Strategic thinking has to do with finding alternative ways of competing and providing customer value. Strategic Thinking focuses the management team on markets that are most likely to succeed and so helps organizations avoid waste and costly mistakes. A company needs to compete, it needs a strategy to compete. Both strategic management and strategic planning are keys to business success in any industry, but few know the difference between the two. Creative vs Strategic thinking: What's the difference - Innovation … As one of the best manager and leadership qualities, strategic thinking has a crucial role in every business and strategic planning process. Let’s look at Strategic Management in general terms. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives.”. For our purposes, we will define planning as “the activity of preparing a plan” and we will define a plan as Upon meeting new people, one of the first questions I am asked is often, “Where do you work?” or “What do you do?” This was the case a few nights ago, after being introduced to a colleague of a friend. Here you will learn what is strategic thinking and which are basic strategic thinking skills and examples. Henry Mintzberg (1994), in his article, “The Fall and Rise of Strategic Planning,” states that the label strategic planning should be dropped because strategic planning has impeded strategic thinking. The strategic planning is an analytical activity because it is related to the thinking. To achieve results in today's rapidly changing marketplace, project managers must dig out of the day-to-day minutia and break free from "how we've always done it" to spend more time As a cognitive activity, it produces thought.. Strategic Thinking Skill Guide | Definition and Examples | Matter We'll start with the definitions of the two kinds of strategic processes. Strategic management usually takes a team to determine the direction of an organization. By asking the question "what if" followed by the critical question "if then," strategic thinking spans the analytical-intuitive chasm Mintzberg refers to in his definition of thinking as synthesis and planning as analysis. By identifying basic trends and uncertainties, a manager can construct a … It is the process of specifying the organization’s mission, vision and objectives, developing policies and plans. I explained to him that strategic thinking is not the same as strategic management. While strategic planning focuses on making optimal strategic decisions, strategic management is all about producing strategic results, new markets, new products, new technologies etc. The right strategy is one of the most effective tools, techniques and attributes for success in the personal and business life. Error: Please enter a valid email address, Error: Password and password confirmation do not match, Strategic Leadership Training and Development, Strategy Development Processes and Services, Leadership Development: Training & Workshops, Customized Leadership Development Programs, Supervisory Development and Training Programs, Large Group Learning Events & Key Note Speaking, Learning and Development Advisory Services, Professional Accreditation and Continuing Education Units, The 50 Most Socially-Shared Learning & Development Blogs, The 100 Best Leadership Blogs Based on Social Shares, The Top 50 Most Socially-Shared eLearning Blogs, Which Comes First Coaching or the Need for Coaching? Part 3, Strategic Thinking is not Strategic Management. Strategic thinking raises the capacity to be intelligently opportunistic. Privacy, Difference Between Strategy Formulation and Strategy Implementation, Difference Between Forecasting and Planning, Difference Between Management and Administration, Difference Between Strategic Planning and Operational Planning, Difference Between Tax Planning and Tax Management. Strategic planning involves the identification of actions to be taken. I gave a brief list of our services and explained that one of our most popular workshops is on strategic thinking. 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. Strategic thinking is something everyone, as individuals, can do. On the contrary, strategic management is a series of decisions or moves taken by the top managers in relation to the formulation and execution of strategies to achieve organizational goals. In today's environment rapid changes and technological explosion, almost all the management writers' emphasis on the need of updated and sophisticated techniques to outperform others or at least to survive. Strategic Management implies a bundle of decisions or moves taken in relation to the formulation and execution of strategies to achieve organizational goals. Strategic Planning is a future oriented activity which tends to determine the organizational strategy and used to set priorities. In other words, you can consider the best route around an accident or plan for your retirement and everything in between including your influence on the future of your organization. Applied Strategic Thinking is a way of scanning your environment, finding ways to perform more efficiently, being more innovative, and reacting to outside challenges and opportunities with more confidence because you have already considered variables. The second difference is in the number of members. In other words, you can consider the best route around an accident or plan for your retirement and everything in between including your influence on the future of your organization. - Strategy Management … Paul, the CEO of a widget-producing company, wants his executives to improve the strategic process of his company and to understand the difference between strategic thinking and strategic planning. According to a 2009 Harvard Business Review article “Four Fatal Flaws of Strategic Planning,” 88 percent of companies engage in strategic planning, yet few adequately manage their strategies, and even fewer see their goals completely met. While for some strategic thinking and planning are distinct thinking modes which are both useful at different stages of the strategic management process (e.g. Difference Between Strategic Planning and Strategic Management … Mintzberg), for others, strategic thinking is not so PII: 50024-6301(98)00069-7 Long Range Planning, Vol. In the lesson, we'll look at how Paul did just this. Purpose – The purpose of strategic thinking is to envision or develop a solution. . Strategic planning is a process (see above, RE: report that sits on a shelf), while strategic thinking is about vision, intuition, and creativity. Where strategic management is a long-term plan for the future, Applied Strategic Thinking considers the future from the next few seconds to however long the concept will be relevant. In other words, about where you would like to be as an organization and how you get there, Dissecting strategic thinking versus strategic planning: Dynamic rather than static; Flexible rather than rigid Strategic thinking needs to be at the centre of the entire strategic management process, constantly re-evaluating, re-visiting and re-defining mental models of the business. Strategic Thinking vs. Strategic Planning? What’s the Difference between Strategic Thinking and Strategic … As strategic thinking and strategic planning are often done in a group setting, it’s important to recognize the influence of “groupthink.” Groupthink occurs when there is a homogenous group of people with little influence from outside sources and a high level of pressure to conformity. Conversely, Strategic management involves identification actions to be taken, the individuals who will perform the actions, the right time to perform the action, the way to perform those action. A strategy is more than a plan, as strategy implies competing -- outwitting competitors and providing unique value. Applied Strategic Thinking Difference Between Internal and External Stakeholders, Difference Between Policies and Procedures, Difference Between Micro and Macro Economics, Difference Between Developed Countries and Developing Countries, Difference Between Qualitative and Quantitative Research, Difference Between Percentage and Percentile, Difference Between Journalism and Mass Communication, Difference Between Internationalization and Globalization, Difference Between Sale and Hire Purchase, Difference Between Complaint and Grievance, Difference Between Free Trade and Fair Trade, Difference Between Partner and Designated Partner. 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