Models and Frameworks of Strategic Thinking - Assignment Example

LTS ASSIGNMENT Executive summary In this report, the importance of strategic thinking in personal development and successful business management is discussed. This involves a clear analysis of the nature of thinking strategically and key frameworks and models of strategic thinking. In addition, the key attributes and characteristics of strategic thinkers are discussed. Finally, a self analysis, with a development plan is carried out. Table of Contents Table of Contents 3 1.0: Introduction 4 References 14 1.0: Introduction Strategic thinking is a vital element for success in life and in business. This report discusses the importance of strategic thinking in regards to personal development and its contribution to successful business management. Therefore, the report commences by discussing the nature of thinking strategically. This is followed by an analysis of some key frameworks and models of strategic thinking. After this, the key attributes and characteristics that strategic thinkers should posses are discussed. In the next step, a self analysis is carried out, which is finally, followed by a development plan. 1: The Relationship between Strategy and Strategic Thinking a. The Concept Of Process Of Strategic Thinking In The Organisational Context Strategic thinking is a process that utilizes facts, intuition and creativity in synthesis to come up with an integrated perspective of the enterprise. It is worth to note that utilization of factual information is imperative in strategic thinking. However, as much as facts are essential in strategic thinking, it should be noted that strategic thinking must involve intuition because facts alone, no matter how many they may be, cannot replace intuition, insight and entrepreneurial premonition. Therefore, there has to be an inclusion of unusual qualities. According to Sanders (1998, p, 143), strategic thinking involves making of decisions, based on analysis and intuitions about the future to construct scenarios. Therefore, issues and trends are scanned and analysed, as they are expected to affect the future. In summary, strategic planning is a systematic programming of pre-identified strategies from which an action plan is developed. In an organisation, strategic thinking is downward focused. It ensures that meaning and purpose are diffused throughout the organisation, with an aim of developing tactics to meet organisational needs. This requires the ability to synthesis and not to analyse (Fairholm, 2009, p, 2). Mintzberg supports this assertion that strategic thinking is synthesis and not analysis, which should be associated with strategic planning (Henkel, 2011, p, 3). It is possible to learn how to think strategically because it is all about creativity. There are two components of successful strategic thinking; insight about the presence and foresight about the future (Sanders, 1998, p, 78). One has to understand the big picture, in the context of the decisions that s/he should make. Therefore, thinking strategically should be accompanied by research and forethought so as to come up with a plan that will guide how one has to proceed with future actions (Training, 2013, p,8). This means that there has to be a creative approach towards thinking, and a strategic thinker must employ creativity in utilizing mental faculties (Loehle, 1996, p, 10). According to Mckeown (2012), strategic thinkers are those who see possibilities that they can shape into desirable situations. It is therefore, imperative to be able to notice what is taking place around one’s environment. In the context of starting own business, ability to identify historic trends which will open new opportunities is essential, accompanied with imagination of which of the future moves should be made now. In addition, Sloan notes that there has to be a strategic intent that will guide an organization into making decisions in the face of emerging options and alternatives (Sloan, 2006, p, 14). Strategic thinking is extremely beneficial both in business and in personal life. In business, strategic thinking is essential in helping clients to make informed decisions because it avails an opportunity to business owners to offer constructive feedback to clients. Strategic thinking is normally focused on the future. Therefore, it promotes enhancement of skills and capabilities. In addition, to manage a business effectively, one ought to think dynamically about strategic management and anticipate the future accurately (Duhaime, Stimpert, & Chesley, 2012, p, 70). b. Strategic Thinking Models There are various frameworks and models of strategic thinking. One of such model is the Eisenhower matrix that pertains to working more efficiently. According to this model, one has to break down every task into small tasks so as to work effectively. This helps in deciding how to proceed. Hence, urgent issues are dealt with first and time is taken to deal with important tasks before their urgency arises (Krogerus & Tschäppeler, 2011). In pursuing the right goal, the John Whitmore model may be applied. This involves setting of goals should by noting the distinction between final and performance goals. It should be noted that performance goals should be achieved because they support achievement of the final goal. Therefore, performance goals are pursued so as to achieve the final goal. The morphological box and SCAMPER model is applied in strategic thinking and it pertains to creation of an insight as to why one is structured to be creative. Innovation involves making a new combination of existing things. Using morphological boxes, problems are solved and a new entity may be developed using attributes of a variety of existing entities. Therefore, one is able to think about what nobody yet has thought about, though everybody sees (Krogerus & Tschäppeler, 2011). The consequences model allows strategic thinkers to consider all the speculated outcomes of various decisions and actions. This makes it possible to analyse existing options and make valid decisions promptly. When one is stuck in life and is unable to determine which step to take the crossroads model so as to decide the best step that can be taken to solve the dilemma. The personal performance model enables strategic thinkers to recognize whether it is important to change one’s job and the benefits associated with such a step, upon carrying out a personal analysis of weaknesses and strengths or SWOT. Strategic thinkers can also use the making-of model determine their future because it helps to understand their past, which is an essential element of influencing one’s future. The Maslow pyramids is crucial in the identification of what one actually needs or what one actually wants. This enhances prioritisation of activities and issues that ought to be resolved first. Strategic thinkers can come up with brilliant ideas by making use of the thinking-outside-the-box model. In an organisational context, strategic thinkers can apply analysis frameworks such as the resources and capabilities mapping framework of strategic thinking, which involves analysis of value, rare, imitable, organisation aspects (Tovstiga, 2013). 2. Knowledge and Skills Necessary for Thinking a. Strategic Thinking Characteristics In applying these models and frameworks, strategic thinkers should possess various attributes because strategic thinking is essential for strategic decision making and strategic leadership. In strategic decision making, one thinks strategically to manage a chaotic situation, avoid bias and to create an effective structure while in strategic leadership, one thinks strategically so as to manage others or lead them appropriately (Cunningham & Harney, 2012, p, 48). Strategy is seeking to understand where one is and where s/he wants to be. In business, strategy shapes the future, nature and direction of an organization by defining such a vision and means of achieving it (Wilson, 2003, p, 23). A strategic thinker should be holistic in thinking. This means that, if it is in business, one has to take a comprehensive view. Interests, functions, and operations have to be considered in a total environment context, taking markets, competition technology and economic aspects into thought so as to determine the strategic steps that have to be taken so as to adjust or better the business. Secondly, there has to be focus in strategic thinking. Therefore, one has to be able to identify and resolve issues that result from changes of the environment. Third, strategic thinking has to be visionary by defining the timelines within which a certain objective has to be achieved. In case of a business, it defines what the business should be, after a specified period in future. Strategic thinking must be practical so that one can implement appropriate actions to achieve set objectives. Therefore, a strategic thinker must be practical in approach. Another attribute of strategic planning is that it is has to be inquisitive. Questions about adequacy and capabilities must be asked in the process of strategic thinking. Flexibility is another attribute of strategic thinking. This enhances the capability of adopting into the unforeseen. Continuous planning is necessary in this case and strategic thinkers have to work by following plans. There have to be decisions associated with strategic thinking. This means that strategic thinking must be followed by actions. Therefore, strategic thinkers should be decisive. A strategic thinker thinks about challenges that an organization faces, the effect such challenges have on various departments and the overall health of the organization, as well as, outside stakeholders such as clients and the external environment. In an individual context, a strategic thinker must analyse the challenges facing him or her, in connection to the environment so as to steer the right direction for the future. In addition, a strategic thinker projects his understanding and analysis of issues into the future constantly (Moseley, 2009, p, 11). With this in mind, strategic thinking prepares an organization for the future. According to Riddle (2008), a strategic thinker should be inquisitive. b. Strategic Thinking Structure and Cognitive Any person who wants to make wise decisions by utilizing possible choices in life ought to think strategically. In life, one may be limited by the forces that lie outside one’s sphere of influence and strategic thinking becomes handy in such situations because it helps one to overcome such limitations (Harvard Business School, 2010, p, 4). A strategic thinker should be curious. S/he should be eager to understand why various activities take place and the steps s/he can take to influence various outcomes. A strategic thinker should have a positive outlook to be able to view challenges as opportunities and believe that it is possible to succeed. Breadth is another characteristic that distinguishes strategic thinkers. This allows one to work continually to broaden knowledge and experience so that it is possible to see connections and patterns across fields of knowledge, which seem unrelated. According to Gunn, Bell and Kafmann (2013, p, 1), occasionally, one can develop employability attributes that are best provided outside of the curriculum, provided such a person possesses the qualities of a strategic thinker. One who thinks strategically should be able to look at a complex situation from various angles. In addition, one should be able to find and evaluate options in terms of their implications and apply the most appropriate in resolving the situation (Grundy, 2012, p, 24). 3. Personal Reflective Statement a. Personal Development: A Career Strategy Considering my background, strategic thinking has enabled me to be what I am now and will enable me achieve my goal of personal development. According to Swayne, Duncan and Ginter (2008, p, 329), strategic planning enables one to develop and implement support strategies that add value to life or to an organisation. I am a foresighted individual who decided to further my education to university level, though in my home country, the role of women in business is extremely limited. In addition, the number of careers that women should enter and work without subjecting themselves into harassment is limited due to the requirements of Sharia. As a result, I had to work as a girls’ school teacher. Thinking strategically, I decided to change my career. Referring to the assertion of Gunn, Bell and Kafmann (2013, p, 1) that one can develop employability attributes outside of the curriculum; I sought self employment to achieve my full potential. This is because I realised that the teaching profession is adversely affected by lack of appropriate organisational and management in the schools’ system, and this affects performance of students. Bureaucracy in schools’ leadership creates barriers of demonstrating any initiatives, without permission. This reason made me leave teaching and I set up a cosmetic retail business. Strategic thinking enhances appropriate and timely communication of strategy and development of viable action plans (Swayne, Duncan, & Ginter, 2008, p, 365). It is through strategic thinking that I was able to change my career. As a matter of fact, I was at cross roads in deciding what to do next because bureaucracy in the school system could allow me utilize my full potential. I decided to study English language so that I could be able to communicate when shopping, making appointments with my General Practitioner and writing letters. Having learnt about the importance of education to women and their role in the economy, I was motivated to develop my English language further and apply for a Master’s degree in business management. I also realised that my success in Master’s level will be enhanced by studying the NCUK Graduate Diploma. This consists of Research Methods, Academic English and Management. Understanding business management is important for my cosmetic business because it will allow me to have deep knowledge and skills in business. For instance, I have dealt with difficult requests from either my customers or suppliers before. I will also be able to make decisions and corrective actions to ensure competitiveness of the business. Due to the changing nature of the environment, the need to match competitors, grow and improve decision making, strategic thinking, which leads to strategic planning, is essential. As Fernando (2013, p, 1), notes, strategic thinking should appreciate the present situation of the business and seek to focus on the future. Strategic thinking leads to innovation and innovation is very essential in business success because it embraces new ways of doing things (Wit & Meyer, 2005, p, 94). Given that I have strong team work skills and can work independently, without supervision, it has been easy for me to think strategically when I wanted to address issues related to my retail cosmetic business. My excellent organisational skills have enabled me to prioritise activities to meet deadlines as I sought to place orders for my customers. I had to seek cosmetics from suppliers early enough before the time that my customers allowed to deliver the product to them expires. Therefore, I addressed issues before they became urgent. In addition, my ability to manage people and make decisions such as issuing a handbook as a communication tool of guiding and managing my employees can enable me utilize my full potential of managing my business. I am as visionary as successful strategic thinkers because i have decided to further personal development and understand the business management to offer support to women owned businesses. I am also curious and eager to learn and apply learn concepts in making my cosmetic business better. I am holistic and practical in my approach because I want to better my business by considering the interests, functions, and operations in a total environment context, in light of markets, competition technology and economic aspects so as to better my cosmetic business. I also want to establish a women’s forum to offer business support and specialist information to assist women’s businesses from their pre-start to high growth stages. However, I need to develop my innovation skills so as to be able to view challenges that face my business and those that are likely to face it from a wider perspective. b. Learning through Reflection: Kolb’s Learning Cycle Given that strategic thinking is the utilization of facts, intuition and creativity in synthesis to come up with an integrated perspective one’s future life, my approach to thinking has to be holistic by considering the effects of total environmental context such as the economy and be focused on resolving issues that result from changes in the environment. To achieve my personal development plan of having a successful business, and having a balanced and scheduled life, I have decided to progress in my career. Therefore, I seek to study a business management, which I feel will be of much benefit to me in future I strive to better my cosmetic business. I have to be practical by employing appropriate actions to achieve my set vision of becoming a manager of people and enterprises. For instance, I have decided to study the NCUK Graduate Diploma to obtain wide knowledge in Research Methods, Academic English and Management. I have set adequate plans to meet my objectives. This has been enhanced by my capability to make right decisions and having a positive outlook in believing that it is possible to succeed in widening my knowledge in management. In consideration of the aforementioned attributes, my main learning objectives are to acquire intrapersonal and interpersonal intelligence, which are extremely essential in the management of business and people. This can be achieved by acquisition of new concepts and business management skills for the improvement my cosmetic business. As a result, I have to acquire sufficient knowledge and skills in research methods, academic English and management. According to Fawcett and McQueen (2011, p, 202), intrapersonal intelligence enables one to accurately understand one’s self and use this in life successfully. It is also imperative to note intrapersonal intelligence involves generation of new ideas and applying knowledge in a given context (Sternberg & Kaufman, 2011, p, 243). This requires self awareness and recognition of one’s feelings and applying it while interacting with others. I have to identify skills required for innovation and creativity such as creative thinking and what self awareness and motivation entails, as well as areas where innovation and generation of new ideas can be applied (See Appendix). On the other hand, interpersonal intelligence facilitates productive interaction with others. Therefore, I need to identify the skills required for productive interaction with others such as good communication, leadership and listening skills and the contexts where leadership and appropriate communication skills can be applied. This will be achieved by making use of library texts, electronic sources and published journals as resources and reviewing my development plan periodically. Appendix Development Plan Learning Objective Type of Intelligence Action Plan Resources Review Date To acquire intrapersonal intelligence Intrapersonal intelligence Identify skills required for innovation and creativity such as creative thinking Identify what self awareness and motivation entails Identify areas where innovation and generation of new ideas can be applied. Library texts, electronic sources , published journals and the Business management Department Start by Monday March 3rd , 2014 Review by Monday March 24th , 2014 To acquire interpersonal intelligence Interpersonal intelligence Identify skills required for productive interaction with others such as good communication, leadership and listening skills Identify the contexts where leadership and appropriate communication skills can be applied Library texts, electronic sources, the Business Management Department and published journals Start by Monday March 3rd , 2014 Review by Monday March 24th , 2014 References Cunningham, J., & Harney, B., 2012. Strategy and Strategists. Oxford: Oxford University Press. Duhaime, I. M., Stimpert, L., & Chesley, J., 2012. Strategic Thinking: Today’s Business Imperative. New York: Routledge Press. Fairholm, M. R., 2009. Leadership and Organizational Strategy. The Public Sector Innovation Journal, Vol.14, No.1, pp. 1-16. Fawcett, J. N., & McQueen, A., 2011. Perspectives on Cancer Care. Chichester: Wiley-Blackwell Press. Fernando, K., 2013. Strategic Thinking & Its Importance. Retrieved from http://www.strategy-oe.com/docs/resources/Strategic%20Thinking.pdf Grundy, T., 2012. Demystifying Strategy: How to Become a Strategic Thinker. London: Kogan Page Press. Gunn, V., Bell, S., & Kafmann, K., 2013. Thinking Strategically about Employability and Graduate Attributes: Universities and Enhancing Learning for Beyond University. Retrieved from http://www.enhancementthemes.ac.uk/docs/publications/thinking-strategically-about-employability-and-graduate-attributes.pdf?sfvrsn=20 Harvard Business School., 2010. Thinking Strategically: Expert Solutions to Everyday Challenges. Boston: Harvard Business School Press. Henkel, H., 2011. Can Strategic Thinking Be Taught? Journal of Strategic Leadership, Vol. 3, No. 1, pp. 1-6. Krogerus, M., & Tschäppeler, R., 2011. The Decision Book: Fifty Models for Strategic Thinking. London: Profile Books Press. Loehle, C., 1996. Thinking Strategically: Power Tools for Personal and Professional Advancement. New York: Cambridge University Press. Mckeown, M., 2012. The Strategy Book: How to Think and Act Strategically to Deliver Outstanding Results. London: Pearson Publishers. Moseley, G. B., 2009. Managing Health Care Business Strategy. Sudbury: Jones and Bartlett Press. Riddle, D., 2008. Leadership Coaching: When Its Right and When Youre Ready. Greensboro: Center For Creative Leadership Press. Sanders, T. I., 1998. Strategic Thinking and the New Science: Planning in the Midst of Chaos, Complexity and Change. New York: The Free Press. Sloan, J., 2006. Learning to Think Strategically. Burlington: Butterworth-Heinemann Press. Sternberg, R. J., & Kaufman, S. B., 2011. The Cambridge Handbook of Intelligence. New York: Cambridge University Press. Swayne, L. E., Duncan, W. J., & Ginter, P. M., 2008. Strategic Management of Health Care Organizations. San Francisco: Jossey-Bass Press. Tovstiga, G., 2013. Strategy in Practice: A Practitioners Guide to Strategic Thinking. Hoboken: Wiley and Sons Press. Training, M., 2013. Thinking Strategically. New York: MTD Training and Ventus Publishing. Wilson, I., 2003. The Subtle Art of Strategy: Organizational Planning in Uncertain Times. Westport: Praeger Press. Wit, B. D., & Meyer, R., 2005. Strategy Synthesis: Resolving Strategy Paradoxes to Create Competitive Advantage. London: Thomson Learning Press. Read More