Improving Your Strategic Thinking
I’ve been told ‘Think More Strategically‘ or do more strategic thinking.
We have heard this many times from our learners. It is born from a need by others for you not just to solve the day-to-day challenges, but to also ‘look-up’ and help with future challenges.
In essence, they want you to help them. This page is a build on a piece of work by Rick Howarth from the Strategic Thinking Institute.
The Boston Matrix below demonstrates that there are 2 important axes when considering to ‘Think More Strategically. These are the insights that you generate & their impact on the business and the frequency which you generate those insights.
Are You a Strategic Thinker?
Which type of swimmer are you?
What is Strategic Thinking?
It is necessary.
Imagine a Boston matrix, like the one above.
The first axis is insight, and the second axis is frequency. An insight is a piece of information that is useful, leading to an action that improves performance. For example, in our house, the cutlery drawer is by the sink. Every time the washer-upper was washing up, the drier-upper tried to put the cutlery away and annoyed them. Insight? Swap the cutlery drawer for the messy drawer. Strategic thinking!
At work, an insight might be that, Microsoft costs more than G Suite – let’s move to G Suite, saving £x. A strategic thought. And frequency is what it says on the tin.
This means that good strategic thinkers do a lot of top-right box stuff. They find insights that make a big difference to performance and they do it regularly.
By comparison, people who don’t think strategically rarely identify performance improvements. And when they do, they are weak.
For example, in our house, my daughter said: ‘We eat too many sweets. Let’s move the sweet tub out of the way of temptation.’ Family response: ‘It’s lockdown. How else will we get through it?’. A classic weak insight and one teenager rightfully back in their box.
Related reading: Check out our ultimate guide on HBDI.
The Impact on Your Business
Here’s an example. Imagine you discover that using video conferencing in your multi-site business could save £10,000 per year. This would be a valuable insight, contributing to your goal of ‘Thinking More Strategically.’
But what if this insight has little impact? Actually, your business only has two sites and most people don’t need to communicate across them. It would indicate that you’re not thinking strategically enough.
The Frequency That You Generate Those Insights
One insight per year. If it fundamentally improves the performance of the business would still put a tick against Think More Strategically.
Though 1 insight per year, which has a low impact, would put a cross against Think More Strategically.
So the answer is a balance between frequency and impact. Remember this for strategic thinking.
Consider the Dimensions of Your Business
- Customer insight – What is the 80:20?
- Sales – What is the 1 insight from all of last year’s sales, that if the sales team did more of it, would increase sales?
- Production – On a Friday between 10 am and 1 pm, we achieve more widgets per hour. What if that were the goal for all of Friday?
What Are Strategic Thinking Skills?
‘Smith. You need to think more strategically.’
This was my boss, Jim. I was 19 and working at Sainsbury’s head office in Stamford Street.
I had no idea what he was on about. What were strategic thinking skills? I’d heard someone mention helicopter thinking. That still didn’t make sense.
These were the days before the internet, so I couldn’t look it up.
I spun around on my chair to ask the wise old wizard who was the cheddar grader. ‘Clive, strategic thinking. I was just asked to do more of it – what is it?’ He scratched his chin and said: ‘No idea, and I doubt Jim could even spell it, so I wouldn’t worry about it!’
Has Something Similar Happened to You?
I know now what I didn’t know then.
Firstly, those who talk about strategic thinking often cannot explain what it is.
Secondly, there are many other also useful approaches to take.
And thirdly, everyone can do strategic thinking. It’s not hard. ‘You need to think strategically’ has become the equivalent of telling someone who is angry to calm down: pointless.
Related reading: Check out our ultimate guide on HBDI.
