Strategic thinking is one of the core attributes that defines a successful consultant. Operating in the business world involves an incredible amount of data, uncertainty, and competition. Strategic thinking is what helps consultants navigate those stormy seas.
In this article we’ll walk you through what strategic thinking really is. We’ll also discuss ways you can increase your own strategic thinking skills.
What Is Strategic Thinking?
Don’t be ashamed if you’re asking yourself: What is strategic thinking? It seems like it should be common sense, but actually it isn’t. So let’s start with the strategic thinking definition.
Strategic thinking describes a set of skills that involve analyzing complex situations, anticipating future outcomes, and developing effective plans for accomplishing goals over time.
How Cultural Strategic Thinking Plays a Part Within an Organization
Of course, as an aspiring consultant, it’s important to recognize that not every organization conducts strategic thinking in the same way. Let’s look at how cultural strategic thinking plays a part within an organization.
An organization’s culture involves the values, norms, and backgrounds that influence that organization’s collective communication style, decision-making processes, and behavior. As you go about helping organizations practice and implement strategic thinking to achieve their goals, you should work hard to study the culture of the organization so you can help find the solution that’s right for them, and so you can communicate your proposed strategy effectively.
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Strategic Thinking Examples
Now that we’ve covered the basics about what strategic thinking is, we’re going to look more closely at some strategic thinking examples.
- Market Entry: If a technology startup is planning to release their first product in a new market, they may hire a consulting firm to help conduct market and consumer research, to survey the competitive landscape, and to focus on specific threats and opportunities.
- M&A: When two companies merge, they often have trouble integrating their resources, processes, and goals in an efficient and harmonious manner. Consultants can leverage strategic thinking to assess areas where the two companies can synergize, to name areas where conflicts may arise, and to develop a road map for further integrating the two companies over time.
Strategic Thinking vs Tactical
One common mistake people make is confusing strategic thinking with tactical thinking, or even viewing them as synonyms. But they actually describe different things. Let’s dig down on the differences in strategic thinking vs tactical.
The main distinction comes down to scope. Strategic thinking describes a process that focuses on the big picture, with long-term goals and challenges in mind. In a business context, strategic thinking can involve years and decades. Tactical thinking, on the other hand, is more short-term. Tactical thinking often unfolds over weeks and months. A company may pursue many different tactical approaches in order to achieve a consistent long-term strategy.
How to Think Strategically
By now, you understand that strategic thinking is a crucial skill set for any consultant. But you’re probably wondering about how to think strategically, how to improve strategic thinking, and how to develop strategic thinking.
One of the most powerful ways you can enhance your strategic thinking skills is through education. Learn all you can about not only business fundamentals, but also about historical and current business trends.
You can also improve your strategic thinking by practicing your critical thinking skills. This means asking questions rather than making assumptions, seeking evidence, and considering alternate points of view.
Finally, you can help yourself develop strategic thinking skills by working with a mentor who’s practiced strategic thinking over a long-term horizon.
Strategic Thinking Skills
Strategic thinking is more of a toolbox than a specific tool. With that in mind, let’s take a look at some of the most important strategic thinking skills.
- Analytical thinking: strategic thinking starts with the ability to analyze complicated situations, to identify important relationships, and to break large problems down into smaller ones.
- Creativity: If business were as simple as plugging in a guaranteed formula, everyone would succeed at it. But in the real (business) world, strategic thinking requires generating new ideas and approaches.
- Decision-making: The best strategy in the world isn’t worth much if you don’t have the ability to pull the trigger. Furthermore, you won’t even be able to build a strategy if you aren’t able to make decisions along the way. A good strategic thinker can be decisive even under conditions of uncertainty.
Conclusion
Strategic thinking differentiates companies that are most successful in the long-term from those that ultimately fail. For that reason, strategic thinking is also one of the areas where organizations are most in need of help from outside consultants. If you’re looking to make an impact as a management consultant, start cultivating your strategic thinking skills today.
Additional Resources:
- Thinking Like a Consultant & Communicating Core Values
- The Difference between Strategy, Implementation, and Tech Consulting
- Strategic Intent: Definition, Overview, & Example
- Consulting Resume: Complete Guide
- Case Interview: Complete Prep Guide