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4 Ways to Develop Your Strategic Thinking Skills

• 10 Sep 2020

Think back to the last time you participated in a strategic planning meeting for your organization. You were likely presented with a challenge to solve or goal to achieve.

Do you remember your contributions during that meeting? Did you offer compelling ideas and plot a course of action, or find it difficult to think strategically and develop a solution? Did you have a good idea, but struggle to communicate it in a logical way? Were you an active participant in the conversation, or did others helm it?

Strategic thinking skills are among the most highly sought-after management competencies. Why? Because employees capable of thinking critically, logically, and strategically can have a tremendous impact on a business’s trajectory.

If you want to improve your strategic thinking skills, the good news is that, with the right mindset and practice, you can.

Here are four ways to improve your strategy skills , so the next time you’re involved in a strategic planning meeting, you can ensure your contributions are noticed.

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What Are Strategic Thinking Skills?

Strategic thinking skills are any skills that enable you to use critical thinking to solve complex problems and plan for the future. These skills are essential to accomplish business objectives, overcome obstacles, and address challenges—particularly if they’re projected to take weeks, months, or even years to achieve.

Strategic thinking skills include:

• Analytical skills: To ideate a strategy that helps your organization reach its objectives, you must be capable of analyzing a variety of inputs—from financial statements and KPIs , to market conditions, emerging business trends, and internal resource allocation. This initial analysis is crucial to creating a strategy that aligns with the current reality facing your organization.
• Communication skills: Putting a strategy into place for your company, regardless of its size, requires solid communication skills . The ability to communicate complex ideas, collaborate with internal and external stakeholders, build consensus, and ensure everyone is aligned and working toward shared goals are all central to strategic thinking.
• Problem-solving skills: Strategic planning is often used to solve problems or address challenges, such as missed financial targets, inefficient workflows, or an emerging competitor. Implementing a strategy that addresses the central challenge you face requires you to first understand the problem and its potential solutions. From there, you can craft a strategy that solves it.
• Planning and management skills: Strategy isn’t just about thinking of a solution—it involves implementation, too. Once data has been analyzed, the problem is understood, and a solution has been identified, you need strong planning and management skills to bring everything together.

How to Improve Your Strategic Thinking Skills

1. ask strategic questions.

If you want to improve your strategic thinking skills, one of the simplest things you can do is ask more strategic questions. Doing so allows you to exercise your planning skills, become adept at spotting opportunities, and develop a more strategic mindset you can leverage throughout your career.

According to the Harvard Business School Online course Disruptive Strategy , strategic questions can relate to a challenge, opportunity, or ambiguity you face in your current situation, whether personal or professional. They might, for instance, relate to launching a new business or product, beating a competitor, or structuring your organization for innovation.

It’s also important that your questions apply to your role and responsibilities so you can act on them.

Some examples of strategic questions you might ask include:

• How can we strategically position ourselves to enter a new market?
• What’s the direction for growth for each of our products or services?
• Where will the organization's growth come from in the next five years, and how does it compare with where growth has historically come from?
• How should the organization respond to the threat presented by potentially disruptive competitors ?

2. Observe and Reflect

In addition to asking strategic questions, you need to answer and address them skillfully. One of the most effective ways of accomplishing this is to observe and reflect on your current situation, ensuring any strategy you conceive is grounded in facts.

For example, imagine that the business you work for has begun losing market share for one of its products among its traditional customers. At the same time, it’s gained market share from an entirely new customer base. It’s easy to assume why this might be happening, but doing so can lead you down the wrong path at a critical moment in your organization’s existence.

Instead of blindly following an assumption, gather as much information as possible to use when crafting your strategy. For example, this might include conducting user interviews with new customers to identify the different jobs they hire your product to perform.

Understanding why new customers are attracted to your product can enable you to tailor your marketing strategy and product development to better embrace their needs .

3. Consider Opposing Ideas

Once you’ve landed on a strategy that can help your organization reach its goals, question your assumptions, and put your hypothesis through rigorous testing. By doing so, you can ensure you’re not overlooking another possibility.

Playing devil’s advocate with your ideas can allow you to preemptively identify weaknesses in your argument, and equip you to defend your strategy when others ask questions. It can also help you sharpen the logic skills you need to communicate and execute your strategy.

To develop this skill, get in the habit of questioning yourself any time you’re about to make an assertion. Should you consider a different perspective? Is there another possibility you may have overlooked?

4. Embrace Formal Training

By practicing the methods described above, you can improve your strategic thinking skills at your own pace. However, there are other learning options you can pursue.

If you need to quickly ramp up your strategy skills—to address a pressing need your organization is facing, position yourself for a new role, or finally launch your own business—formal training might be your best option.

For example, by enrolling in the online course Disruptive Strategy , you can discover how to make innovation a reality for your organization. Over six weeks, you’ll learn about the jobs to be done framework and disruptive innovation theory, and build skills to identify and execute high-level strategy.

Cultivating a Strategic Mindset

Whether in the long- or short-term, a strategic mindset can be developed through self-exploration, critical questioning, and formal training.

The advantage of having a strategic mindset is learning how to think rather than what to think. Although you might not always have the right answers, strategic thinking skills can empower you to spot new opportunities, address emerging challenges, and plan for future success.

Are you looking to develop a strategic mindset? Explore our portfolio of online strategy courses and download the free flowchart to determine which is the best fit for you and your goals.

About the Author

Ideas and insights from Harvard Business Publishing Corporate Learning

Strategic Thinking: Because Good Ideas Can Come From Anywhere

As part of our update to the Harvard ManageMentor Strategic Thinking topic, we asked Mason Weintraub, Director of Digital Engagement at Oxfam America, about the importance of strategic thinking. Here’s what Mason had to say:

I often think I’m expected to have all the answers about what to do with digital strategy. But the reality is that I lead a very talented team, and one of the ideas that we have tried to engender on the team is that good ideas can come from anywhere.

“Good ideas can come from anywhere.” Most of us recognize the wisdom embedded in that statement, yet we still see strategy as the realm of our organization’s senior leaders. That may be because of our tendency to equate strategic thinking with strategic planning. Although these practices are related and equally necessary for organizational success, they are actually quite distinct.

Strategic planning vs. strategic thinking

In strategic planning, leaders gather data and decide on the path the organization will take to achieve its goals. With strategic thinking, employees at all levels and in all functions continually scan for new ways to contribute to the organization’s success. They apply those insights as they carry out organizational priorities and provide input to the overall strategy. In this way, strategic thinking is part of everyone’s job – whatever their role or level of responsibility.

Why is this ability to think strategically especially important now? Today’s organizations are more dispersed and less hierarchical than ever before. With the pace of change continuing to rise, it’s no longer feasible for people to wait for “orders from above.” All employees must keep an eye on the future, not just react to what’s happening in the present. They need to look beyond their functional areas to become aware of the bigger context in which they operate. And they have to be agile learners who identify opportunities by challenging their own and their team’s assumptions about how things work in their organization and industry.

Becoming a strategic thinker

With strategic thinking taking on even greater importance in organizations, we’ve made key updates to the Harvard ManageMentor Strategic Thinking topic. The content we’ve added is geared to helping people boost their productivity and effectiveness by making strategic thinking a habit, and includes practical ways that enable them to do so.

One practice is simply making the time to think strategically – something that’s not always easy in today’s fast-paced business settings. Another involves inviting dissent on your team. To make strategic decisions, you need people on all sides of an issue to speak their minds. By letting team members know that speaking up is an important part of their jobs, you free them to provide important input.

Other strategic thinking practices are useful for training yourself to see opportunities and threats well before they happen. For example, most of us are comfortable using convergent thinking – analysis, logic, and reasoning – to come up with the “best” option from a set of choices. We tend to be less adept at divergent thinking, which involves generating lots of ideas with the goal of finding innovative solutions. This isn’t an either-or process: When you first diverge as a team to generate ideas and then converge on a path forward, you improve your ability to design and implement strategic actions.

Don’t let the future surprise you

The future will undoubtedly look a lot different from today. No one can predict tomorrow, but by identifying different scenarios, you and members of your team stretch your thinking about what opportunities and threats might emerge, how they might impact your organization, and what you can do about them. You learn to enact truly meaningful change rather than make incremental improvements. And it all begins with strategic thinking.

How do you foster strategic thinking throughout your organization?

Janice Molloy is a content researcher with Harvard Business Publishing Corporate Learning. Email her at  [email protected] . 

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Strategic Thinking Definition, Skills, Examples, and Steps

Published: 29 January, 2024

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Welcome to Digital Leadership, where we are committed to harnessing emerging technologies and innovative business models to better serve customers. As experts in innovation and digital transformation, our mission is to guide organizations in creating value for all stakeholders, supporting them from strategic conceptualization to effective execution. The ability to think strategically is a cornerstone for success, strategic thinking centres on discovering and cultivating distinctive opportunities to enhance organizational value.

Digital Leadership’s expertise in strategy and execution, invites business entrepreneurs to delve deeper into the realms of strategic thinking for enduring success. We provide Strategic Management Consulting services to empower businesses to elevate their strategic acumen and navigate the complex landscape of value creation . Through collaborative initiatives, we guide organizations in unlocking unique opportunities and ensuring enduring success in today’s dynamic business environment.

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Corporate training, innovation consulting and much more.

This article delves into the intricacies of strategic thinking , outlining its definition, key characteristics, and its vital role in both leadership and business. We will explore the steps to develop strategic thinking skills and provide real-life examples to illustrate its application. As we navigate through this exploration, we will differentiate strategic thinking from strategic planning and highlight its significance in digital transformation strategy.

What is Strategic Thinking?

Strategic thinking is centred on identifying and cultivating distinctive opportunities that can generate value for your organization. It asserts that even non-statistically significant data in various forms deserves thorough consideration to inform decisions about the future. It is a multifaceted concept that goes beyond mere planning. It involves the ability to analyze situations, anticipate future trends, and make informed decisions that contribute to an organization’s long-term success.

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The UNITE Perspectives On Strategy – A Framework For Strategic Thinking

Strategic thinking is a crucial element of effective leadership, involving the ability to envision and plan for the future while navigating the complexities of the present. It goes beyond day-to-day tasks, focusing on long-term business goals and adapting to dynamic environments. Strategic thinking and strategic planning, while interconnected, serve distinct roles in organizational development and decision-making. Strategic thinking is a continuous and dynamic mental activity that envisions the future, identifies opportunities, and fosters innovation. It emphasizes creativity, adaptability, and a proactive mindset, laying the conceptual foundation for an organization’s direction.

Strategic planning is a systematic process that translates strategic thinking into actionable plans. It involves setting specific goals, defining measurable objectives, and outlining the steps and resources needed for implementation. While strategic thinking explores possibilities and challenges assumptions, strategic planning focuses on specific actions, resource allocation, and timelines. Strategic thinking is future-oriented and adaptable, providing the vision upon which strategic planning builds the roadmap for organizational development. Both are essential components, working collaboratively to navigate the complexities of the business landscape.

At Digital Leadership, strategic thinking is perceived as the art of proactively shaping an organization’s future. This involves anticipating challenges, recognizing opportunities, and aligning resources effectively. To delve deeper into the intricacies of strategic thinking and its role in crafting innovative business strategies , explore the insights provided in our book, “How to Create Innovation.” It serves as a comprehensive guide, offering valuable perspectives on navigating the dynamic landscape of strategic decision-making and fostering a culture of innovation within your organization.

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Strategic Thinking Skills

Enhancing strategic thinking skills is crucial for effective decision-making and leadership. Here are key skills compiled from various sources:

• Active Listening: Engage attentively to comprehend diverse perspectives.
• Analytical Skills: Utilize data and insights to make informed decisions.
• Implement the Plan: Execute strategies efficiently to achieve business goals.
• Observing and Seeking Trends: Stay vigilant to identify emerging patterns and trends.
• Question Everything: Foster a questioning mindset to challenge assumptions.
• Strategic Thinking: Cultivate the ability to envision and plan for the future.
• Understand the Consequences: Evaluate potential outcomes and impacts.
• Articulate Your Goals Clearly: Clearly express your objectives for better alignment.
• Being Creative: Embrace creativity to generate innovative solutions.
• Communicate Clearly: Convey ideas and strategies with clarity.
• Consider Opposing Ideas: Encourage diverse viewpoints for comprehensive decision-making.
• Critical Thinking: Assess information objectively to make well-founded decisions.
• Get Other Perspectives: Seek input from different sources to broaden your understanding.
• Learn and Improve: Embrace a continuous learning mindset for personal and professional growth.
• Vision and Purpose: Align decisions with a clear vision and overarching purpose.
• Prioritization: Effectively prioritize tasks and goals based on strategic importance.
• Adaptability: Be flexible and adapt strategies to changing circumstances.
• Ask Strategic Questions: Pose insightful questions to deepen strategic insights.
• Be Aware of Bias: Recognize and mitigate personal biases in decision-making.
• Analysis: Break down complex situations into manageable components for analysis.
• Scenario Planning: Anticipate potential scenarios and plan accordingly.

These skills collectively contribute to developing a robust strategic thinking mindset, essential for navigating complex business landscapes.

How to Develop Strategic Thinking Skills

Acquiring the art of strategic thinking is a developed skill, not an innate talent. This section outlines practical steps to guide individuals in enhancing their strategic thinking skills . Tailored for aspiring strategic thinkers and leaders, these steps offer valuable insights to successfully navigate the complexities of the business landscape.

(1) Pose Thoughtful Queries for Strategic Insights

Challenge conventional wisdom by formulating insightful questions that stimulate critical thinking, fostering a deeper understanding of issues and encouraging innovative solutions.

(2) Observe, Reflect, and Stay Informed

Allocate time to observe industry trends and changes, reflecting on these observations to gain valuable insights that inform strategic decisions.

(3) Embrace Diverse Perspectives Through Opposing Ideas

Foster a culture that values diverse viewpoints, actively seeking and considering opposing ideas to formulate well-rounded and robust strategic plans.

(4) Invest in Continuous Learning and Professional Development

Systematically refine strategic thinking skills through continuous learning. Enroll in courses, workshops, or programs dedicated to enhancing strategic thinking.

(5) Master Your Organization and Industry Dynamics

Acquire in-depth knowledge of your organization, industry, and market sector to make informed strategic decisions based on a comprehensive understanding of internal and external factors.

(6) Prioritize Strategic Thinking with Dedicated Time

Schedule specific time slots for focused strategic thinking in your routine. Utilize this time to address fundamental questions about your organization’s direction, challenges, and opportunities.

(7) Effectively Communicate Strategic Insights to Influence

Cultivate strong communication skills to articulate strategic insights clearly. Effective communication is pivotal for gaining support and buy-in for proposed strategic initiatives.

By systematically incorporating these steps into your professional journey, you actively develop and refine your strategic thinking skills. This intentional approach empowers you to confidently navigate the complexities of strategic decision-making.

Strategic Thinking Examples

Strategic thinking manifests in various scenarios, demonstrating its impact on organizational success. Below are real-life examples showcasing how strategic thinking has influenced key decisions and outcomes:

• Distinguish between urgent and important tasks to allocate resources efficiently and achieve optimal outcomes.
• Strategically allocate resources based on the prioritization of tasks, ensuring maximum efficiency and effectiveness.
• Systematically analyze customer feedback to identify trends and insights, informing strategic decisions for product enhancements and customer satisfaction.
• Develop a strategic roadmap by setting both long-term and short-term business goals aligned with the organization’s overarching vision.
• Utilize past sales data to derive insights, identify patterns, and inform strategic decisions for future product development and market positioning.
• Conduct thorough market analysis to identify gaps and opportunities, allowing for strategic entry or expansion into specific market segments.
• Evaluate the alignment between products and market demands, ensuring a strategic fit that resonates with the target audience.
• Develop and implement a deliberate brand positioning strategy that aligns with market trends, consumer preferences, and organizational values.

These examples showcase how strategic thinking is applied across various facets of business operations. By integrating these practices, organizations can foster a strategic mindset, leading to informed decision-making and sustainable success.

In a real-world scenario, imagine a tech company facing fierce market competition and disruptive technological shifts. A strategic thinker in the managerial role would first pinpoint the challenges: intense competition and the impact of tech disruptions. By actively analyzing industry trends and asking crucial questions, such as how to stand out in a crowded market, strategic thinking takes shape.

Encouraging team discussions to gather diverse perspectives ensures a comprehensive understanding of potential strategies. Crafting innovative solutions collaboratively, like exploring unique product features or strategic partnerships, follows. Proactively anticipating future challenges and formulating contingency plans showcase the hands-on nature of strategic thinking.

Effective communication of the strategic vision is crucial. Aligning stakeholders, fostering commitment to the plan, and conveying a well-defined vision are integral. This example highlights that strategic thinking is not just theory; it’s a practical skill with tangible outcomes in navigating complex business landscapes.

What is Strategic Thinking in Leadership

Strategic thinking in leadership goes beyond day-to-day decision-making; it involves a comprehensive approach to envisioning and navigating an organization’s future. It’s the capability of leaders to analyze the current landscape, anticipate future challenges and opportunities, and formulate innovative strategies to drive the organization toward success. Here’s a deeper exploration of what strategic thinking entails in leadership:

• Visionary Leadership: Strategic thinking leaders possess a visionary outlook, setting a clear and inspiring direction for the organization’s future.
• Long-Term Planning: Instead of focusing solely on immediate concerns, strategic leaders plan for the long term, considering sustainable growth and evolution.
• Adaptability: Leaders who think strategically are adaptable, and ready to adjust strategies in response to changing circumstances and market dynamics.
• Risk Management: They evaluate risks meticulously, making calculated decisions that balance potential rewards with potential pitfalls.
• Innovation Advocacy: Encouraging innovation is a key aspect. Strategic leaders foster a culture where novel ideas are valued, leading to continuous improvement.
• Decision-Making: Strategic thinking leaders make decisions based on a holistic understanding of the organization’s goals, industry trends, and competitive landscape.
• Collaborative Approach: They understand the importance of collaboration, seeking input from diverse teams to enhance the quality of strategic decisions.
• Communication Skills: Effective communication is paramount. Leaders articulate the strategic vision in a way that inspires and aligns the entire organization.
• Alignment with Values: Strategic leaders ensure that strategic initiatives align with the organization’s core values and mission.
• Continuous Learning: Leaders committed to strategic thinking engage in continuous learning, staying informed about industry advancements and emerging trends.

In essence, strategic thinking in leadership is about proactively shaping the organization’s future, and making informed choices that lead to sustained success and relevance in a dynamic business environment.

Key Characteristics of Strategic Thinking

Strategic thinking is a multifaceted skill encompassing various key characteristics that contribute to its effectiveness. These attributes set strategic thinkers apart and form the foundation for navigating complex business landscapes. Here are the key characteristics of strategic thinking:

• Forward-Thinking: Strategic thinkers have a future-oriented mindset, anticipating trends, challenges, and opportunities to proactively shape the organization’s destiny.
• Analytical Acumen: The ability to analyze vast amounts of information, discern patterns, and derive meaningful insights is crucial for strategic thinking.
• Innovative Vision: Strategic thinkers embrace innovation, seeking novel solutions and envisioning possibilities that disrupt conventional norms.
• Adaptability: Recognizing the dynamic nature of the business environment, strategic thinkers are adaptable and agile in responding to changes and uncertainties.
• Holistic Perspective: They consider the bigger picture, understanding the interconnectedness of various elements within and outside the organization.
• Risk Assessment: Strategic thinkers evaluate risks objectively, weighing potential rewards against potential drawbacks and making informed decisions.
• Long-Term Orientation: Rather than focusing solely on short-term gains, strategic thinkers prioritize long-term objectives and sustainable growth.
• Open-Mindedness: Embracing diverse perspectives and being receptive to new ideas fosters a climate of creativity and robust strategic planning.
• Effective Communication: Strategic thinkers communicate their vision and plans clearly, ensuring alignment and understanding throughout the organization.
• Results-Driven: Ultimately, strategic thinkers are driven by results, aiming to create lasting value and impact for the organization’s stakeholders.

These key characteristics collectively empower individuals to think strategically, guiding organizations toward success in today’s dynamic and competitive business landscape.

Strategic Thinking in Business

Strategic thinking in the realm of business is a dynamic and critical process that involves the exploration and refinement of existing business models . This approach entails a comprehensive evaluation of the strengths and weaknesses inherent in the current model. By strategically thinking, businesses can foster innovation, identify new revenue streams , optimise operational processes, and adjust to the evolving demands of the market. This strategic perspective is essential for staying competitive and ensuring long-term success in the business landscape.

Applying Strategic Thinking to Business Models

Strategic thinking serves as a catalyst for transforming and optimizing traditional business models. This process entails a meticulous examination of the current model, pinpointing both its strengths and weaknesses. Through strategic thinking, businesses can unleash innovation by exploring novel revenue streams, refining operational processes, and adapting to the ever-changing landscape of market demands. This application of strategic thinking is instrumental in steering businesses towards resilience, growth, and sustained success.

The Business Model Canvas becomes a crucial tool in the strategic thinking process. It provides a visual framework for understanding, designing, and reinventing business models. By leveraging the canvas, organizations gain insights into key components such as value proposition , customer segments, channels , and cost structures. This clarity enhances strategic decision-making and fosters a more agile and adaptive business model.

The UNITE Business Model Canvas

The significance of strategic thinking in digital transformation.

In digital transformation, strategic thinking holds immense significance. It serves as the guiding force that shapes and directs the course of digital initiatives. It ensures a holistic approach, considering not only technological aspects but also the broader implications on business models, processes, and customer experiences. By strategically navigating the complexities of the digital transformation strategy , organizations can leverage emerging technologies effectively, enhance operational efficiency, and stay ahead in the competitive digital landscape. The application of strategic thinking becomes a linchpin for organizations aiming to achieve meaningful and sustainable digital transformation outcomes.

Real-Life Examples of Strategic Thinking in Business

To illustrate the tangible impact of strategic thinking, let’s delve into real-life examples where organizations successfully applied this approach to achieve remarkable outcomes.

• Apple Inc.: Apple’s strategic thinking is evident in its continuous innovation and product development. The introduction of the iPod, iPhone, and iPad showcased a forward-thinking approach that revolutionized the consumer electronics industry.
• Amazon: Amazon’s strategic thinking is exemplified in its customer-centric model and diversification. The company started as an online bookstore and strategically expanded into diverse product categories, cloud services (AWS), and even original content creation.
• Tesla: Tesla’s strategic thinking is embodied in its pursuit of sustainable energy solutions. The decision to focus on electric vehicles, solar energy, and energy storage reflects a long-term vision that goes beyond automotive manufacturing.
• Netflix: Netflix’s strategic thinking is evident in its shift from a DVD rental service to a global streaming platform. Embracing digital disruption, Netflix strategically invested in original content creation, transforming the entertainment industry.
• Google: Google’s strategic thinking is showcased in its commitment to innovation. From dominating the search engine market, Google expanded into diverse areas such as online advertising, mobile operating systems (Android), and artificial intelligence.

Differentiating Strategic Thinking from Other Types of Thinking

Thinking is a multifaceted cognitive process that varies across different contexts and objectives. Let’s delve into the distinctions between strategic thinking and other types of thinking:

• Strategic Thinking: Involves envisioning the future, identifying opportunities, and devising plans to achieve long-term goals.
• Critical Thinking: Focuses on analyzing, evaluating, and forming judgments about information or situations, emphasizing logical reasoning.
• Strategic Thinking: Emphasizes planning and decision-making for achieving organizational objectives, often involving a systematic approach.
• Creative Thinking: Involves generating novel ideas, solutions, or approaches, fostering innovation and unconventional thoughts.
• Strategic Thinking: Encompasses a holistic view, considering the overall direction and positioning of the organization.
• Analytical Thinking: Concentrates on breaking down complex problems into smaller components for in-depth examination and understanding.
• Strategic Thinking: Primarily concerned with defining goals, formulating plans, and aligning resources to achieve a predefined vision.
• Design Thinking: Centers around a human-centric approach, empathizing with end-users, and iteratively prototyping solutions for complex problems.
• Strategic Thinking: Focuses on organizational strategy, often involving hierarchical planning and coordination.
• Systems Thinking: Considers the interrelated components and relationships within a system, emphasizing holistic understanding and feedback loops.
• Strategic Thinking: Involves dynamic, adaptive, and non-linear planning, considering various scenarios and external influences.
• Linear Thinking: Follows a sequential and step-by-step approach to problem-solving without necessarily accounting for broader systemic factors.
• Strategic Thinking: Concentrates on forward-looking planning, often in a structured manner, to gain a competitive advantage.
• Lateral Thinking: Encourages unconventional and creative approaches to problem-solving, challenging traditional thought patterns.

Understanding these differences is crucial as it highlights the versatility of thinking processes and underscores the need for a well-rounded cognitive toolkit, incorporating strategic thinking when long-term planning and vision are paramount.

In conclusion, strategic thinking is the compass that guides businesses through the complexities of today’s ever-evolving landscape. By developing and nurturing strategic thinking skills , organizations can pave the way for sustained success and create value for everyone they serve. At Digital Leadership, we are passionate about empowering organizations to embrace strategic thinking. If you’re ready to elevate your strategic approach, contact us today for a transformative journey from strategy to execution.

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Make Time for Strategic Thinking Every Day

If you believe that only senior executives need to think strategically, think again. No matter what level you’re at, strategic thinking is a critical skill — one that can always be improved. To hone your capacity to see the big picture, start by making sure you have a solid understanding of the industry context and […]

If you believe that only senior executives need to think strategically, think again. No matter what level you’re at, strategic thinking is a critical skill — one that can always be improved. To hone your capacity to see the big picture, start by making sure you have a solid understanding of the industry context and business drivers. Make it a routine to explore the internal trends in your day-to-day work. Pay attention to the issues that get raised repeatedly, and synthesize the common obstacles your colleagues face. Be proactive about connecting with peers in your organization and in your industry to understand their observations of the marketplace, and share this information across your network. Take the time to understand the unique information and perspective that your job function contributes to the company. Thinking at this higher level will position you to be more strategic in your role.

Source: Adapted from “4 Ways to Improve Your Strategic Thinking Skills,” by Nina Bowman

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Critical Thinking vs. Strategic Thinking (Strategy As a Critical Thinker)

When it comes to critical thinking vs. strategic thinking, the best way to explain it is to say that one is something you use while the other is something you do. The main differences between them are how far into the future they think, when to use them, and if one needs the other.

Short-Term vs. Long-Term

Critical thinking is short-term analysis while strategic thinking involves planning and looking at futuristic outcomes. Critical thinkers will use data at hand to fix an issue or figure something out while the strategic thinker will look at how that problem is part of a bigger issue.

To better understand how each one works, let’s use an example in chess. Some of the greatest thinkers have played chess and for good reason, but strategy overrides critical thinking. That’s because a critical thinker will think of the implications of the current move.

The strategic opponent has already planned 5 moves ahead and used critical thinking to map out possible scenarios. Critical thinking is always useful, but planning for what’s next is exclusive to strategic thinking .

The Book Metaphor

A good way to further break down the short- versus long-term concept is with a book . The grand-scheme strategic thinker will read a summary of each chapter and pass judgment on the book as a whole based on those brief descriptions.

The detail-oriented critical thinker will actually read each chapter and have a better understanding of characters and plot, which might influence a different decision.

Application

  To identify the differences between critical thinking vs. strategic thinking , it might help to know when each one should be used. Short-term critical thinking is commonly used in academic-related things, like deciphering code or comprehension.

Strategic thinking is better suited for business and predicting outcomes, from marketing manipulation to product sales in a specific industry. You can use strategy to line up the proverbial ducks in a row before making a move for the desired outcome.

This is especially useful in management or leadership positions of any kind. In a boardroom, you use strategy to plan the best pitch. In a courtroom, you angle your position to fit the jury. Of course, one of the best comparisons between the styles of thought is war.

You May Have Won the Battle…

There are dozens of thoughts on critical versus strategic thinking, but perhaps the simplest way to understand it is like this: The critical thinker will win a battle because they’ll put their soldiers in the right places and use the exact weaponry needed.

However, the strategist will eventually win the war because they’ll out-maneuver their opponent. In fact, they might even lose a battle on purpose if it will give a false sense of confidence or open another route to victory.

  Applied to the business metaphor earlier, the critical thinker will understand the product being sold and analyze all the user data but the strategic manager will know how to sell it to the consumers and investors.

One Without the Other

One of the most important things to understand is that critical thinking is involved in strategic thinking, but strategic thinking isn’t part of critical thought. While that is partly due to the fact that critical thinking is in the moment, it’s also because strategy is a toolbag.

  With critical thought, the grand scheme doesn’t affect data or analysis so it becomes a means to an end. The manager in the example above uses the data collected by the critical thinkers to manipulate the room and use that data for their overall agenda.

  You use critical thinking to solve a bigger problem, so you could think of it like a hammer and nails. You can use that hammer to fix a broken leg on a wooden chair, but the strategy is to have a seat at the table.

  All of the future predictions and negotiations that take place are strategic, while the numbers and data that are compiled and analyzed are critical thinking.

Can Doesn’t Mean You Should

Keep in mind, though, that just because it doesn’t flow both ways you still want to use critical thinking when planning strategy. You might still arrive at the same goal, but critical thinking will help you make the best decisions along the way.

That’s because critical thinking can be just that: Critical. Strategic thinking takes into account all factors and makes a judgment based on what they think will happen, but it’s a vague approach unless directed by information obtained through critical thinking.

Especially when human nature is involved, critical thinking is paramount to make the best decisions. Statistical trends, past decisions, or interest in business ventures can all create an opportunity that would otherwise be missed.

  To go back to the book metaphor earlier, a strategist with critical thinking will know the full scope of the book’s content and make the best-informed judgment. That’s why any critical thinker with ambition can move up into a strategic position if they put their mind to it.

How Can I Show Strategy As a Critical Thinker?

  You may be wondering if being a critical thinker means you’re resigned to always being an analyst or number-cruncher as opposed to a leadership role. Not only can critical thinking be a tool for strategy, but it’s encouraged, so you can use that to your advantage.

With all of the knowledge, try to think how that data or information could affect larger change or bring about a new vision. Innovation and progressive thinking are, like critical thinking, sought after for positions of strategy so that’s a great step to take.

Since critical thinking is problem-solving, you can also suggest a better solution that might prevent future issues of the same kind. It’s still technically critical thinking, but the strategy of change crosses that line.

Final Thoughts

Strategic thinking is all about the bigger picture. You can use critical thinking in strategy, but the two differ in short- or long-term thinking and what field they’re most effective in. Remember to use one in the other and see yourself to victory in whatever you do!

https://www.headscratchers.com/Post_January_2017.html

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Thinking strategically

In the late 1970s, Fred Gluck led an effort to revitalize McKinsey’s thinking on strategy while, in parallel, Tom Peters and Robert Waterman were leading a similar effort to reinvent the Firm’s thinking on organization. The first published product of Gluck’s strategy initiative was a 1978 staff paper, "The evolution of strategic management."

The ostensible purpose of Gluck’s article was to throw light on the then-popular but ill-defined term "strategic management," using data from a recent McKinsey study of formal strategic planning in corporations. The authors concluded that such planning routinely evolves through four distinct phases of development, rising in sophistication from simple year-to-year budgeting to strategic management, in which strategic planning and everyday management are inextricably intertwined.

But the power of the article comes from the authors’ insights into the true nature of strategy and what constitutes high-quality strategic thinking. The article is also noteworthy for setting forth McKinsey’s original definition of strategy as "an integrated set of actions designed to create a sustainable advantage over competitors" and includes a description of the well-known "nine-box" matrix that formed the basis of McKinsey’s approach to business portfolio analysis.

Ten years later, a team from the Firm’s Australian office took portfolio analysis a step further. Rather than basing portfolio strategy only on metrics of a business unit’s absolute attractiveness, as suggested by the nine-box matrix, John Stuckey and Ken McLeod recommended adding a key new decision variable: how well-suited is the parent company to run the business unit as compared with other possible owners? If the parent is best suited to extract value from a unit, it often makes no sense to sell, even if that unit doesn’t compete in a particularly profitable industry. Conversely, if a parent company determines that it is not the best possible owner of a business unit, the parent maximizes value by selling it to the most appropriate owner, even if the unit happens to be in a business that is fundamentally attractive. In short, the "market-activated corporate strategy framework" prompts managers to view their portfolios with an investor’s value-maximizing eye.

The evolution of strategic management

Frederick W. Gluck, Stephen P. Kaufman, and A. Steven Walleck

A minor but pervasive frustration that seems to be unique to management as a profession is the rapid obsolescence of its jargon. As soon as a new management concept emerges, it becomes popularized as a buzzword, generalized, overused, and misused until its underlying substance has been blunted past recognition. The same fate could easily befall one of the brightest new concepts to come along lately: strategic management.

In seeking to understand what strategic management is, we have conducted a major study of the planning systems at large corporations. This study is unique in that it attempts to pass judgment on the quality of the business plans produced rather than only on the planning process.

We found that planning routinely progresses through four discrete phases of development. The first phase, financial planning, is the most basic and can be found at all companies. It is simply the process of setting annual budgets and using them to monitor progress. As financial planners extend their time horizons beyond the current year, they often cross into forecast-based planning, which is the second phase. A few companies have advanced beyond forecast-based planning by entering the third phase, which entails a profound leap forward in the effectiveness of strategic planning. We call this phase externally oriented planning, since it derives many of its advantages from more thorough and creative analyses of market trends, customers, and the competition. Only phase four—which is really a systematic, company-wide embodiment of externally oriented planning—earns the appellation strategic management, and its practitioners are very few indeed.

It doesn’t appear possible to skip a step in the process, because at each phase a company adopts attitudes and gains capabilities needed in the phases to come. Many companies have enjoyed considerable success without advancing beyond the rudimentary levels of strategic development. Some large, successful enterprises, for instance, are still firmly embedded in the forecast-based planning phase. You might well ask, are these companies somehow slipping behind, or are they simply responding appropriately to an environment that changes more slowly? The answer must be determined on a case-by-case basis.

Phase one: Financial planning

Financial planning, as we have said, is nothing more than the familiar annual budgeting process. Managers forecast revenue, costs, and capital needs a year in advance and use these numbers to benchmark performance. In well over half of the companies McKinsey studied—including some highly successful ones—formal planning was still at this most basic phase.

Note the word formal. Many firms that lack a sophisticated formal planning process make up for it with an informal "implicit strategy" worked out by the chief executive officer and a few top managers. Formal strategic planning, in fact, is just one of the possible sources of sound strategy development. There are at least two others: strategic thinking and opportunistic strategic decision making (Exhibit 1). All three routes can result in an effective strategy, which we define as "an integrated set of actions designed to create a sustainable advantage over competitors."

Phase-one companies, then, do have strategies, even though such companies often lack a formal system for planning them. The quality of the strategy of such a company depends largely on the entrepreneurial vigor of its CEO and other top executives. Do they have a good feel for the competition? Do they know their own cost structures? If the answer to such questions is yes, there may be little advantage to formal strategic planning. Ad-hoc studies by task forces and systematic communication of the essence of the strategy to those who need to know may suffice.

Phase two: Forecast-based planning

Still, most large enterprises are too complex to be managed with only an implicit strategy. Companies usually learn the shortcomings of phase-one planning as their treasurers struggle to estimate capital needs and make trade-offs among various financing plans, based on no more than a one-year budget. Ultimately, the burden becomes unbearable, and the company evolves toward phase two. At first, phase-two planning differs little from annual budgeting except that it covers a longer period of time. Very soon, however, planners become frustrated because the real world does not behave as their extrapolations predict. Their first response is usually to develop more sophisticated forecasting tools: trend analysis, regression models, and, finally, simulation models.

This initial response brings some improvement, but sooner or later all extrapolative models fail. At this point, a creative spark stirs the imaginations of the planners. They suddenly realize that their responsibility is not to chart the future—which is, in fact, impossible—but, rather, to lay out for managers the key issues facing the company. We call this spark "issue orientation."

The tough strategic issue that most often triggers the move to issue orientation is the problem of resource allocation: how to set up a flow of capital and other resources among the business units of a diversified company. The technique most commonly applied to this problem is portfolio analysis, a means of depicting a diversified company’s business units in a way that suggests which units should be kept and which sold off and how financial resources should be allocated among them. McKinsey’s standard portfolio analysis tool is the nine-box matrix (Exhibit 2), in which each business unit is plotted along two dimensions: the attractiveness of the relevant industry and the unit’s competitive strength within that industry. Units below the diagonal of the matrix are sold, liquidated, or run purely for cash, and they are allowed to consume little in the way of new capital. Those on the diagonal—marked "Selectivity, earnings"—can be candidates for selective investment. And business units above the diagonal, as the label suggests, should pursue strategies of either selective or aggressive investment and growth.

Phase three: Externally oriented planning

Once planners see their main role as identifying issues, they shift their attention from the details of their companies’ activities to the outside world, where the most profound issues reside. The planners’ in-depth analyses, previously reserved for inwardly focused financial projections, are now turned outward, to customers, potential customers, competitors, suppliers, and others. This outward focus is the chief characteristic of phase three: externally oriented planning.

The process can be time-consuming and rigorous—scrutinizing the outside world is a much larger undertaking than studying the operations of a single company—but it can also pay off dramatically. Take the example of a heavy-equipment maker that spent nine person-months reverse engineering its competitor’s product, reconstructing that competitor’s manufacturing facilities on paper, and estimating its production costs. The result: the company decided that no achievable level of cost reduction could meet the competition and that it therefore made no sense to seek a competitive advantage on price.

Phase-three plans can sometimes achieve this kind of dramatic impact because they are very different from the kind of static, deterministic, sterile plans that result from phase-two efforts. In particular, they share the following features:

Phase-three resource allocation is dynamic rather than static. The planner looks for opportunities to "shift the dot" of a business into a more attractive region of the portfolio matrix. This can be done by creating new capabilities that will help the company meet the most important prerequisite for success within a market, by redefining the market itself, or by changing the customers’ buying criteria to correspond to the company’s strengths.

Phase-three plans are adaptive rather than deterministic. They do not work from a standard strategy, such as "invest for growth." Instead, they continually aim to uncover new ways of defining and satisfying customer needs, new ways of competing more effectively, and new products or services.

Phase-three strategies are often surprise strategies. The competition often does not even recognize them as a threat until after they have taken effect.

Phase-three plans often recommend not one course of action but several, acknowledging the trade-offs among them. This multitude of possibilities is precisely what makes phase three very uncomfortable for top managers. As in-depth dynamic planning spreads through the organization, top managers realize that they cannot control every important decision. Of course, lower-level staff members often make key decisions under phase-one and phase-two regimes, but because phase three makes this process explicit, it is more unsettling for top managers and spurs them to invest even more in the strategic-planning process.

Phase Four: Strategic management

When this investment is successful, the result is strategic management: the melding of strategic planning and everyday management into a single, seamless process. In phase four, it is not that planning techniques have become more sophisticated than they were in phase three but that they have become inseparable from the process of management itself. No longer is planning a yearly, or even quarterly, activity. Instead, it is woven into the fabric of operational decision making.

No more than a few of the world’s companies—mainly diversified multinationals that manufacture electrical and electronic products—have reached this fourth phase. Perhaps the need to plan for hundreds of fast-evolving businesses serving thousands of product markets in dozens of nations has accelerated evolution at these companies. Observing them can teach executives much about strategic management.

The key factor that distinguishes strategically managed companies from their counterparts in phase three is not the sophistication of their planning techniques but rather the care and thoroughness with which they link strategic planning to operational decision making. This often boils down to the following five attributes:

A well-understood conceptual framework that sorts out the many interrelated types of strategic issues. This framework is defined by tomorrow’s strategic issues rather than by today’s organizational structure. Strategic issues are hung on the framework like ornaments on a Christmas tree. Top management supervises the process and decides which issues it must address and which should be assigned to operating managers.

Strategic thinking capabilities that are widespread throughout the company, not limited to the top echelons.

A process for negotiating trade-offs among competing objectives that involves a series of feedback loops rather than a sequence of planning submissions. A well-conceived strategy plans for the resources required and, where resources are constrained, seeks alternatives.

A performance review system that focuses the attention of top managers on key problem and opportunity areas, without forcing those managers to struggle through an in-depth review of each business unit’s strategy every year.

A motivational system and management values that reward and promote the exercise of strategic thinking.

Although it is not possible to make everyone at a company into a brilliant strategic thinker, it is possible to achieve widespread recognition of what strategic thinking is. This understanding is based on some relatively simple rules.

Strategic thinking seeks hard, fact-based, logical information. Strategists are acutely uncomfortable with vague concepts like "synergy." They do not accept generalized theories of economic behavior but look for underlying market mechanisms and action plans that will accomplish the end they seek.

Strategic thinking questions everyone’s unquestioned assumptions. Most business executives, for example, regard government regulation as a bothersome interference in their affairs. But a few companies appear to have revised that assumption and may be trying to participate actively in the formation of regulatory policies to gain a competitive edge.

Strategic thinking is characterized by an all-pervasive unwillingness to expend resources. A strategist is always looking for opportunities to win at low or, better yet, no cost.

Strategic thinking is usually indirect and unexpected rather than head-on and predictable. Basil Henry Liddell Hart, probably the foremost thinker on military strategy in the 20th century, has written, "To move along the line of natural expectation consolidates the opponent’s balance and thus his resisting power." "In strategy," says Liddell Hart, "the longest way around is often the shortest way home." 1 1. See B. H. Liddell Hart, Strategy , second edition, Columbus, Ohio: Meridian Books, 1991.

It appears likely that strategic management will improve a company’s long-term business success. Top executives in strategically managed companies point with pride to many effective business strategies supported by coherent functional plans. In every case, they can identify individual successes that have repaid many times over the company’s increased investment in planning.

About the Authors

Frederick Gluck  was the managing director of McKinsey from 1988 to 1994;  Stephen Kaufman  and Steven Walleck  are alumni of McKinsey’s Cleveland office. This article is adapted from a McKinsey staff paper dated October 1978.

MACS: The market-activated corporate strategy framework

Ken McLeod and John Stuckey

McKinsey’s nine-box strategy matrix, prevalent in the 1970s, plotted the attractiveness of a given industry along one axis and the competitive position of a particular business unit in that industry along the other. Thus, the matrix could reduce the value-creation potential of a company’s many business units to a single, digestible chart.

However, the nine-box matrix applied only to product markets: those in which companies sell goods and services to customers. Because a comprehensive strategy must also help a parent company win in the market for corporate control—where business units themselves are bought, sold, spun off, and taken private—we have developed an analytical tool called the market-activated corporate strategy (MACS) framework.

MACS represents much of McKinsey’s most recent thinking in strategy and finance. Like the old nine-box matrix, MACS includes a measure of each business unit’s stand-alone value within the corporation, but it adds a measure of a business unit’s fitness for sale to other companies. This new measure is what makes MACS especially useful.

The key insight of MACS is that a corporation’s ability to extract value from a business unit relative to other potential owners should determine whether the corporation ought to hold onto the unit in question. In particular, this issue should not be decided by the value of the business unit viewed in isolation. Thus, decisions about whether to sell off a business unit may have less to do with how unattractive it really is (the main concern of the nine-box matrix) and more to do with whether a company is, for whatever reason, particularly well suited to run it.

In the MACS matrix, the axes from the old nine-box framework measuring the industry’s attractiveness and the business unit’s ability to compete have been collapsed into a single horizontal axis, representing a business unit’s potential for creating value as a stand-alone enterprise (Exhibit 3). The vertical axis in MACS represents a parent company’s ability, relative to other potential owners, to extract value from a business unit. And it is this second measure that makes MACS unique.

Managers can use MACS just as they used the nine-box tool, by representing each business unit as a bubble whose radius is proportional to the sales, the funds employed, or the value added by that unit. The resulting chart can be used to plan acquisitions or divestitures and to identify the sorts of institutional skill-building efforts that the parent corporation should be engaged in.

The horizontal dimension: The potential to create value

The horizontal dimension of a MACS matrix shows a business unit’s potential value as an optimally managed stand-alone enterprise. Sometimes, this measure can be qualitative. When precision is needed, though, you can calculate the maximum potential net present value (NPV) of the business unit and then scale that NPV by some factor—such as sales, value added, or funds employed—to make it comparable to the values of the other business units. If the business unit might be better run under different managers, its value is appraised as if they already do manage it, since the goal is to estimate optimal, not actual, value.

That optimal value depends on three basic factors:

Industry attractiveness is a function of the structure of an industry and the conduct of its players, both of which can be assessed using the structure-conduct-performance (SCP) model. Start by considering the external forces impinging on an industry, such as new technologies, government policies, and lifestyle changes. Then consider the industry’s structure, including the economics of supply, demand, and the industry chain. Finally, look at the conduct and the financial performance of the industry’s players. The feedback loops shown in Exhibit 4 interact over time to determine the attractiveness of the industry at any given moment. 

The position of your business unit within its industry depends on its ability to sustain higher prices or lower costs than the competition does. Assess this ability by considering the business unit as a value delivery system, where "value" means benefits to buyers minus price. 2 2. See Michael J. Lanning and Edward G. Michaels, 'A business is a value delivery system,' on page 53 of this anthology.

Chances to improve the attractiveness of the industry or the business unit’s competitive position within it come in two forms: opportunities to do a better job of managing internally and possible ways of shaping the structure of the industry or the conduct of its participants.

The vertical dimension: The ability to extract value

The vertical axis of the MACS matrix measures a corporation’s relative ability to extract value from each business unit in its portfolio. The parent can be classified as "in the pack," if it is no better suited than other companies to extract value from a particular business unit, or as a "natural owner," if it is uniquely suited for the job. The strength of this vertical dimension is that it makes explicit the true requirement for corporate performance: extracting more value from assets than anyone else can.

Many qualities can make a corporation the natural owner of a certain business unit. The parent corporation may be able to envision the future shape of the industry—and therefore to buy, sell, and manipulate assets in a way that anticipates a new equilibrium. It may excel at internal control: cutting costs, squeezing suppliers, and so on. It may have other businesses that can share resources with the new unit or transfer intermediate products or services to and from it. (In our experience, corporations tend to overvalue synergies that fall into this latter category. Believing that the internal transfer of goods and services is always a good thing, these companies never consider the advantages of arm’s-length market transactions.) Finally, there may be financial or technical factors that determine, to one extent or other, the natural owner of a business unit. These can include taxation, owners’ incentives, imperfect information, and differing valuation techniques.

Using the framework

Once a company’s business units have been located on the MACS matrix, the chart can be used to plan preliminary strategies for each of them. The main principle guiding this process should be the primary one behind MACS itself: the decision about whether a unit ought to be part of a company’s portfolio hangs more on that company’s relative ability to extract value from the unit than on its intrinsic value viewed in isolation.

The matrix itself can suggest some powerful strategic prescriptions—for example:

Divest structurally attractive businesses if they are worth more to someone else.

Retain structurally mediocre (or even poor) businesses if you can coax more value out of them than other owners could.

Give top priority to business units that lie toward the far left of the matrix—either by developing them internally if you are their natural owner or by selling them as soon as possible if someone else is.

Consider improving a business unit and selling it to its natural owner if you are well equipped to increase the value of the business unit through internal improvements but not in the best position to run it once it is in top shape.

Of course, the MACS matrix is just a snapshot. Sometimes, a parent company can change the way it extracts value, and in so doing it can become the natural owner of a business even if it wasn’t previously. But such a change will come at a cost to the parent and to other units in its portfolio. The manager’s objective is to find the combination of corporate capabilities and business units that provides the best overall scope for creating value.

MACS, a descendent of the old nine-box matrix, packages much of McKinsey’s thinking on strategy and finance. We have found that it serves well as a means of assessing strategy along the critical dimensions of value creation potential and relative ability to extract value.

Ken McLeod  is an alumnus of McKinsey’s Melbourne office, and  John Stuckey  is a director in the Sydney office. This article is adapted from a McKinsey staff paper dated July 1989. Copyright © 1989, 2000 McKinsey & Company. All rights reserved.

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What is Strategic Thinking? A Complete Guide

Explore our blog on What is Strategic Thinking and learn how to make informed decisions and identify opportunities and threats to set achievable goals. Understand the fundamentals and key elements that underpin this cognitive skill. Discover the benefits of Strategic Thinking and learn how to cultivate it.

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It is not just a buzzword, or a fancy phrase thrown around in the business world. It is a crucial skill that can be applied in various aspects of life, from personal relationships to professional endeavours. So, to step on the ladder to success, it is crucial to understand the concept in detail. Further, this blog will delve deeper into What is Strategic Thinking by exploring its definition, key elements, benefits, and practical tips to develop and enhance this skillset. 

Table of Contents   

1) Understanding What is Strategic Thinking

2) Benefits of Strategic Thinking

3) Key elements of Strategic Thinking

4) How to improve Strategic Thinking Skills?

5) Conclusion  

Understanding What is Strategic Thinking

Strategic Thinking stands as a keystone of intentional and rational thought processes essential for navigating the complexities of business, team dynamics, or individual endeavours. It encompasses a deliberate analysis of critical factors and variables influencing long-term success. This multifaceted approach entails careful consideration of present circumstances and envisioning future scenarios, anticipating potential threats, and identifying lucrative opportunities.

Central to Strategic Thinking is the proactive identification and mitigation of risks while capitalising on emerging prospects. Individuals and organisations can navigate uncertainties with agility and resilience by cultivating a strategic mindset.Moreover, Strategic Thinking extends beyond mere planning; it requires a synthesis of research, analytical acumen, and creative problem-solving. It demands an openness to new ideas and a willingness to challenge conventional wisdom, fostering an environment conducive to innovation and growth. Influential strategic thinkers possess strong communication and leadership skills, enabling them to articulate visions, mobilise resources, and inspire action.

Strategic Thinking is not limited to top-level executives or leaders. It is a skill that can benefit anyone looking to make better decisions and achieve desired outcomes in both personal and professional settings. It can be a powerful tool whether you're an entrepreneur aiming to grow your business, a student planning your academic path, or even an individual seeking personal growth.   

Why is Strategic Thinking important?

Strategic Thinking is indispensable for achieving long-term success, fostering adaptability, mitigating risks, identifying opportunities, optimising resources, solving problems, making sound decisions, and cultivating effective Leadership.

It serves as a guiding compass for individuals and organisations navigating the complexities of an ever-changing world. Strategic Thinking holds paramount importance in various aspects of life, business, and organisational management due to several key reasons:

1) Adaptability: Strategic Thinking enables individuals and organisations to anticipate and respond effectively to shifts in the external environment, whether technological advancements, market trends, or regulatory changes.

2) Risk mitigation: Strategic Thinking involves proactively assessing potential risks and vulnerabilities. By identifying threats early on, individuals and organisations can implement measures to mitigate risks, safeguarding against potential disruptions and setbacks.

3) Problem-solving: Strategic Thinking equips individuals with the analytical skills and creative mindset necessary for effective problem-solving. By approaching challenges strategically, individuals can identify root causes, explore alternative solutions, and implement strategic interventions to address complex issues.

4) Decision-making: Strategic Thinking provides a structured framework for decision-making. By weighing the potential outcomes and consequences of different courses of action, individuals can make informed decisions that align with overarching objectives and priorities.

5) Leadership development: Strategic Thinking is a hallmark trait of influential leaders. By cultivating Strategic Thinking skills, individuals can inspire and motivate others, foster innovation, and navigate organisational challenges confidently and clearly.

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Benefits of Strategic Thinking

Strategic Thinking is a skill that offers a multitude of benefits, empowering individuals to navigate challenges, seize opportunities, and achieve their goals. Here's how it helps individuals:

Enhanced decision-making  

Strategic Thinking equips individuals with a structured approach to decision-making. By considering various factors, analysing data, and anticipating future outcomes, Strategic Thinkers are better positioned to make informed and effective decisions. This ability to evaluate options and weigh potential risks leads to more favourable outcomes and minimises the likelihood of costly mistakes.  

Improved problem-solving  

It goes beyond addressing immediate problems and focuses on long-term solutions. It encourages individuals to identify the root causes of challenges and develop comprehensive strategies to overcome them. By employing a systematic and forward-thinking approach, Strategic Thinkers can find innovative solutions that address underlying issues, leading to more sustainable resolutions.  

Goal alignment and focus  

Strategic Thinking helps individuals align their actions and decisions with their overall goals. By considering the bigger picture and evaluating how different choices contribute to their desired outcomes, Strategic Thinkers can focus and prioritise tasks that truly matter. This clarity of purpose enables individuals to allocate their time and resources efficiently, resulting in increased productivity and progress towards their objectives.

Anticipation of trends and opportunities  

Strategic thinkers have an innate ability to anticipate emerging trends and identify opportunities before others do. They can proactively leverage favourable trends and capitalise on emerging opportunities by staying informed, analysing market dynamics, and considering the future landscape. This foresight enables Strategic Thinkers to stay one step ahead of the competition and make timely moves that drive success.

Effective resource management

Strategic Thinking involves assessing available resources and optimising their utilisation. By considering the strengths and limitations of resources, Strategic Thinkers can allocate them strategically to achieve maximum impact. This efficient resource management ensures that individuals make the most of their time, money, and other assets, resulting in greater efficiency and effectiveness in their endeavours.

Adaptability

In a dynamic and rapidly evolving world, adaptability is crucial for success. Strategic Thinking cultivates a mindset that embraces change and encourages individuals to be flexible in their approaches. By anticipating and embracing change, Strategic thinkers can navigate uncertainties, adapt their strategies, and seize opportunities that arise from shifting circumstances.  

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Key elements of Strategic Thinking  

Observation

Strategic Thinking hinges on discerning pertinent information and assimilating it effectively. Observation, therefore, plays a pivotal role as it furnishes strategic thinkers with the insights crucial for informed decisions and meticulous planning. The accumulation and analysis of relevant data serve as the bedrock upon which strategic plans are built.

Planning, a cornerstone of Strategic Thinking, entails a multidimensional approach. It requires a deep understanding of prevailing circumstances, organisational imperatives, and insights from observation and analysis. Strategic planners adeptly delineate achievable objectives, charting a course of action while anticipating potential challenges and opportunities. 

Extensive research, including competitor analysis, is often integral to planning, enabling informed decision-making and proactive adaptation to market dynamics. Strategic planning is a comprehensive endeavour analysing insights, objectives, and resources to chart a path toward organisational success.

Creativity and innovation  

It encourages creative and innovative approaches to problem-solving. It involves thinking outside the box, generating fresh ideas, and exploring unconventional solutions. By embracing creativity, Strategic Thinkers can uncover new opportunities, challenge existing norms, and find unique ways to achieve their objectives.

Adaptability   

Strategic Thinking requires adapting and adjusting plans based on changing circumstances. It involves being open to new information, embracing alternative perspectives, and being willing to revise strategies when necessary. Adaptability allows Strategic thinkers to navigate uncertainties and seize emerging opportunities, ensuring they stay on the right path towards their goals.  

Systematic thinking  

Strategic thinkers understand that actions and decisions have ripple effects across interconnected systems. They consider the broader ecosystem in which they operate and analyse how different variables interact. By taking a systematic thinking approach, Strategic thinkers can identify leverage points, understand interdependencies, and make holistic decisions that address multiple aspects of a situation.  

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How to improve Strategic Thinking skills?

Strategic Thinking is important for success in today's dynamic and competitive world. It involves analysing complex situations, anticipating future trends, and making effective action plans. Fortunately, Strategic Thinking Skills can be used and developed over time through deliberate practice and a focus on continuous improvement. Here's a comprehensive guide on how to enhance your Strategic Thinking abilities:

Cultivate curiosity and open-mindedness:

Strategic Thinking begins with a curious and open mindset. Foster a habit of questioning assumptions, exploring alternative perspectives, and seeking new information. Embrace diverse viewpoints and be receptive to feedback and constructive criticism. Cultivating curiosity helps expand your mental horizons and lets you see possibilities beyond the obvious.

Develop a big-picture perspective:

Influential strategic thinkers have a knack for seeing the forest for the trees. Develop the ability to zoom out and analyse situations from a broader perspective. Consider the long-term implications of decisions and actions and strive to understand how different variables interconnect. This holistic view allows you to identify patterns, trends, and potential opportunities or disadvantages that may not be immediately apparent.

Enhance analytical skills

Analytical thinking is fundamental to strategic decision-making. Sharpen your analytical skills by practising critical thinking, problem-solving, and data analysis. Learn to evaluate information objectively, identify critical insights, and draw logical conclusions. Use tools such as SWOT analysis, scenario planning, and risk assessment to assess situations comprehensively and make informed decisions.

Foster creative problem-solving

Strategic Thinking often requires thinking outside the box and finding innovative solutions to complex challenges. Cultivate your creativity by brainstorming, lateral thinking exercises, and mind mapping. Encourage experimentation and take failure as an opportunity for learning and growth. By fostering a culture of creativity, you'll be better equipped to generate novel ideas and approaches.

Practice systems thinking

Develop a “systems thinking” mindset by recognising the interconnectedness of various components within a system. Understand how changes in one aspect of the system can affect the entire system. Use causal loop diagrams, flowcharts, and other tools to visualise relationships and feedback loops. Systems thinking allows you to anticipate the unintended consequences of decisions and develop more robust strategies.

Cultivate strategic agility

Adaptability and flexibility are essential for strategic success in today's fast-paced world. Cultivate strategic agility by embracing change, staying abreast of emerging trends, and adjusting your plans accordingly. Be willing to pivot and course-correct based on new information or shifting circumstances. Develop resilience to navigate uncertainty and thrive in dynamic environments.

Seek feedback and continuous learning

Feedback is invaluable for improving Strategic Thinking skills. Actively seek input from peers, mentors, and stakeholders to understand different perspectives and identify blind spots. Be open to constructive criticism and use it as an opportunity for self-reflection and growth. Additionally, commit to continuous learning by staying updated on industry trends, best practices, and new technologies.

Practice strategic decision-making

Finally, practice your Strategic Thinking skills by making strategic decisions in both professional and personal contexts. Start with small-scale decisions and gradually tackle more complex challenges. Evaluate the outcomes of your choices, reflect on lessons learned, and refine your approach over time. By embracing strategic decision-making as a habit, you'll strengthen your Strategic Thinking muscle and become more adept at navigating uncertainty and driving success.

Conclusion  

We hope that after reading this blog, you have understood What is Strategic Thinking and its significance. It is not just a skill reserved for top-level executives; it is a valuable skill anyone can develop and apply in various aspects of life. It involves analysing situations, making long-term decisions, and connecting the dots to achieve desired outcomes. With this skill as your guiding compass, you can navigate complexities and unlock endless possibilities for success and personal fulfillment. 

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Strategic Thinking is pivotal in leadership and career growth, guiding decisions towards long-term objectives. It fosters innovation, problem-solving, and adaptability, essential for navigating complexities and driving success in dynamic environments.

Industries like technology, finance, healthcare, and consulting heavily rely on Strategic Thinking. Strategic planning ensures a competitive edge in rapidly evolving sectors, such as tech, where innovation is critical. Similarly, in finance and healthcare, navigating regulatory landscapes demands strategic foresight. 

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What is Strategic Thinking?

Strategic thinking is simply an intentional and rational thought process that focuses on the analysis of critical factors and variables that will influence the long-term success of a business, a team, or an individual.

Strategic thinking includes careful and deliberate anticipation of threats and vulnerabilities to guard against and opportunities to pursue. Ultimately strategic thinking and analysis lead to a clear set of goals, plans, and new ideas required to survive and thrive in a competitive, changing environment. This sort of thinking must account for economic realities, market forces, and available resources.

Strategic thinking requires research, analytical thinking, innovation, problem-solving skills, communication and leadership skills, and decisiveness.

Why is Strategic Thinking Important?

The competitive landscape can change quickly for any organization. New trends may emerge quickly and require you to take advantage of them or fall behind. By incorporating everyday strategic thinking into your work and life routines, you will become more skilled at anticipating, forecasting, and capitalizing on opportunities.

On an individual level, thinking strategically allows you to make a greater contribution in your role, become more essential to your organization, and prove that you’re ready to control greater resources.

What is Strategic Thinking in Business?

During an organization’s annual strategic planning process, leaders often compile, analyze, and synthesize external and internal data and ideas to develop its strategic intent and build a strategic narrative. This document will guide the company into the future for a defined period of time. Leaders then choose and plan specific actions that will accomplish these strategic initiatives.

Businesses also need to schedule a time for strategic thinking and reviews throughout the year. Leadership teams should periodically examine their strategic initiatives to ensure execution is taking place, review, and sustain the effort across the organization.

What is Strategic Thinking in Leadership?

Business leaders and stakeholders use strategic thinking and analysis to decide what product mix they’ll offer, what competitive landscape to compete in (or not compete in), and how limited resources will be allocated such as time, employees, and capital. They must decide how to best structure enroll others to achieve important objectives and to avoid putting resources at unnecessary risk of loss.

What are the Components of Strategic Thinking?

If you’re working on your company’s strategy, you’ll need to engage in analysis, problem-solving, decision making, and leading through change.

As you create a strategic direction or plan, you’ll analyze:

• Business opportunities and vulnerabilities
• Feasible of each idea or risk
• The costs associated with each move you are considering
• The likelihood that various tactics will be effective
• Methods of aligning objectives with the overall plan
• The effects of competitors, suppliers, customers, and new substitutes might have on your strategic plans

As you discover obstacles during the planning process, you’ll problem-solve by:

• Gathering relevant information about the problem
• Clearly defining the problem from a strategic point of view
• Brainstorming possible solutions
• Imagining further challenges and how to overcome them
• Delegating assignments of various parts of this strategy to key associates

Strategic thinking requires agility and decisiveness in choosing a plan and sticking with it. However, you have to be aware of new, more promising opportunities. It is a balancing act between consistency and flexibility. You and your team will:

• Make sure decisions are well-informed by thorough research
• Choose objectives and accompanying metrics
• Prioritize objectives
• Follow a standard decision-making process
• Build consensus, when necessary

During strategic planning, you will need to communicate ideas to your staff and gather feedback from them. You’ll then utilize effective channels to communicate a compelling vision of the completed plan to all employees and keep them focused on their contribution to the plan.

How to Improve Strategic Thinking Skills

There are five steps to improving your strategic thinking skills:

1) Set aside time to reflect and plan for the future, identify trends, prioritize tasks, and determine where to allocate resources

2) Uncover your own biases so you can think more clearly about strategy

3) Listen to subject matter experts and opinion leaders in your organization to obtain higher quality information you can use in your strategic thinking

4) Learn to ask good questions to uncover better options and plans—questions such as “Is this idea from a credible source?” and “Is this idea logical?”

5) Explore all the consequences of different strategies and directions

Get more details by reading CMOE’s article, “5 Ways To Improve Your Strategic Thinking Skills Today.”

Books on Strategic Thinking

To develop strategic thinking on your own, consider studying the following books:

Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life : This strategy classic came out in 1991. It’s a great introduction to practical ideas for using good strategic plans to outmaneuver your competition.

Ahead of the Curve: CMOE’s research-based books and publications can help employees at all levels develop better strategic thinking skills and perform more like a leader.

How to Teach Strategic Thinking

Attending a quality workshop is a quick way to improve your strategic thinking skills or to help your employees develop them through strategic thinking exercises. Rather than simply discussing skills, the goal of instruction should be to help you immediately apply strategic thinking to your unique job role.

Strategic thinking is taught best when a workshop is led by experienced facilitators. They should give you feedback as you develop a plan that you can take back to your job and implement right away. Strategic thinking training will help you see how you can improve your organization.

The workshop should:

• Identify learning goals and desired outcomes
• Include pre-reading material of both classic and contemporary articles on strategy
• An opportunity to review, discuss, and clarify best practices, frameworks, and actionable tools and concepts.
• Simulations or learning labs that allow people to practice strategic thinking skills immediately
• Debrief and review simulation or learning lab results and highlights strategic success factors that work. Mistakes and failures are important to learn from and provide insights and discoveries.
• An accurate assessment of your unique mix of existing strategic thinking skills and areas where gaps exist.
• Support and provide guidance in creating a customized and strategic plan that you can immediately apply to your work.

As with any skill, you’ll improve at strategic thinking the more you practice it and the more experience you gain. It’s definitely worth the time and effort; importantly, strategic thinking distinguishes mediocre businesses and workers from those that excel.

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8 Step Strategic Thinking Process To Develop A Strategic Mindset

What is strategic thinking, 8 step strategic thinking process, benefits of being a strategic thinker, what is a strategic mindset, how can managers develop a strategic mindset.

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• Define the goal: The first step in the strategic thinking process is to define the goal or objective that you want to achieve. This should clearly and clearly state what you want to accomplish.
• Gather information: Once you have defined your goal, you must gather information to help you make informed decisions. This may involve researching the market, analyzing data, and gathering stakeholder feedback .
• Analyze the situation: After gathering information, the next step is to analyze the situation. This involves identifying strengths, weaknesses, opportunities, and threats (SWOT analysis) that may impact the success of your plan.
• Develop a strategy: Based on the analysis, you can develop a strategy that outlines the steps you need to take to achieve your goal. Your strategy should be specific, measurable, achievable, relevant, and time-bound (SMART) .
• Implement the plan: Once you have developed your strategy, you must implement it. This involves allocating resources, setting timelines, and assigning responsibilities to individuals or teams.
• Monitor progress: As you implement your plan, it is essential to monitor progress regularly. This allows you to identify any issues or challenges and adjust as needed.
• Evaluate outcomes: After implementing your plan, you should evaluate the outcomes to determine whether you achieved your goal. This can involve analyzing data, gathering feedback, and assessing the impact of your plan on stakeholders.
• Learn and improve: A step that continuously keeps happening in strategic thinking process includes learning from your experience and using the insights gained to improve future plans is essential. This involves identifying what worked well and did not and adjusting your approach as needed.
• Better decision-making: Strategic thinkers can analyze situations and identify the best action, leading to better decision-making and outcomes.
• Improved problem-solving: Strategic thinkers are skilled at identifying problems, developing solutions, and implementing strategies to solve complex issues.
• Increased innovation: Strategic thinkers are creative and innovative, constantly exploring new ideas and approaches to improve performance and achieve goals .
• More decisive leadership: Strategic thinkers can see the big picture and develop a clear vision, which can help them inspire and motivate others to achieve shared objectives.
• Better resource management: Strategic thinkers are adept at managing time, money, and people, to achieve desired outcomes efficiently and effectively.
• Enhanced adaptability: Strategic thinkers can anticipate and respond to changes in the environment, enabling them to adapt quickly and effectively to new situations.
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• Big-picture thinking: Strategic thinkers can see the big picture and consider all the factors that may impact the success of a plan. They analyze data, assess risks, and consider different scenarios before making decisions.
• Creativity and innovation: Strategic thinkers are creative and innovative, constantly seeking new and better ways to achieve their goals. They are not afraid to take risks and experiment with different approaches.
• Flexibility and adaptability: Strategic thinkers can adapt quickly to changing circumstances and adjust their plans accordingly. They are comfortable with ambiguity and uncertainty and can pivot their strategies as needed.
• Focus on outcomes: Strategic thinkers focus on outcomes and results rather than just completing tasks. They are driven by a desire to achieve specific goals and are willing to put in the effort required to achieve them.
• Collaborative mindset: Strategic thinkers understand that achieving success requires collaboration and teamwork. They can work with others to achieve shared objectives and are skilled at building relationships and partnerships.
• Focus on the big picture: Managers should develop the ability to see beyond day-to-day operations and focus on the bigger picture. They should consider how today’s decisions will impact the organization’s long-term goals.
• Embrace change: A strategic mindset requires managers to be comfortable with change and uncertainty. Therefore, managers should be open to new ideas and be willing to adapt their approach to changing circumstances.
• Analyze data: To make informed decisions, managers need to be able to analyze data and identify trends. They should understand the organization’s key performance indicators (KPIs) and use data to guide their decisions.
• Develop a vision: A strategic mindset requires managers to have a clear vision for the organization’s future. Managers should be able to articulate their vision and communicate it effectively to their team .
• Build a strong team: Strategic thinking is a collaborative process. Therefore, managers should build a strong team that includes individuals with diverse skills and perspectives.
• Be proactive: A strategic mindset requires managers to be proactive rather than reactive. Managers should anticipate potential challenges and opportunities and take action to address them before they become problems.
• Learn continuously: A strategic mindset requires managers to be lifelong learners. Therefore, managers should be open to new ideas and actively seek opportunities to develop new skills and knowledge.
• Seek feedback: To develop a strategic mindset, managers should seek feedback from their team, colleagues, and stakeholders. They should be open to constructive criticism and use it to improve their approach.

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Defining Critical Thinking

Critical Thinking Skills Guide

Critical thinking is important. Generally speaking, critical thinking refers to the ability to understand the logical connections between ideas. When a person understands these connections, it makes it easier to construct logical arguments based on those ideas. It also becomes easier to evaluate the arguments that other people make to see if those arguments are based on sound reasoning.

Since critical thinking involves connecting important concepts and ideas, critical thinkers often find it easier to solve problems in a systematic fashion. Critical thinkers can also prioritize which ideas are most relevant to their own arguments.

From this general idea of what critical thinking involves, it should be easy to see why critical thinking would be important to students. Students who become critical thinkers are better equipped to deal with a wide range of problems that they encounter in school.

These students are better able to build new concepts upon previous ideas that they’ve learned. This is a useful skill throughout school. Advanced mathematics are built upon simpler math ideas. Science experiments require basic understanding of various substances used in the lab. Advanced argumentation is rooted in the simple ability to identify information that supports the argument’s basic premise.

Despite all the potential advantages that may come with possessing critical skills, these skills are not themselves taught directly in school. Such skills may be inadvertently taught during the course of various lessons and school work but, for the most part, critical thinking skills aren’t typically directly addressed.

There are no classes committed to teaching critical thinking skills alone, leading teachers across multiple subjects to have to find ways of integrating critical thinking into their lessons independently.

Critical Thinking by the End of High School

Entering college, students have hopefully learned several advanced critical thinking skills that will support them through their college work. Specifically, there are six critical thinking skills that will support upper high school students and college students. These skills can help students to perform better in a range of subjects.

Identification

Identification is important to critical thinking because it refers to the ability for a student to identify the existing problem and what factors impact that problem. This first critical thinking skill is what gives students the ability to see the scope of the problem and start thinking about how to solve the issue.

In a new situation, learners ask what the problem is, why it might be happening, and what the outcome is. From this initial set of questions, they come to an understanding of the problem’s scope and potential solutions.

Research of a problem cannot begin until identification has taken place. Once identification occurs, a learner can start researching that problem. How much research is necessary will depend on the scope of the problem. Mathematical problems, for instance, may rely on researching examples of the problem and reviewing more fundamental formulas.

More complex problems, such as addressing large social issues, still rely on the same process of understanding the scope of the issue and identifying what materials need to be referenced to address the problem. Research is also important when it comes to understanding claims.

Students should be able to hear a statement, question it, and verify that statement using objective evidence discovered through research. This is in contrast to the uncritical response of simply accepting the statement.

Identifying Biases

Identifying bias is one of the more difficult skills for students to grasp. Everyone has bias, including students themselves. A learner needs to be able to identify bias in the materials that they’re looking at that might impact what’s being written. Authors may write things that favor a certain point of view, which would impact how much a reader could trust the material.

On the other hand, students should also be able to examine their own biases. It’s important not to write in favor of one’s own view, which becomes increasingly important as a person progresses upward in their studies through higher education. It’s important for students to challenge their own perspectives but also to challenge the evidence that they read.

Making Inferences

The ability to make inferences is a critical skill for students to learn as they learn how to analyze data and piece together information. During the course of putting together information, it’s always important to learn how to draw conclusions based on that information.

Students need to be able to look at a body of evidence and make a determination of what that data might mean. Not all inferences will be correct, so students also need to be able to reassess their inferences as new data comes up or as existing evidence is reassessed.

Determining Relevance

To make correct inferences and formulate arguments, students need to be able to determine the relevance of the information that they receive. This is not an issue of examining bias so much as being able to identify the information that’s appropriate to solving a problem or making an argument.

This is particularly important as students get into more advanced areas of research. For instance, as students start getting asked to write papers, they need to be able to search through primary and secondary documents that can support their argument.

The more skilled that a student becomes at being able to determine the relevance of these documents, the less time students will have to spend sorting through irrelevant documents that don’t support their research.

Perhaps counterintuitively, it’s also important for people to learn how to curb their curiosity. Curiosity is important in that it drives research and exploration of a topic. However, consistent with the need to determine relevance is the need to identify where to end a line of inquiry.

Curiosity can send people exploring any number of topics during research that only burns time instead of informing a student’s research. The more skilled a student becomes at learning how to end certain paths of research the more they can focus on supporting their studies and finding evidence that will work in their research.

Teaching Critical Thinking Skills

Actually teaching critical thinking skills is something that teachers have instincts about and teach inadvertently without actually understanding how their lessons actually impact those skills. In truth, teachers should try to make critical thinking integral to their instructional design.

Almost any instructor can begin teaching critical thinking by simply modeling the behavior for their students. They can assess information, its sources, and its biases. But to get in-depth critical thinking skills, teachers also need to present broad problems and scenarios that students need to explore for themselves.

By presenting a problem or scenario that needs to be addressed and allowing students time to debate the issue, they can be guided to see the value of other arguments while learning how to construct their own arguments.

This is also a process through which students can learn how to identify information that will help them present those arguments. Teachers can also provide feedback on these arguments to help students improve their research and argumentation process in the future.

Another important part of teaching critical thinking skills includes asking questions. The questioning approach helps students to reassess their own perspectives and the evidence of others. When bringing up a topic or problem, instructors should ask some of the following:

• What do you think about this issue and why do you think that?
• Where did you get your information on this issue and why do you believe it?
• What is the implication of what you’ve learned and what conclusions can be reached?
• How do you view the problem and your information, and what other view could you take on it?

The importance in these lines of questions is to make students consider their own perspectives as well as contrary evidence. By asking these questions, students get to reevaluate what they believe and questions whether they actually should believe it. Sometimes people hold certain beliefs without truly understanding why they believe it.

By asking questions about one’s own knowledge, it becomes possible to understand one’s own knowledge base more deeply and discard information that may be inaccurate or too heavily biased.

There are also writing activities that teachers can use as well. During writing, students can be asked to write freely about any number of topics. The point of this free writing session is to let students arrive at a conclusion about what they believe about a topic. This isn’t a critical thinking phase of writing but is instead simply meant to allow student freedom to reach a conclusion about what they believe.

After the student has freely explored the topic, they move onto the critical thinking phase of their writing project. At this stage, the student begins to examine what sort of biases impacted the position they took on the topic and review their conclusions. The student determines whether their inferences were accurate.

This is essentially a reflective period in which students need to refine their writing and attack their own work to make it better while continually asking themselves whether their evidence is sound and whether their biases impacted the final work.

Critical Thinking Barriers

There are often several barriers that keep students from fully developing critical thinking skills. Ironically, one of the biggest problems to critical thinking is the existing curriculum a school is using. Particularly when curriculum is heavily standardized, it makes it difficult for teachers to find opportunities to teach critical thinking.

Too heavy of a focus on teaching standardized tests, including curriculum oriented toward making sure that students hit certain test scores, often means heavily fact based teaching that expects rote memorization. This leads to few chances to actually ask open questions in which students can question their knowledge base and critically assess a given situation.

There are, of course, other barriers to critical thinking. Sometimes, the problem lies with the fact that teachers are simply unused to teaching these skills. Partly as a result of feeling pressured to achieve highly standardized test scores, teachers often focus too much on fact teaching and rarely get into asking the sort of open ended questions that can help to cultivate critical thinking.

However, even when they have the opportunity to do so, teachers sometimes lack the training necessary to encourage critical thinking among students. Teachers may know many activities to teach students with without a concrete idea of how each contributes to the development of such skills. Teachers tend to be trained in how to pass along content rather than encouraging critical thinking.

One of the major problems that teachers face is an issue of time. Teaching content knowledge or teaching to the test involves passing along content that can help teachers teach the information that will help students pass their exams. Passing along vast quantities of information for rote memorization can be done efficiently by simply giving students lots of information to learn.

A significant amount of information can be passed along within a class when teaching an exam, but it’s much harder to teach critical thinking skills. Teaching critical thinking, on the other hand, requires instructors to set aside extensive periods of time to question and debate. Considering that teachers already struggle sometimes to fit in all of their activities, it’s difficult to ask them to accommodate large periods of time for passing along critical thinking skills.

Creatively finding solutions to this problem requires teachers finding small periods in which to fit in critical thinking discussions, perhaps through the use of smaller question and answer activities during lectures. Or, teachers can try to change the format of their classes completely to make them more hands on, engaging environments in which critical thinking is ongoing.

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