Since then, I've seen and heard it much more frequently, so now I take the time and dive into it. What IS strategic thinking? What does it mean? And what does it mean for business?
Strategic thinking relates to long-term thinking and planning.
There. The secret is out. Problem solved. Case closed. So why read on? Well, before you close out of this window, there's more...
Today there are several interrelated business management and planning trends that are "buzzing" today, and those are:
1) Big Data. When we think "data", this is often tied to some form of reporting. And reporting needs to come from a source...technology. Our best friend. This is where business analytics dashboards come in handy today. From acquiring and accessing "big data", we then proceed to the next point of...
2) Performance Metrics. So once we've gotten our hands on that data, now what do we do with it? Make decisions. That's what it's about. By accurately analyzing our "big data" we can now come up with three important things: 1) goals, 2) performance metrics to reach those goals), and, 3) a long-term strategic plan on how to perform successfully and meet those goals, and make more informed business decisions. Remember, data is merely support...it is not driven.
3) Strategic Thinking. Now that we understand what strategic thinking is, and how to get to that step with our big data, now we can talk a little more about the planning nitty gritty. Based on your data and performance metrics, We already covered this one. But here is how all three of these tie together. But strategic thinking, like performance metrics are about decision-making. What data can we use and analyze to make better business decisions?
Strategic thinking is all about the "what", and it's pretty hard stuff. Not gonna lie. Strategic thinking is harder because it involves rigorous planning and thinking long term...which can be difficult for some entrepreneurs. Some entrepreneurs have a hard time seeing the VISION of their business because they are the doers, the worker bees, the "technicians". They are too focused on the here, the now, and getting "the work" done each day. When you are too focused on the here and now, it is harder to see the bigger picture. Other entrepreneurs have the opposite problem. They have BIG ideas, but have no idea how to take the smaller steps to getting there.
Regardless of which "problem" you have as an entrepreneur, the answer lies behind Door Number 3: "Strategic Thinking".
So what does either entrepreneur do? Planning. There are several planning steps—all of which we heard before and strongly encouraged—that all point and lead to long-term success, and hit all the pit stops along the way. They include: daily planning, weekly planning, monthly planning, quarterly planning, and annual planning.
For those entrepreneurs who operate as "technicians", daily, weekly, and even monthly planning are probably a piece of cake. But where is your business going a year from now? You probably have no idea. For those entrepreneurs focused on your BIG ideas, good for you. You probably know exactly where you want your business to be in a year from now, which is awesome. But what are your plans next week? I know, I know...you have no idea.
Each entrepreneur should spend a little quality time with strategic thinking. (I know, strategic thinking isn't really the "quality" time you had in mind. Trust me, I get it.) I read an article not too long ago on the secrets and methodologies of highly successful entrepreneurs and one female entrepreneur claims she spends the first two hours each day IN her business...not checking email or answering the phone or doing the little tasks here and there, but spending time on her business VISION. Maybe you don't have two hours to spend every morning on this, and that's fine. This is just an example. Another idea is to spend a day and go into "black out mode". Same rules apply: no phone, texting, social media or email. Just quality time for you and your business, and a little intimate strategic thinking.
So before we close, what are the risks to strategic thinking? Business planning strategies are often investments of time, money, and resources. So the main risks here are opportunity and financial. "How much is this Idea A going to cost?" "How does that compare to Idea B?" "What if by setting Goal A, I miss out on Goal B?" The best way to address each risk is to lay them all out. Break out your FMEAs, and develop a risk response plan to each.
Phew. We finally got there. We NOW have a clearer understanding of strategic thinking, and how that is tied into performance metrics and data, which ALL equal how to reach our business goals, objectives, and, yeah...success.
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Written content: © 2014, 2013, 2012, 2011, 2010 J.H. Language Solutions
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