, and are able to treat any conclusions as tentative or hypotheses. At LBL Strategies, we suggest that “strategic planning/management” and “strategic thinking” exist in a symbiotic relationship. Imagining a different future desired state. Tips: You are scanning the internal and external environment for everything you know about the situation. However, you have to be aware of new, more promising opportunities. Adopting a strategic mindset is essential for life sciences executives tasked with increasing profits, delighting customers and retaining talent. Some common scenarios that lead people to the need for strategic planning include: What are the steps to strategic planning? You should also end up with three to four core foci  (strategic goals or directions) that help you make decisions about what to  put your energy into in the future. Strategic planning involves the identification of actions to be taken. Strategic thinking without strategic planning/management will cannibalize itself in a quest for structure and process. To be strategic, you must also look at strategic issues or obstacles to the vision. Strategic thinking involves making a series of decisions about what actions the company intends to take to become more successful. To think strategically means to see and understand the bigger picture of what the organization is, where it needs to go, and how it will get there. In working with our clients, we find that most have a relatively strong understanding and appreciation for the value of strategic planning… For over 20 years, Harvard ManageMentor® has set the standard for on-demand leadership development. Strategic thinking is the 'what' and 'why' of the planning process. In contrast to tactical planning (which focuses at achieving narrowly defined interim objectives with predetermined means), strategic planning looks at the wider picture and is flexible in choice of its means.” (businessdictionary.com). Technology 2. She thinks BIG! . A quick Google search reveals that academics have pondered and debated this question since the early 1990’s. What are the steps to strategic thinking? Will Online Meetings Become a Whole New Offshoot of Facilitation? Systems Thinking in Strategic Planning One of the most useful tools for good strategy analysis is systems thinking. C-suite executives, middle managers, and front line staff are entrusted with the freedom to think through solutions and trade-offs, to ensure each decision is best aligned with the overall strategic direction. We would say this is not enough to make a plan strategic. ideas (specific, measurable, accomplishable, realistic, and timely), Here is what Wikipedia says, “Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. What’s the Strategic in Strategic Thinking and Planning? A company often goes through a strategic planning process once a year, creating a document that is, in essence, a guidebook for the … Borrow or beg “shamelessly” from other people’s “good” ideas or projects elsewhere. See also www.ica-usa.org or www.ica-assciates.ca for training dates around the globe. Those decisions must support or help move forward one of more of your strategic goals or directions. Aim for S.M.A.R.T. Strategic thinking must guide the commander’s choices on a daily basis. Executives need to thoughtfully consider how to create value for customers. strategic planning and operational planning to develop business strategies that have a greater chance for success What’s the Difference between Strategic Thinking and Strategic Planning? There is even confusion among business and management experts. I hope that our sharing today inspires you to be intentional around developing this skill of strategy making as well as carefully choosing the strategic planning model that will best suit your needs. Barbara loves “everything facilitation”. What can be done about it? Why bother with continuing to learn and practice the specifics of strategic thinking and planning? It … Strategic planning is the process of developing a blueprint for the work you will do against that direction. We offer some great resources at the end of this article. So in our attempt to remain practical and engaged in the “real world” of our clients’ business, we underscore that at its essence, “Strategic Thinking” is a way of viewing challenges and opportunities from a variety of perspectives and altitudes, in order to proffer the very best solutions and directions. Why bother learning how to think, decide, prioritize and plan more strategically? Developing tactics that fall within realm of one of the strategic priorities. Notice that the main difference between these definitions is the timing. In his book Fifteen Things Common to Great Achievers, author Israelmore Ayivor shared, “A dream is the frame or portrait or a construction or focus of one’s vision by means of perception, based on what he or she knows and settles within via strategic thinking.” Many people conflate these two concepts. The problem is that strategic planning proponents believe that analysis encompasses synthesis; that in the best practice, strategic planning, strategic thinking, and strategy making are synonymous. You are also being thoughtful around future opportunities and threats. This means looking at root causes or in the Technology of Participation (ToP) model of strategic planning, we call this contradictions to the vision. © 2018 North Star Facilitators. In this blog, I offer some of my material from a strategic thinking course that I have developed for government leaders as well as material from our learning modules and the key strategic planning model that I use. Flexibility is a critical element of strategic thinking. Tips: You are being honest and realistic about your current resources and abilities to rectify or change  a situation. Having one without the other can be a recipe for disaster. Both strategic management and strategic planning are keys to business success in any industry, but few know the difference between the two. During the high-level strategy formation phase, leaders thinking strategically will drive alignment around analyzing the opportunities from the widest possible perspective and understanding. Every  important or high impact decision that comes up after a planning process should  be screened. Develop a Learning Culture