Seminar Strategic Thinking 2014 Prepared by Dr Akram

. Seminar Strategic Thinking 2014 Prepared by Dr Akram Samour

What is Strategic thinking n Reviewing the literature related to strategic management, points out that there is no agreement on definition of strategic thinking. A number of authors have used strategic thinking interchangeably with other concepts such as strategic planning or strategic management. (Monnavarian et al, 2011) examples have been provided by the authors

What is Strategic thinking n Strategic thinking has been investigated in both the management and psychological literature with the management literature concentrating on the process of strategic thinking and making strategic decisions (Mintzberg, 1994; Drejer et al. , 2005) whereas the psychological literature has concentrated on factors affecting strategic thinking and decision making (Hambrick and Mason, 2001; Pant, 1998).

What is Strategic thinking n According to the management approach strategic thinking involves two distinct thought processes: planning and thinking. Planning concerns analysis, this involves establishing and formalizing systems and procedures whereas thinking involves synthesis encouraging intuitive, innovative and creative thinking at all levels of the organization (Mintzberg, 1994).

What is Strategic thinking n Drejer et al. , (2005, p. 50) define it as “thinking about possible scenarios and strategy in a creative manner that is relatively free from existing boundaries”. While Bonn, (2005 p. 337) defines strategic thinking as “a way of solving strategic problems that combine a rational and convergent approach with creative and divergent thought processes”.

What is Strategic thinking n Garratt (1995) defined strategic thinking as a process by which senior executives ‘‘can rise above the daily managerial processes and crises’’ (p. 2) to gain a different perspective of the organization and its changing environments.

What is Strategic thinking n Porter(1987) states that strategic thinking is “ the glue that holds together the many systems and initiatives within the company” he also views good strategic planning as a contributor to strategic thinking

What is Strategic thinking n n Heracleous (1998) suggests that strategic thinking and strategic planning are interconnected and equally significant for effective strategic management. Thompson and Strickland (1999) stress that a well-designed strategic management system facilitates strategic thinking within the organization. DOI

Conclusion n From all the previous definitions it can be concluded that strategic thinking differs from strategic management and strategic planning, from the researcher point of view strategic thinking can be defined as: Engaging of the mind in the concepts and theories of strategic management and landing them on the reality of the organization to achieve its long run goals

Strategic Management, Strategic Planning and Strategic thinking n Nowadays Strategic Management is the father of all branches of knowledge related to strategy including strategic planning and strategic thinking.

Strategic Management, Strategic Planning and Strategic thinking n Strategic Management can be defined as: a set of managerial decisions and actions which determines the performance of the organization in the long run, it includes the following phases : environmental scanning, strategy formulation, strategy implementation, and strategy monitoring, controlling and evaluation (Wheelen and Hunger, 2012)

Strategic Management, Strategic Planning and Strategic thinking Strategic planning can be considered as strategic planning and can be defined as: the development of long-range plans for the effective management of environmental opportunities and threats in light of organizational strengths and weaknesses (SWOT) (David, 2011; and Wheelen and Hunger, 2012)

Strategic Management, Strategic Planning and Strategic thinking n Mintzberg (1994) stated that ‘‘strategic planning is not strategic thinking’’ (p. 107) and suggested a clear distinction between strategic thinking and strategic planning. In his view, strategic planning focuses on analysis and deals with the articulation, elaboration and formalization of existing strategies.

Strategic Management, Strategic Planning and Strategic thinking n Strategic thinking, on the other hand, emphasizes synthesis, using intuition and creativity to create ‘‘an integrated perspective of the enterprise’’ (p. 108). He argued that each term focuses on a different stage in the strategy development process. In his view, strategic planning is a process that should occur after strategic thinking. (Cited from Monnavarian et al, 2011)

Strategic Management, Strategic Planning and Strategic thinking n From the researcher’s point of view strategic thinking is a process that should occur in all strategic management phases

Attributes of strategic thinking Liedtka (1998) posits five major attributes of strategic thinking: n 1. Strategic thinking reflects a systems or holistic view that appreciates how the different parts of the organization influence and affect each other as well as their different environments.

Attributes of strategic thinking n 2. Strategic thinking embodies a focus on intent. In contrast with the traditional strategic planning approach that focuses on creating a ‘‘fit’’ between existing resources and emerging opportunities, strategic intentionally creates a substantial ‘‘misfit’’between these.

Attributes of strategic thinking n 3. Strategic thinking involves thinking in time. Strategic thinkers understand the interconnectivity of past, present and future.

Attributes of strategic thinking n 4. Fourth, it is hypothesis driven. Hypothesis generating and testing is central to strategic thinking activities. By asking the creative question ‘‘What if? ’’ followed by the critical question ‘‘If. . . then. . . ? ’’ strategic thinking spans the analytic-intuitive dichotomy that Mintzberg refers to in his definition of thinking as synthesis and planning as analysis.

Attributes of strategic thinking n 5. Strategic thinking invokes the capacity to be intelligently opportunistic, to recognize and take advantage of newly emerging opportunities

Attributes of strategic thinking n Napier and Albert (1990) referring to system thinking, thinking about long-term profits rather than short-term benefits, identifying repetitive patterns in the events, choosing a person responsible for strategic thinking, making use of past events to predict future, using past knowledge to prepare appropriate model for decision making. Figure 1 Processes of strategic thinking and planning n VOL

Attributes of strategic thinking n . Bonn (2005) emphasizing on process approach, using cognitive concepts, ability in finding different solutions for specific problems, interaction among strategies at different levels and between different units of organizations, understanding the dynamics of internal and external environment, understanding the situation of organizations within bigger systems, visualizing future goals and most advantageous future, knowing new competitive areas, capability of integrating different ideas into a new and fresh idea.

Strategic thinking Factors n n n Creativity and attention to the past, the present and the future. Organic structure organization. Environment analysis. Conflict management. Awareness of the situation. Futuristic approach

Strategic thinking Factors n n n Intelligence. Diversified mind pattern. Accountability. Organizational climate and coordination. Systematic thinking. Process approach.

Peter Drucker’s strategic thinking n Drucker tended to start by asking some basic questions, which, despite their simplicity, are often overlooked. Every senior manager, he said, should be constantly asking ‘Do we want to be in this business? Would we choose to enter this sector now? Who are our customers? Where are they? What do they want? ’ In fact, all three of his key strategies start with questioning.

Peter Drucker’s strategic thinking n n Zand phrases them like this: 1. Ask penetrating questions of people who understand current and future realities so they can generate and evaluate a creative set of strategic options.

Peter Drucker’s strategic thinking n n 2. Reframe the prevailing few in simple understandable terms that enable a review of priorities and an adjustment of actions to better adapt to the competitive environment. 3. Question the assumptions underlying current views. Consider alternative assumptions and diligently probe their context and strategic implications.

Strategic thinking Areas of research n n n A Review on Leader's role in Creating a Culture that Encourages Strategic Thinking. Improving strategic thinking: a multilevel approach. Leadership practices that encourage strategic thinking

Strategic thinking Areas of research n n n Strategic thinking and decision making. Strategic thinking and knowledge management, The measurement of strategic thinking type for top managers